diff --git a/editor.html b/editor.html
index 44932b4b..c8d0ebec 100644
--- a/editor.html
+++ b/editor.html
@@ -115,7 +115,7 @@
 
     <script type="text/editor" id="jstext">function foo(items) {
     for (var i=0; i<items.length; i++) {
-		alert(items[i] + "juhu");
+        alert(items[i] + "juhu");
     }
 }
 // A magic character: >> ぁ <<
diff --git a/lib/ace/anchor.js b/lib/ace/anchor.js
new file mode 100644
index 00000000..ab5946ac
--- /dev/null
+++ b/lib/ace/anchor.js
@@ -0,0 +1,151 @@
+/* ***** BEGIN LICENSE BLOCK *****
+ * Version: MPL 1.1/GPL 2.0/LGPL 2.1
+ *
+ * The contents of this file are subject to the Mozilla Public License Version
+ * 1.1 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * http://www.mozilla.org/MPL/
+ *
+ * Software distributed under the License is distributed on an "AS IS" basis,
+ * WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
+ * for the specific language governing rights and limitations under the
+ * License.
+ *
+ * The Original Code is Ajax.org Code Editor (ACE).
+ *
+ * The Initial Developer of the Original Code is
+ * Ajax.org B.V.
+ * Portions created by the Initial Developer are Copyright (C) 2010
+ * the Initial Developer. All Rights Reserved.
+ *
+ * Contributor(s):
+ *      Fabian Jakobs <fabian AT ajax DOT org>
+ *
+ * Alternatively, the contents of this file may be used under the terms of
+ * either the GNU General Public License Version 2 or later (the "GPL"), or
+ * the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
+ * in which case the provisions of the GPL or the LGPL are applicable instead
+ * of those above. If you wish to allow use of your version of this file only
+ * under the terms of either the GPL or the LGPL, and not to allow others to
+ * use your version of this file under the terms of the MPL, indicate your
+ * decision by deleting the provisions above and replace them with the notice
+ * and other provisions required by the GPL or the LGPL. If you do not delete
+ * the provisions above, a recipient may use your version of this file under
+ * the terms of any one of the MPL, the GPL or the LGPL.
+ *
+ * ***** END LICENSE BLOCK ***** */
+
+define(function(require, exports, module) {
+
+var oop = require("pilot/oop");
+var EventEmitter = require("pilot/event_emitter").EventEmitter;
+
+/**
+ * An Anchor is a floating pointer in the document. Whenever text is inserted or
+ * deleted before the cursor, the position of the cursor is updated
+ */
+var Anchor = exports.Anchor = function(doc, row, column) {
+    this.document = doc;
+    this.pos = {
+        row: row,
+        column: column
+    };
+    doc.on("change", this.onChange.bind(this));
+};
+
+(function() {
+
+    oop.implement(this, EventEmitter);
+    
+    this.getPosition = function() {
+        return {
+            row: this.pos.row,
+            column: this.pos.column
+        };
+    };
+    
+    this.getDocument = function() {
+        return this.document;
+    };
+    
+    this.onChange = function(e) {
+        var delta = e.data;
+        var range = delta.range;
+            
+        if (range.start.row == range.end.row && range.start.row != this.pos.row)
+            return;
+            
+        if (range.start.row > this.pos.row)
+            return;
+            
+        if (range.start.row == this.pos.row && range.start.column > this.pos.column)
+            return;
+    
+        var pos = this.getPosition();
+        if (delta.action === "insertText") {
+            if (range.start.row === pos.row && range.start.column <= pos.column) {
+                if (range.start.row === range.end.row) {
+                    pos.column += range.end.column - range.start.column;
+                }
+                else {
+                    pos.column -= range.start.column;
+                    pos.row += range.end.row - range.start.row;
+                }
+            }
+            else if (range.start.row !== range.end.row && range.start.row < pos.row) {
+                pos.row += range.end.row - range.start.row;
+            }
+        } else if (delta.action === "insertLines") {
+            if (range.start.row <= pos.row) {
+                pos.row += range.end.row - range.start.row;
+            }
+        }
+        else if (delta.action == "removeText") {
+            if (range.start.row == pos.row && range.start.column < pos.column) {
+                if (range.end.column >= pos.column)
+                    pos.column = range.start.column;
+                else
+                    pos.column = Math.max(0, pos.column - (range.end.column - range.start.column));
+                
+            } else if (range.start.row !== range.end.row && range.start.row < pos.row) {
+                if (range.end.row == pos.row) {
+                    pos.column = Math.max(0, pos.column - range.end.column) + range.start.column;
+                }
+                pos.row -= (range.end.row - range.start.row);
+            }
+            else if (range.end.row == pos.row) {
+                pos.row -= range.end.row - range.start.row;
+                pos.column = Math.max(0, pos.column - range.end.column) + range.start.column;
+            }
+        } else if (delta.action == "removeLines") {
+            if (range.start.row <= pos.row) {
+                if (range.end.row <= pos.row)
+                    pos.row -= range.end.row - range.start.row;
+                else {
+                    pos.row = range.start.row;
+                    pos.column = 0;
+                }
+            }
+        }
+
+        // clip
+        var len = this.document.getLength();
+        if (pos.row > len) {
+            pos.row = len - 1;
+            pos.column = this.document.getLine(len-1).length;
+        }
+        
+        this.setPosition(pos);
+    };
+
+    this.setPosition = function(pos) {
+        if (this.pos.row == pos.row && this.pos.column == pos.column)
+            return;
+            
+        this.pos = pos;
+        this._dispatchEvent("change");
+    };
+    
+}).call(Anchor.prototype);
+
+});
diff --git a/lib/ace/document.js b/lib/ace/document.js
index 0b621b31..f5d6b63a 100644
--- a/lib/ace/document.js
+++ b/lib/ace/document.js
@@ -202,7 +202,7 @@ var Document = function(text) {
         args.push.apply(args, lines);
         this.$lines.splice.apply(this.$lines, args);
 
