diff --git a/docs/index.html b/docs/index.html
index b119389..bf81c2e 100644
--- a/docs/index.html
+++ b/docs/index.html
@@ -19,7 +19,7 @@ Python PDF parser and analyzer
 
 <div align=right class=lastmod>
 <!-- hhmts start -->
-Last Modified: Mon Feb 15 14:41:49 UTC 2010
+Last Modified: Sat Feb 27 03:58:45 UTC 2010
 <!-- hhmts end -->
 </div>
 
@@ -348,7 +348,8 @@ no stream header is displayed for the ease of saving it to a file.
 <hr noshade>
 <h2>Changes</h2>
 <ul>
-<li> 2010/02/15: Bugfixes. Thanks to Sean.
+<li> 2010/02/27: Changed the way of internal layout handling. (LTTextItem -&gt; LTChar)
+<li> 2010/02/15: Several bugfixes. Thanks to Sean.
 <li> 2010/02/13: Bugfix and enhancement. Thanks to Andr&eacute; Auzi.
 <li> 2010/02/07: Several bugfixes. Thanks to Hiroshi Manabe.
 <li> 2010/01/31: JPEG image extraction supported. Page rotation bug fixed. 
diff --git a/pdfminer/converter.py b/pdfminer/converter.py
index 973d3c6..170387d 100644
--- a/pdfminer/converter.py
+++ b/pdfminer/converter.py
@@ -5,9 +5,9 @@ from pdffont import PDFUnicodeNotDefined
 from pdftypes import LITERALS_DCT_DECODE
 from layout import LayoutContainer
 from layout import LTPage, LTText, LTLine, LTRect, LTPolygon
-from layout import LTFigure, LTImage, LTTextItem, LTTextBox, LTTextLine
+from layout import LTFigure, LTImage, LTChar, LTTextBox, LTTextLine
 from utils import apply_matrix_pt, mult_matrix
-from utils import enc, strbbox
+from utils import enc, bbox2str
 
 
 ##  PDFPageAggregator
@@ -97,9 +97,8 @@ class PDFPageAggregator(PDFTextDevice):
             self.cur_item.add(LTPolygon(gstate.linewidth, pts))
         return
 
-    def render_chars(self, matrix, font, fontsize, charspace, scaling, chars):
-        if not chars: return (0, 0)
-        item = LTTextItem(matrix, font, fontsize, charspace, scaling, chars)
+    def render_char(self, matrix, font, fontsize, scaling, cid):
+        item = LTChar(matrix, font, fontsize, scaling, cid)
         self.cur_item.add(item)
         return item.adv
 
