diff -u ORIG/EditorWindow.py ./EditorWindow.py
--- ORIG/EditorWindow.py	2005-05-11 23:47:29.358329002 -0400
+++ ./EditorWindow.py	2005-05-12 00:33:56.385420821 -0400
@@ -1119,6 +1119,7 @@
                 if bod is not None or startat == 1:
                     break
             y.set_lo(bod or 0)
+
             c = y.get_continuation_type()
             if c != PyParse.C_NONE:
                 # The current stmt hasn't ended yet.
@@ -1149,6 +1150,8 @@
             # indentation of initial line of closest preceding
             # interesting stmt.
             indent = y.get_base_indent_string()
+            if self.context_use_ps1 and y.is_first_line_continuation():
+                indent = ' '*len(sys.ps1.split('\n')[-1]) + indent
             text.insert("insert", indent)
             if y.is_block_opener():
                 self.smart_indent_event(event)
diff -u ORIG/PyParse.py ./PyParse.py
--- ORIG/PyParse.py	2002-09-16 23:55:13.000000000 -0400
+++ ./PyParse.py	2005-05-12 00:28:47.455126030 -0400
@@ -360,6 +360,8 @@
     #         comment
     #     self.lastopenbracketpos
     #         if continuation is C_BRACKET, index of last open bracket
+    #     self.isfirstlinecont
+    #         if this is a continuation of the first line entered
 
     def _study2(self):
         if self.study_level >= 2:
@@ -369,6 +371,7 @@
 
         # Set p and q to slice indices of last interesting stmt.
         str, goodlines = self.str, self.goodlines
+        self.isfirstlinecont = str.count('\n') == 1
         i = len(goodlines) - 1
         p = len(str)    # index of newest line
         while i:
@@ -576,6 +579,13 @@
         self._study2()
         return _closere(self.str, self.stmt_start) is not None
 
+    # Is this a continuation of the first line after a prompt?
+
+    def is_first_line_continuation(self):
+        self._study2()
+        return self.isfirstlinecont
+        return len(self.goodlines) == 2
+
     # index of last open bracket ({[, or None if none
     lastopenbracketpos = None
 
diff -u ORIG/PyShell.py ./PyShell.py
--- ORIG/PyShell.py	2005-05-11 23:47:29.360328618 -0400
+++ ./PyShell.py	2005-05-12 00:36:05.858407444 -0400
@@ -796,9 +796,6 @@
         __builtin__.quit = __builtin__.exit = "To exit, type Ctrl-D."
         #
 ##        self.config(usetabs=1, indentwidth=8, context_use_ps1=1)
-        self.usetabs = True
-        # indentwidth must be 8 when using tabs.  See note in EditorWindow:
-        self.indentwidth = 8
         self.context_use_ps1 = True
         #
         text = self.text
@@ -1187,6 +1184,8 @@
         source = self.text.get("iomark", "end-1c")
         if self.history:
             self.history.history_store(source)
+        if self.text.get("end-1c linestart", "end").strip() == "":
+            self.text.delete("end-1c linestart", "end")
         if self.text.get("end-2c") != "\n":
             self.text.insert("end-1c", "\n")
         self.text.mark_set("iomark", "end-1c")