diff --git a/IPython/Extensions/ipy_leo.py b/IPython/Extensions/ipy_leo.py
index 546fa4d..9d78021 100644
--- a/IPython/Extensions/ipy_leo.py
+++ b/IPython/Extensions/ipy_leo.py
@@ -373,8 +373,7 @@ def push_ipython_script(node):
         ohist = ip.IP.output_hist 
         hstart = len(ip.IP.input_hist)
         script = node.script()
-        
-        script = g.splitLines(script + '\n')
+                
         ip.user_ns['_p'] = node
         ip.runlines(script)
         ip.user_ns.pop('_p',None)
diff --git a/IPython/ipapi.py b/IPython/ipapi.py
index 307fe8c..de23da0 100644
--- a/IPython/ipapi.py
+++ b/IPython/ipapi.py
@@ -273,16 +273,27 @@ class IPApi:
             """
             res = []
             lines = script.splitlines()
+
             level = 0
             for l in lines:
                 lstripped = l.lstrip()
-                stripped = l.strip()
+                stripped = l.strip()                
                 if not stripped:
                     continue
                 newlevel = len(l) - len(lstripped)
-                if level > 0 and newlevel == 0 and not stripped.endswith(':'):
+                def is_secondary_block_start(s):
+                    if not s.endswith(':'):
+                        return False
+                    if (s.startswith('elif') or 
+                        s.startswith('else') or 
+                        s.startswith('except') or
+                        s.startswith('finally')):
+                        return True
+                        
+                if level > 0 and newlevel == 0 and not is_secondary_block_start(stripped): 
                     # add empty line
                     res.append('')
+                    
                 res.append(l)
                 level = newlevel
             return '\n'.join(res) + '\n'
@@ -292,7 +303,7 @@ class IPApi:
         else:
             script = '\n'.join(lines)
         clean=cleanup_ipy_script(script)
-
+        # print "_ip.runlines() script:\n",clean #dbg
         self.IP.runlines(clean)
     def to_user_ns(self,vars, interactive = True):
         """Inject a group of variables into the IPython user namespace.
diff --git a/doc/examples/leo_bridge_demo.leo b/doc/examples/leo_bridge_demo.leo
index ca4aa17..052a930 100644
--- a/doc/examples/leo_bridge_demo.leo
+++ b/doc/examples/leo_bridge_demo.leo
@@ -3,7 +3,7 @@
 <leo_file>
 <leo_header file_format="2" tnodes="0" max_tnode_index="0" clone_windows="0"/>
 <globals body_outline_ratio="0.307814992026">
-	<global_window_position top="180" left="223" height="627" width="1280"/>
+	<global_window_position top="257" left="131" height="627" width="1280"/>
 	<global_log_window_position top="0" left="0" height="0" width="0"/>
 </globals>
 <preferences/>
@@ -38,18 +38,18 @@
 <v t="vivainio.20080219230342"><vh>slist to leo</vh></v>
 </v>
 </v>
-<v t="vivainio.20080218195413"><vh>Class tests</vh>
+<v t="vivainio.20080218195413" a="E"><vh>Class tests</vh>
 <v t="vivainio.20080218200509"><vh>csvr</vh></v>
 <v t="vivainio.20080218191007"><vh>tempfile</vh></v>
 <v t="vivainio.20080218195413.1"><vh>rfile</vh></v>
 <v t="vivainio.20080219225804"><vh>strlist</vh></v>
 </v>
+<v t="vivainio.20080222201226" a="V"><vh>IPython script push tests</vh></v>
 <v t="vivainio.20080218201219" a="E"><vh>Direct variables</vh>
-<v t="vivainio.20080222201226"><vh>NewHeadline</vh></v>
 <v t="vivainio.20080218201219.2"><vh>bar</vh></v>
 </v>
 <v t="vivainio.20080316144536" a="E"><vh>pylab tests</vh>
-<v t="vivainio.20080316145539.2" a="TV"><vh>Generate testarr</vh></v>
+<v t="vivainio.20080316145539.2"><vh>Generate testarr</vh></v>
 <v t="vivainio.20080316085925"><vh>testarr</vh></v>
 <v t="vivainio.20080316085950"><vh>Call plotter on testarr</vh></v>
 </v>
@@ -128,21 +128,45 @@ def format_slist(obj):
 <t tx="vivainio.20080222193236">?</t>
 <t tx="vivainio.20080222193236.1">@wrap
 @nocolor</t>
-<t tx="vivainio.20080222201226">1+2
+<t tx="vivainio.20080222201226"># test ipython script 'cleanup' with complex blocks
+1+2
 print "hello"
 3+4
 
 def f(x):
     return x.upper()
 
-f('hello world')
 
 if 0:
     print "foo"
 else:
     print "bar"
 
-</t>
+def g():
+    pass
+
+g()
+
+if 1:
+    if 1:
+        print "hello"
+
+        print "world"
+
+if 1:
+    print "hello"
+
+    print "word"
+else:
+    print "foo"
+
+    print "bar"
+    print "baz"
+
+try:
+    raise Exception
+except:
+    print "exc ok"</t>
 <t tx="vivainio.20080222202211"></t>
 <t tx="vivainio.20080222202211.1" ipython="7d71005506636f6f7264737101284b0c4bde747102732e">@cl rfile
 hello