diff --git a/IPython/frontend/html/notebook/handlers.py b/IPython/frontend/html/notebook/handlers.py
index 2f53693..aa272a4 100644
--- a/IPython/frontend/html/notebook/handlers.py
+++ b/IPython/frontend/html/notebook/handlers.py
@@ -166,20 +166,6 @@ class NotebookHandler(web.RequestHandler):
 # RST web service handlers
 #-----------------------------------------------------------------------------
 
-_rst_header = """========
-Heading1
-========
-
-Heading2
-========
-
-Heading3
---------
-
-Heading4
-^^^^^^^^
-
-"""
 
 class RSTHandler(web.RequestHandler):
 
@@ -187,15 +173,14 @@ class RSTHandler(web.RequestHandler):
         if publish_string is None:
             raise web.HTTPError(503)
         body = self.request.body.strip()
-        source = _rst_header + body
-        template_path=os.path.join(os.path.dirname(__file__), u'templates', u'rst_template.html')
+        source = body
+        # template_path=os.path.join(os.path.dirname(__file__), u'templates', u'rst_template.html')
         print template_path
         defaults = {'file_insertion_enabled': 0,
                     'raw_enabled': 0,
                     '_disable_config': 1,
                     'stylesheet_path': 0,
-                    'initial_header_level': 3,
-                    'template': template_path
+                    # 'template': template_path
         }
         try:
             html = publish_string(source, writer_name='html',
@@ -204,8 +189,6 @@ class RSTHandler(web.RequestHandler):
         except:
             raise web.HTTPError(400)
         print html
-#        html = '\n'.join(html.split('\n')[7:-3])
-#        print html
         self.set_header('Content-Type', 'text/html')
         self.finish(html)
 
diff --git a/IPython/frontend/html/notebook/static/js/codecell.js b/IPython/frontend/html/notebook/static/js/codecell.js
index ed305aa..883ec9c 100644
--- a/IPython/frontend/html/notebook/static/js/codecell.js
+++ b/IPython/frontend/html/notebook/static/js/codecell.js
@@ -204,7 +204,7 @@ var IPython = (function (IPython) {
 
     CodeCell.prototype.append_pyerr = function (json) {
         var tb = json.traceback;
-        if (tb !== undefined) {
+        if (tb !== undefined && tb.length > 0) {
             var s = '';
             var len = tb.length;
             for (var i=0; i<len; i++) {
@@ -262,7 +262,7 @@ var IPython = (function (IPython) {
     CodeCell.prototype.append_text = function (data, element) {
         element = element || this.element.find("div.output");
         var toinsert = $("<div/>").addClass("output_stream");
-        toinsert.append($("<pre/>").html(utils.fixConsole(data)));
+        toinsert.append($("<pre/>").html(data));
         element.append(toinsert);
         return element;
     };
diff --git a/IPython/frontend/html/notebook/static/js/notebook.js b/IPython/frontend/html/notebook/static/js/notebook.js
index 10c31c1..cfd37b6 100644
--- a/IPython/frontend/html/notebook/static/js/notebook.js
+++ b/IPython/frontend/html/notebook/static/js/notebook.js
@@ -520,7 +520,7 @@ var IPython = (function (IPython) {
         var json = {};
         json.output_type = msg_type;
         if (msg_type === "stream") {
-            json.text = content.data + '\n';
+            json.text = utils.fixConsole(content.data + '\n');
         } else if (msg_type === "display_data") {
             json = this.convert_mime_types(json, content.data);
         } else if (msg_type === "pyout") {
@@ -529,7 +529,11 @@ var IPython = (function (IPython) {
         } else if (msg_type === "pyerr") {
             json.ename = content.ename;
             json.evalue = content.evalue;
-            json.traceback = content.traceback;
+            var traceback = [];
+            for (var i=0; i<content.traceback.length; i++) {
+                traceback.push(utils.fixConsole(content.traceback[i]));
+            }
+            json.traceback = traceback;
         };
         cell.append_output(json);
     };
@@ -537,7 +541,7 @@ var IPython = (function (IPython) {
 
