(py-honor-comment-indentation, py-compute-indentation): allow other
than nil or t values.
diff --git a/Misc/python-mode.el b/Misc/python-mode.el
index 19e675f..1b00296 100644
--- a/Misc/python-mode.el
+++ b/Misc/python-mode.el
@@ -100,15 +100,20 @@
 `...' is arbitrary).")
 
 (defvar py-honor-comment-indentation t
-  "*If non-nil, single-# comments are a hint to subsequent line indentation.
-If the previous line is a comment which begins with a single `#'
-character (as opposed to `py-block-comment-prefix' -- normally `##'),
-then it's indentation is used as a hint for this line's indentation.
-When this variable is nil, all comments are skipped for indentation
-purposes, and a faster algorithm is used.
+  "*Controls how comment lines influence subsequent indentation.
 
-Under Emacs 18, or old Emacs 19's, this variable has no effect, and
-the behavior is as if it were always non-nil.")
+When nil, all comment lines are skipped for indentation purposes, and
+in Emacs 19, a faster algorithm is used.
+
+When t, lines that begin with a single `#' are a hint to subsequent
+line indentation.  If the previous line is such a comment line (as
+opposed to one that starts with `py-block-comment-prefix'), then it's
+indentation is used as a hint for this line's indentation.  Lines that
+begin with `py-block-comment-prefix' are ignored for indentation
+purposes.
+
+When not nil or t, comment lines that begin with a `#' are used as
+indentation hints, unless the comment character is in column zero.")
 
 (defvar py-scroll-process-buffer t
   "*Scroll Python process buffer as output arrives.
@@ -864,10 +869,18 @@
 	;; will skip a blank or non-indenting comment line that
 	;; happens to be a continuation line too.  use fast Emacs 19
 	;; function if it's there.
-	(if (and (not py-honor-comment-indentation)
+	(if (and (eq py-honor-comment-indentation nil)
 		 (fboundp 'forward-comment))
 	    (forward-comment (- (point-max)))
-	  (re-search-backward "^[ \t]*\\([^ \t\n#]\\|#[ \t\n]\\)" nil 'move))
+	  (let (done)
+	    (while (not done)
+	      (re-search-backward "^[ \t]*\\([^ \t\n#]\\|#[ \t\n]\\)"
+				  nil 'move)
+	      (setq done (or (eq py-honor-comment-indentation t)
+			     (bobp)
+			     (/= (following-char) ?#)
+			     (not (zerop (current-column)))))
+	      )))
 	;; if we landed inside a string, go to the beginning of that
 	;; string. this handles triple quoted, multi-line spanning
 	;; strings.