@@ -202,15 +201,10 @@ class HTMLConverter(PDFConverter):
                     self.outfp.write('<a name="%s">Page %s</a></div>\n' % (page.id, page.id))
                 for child in item:
                     render(child)
-            elif isinstance(item, LTTextItem):
-                if item.vertical:
-                    wmode = 'tb-rl'
-                else:
-                    wmode = 'lr-tb'
-                self.outfp.write('<span style="position:absolute; writing-mode:%s;'
-                                 ' left:%dpx; top:%dpx; font-size:%dpx;">' %
-                                 (wmode, item.x0*self.scale, (self.yoffset-item.y1)*self.scale,
-                                  item.fontsize*self.scale))
+            elif isinstance(item, LTChar):
+                self.outfp.write('<span style="position:absolute; left:%dpx; top:%dpx; font-size:%dpx;">' %
+                                 (item.x0*self.scale, (self.yoffset-item.y1)*self.scale,
+                                  item.get_size()*self.scale))
                 self.write(item.text)
                 self.outfp.write('</span>\n')
                 if self.debug:
@@ -271,35 +265,40 @@ class XMLConverter(PDFConverter):
         def render(item):
             if isinstance(item, LTPage):
                 self.outfp.write('<page id="%s" bbox="%s" rotate="%d">\n' %
-                                 (item.id, strbbox(item.bbox), item.rotate))
+                                 (item.id, bbox2str(item.bbox), item.rotate))
                 for child in item:
                     render(child)
                 self.outfp.write('</page>\n')
             elif isinstance(item, LTLine) and item.direction:
-                self.outfp.write('<line linewidth="%d" direction="%s" bbox="%s" />\n' % (item.linewidth, item.direction, strbbox(item.bbox)))
+                self.outfp.write('<line linewidth="%d" direction="%s" bbox="%s" />\n' %
+                                 (item.linewidth, item.direction, bbox2str(item.bbox)))
             elif isinstance(item, LTRect):
-                self.outfp.write('<rect linewidth="%d" bbox="%s" />\n' % (item.linewidth, strbbox(item.bbox)))
+                self.outfp.write('<rect linewidth="%d" bbox="%s" />\n' %
+                                 (item.linewidth, bbox2str(item.bbox)))
             elif isinstance(item, LTPolygon):
-                self.outfp.write('<polygon linewidth="%d" bbox="%s" pts="%s"/>\n' % (item.linewidth, strbbox(item.bbox), item.get_pts()))
+                self.outfp.write('<polygon linewidth="%d" bbox="%s" pts="%s"/>\n' %
+                                 (item.linewidth, bbox2str(item.bbox), item.get_pts()))
             elif isinstance(item, LTFigure):
-                self.outfp.write('<figure id="%s" bbox="%s">\n' % (item.id, strbbox(item.bbox)))
+                self.outfp.write('<figure id="%s" bbox="%s">\n' %
+                                 (item.id, bbox2str(item.bbox)))
                 for child in item:
                     render(child)
                 self.outfp.write('</figure>\n')
             elif isinstance(item, LTTextLine):
-                self.outfp.write('<textline bbox="%s">\n' % strbbox(item.bbox))
+                self.outfp.write('<textline bbox="%s">\n' % bbox2str(item.bbox))
                 for child in item:
                     render(child)
                 self.outfp.write('</textline>\n')
             elif isinstance(item, LTTextBox):
-                self.outfp.write('<textbox id="%s" bbox="%s">\n' % (item.id, strbbox(item.bbox)))
+                self.outfp.write('<textbox id="%s" bbox="%s">\n' %
+                                 (item.id, bbox2str(item.bbox)))
                 for child in item:
                     render(child)
                 self.outfp.write('</textbox>\n')
-            elif isinstance(item, LTTextItem):
-                self.outfp.write('<text font="%s" vertical="%s" bbox="%s" fontsize="%.3f">' %
+            elif isinstance(item, LTChar):
+                self.outfp.write('<text font="%s" vertical="%s" bbox="%s" size="%.3f">' %
                                  (enc(item.font.fontname), item.is_vertical(),
-                                  strbbox(item.bbox), item.fontsize))
+                                  bbox2str(item.bbox), item.get_size()))
                 self.write(item.text)
                 self.outfp.write('</text>\n')
             elif isinstance(item, LTText):
@@ -310,7 +309,8 @@ class XMLConverter(PDFConverter):
                     name = self.write_image(item)
                     if name:
                         x = 'name="%s" ' % enc(name)
-                self.outfp.write('<image %stype="%s" width="%d" height="%d" />\n' % (x, item.type, item.width, item.height))
+                self.outfp.write('<image %stype="%s" width="%d" height="%d" />\n' %
+                                 (x, item.type, item.width, item.height))
             else:
                 assert 0, item
             return
@@ -352,7 +352,7 @@ class TagExtractor(PDFDevice):
 
     def begin_page(self, page, ctm):
         self.outfp.write('<page id="%s" bbox="%s" rotate="%d">' %
-                         (self.pageno, strbbox(page.mediabox), page.rotate))
+                         (self.pageno, bbox2str(page.mediabox), page.rotate))
         return
 
     def end_page(self, page):
diff --git a/pdfminer/layout.py b/pdfminer/layout.py
index c889b16..a3e6414 100644
--- a/pdfminer/layout.py
+++ b/pdfminer/layout.py
@@ -2,7 +2,8 @@
 import sys
 from sys import maxint as INF
 from utils import apply_matrix_norm, apply_matrix_pt
-from utils import bsearch, strbbox
+from utils import bsearch, bbox2str, matrix2str
+from pdffont import PDFUnicodeNotDefined
 
