No, 2.1.1 is the most current version. the mention of 2.1.2 in my reply was a typo.
The version they are using in the screen shot is an older version using HTML Editor 2, so your suggestion of :
change
FCKConfig.FormatOutput = false;
FCKConfig.FormatSource = false;
to:
FCKConfig.FormatOutput = true;
FCKConfig.FormatSource = true;
is valid. in the version they have, that should fix the problem, that code is not valid for the newer 2.1.1 version that uses HTML Editor 3.