diff --git a/lib/ace/editor.js b/lib/ace/editor.js
index d92666b8..b279ef7f 100644
--- a/lib/ace/editor.js
+++ b/lib/ace/editor.js
@@ -704,12 +704,14 @@ var Editor = function(renderer, session) {
             if (transform)
                 text = transform.text;
         }
-
-        text = text.replace("\t", this.session.getTabString());
+        
+        if (text == "\t")
+            text = this.session.getTabString();
 
         // remove selected text
         if (!this.selection.isEmpty()) {
-            cursor = this.session.remove(this.getSelectionRange());
+            var range = this.getSelectionRange();
+            cursor = this.session.remove(range);
             this.clearSelection();
         }
         else if (this.session.getOverwrite()) {
@@ -718,6 +720,13 @@ var Editor = function(renderer, session) {
             this.session.remove(range);
         }
 
+        if (text == "\n" || text == "\r\n") {
+            var line = session.getLine(cursor.row)
+            if (cursor.column > line.search(/\S|$/)) {
+                var d = line.substr(cursor.column).search(/\S|$/);
+                session.doc.removeInLine(cursor.row, cursor.column, cursor.column + d);
+            }
+        }
         this.clearSelection();
 
         var start = cursor.column;
@@ -740,44 +749,10 @@ var Editor = function(renderer, session) {
             }
         }
 
-        // TODO disabled multiline auto indent
-        // possibly doing the indent before inserting the text
-        // if (cursor.row !== end.row) {
         if (session.getDocument().isNewLine(text)) {
             var lineIndent = mode.getNextLineIndent(lineState, line.slice(0, cursor.column), session.getTabString());
 
-            this.moveCursorTo(cursor.row+1, 0);
-
-            var size = session.getTabSize();
-            var minIndent = Number.MAX_VALUE;
-
-            for (var row = cursor.row + 1; row <= end.row; ++row) {
-                var indent = 0;
-
-                line = session.getLine(row);
-                for (var i = 0; i < line.length; ++i)
-                    if (line.charAt(i) == '\t')
-                        indent += size;
-                    else if (line.charAt(i) == ' ')
-                        indent += 1;
-                    else
-                        break;
-                if (/[^\s]/.test(line))
-                    minIndent = Math.min(indent, minIndent);
-            }
-
-            for (var row = cursor.row + 1; row <= end.row; ++row) {
-                var outdent = minIndent;
-
-                line = session.getLine(row);
-                for (var i = 0; i < line.length && outdent > 0; ++i)
-                    if (line.charAt(i) == '\t')
-                        outdent -= size;
-                    else if (line.charAt(i) == ' ')
-                        outdent -= 1;
-                session.remove(new Range(row, 0, row, i));
-            }
-            session.indentRows(cursor.row + 1, end.row, lineIndent);
+            session.insert({row: cursor.row+1, column: 0}, lineIndent);
         }
         if (shouldOutdent)
             mode.autoOutdent(lineState, session, cursor.row);
@@ -1072,6 +1047,16 @@ var Editor = function(renderer, session) {
             var session = this.session;
             var state = session.getState(range.start.row);
             var new_range = session.getMode().transformAction(state, 'deletion', this, session, range);
+
+            if (range.end.column == 0) {
+                var text = session.getTextRange(range);
+                if (text[text.length - 1] == "\n") {
+                    var line = session.getLine(range.end.row)
+                    if (/^\s+$/.test(line)) {
+                        range.end.column = line.length
+                    }
+                }
+            }
             if (new_range)
                 range = new_range;
         }
@@ -1209,23 +1194,37 @@ var Editor = function(renderer, session) {
         var session = this.session;
         var range = this.getSelectionRange();
 
-        if (range.start.row < range.end.row || range.start.column < range.end.column) {
+        if (range.start.row < range.end.row) {
             var rows = this.$getSelectedRows();
             session.indentRows(rows.first, rows.last, "\t");
-        } else {
-            var indentString;
-
-            if (this.session.getUseSoftTabs()) {
-                var size        = session.getTabSize(),
-                    position    = this.getCursorPosition(),
-                    column      = session.documentToScreenColumn(position.row, position.column),
-                    count       = (size - column % size);
-
-                indentString = lang.stringRepeat(" ", count);
-            } else
-                indentString = "\t";
-            return this.insert(indentString);
+            return;
+        } else if (range.start.column < range.end.column) {
+            var text = session.getTextRange(range)
+            if (!/^\s+$/.test(text)) {
+                var rows = this.$getSelectedRows();
+                session.indentRows(rows.first, rows.last, "\t");
+                return;
+            }
         }
+        
+        var line = session.getLine(range.start.row)
+        var position = range.start;
+        var size = session.getTabSize();
+        var column = session.documentToScreenColumn(position.row, position.column);
+
+        if (this.session.getUseSoftTabs()) {
+            var count = (size - column % size);
+            var indentString = lang.stringRepeat(" ", count);
+        } else {
+            var count = column % size;
+            while (line[range.start.column] == " " && count) {
+                range.start.column--;
+                count--;
+            }
+            this.selection.setSelectionRange(range);
+            indentString = "\t";
+        }
+        return this.insert(indentString);
     };
 
     /**
diff --git a/lib/ace/mode/behaviour/xml.js b/lib/ace/mode/behaviour/xml.js
index 0d03b763..7a996e22 100644
--- a/lib/ace/mode/behaviour/xml.js
+++ b/lib/ace/mode/behaviour/xml.js
@@ -84,11 +84,11 @@ var XmlBehaviour = function () {
     this.add('autoindent', 'insertion', function (state, action, editor, session, text) {
         if (text == "\n") {
             var cursor = editor.getCursorPosition();
-            var line = session.doc.getLine(cursor.row);
+            var line = session.getLine(cursor.row);
             var rightChars = line.substring(cursor.column, cursor.column + 2);
             if (rightChars == '</') {
-                var indent = this.$getIndent(session.doc.getLine(cursor.row)) + session.getTabString();
-                var next_indent = this.$getIndent(session.doc.getLine(cursor.row));
+                var next_indent = this.$getIndent(line);
+                var indent = next_indent + session.getTabString();
 
                 return {
                     text: '\n' + indent + '\n' + next_indent,