diff --git a/editor/libeditor/html/nsHTMLEditRules.cpp b/editor/libeditor/html/nsHTMLEditRules.cpp
index fad76ceb533d..eb7419cf407c 100644
--- a/editor/libeditor/html/nsHTMLEditRules.cpp
+++ b/editor/libeditor/html/nsHTMLEditRules.cpp
@@ -289,6 +289,31 @@ nsHTMLEditRules::BeforeEdit(PRInt32 action, nsIEditor::EDirection aDirection)
   
   if (!mActionNesting)
   {
+    // remember where our selection was before edit action took place:
+    
+    // get selection
+    nsCOMPtr<nsISelection>selection;
+    nsresult res = mHTMLEditor->GetSelection(getter_AddRefs(selection));
+    if (NS_FAILED(res)) return res;
+  
+    // get the selection start location
+    nsCOMPtr<nsIDOMNode> selNode;
+    PRInt32 selOffset;
+    res = mHTMLEditor->GetStartNodeAndOffset(selection, address_of(selNode), &selOffset);
+    if (NS_FAILED(res)) return res;
+    mRangeItem.startNode = selNode;
+    mRangeItem.startOffset = selOffset;
+
+    // get the selection end location
+    res = mHTMLEditor->GetEndNodeAndOffset(selection, address_of(selNode), &selOffset);
+    if (NS_FAILED(res)) return res;
+    mRangeItem.endNode = selNode;
+    mRangeItem.endOffset = selOffset;
+
+    // register this range with range updater to track this as we perturb the doc
+    (mHTMLEditor->mRangeUpdater).RegisterRangeItem(&mRangeItem);
+
+    // clear out mDocChangeRange and mUtilRange
     nsCOMPtr<nsIDOMNSRange> nsrange;
     if(mDocChangeRange)
     {
@@ -304,6 +329,7 @@ nsHTMLEditRules::BeforeEdit(PRInt32 action, nsIEditor::EDirection aDirection)
         return NS_ERROR_FAILURE;
       nsrange->NSDetach();  // ditto for mUtilRange.  
     }
+    
     // turn off caret
     nsCOMPtr<nsISelectionController> selCon;
     mHTMLEditor->GetSelectionController(getter_AddRefs(selCon));
@@ -331,6 +357,10 @@ nsHTMLEditRules::AfterEdit(PRInt32 action, nsIEditor::EDirection aDirection)
   {
     // do all the tricky stuff
     res = AfterEditInner(action, aDirection);
+
+    // free up selectionState range item
+    (mHTMLEditor->mRangeUpdater).DropRangeItem(&mRangeItem);
+
     // turn on caret
     nsCOMPtr<nsISelectionController> selCon;
     mHTMLEditor->GetSelectionController(getter_AddRefs(selCon));
@@ -417,11 +447,38 @@ nsHTMLEditRules::AfterEditInner(PRInt32 action, nsIEditor::EDirection aDirection
     res = RemoveEmptyNodes();
     if (NS_FAILED(res)) return res;
 
-    // attempt to transform any uneeded nbsp's into spaces after doing deletions
-    if (action == nsEditor::kOpDeleteSelection)
+    // attempt to transform any uneeded nbsp's into spaces after doing various operations
+    if ((action == nsEditor::kOpInsertText) || 
+        (action == nsEditor::kOpInsertIMEText) ||
+        (action == nsEditor::kOpDeleteSelection) ||
+        (action == nsEditor::kOpInsertBreak) || 
+        (action == nsHTMLEditor::kOpHTMLPaste ||
+        (action == nsHTMLEditor::kOpLoadHTML)))
     {
       res = AdjustWhitespace(selection);
       if (NS_FAILED(res)) return res;
+      
+      // also do this for original selection endpoints.  The checks for the remembered
+      // selection endpoints are a performance fidgit.  Otherwise 
+      // nsRangeUpdater::SelAdjDeleteNode() would have to do much more expensive
+      // work (see comment in that routine in nsSelection.cpp)
+      nsCOMPtr<nsIDOMElement> bodyNode; 
+      PRInt32 unused;
+      res = mHTMLEditor->GetRootElement(getter_AddRefs(bodyNode));
+      if (NS_FAILED(res)) return res;
+      if (nsHTMLEditUtils::IsDescendantOf(mRangeItem.startNode, bodyNode, &unused))
+      {
+        nsWSRunObject(mHTMLEditor, mRangeItem.startNode, mRangeItem.startOffset).AdjustWhitespace();
+      }
+      // we only need to handle old selection endpoint if it was different from start
+      if ((mRangeItem.startNode != mRangeItem.endNode) || (mRangeItem.startOffset != mRangeItem.endOffset))
+      {
+        if (nsHTMLEditUtils::IsDescendantOf(mRangeItem.endNode, bodyNode, &unused))
+        {
+          nsWSRunObject(mHTMLEditor, mRangeItem.endNode, mRangeItem.endOffset).AdjustWhitespace();
+        }
+      }
+     
     }
     