 
 
@@ -136,7 +137,7 @@ class LayoutItem(object):
         return
 
     def __repr__(self):
-        return ('<item bbox=%s>' % strbbox(self.bbox))
+        return ('<item bbox=%s>' % bbox2str(self.bbox))
 
     def set_bbox(self, (x0,y0,x1,y1)):
         if x1 < x0: (x0,x1) = (x1,x0)
@@ -203,7 +204,7 @@ class LayoutContainer(LayoutItem):
         return
 
     def __repr__(self):
-        return ('<group %s>' % strbbox(self.bbox))
+        return ('<group %s>' % bbox2str(self.bbox))
 
     def __iter__(self):
         return iter(self.objs)
@@ -326,55 +327,59 @@ class LTAnon(LTText):
         return 0
 
 
-##  LTTextItem
+##  LTChar
 ##
-class LTTextItem(LayoutItem, LTText):
+class LTChar(LayoutItem, LTText):
 
     debug = 1
 
-    def __init__(self, matrix, font, fontsize, charspace, scaling, chars):
-        assert chars
+    def __init__(self, matrix, font, fontsize, scaling, cid):
         self.matrix = matrix
         self.font = font
+        self.fontsize = fontsize
         self.vertical = font.is_vertical()
-        self.text = ''.join( char for (char,_) in chars )
-        adv = sum( font.char_width(cid) for (_,cid) in chars )
-        adv = (adv * fontsize + (len(chars)-1)*charspace) * scaling
-        #size = (font.get_ascent() - font.get_descent()) * fontsize
-        size = font.get_size() * fontsize
-        (_,_,_,_,tx,ty) = self.matrix
-        if not self.vertical:
-            # horizontal text
-            self.adv = (adv, 0)
-            (dx,dy) = apply_matrix_norm(self.matrix, (adv,size))
-            (_,descent) = apply_matrix_norm(self.matrix, (0,font.get_descent() * fontsize))
+        self.adv = font.char_width(cid) * fontsize * scaling
+        try:
+            text = font.to_unichr(cid)
+        except PDFUnicodeNotDefined:
+            text = '?'
+        LTText.__init__(self, text)
+        # compute the boundary rectangle.
+        if self.vertical:
+            # vertical
+            size = font.get_size() * fontsize
+            displacement = (1000 - font.char_disp(cid)) * fontsize * .001
+            (_,displacement) = apply_matrix_norm(self.matrix, (0, displacement))
+            (dx,dy) = apply_matrix_norm(self.matrix, (size, self.adv))
+            (_,_,_,_,tx,ty) = self.matrix
+            tx -= dx/2
+            ty += displacement
+            bbox = (tx, ty+dy, tx+dx, ty)
+        else:
+            # horizontal
+            size = font.get_size() * fontsize
+            descent = font.get_descent() * fontsize
+            (_,descent) = apply_matrix_norm(self.matrix, (0, descent))
+            (dx,dy) = apply_matrix_norm(self.matrix, (self.adv, size))
+            (_,_,_,_,tx,ty) = self.matrix
             ty += descent
             bbox = (tx, ty, tx+dx, ty+dy)
-        else:
-            # vertical text
-            self.adv = (0, adv)
-            (_,cid) = chars[0]
-            (_,disp) = apply_matrix_norm(self.matrix, (0, (1000-font.char_disp(cid))*fontsize*.001))
-            (dx,dy) = apply_matrix_norm(self.matrix, (size,adv))
-            tx -= dx/2
-            ty += disp
-            bbox = (tx, ty+dy, tx+dx, ty)
-        self.fontsize = max(apply_matrix_norm(self.matrix, (size,size)))
         LayoutItem.__init__(self, bbox)
         return
 
