diff --git a/app/src/processing/app/Editor.java b/app/src/processing/app/Editor.java
index fa238f94c..e5aa9e6bb 100644
--- a/app/src/processing/app/Editor.java
+++ b/app/src/processing/app/Editor.java
@@ -89,6 +89,7 @@ public abstract class Editor extends JFrame implements RunnerListener {
   private JMenuItem undoItem, redoItem;
   protected UndoAction undoAction;
   protected RedoAction redoAction;
+  /** the currently selected tab's undo manager */
   private UndoManager undo;
   // used internally, and only briefly
   private CompoundEdit compoundEdit;
@@ -1068,6 +1069,9 @@ public abstract class Editor extends JFrame implements RunnerListener {
       }
       updateUndoState();
       redoAction.updateRedoState();
+      if (sketch != null) {
+        sketch.setModified(!getText().equals(sketch.getCurrentCode().getSavedProgram()));
+      }
     }
 
     protected void updateUndoState() {
@@ -1076,17 +1080,17 @@ public abstract class Editor extends JFrame implements RunnerListener {
         undoItem.setEnabled(true);
         undoItem.setText(undo.getUndoPresentationName());
         putValue(Action.NAME, undo.getUndoPresentationName());
-        if (sketch != null) {
-          sketch.setModified(true);  // 0107
-        }
+//        if (sketch != null) {
+//          sketch.setModified(true);  // 0107, removed for 0196
+//        }
       } else {
         this.setEnabled(false);
         undoItem.setEnabled(false);
         undoItem.setText("Undo");
         putValue(Action.NAME, "Undo");
-        if (sketch != null) {
-          sketch.setModified(false);  // 0107
-        }
+//        if (sketch != null) {
+//          sketch.setModified(false);  // 0107
+//        }
       }
     }
   }
@@ -1113,6 +1117,9 @@ public abstract class Editor extends JFrame implements RunnerListener {
       }
       updateRedoState();
       undoAction.updateUndoState();
+      if (sketch != null) {
+        sketch.setModified(!getText().equals(sketch.getCurrentCode().getSavedProgram()));
+      }
     }
 
     protected void updateRedoState() {
diff --git a/app/src/processing/app/Sketch.java b/app/src/processing/app/Sketch.java
index cb649f9fc..25839bcad 100644
--- a/app/src/processing/app/Sketch.java
+++ b/app/src/processing/app/Sketch.java
@@ -626,9 +626,11 @@ public class Sketch {
    */
   public void setModified(boolean state) {
     //System.out.println("setting modified to " + state);
-    //new Exception().printStackTrace();
-    current.setModified(state);
-    calcModified();
+    //new Exception().printStackTrace(System.out);
+    if (current.isModified() != state) { 
+      current.setModified(state);
+      calcModified();
+    }
   }
 
 
diff --git a/app/src/processing/app/SketchCode.java b/app/src/processing/app/SketchCode.java
index da5192307..0a37efd20 100644
--- a/app/src/processing/app/SketchCode.java
+++ b/app/src/processing/app/SketchCode.java
@@ -45,6 +45,9 @@ public class SketchCode {
 
   /** Text of the program text for this tab */
   private String program;
+  
+  /** Last version of the program on disk. */
+  private String savedProgram;
 
   /** Document object for this tab. Currently this is a SyntaxDocument. */
   private Document document;
@@ -58,6 +61,9 @@ public class SketchCode {
    * that's currently the front.
    */
   private UndoManager undo = new UndoManager();
+  
+  /** What was on top of the undo stack when last saved. */ 
+//  private UndoableEdit lastEdit;
 
   // saved positions from last time this tab was used
   private int selectionStart;
@@ -150,16 +156,24 @@ public class SketchCode {
     return extension.equals(what);
   }
   
-  
+
+  /** get the current text for this tab */
   public String getProgram() {
     return program;
   }
-  
-  
+
+
+  /** set the current text for this tab */
   public void setProgram(String replacement) {
     program = replacement;
   }
-  
+
+
+  /** get the last version saved of this tab */
+  public String getSavedProgram() {
+    return savedProgram;
+  }
+
   
   public int getLineCount() {
     return Base.countLines(program);
@@ -259,6 +273,7 @@ public class SketchCode {
    */
   public void load() throws IOException {
     program = Base.loadFile(file);
+    savedProgram = program;
 
     if (program.indexOf('\uFFFD') != -1) {
       System.err.println(file.getName() + " contains unrecognized characters."); 
@@ -282,6 +297,7 @@ public class SketchCode {
     //history.record(s, SketchHistory.SAVE);
 
     Base.saveFile(program, file);
+    savedProgram = program;
     setModified(false);
   }
 
@@ -291,12 +307,13 @@ public class SketchCode {
    */
   public void saveAs(File newFile) throws IOException {
     Base.saveFile(program, newFile);
+    savedProgram = program;
     file = newFile;
     makePrettyName();
     setModified(false);
   }
   
-
+  
   /**
    * Called when the sketch folder name/location has changed. Called when 
    * renaming tab 0, the main code. 
diff --git a/app/src/processing/mode/java/PdeKeyListener.java b/app/src/processing/mode/java/PdeKeyListener.java
index 6341bbb4d..1c46a7253 100644
--- a/app/src/processing/mode/java/PdeKeyListener.java
+++ b/app/src/processing/mode/java/PdeKeyListener.java
@@ -128,12 +128,12 @@ public class PdeKeyListener {
     }
 
     // TODO i don't like these accessors. clean em up later.
-    if (!editor.getSketch().isModified()) {
-      if ((code == KeyEvent.VK_BACK_SPACE) || (code == KeyEvent.VK_TAB) ||
-          (code == KeyEvent.VK_ENTER) || ((c >= 32) && (c < 128))) {
-        sketch.setModified(true);
-      }
+//    if (!editor.getSketch().isModified()) {
+    if ((code == KeyEvent.VK_BACK_SPACE) || (code == KeyEvent.VK_TAB) ||
+        (code == KeyEvent.VK_ENTER) || ((c >= 32) && (c < 128))) {
+      sketch.setModified(true);
     }
+//    }
 
     if ((code == KeyEvent.VK_UP) &&
         ((event.getModifiers() & KeyEvent.CTRL_MASK) != 0)) {