Its only true limitation is- seemingly- that you can’t copy text on a website (you can copy text from emails/sms by choosing to forward, then copy what you want).

However, you actually can.

First, follow these steps: http://code.google.com/p/networkpx/wiki/CopyingTextFromSafari

They were ironically enough written for hClipboard, a competing program which I haven’t even tried. :( Oh well.

Then when you’re on a website you want to copy from, run your Select Text bookmark or whatever you named it, click the block of text you want to copy, and up comes your keyboard. Unfortunately you can’t use Clippy’s text selection for some reason in there, but if you just click Copy, it will copy the whole block of text.

You can then paste it wherever and edit it- but it is best used with FastNotes from SBSettings. Just Copy, pull down SBS, paste it into fast notes, select what you actually want, and Copy again.

Then paste into your buddy’s IM convo, or whatever.

You are now invincible.

If you want to copy and paste texts from SMS’s install an SMS app that allows you to forward messages. E.g BiteSMS. Choose the SMS you want to forward, select forward, it now becomes editable, copy your text and go back to what ever app you want to paste it in to.

Cheers,
Ajay