diff --git a/examples/firepad.js b/examples/firepad.js
index f494b3470..999caa8db 100644
--- a/examples/firepad.js
+++ b/examples/firepad.js
@@ -5868,4 +5868,4 @@ firepad.Firepad.Headless = firepad.Headless;
 firepad.Firepad.RichTextCodeMirrorAdapter = firepad.RichTextCodeMirrorAdapter;
 firepad.Firepad.ACEAdapter = firepad.ACEAdapter;
 
-return firepad.Firepad; }, this);
\ No newline at end of file
+return firepad.Firepad; }, this);
diff --git a/lib/firepad.js b/lib/firepad.js
index 2b887a6f1..7d9b36b32 100644
--- a/lib/firepad.js
+++ b/lib/firepad.js
@@ -235,6 +235,32 @@ firepad.Firepad = (function(global) {
     return this.getHtmlFromRange(null, null);
   };
 
+  Firepad.prototype.selectionHasAttributes = function() {
+    var startPos = this.codeMirror_.getCursor('start'), endPos = this.codeMirror_.getCursor('end');
+    var startIndex = this.codeMirror_.indexFromPos(startPos), endIndex = this.codeMirror_.indexFromPos(endPos);
+    return this.rangeHasAttributes(startIndex, endIndex);
+  };
+
+  Firepad.prototype.rangeHasAttributes = function(start, end) {
+    this.assertReady_('rangeHasAttributes');
+    var doc = (start != null && end != null) ?
+      this.getOperationForSpan(start, end) :
+      this.getOperationForSpan(0, this.codeMirror_.getValue().length);
+
+    var op;
+    for (var i = 0; i < doc.ops.length; i++) { 
+      op = doc.ops[i];   
+      for (var prop in op.attributes) {
+        if (!op.attributes.hasOwnProperty(prop)) continue;
+        if (prop==ATTR.LINE_SENTINEL) continue;
+        for(var validAttr in firepad.AttributeConstants) if (firepad.AttributeConstants[validAttr] === prop) return true; // found one
+      }
+    }
+    
+    return false;
+  };
+
+
   Firepad.prototype.getHtmlFromSelection = function() {
     var startPos = this.codeMirror_.getCursor('start'), endPos = this.codeMirror_.getCursor('end');
     var startIndex = this.codeMirror_.indexFromPos(startPos), endIndex = this.codeMirror_.indexFromPos(endPos);
@@ -250,7 +276,7 @@ firepad.Firepad = (function(global) {
   };
 
   Firepad.prototype.insertHtml = function (index, html) {
-    var lines = firepad.ParseHtml(html, this.entityManager_);
+    var lines = firepad.ParseHtml(html, this.entityManager_, this.codeMirror_);
     this.insertText(index, lines);
   };
 
@@ -259,7 +285,7 @@ firepad.Firepad = (function(global) {
   };
 
   Firepad.prototype.setHtml = function (html) {
-    var lines = firepad.ParseHtml(html, this.entityManager_);
+    var lines = firepad.ParseHtml(html, this.entityManager_, this.codeMirror_);
     this.setText(lines);
   };
 
diff --git a/lib/headless.js b/lib/headless.js
index b93206a09..9de598159 100644
--- a/lib/headless.js
+++ b/lib/headless.js
@@ -110,7 +110,7 @@ firepad.Headless = (function() {
     }
 
     self.initializeFakeDom(function() {
-      var textPieces = ParseHtml(html, self.entityManager_);
+      var textPieces = ParseHtml(html, self.entityManager_, self.codeMirror_);
       var inserts    = firepad.textPiecesToInserts(true, textPieces);
       var op         = new TextOperation();
 
diff --git a/lib/parse-html.js b/lib/parse-html.js
index 07ebb29d8..c62c3141d 100644
--- a/lib/parse-html.js
+++ b/lib/parse-html.js
@@ -55,14 +55,14 @@ firepad.ParseHtml = (function () {
   }
 