     Notebook.prototype.convert_mime_types = function (json, data) {
         if (data['text/plain'] !== undefined) {
-            json.text = data['text/plain'];
+            json.text = utils.fixConsole(data['text/plain']);
         };
         if (data['text/html'] !== undefined) {
             json.html = data['text/html'];
@@ -688,7 +692,6 @@ var IPython = (function (IPython) {
 
     Notebook.prototype.notebook_saved = function (data, status, xhr) {
         setTimeout($.proxy(IPython.save_widget.status_save,IPython.save_widget),500);
-//        IPython.save_widget.status_save();
     }
 
 
diff --git a/IPython/nbformat/v2/nbbase.py b/IPython/nbformat/v2/nbbase.py
index ee7bac3..dcc430d 100644
--- a/IPython/nbformat/v2/nbbase.py
+++ b/IPython/nbformat/v2/nbbase.py
@@ -24,29 +24,43 @@ def from_dict(d):
 
 def new_output(output_type=None, output_text=None, output_png=None,
     output_html=None, output_svg=None, output_latex=None, output_json=None, 
-    output_javascript=None, output_jpeg=None, prompt_number=None):
+    output_javascript=None, output_jpeg=None, prompt_number=None,
+    etype=None, evalue=None, traceback=None):
     """Create a new code cell with input and output"""
     output = NotebookNode()
     if output_type is not None:
         output.output_type = unicode(output_type)
-    if output_text is not None:
-        output.text = unicode(output_text)
-    if output_png is not None:
-        output.png = bytes(output_png)
-    if output_jpeg is not None:
-        output.jpeg = bytes(output_jpeg)
-    if output_html is not None:
-        output.html = unicode(output_html)
-    if output_svg is not None:
-        output.svg = unicode(output_svg)
-    if output_latex is not None:
-        output.latex = unicode(output_latex)
-    if output_json is not None:
-        output.json = unicode(output_json)
-    if output_javascript is not None:
-        output.javascript = unicode(output_javascript)
-    if prompt_number is not None:
-        output.prompt_number = int(prompt_number)
+
+    if output_type != 'pyerr':
+        if output_text is not None:
+            output.text = unicode(output_text)
+        if output_png is not None:
+            output.png = bytes(output_png)
+        if output_jpeg is not None:
+            output.jpeg = bytes(output_jpeg)
+        if output_html is not None:
+            output.html = unicode(output_html)
+        if output_svg is not None:
+            output.svg = unicode(output_svg)
+        if output_latex is not None:
+            output.latex = unicode(output_latex)
+        if output_json is not None:
+            output.json = unicode(output_json)
+        if output_javascript is not None:
+            output.javascript = unicode(output_javascript)
+
+    if output_type == u'pyout':
+        if prompt_number is not None:
+            output.prompt_number = int(prompt_number)
+
+    if output_type == u'pyerr':
+        if etype is not None:
+            output.etype = unicode(etype)
+        if evalue is not None:
+            output.evalue = unicode(evalue)
+        if traceback is not None:
+            output.traceback = [unicode(frame) for frame in list(traceback)]
+
     return output
 
 
diff --git a/IPython/nbformat/v2/nbxml.py b/IPython/nbformat/v2/nbxml.py
index 3647a03..b5f7e62 100644
--- a/IPython/nbformat/v2/nbxml.py
+++ b/IPython/nbformat/v2/nbxml.py
@@ -90,53 +90,64 @@ class XMLReader(NotebookReader):
         return self.to_notebook(root, **kwargs)
 
     def to_notebook(self, root, **kwargs):
-        nbname = _get_text(root,'name')
-        nbid = _get_text(root,'id')
-        nbauthor = _get_text(root,'author')
-        nbemail = _get_text(root,'email')
-        nblicense = _get_text(root,'license')
-        nbcreated = _get_text(root,'created')
-        nbsaved = _get_text(root,'saved')
+        nbname = _get_text(root,u'name')
+        nbid = _get_text(root,u'id')
+        nbauthor = _get_text(root,u'author')
+        nbemail = _get_text(root,u'email')
+        nblicense = _get_text(root,u'license')
+        nbcreated = _get_text(root,u'created')
+        nbsaved = _get_text(root,u'saved')
         
