diff --git a/lib/haml/helpers/action_view_mods.rb b/lib/haml/helpers/action_view_mods.rb
index 7303231d..0eb3e2b1 100644
--- a/lib/haml/helpers/action_view_mods.rb
+++ b/lib/haml/helpers/action_view_mods.rb
@@ -103,7 +103,7 @@ if defined?(ActionView) and not defined?(Merb::Plugins)
 
           preserve = haml_buffer.options[:preserve].include?(name.to_s)
 
-          if block_given? && block_called_from_erb?(block) && preserve
+          if block_given? && block_is_haml?(block) && preserve
             return content_tag_without_haml(name, *args) {preserve(&block)}
           end
 
diff --git a/test/haml/engine_test.rb b/test/haml/engine_test.rb
index 49b39a42..191c5186 100644
--- a/test/haml/engine_test.rb
+++ b/test/haml/engine_test.rb
@@ -302,23 +302,23 @@ HAML
   end
 
   def test_escaped_inline_string_interpolation
-    assert_equal("<p>4&amp;3</p>\n", render("%p&== #{2+2}&#{2+1}", :escape_html => true))
-    assert_equal("<p>4&amp;3</p>\n", render("%p&== #{2+2}&#{2+1}", :escape_html => false))
+    assert_equal("<p>4&amp;3</p>\n", render("%p&== \#{2+2}&\#{2+1}", :escape_html => true))
+    assert_equal("<p>4&amp;3</p>\n", render("%p&== \#{2+2}&\#{2+1}", :escape_html => false))
   end
 
   def test_unescaped_inline_string_interpolation
-    assert_equal("<p>4&3</p>\n", render("%p!== #{2+2}&#{2+1}", :escape_html => true))
-    assert_equal("<p>4&3</p>\n", render("%p!== #{2+2}&#{2+1}", :escape_html => false))
+    assert_equal("<p>4&3</p>\n", render("%p!== \#{2+2}&\#{2+1}", :escape_html => true))
+    assert_equal("<p>4&3</p>\n", render("%p!== \#{2+2}&\#{2+1}", :escape_html => false))
   end
 
   def test_escaped_string_interpolation
-    assert_equal("<p>\n  4&amp;3\n</p>\n", render("%p\n  &== #{2+2}&#{2+1}", :escape_html => true))
-    assert_equal("<p>\n  4&amp;3\n</p>\n", render("%p\n  &== #{2+2}&#{2+1}", :escape_html => false))
+    assert_equal("<p>\n  4&amp;3\n</p>\n", render("%p\n  &== \#{2+2}&\#{2+1}", :escape_html => true))
+    assert_equal("<p>\n  4&amp;3\n</p>\n", render("%p\n  &== \#{2+2}&\#{2+1}", :escape_html => false))
   end
 
   def test_unescaped_string_interpolation
-    assert_equal("<p>\n  4&3\n</p>\n", render("%p\n  !== #{2+2}&#{2+1}", :escape_html => true))
-    assert_equal("<p>\n  4&3\n</p>\n", render("%p\n  !== #{2+2}&#{2+1}", :escape_html => false))
+    assert_equal("<p>\n  4&3\n</p>\n", render("%p\n  !== \#{2+2}&\#{2+1}", :escape_html => true))
+    assert_equal("<p>\n  4&3\n</p>\n", render("%p\n  !== \#{2+2}&\#{2+1}", :escape_html => false))
   end
 
   def test_scripts_should_respect_escape_html_option
diff --git a/test/haml/template_test.rb b/test/haml/template_test.rb
index 97aeaf9e..ce41931b 100644
--- a/test/haml/template_test.rb
+++ b/test/haml/template_test.rb
@@ -4,6 +4,8 @@ require 'haml/template'
 require 'sass/plugin'
 require File.dirname(__FILE__) + '/mocks/article'
 
+require 'action_pack/version'
+
 module Haml::Filters::Test
   include Haml::Filters::Base
 
@@ -28,8 +30,10 @@ class TemplateTest < Test::Unit::TestCase
   TEMPLATE_PATH = File.join(File.dirname(__FILE__), "templates")
   TEMPLATES = %w{         very_basic        standard    helpers
     whitespace_handling   original_engine   list        helpful
-    silent_script         tag_parsing       just_stuff  partials  partial_layout
+    silent_script         tag_parsing       just_stuff  partials
     filters               nuke_outer_whitespace         nuke_inner_whitespace }
+  # partial layouts were introduced in 2.0.0
+  TEMPLATES << 'partial_layout' unless ActionPack::VERSION::MAJOR < 2
 
   def setup
     vars = { 'article' => Article.new, 'foo' => 'value one' }
@@ -70,7 +74,7 @@ class TemplateTest < Test::Unit::TestCase
   end
 
   def assert_renders_correctly(name, &render_method)
-    render_method ||= proc { |name| @base.render(name) }
+    render_method ||= proc { |name| @base.render(:file => name) }
 
     load_result(name).split("\n").zip(render_method[name].split("\n")).each_with_index do |pair, line|
       message = "template: #{name}\nline:     #{line}"
diff --git a/test/haml/templates/helpers.haml b/test/haml/templates/helpers.haml
index f4643ea8..cec95aa1 100644
--- a/test/haml/templates/helpers.haml
+++ b/test/haml/templates/helpers.haml
@@ -35,20 +35,43 @@ click
 %p boom
 - concat "foo\n"
 - haml_buffer.tabulation = 0
-- def url_for(*stuff); stuff.join(' '); end
--# The form URLs must be empty
--# because of a weird bug that causes url_for to misbehave.
-%p
-  = form_tag ''
-- form_tag '' do
-  %div= submit_tag 'save'
-  - @foo = 'value one'
-  = test_partial 'partial'
-- form_for :article, @article, :url => '' do |f|
-  Title:
-  = f.text_field :title
-  Body:
-  = f.text_field :body
+-#
+-# ActionPack pre-2.0 has weird url_for issues here.
+- if ActionPack::VERSION::MAJOR < 2
+  :plain
+    <p>
+      <form action="" method="post">
+    </p>
+    <form action="" method="post">
+      <div><input name="commit" type="submit" value="save" /></div>
+      <p>
+        @foo =
+        value one
+      </p>
+      Toplevel? false
+      <p>
+        @foo =
+        value three
+      </p>
+    </form>
+    <form action="" method="post">
+      Title:
+      <input id="article_title" name="article[title]" size="30" type="text" value="Hello" />
+      Body:
+      <input id="article_body" name="article[body]" size="30" type="text" value="World" />
+    </form>
+- else
+  %p
+    = form_tag ''
+  - form_tag '' do
+    %div= submit_tag 'save'
+    - @foo = 'value one'
+    = test_partial 'partial'
+  - form_for :article, @article, :url => '' do |f|
+    Title:
+    = f.text_field :title
+    Body:
+    = f.text_field :body
 = list_of({:google => 'http://www.google.com'}) do |name, link|
   %a{ :href => link }= name
 %p