diff --git a/src/mathed/Makefile.am b/src/mathed/Makefile.am
index ca542e9668..aa18fccd2b 100644
--- a/src/mathed/Makefile.am
+++ b/src/mathed/Makefile.am
@@ -82,6 +82,8 @@ libmathed_la_SOURCES = \
 	math_sizeinset.h \
 	math_spaceinset.C \
 	math_spaceinset.h \
+	math_specialcharinset.C \
+	math_specialcharinset.h \
 	math_sqrtinset.C \
 	math_sqrtinset.h \
 	math_stackrelinset.C \
diff --git a/src/mathed/math_charinset.C b/src/mathed/math_charinset.C
index bfb6a7c3ab..353f60e9e5 100644
--- a/src/mathed/math_charinset.C
+++ b/src/mathed/math_charinset.C
@@ -14,21 +14,14 @@
 
 
 MathCharInset::MathCharInset(char c)
-	: char_(c), code_(nativeCode(c)), needbs_(false)
+	: char_(c), code_(nativeCode(c))
 {
 //lyxerr << "creating char '" << char_ << "' with code " << int(code_) << endl;
 }
 
 
 MathCharInset::MathCharInset(char c, MathTextCodes t)
-	: char_(c), code_((t == LM_TC_MIN) ? nativeCode(c) : t), needbs_(false)
-{
-//lyxerr << "creating char '" << char_ << "' with code " << int(code_) << endl;
-}
-
-
-MathCharInset::MathCharInset(char c, MathTextCodes t, bool needbs)
-	: char_(c), code_((t == LM_TC_MIN) ? nativeCode(c) : t), needbs_(needbs)
+	: char_(c), code_((t == LM_TC_MIN) ? nativeCode(c) : t)
 {
 //lyxerr << "creating char '" << char_ << "' with code " << int(code_) << endl;
 }
@@ -38,8 +31,6 @@ MathTextCodes MathCharInset::nativeCode(char c) const
 {
 	if (isalpha(c))
 		return LM_TC_VAR;
-	if (strchr("#$%{|}", c))
-		return LM_TC_SPECIAL;
 	//if (strchr("0123456789;:!|[]().,?+/-*<>=", c)
 	return LM_TC_CONST;
 }
@@ -100,8 +91,6 @@ void MathCharInset::writeTrailer(std::ostream & os) const
 
 void MathCharInset::writeRaw(std::ostream & os) const
 {
-	if (needbs_)
-		os << "\\";
 	os << char_;
 }
 
@@ -116,8 +105,6 @@ void MathCharInset::write(std::ostream & os, bool) const
 
 void MathCharInset::writeNormal(std::ostream & os) const
 {
-	if (needbs_)
-		os << "\\";
 	os << char_;
 }
 
diff --git a/src/mathed/math_charinset.h b/src/mathed/math_charinset.h
index 1822ed0e9e..37f6029e07 100644
--- a/src/mathed/math_charinset.h
+++ b/src/mathed/math_charinset.h
@@ -19,8 +19,6 @@ public:
 	///
 	MathCharInset(char c, MathTextCodes t);
 	///
-	MathCharInset(char c, MathTextCodes t, bool needbs);
-	///
 	MathInset * clone() const;
 	///
 	MathTextCodes nativeCode(char c) const;
@@ -60,7 +58,5 @@ private:
 	char char_;
 	/// the font to be used on screen
 	MathTextCodes code_;
-	/// do wee need a backslash when writing LaTeX?
-	bool needbs_;
 };
 #endif
diff --git a/src/mathed/math_cursor.C b/src/mathed/math_cursor.C
index 5241a194a5..8b3acf6140 100644
--- a/src/mathed/math_cursor.C
+++ b/src/mathed/math_cursor.C
@@ -37,6 +37,7 @@
 #include "math_matrixinset.h"
 #include "math_scriptinset.h"
 #include "math_spaceinset.h"
+#include "math_specialcharinset.h"
 #include "math_parser.h"
 
 using std::endl;
@@ -1281,6 +1282,11 @@ void MathCursor::interpret(string const & s)
 		return;
 	}
 
