BUG: multi-line, multi-block cells were broken. Test added.

Closes gh-314.

IPython/core/interactiveshell.py

@@ -2094,7 +2094,6 b' class InteractiveShell(Configurable, Magic):'
         # Store the untransformed code
         raw_cell = cell
         
-        
         # Code transformation and execution must take place with our
         # modifications to builtins.
         with self.builtin_trap:
@@ -2128,7 +2127,6 b' class InteractiveShell(Configurable, Magic):'
             # All user code execution should take place with our
             # modified displayhook.
             with self.display_trap:
-            
                 # Single-block input should behave like an interactive prompt
                 if len(blocks) == 1:
                     out = self.run_source(blocks[0])
@@ -2164,7 +2162,7 b' class InteractiveShell(Configurable, Magic):'
                 else:
                     # Run the whole cell as one entity, storing both raw and
                     # processed input in history
-                    self.run_source(ipy_cell, symbol='exec')
+                    self.run_source(cell, symbol='exec')
 
         # Write output to the database. Does nothing unless
         # history output logging is enabled.

IPython/core/tests/test_interactiveshell.py

@@ -41,3 +41,17 b' class InteractiveShellTestCase(unittest.TestCase):'
         cell of input. Yes, I did overlook that."""
         ip = get_ipython()
         ip.run_cell('')
+
+    def test_run_cell_multilne(self):
+        """Multi-block, multi-line cells must execute correctly.
+        """
+        ip = get_ipython()
+        src = '\n'.join(["x=1",
+                         "y=2",
+                         "if 1:",
+                         "    x += 1",
+                         "    y += 1",])
+        ip.run_cell(src)
+        self.assertEquals(ip.user_ns['x'], 2)
+        self.assertEquals(ip.user_ns['y'], 3)
+