Index: text.c
===================================================================
--- text.c	(revision 51595)
+++ text.c	(working copy)
@@ -2834,7 +2834,7 @@
 
 void txt_indent(Text *text)
 {
-	int len, num;
+	int len, num, curc_old;
 	char *tmp;
 
 	const char *add = "\t";
@@ -2856,6 +2856,8 @@
 		add = tab_to_spaces;
 		indentlen = spaceslen;
 	}
+    
+    curc_old = text->curc;
 
 	num = 0;
 	while (TRUE) {
@@ -2877,7 +2879,8 @@
 		txt_clean_text(text);
 		
 		if (text->curl == text->sell) {
-			text->selc = text->sell->len;
+			text->selc += indentlen;
+			//text->selc = text->sell->len;
 			break;
 		}
 		else {
@@ -2885,7 +2888,8 @@
 			num++;
 		}
 	}
-	text->curc = 0;
+	//text->curc = 0;
+	text->curc = curc_old + indentlen;
 	while (num > 0) {
 		text->curl = text->curl->prev;
 		num--;
@@ -2900,7 +2904,8 @@
 {
 	int num = 0;
 	const char *remove = "\t";
-	int indent = 1;
+	int indentlen = 1;
+    int unindented_first = FALSE;
 	
 	/* hardcoded: TXT_TABSIZE = 4 spaces: */
 	int spaceslen = TXT_TABSIZE;
@@ -2912,25 +2917,27 @@
 	/* insert spaces rather than tabs */
 	if (text->flags & TXT_TABSTOSPACES) {
 		remove = tab_to_spaces;
-		indent = spaceslen;
+		indentlen = spaceslen;
 	}
-
+    
 	while (TRUE) {
-		int i = 0;
+        int i = 0;
 		
-		if (BLI_strncasecmp(text->curl->line, remove, indent) == 0) {
+		if (BLI_strncasecmp(text->curl->line, remove, indentlen) == 0) {
+            if (num == 0) unindented_first = TRUE;
 			while (i < text->curl->len) {
-				text->curl->line[i] = text->curl->line[i + indent];
+				text->curl->line[i] = text->curl->line[i + indentlen];
 				i++;
 			}
-			text->curl->len -= indent;
+			text->curl->len -= indentlen;
 		}
-	
+        
 		txt_make_dirty(text);
 		txt_clean_text(text);
 		
 		if (text->curl == text->sell) {
-			text->selc = text->sell->len;
+			//text->selc = text->sell->len;
+            if (i > 0) text->selc -= indentlen;
 			break;
 		}
 		else {
@@ -2939,7 +2946,10 @@
 		}
 		
 	}
-	text->curc = 0;
+    
+	//text->curc = 0;
+	if (unindented_first) text->curc -= indentlen;
+    
 	while (num > 0) {
 		text->curl = text->curl->prev;
 		num--;