+	if (lastcode_ != LM_TC_TEX && strchr("#$%{|}", c)) {
+		insert(new MathSpecialCharInset(c));	
+		return;
+	}
+
 	if (lastcode_ == LM_TC_TEX) {
 		if (macroName().empty()) {
 			insert(c, LM_TC_TEX);
@@ -1299,11 +1305,6 @@ void MathCursor::interpret(string const & s)
 		return;
 	}
 
-	if (c == '{' || c == '}') {
-		niceInsert(new MathCharInset(c, LM_TC_SPECIAL));
-		return;
-	}
-
 	if (isalpha(c) && (lastcode_ == LM_TC_GREEK || lastcode_ == LM_TC_GREEK1)) {
 		static char const greek[26] =
 			{'A', 'B', 'X',  0 , 'E',  0 ,  0 , 'H', 'I',  0 ,
diff --git a/src/mathed/math_defs.h b/src/mathed/math_defs.h
index b09fb2d06b..3ed2b92ac6 100644
--- a/src/mathed/math_defs.h
+++ b/src/mathed/math_defs.h
@@ -75,8 +75,6 @@ enum MathTextCodes  {
 	LM_TC_TEXTRM,
 	/// Math mode TeX characters ",;:{}"  
 	LM_TC_TEX,
-	/// Special characters "{}&#_%"
-	LM_TC_SPECIAL,
 	/// Internal code when typing greek
 	LM_TC_GREEK,
 	/// Internal code when typing a single greek character
diff --git a/src/mathed/math_factory.C b/src/mathed/math_factory.C
index 342f1e50b7..4078da8ed3 100644
--- a/src/mathed/math_factory.C
+++ b/src/mathed/math_factory.C
@@ -15,6 +15,7 @@
 #include "math_notinset.h"
 #include "math_rootinset.h"
 #include "math_spaceinset.h"
+#include "math_specialcharinset.h"
 #include "math_sqrtinset.h"
 #include "math_symbolinset.h"
 #include "math_stackrelinset.h"
@@ -30,6 +31,8 @@ MathInset * createMathInset(latexkeys const * l)
 			return new MathBigopInset(l);
 		case LM_TK_FUNCLIM:
 			return new MathFuncLimInset(l);
+		case LM_TK_SPECIAL:
+			return new MathSpecialCharInset(l->id);
 		case LM_TK_SYM: 
 			return new MathSymbolInset(l);
 		case LM_TK_STACK:
diff --git a/src/mathed/math_parser.C b/src/mathed/math_parser.C
index 4eadb7bc99..168a438bdf 100644
--- a/src/mathed/math_parser.C
+++ b/src/mathed/math_parser.C
@@ -39,6 +39,7 @@
 #include "math_rootinset.h"
 #include "math_sqrtinset.h"
 #include "math_scriptinset.h"
+#include "math_specialcharinset.h"
 #include "math_sqrtinset.h"
 #include "debug.h"
 #include "support.h"
@@ -682,18 +683,18 @@ void Parser::parse_into(MathArray & array, unsigned flags, MathTextCodes code)
 		}
 
 		else if (t.cat() == catBegin) {
-			array.push_back(new MathCharInset('{', LM_TC_SPECIAL));
+			array.push_back(new MathCharInset('{', LM_TC_TEX));
 		}
 
 		else if (t.cat() == catEnd) {
 			if (flags & FLAG_BRACE_LAST)
 				return;
-			array.push_back(new MathCharInset('}', LM_TC_SPECIAL));
+			array.push_back(new MathCharInset('}', LM_TC_TEX));
 		}
 		
 		else if (t.cat() == catAlign) {
 			lyxerr << "found tab unexpectedly, array: '" << array << "'\n";
-			array.push_back(new MathCharInset('&', LM_TC_SPECIAL));
+			array.push_back(new MathCharInset('&', LM_TC_TEX));
 		}
 		
 		else if (t.cat() == catSuper)
@@ -796,7 +797,7 @@ void Parser::parse_into(MathArray & array, unsigned flags, MathTextCodes code)
 			break;
 
 		else  LM_TK_SPECIAL:
-			array.push_back(new MathCharInset(ival_, LM_TC_SPECIAL));
+			array.push_back(new MathCharInset(ival_, LM_TC_TEX));
 			break;
 */
 		
