diff --git a/wp-admin/gears-manifest.php b/wp-admin/gears-manifest.php
index 7daed2240e..9abb9b374f 100644
--- a/wp-admin/gears-manifest.php
+++ b/wp-admin/gears-manifest.php
@@ -145,7 +145,7 @@ header( 'Content-Type: application/x-javascript; charset=UTF-8' );
 { "url" : "../wp-includes/js/tinymce/plugins/paste/pastetext.htm?ver=311" },
 { "url" : "../wp-includes/js/tinymce/plugins/fullscreen/fullscreen.htm?ver=311" },
 { "url" : "../wp-includes/js/tinymce/plugins/inlinepopups/template.htm?ver=311" },
-{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/editimage.html?ver=311" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/editimage.html?ver=311b" },
 { "url" : "../wp-includes/js/tinymce/wp-mce-help.php?ver=311" },
 
 { "url" : "../wp-includes/js/tinymce/themes/advanced/skins/wp_theme/ui.css?ver=311" },
@@ -158,7 +158,7 @@ header( 'Content-Type: application/x-javascript; charset=UTF-8' );
 { "url" : "../wp-includes/js/tinymce/plugins/media/css/media.css?ver=311" },
 { "url" : "../wp-includes/js/tinymce/plugins/paste/css/pasteword.css?ver=311" },
 { "url" : "../wp-includes/js/tinymce/plugins/paste/css/blank.css?ver=311" },
-{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css?ver=311" },
+{ "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css?ver=311b" },
 { "url" : "../wp-includes/js/tinymce/plugins/wpeditimage/css/editimage-rtl.css?ver=311" },
 { "url" : "../wp-includes/js/tinymce/wordpress.css?ver=311" },
 
diff --git a/wp-includes/formatting.php b/wp-includes/formatting.php
index c49b663d37..e605da909c 100644
--- a/wp-includes/formatting.php
+++ b/wp-includes/formatting.php
@@ -1124,18 +1124,10 @@ function wp_richedit_pre($text) {
 	// Filtering a blank results in an annoying <br />\n
 	if ( empty($text) ) return apply_filters('richedit_pre', '');
 
-	$output = $text;
-	$output = convert_chars($output);
+	$output = convert_chars($text);
 	$output = wpautop($output);
+	$output = htmlspecialchars($output, ENT_NOQUOTES);
 
-	// These must be double-escaped or planets will collide.
-	$output = str_replace('&lt;', '&amp;lt;', $output);
-	$output = str_replace('&gt;', '&amp;gt;', $output);
-
-	// These should be entities too
-	$output = str_replace('<', '&lt;', $output);
-	$output = str_replace('>', '&gt;', $output);
-	
 	return apply_filters('richedit_pre', $output);
 }
 
diff --git a/wp-includes/js/tinymce/langs/wp-langs.php b/wp-includes/js/tinymce/langs/wp-langs.php
index 69228311e8..f0208f590b 100644
--- a/wp-includes/js/tinymce/langs/wp-langs.php
+++ b/wp-includes/js/tinymce/langs/wp-langs.php
@@ -434,7 +434,8 @@ s100:"' . mce_escape( __('100%') ) . '",
 s110:"' . mce_escape( __('110%') ) . '",
 s120:"' . mce_escape( __('120%') ) . '",
 s130:"' . mce_escape( __('130%') ) . '",
-caption:"' . mce_escape( __('Caption') ) . '"
+img_title:"' . mce_escape( __('Edit Image Title') ) . '",
+caption:"' . mce_escape( __('Edit Image Caption') ) . '"
 });
 ';
 ?>
\ No newline at end of file
diff --git a/wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css b/wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css
index 2c9a623dd4..112f5db0f5 100644
--- a/wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css
+++ b/wp-includes/js/tinymce/plugins/wpeditimage/css/editimage.css
@@ -62,6 +62,10 @@ th.label {
 	width: 107px;
 }
 
+#media-upload #basic th.label {
+	padding: 5px 5px 5px 0;
+}
+
 .show-align {
 	height: 200px;
 	width: 480px;
diff --git a/wp-includes/js/tinymce/plugins/wpeditimage/editimage.html b/wp-includes/js/tinymce/plugins/wpeditimage/editimage.html
index c9949758d4..d6adbfcb25 100644
--- a/wp-includes/js/tinymce/plugins/wpeditimage/editimage.html
+++ b/wp-includes/js/tinymce/plugins/wpeditimage/editimage.html
@@ -7,7 +7,7 @@
 <script type="text/javascript" src="js/editimage.js?ver=311"></script>
 <script type="text/javascript" src="../../utils/form_utils.js?ver=311"></script>
 
