diff --git a/IPython/iplib.py b/IPython/iplib.py
index ca749b0..59698f4 100644
--- a/IPython/iplib.py
+++ b/IPython/iplib.py
@@ -6,7 +6,7 @@ Requires Python 2.3 or newer.
 
 This file contains all the classes and helper functions specific to IPython.
 
-$Id: iplib.py 1879 2006-11-04 00:34:34Z fptest $
+$Id: iplib.py 1885 2006-11-08 01:07:28Z fperez $
 """
 
 #*****************************************************************************
@@ -1844,6 +1844,13 @@ want to merge them back into the new files.""" % locals()
         The return value can be used to decide whether to use sys.ps1 or
         sys.ps2 to prompt the next line."""
 
+        # if the source code has leading blanks, add 'if 1:\n' to it
+        # this allows execution of indented pasted code. It is tempting
+        # to add '\n' at the end of source to run commands like ' a=1'
+        # directly, but this fails for more complicated scenarios
+        if source[:1] in [' ', '\t']:
+            source = 'if 1:\n%s' % source
+
         try:
             code = self.compile(source,filename,symbol)
         except (OverflowError, SyntaxError, ValueError):
@@ -2419,13 +2426,37 @@ want to merge them back into the new files.""" % locals()
             self.exit_now = True
 
     def safe_execfile(self,fname,*where,**kw):
+        """A safe version of the builtin execfile().
+
+        This version will never throw an exception, and knows how to handle
+        ipython logs as well."""
+
+        def syspath_cleanup():
+            """Internal cleanup routine for sys.path."""
+            if add_dname:
+                try:
+                    sys.path.remove(dname)
+                except ValueError:
+                    # For some reason the user has already removed it, ignore.
+                    pass
+        
         fname = os.path.expanduser(fname)
 
+        # Find things also in current directory.  This is needed to mimic the
+        # behavior of running a script from the system command line, where
+        # Python inserts the script's directory into sys.path
+        dname = os.path.dirname(os.path.abspath(fname))
+        add_dname = False
+        if dname not in sys.path:
+            sys.path.insert(0,dname)
+            add_dname = True
+
         try:
             xfile = open(fname)
         except:
             print >> Term.cerr, \
                   'Could not open file <%s> for safe execution.' % fname
+            syspath_cleanup()
             return None
 
         kw.setdefault('islog',0)
@@ -2512,4 +2543,6 @@ want to merge them back into the new files.""" % locals()
                 self.showtraceback()
                 warn('Failure executing file: <%s>' % fname)
 
+        syspath_cleanup()
+
 #************************* end of file <iplib.py> *****************************
diff --git a/doc/ChangeLog b/doc/ChangeLog
index 35a9bb4..a77631a 100644
--- a/doc/ChangeLog
+++ b/doc/ChangeLog
@@ -1,3 +1,12 @@
+2006-11-07  Fernando Perez  <Fernando.Perez@colorado.edu>
+
+	* IPython/iplib.py (runsource): Prepend an 'if 1:' to the user
+	input if it starts with whitespace.  This allows you to paste
+	indented input from any editor without manually having to type in
+	the 'if 1:', which is conveninent when working interactively.
+	Slightly modifed version of a patch by Bo Peng
+	<bpeng-AT-rice.edu>.
+
 2006-11-03  Fernando Perez  <Fernando.Perez@colorado.edu>
 
 	* IPython/irunner.py (main): modified irunner so it automatically
diff --git a/ipython.py b/ipython.py
index a6ab6ea..a4933b6 100755
--- a/ipython.py
+++ b/ipython.py
@@ -7,12 +7,6 @@ in './scripts' directory. This file is here (ipython source root directory)
 to facilitate non-root 'zero-installation' (just copy the source tree
 somewhere and run ipython.py) and development. """
 
-# Start by cleaning up sys.path: Python automatically inserts the script's
-# base directory into sys.path, at the front.  This can lead to unpleasant
-# surprises.
-import sys
-sys.path.pop(0)
-
 import IPython
 
 IPython.Shell.start().mainloop()
diff --git a/scripts/ipython b/scripts/ipython
index 5ec4557..b365678 100755
--- a/scripts/ipython
+++ b/scripts/ipython
@@ -23,11 +23,5 @@ this mode, there is no way to pass IPython any command-line options, as those
 are trapped first by Python itself.
 """
 
-# Start by cleaning up sys.path: Python automatically inserts the script's
-# base directory into sys.path, at the front.  This can lead to unpleasant
-# surprises.
-import sys
-sys.path.pop(0)
-
 import IPython
 IPython.Shell.start().mainloop()