diff --git a/nbconvert/filters/markdown.py b/nbconvert/filters/markdown.py
index ebe49e5..7265d57 100755
--- a/nbconvert/filters/markdown.py
+++ b/nbconvert/filters/markdown.py
@@ -48,7 +48,7 @@ def markdown2latex(source):
         print(err, file=sys.stderr)
     #print('*'*20+'\n', out, '\n'+'*'*20)  # dbg
     
-    return unicode(out, 'utf-8')
+    return unicode(out, 'utf-8')[:-1]
 
 
 def markdown2rst(source):
diff --git a/nbconvert/templates/latex/base.tplx b/nbconvert/templates/latex/base.tplx
index a97579f..1a1e3aa 100644
--- a/nbconvert/templates/latex/base.tplx
+++ b/nbconvert/templates/latex/base.tplx
@@ -86,7 +86,7 @@ it introduces a new line
 ((* endblock markdowncell *))
 
 ((* block headingcell scoped *))
-\section{((( cell.source)))}
+\section{((( cell.source | markdown2latex)))}
 ((* endblock headingcell *))
 
 ((* block rawcell scoped *))
diff --git a/nbconvert/templates/latex/sphinx_base.tplx b/nbconvert/templates/latex/sphinx_base.tplx
index 19feeea..f79a84a 100644
--- a/nbconvert/templates/latex/sphinx_base.tplx
+++ b/nbconvert/templates/latex/sphinx_base.tplx
@@ -209,7 +209,7 @@ Note: For best display, use latex syntax highlighting. =))
     ((= It's important to make sure that underscores (which tend to be common
     in IPYNB file titles) do not make their way into latex.  Sometimes this
     causes latex to barf. =))
-    ((*- endif -*)){((( escape_underscores(cell.source | markdown2latex ) )))}
+    ((*- endif -*)){((( cell.source | markdown2latex )))}
 ((*- endblock headingcell *))
 
 %==============================================================================
@@ -429,11 +429,3 @@ Note: For best display, use latex syntax highlighting. =))
     \par
     \end{center}
 ((*- endmacro *))
-
-% Name: escape_underscores
-% Purpose: Underscores cause a problem in latex.  It's important that we 
-%          escape any underscores that appear.
-((* macro escape_underscores(text) -*))
-    ((*- set text = text|replace("_","\\_") -*))
-    ((( text )))
-((*- endmacro *))
\ No newline at end of file