diff --git a/Makefile.dryice.js b/Makefile.dryice.js
index 1e7952a9..4ecd397f 100755
--- a/Makefile.dryice.js
+++ b/Makefile.dryice.js
@@ -441,7 +441,7 @@ var buildAce = function(options) {
     if (options.shrinkwrap) {
         console.log('# combining files into one ---------');
         copy({
-          source: { root:targetDir, exclude:/^worker\-/ },
+          source: { root:targetDir, exclude:/(^|\\|\/)worker\-[^\\\/]*\.js$/ },
           dest: BUILD_DIR + '/ace-min.js'
         });
     }
diff --git a/build_support/editor_textarea.html b/build_support/editor_textarea.html
index 9d878a1e..bb691c11 100644
--- a/build_support/editor_textarea.html
+++ b/build_support/editor_textarea.html
@@ -88,7 +88,7 @@ inject(function () {
     var ace = window.__ace_shadowed__;
     var t = document.querySelector("textarea");
     textAce = ace.transformTextarea(t, window.__ace_loader__);
-    textAce.setDisplaySettings(true);
+    setTimeout(function(){textAce.setDisplaySettings(true)});
 });
 
 
diff --git a/lib/ace/css/editor.css b/lib/ace/css/editor.css
index 4b6c8e42..0aee0f71 100644
--- a/lib/ace/css/editor.css
+++ b/lib/ace/css/editor.css
@@ -2,6 +2,8 @@
     position: relative;
     overflow: hidden;
     font-family: 'Monaco', 'Menlo', 'Ubuntu Mono', 'Consolas', 'source-code-pro', monospace;
+    font-size: 12px;
+    line-height: normal;
 }
 
 .ace_scroller {
diff --git a/lib/ace/editor.js b/lib/ace/editor.js
index cbd0ef71..d7a56fb2 100644
--- a/lib/ace/editor.js
+++ b/lib/ace/editor.js
@@ -342,6 +342,8 @@ var Editor = function(renderer, session) {
      * 
      **/
     this.setFontSize = function(size) {
+        if (typeof size == "number")
+            size = size + "px";
         this.container.style.fontSize = size;
         this.renderer.updateFontSize();
     };
diff --git a/lib/ace/ext/textarea.js b/lib/ace/ext/textarea.js
index a36db850..fe5066b0 100644
--- a/lib/ace/ext/textarea.js
+++ b/lib/ace/ext/textarea.js
@@ -177,7 +177,8 @@ exports.transformTextarea = function(element, loader) {
         left: "0px",
         right: "0px",
         bottom: "0px",
-        border: "1px solid gray"
+        border: "1px solid gray",
+        position: "absolute"
     });
     container.appendChild(editorDiv);
 
@@ -198,7 +199,7 @@ exports.transformTextarea = function(element, loader) {
     var settingDiv = document.createElement("div");
     var settingDivStyles = {
         top: "0px",
-        left: "0px",
+        left: "20%",
         right: "0px",
         bottom: "0px",
         position: "absolute",
@@ -207,7 +208,8 @@ exports.transformTextarea = function(element, loader) {
         color: "white",
         display: "none",
         overflow: "auto",
-        fontSize: "14px"
+        fontSize: "14px",
+        boxShadow: "-5px 2px 3px gray"
     };
     if (!UA.isOldIE) {
         settingDivStyles.backgroundColor = "rgba(0, 0, 0, 0.6)";
@@ -228,7 +230,7 @@ exports.transformTextarea = function(element, loader) {
     editor.focus();
 
     // Add the settingPanel opener to the editor's div.
-    editorDiv.appendChild(settingOpener);
+    container.appendChild(settingOpener);
 
     // Create the API.
     setupApi(editor, editorDiv, settingDiv, ace, options, loader);
@@ -280,13 +282,22 @@ function setupApi(editor, editorDiv, settingDiv, ace, options, loader) {
     loader = loader || load;
 
     function toBool(value) {
-        return value == "true";
+        return value === "true" || value == true;
     }
 
     editor.setDisplaySettings = function(display) {
         if (display == null)
             display = settingDiv.style.display == "none";
-        settingDiv.style.display = display ? "block" : "none";
+        if (display) {
+            settingDiv.style.display = "block";
+            settingDiv.hideButton.focus();
+            editor.on("focus", function onFocus() {
+                editor.removeListener("focus", onFocus);
+                settingDiv.style.display = "none"
+            });
+        } else {
+            editor.focus();
+        };
     };
     