         worksheets = []
-        for ws_e in root.find('worksheets').getiterator('worksheet'):
-            wsname = _get_text(ws_e,'name')
+        for ws_e in root.find(u'worksheets').getiterator(u'worksheet'):
+            wsname = _get_text(ws_e,u'name')
             cells = []
-            for cell_e in ws_e.find('cells').getiterator():
-                if cell_e.tag == 'codecell':
-                    input = _get_text(cell_e,'input')
-                    prompt_number = _get_int(cell_e,'prompt_number')
-                    collapsed = _get_bool(cell_e,'collapsed')
-                    language = _get_text(cell_e,'language')
+            for cell_e in ws_e.find(u'cells').getiterator():
+                if cell_e.tag == u'codecell':
+                    input = _get_text(cell_e,u'input')
+                    prompt_number = _get_int(cell_e,u'prompt_number')
+                    collapsed = _get_bool(cell_e,u'collapsed')
+                    language = _get_text(cell_e,u'language')
                     outputs = []
-                    for output_e in cell_e.find('outputs').getiterator('output'):
-                        out_prompt_number = _get_int(output_e,'prompt_number')
-                        output_type = _get_text(output_e,'output_type')
-                        output_text = _get_text(output_e,'text')
-                        output_png = _get_binary(output_e,'png')
-                        output_jpeg = _get_binary(output_e,'jpeg')
-                        output_svg = _get_text(output_e,'svg')
-                        output_html = _get_text(output_e,'html')
-                        output_latex = _get_text(output_e,'latex')
-                        output_json = _get_text(output_e,'json')
-                        output_javascript = _get_text(output_e,'javascript')
+                    for output_e in cell_e.find(u'outputs').getiterator(u'output'):
+                        output_type = _get_text(output_e,u'output_type')
+                        output_text = _get_text(output_e,u'text')
+                        output_png = _get_binary(output_e,u'png')
+                        output_jpeg = _get_binary(output_e,u'jpeg')
+                        output_svg = _get_text(output_e,u'svg')
+                        output_html = _get_text(output_e,u'html')
+                        output_latex = _get_text(output_e,u'latex')
+                        output_json = _get_text(output_e,u'json')
+                        output_javascript = _get_text(output_e,u'javascript')
+
+                        out_prompt_number = _get_int(output_e,u'prompt_number')
+                        etype = _get_text(output_e,u'etype')
+                        evalue = _get_text(output_e,u'evalue')
+                        traceback = []
+                        traceback_e = output_e.find(u'traceback')
+                        if traceback_e is not None:
+                            for frame_e in traceback_e.getiterator(u'frame'):
+                                traceback.append(frame_e.text)
+                        if len(traceback) == 0:
+                            traceback = None
                         output = new_output(output_type=output_type,output_png=output_png,
                             output_text=output_text, output_svg=output_svg,
                             output_html=output_html, output_latex=output_latex,
                             output_json=output_json, output_javascript=output_javascript,
-                            output_jpeg=output_jpeg, prompt_number=out_prompt_number
+                            output_jpeg=output_jpeg, prompt_number=out_prompt_number,
+                            etype=etype, evalue=evalue, traceback=traceback
                         )
                         outputs.append(output)
                     cc = new_code_cell(input=input,prompt_number=prompt_number,
                                        language=language,outputs=outputs,collapsed=collapsed)
                     cells.append(cc)
-                if cell_e.tag == 'htmlcell':
-                    source = _get_text(cell_e,'source')
-                    rendered = _get_text(cell_e,'rendered')
+                if cell_e.tag == u'htmlcell':
+                    source = _get_text(cell_e,u'source')
+                    rendered = _get_text(cell_e,u'rendered')
                     cells.append(new_text_cell(u'html', source=source, rendered=rendered))
-                if cell_e.tag == 'markdowncell':
-                    source = _get_text(cell_e,'source')
-                    rendered = _get_text(cell_e,'rendered')
+                if cell_e.tag == u'markdowncell':
+                    source = _get_text(cell_e,u'source')
+                    rendered = _get_text(cell_e,u'rendered')
                     cells.append(new_text_cell(u'markdown', source=source, rendered=rendered))
             ws = new_worksheet(name=wsname,cells=cells)
             worksheets.append(ws)
@@ -149,49 +160,56 @@ class XMLReader(NotebookReader):
 class XMLWriter(NotebookWriter):
 