     // if we created a new block, make sure selection lands in it
diff --git a/editor/libeditor/html/nsHTMLEditRules.h b/editor/libeditor/html/nsHTMLEditRules.h
index 0ba76506e2d8..d492882b1a94 100644
--- a/editor/libeditor/html/nsHTMLEditRules.h
+++ b/editor/libeditor/html/nsHTMLEditRules.h
@@ -264,7 +264,7 @@ protected:
   nsCOMPtr<nsIDOMRange>   mUtilRange;
   PRUint32                mJoinOffset;  // need to remember an int across willJoin/didJoin...
   nsCOMPtr<nsIDOMNode>    mNewBlock;
-
+  nsRangeStore            mRangeItem;
 };
 
 nsresult NS_NewHTMLEditRules(nsIEditRules** aInstancePtrResult);
diff --git a/editor/libeditor/html/nsWSRunObject.cpp b/editor/libeditor/html/nsWSRunObject.cpp
index 8bba0fab4527..6473cfc4f68b 100644
--- a/editor/libeditor/html/nsWSRunObject.cpp
+++ b/editor/libeditor/html/nsWSRunObject.cpp
@@ -1067,6 +1067,7 @@ nsWSRunObject::GetRuns()
       {
         normalRun->mEndNode = mLastNBSPNode;
         normalRun->mEndOffset = mLastNBSPOffset+1;
+        normalRun->mRightType = eTrailingWS;
         
         // set up next run
         WSFragment *lastRun = new WSFragment();
@@ -1097,6 +1098,13 @@ nsWSRunObject::GetRuns()
     // will point to it, even though in general start/end points not
     // guaranteed to be in text nodes.
     if ((mLastNBSPNode == mEndNode) && (mLastNBSPOffset == (mEndOffset-1)))
+    {
+      mStartRun->mRightType = mEndReason;
+      mStartRun->mEndNode   = mEndNode;
+      mStartRun->mEndOffset = mEndOffset;
+      mEndRun = mStartRun;
+    }
+    else
     {
       // set up next run
       WSFragment *lastRun = new WSFragment();
@@ -1109,13 +1117,7 @@ nsWSRunObject::GetRuns()
       lastRun->mRightType = mEndReason;
       mEndRun = lastRun;
       mStartRun->mRight = lastRun;
-    }
-    else
-    {
-      mStartRun->mRightType = mEndReason;
-      mStartRun->mEndNode   = mEndNode;
-      mStartRun->mEndOffset = mEndOffset;
-      mEndRun = mStartRun;
+      mStartRun->mRightType = eTrailingWS;
     }
   }
   
@@ -2034,6 +2036,7 @@ nsWSRunObject::CheckTrailingNBSPOfRun(WSFragment *aRun)
   if (!aRun) return NS_ERROR_NULL_POINTER;
   WSPoint thePoint;
   PRBool leftCheck = PR_FALSE;
+  PRBool spaceNBSP = PR_FALSE;
   PRBool rightCheck = PR_FALSE;
   
   // confirm run is normalWS
@@ -2049,15 +2052,47 @@ nsWSRunObject::CheckTrailingNBSPOfRun(WSFragment *aRun)
     if (NS_SUCCEEDED(res) && prevPoint.mTextNode)
     {
       if (!nsCRT::IsAsciiSpace(prevPoint.mChar)) leftCheck = PR_TRUE;
+      else spaceNBSP = PR_TRUE;
     }
     else if (aRun->mLeftType == eText)    leftCheck = PR_TRUE;
     else if (aRun->mLeftType == eSpecial) leftCheck = PR_TRUE;
-    if (leftCheck)
+    if (leftCheck || spaceNBSP)
     {
       // now check that what is to the right of it is compatible with replacing nbsp with space
       if (aRun->mRightType == eText)    rightCheck = PR_TRUE;
       if (aRun->mRightType == eSpecial) rightCheck = PR_TRUE;
       if (aRun->mRightType == eBreak)   rightCheck = PR_TRUE;
+      if (aRun->mRightType & eBlock)
+      {
+        // we are at a block boundary.  Insert a <br>.  Why?  Well, first note that
+        // the br will have no visible effect since it is up against a block boundary.
+        // |foo<br><p>bar|  renders like |foo<p>bar| and similarly
+        // |<p>foo<br></p>bar| renders like |<p>foo</p>bar|.  What this <br> addition
+        // gets us is the ability to convert a trailing nbsp to a space.  Consider:
+        // |<body>foo. '</body>|, where ' represents selection.  User types space attempting
+        // to put 2 spaces after the end of their sentence.  We used to do this as:
+        // |<body>foo. &nbsp</body>|  This caused problems with soft wrapping: the nbsp
+        // would wrap to the next line, which looked attrocious.  If you try to do:
+        // |<body>foo.&nbsp </body>| instead, the trailing space is invisible because it 
+        // is against a block boundary.  If you do: |<body>foo.&nbsp&nbsp</body>| then
+        // you get an even uglier soft wrapping problem, where foo is on one line until
+        // you type the final space, and then "foo  " jumps down to the next line.  Ugh.
+        // The best way I can find out of this is to throw in a harmless <br>
+        // here, which allows us to do: |<body>foo.&nbsp <br></body>|, which doesn't
+        // cause foo to jump lines, doesn't cause spaces to show up at the beginning of 
+        // soft wrapped lines, and lets the user see 2 spaces when they type 2 spaces.
+        
+        nsCOMPtr<nsIDOMNode> brNode;
+        res = mHTMLEditor->CreateBR(aRun->mEndNode, aRun->mEndOffset, address_of(brNode));
+        NS_ENSURE_SUCCESS(res, res);
+        
+        // refresh thePoint, prevPoint
+        res = GetCharBefore(aRun->mEndNode, aRun->mEndOffset, &thePoint);
+        NS_ENSURE_SUCCESS(res, res);
+        res = GetCharBefore(thePoint, &prevPoint);
+        NS_ENSURE_SUCCESS(res, res);
+        rightCheck = PR_TRUE;
+      }
     }
     if (leftCheck && rightCheck)
     {
@@ -2076,6 +2111,32 @@ nsWSRunObject::CheckTrailingNBSPOfRun(WSFragment *aRun)
       res = DeleteChars(delNode, thePoint.mOffset+1, delNode, thePoint.mOffset+2);
       NS_ENSURE_SUCCESS(res, res);
     }
+    else if (!mPRE && spaceNBSP && rightCheck)  // don't mess with this preformatted for now.
+    {
+      // we have a run of ascii whitespace (which will render as one space)
+      // followed by an nbsp (which is at the end of the whitespace run).  Let's
+      // switch their order.  This will insure that if someone types two spaces
+      // after a sentence, and the editor softwraps at this point, the spaces wont
+      // be split across lines, which looks ugly and is bad for the moose.
+      
+      nsCOMPtr<nsIDOMNode> startNode, endNode, thenode(do_QueryInterface(prevPoint.mTextNode));
+      PRInt32 startOffset, endOffset;
+      res = GetAsciiWSBounds(eBoth, thenode, prevPoint.mOffset+1, address_of(startNode), 
+                           &startOffset, address_of(endNode), &endOffset);
+      NS_ENSURE_SUCCESS(res, res);
+      
+      //  delete that nbsp
+      nsCOMPtr<nsIDOMNode> delNode(do_QueryInterface(thePoint.mTextNode));
+      res = DeleteChars(delNode, thePoint.mOffset, delNode, thePoint.mOffset+1);
+      NS_ENSURE_SUCCESS(res, res);
+      
+      // finally, insert that nbsp before the ascii ws run
+      nsAutoTxnsConserveSelection dontSpazMySelection(mHTMLEditor);
+      nsAutoString nbspStr(nbsp);
+      nsCOMPtr<nsIDOMCharacterData> textNode(do_QueryInterface(startNode));
+      res = mHTMLEditor->InsertTextIntoTextNodeImpl(nbspStr, textNode, startOffset, PR_TRUE);
+      NS_ENSURE_SUCCESS(res, res);
+    }
   }
   return NS_OK;
 }