     editor.setOption = function(key, value) {
@@ -393,10 +404,7 @@ function setupApi(editor, editorDiv, settingDiv, ace, options, loader) {
 }
 
 function setupSettingPanel(settingDiv, settingOpener, editor, options) {
-    var BOOL = {
-        "true":  true,
-        "false": false
-    };
+    var BOOL = null;
 
     var desc = {
         mode:            "Mode:",
@@ -484,6 +492,14 @@ function setupSettingPanel(settingDiv, settingOpener, editor, options) {
     table.push("<table><tr><th>Setting</th><th>Value</th></tr>");
 
     function renderOption(builder, option, obj, cValue) {
+        if (!obj) {
+            builder.push(
+                "<input type='checkbox' title='", option, "' ",
+                    cValue == "true" ? "checked='true'" : "",
+               "'></input>"
+            );
+            return
+        }
         builder.push("<select title='" + option + "'>");
         for (var value in obj) {
             builder.push("<option value='" + value + "' ");
@@ -508,18 +524,21 @@ function setupSettingPanel(settingDiv, settingOpener, editor, options) {
     table.push("</table>");
     settingDiv.innerHTML = table.join("");
 
+    var onChange = function(e) {
+        var select = e.currentTarget;
+        editor.setOption(select.title, select.value);
+    };
+    var onClick = function(e) {
+        var cb = e.currentTarget;
+        editor.setOption(cb.title, cb.checked);
+    };
     var selects = settingDiv.getElementsByTagName("select");
-    for (var i = 0; i < selects.length; i++) {
-        var onChange = (function() {
-            var select = selects[i];
-            return function() {
-                var option = select.title;
-                var value  = select.value;
-                editor.setOption(option, value);
-            };
-        })();
+    for (var i = 0; i < selects.length; i++)
         selects[i].onchange = onChange;
-    }
+    var cbs = settingDiv.getElementsByTagName("input");
+    for (var i = 0; i < cbs.length; i++)
+        cbs[i].onclick = onClick;
+
 
     var button = document.createElement("input");
     button.type = "button";
@@ -528,6 +547,7 @@ function setupSettingPanel(settingDiv, settingOpener, editor, options) {
         editor.setDisplaySettings(false);
     });
     settingDiv.appendChild(button);
+    settingDiv.hideButton = button;
 }
 
 // Default startup options.
@@ -540,7 +560,7 @@ exports.options = {
     keybindings:        "ace",
     showPrintMargin:    "false",
     useSoftTabs:        "true",
-    showInvisibles:     "true"
+    showInvisibles:     "false"
 };
 
 });
diff --git a/lib/ace/keyboard/textinput.js b/lib/ace/keyboard/textinput.js
index cda58170..e4def8b1 100644
--- a/lib/ace/keyboard/textinput.js
+++ b/lib/ace/keyboard/textinput.js
@@ -51,7 +51,7 @@ var TextInput = function(parentNode, host) {
     text.autocapitalize = "off";
     text.spellcheck = false;
 
-    text.style.bottom = "-2em";
+    text.style.bottom = "2000em";
     parentNode.insertBefore(text, parentNode.firstChild);
 
     var PLACEHOLDER = "\x01\x01";
diff --git a/lib/ace/mouse/default_gutter_handler.js b/lib/ace/mouse/default_gutter_handler.js
index ee8f03af..fc971da6 100644
--- a/lib/ace/mouse/default_gutter_handler.js
+++ b/lib/ace/mouse/default_gutter_handler.js
@@ -42,7 +42,7 @@ function GutterHandler(mouseHandler) {
             return;
         var gutterRegion = gutter.getRegion(e);
 
-        if (gutterRegion)
+        if (gutterRegion == "foldWidgets")
             return;
 
         var row = e.getDocumentPosition().row;
diff --git a/lib/ace/mouse/fold_handler.js b/lib/ace/mouse/fold_handler.js
index 058107e0..315a1d3b 100644
--- a/lib/ace/mouse/fold_handler.js
+++ b/lib/ace/mouse/fold_handler.js
@@ -50,6 +50,8 @@ function FoldHandler(editor) {
     });
 
     editor.on("guttermousedown", function(e) {
+        if (!editor.isFocused())
+            return;
         var gutterRegion = editor.renderer.$gutterLayer.getRegion(e);
 
         if (gutterRegion == "foldWidgets") {