-        var range = new Range(row, 0, row + lines.length - 1, 0);
+        var range = new Range(row, 0, row + lines.length, 0);
         var delta = {
             action: "insertLines",
             range: range,
@@ -315,7 +315,7 @@ var Document = function(text) {
      * @return {String[]} The removed lines
      */
     this.removeLines = function(firstRow, lastRow) {
-        var range = new Range(firstRow, 0, lastRow, this.$lines[lastRow].length);
+        var range = new Range(firstRow, 0, lastRow + 1, 0);
         var removed = this.$lines.splice(firstRow, lastRow - firstRow + 1);
 
         var delta = {
@@ -375,7 +375,7 @@ var Document = function(text) {
             else if (delta.action == "insertText")
                 this.insert(range.start, delta.text)
             else if (delta.action == "removeLines")
-                this.removeLines(range.start.row, range.end.row)
+                this.removeLines(range.start.row, range.end.row - 1)
             else if (delta.action == "removeText")
                 this.remove(range)
         }
@@ -387,7 +387,7 @@ var Document = function(text) {
             var range = Range.fromPoints(delta.range.start, delta.range.end);
 
             if (delta.action == "insertLines")
-                this.removeLines(range.start.row, range.end.row)
+                this.removeLines(range.start.row, range.end.row - 1)
             else if (delta.action == "insertText")
                 this.remove(range)
             else if (delta.action == "removeLines")
diff --git a/lib/ace/test/all.js b/lib/ace/test/all.js
index 46b5b55e..ad1bf2c3 100644
--- a/lib/ace/test/all.js
+++ b/lib/ace/test/all.js
@@ -40,6 +40,7 @@ require("../../../support/paths");
 var async = require("asyncjs");
 
