Hi Taco,

I've found the miscreant. In my stylesheet I have
\def\eDroppedCaps
     {\DroppedCaps
         {} {ptmr8r}
         {2.2\baselineskip} {2pt} {\baselineskip} {2}}

and in my XML I have:
\defineXMLcommand     [dropped-caps] \eDroppedCaps

and for some reason this screws up all paragraph indenting. Has this  
changed recently, because it used to work?

Christopher