diff --git a/demo/kitchen-sink/docs/matlab.matlab b/demo/kitchen-sink/docs/matlab.matlab
index 30404ce4..b2ca44d5 100644
--- a/demo/kitchen-sink/docs/matlab.matlab
+++ b/demo/kitchen-sink/docs/matlab.matlab
@@ -1 +1,17 @@
-TODO
\ No newline at end of file
+%{
+   %{
+      Ace Matlab demo
+   %}
+%}
+
+classdef hello
+   methods
+      function greet(this)
+         disp('Hello!')  % say hi
+      end
+   end
+end
+
+% transpose 
+a = [ 'x''y', "x\n\
+      y", 1' ]' + 2'
\ No newline at end of file
diff --git a/demo/kitchen-sink/styles.css b/demo/kitchen-sink/styles.css
index 7db52e45..3f46f701 100644
--- a/demo/kitchen-sink/styles.css
+++ b/demo/kitchen-sink/styles.css
@@ -46,4 +46,10 @@ body {
     position: absolute;
     right: 0;
     border-left: 1px solid;
-}
\ No newline at end of file
+}
+
+/* .ace_text-input {
+    z-index: 10!important;
+    opacity: 1!important;
+    background: rgb(84, 0, 255)!important;
+}*/
diff --git a/doc/site/js/main.js b/doc/site/js/main.js
index 514fad42..92ce6e08 100644
--- a/doc/site/js/main.js
+++ b/doc/site/js/main.js
@@ -171,7 +171,11 @@ function highlight() {
     var highlighter = ace.require("ace/ext/static_highlight")
     var dom = ace.require("ace/lib/dom")
     function qsa(sel) {
-        return Array.apply(null, document.querySelectorAll(sel));
+        var els = document.querySelectorAll(sel);
+        var result = [];
+        for (var i = 0, l = els.length; i < l; i++)
+            result[i] = els[i];
+        return result;
     }
 
     qsa("code[class]").forEach(function(el) {
diff --git a/lib/ace/autocomplete.js b/lib/ace/autocomplete.js
index d5724441..78015bd4 100644
--- a/lib/ace/autocomplete.js
+++ b/lib/ace/autocomplete.js
@@ -89,6 +89,8 @@ var Autocomplete = function() {
             pos.left += renderer.$gutterLayer.gutterWidth;
 
             this.popup.show(pos, lineHeight);
+        } else if (keepPopupPosition && !prefix) {
+            this.detach();
         }
     };
 
@@ -206,7 +208,8 @@ var Autocomplete = function() {
         var prefix = util.retrievePrecedingIdentifier(line, pos.column);
 
         this.base = session.doc.createAnchor(pos.row, pos.column - prefix.length);
-
+        this.base.$insertRight = true;
+        
         var matches = [];
         var total = editor.completers.length;
         editor.completers.forEach(function(completer, i) {
@@ -297,7 +300,7 @@ var Autocomplete = function() {
                 return detachIfFinished();
 
             // Autoinsert if one result
-            if (this.autoInsert && filtered.length == 1)
+            if (this.autoInsert && filtered.length == 1 && results.finished)
                 return this.insertMatch(filtered[0]);
 
             this.openPopup(this.editor, prefix, keepPopupPosition);
diff --git a/lib/ace/edit_session.js b/lib/ace/edit_session.js
index f563579d..71cda95c 100644
--- a/lib/ace/edit_session.js
+++ b/lib/ace/edit_session.js
@@ -969,8 +969,10 @@ var EditSession = function(text, mode) {
         try {
             this.$worker = this.$mode.createWorker(this);
         } catch (e) {
-            console.log("Could not load worker");
-            console.log(e);
+            if (typeof console == "object") {
+                console.log("Could not load worker");
+                console.log(e);
+            }    
             this.$worker = null;
         }
     };
@@ -1958,6 +1960,8 @@ var EditSession = function(text, mode) {
             split = lastSplit + wrapLimit;
             // The split is inside of a CHAR or CHAR_EXT token and no space
             // around -> force a split.
+            if (tokens[split] == CHAR_EXT)
+                split--;
             addSplit(split);
         }
         return splits;
diff --git a/lib/ace/keyboard/textinput.js b/lib/ace/keyboard/textinput.js
index e4e8f2a9..d2293024 100644
--- a/lib/ace/keyboard/textinput.js
+++ b/lib/ace/keyboard/textinput.js
@@ -51,6 +51,7 @@ var TextInput = function(parentNode, host) {
     text.spellcheck = false;
 
     text.style.opacity = "0";
+    if (useragent.isOldIE) text.style.top = "-100px";
     parentNode.insertBefore(text, parentNode.firstChild);
 
     var PLACEHOLDER = "\x01\x01";
@@ -436,6 +437,8 @@ var TextInput = function(parentNode, host) {
     };
     
     this.moveToMouse = function(e, bringToFront) {
+        if (!bringToFront && useragent.isOldIE)
+            return;
         if (!tempStyle)
             tempStyle = text.style.cssText;
         text.style.cssText = (bringToFront ? "z-index:100000;" : "")
@@ -460,13 +463,15 @@ var TextInput = function(parentNode, host) {
             host.renderer.$keepTextAreaAtCursor = null;
 
         // on windows context menu is opened after mouseup
-        if (useragent.isWin)
+        if (useragent.isWin && !useragent.isOldIE)
             event.capture(host.container, move, onContextMenuClose);
     };
 
     this.onContextMenuClose = onContextMenuClose;
+    var closeTimeout;
     function onContextMenuClose() {
-        setTimeout(function () {
+        clearTimeout(closeTimeout)
+        closeTimeout = setTimeout(function () {
             if (tempStyle) {
                 text.style.cssText = tempStyle;
                 tempStyle = '';
@@ -475,7 +480,7 @@ var TextInput = function(parentNode, host) {
                 host.renderer.$keepTextAreaAtCursor = true;
                 host.renderer.$moveTextAreaToCursor();
             }
-        }, 0);
+        }, useragent.isOldIE ? 200 : 0);
     }
 
     var onContextMenu = function(e) {
diff --git a/lib/ace/layer/text.js b/lib/ace/layer/text.js
index 7c3aa053..aeb74f1c 100644
--- a/lib/ace/layer/text.js
+++ b/lib/ace/layer/text.js
@@ -322,7 +322,7 @@ var Text = function(parentEl) {
 
     this.$renderToken = function(stringBuilder, screenColumn, token, value) {
         var self = this;
-        var replaceReg = /\t|&|<|( +)|([\x00-\x1f\x80-\xa0\u1680\u180E\u2000-\u200f\u2028\u2029\u202F\u205F\u3000\uFEFF])|[\u1100-\u115F\u11A3-\u11A7\u11FA-\u11FF\u2329-\u232A\u2E80-\u2E99\u2E9B-\u2EF3\u2F00-\u2FD5\u2FF0-\u2FFB\u3000-\u303E\u3041-\u3096\u3099-\u30FF\u3105-\u312D\u3131-\u318E\u3190-\u31BA\u31C0-\u31E3\u31F0-\u321E\u3220-\u3247\u3250-\u32FE\u3300-\u4DBF\u4E00-\uA48C\uA490-\uA4C6\uA960-\uA97C\uAC00-\uD7A3\uD7B0-\uD7C6\uD7CB-\uD7FB\uF900-\uFAFF\uFE10-\uFE19\uFE30-\uFE52\uFE54-\uFE66\uFE68-\uFE6B\uFF01-\uFF60\uFFE0-\uFFE6]/g;
+        var replaceReg = /\t|&|<|( +)|([\x00-\x1f\x80-\xa0\xad\u1680\u180E\u2000-\u200f\u2028\u2029\u202F\u205F\u3000\uFEFF])|[\u1100-\u115F\u11A3-\u11A7\u11FA-\u11FF\u2329-\u232A\u2E80-\u2E99\u2E9B-\u2EF3\u2F00-\u2FD5\u2FF0-\u2FFB\u3000-\u303E\u3041-\u3096\u3099-\u30FF\u3105-\u312D\u3131-\u318E\u3190-\u31BA\u31C0-\u31E3\u31F0-\u321E\u3220-\u3247\u3250-\u32FE\u3300-\u4DBF\u4E00-\uA48C\uA490-\uA4C6\uA960-\uA97C\uAC00-\uD7A3\uD7B0-\uD7C6\uD7CB-\uD7FB\uF900-\uFAFF\uFE10-\uFE19\uFE30-\uFE52\uFE54-\uFE66\uFE68-\uFE6B\uFF01-\uFF60\uFFE0-\uFFE6]/g;
         var replaceFunc = function(c, a, b, tabIdx, idx4) {
             if (a) {
                 return self.showInvisibles ?
diff --git a/lib/ace/lib/keys.js b/lib/ace/lib/keys.js
index e708a5d4..e75a6e47 100644
--- a/lib/ace/lib/keys.js
+++ b/lib/ace/lib/keys.js
@@ -34,6 +34,8 @@ For more information about SproutCore, visit http://www.sproutcore.com
 define(function(require, exports, module) {
 "use strict";
 
+require("./fixoldbrowsers");
+
 var oop = require("./oop");
 
 /*
@@ -136,7 +138,7 @@ var Keys = (function() {
     
     (function() {
         var mods = ["cmd", "ctrl", "alt", "shift"];
-        for (var i = Math.pow(2, mods.length); i--;) {
+        for (var i = Math.pow(2, mods.length); i--;) {            
             ret.KEY_MODS[i] = mods.filter(function(x) {
                 return i & ret.KEY_MODS[x];
             }).join("-") + "-";
diff --git a/lib/ace/mode/matlab_highlight_rules.js b/lib/ace/mode/matlab_highlight_rules.js
index 14474e2c..ee0e1ca8 100644
--- a/lib/ace/mode/matlab_highlight_rules.js
+++ b/lib/ace/mode/matlab_highlight_rules.js
@@ -164,15 +164,53 @@ var keywords = (
     }, "identifier", true);
 
     this.$rules = {
-        "start" : [ {
+        // allowQstring
+        start: [{ 
+            token : "string",
+            regex : "'",
+            stateName : "qstring",
+            next  : [{
+                token : "constant.language.escape",
+                regex : "''"
+            }, {
+                token : "string",
+                regex : "'|$",
+                next  : "start"
+            }, {
+                defaultToken: "string"
+            }]
+        }, {
+            token : "text",
+            regex : "\\s+"
+        }, {
+            regex: "",
+            next: "noQstring"
+        }],        
+        noQstring : [{
+            regex: "^\\s*%{\\s*$",
+            token: "comment.start",
+            push: "blockComment"
+        }, {
             token : "comment",
             regex : "%[^\r\n]*"
         }, {
-             token : "string",           // " string
-            regex : '".*?"'
-        }, {
-            token : "string",           // ' string
-            regex : "'.*?'"
+            token : "string",
+            regex : '"',
+            stateName : "qqstring",
+            next  : [{
+                token : "constant.language.escape",
+                regex : /\\./
+            }, {
+                token : "string",
+                regex : "\\\\$",
+                next  : "qqstring"
+            }, {
+                token : "string",
+                regex : '"|$',
+                next  : "start"
+            }, {
+                defaultToken: "string"
+            }]
         }, {
             token : "constant.numeric", // float
             regex : "[+-]?\\d+(?:(?:\\.\\d*)?(?:[eE][+-]?\\d+)?)?\\b"
@@ -181,21 +219,41 @@ var keywords = (
             regex : "[a-zA-Z_$][a-zA-Z0-9_$]*\\b"
         }, {
             token : "keyword.operator",
-            regex : "\\+|\\-|\\/|\\/\\/|<@>|@>|<@|&|\\^|~|<|>|<=|=>|==|!=|<>|="
+            regex : "\\+|\\-|\\/|\\/\\/|<@>|@>|<@|&|\\^|~|<|>|<=|=>|==|!=|<>|=",
+            next: "start"
         }, {
-             token : "punctuation.operator",
-             regex : "\\?|\\:|\\,|\\;|\\."
+            token : "punctuation.operator",
+            regex : "\\?|\\:|\\,|\\;|\\.",
+            next: "start"
         }, {
             token : "paren.lparen",
-            regex : "[\\(]"
+            regex : "[({\\[]",
+            next: "start"
         }, {
             token : "paren.rparen",
-            regex : "[\\)]"
+            regex : "[\\]})]"
         }, {
             token : "text",
             regex : "\\s+"
-        } ]
+        }, {
+            token : "text",
+            regex : "$",
+            next  : "start"
+        }],
+        blockComment: [{
+            regex: "^\\s*%{\\s*$",
+            token: "comment.start",
+            push: "blockComment"
+        }, {
+            regex: "^\\s*%}\\s*$",
+            token: "comment.end",
+            next: "pop"
+        }, {
+            defaultToken: "comment"
+        }],
     };
+    
+    this.normalizeRules();
 };
 
 oop.inherits(MatlabHighlightRules, TextHighlightRules);