I wrote it up today at lunch, but forgot to send it home. I also wanted to get it to work on a series of edge lines (rather than 1 at a time like mine does now) so you could ring select the entire inset and do it in one go.
A little delayed birthday present for Per, on whose request this script was done. It allows straigthening of connected edge selections the gif illustrates the use paired with regular ring selection + insetting polys script is over at my page or at scriptspot http://crazybutcher.cottages.polycount.com/code/_3dsmax.html…