 async.concat(
+    require("./anchor_test"),
     require("./change_document_test"),
     require("./document_test"),
     require("./edit_session_test"),
diff --git a/lib/ace/test/anchor_test.js b/lib/ace/test/anchor_test.js
new file mode 100644
index 00000000..1eb86287
--- /dev/null
+++ b/lib/ace/test/anchor_test.js
@@ -0,0 +1,180 @@
+/* ***** BEGIN LICENSE BLOCK *****
+ * Version: MPL 1.1/GPL 2.0/LGPL 2.1
+ *
+ * The contents of this file are subject to the Mozilla Public License Version
+ * 1.1 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * http://www.mozilla.org/MPL/
+ *
+ * Software distributed under the License is distributed on an "AS IS" basis,
+ * WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
+ * for the specific language governing rights and limitations under the
+ * License.
+ *
+ * The Original Code is Ajax.org Code Editor (ACE).
+ *
+ * The Initial Developer of the Original Code is
+ * Ajax.org B.V.
+ * Portions created by the Initial Developer are Copyright (C) 2010
+ * the Initial Developer. All Rights Reserved.
+ *
+ * Contributor(s):
+ *      Fabian Jakobs <fabian AT ajax DOT org>
+ *
+ * Alternatively, the contents of this file may be used under the terms of
+ * either the GNU General Public License Version 2 or later (the "GPL"), or
+ * the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
+ * in which case the provisions of the GPL or the LGPL are applicable instead
+ * of those above. If you wish to allow use of your version of this file only
+ * under the terms of either the GPL or the LGPL, and not to allow others to
+ * use your version of this file under the terms of the MPL, indicate your
+ * decision by deleting the provisions above and replace them with the notice
+ * and other provisions required by the GPL or the LGPL. If you do not delete
+ * the provisions above, a recipient may use your version of this file under
+ * the terms of any one of the MPL, the GPL or the LGPL.
+ *
+ * ***** END LICENSE BLOCK ***** */
+
+var Document = require("ace/document").Document;
+var Anchor = require("ace/anchor").Anchor;
+var Range = require("ace/range").Range;
+var assert = require("./assertions");
+var async = require("asyncjs");
+
+var Test = {
+
+    "test create anchor" : function() {
+        var doc = new Document("juhu");
+        var anchor = new Anchor(doc, 0, 0);
+        
+        assert.position(anchor.getPosition(), 0, 0);
+        assert.equal(anchor.getDocument(), doc);
+    },
+    
+    "test insert text in same row before cursor should move anchor column": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.insert({row: 1, column: 1}, "123");
+        assert.position(anchor.getPosition(), 1, 7);
+    },
+    
+    "test insert lines before cursor should move anchor row": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.insertLines(1, ["123", "456"]);
+        assert.position(anchor.getPosition(), 3, 4);    
+    },
+    
+    "test insert new line before cursor should move anchor column": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.insertNewLine({row: 0, column: 0});
+        assert.position(anchor.getPosition(), 2, 4);    
+    },
+    
+    "test insert new line in anchor line before anchor should move anchor column and row": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.insertNewLine({row: 1, column: 2});
+        assert.position(anchor.getPosition(), 2, 2);
+    },
+    
+    "test delete text in anchor line before anchor should move anchor column": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.remove(new Range(1, 1, 1, 3));
+        assert.position(anchor.getPosition(), 1, 2);
+    },
+    
+    "test remove range which contains the anchor should move the anchor to the start of the range": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 0, 3);
+        
+        doc.remove(new Range(0, 1, 1, 3));
+        assert.position(anchor.getPosition(), 0, 1);
+    },
+    
+    "test delete character before the anchor should have no effect": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.remove(new Range(1, 4, 1, 5));
+        console.log(doc.$lines);
+        assert.position(anchor.getPosition(), 1, 4);
+    },
+    
+    "test delete lines in anchor line before anchor should move anchor row": function() {
+        var doc = new Document("juhu\n1\n2\nkinners");
+        var anchor = new Anchor(doc, 3, 4);
+        
+        doc.removeLines(1, 2);
+        assert.position(anchor.getPosition(), 1, 4);
+    },
+    
+    "test remove new line before the cursor": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.removeNewLine(0);
+        assert.position(anchor.getPosition(), 0, 8);
+    },
+    
+    "test delete range which contains the anchor should move anchor to the end of the range": function() {
+        var doc = new Document("juhu\nkinners");
+        var anchor = new Anchor(doc, 1, 4);
+        
+        doc.remove(new Range(0, 2, 1, 2));
+        assert.position(anchor.getPosition(), 0, 4);
+    },
+    
+    "test delete line which contains the anchor should move anchor to the end of the range": function() {
+        var doc = new Document("juhu\nkinners\n123");
+        var anchor = new Anchor(doc, 1, 5);
+        
+        doc.removeLines(1, 1);
+        assert.position(anchor.getPosition(), 1, 0);
+    },
+    
+    "test remove after the anchor should have no effect": function() {
+        var doc = new Document("juhu\nkinners\n123");
+        var anchor = new Anchor(doc, 1, 2);
+        
+        doc.remove(new Range(1, 4, 2, 2));
+        assert.position(anchor.getPosition(), 1, 2);
+    },
+    
+    "test anchor changes triggered by document changes should emit change event": function(next) {
+        var doc = new Document("juhu\nkinners\n123");
+        var anchor = new Anchor(doc, 1, 5);
+        
+        anchor.on("change", function(e) {
+            assert.position(anchor.getPosition(), 0, 0);
+            next();
+        });
+        
+        doc.remove(new Range(0, 0, 2, 1));
+    },
+    
+    "test only fire change event if position changes": function() {
+        var doc = new Document("juhu\nkinners\n123");
+        var anchor = new Anchor(doc, 1, 5);
+        
+        anchor.on("change", function(e) {
+            assert.fail();
+        });
+        
+        doc.remove(new Range(2, 0, 2, 1));
+    }
+};
+
+module.exports = require("asyncjs/test").testcase(Test);
+
+if (module === require.main) {
+    require("../../../support/paths");
+    exports.exec()
+}