-<link rel="stylesheet" href="css/editimage.css?ver=311" type="text/css" media="all" />
+<link rel="stylesheet" href="css/editimage.css?ver=311b" type="text/css" media="all" />
 <link rel="stylesheet" href="../../../../../wp-admin/css/media.css?ver=2.6-beta1" type="text/css" media="all" />
 <script type="text/javascript">
 if ( 'rtl' == tinyMCEPopup.editor.getParam('directionality','') )
@@ -77,8 +77,7 @@ if ( 'rtl' == tinyMCEPopup.editor.getParam('directionality','') )
 		<tr class="">
 			<th valign="top" scope="row" class="label">
 				<label for="img_title">
-				<span class="alignleft">{#advanced_dlg.link_titlefield}</span>
-				<span class="alignright"><abbr title="required" class="required">*</abbr></span>
+				<span class="alignleft">{#wpeditimage.img_title}</span>
 				</label>
 			</th>
 			<td class="field">
diff --git a/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js b/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
index 7e6b4ba775..de3a972339 100644
--- a/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
+++ b/wp-includes/js/tinymce/plugins/wpeditimage/editor_plugin.js
@@ -15,7 +15,7 @@
 				if ( ed.dom.getAttrib(el, 'class').indexOf('mceItem') != -1 || el.nodeName != 'IMG' )
 					return;
 
-				tb_show('', url + '/editimage.html?TB_iframe=true');
+				tb_show('', url + '/editimage.html?ver=311b&TB_iframe=true');
 				tinymce.DOM.setStyle( ['TB_overlay','TB_window','TB_load'], 'z-index', '999999' );
 			});
 
@@ -74,6 +74,8 @@
 
 		_do_shcode : function(co) {
 			return co.replace(/\[wp_caption([^\]]+)\]([\s\S]+?)\[\/wp_caption\][\s\u00a0]*/g, function(a,b,c){
+				b = b.replace(/\\'|\\&#39;|\\&#039;/g, '&#39;').replace(/\\"|\\&quot;/g, '&quot;');
+				c = c.replace(/\\&#39;|\\&#039;/g, '&#39;').replace(/\\&quot;/g, '&quot;');
 				var id = b.match(/id=['"]([^'"]+)/i), cls = b.match(/align=['"]([^'"]+)/i);
 				var w = b.match(/width=['"]([0-9]+)/), cap = b.match(/caption=['"]([^'"]+)/i);
 
@@ -91,7 +93,7 @@
 		},
 
 		_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*/gi, function(a,b,c,cap){
+			return co.replace(/<div class="mceTemp[^"]*">\s*<dl([^>]+)>\s*<dt[^>]+>([\s\S]+?)<\/dt>\s*<dd[^>]+>(.+?)<\/dd>\s*<\/dl>\s*<\/div>\s*/gi, function(a,b,c,cap){
 				var id = b.match(/id=['"]([^'"]+)/i), cls = b.match(/class=['"]([^'"]+)/i);
 				var w = c.match(/width=['"]([0-9]+)/);
 
@@ -101,6 +103,7 @@
 
 				if ( ! w || ! cap ) return c;
 				cls = cls.match(/align[^ '"]+/) || 'alignnone';
+				cap = cap.replace(/<\S[^<>]*>/gi, '').replace(/'/g, '&#39;').replace(/"/g, '&quot;');
 
 				return '[wp_caption id="'+id+'" align="'+cls+'" width="'+w+'" caption="'+cap+'"]'+c+'[/wp_caption]';
 			});
diff --git a/wp-includes/js/tinymce/tiny_mce_config.php b/wp-includes/js/tinymce/tiny_mce_config.php
index 1d36907da0..665c4ce34f 100644
--- a/wp-includes/js/tinymce/tiny_mce_config.php
+++ b/wp-includes/js/tinymce/tiny_mce_config.php
@@ -222,7 +222,7 @@ if ( $compress && isset($_SERVER['HTTP_ACCEPT_ENCODING']) ) {
 // Setup cache info
 if ( $disk_cache ) {
 
-	$cacheKey = apply_filters('tiny_mce_version', '20080706');
+	$cacheKey = apply_filters('tiny_mce_version', '20080708');
 
 	foreach ( $initArray as $v )
 		$cacheKey .= $v;
diff --git a/wp-includes/script-loader.php b/wp-includes/script-loader.php
index 273951a594..32447be7b6 100644
--- a/wp-includes/script-loader.php
+++ b/wp-includes/script-loader.php
@@ -37,7 +37,7 @@ function wp_default_scripts( &$scripts ) {
 	$scripts->add( 'editor_functions', '/wp-admin/js/editor.js', false, '20080706' );
 
 	// Modify this version when tinyMCE plugins are changed.
-	$mce_version = apply_filters('tiny_mce_version', '20080706');
+	$mce_version = apply_filters('tiny_mce_version', '20080708');
 	$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');