   ParseOutput.prototype.newlineIfNonEmpty = function(state) {
-    this.cleanLine_();
+    this.cleanLine_(true);
     if (this.currentLine.length > 0) {
       this.newline(state);
     }
   };
 
   ParseOutput.prototype.newlineIfNonEmptyOrListItem = function(state) {
-    this.cleanLine_();
+    this.cleanLine_(true);
     if (this.currentLine.length > 0 || this.currentLineListItemType !== null) {
       this.newline(state);
     }
@@ -84,15 +84,17 @@ firepad.ParseHtml = (function () {
     this.currentLineListItemType = type;
   };
 
-  ParseOutput.prototype.cleanLine_ = function() {
+  ParseOutput.prototype.cleanLine_ = function(ignoreNbsps) {
     // Kinda' a hack, but we remove leading and trailing spaces (since these aren't significant in html) and
     // replaces nbsp's with normal spaces.
     if (this.currentLine.length > 0) {
       var last = this.currentLine.length - 1;
       this.currentLine[0].text = this.currentLine[0].text.replace(/^ +/, '');
       this.currentLine[last].text = this.currentLine[last].text.replace(/ +$/g, '');
-      for(var i = 0; i < this.currentLine.length; i++) {
-        this.currentLine[i].text = this.currentLine[i].text.replace(/\u00a0/g, ' ');
+      if (!ignoreNbsps) {
+        for(var i = 0; i < this.currentLine.length; i++) {
+          this.currentLine[i].text = this.currentLine[i].text.replace(/\u00a0/g, ' ');
+        }
       }
     }
     // If after stripping trailing whitespace, there's nothing left, clear currentLine out.
@@ -101,14 +103,18 @@ firepad.ParseHtml = (function () {
     }
   };
 
-  var entityManager_;
-  function parseHtml(html, entityManager) {
+  var entityManager_, codeMirror_;
+  function parseHtml(html, entityManager, codeMirror) {
+    html=html.replace(/(\r\n|\n|\r)?<html>(\r\n|\n|\r)?<body>(\r\n|\n|\r)?/, ''); // remove <html><body>
+    html=html.replace(/(\r\n|\n|\r)?<\/body>(\r\n|\n|\r)?<\/html>(\r\n|\n|\r)?/, ''); // remove </body></html>
+    
     // Create DIV with HTML (as a convenient way to parse it).
     var div = (firepad.document || document).createElement('div');
     div.innerHTML = html;
 
     // HACK until I refactor this.
     entityManager_ = entityManager;
+    codeMirror_ = codeMirror;
 
     var output = new ParseOutput();
     var state = new ParseState();
@@ -138,8 +144,8 @@ firepad.ParseHtml = (function () {
 
     switch (node.nodeType) {
       case Node.TEXT_NODE:
-        // This probably isn't exactly right, but mostly works...
-        var text = node.nodeValue.replace(/[ \n\t]+/g, ' ');
+        // replace spaces with &nbsp; so they can withstand cleanLine_
+        var text = node.nodeValue.replace(/ /g, '\u00a0');
         output.currentLine.push(firepad.Text(text, state.textFormatting));
         break;
       case Node.ELEMENT_NODE:
@@ -240,7 +246,29 @@ firepad.ParseHtml = (function () {
     }
   }
 
+  function styleEqual(s1,s2) {
+    s1=s1.toLowerCase(); // lower
+    s1=s1.split(' ').join(''); // remove spaces
+    s1=s1.lastIndexOf(";") == s1.length - 1 ?  s1.substring(0,  s1.length -1 ) : s1; // remove trailing ;
+    s2=s2.toLowerCase(); // lower
+    s2=s2.split(' ').join(''); // remove spaces
+    s2=s2.lastIndexOf(";") == s2.length - 1 ?  s2.substring(0,  s2.length -1 ) : s2; // remove trailing ;
+    return s1==s2;
+  }
+
   function parseStyle(state, styleString) {
+    if (!this.firepadDefaultStyles) {
+      // caching some default styles needed later
+      var style = window.getComputedStyle(codeMirror_.getWrapperElement());
+      firepadDefaultStyles={
+        fontFamily: style.getPropertyValue('font-family'),
+        fontSize: style.getPropertyValue('font-size'),
+        backgroundColor: style.getPropertyValue('background-color'),
+        color: style.getPropertyValue('color'),
+        textAlign: style.getPropertyValue('text-align')
+      };
+    }
+
     var textFormatting = state.textFormatting;
     var lineFormatting = state.lineFormatting;
     var styles = styleString.split(';');
@@ -265,15 +293,19 @@ firepad.ParseHtml = (function () {
           textFormatting = textFormatting.italic(italic);
           break;
         case 'color':
+          if (styleEqual(val, this.firepadDefaultStyles.color)) break;
           textFormatting = textFormatting.color(val);
           break;
         case 'background-color':
+          if (styleEqual(val, this.firepadDefaultStyles.backgroundColor)) break;
           textFormatting = textFormatting.backgroundColor(val);
           break;
         case 'text-align':
+          if (styleEqual(val, this.firepadDefaultStyles.textAlign)) break;
           lineFormatting = lineFormatting.align(val);
           break;
         case 'font-size':
+          if (styleEqual(val, this.firepadDefaultStyles.fontSize)) break;
           var size = null;
           var allowedValues = ['px','pt','%','em','xx-small','x-small','small','medium','large','x-large','xx-large','smaller','larger'];
           if (firepad.utils.stringEndsWith(val, allowedValues)) {
@@ -287,6 +319,7 @@ firepad.ParseHtml = (function () {
           }
           break;
         case 'font-family':
+          if (styleEqual(val, this.firepadDefaultStyles.fontFamily)) break;
           var font = firepad.utils.trim(val.split(',')[0]); // get first font.
           font = font.replace(/['"]/g, ''); // remove quotes.
           font = font.replace(/\w\S*/g, function(txt){return txt.charAt(0).toUpperCase() + txt.substr(1).toLowerCase() });
diff --git a/lib/rich-text-codemirror.js b/lib/rich-text-codemirror.js
index 38cc64304..0521cf8e9 100644
--- a/lib/rich-text-codemirror.js
+++ b/lib/rich-text-codemirror.js
@@ -36,6 +36,9 @@ firepad.RichTextCodeMirror = (function () {
     bind(this, 'onCodeMirrorChange_');
     bind(this, 'onCursorActivity_');
 
+    bind(this, 'onCodeMirrorCopyCut_');
+    bind(this, 'onCodeMirrorPaste_');
+
     if (parseInt(CodeMirror.version) >= 4) {
       this.codeMirror.on('changes', this.onCodeMirrorChange_);
     } else {
@@ -44,6 +47,10 @@ firepad.RichTextCodeMirror = (function () {
     this.codeMirror.on('beforeChange', this.onCodeMirrorBeforeChange_);
     this.codeMirror.on('cursorActivity', this.onCursorActivity_);
 
+    this.codeMirror.on('copy', this.onCodeMirrorCopyCut_);
+    this.codeMirror.on('cut', this.onCodeMirrorCopyCut_);
+    this.codeMirror.on('paste', this.onCodeMirrorPaste_);
+
     this.changeId_ = 0;
     this.outstandingChanges_ = { };
     this.dirtyLines_ = [];
@@ -59,6 +66,11 @@ firepad.RichTextCodeMirror = (function () {
     this.codeMirror.off('change', this.onCodeMirrorChange_);
     this.codeMirror.off('changes', this.onCodeMirrorChange_);
     this.codeMirror.off('cursorActivity', this.onCursorActivity_);
+
+    this.codeMirror.off('copy', this.onCodeMirrorCopyCut_);
+    this.codeMirror.off('cut', this.onCodeMirrorCopyCut_);
+    this.codeMirror.off('paste', this.onCodeMirrorPaste_);
+
     this.clearAnnotations_();
   };
 
