diff --git a/wp-admin/gears-manifest.php b/wp-admin/gears-manifest.php
index a6236f81cd..0e887a831c 100644
--- a/wp-admin/gears-manifest.php
+++ b/wp-admin/gears-manifest.php
@@ -64,7 +64,7 @@ header( 'Content-Type: application/x-javascript; charset=UTF-8' );
 ?>
 {
 "betaManifestVersion" : 1,
-"version" : "<?php echo $man_version; ?>_20080626",
+"version" : "<?php echo $man_version; ?>_20080701",
 "entries" : [
 <?php echo $defaults; ?>
 
diff --git a/wp-admin/includes/media.php b/wp-admin/includes/media.php
index 99f2bbd2bd..80910d6c24 100644
--- a/wp-admin/includes/media.php
+++ b/wp-admin/includes/media.php
@@ -62,6 +62,25 @@ function get_image_send_to_editor($id, $alt, $title, $align, $url='', $rel = fal
 	return $html;
 }
 
+function image_add_caption( $html, $id, $alt, $title, $align, $url, $size ) {
+
+	if ( empty($alt) ) return $html;
+	$id = ( 0 < (int) $id ) ? 'attachment_' . $id : '';
+
+	preg_match( '/width="([0-9]+)/', $html, $matches );
+	if ( ! isset($matches[1]) ) return $html;
+	$width = $matches[1];
+
+	$html = preg_replace( '/align[^\s\'"]+\s?/', '', $html );
+	if ( empty($align) ) $align = 'none';
+
+	$shcode = '[wp_caption id="' . $id . '" align="align' . $align
+	. '" width="' . $width . '" caption="' . $alt . '"]' . $html . '[/wp_caption]';
+
+	return apply_filters( 'image_add_caption_shortcode', $shcode, $html );
+}
+add_filter( 'image_send_to_editor', 'image_add_caption', 20, 7 );
+
 function media_send_to_editor($html) {
 	?>
 <script type="text/javascript">
diff --git a/wp-admin/js/editor.js b/wp-admin/js/editor.js
index 50955c7006..d2049e4844 100644
--- a/wp-admin/js/editor.js
+++ b/wp-admin/js/editor.js
@@ -52,6 +52,7 @@ switchEditors = {
         // Fix some block element newline issues
         content = content.replace(new RegExp('\\s*<div', 'mg'), '\n<div');
         content = content.replace(new RegExp('</div>\\s*', 'mg'), '</div>\n');
+		content = content.replace(new RegExp('\\s*\\[wp_caption([^\\[]+)\\[/wp_caption\\]\\s*', 'gi'), '\n\n[wp_caption$1[/wp_caption]\n\n');
 
         var blocklist2 = 'blockquote|ul|ol|li|table|thead|tr|th|td|h[1-6]|pre';
         content = content.replace(new RegExp('\\s*<(('+blocklist2+') ?[^>]*)\\s*>', 'mg'), '\n<$1>');
@@ -69,7 +70,7 @@ switchEditors = {
 
         // Trim whitespace
         content = content.replace(new RegExp('^\\s*', ''), '');
-        content = content.replace(new RegExp('\\s*$', ''), '');
+        content = content.replace(new RegExp('[\\s\\u00a0]*$', ''), '');
 
         // put back the line breaks in pre|script
         content = content.replace(/<wp_temp>/g, '\n');
@@ -164,6 +165,7 @@ switchEditors = {
         pee = pee.replace(new RegExp('\\s*\\n', 'gi'), "<br />\n");
         pee = pee.replace(new RegExp('(</?(?:'+blocklist+')[^>]*>)\\s*<br />', 'gi'), "$1");
         pee = pee.replace(new RegExp('<br />(\\s*</?(?:p|li|div|dl|dd|dt|th|pre|td|ul|ol)>)', 'gi'), '$1');
+        pee = pee.replace(new RegExp('(?:<p>|<br ?/?>)*\\s*\\[wp_caption([^\\[]+)\\[/wp_caption\\]\\s*(?:</p>|<br ?/?>)*', 'gi'), '[wp_caption$1[/wp_caption]');
         // pee = pee.replace(new RegExp('^((?:&nbsp;)*)\\s', 'mg'), '$1&nbsp;');
 
         // Fix the pre|script tags	   
diff --git a/wp-admin/js/media-upload.js b/wp-admin/js/media-upload.js
index 99acd263f5..2b9681517f 100644
--- a/wp-admin/js/media-upload.js
+++ b/wp-admin/js/media-upload.js
@@ -6,6 +6,7 @@ function send_to_editor(h) {
 			ed.selection.moveToBookmark(tinymce.EditorManager.activeEditor.windowManager.bookmark);
 
 		ed.execCommand('mceInsertContent', false, h);
+		ed.execCommand('mceCleanup');
 	} else
 		edInsertContent(edCanvas, h);
 
diff --git a/wp-content/themes/classic/style.css b/wp-content/themes/classic/style.css
index 5c8bd4a83e..04f612dcee 100644
--- a/wp-content/themes/classic/style.css
+++ b/wp-content/themes/classic/style.css
@@ -319,3 +319,45 @@ ul.post-meta span.post-meta-key {
 	font-style: normal;
 	text-transform: capitalize;
 }
+
+/* Captions & aligment */
+.aligncenter,
+dl.aligncenter {
+	display: block;
+	margin-left: auto;
+	margin-right: auto;
+}
+
+.alignleft {
+	float: left;
+}
+
+.alignright {
+	float: right;
+}
+
+.wp_caption {
+	border: 1px solid #ddd;
+	text-align: center;
+	background-color: #f3f3f3;
+	padding-top: 4px;
+	margin: 10px;
+	-moz-border-radius: 3px;
+	-khtml-border-radius: 3px;
+	-webkit-border-radius: 3px;
+	border-radius: 3px;
+}
+
+.wp_caption img {
+	margin: 0;
+	padding: 0;
+	border: 0 none;
+}
+
+.wp_caption_dd {
+	font-size: 11px;
+	line-height: 17px;
+	padding: 0 4px 5px;
+	margin: 0;
+}
+/* End captions & aligment */
diff --git a/wp-content/themes/default/style.css b/wp-content/themes/default/style.css
index 062526fde3..7e42a2a92d 100644
--- a/wp-content/themes/default/style.css
+++ b/wp-content/themes/default/style.css
@@ -638,6 +638,41 @@ a img {
 
 
 
+/* Captions */
+.aligncenter,
+dl.aligncenter {
+	display: block;
+	margin-left: auto;
+	margin-right: auto;
+}
+
+.wp_caption {
+	border: 1px solid #ddd;
+	text-align: center;
+	background-color: #f3f3f3;
+	padding-top: 4px;
+	margin: 10px;
+	-moz-border-radius: 3px;
+	-khtml-border-radius: 3px;
+	-webkit-border-radius: 3px;
+	border-radius: 3px;
+}
+
+.wp_caption img {
+	margin: 0;
+	padding: 0;
+	border: 0 none;
+}
+
+.wp_caption_dd {
+	font-size: 11px;
+	line-height: 17px;
+	padding: 0 4px 5px;
+	margin: 0;
+}
+/* End captions */
+
+
 /* "Daisy, Daisy, give me your answer do. I'm half crazy all for the love of you.
 	It won't be a stylish marriage, I can't afford a carriage.
 	But you'll look sweet upon the seat of a bicycle built for two." */
diff --git a/wp-includes/js/tinymce/langs/wp-langs.php b/wp-includes/js/tinymce/langs/wp-langs.php
index 86b3e08b86..a38d5d1981 100644
--- a/wp-includes/js/tinymce/langs/wp-langs.php
+++ b/wp-includes/js/tinymce/langs/wp-langs.php
@@ -400,6 +400,7 @@ wp_page_alt:"' . mce_escape( __('Next page...') ) . '"
 
 tinyMCE.addI18n("' . $language . '.wpeditimage",{
 edit_img:"' . mce_escape( __('Edit Image') )  . '",
+del_img:"' . mce_escape( __('Delete Image') )  . '",
 adv_settings:"' . mce_escape( __('Advanced Settings') )  . '",
 none:"' . mce_escape( __('None') )  . '",
 size:"' . mce_escape( __('Size') ) . '",
diff --git a/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js b/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
index 33edd2408c..230746e596 100644
--- a/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
+++ b/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
@@ -34,27 +34,76 @@
 			});
 
 			ed.onMouseUp.add(function(ed, e) {
-				if ( tinymce.isOpera )
-					ed.plugins.wpeditimage.showButtons(e);
+				if ( ! tinymce.isOpera ) return;
+				if ( e.target.nodeName == 'IMG' )
+					ed.plugins.wpeditimage.showButtons(e.target);
 			});
 
 			ed.onMouseDown.add(function(ed, e) {
-				if ( tinymce.isOpera ) return;
-				ed.plugins.wpeditimage.showButtons(e);
-			});
-/*
-			ed.onSetContent.add(function() {
-				t._fixCenter(ed.getBody());
+				if ( tinymce.isOpera || e.target.nodeName != 'IMG' ) {
+					t.hideButtons();
+					return;
+				}
+				ed.plugins.wpeditimage.showButtons(e.target);
 			});
 
-			ed.onPreProcess.add(function(ed, o) {
-				if (o.set)
-					t._fixCenter(o.node);
+			ed.onKeyPress.add(function(ed, e) {
+				var DL, DIV;
 
+				if ( e.keyCode == 13 && (DL = ed.dom.getParent(ed.selection.getNode(), 'DL')) ) {
+					var P = ed.dom.create('p', {}, '&nbsp;');
+					if ( (DIV = DL.parentNode) && DIV.nodeName == 'DIV' ) 
+						ed.dom.insertAfter( P, DIV );
+					else ed.dom.insertAfter( P, DL );
+
+					tinymce.dom.Event.cancel(e);
+					ed.selection.select(P);
+					return false;
+				}
+			});
+
+			ed.onBeforeSetContent.add(function(ed, o) {
+           		o.content = t._do_shcode(o.content);
+      		});
+
+			ed.onPostProcess.add(function(ed, o) {
 				if (o.get)
-					ed.dom.removeClass(ed.dom.select('p', o.node), 'mce_iecenter');
+					o.content = t._get_shcode(o.content);
+			});
+		},
+
+		_do_shcode : function(co) {
+			return co.replace(/\[wp_caption([^\]]+)\]([\s\S]+?)\[\/wp_caption\][\s\u00a0]*/g, function(a,b,c){
+				var id = b.match(/id=['"]([^'"]+)/), cls = b.match(/align=['"]([^'"]+)/);
+				var w = b.match(/width=['"]([0-9]+)/), cap = b.match(/caption=['"]([^'"]+)/);
+
+				id = ( id && id[1] ) ? id[1] : '';
+				cls = ( cls && cls[1] ) ? cls[1] : 'alignnone';
+				w = ( w && w[1] ) ? w[1] : '';
+				cap = ( cap && cap[1] ) ? cap[1] : '';
+				if ( ! w || ! cap ) return c;
+				
+				var div_cls = (cls == 'aligncenter') ? 'mceTemp mceIEcenter' : 'mceTemp';
+
+				return '<div class="'+div_cls+'"><dl id="'+id+'" class="wp_caption '+cls+'" style="width: '+(10+parseInt(w))+
+				'px"><dt class="wp_caption_dt">'+c+'</dt><dd class="wp_caption_dd">'+cap+'</dd></dl></div>';
+			});
+		},
+
+		_get_shcode : function(co) {
+			return co.replace(/<div class="mceTemp[^"]*">\s*<dl([^>]+)>\s*<dt[^>]+>([\s\S]+?)<\/dt>\s*<dd[^>]+>([^<]+)<\/dd>\s*<\/dl>\s*<\/div>\s*/g, function(a,b,c,cap){
+				var id = b.match(/id=['"]([^'"]+)/), cls = b.match(/class=['"]([^'"]+)/);
+				var w = c.match(/width=['"]([0-9]+)/);
+
+				id = ( id && id[1] ) ? id[1] : '';
+				cls = ( cls && cls[1] ) ? cls[1] : 'alignnone';
+				w = ( w && w[1] ) ? w[1] : '';
+
+				if ( ! w || ! cap ) return c;
+				cls = cls ? cls.match(/align[^ '"]+/) : '';
+
+				return '[wp_caption id="'+id+'" align="'+cls+'" width="'+w+'" caption="'+cap+'"]'+c+'[/wp_caption]';
 			});
-*/
 		},
 
 		_fixCenter : function(c) {
@@ -71,32 +120,31 @@
 			});
 		},
 
-		showButtons : function(e) {
-			var t = this, ed = tinyMCE.activeEditor, p1, p2, vp, DOM = tinymce.DOM, X, Y, el = e.target;
+		showButtons : function(n) {
+			var t = this, ed = tinyMCE.activeEditor, p1, p2, vp, DOM = tinymce.DOM, X, Y;
 
-			t.hideButtons();
-			if (el.nodeName == 'IMG') {
-				if (ed.dom.getAttrib(el, 'class').indexOf('mceItem') != -1)
-					return;
+			if (ed.dom.getAttrib(n, 'class').indexOf('mceItem') != -1)
+				return;
 
-				vp = ed.dom.getViewPort(ed.getWin());
-				p1 = DOM.getPos(ed.getContentAreaContainer());
-				p2 = ed.dom.getPos(el);
+			vp = ed.dom.getViewPort(ed.getWin());
+			p1 = DOM.getPos(ed.getContentAreaContainer());
+			p2 = ed.dom.getPos(n);
 
-				X = Math.max(p2.x - vp.x, 0) + p1.x;
-				Y = Math.max(p2.y - vp.y, 0) + p1.y;
+			X = Math.max(p2.x - vp.x, 0) + p1.x;
+			Y = Math.max(p2.y - vp.y, 0) + p1.y;
 
-				DOM.setStyles('wp_editbtns', {
-					'top' : Y+5+'px',
-					'left' : X+5+'px',
-					'display' : 'block'
-				});
+			DOM.setStyles('wp_editbtns', {
+				'top' : Y+5+'px',
+				'left' : X+5+'px',
+				'display' : 'block'
+			});
 
-				t.btnsTout = window.setTimeout( function(){ed.plugins.wpeditimage.hideButtons();}, 5000 );
-			}
+			t.btnsTout = window.setTimeout( function(){ed.plugins.wpeditimage.hideButtons();}, 5000 );
 		},
 
 		hideButtons : function() {
+			if ( tinymce.DOM.isHidden('wp_editbtns') ) return;
+
 			tinymce.DOM.hide('wp_editbtns');
 			window.clearTimeout(this.btnsTout);
 		},
@@ -116,7 +164,7 @@
 				id : 'wp_editimgbtn',
 				width : '24',
 				height : '24',
-				title : 'Edit'
+				title : ed.getLang('wpeditimage.edit_img')
 			});
 
 			wp_editimgbtn.onmousedown = function(e) {
@@ -131,21 +179,23 @@
 				id : 'wp_delimgbtn',
 				width : '24',
 				height : '24',
-				title : 'Delete'
+				title : ed.getLang('wpeditimage.del_img')
 			});
 
 			wp_delimgbtn.onmousedown = function(e) {
 				var ed = tinyMCE.activeEditor, el = ed.selection.getNode(), p;
 
-				if ( el.nodeName != 'IMG' || ed.dom.getAttrib(el, 'class').indexOf('mceItem') != -1 ) return;
+				if ( el.nodeName == 'IMG' && ed.dom.getAttrib(el, 'class').indexOf('mceItem') == -1 ) {
+					if ( (p = ed.dom.getParent(el, 'div')) && ed.dom.hasClass(p, 'mceTemp') )
+						ed.dom.remove(p);
+					else if ( (p = ed.dom.getParent(el, 'A')) && p.childNodes.length == 1 )
+						ed.dom.remove(p);
+					else ed.dom.remove(el);
 
-				if ( (p = ed.dom.getParent(el, 'A')) && p.childNodes.length == 1)
-					ed.dom.remove(p);
-				else ed.dom.remove(el);
-
-				this.parentNode.style.display = 'none';
-				ed.execCommand('mceRepaint');
-				return false;
+					this.parentNode.style.display = 'none';
+					ed.execCommand('mceRepaint');
+					return false;
+				}
 			}
 		},
 
diff --git a/wp-includes/js/tinymce/plugins/wpeditimage/js/editimage.js b/wp-includes/js/tinymce/plugins/wpeditimage/js/editimage.js
index 869dfd1750..adad1a35f9 100644
--- a/wp-includes/js/tinymce/plugins/wpeditimage/js/editimage.js
+++ b/wp-includes/js/tinymce/plugins/wpeditimage/js/editimage.js
@@ -95,6 +95,8 @@ var wpImage = {
 	current_size_sel : 's100',
 	width : '',
 	height : '',
+	align : '',
+	img_alt : '',
 
 	setTabs : function(tab) {
 		var t = this;
@@ -125,7 +127,7 @@ var wpImage = {
 	imgAlignCls : function(v) {
 		var t = this, cls = t.I('img_classes').value;
 
-		t.I('img_demo').className = v;
+		t.I('img_demo').className = t.align = v;
 
 		cls = cls.replace( /align[^ "']+/gi, '' );
 		cls += (' ' + v);
@@ -135,7 +137,7 @@ var wpImage = {
 			t.I('hspace').value = '';
 			t.updateStyle('hspace');
 		}
-		
+
 		t.I('img_classes').value = cls;
 	},
 
@@ -153,7 +155,7 @@ var wpImage = {
 
 	showSizeSet : function() {
 		var t = this;
-		
+
 		if ( (t.width * 1.3) > parseInt(t.preloadImg.width) ) {
 			var s130 = t.I('s130'), s120 = t.I('s120'), s110 = t.I('s110');
 
@@ -243,7 +245,7 @@ var wpImage = {
 	},
 
 	setup : function() {
-		var t = this, h, c, el, id, link, fname, f = document.forms[0], ed = tinyMCEPopup.editor, d = t.I('img_demo'), dom = tinyMCEPopup.dom;
+		var t = this, h, c, el, id, link, fname, f = document.forms[0], ed = tinyMCEPopup.editor, d = t.I('img_demo'), dom = tinyMCEPopup.dom, DL, caption;
 		document.dir = tinyMCEPopup.editor.getParam('directionality','');
 		tinyMCEPopup.restoreSelection();
 		el = ed.selection.getNode();
@@ -252,16 +254,32 @@ var wpImage = {
 		f.img_src.value = d.src = link = ed.dom.getAttrib(el, 'src');
 		ed.dom.setStyle(el, 'float', '');
 		t.getImageData();
+		c = ed.dom.getAttrib(el, 'class');
+		caption = t.img_alt = ed.dom.getAttrib(el, 'alt');
+
+		if ( DL = dom.getParent(el, 'dl') ) {
+			var dlc = ed.dom.getAttrib(DL, 'class');
+			dlc = dlc.match(/align[^ "']+/i);
+			if ( ! dom.hasClass(el, dlc) )
+				c += ' '+dlc;
+				
+			tinymce.each(DL.childNodes, function(e) {
+				if ( e.nodeName == 'DD' ) {
+					caption = e.innerHTML;
+					return;
+				}
+			});
+		}
 
 		f.img_title.value = ed.dom.getAttrib(el, 'title');
-		f.img_alt.value = ed.dom.getAttrib(el, 'alt');
+		f.img_alt.value = caption;
 		f.border.value = ed.dom.getAttrib(el, 'border');
 		f.vspace.value = ed.dom.getAttrib(el, 'vspace');
 		f.hspace.value = ed.dom.getAttrib(el, 'hspace');
 		f.align.value = ed.dom.getAttrib(el, 'align');
 		f.width.value = t.width = ed.dom.getAttrib(el, 'width');
 		f.height.value = t.height = ed.dom.getAttrib(el, 'height');
-		f.img_classes.value = c = ed.dom.getAttrib(el, 'class');
+		f.img_classes.value = c;
 		f.img_style.value = ed.dom.getAttrib(el, 'style');
 
 		// Move attribs to styles
@@ -291,27 +309,20 @@ var wpImage = {
 
 		if ( c.indexOf('alignleft') != -1 ) {
 			t.I('alignleft').checked = "checked";
-			d.className = "alignleft";
+			d.className = t.align = "alignleft";
 		} else if ( c.indexOf('aligncenter') != -1 ) {
 			t.I('aligncenter').checked = "checked";
-			d.className = "aligncenter";
+			d.className = t.align = "aligncenter";
 		} else if ( c.indexOf('alignright') != -1 ) {
 			t.I('alignright').checked = "checked";
-			d.className = "alignright";
+			d.className = t.align = "alignright";
 		} else if ( c.indexOf('alignnone') != -1 ) {
 			t.I('alignnone').checked = "checked";
-			d.className = "alignnone";
+			d.className = t.align = "alignnone";
 		}
 
 		if ( t.width && t.preloadImg.width ) t.showSizeSet();
 		document.body.style.display = '';
-/*
-		// Test if is attachment
-		if ( (id = c.match( /wp-image-([0-9]{1,6})/ )) && id[1] ) {
-			t.I('tab_attachment').href = tinymce.documentBaseURL + 'media.php?action=edit&attachment_id=' + id[1];
-			t.I('tab_attachment').style.display = 'inline';
-		}
-*/
 	},
 
 	remove : function() {
@@ -321,10 +332,11 @@ var wpImage = {
 		el = ed.selection.getNode();
 		if (el.nodeName != 'IMG') return;
 
-		if ( (p = ed.dom.getParent(el, 'A')) && p.childNodes.length == 1)
+		if ( (p = ed.dom.getParent(el, 'div')) && ed.dom.hasClass(p, 'mceTemp') )
 			ed.dom.remove(p);
-		else
-			ed.dom.remove(el);
+		else if ( (p = ed.dom.getParent(el, 'A')) && p.childNodes.length == 1 )
+			ed.dom.remove(p);
+		else ed.dom.remove(el);
 
 		ed.execCommand('mceRepaint');
 		tinyMCEPopup.close();
@@ -332,31 +344,37 @@ var wpImage = {
 	},
 
 	update : function() {
-		var t = this, f = document.forms[0], nl = f.elements, ed = tinyMCEPopup.editor, el, P, A, v = f.img_classes.value;
+		var t = this, f = document.forms[0], ed = tinyMCEPopup.editor, el, b, fixSafari = null, DL, P, A, DIV, do_caption = null, img_class = f.img_classes.value, html;
 
 		tinyMCEPopup.restoreSelection();
 		el = ed.selection.getNode();
 
 		if (el.nodeName != 'IMG') return;
-		if (f.img_src.value === '') t.remove();
-
-		A = ed.dom.getParent(el, 'A');
-		P = ed.dom.getParent(el, 'p');
-		tinyMCEPopup.execCommand("mceBeginUndoLevel");
-/*		if ( tinymce.isIE ) {
-			if ( f.img_classes.value.indexOf('aligncenter') != -1 )
-				ed.dom.addClass(P, 'mce_iecenter');
-			else ed.dom.removeClass(P, 'mce_iecenter');
+		if (f.img_src.value === '') {
+			t.remove();
+			return;
 		}
-*/
+
+		if ( f.img_alt.value != '' && f.width.value != '' ) {
+			do_caption = 1;
+			img_class = img_class.replace( /align[^ "']+\s?/gi, '' );
+		}
+
+		A = ed.dom.getParent(el, 'a');
+		P = ed.dom.getParent(el, 'p');
+		DL = ed.dom.getParent(el, 'dl');
+		DIV = ed.dom.getParent(el, 'div');
+
+		tinyMCEPopup.execCommand("mceBeginUndoLevel");
+
 		ed.dom.setAttribs(el, {
 			src : f.img_src.value,
 			title : f.img_title.value,
-			alt : f.img_alt.value,
+			alt : t.img_alt,
 			width : f.width.value,
 			height : f.height.value,
 			style : f.img_style.value,
-			'class' : '' //f.img_classes.value
+			'class' : img_class
 		});
 
 		if ( ! f.link_href.value ) {
@@ -368,15 +386,20 @@ var wpImage = {
 		} else {
 			// Create new anchor elements
 			if ( A == null ) {
-				
 				if ( ! f.link_href.value.match(/https?:\/\//) )
 					f.link_href.value = tinyMCEPopup.editor.documentBaseURI.toAbsolute(f.link_href.value);
-				
+
+				if ( tinymce.isWebKit && ed.dom.hasClass(el, 'aligncenter') ) {
+					ed.dom.removeClass(el, 'aligncenter');
+					fixSafari = 1;
+				}
+
 				tinyMCEPopup.execCommand("CreateLink", false, "#mce_temp_url#", {skip_undo : 1});
-	
+				if ( fixSafari ) ed.dom.addClass(el, 'aligncenter');
+
 				tinymce.each(ed.dom.select("a"), function(n) {
 					if (ed.dom.getAttrib(n, 'href') == '#mce_temp_url#') {
-	
+
 						ed.dom.setAttribs(n, {
 							href : f.link_href.value,
 							title : f.link_title.value,
@@ -399,15 +422,63 @@ var wpImage = {
 			}
 		}
 
