diff --git a/SubEthaEdit-Mac/AppController.m b/SubEthaEdit-Mac/AppController.m
index e363b6418..dd30b3992 100644
--- a/SubEthaEdit-Mac/AppController.m
+++ b/SubEthaEdit-Mac/AppController.m
@@ -162,6 +162,7 @@ + (void)initialize {
 		}
 		
 		//
+		[defaults setObject:[NSNumber numberWithBool:YES] forKey:@"DontSubmitAndRequestHistory"];
 		[defaults setObject:[NSNumber numberWithBool:YES] forKey:VisibilityPrefKey];
 		[defaults setObject:[NSNumber numberWithBool:YES] forKey:DocumentStateSaveAndLoadWindowPositionKey];
 		[defaults setObject:[NSNumber numberWithBool:YES] forKey:DocumentStateSaveAndLoadTabSettingKey 	  ];
diff --git a/SubEthaEdit-Mac/English.lproj/ReleaseNotes.txt b/SubEthaEdit-Mac/English.lproj/ReleaseNotes.txt
index da7dff526..c8461a59e 100644
--- a/SubEthaEdit-Mac/English.lproj/ReleaseNotes.txt
+++ b/SubEthaEdit-Mac/English.lproj/ReleaseNotes.txt
@@ -1,3 +1,12 @@
+SubEthaEdit 3.5.4
+=================
+
+Changes:
+- Enabled the Web Inspector in the live Web Preview.
+
+Fixes:
+- Fixed issues with Mac OS X Lion.
+
 
 SubEthaEdit 3.5.3
 =================
diff --git a/SubEthaEdit-Mac/GeneralPreferences.m b/SubEthaEdit-Mac/GeneralPreferences.m
index 093bdc48b..ca37b22e1 100644
--- a/SubEthaEdit-Mac/GeneralPreferences.m
+++ b/SubEthaEdit-Mac/GeneralPreferences.m
@@ -42,7 +42,7 @@ + (void)initialize {
 						forKey:HighlightChangesAlonePreferenceKey];
 		[defaultDict setObject:[NSNumber numberWithBool:NO]
 						forKey:OpenNewDocumentInTabKey];
-		[defaultDict setObject:[NSNumber numberWithBool:YES]
+		[defaultDict setObject:[NSNumber numberWithBool:NO]
 						forKey:AlwaysShowTabBarKey];
 		[defaultDict setObject:BASEMODEIDENTIFIER
 						forKey:ModeForNewDocumentsPreferenceKey];
diff --git a/SubEthaEdit-Mac/German.lproj/ReleaseNotes.txt b/SubEthaEdit-Mac/German.lproj/ReleaseNotes.txt
index 877514a39..fbb516789 100644
--- a/SubEthaEdit-Mac/German.lproj/ReleaseNotes.txt
+++ b/SubEthaEdit-Mac/German.lproj/ReleaseNotes.txt
@@ -1,3 +1,12 @@
+SubEthaEdit 3.5.4
+=================
+
+Changes:
+- Enabled the Web Inspector in the live Web Preview.
+
+Fixes:
+- Fixed issues with Mac OS X Lion.
+
 
 SubEthaEdit 3.5.3
 =================
diff --git a/SubEthaEdit-Mac/Info.plist b/SubEthaEdit-Mac/Info.plist
index 6f1a13f3d..90204e5d1 100644
--- a/SubEthaEdit-Mac/Info.plist
+++ b/SubEthaEdit-Mac/Info.plist
@@ -246,7 +246,7 @@
 	<key>CFBundleExecutable</key>
 	<string>${EXECUTABLE_NAME}</string>
 	<key>CFBundleGetInfoString</key>
-	<string>SubEthaEdit 3.5.4ß, © 2003-2010 TheCodingMonkeys</string>
+	<string>SubEthaEdit 3.5.4, © 2003-2010 TheCodingMonkeys</string>
 	<key>CFBundleHelpBookFolder</key>
 	<string>SubEthaEditHelp</string>
 	<key>CFBundleHelpBookName</key>
@@ -262,7 +262,7 @@
 	<key>CFBundlePackageType</key>
 	<string>APPL</string>
 	<key>CFBundleShortVersionString</key>
-	<string>3.5.4ß2</string>
+	<string>3.5.4</string>
 	<key>CFBundleSignature</key>
 	<string>Hdra</string>
 	<key>CFBundleURLTypes</key>
diff --git a/SubEthaEdit-Mac/PlainTextEditor.m b/SubEthaEdit-Mac/PlainTextEditor.m
index 4dde25380..3170e396d 100644
--- a/SubEthaEdit-Mac/PlainTextEditor.m
+++ b/SubEthaEdit-Mac/PlainTextEditor.m
@@ -342,6 +342,10 @@ - (void)awakeFromNib {
     // trigger the notfications for the first time
     [self sessionDidChange:nil];
     [self participantsDidChange:nil];
+    
+    // initial wrapping fix for lion
+    [self toggleWrap:self];
+    [self toggleWrap:self];
 }
 
 - (void)pushSelectedRanges {
diff --git a/SubEthaEdit-Mac/Toolbar.m b/SubEthaEdit-Mac/Toolbar.m
index 766bce202..d791788c0 100644
--- a/SubEthaEdit-Mac/Toolbar.m
+++ b/SubEthaEdit-Mac/Toolbar.m
@@ -14,6 +14,14 @@ @implementation Toolbar
 
 - (id)initWithIdentifier:(NSString *)anIdentifier {
     if ((self=[super initWithIdentifier:anIdentifier])) {
+    	NSDictionary *prefs = [[NSUserDefaults standardUserDefaults] objectForKey:[NSString stringWithFormat:@"NSToolbar Configuration %@", anIdentifier]];
+    	if (prefs) {
+    		[self setDisplayMode:[[prefs objectForKey:@"TB Display Mode"] intValue]];
+    		[self setSizeMode:[[prefs objectForKey:@"TB Icon Size Mode"] intValue]];
+    	} else {
+    		[self setDisplayMode:NSToolbarDisplayModeIconOnly];
+    		[self setSizeMode:NSToolbarSizeModeSmall];
+    	}
         [[NSNotificationCenter defaultCenter] addObserver:self selector:@selector(sizeModeDidChange:) name:@"ToolbarSizeModeDidChangeNotification" object:nil];
         [[NSNotificationCenter defaultCenter] addObserver:self selector:@selector(displayModeDidChange:) name:@"ToolbarDisplayModeDidChangeNotification" object:nil];
     }