diff --git a/IPython/Release.py b/IPython/Release.py
index 2495e0a..dc075d5 100644
--- a/IPython/Release.py
+++ b/IPython/Release.py
@@ -1,7 +1,7 @@
 # -*- coding: utf-8 -*-
 """Release data for the IPython project.
 
-$Id: Release.py 981 2005-12-30 15:43:43Z fperez $"""
+$Id: Release.py 982 2005-12-30 23:57:07Z fperez $"""
 
 #*****************************************************************************
 #       Copyright (C) 2001-2005 Fernando Perez <fperez@colorado.edu>
@@ -22,9 +22,9 @@ name = 'ipython'
 # because bdist_rpm does not accept dashes (an RPM) convention, and
 # bdist_deb does not accept underscores (a Debian convention).
 
-version = '0.7.0.rc2'
+version = '0.7.0.rc3'
 
-revision = '$Revision: 981 $'
+revision = '$Revision: 982 $'
 
 description = "An enhanced interactive Python shell."
 
diff --git a/IPython/iplib.py b/IPython/iplib.py
index 564a85a..c15a124 100644
--- a/IPython/iplib.py
+++ b/IPython/iplib.py
@@ -6,7 +6,7 @@ Requires Python 2.1 or newer.
 
 This file contains all the classes and helper functions specific to IPython.
 
-$Id: iplib.py 978 2005-12-30 02:37:15Z fperez $
+$Id: iplib.py 982 2005-12-30 23:57:07Z fperez $
 """
 
 #*****************************************************************************
@@ -1598,6 +1598,8 @@ want to merge them back into the new files.""" % locals()
         # interactive loop, since that one is only seen by keyboard input.  We
         # need this done correctly even for code run via runlines (which uses
         # push).
+
+        print 'push line: <%s>' % line  # dbg
         self.autoindent_update(line)
 
         self.buffer.append(line)
@@ -1812,7 +1814,9 @@ want to merge them back into the new files.""" % locals()
                      pre=None,iFun=None,theRest=None):
         """Handle alias input lines. """
 
-        line_out = 'ipalias("%s %s")' % (iFun,esc_quotes(theRest))
+        # pre is needed, because it carries the leading whitespace.  Otherwise
+        # aliases won't work in indented sections.
+        line_out = '%sipalias("%s %s")' % (pre,iFun,esc_quotes(theRest))
         self.log(line_out,continue_prompt)
         return line_out
 
@@ -1828,7 +1832,7 @@ want to merge them back into the new files.""" % locals()
                 return pre
             else:
                 cmd = ("%s %s" % (iFun[1:],theRest))
-                line_out = 'ipsystem(r"""%s"""[:-1])' % (cmd + "_")
+                line_out = '%sipsystem(r"""%s"""[:-1])' % (pre,cmd + "_")
         else: # single-line input
             if line.startswith('!!'):
                 # rewrite iFun/theRest to properly hold the call to %sx and
@@ -1840,7 +1844,7 @@ want to merge them back into the new files.""" % locals()
                                          continue_prompt,pre,iFun,theRest)
             else:
                 cmd=line[1:]
-                line_out = 'ipsystem(r"""%s"""[:-1])' % (cmd +"_")
+                line_out = '%sipsystem(r"""%s"""[:-1])' % (pre,cmd +"_")
         # update cache/log and return
         self.log(line_out,continue_prompt)
         return line_out
diff --git a/doc/ChangeLog b/doc/ChangeLog
index 910302f..4c7ec9a 100644
--- a/doc/ChangeLog
+++ b/doc/ChangeLog
@@ -1,5 +1,9 @@
 2005-12-30  Fernando Perez  <Fernando.Perez@colorado.edu>
 
+	* IPython/iplib.py (handle_shell_escape): fix bug where both
+	aliases and system accesses where broken for indented code (such
+	as loops).
+
 	* IPython/genutils.py (shell): fix small but critical bug for
 	win32 system access.
 
diff --git a/doc/new_design.lyx b/doc/new_design.lyx
index cb4a3a3..6d503c6 100644
--- a/doc/new_design.lyx
+++ b/doc/new_design.lyx
@@ -106,6 +106,19 @@ Things that should be done for the current series, before starting major
 Fix any bugs reported at the online bug tracker.
 \layout Itemize
 
+History bug: I often see that, under certain circumstances, the input history
+ is incorrect.
+ The problem is that so far, I've failed to find a simple way to reproduce
+ it consistently, so I can't easily track it down.
+ It seems to me that it happens when output is generated multiple times
+ for the same input (for i in range(10): i will do it).
+ But even this isn't reliable...
+ Ultimately the right solution for this is to cleanly separate the dataflow
+ for input/output history management; right now that happens all over the
+ place, which makes the code impossible to debug, and almost guaranteed
+ to be buggy in the first place.
+\layout Itemize
+
 
 \series bold 
 Redesign the output traps.