Submitter's comment: "Replace next" now replaces the currently selected text instead of finding the next occurrence and replacing it. To keep the location of the current occurrence, i added matchIndex to $(this).data.
I added some comments renamed a couple of variable for readability:
* s to textRemainder
* replace to actualReplacement
This is my first significant jQuery-style patch so it may have embarrassing mistakes - constructive criticism is welcome.