@@ -570,6 +582,38 @@ firepad.RichTextCodeMirror = (function () {
     }
   };
 
+  RichTextCodeMirror.prototype.onCodeMirrorCopyCut_ = function(cm, e) {
+    var ios = /AppleWebKit/.test(navigator.userAgent) && /Mobile\/\w+/.test(navigator.userAgent);
+    if (!e.clipboardData || ios) return; // clipboard ops not supported
+
+    var fp=this.codeMirror.firepad;
+
+    let textVal=this.codeMirror.getSelections().join('\n').replace(new RegExp('[' + LineSentinelCharacter + EntitySentinelCharacter + ']', 'g'), '');  // remove sentinels
+    if (!textVal) return; // something went wrong
+    //utils.log(textVal);
+
+    var htmlVal;
+    if (fp.selectionHasAttributes()) htmlVal=fp.getHtmlFromSelection();
+    //if (htmlVal) utils.log(htmlVal);
+
+    if (e.type == 'cut') cm.replaceSelection('', null, 'cut');      
+    e.clipboardData.clearData();
+    e.clipboardData.setData('text', textVal);
+    if (htmlVal) e.clipboardData.setData('text/html', htmlVal);
+    e.preventDefault()
+  };
+
+  RichTextCodeMirror.prototype.onCodeMirrorPaste_ = function(cm, e) {
+    var html = e.clipboardData ? e.clipboardData.getData('text/html') : null;
+    if (!html) return; // not html or something went wrong, revert to CM paste
+    
+    cm.replaceSelection('');
+    var fp=this.codeMirror.firepad;
+    fp.insertHtmlAtCursor(html);
+    e.preventDefault();
+    //utils.log(html);
+  };
+
   function cmpPos (a, b) {
     return (a.line - b.line) || (a.ch - b.ch);
   }
@@ -1137,7 +1181,7 @@ firepad.RichTextCodeMirror = (function () {
   function bind (obj, method) {
     var fn = obj[method];
     obj[method] = function () {
-      fn.apply(obj, arguments);
+      return fn.apply(obj, arguments);
     };
   }
 
diff --git a/lib/serialize-html.js b/lib/serialize-html.js
index 1840191a2..f0e9202f0 100644
--- a/lib/serialize-html.js
+++ b/lib/serialize-html.js
@@ -168,10 +168,6 @@ firepad.SerializeHtml = (function () {
         op = doc.ops[++i];
       }
 
-      // Replace leading, trailing, and consecutive spaces with nbsp's to make sure they're preserved.
-      text = text.replace(/  +/g, function(str) {
-        return new Array(str.length + 1).join('\u00a0');
-      }).replace(/^ /, '\u00a0').replace(/ $/, '\u00a0');
       if (text.length > 0) {
         emptyLine = false;
       }
@@ -197,7 +193,7 @@ firepad.SerializeHtml = (function () {
       html = TODO_STYLE + html;
     }
 
-    return html;
+    return '<pre>'+html+'</pre>';
   }
 
   return serializeHtml;
diff --git a/package.json b/package.json
index b2c419bc0..7dd3bddf6 100644
--- a/package.json
+++ b/package.json
@@ -58,7 +58,8 @@
     "karma-coverage": "^0.2.6",
     "karma-failed-reporter": "0.0.2",
     "karma-jasmine": "^0.3.6",
-    "karma-phantomjs-launcher": "~0.1.0",
+    "phantomjs-prebuilt": "2.1.4",
+    "karma-phantomjs-launcher": "~1.0.0",
     "karma-spec-reporter": "0.0.13"
   },
   "scripts": {