-		ed.dom.setAttrib(el, 'class', f.img_classes.value);
-		
-		if ( v.indexOf('aligncenter') != -1 ) {
+		if ( do_caption ) {
+			var id, cap_id = '', cap, DT, DD, cap_width = 10 + parseInt(f.width.value), align = t.align.substring(5), div_cls = (t.align == 'aligncenter') ? 'mceTemp mceIEcenter' : 'mceTemp';
+
+			if ( DL ) {
+				ed.dom.setAttribs(DL, {
+					'class' : 'wp_caption '+t.align,
+					style : 'width: '+cap_width+'px;'
+				});
+
+				if ( DIV ) 
+					ed.dom.setAttrib(DIV, 'class', div_cls);
+
+				if ( (DT = ed.dom.getParent(el, 'dt')) && (DD = DT.nextSibling) && ed.dom.hasClass(DD, 'wp_caption_dd') )
+					ed.dom.setHTML(DD, f.img_alt.value);
+
+			} else {
+				if ( (id = f.img_classes.value.match( /wp-image-([0-9]{1,6})/ )) && id[1] )
+					cap_id = 'attachment_'+id[1];
+
+				if ( f.link_href.value ) html = ed.dom.getOuterHTML(ed.dom.getParent(el, 'a'));
+				else html = ed.dom.getOuterHTML(el);
+
+				html = '<dl id="'+cap_id+'" class="wp_caption '+t.align+'" style="width: '+cap_width+
+				'px"><dt class="wp_caption_dt">'+html+'</dt><dd class="wp_caption_dd">'+f.img_alt.value+'</dd></dl>';
+
+				cap = ed.dom.create('div', {'class': div_cls}, html);
+
+				if ( P ) {
+					P.parentNode.insertBefore(cap, P);
+					ed.dom.remove(P);
+				}
+			}
+
+			tinyMCEPopup.execCommand("mceEndUndoLevel");
+			ed.execCommand('mceRepaint');
+			tinyMCEPopup.close();
+			return;
+		} else {
+			if ( DL ) {
+				if ( f.link_href.value ) html = ed.dom.getOuterHTML(ed.dom.getParent(el, 'a'));
+				else html = ed.dom.getOuterHTML(el);
+				
+				P = ed.dom.create('p', {}, html);
+				DL.parentNode.insertBefore(P,DL);
+				ed.dom.remove(DL.childNodes);
+				ed.dom.remove(DL);
+			}
+		}
+
+		if ( f.img_classes.value.indexOf('aligncenter') != -1 ) {
 			if ( P && ( ! P.style || P.style.textAlign != 'center' ) )
 				ed.dom.setStyle(P, 'textAlign', 'center');
 		} else {
 			if ( P && P.style && P.style.textAlign == 'center' )
 				ed.dom.setStyle(P, 'textAlign', '');
 		}
+
 		tinyMCEPopup.execCommand("mceEndUndoLevel");
 		ed.execCommand('mceRepaint');
 		tinyMCEPopup.close();
@@ -496,7 +567,7 @@ var wpImage = {
 			f.width.value = t.width = t.preloadImg.width;
 			f.height.value = t.height = t.preloadImg.height;
 		}
-		
+
 		t.showSizeSet();
 		t.demoSetSize();
 		if ( f.img_style.value )
diff --git a/wp-includes/js/tinymce/themes/advanced/skins/wp_theme/content.css b/wp-includes/js/tinymce/themes/advanced/skins/wp_theme/content.css
index 1a94d83c11..df1e059a83 100644
--- a/wp-includes/js/tinymce/themes/advanced/skins/wp_theme/content.css
+++ b/wp-includes/js/tinymce/themes/advanced/skins/wp_theme/content.css
@@ -1,4 +1,4 @@
-body, td, pre {color:#000; font-family:Verdana, Arial, Helvetica, sans-serif; font-size:10px; margin:8px;}
+body, td {color:#000; font-family:Verdana, Arial, Helvetica, sans-serif; font-size:10px; margin:8px;}
 body {background:#FFF;}
 body.mceForceColors {background:#FFF; color:#000;}
 h1 {font-size: 2em}
@@ -17,7 +17,3 @@ ins {border-bottom:1px solid green; text-decoration: none; color:green}
 del {color:red; text-decoration:line-through}
 cite {border-bottom:1px dashed blue}
 acronym {border-bottom:1px dotted #CCC; cursor:help}
-
-p.mce_iecenter {
-	text-align: center;
-}
diff --git a/wp-includes/js/tinymce/wordpress.css b/wp-includes/js/tinymce/wordpress.css
index 1596f59a6d..0b55d4e2d7 100644
--- a/wp-includes/js/tinymce/wordpress.css
+++ b/wp-includes/js/tinymce/wordpress.css
@@ -1,6 +1,7 @@
 /* This file contains the CSS data for the editable area(iframe) of TinyMCE */
 
-.aligncenter {
+.aligncenter,
+dl.aligncenter {
 	display: block;
 	margin-left: auto;
 	margin-right: auto;
@@ -14,6 +15,31 @@
 	float: right;
 }
 
+.wp_caption {
+	border: 1px solid #ddd;
+	text-align: center;
+	background-color: #f3f3f3;
+	padding-top: 4px;
+	margin: 10px;
+	-moz-border-radius: 3px;
+	-khtml-border-radius: 3px;
+	-webkit-border-radius: 3px;
+	border-radius: 3px;
+}
+
+.wp_caption img {
+	margin: 0;
+	padding: 0;
+	border: 0 none;
+}
+
+.wp_caption_dd {
+	font-size: 11px;
+	line-height: 17px;
+	padding: 0 4px 5px;
+	margin: 0;
+}
+
 body.mceContentBody {
 	background: #fff;
 	color: #000;
@@ -63,3 +89,7 @@ a.mceItemAnchor {
 	padding-left: 12px;
 	background: url(img/items.gif) no-repeat bottom left;
 }
+
+.mceIEcenter {
+	text-align: center;
+}
diff --git a/wp-includes/media.php b/wp-includes/media.php
index fd4b0a2a3c..dc625d0116 100644
--- a/wp-includes/media.php
+++ b/wp-includes/media.php
@@ -350,6 +350,31 @@ function wp_get_attachment_image($attachment_id, $size='thumbnail', $icon = fals
 	return $html;
 }
 
+add_shortcode('wp_caption', 'wp_caption_shortcode');
+
+function wp_caption_shortcode($attr, $content = null) {
+	
+	// Allow plugins/themes to override the default caption template.
+	$output = apply_filters('wp_caption_shortcode', '', $attr, $content);
+	if ( $output != '' )
+		return $output;
+
+	extract(shortcode_atts(array(
+		'id'	=> '',
+		'align'	=> 'alignnone',
+		'width'	=> '',
+		'caption' => ''
+	), $attr));
+	
+	if ( 1 > (int) $width || empty($caption) )
+		return $content;
+	
+	if ( $id ) $id = 'id="' . $id . '" ';
+	
+	return '<dl ' . $id . 'class="wp_caption ' . $align . '" style="width: ' . (10 + (int) $width) . 'px">'
+	. '<dt class="wp_caption_dt">' . $content . '</dt><dd class="wp_caption_dd">' . $caption . '</dd></dl>';
+}
+
 add_shortcode('gallery', 'gallery_shortcode');
 
 function gallery_shortcode($attr) {
diff --git a/wp-includes/script-loader.php b/wp-includes/script-loader.php
index 848f2921db..8283a9c96a 100644
--- a/wp-includes/script-loader.php
+++ b/wp-includes/script-loader.php
@@ -34,10 +34,10 @@ function wp_default_scripts( &$scripts ) {
 	$visual_editor = apply_filters('visual_editor', array('tiny_mce'));
 	$scripts->add( 'editor', false, $visual_editor, '20080321' );
 
-	$scripts->add( 'editor_functions', '/wp-admin/js/editor.js', false, '20080325' );
+	$scripts->add( 'editor_functions', '/wp-admin/js/editor.js', false, '20080701' );
 
 	// Modify this version when tinyMCE plugins are changed.
-	$mce_version = apply_filters('tiny_mce_version', '20080626');
+	$mce_version = apply_filters('tiny_mce_version', '20080701');
 	$scripts->add( 'tiny_mce', '/wp-includes/js/tinymce/tiny_mce_config.php', array('editor_functions'), $mce_version );
 
 	$scripts->add( 'prototype', '/wp-includes/js/prototype.js', false, '1.6');
@@ -159,7 +159,7 @@ function wp_default_scripts( &$scripts ) {
 			'edit' => __('Edit'),
 		) );
 		$scripts->add( 'admin-gallery', '/wp-admin/js/gallery.js', array( 'jquery-ui-sortable' ), '20080520' );
-		$scripts->add( 'media-upload', '/wp-admin/js/media-upload.js', array( 'thickbox' ), '20080625' );
+		$scripts->add( 'media-upload', '/wp-admin/js/media-upload.js', array( 'thickbox' ), '20080701' );
 		$scripts->localize( 'upload', 'uploadL10n', array(
 			'browseTitle' => attribute_escape(__('Browse your files')),
 			'back' => __('&laquo; Back'),