diff --git a/README.markdown b/README.markdown
index 91f1ad9..23281d8 100644
--- a/README.markdown
+++ b/README.markdown
@@ -11,7 +11,7 @@ also take a look at the [cloudpanic source][cp] for a reference implementation.
 [Here](http://groups.google.com/group/hyde-dev/browse_thread/thread/2a143bd2081b3322) is
 the initial announcement of the project.
 
-# Installation
+## Installation
 
 Hyde supports both python 2.7 and 2.6.
 
@@ -28,7 +28,7 @@ You can choose to install hyde by running
 
         python setup.py install
 
-# Creating a new hyde site
+## Creating a new hyde site
 
 The new version of Hyde uses the `argparse` module and hence support subcommands.
 
@@ -38,12 +38,12 @@ The new version of Hyde uses the `argparse` module and hence support subcommands
 will create a new hyde site using the test layout.
 
 
-# Generating the hyde site
+## Generating the hyde site
 
         cd ~/test_site
         hyde gen
 
-# Serving the website
+## Serving the website
 
         cd ~/test_site
         hyde serve
@@ -54,7 +54,7 @@ The server also regenerates on demand. As long as the server is running,
 you can make changes to your source and refresh the browser to view the changes.
 
 
-# A brief list of features
+## A brief list of features
 
 
 1. Support for multiple templates (although only `Jinja2` is currently implemented)
@@ -69,7 +69,7 @@ you can make changes to your source and refresh the browser to view the changes.
    now provide additional syntactic sugar to make the content more readable. See
    `blockdown` and `autoextend` plugin for examples.
 
-# Next Steps
+## Next Steps
 
 1. Documentation
 2. Default Layouts
diff --git a/hyde/ext/templates/jinja.py b/hyde/ext/templates/jinja.py
index 2822a7f..f514092 100644
--- a/hyde/ext/templates/jinja.py
+++ b/hyde/ext/templates/jinja.py
@@ -63,6 +63,28 @@ class Markdown(Extension):
         output = caller().strip()
         return markdown(self.environment, output)
 
+class IncludeText(Extension):
+
+    tags = set(['includetext'])
+
+    def parse(self, parser):
+        node = parser.parse_include()
+        return nodes.CallBlock(
+                    self.call_method('_render_include_text', [], [], None, None),
+                    [], [], [node]
+                ).set_lineno(node.lineno)
+
+    def _render_include_text(self, caller=None):
+        if not caller:
+            return ''
+        output = caller().strip()
+        output = markdown(self.environment, output)
+        if 'typogrify' in self.environment.filters:
+            typo = self.environment.filters['typogrify']
+            output = typo(output)
+        return output
+
+
 class HydeLoader(FileSystemLoader):
 
     def __init__(self, sitepath, site, preprocessor=None):
@@ -108,7 +130,8 @@ class Jinja2Template(Template):
         self.env = Environment(loader=self.loader,
                                 undefined=SilentUndefined,
                                 trim_blocks=True,
-                                extensions=[Markdown,
+                                extensions=[IncludeText,
+                                            Markdown,
                                             'jinja2.ext.do',
                                             'jinja2.ext.loopcontrols',
                                             'jinja2.ext.with_'])
diff --git a/hyde/tests/test_jinja2template.py b/hyde/tests/test_jinja2template.py
index 34fb7a5..8985acd 100644
--- a/hyde/tests/test_jinja2template.py
+++ b/hyde/tests/test_jinja2template.py
@@ -151,6 +151,25 @@ def create_test_site():
 def delete_test_site():
     TEST_SITE.delete()
 
+@nottest
+def assert_markdown_typogrify_processed_well(include_text, includer_text):
+    site = Site(TEST_SITE)
+    site.config.plugins = ['hyde.ext.plugins.meta.MetaPlugin']
+    inc = File(TEST_SITE.child('content/inc.md'))
+    inc.write(include_text)
+    site.load()
+    gen = Generator(site)
+    gen.load_template_if_needed()
+    template = gen.template
+    html = template.render(includer_text, {}).strip()
+    assert html
+    q = PyQuery(html)
+    assert "is_processable" not in html
+    assert "This is a" in q("h1").text()
+    assert "heading" in q("h1").text()
+    assert q(".amp").length == 1
+
+
 @with_setup(create_test_site, delete_test_site)
 def test_can_include_templates_with_processing():
     text = """
@@ -172,25 +191,10 @@ Hyde & Jinja.
 {% include "inc.md"  %}
 
 """
-    site = Site(TEST_SITE)
-    site.config.plugins = ['hyde.ext.plugins.meta.MetaPlugin']
-    inc = File(TEST_SITE.child('content/inc.md'))
-    inc.write(text)
-    site.load()
-    gen = Generator(site)
-    gen.load_template_if_needed()
-    template = gen.template
-    html = template.render(text2, {}).strip()
-    assert html
-    q = PyQuery(html)
-    assert "is_processable" not in html
-    assert "This is a" in q("h1").text()
-    assert "heading" in q("h1").text()
-    assert q(".amp").length == 1
+    assert_markdown_typogrify_processed_well(text, text2)
 
 
-#@with_setup(create_test_site, delete_test_site)
-@nottest
+@with_setup(create_test_site, delete_test_site)
 def test_includetext():
     text = """
 ===
@@ -200,24 +204,12 @@ is_processable: False
 This is a heading
 =================
 
-An "&".
+Hyde & Jinja.
 
 """
 
     text2 = """
-{% includetext inc.md  %}
+{% includetext "inc.md"  %}
 
 """
-    site = Site(TEST_SITE)
-    inc = File(TEST_SITE.child('content/inc.md'))
-    inc.write(text)
-
-    site.load()
-    gen = Generator(site)
-    gen.load_template_if_needed()
-    template = gen.template
-    html = template.render(text2, {}).strip()
-    assert html
-    q = PyQuery(html)
-    assert q("h1").length == 1
-    assert q(".amp").length == 1
+    assert_markdown_typogrify_processed_well(text, text2)