I had a request from a client to hide the Edit Page option under the Site Actions menu for all users without Full Control permissions.  I performed the following steps to remove the edit page option for user's without the managesubwebs right.

1. Open the master page for the site.
   
2. Find the following lines of code:
   
          <SharePoint:MenuItemTemplate runat="server" id="MenuItem_EditPage"
           Text="<%$Resources:wss,siteactions_editpage%>"
           Description="<%$Resources:wss,siteactions_editpagedescription%>"
           ImageUrl="/_layouts/images/ActionsEditPage.gif"
           MenuGroupId="100"
           Sequence="200"
           ClientOnClickNavigateUrl="BLOCKED SCRIPTMSOLayout_ChangeLayoutMode(false);"
           />
   
3. Add to the following lines to the code:
           PermissionsString="ManageSubwebs"
           PermissionMode="Any"
   
4. The code should now look like:
          <SharePoint:MenuItemTemplate runat="server" id="MenuItem_EditPage"
           Text="<%$Resources:wss,siteactions_editpage%>"
           Description="<%$Resources:wss,siteactions_editpagedescription%>"
           ImageUrl="/_layouts/images/ActionsEditPage.gif"
           MenuGroupId="100"
           Sequence="200"
           ClientOnClickNavigateUrl="BLOCKED SCRIPTMSOLayout_ChangeLayoutMode(false);"
           PermissionsString="ManageSubwebs"
           PermissionMode="Any"
           />
   
5. Save the master page and login with an account that does not have Full Control, but is not read only either...  The Site Actions drop down should now resemble: