space around newline in markup should not be removed
If you look at the 404 page for the template example: http://wheezy.pythonanywhere.com/en/error/404, you can see that 'beenremoved' is one word although in the template source they are seperated by newline and whitespace.
The combination of the preprocessor (removing leading space from a line) and the tokenizer(replacing newlines with the empty string), results in incorrect rendering of markup text.
I tried changing the replace in core.py:351 from '' to ' ', and this reslults in correct output but also several failing tests.
An ungly workaround is to remove newlines from markup in the html templates...