diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index 5a8f53bba..2a5972363 100755
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,4 @@
+
 2008-10-27  Carsten Dominik  <dominik@science.uva.nl>
 
 	* org.el ("saveplace"): If saveplace puts point into an invisible
@@ -8,7 +9,9 @@
 	(org-yank): Incorporate adjusting trees.
 	(org-paste-subtree): New argument FOR-YANK which will cause
 	insertion at point without backing up over white lines, and leave
-	point at the end of the inserted text.
+	point at the end of the inserted text.  Also if the cursor is
+	at the beginning of a headline, use the same level or the inserted
+	tree.
 
 	* org-publish.el (org-publish-get-base-files-1): Deal correctly
 	with broken symlinks
diff --git a/lisp/org.el b/lisp/org.el
index 82e3ad5ca..e94550b9e 100644
--- a/lisp/org.el
+++ b/lisp/org.el
@@ -5057,7 +5057,12 @@ useful if the caller implements cut-and-paste as copy-then-paste-then-cut."
 (defun org-paste-subtree (&optional level tree for-yank)
   "Paste the clipboard as a subtree, with modification of headline level.
 The entire subtree is promoted or demoted in order to match a new headline
-level.  By default, the new level is derived from the *visible* headings
+level.  
+
+If the cursor is at the beginning of a headline, the same level as
+that headline is used to paste the tree
+
+If not, the new level is derived from the *visible* headings
 before and after the insertion point, and taken to be the inferior headline
 level of the two.  So if the previous visible heading is level 3 and the
 next is level 4 (or vice versa), level 4 will be used for insertion.
@@ -5068,8 +5073,6 @@ You can also force a different level, either by using a numeric prefix
 argument, or by inserting the heading marker by hand.  For example, if the
 cursor is after \"*****\", then the tree will be shifted to level 5.
 
-If you want to insert the tree as is, just use \\[yank].
-
 If optional TREE is given, use this text instead of the kill ring.
 
 When FOR-YANK is set, this is called by `org-yank'.  In this case, do not
@@ -5090,9 +5093,14 @@ the inserted text when done."
 			(- (match-end 0) (match-beginning 0) 1)
 		      -1))
 	 (force-level (cond (level (prefix-numeric-value level))
-			    ((string-match
-			      ^re_ (buffer-substring (point-at-bol) (point)))
+			    ((and (looking-at "[ \t]*$")
+				  (string-match
+				   ^re_ (buffer-substring
+					 (point-at-bol) (point))))
 			     (- (match-end 1) (match-beginning 1)))
+			    ((and (bolp)
+				  (looking-at org-outline-regexp))
+			     (- (match-end 0) (point) 1))
 			    (t nil)))
 	 (previous-level (save-excursion
 			   (condition-case nil
@@ -5147,9 +5155,10 @@ the inserted text when done."
 	  (setq shift (+ delta shift)))
 	(goto-char (point-min))
 	(setq newend (point-max))))
-    (when (interactive-p)
+    (when (or (interactive-p) for-yank)
       (message "Clipboard pasted as level %d subtree" new-level))
-    (if (and kill-ring
+    (if (and (not for-yank) ; in this case, org-yank will decide about folding
+	     kill-ring
 	     (eq org-subtree-clip (current-kill 0))
 	     org-subtree-clip-folded)
 	;; The tree was folded before it was killed/copied