     def writes(self, nb, **kwargs):
-        nb_e = ET.Element('notebook')
-        _set_text(nb,'name',nb_e,'name')
-        _set_text(nb,'id',nb_e,'id')
-        _set_text(nb,'author',nb_e,'author')
-        _set_text(nb,'email',nb_e,'email')
-        _set_text(nb,'license',nb_e,'license')
-        _set_text(nb,'created',nb_e,'created')
-        _set_text(nb,'saved',nb_e,'saved')
-        _set_int(nb,'nbformat',nb_e,'nbformat')
-        wss_e = ET.SubElement(nb_e,'worksheets')
+        nb_e = ET.Element(u'notebook')
+        _set_text(nb,u'name',nb_e,u'name')
+        _set_text(nb,u'id',nb_e,u'id')
+        _set_text(nb,u'author',nb_e,u'author')
+        _set_text(nb,u'email',nb_e,u'email')
+        _set_text(nb,u'license',nb_e,u'license')
+        _set_text(nb,u'created',nb_e,u'created')
+        _set_text(nb,u'saved',nb_e,u'saved')
+        _set_int(nb,u'nbformat',nb_e,u'nbformat')
+        wss_e = ET.SubElement(nb_e,u'worksheets')
         for ws in nb.worksheets:
-            ws_e = ET.SubElement(wss_e, 'worksheet')
-            _set_text(ws,'name',ws_e,'name')
-            cells_e = ET.SubElement(ws_e,'cells')
+            ws_e = ET.SubElement(wss_e, u'worksheet')
+            _set_text(ws,u'name',ws_e,u'name')
+            cells_e = ET.SubElement(ws_e,u'cells')
             for cell in ws.cells:
                 cell_type = cell.cell_type
-                if cell_type == 'code':
-                    cell_e = ET.SubElement(cells_e, 'codecell')
-                    _set_text(cell,'input',cell_e,'input')
-                    _set_text(cell,'language',cell_e,'language')
-                    _set_int(cell,'prompt_number',cell_e,'prompt_number')
-                    _set_bool(cell,'collapsed',cell_e,'collapsed')
-                    outputs_e = ET.SubElement(cell_e, 'outputs')
+                if cell_type == u'code':
+                    cell_e = ET.SubElement(cells_e, u'codecell')
+                    _set_text(cell,u'input',cell_e,u'input')
+                    _set_text(cell,u'language',cell_e,u'language')
+                    _set_int(cell,u'prompt_number',cell_e,u'prompt_number')
+                    _set_bool(cell,u'collapsed',cell_e,u'collapsed')
+                    outputs_e = ET.SubElement(cell_e, u'outputs')
                     for output in cell.outputs:
-                        output_e = ET.SubElement(outputs_e, 'output')
-                        _set_int(output,'prompt_number',output_e,'prompt_number')
-                        _set_text(output,'output_type',output_e,'output_type')
-                        _set_text(output,'text',output_e,'text')
-                        _set_binary(output,'png',output_e,'png')
-                        _set_binary(output,'jpeg',output_e,'jpeg')
-                        _set_text(output,'html',output_e,'html')
-                        _set_text(output,'svg',output_e,'svg')
-                        _set_text(output,'latex',output_e,'latex')
-                        _set_text(output,'json',output_e,'json')
-                        _set_text(output,'javascript',output_e,'javascript')
-                elif cell_type == 'html':
-                    cell_e = ET.SubElement(cells_e, 'htmlcell')
-                    _set_text(cell,'source',cell_e,'source')
-                    _set_text(cell,'rendered',cell_e,'rendered')
-                elif cell_type == 'markdown':
-                    cell_e = ET.SubElement(cells_e, 'markdowncell')
-                    _set_text(cell,'source',cell_e,'source')
-                    _set_text(cell,'rendered',cell_e,'rendered')
+                        output_e = ET.SubElement(outputs_e, u'output')
+                        _set_text(output,u'output_type',output_e,u'output_type')
+                        _set_text(output,u'text',output_e,u'text')
+                        _set_binary(output,u'png',output_e,u'png')
+                        _set_binary(output,u'jpeg',output_e,u'jpeg')
+                        _set_text(output,u'html',output_e,u'html')
+                        _set_text(output,u'svg',output_e,u'svg')
+                        _set_text(output,u'latex',output_e,u'latex')
+                        _set_text(output,u'json',output_e,u'json')
+                        _set_text(output,u'javascript',output_e,u'javascript')
+                        _set_int(output,u'prompt_number',output_e,u'prompt_number')
+                        _set_text(output,u'etype',output_e,u'etype')
+                        _set_text(output,u'evalue',output_e,u'evalue')
+                        if u'traceback' in output:
+                            tb_e = ET.SubElement(output_e, u'traceback')
+                            for frame in output.traceback:
+                                frame_e = ET.SubElement(tb_e, u'frame')
+                                frame_e.text = frame
+                elif cell_type == u'html':
+                    cell_e = ET.SubElement(cells_e, u'htmlcell')
+                    _set_text(cell,u'source',cell_e,u'source')
+                    _set_text(cell,u'rendered',cell_e,u'rendered')
+                elif cell_type == u'markdown':
+                    cell_e = ET.SubElement(cells_e, u'markdowncell')
+                    _set_text(cell,u'source',cell_e,u'source')
+                    _set_text(cell,u'rendered',cell_e,u'rendered')
 
         indent(nb_e)
         txt = ET.tostring(nb_e, encoding="utf-8")
diff --git a/IPython/nbformat/v2/tests/nbexamples.py b/IPython/nbformat/v2/tests/nbexamples.py
index b9ed669..6f7854a 100644
--- a/IPython/nbformat/v2/tests/nbexamples.py
+++ b/IPython/nbformat/v2/tests/nbexamples.py
@@ -56,8 +56,12 @@ ws.cells.append(new_code_cell(
         output_jpeg=b'data',
         output_svg=u'<svg>',
         output_json=u'json data',
-        output_javascript=u'var i=0;',
-        prompt_number=4
+        output_javascript=u'var i=0;'
+    ),new_output(
+        output_type=u'pyerr',
+        etype=u'NameError',
+        evalue=u'NameError was here',
+        traceback=[u'frame 0', u'frame 1', u'frame 2']
     )]
 ))
 
@@ -65,7 +69,7 @@ nb0 = new_notebook(
     name='nb0',
     worksheets=[ws, new_worksheet(name='worksheet2')],
     author='Bart Simpson',
-    email='bsimple@fox.com',
+    email='bsimpson@fox.com',
     saved='ISO8601_goes_here',
     created='ISO8601_goes_here',
     license='BSD'
diff --git a/IPython/nbformat/v2/tests/test_nbbase.py b/IPython/nbformat/v2/tests/test_nbbase.py
index f054165..a263e6a 100644
--- a/IPython/nbformat/v2/tests/test_nbbase.py
+++ b/IPython/nbformat/v2/tests/test_nbbase.py
@@ -27,6 +27,14 @@ class TestCell(TestCase):
         self.assertEquals(cc.outputs[0].prompt_number, 0)
         self.assertEquals(cc.collapsed, True)
 
+    def test_pyerr(self):
+        o = new_output(output_type=u'pyerr', etype=u'NameError',
+            evalue=u'Name not found', traceback=[u'frame 0', u'frame 1', u'frame 2']
+        )
+        self.assertEquals(o.output_type, u'pyerr')
+        self.assertEquals(o.etype, u'NameError')
+        self.assertEquals(o.evalue, u'Name not found')
+        self.assertEquals(o.traceback, [u'frame 0', u'frame 1', u'frame 2'])
 
     def test_empty_html_cell(self):
         tc = new_text_cell(u'html')