@@ -849,7 +850,7 @@ void Parser::parse_into(MathArray & array, unsigned flags, MathTextCodes code)
 			int pos;
 			for (pos = array.size() - 1; pos >= 0; --pos) {
 				MathInset * q = array.nextInset(pos);
-				if (q->getChar() == '{' && q->code() == LM_TC_SPECIAL)
+				if (q->getChar() == '{')
 					break;
 			}
 			if (pos >= 0) {
diff --git a/src/mathed/math_specialcharinset.C b/src/mathed/math_specialcharinset.C
new file mode 100644
index 0000000000..4fe90e80fc
--- /dev/null
+++ b/src/mathed/math_specialcharinset.C
@@ -0,0 +1,62 @@
+#ifdef __GNUG__
+#pragma implementation
+#endif
+
+#include "math_specialcharinset.h"
+#include "support/LOstream.h"
+#include "support.h"
+
+
+MathSpecialCharInset::MathSpecialCharInset(char c)
+	: char_(c)
+{}
+
+
+MathInset * MathSpecialCharInset::clone() const
+{   
+	return new MathSpecialCharInset(*this);
+}
+
+
+int MathSpecialCharInset::ascent() const
+{
+	return mathed_char_ascent(LM_TC_CONST, size(), char_);
+}
+
+
+int MathSpecialCharInset::descent() const
+{
+	return mathed_char_descent(LM_TC_CONST, size(), char_);
+}
+
+
+int MathSpecialCharInset::width() const
+{
+	return mathed_char_width(LM_TC_CONST, size(), char_);
+}
+
+
+void MathSpecialCharInset::metrics(MathStyles st) const
+{
+	size_ = st;
+}
+
+
+void MathSpecialCharInset::draw(Painter & pain, int x, int y) const
+{ 
+	xo(x);
+	yo(y);
+	drawChar(pain, LM_TC_CONST, size_, x, y, char_);
+}
+
+
+void MathSpecialCharInset::write(std::ostream & os, bool) const
+{
+	os << "\\" << char_;
+}
+
+
+void MathSpecialCharInset::writeNormal(std::ostream & os) const
+{
+	os << "\\" << char_;
+}
diff --git a/src/mathed/math_specialcharinset.h b/src/mathed/math_specialcharinset.h
new file mode 100644
index 0000000000..6582868f6d
--- /dev/null
+++ b/src/mathed/math_specialcharinset.h
@@ -0,0 +1,41 @@
+// -*- C++ -*-
+#ifndef MATH_SPECIALCHARINSET_H
+#define MATH_SPECIALCHARINSET_H
+
+#include "math_inset.h"
+
+#ifdef __GNUG__
+#pragma interface
+#endif
+
+/** An inset for characters like {, #, and $ that need to be escaped 
+    when written out, but can be inserted by a single keystroke
+    \author André Pönitz
+ */
+
+class MathSpecialCharInset : public MathInset {
+public:
+	///
+	explicit MathSpecialCharInset(char c);
+	///
+	MathInset * clone() const;
+	///
+	void metrics(MathStyles st) const;
+	///
+	void draw(Painter &, int x, int y) const;
+	///
+	void write(std::ostream &, bool fragile) const;
+	///
+	void writeNormal(std::ostream &) const;
+	/// 
+	int ascent() const;
+	///
+	int descent() const;
+	///
+	int width() const;
+
+private:
+	/// the character
+	char char_;
+};
+#endif
diff --git a/src/mathed/support.C b/src/mathed/support.C
index 87d0af49ba..91528084e2 100644
--- a/src/mathed/support.C
+++ b/src/mathed/support.C
@@ -165,7 +165,6 @@ LyXFont WhichFont(MathTextCodes type, MathStyles size)
 		f = Math_Fonts[5];
 		break;
 
-	case LM_TC_SPECIAL: //f = Math_Fonts[0]; break;
 	case LM_TC_TEXTRM:
 	case LM_TC_CONST:
 	case LM_TC_TEX: