After switching to atahualpa 3, I can't find a link for me to go to directly edit a post/page. I need to log back into the admin screens in order to do this. Is there a setting in atahualpa 3 that I am missing?

In the Atahualpa Theme Options, click on the Post/Page Info Items button, then add

%edit('before', 'linktext', 'after')%
Prints a direct edit link for the post, IF the current viewer is permitted to edit posts, with linktext as the link text.
Example: %edit(' - ', 'Edit This Post', '')%

in the location you'd like the EDIT link. I tried it in the kicker and byline but if I stick it in the footer, after the date, it's far more discrete and doesn't ruin the look of my blog.

This allows for an edit button on a post/page, but can the edit button be enabled on a page/page allowing on the fly editing from the web site (provided permissions exist) without logging into Admin=>Edit Pages?

Thanks