--- latex.el	22 Jun 2005 17:33:01 +0200	5.376
+++ latex.el	02 Jul 2005 12:36:19 +0200	
@@ -600,17 +600,21 @@
   "Insert LaTeX ENVIRONMENT with optional argument EXTRA."
   (let ((active-mark (and (TeX-active-mark)
 			  (not (eq (mark) (point)))))
-	comment-flag prefix)
+	comment-flag prefix point-at-end case-fold-search
+	(macrocode-p (string-match "\\`macrocode\\*?\\'" environment)))
     (when active-mark
-      (if (< (mark) (point))
+      (if (setq point-at-end (< (mark) (point)))
 	  (exchange-point-and-mark)))
     (unless (TeX-looking-at-backward
 	     (if (and LaTeX-insert-into-comments
-		      (TeX-in-commented-line)
+		      (or macrocode-p (TeX-in-commented-line))
 		      (not (bolp)))
 		 (concat "^[ \t]*" TeX-comment-start-regexp "+[ \t]*")
 	       "^[ \t]*"))
-      (LaTeX-newline))
+      (if (and macrocode-p
+	       (not (TeX-in-commented-line)))
+	  (insert "\n%")
+	(LaTeX-newline)))
     ;; Insert a linebreak at the end of the marked region if necessary.
     ;; Do this before we insert anything which might alter the prefix.
     (when active-mark
@@ -619,9 +623,12 @@
 	(unless (progn (skip-chars-forward " \t") (eolp))
 	  ;; Use `(insert "\n")' instead of `(newline)' because in contrast
 	  ;; to Emacs, XEmacs moves the mark if `newline' is used.
-	  (if (bolp) (insert "\n") (LaTeX-newline))
+	  (if macrocode-p
+	      (insert "\n")
+	    (LaTeX-newline))
 	  (indent-according-to-mode))))
     (when (and LaTeX-insert-into-comments
+	       (not macrocode-p)
 	       (looking-at
 		(concat "[ \t]*\\(" TeX-comment-start-regexp "+\\)")))
       (setq comment-flag t)
@@ -629,10 +636,12 @@
     (insert TeX-esc "begin" TeX-grop environment TeX-grcl)
     (indent-according-to-mode)
     (if extra (insert extra))
-    (LaTeX-newline)
+    (if macrocode-p
+	(insert "\n")
+      (LaTeX-newline))
     (if active-mark
 	(progn
-	  (goto-char (mark))
+	  (exchange-point-and-mark)
 	  (unless (TeX-looking-at-backward
 		   (if (and LaTeX-insert-into-comments
 			    (TeX-in-commented-line)
@@ -647,8 +656,11 @@
     (indent-according-to-mode)
     (end-of-line 0)
     (if active-mark
-	(or (assoc environment LaTeX-indent-environment-list)
-	    (LaTeX-fill-environment nil))
+	(progn
+	  (or (assoc environment LaTeX-indent-environment-list)
+	      (LaTeX-fill-region (mark) (point) nil environment))
+	  (unless point-at-end
+	    (exchange-point-and-mark)))
       (indent-according-to-mode)))
   (TeX-math-input-method-off))