diff -u -r nano-34/nano.c nano-35/nano.c
--- nano-34/nano.c	Sat Sep  7 21:12:00 2002
+++ nano-35/nano.c	Sat Sep  7 21:10:12 2002
@@ -2177,7 +2177,7 @@
  *	2) the line above it is not part of a paragraph, or
  *	3) the line above it does not have precisely the same quote
  *	   part, or
- *	4) the indentation of this line is not a subset of the
+ *	4) the indentation of this line is not an initial substring of the
  *	   indentation of the previous line, or
  *	5) this line has no quote part and some indentation, and
  *	   AUTOINDENT is not set.
@@ -2250,29 +2250,28 @@
     current_x = 0;
     if (current->data[quote_len + indent_len] != '\0') {
 	/* This line is part of a paragraph.  So we must search back to
-	 * the first line of this paragraph. */
-	if (quote_len > 0 || indent_len == 0
-#ifndef NANO_SMALL
-		|| ISSET(AUTOINDENT)
-#endif
-					) {
-	    /* We don't justify indented paragraphs unless AUTOINDENT is
-	     * turned on.  See 5) above. */
-	    while (current->prev && quotes_match(current->data,
+	 * the first line of this paragraph.  First we check items 1) and
+	 * 3) above. */
+	while (current->prev && quotes_match(current->data,
 			quote_len, IFREG(current->prev->data, &qreg))) {
-		/* indentation length of the previous line */
-		size_t temp_id_len =
+	    size_t temp_id_len =
 			indent_length(current->prev->data + quote_len);
+		/* The indentation length of the previous line. */
 
-		if (!indents_match(current->prev->data + quote_len,
-				temp_id_len, current->data + quote_len,
-				indent_len) ||
-			current->prev->data[quote_len + temp_id_len] == '\0')
-		    break;
-		indent_len = temp_id_len;
-		current = current->prev;
-		current_y--;
-	    }
+	    /* Is this line the beginning of a paragraph, according to
+	       items 2), 5), or 4) above?  If so, stop. */
+	    if (current->prev->data[quote_len + temp_id_len] == '\0' ||
+		    (quote_len == 0 && indent_len > 0
+#ifndef NANO_SMALL
+			&& !ISSET(AUTOINDENT)
+#endif
+			) ||
+		    !indents_match(current->prev->data + quote_len,
+			temp_id_len, current->data + quote_len, indent_len))
+		break;
+	    indent_len = temp_id_len;
+	    current = current->prev;
+	    current_y--;
 	}
     } else {
 	/* This line is not part of a paragraph.  Move down until we get