     def __repr__(self):
         if self.debug:
-            return ('<text matrix=%s font=%r fontsize=%.1f bbox=%s adv=%s text=%r>' %
-                    ('[%.1f, %.1f, %.1f, %.1f, (%.1f, %.1f)]' % self.matrix,
-                     self.font, self.fontsize, strbbox(self.bbox),
-                     '(%.1f, %.1f)' % self.adv,
-                     self.text))
+            return ('<char matrix=%s font=%r fontsize=%.1f bbox=%s adv=%s text=%r>' %
+                    (matrix2str(self.matrix), self.font, self.fontsize,
+                     bbox2str(self.bbox), self.adv, self.text))
         else:
-            return '<text %r>' % self.text
+            return '<char %r>' % self.text
 
     def get_margin(self):
-        return abs(self.fontsize)
+        return min(self.width, self.height)
+
+    def get_size(self):
+        return max(self.width, self.height)
 
     def is_vertical(self):
         return self.vertical
@@ -383,7 +388,7 @@ class LTTextItem(LayoutItem, LTText):
         (a,b,c,d,e,f) = self.matrix
         return 0 < a*d and b*c <= 0
 
-
+    
 ##  LTFigure
 ##
 class LTFigure(LayoutContainer):
@@ -397,7 +402,8 @@ class LTFigure(LayoutContainer):
         return
 
     def __repr__(self):
-        return ('<figure id=%r bbox=%s matrix=%r>' % (self.id, strbbox(self.bbox), self.matrix))
+        return ('<figure id=%r bbox=%s matrix=%s>' %
+                (self.id, bbox2str(self.bbox), matrix2str(self.matrix)))
 
 
 ##  LTTextLine
@@ -411,7 +417,7 @@ class LTTextLine(LayoutContainer):
         return
 
     def __repr__(self):
-        return ('<textline %s(%s)>' % (strbbox(self.bbox), self.direction))
+        return ('<textline %s(%s)>' % (bbox2str(self.bbox), self.direction))
 
     def get_margin(self):
         return min(self.width, self.height)
@@ -428,7 +434,7 @@ class LTTextLine(LayoutContainer):
         if self.direction == 'V':
             y0 = -INF
             for obj in sorted(self.objs, key=lambda obj: -obj.y1):
-                if isinstance(obj, LTTextItem) and self.word_margin:
+                if isinstance(obj, LTChar) and self.word_margin:
                     margin = self.word_margin * obj.get_margin()
                     if obj.y1+margin < y0:
                         objs.append(LTAnon(' '))
@@ -437,7 +443,7 @@ class LTTextLine(LayoutContainer):
         else:
             x1 = INF
             for obj in sorted(self.objs, key=lambda obj: obj.x0):
-                if isinstance(obj, LTTextItem) and self.word_margin:
+                if isinstance(obj, LTChar) and self.word_margin:
                     margin = self.word_margin * obj.get_margin()
                     if x1 < obj.x0-margin:
                         objs.append(LTAnon(' '))
@@ -461,7 +467,7 @@ class LTTextBox(LayoutContainer):
         return
 
     def __repr__(self):
-        return ('<textbox %s(%s) %r...>' % (strbbox(self.bbox), self.direction, self.get_text()[:20]))
+        return ('<textbox %s(%s) %r...>' % (bbox2str(self.bbox), self.direction, self.get_text()[:20]))
 
     def get_text(self):
         return ''.join( obj.get_text() for obj in self.objs if isinstance(obj, LTTextLine) )
@@ -517,7 +523,7 @@ class LTPage(LayoutContainer):
         return
 
     def __repr__(self):
-        return ('<page id=%r bbox=%s rotate=%r>' % (self.id, strbbox(self.bbox), self.rotate))
+        return ('<page id=%r bbox=%s rotate=%r>' % (self.id, bbox2str(self.bbox), self.rotate))
 
     def analyze_layout(self, laparams):
         textobjs = []
diff --git a/pdfminer/pdfdevice.py b/pdfminer/pdfdevice.py
index 24e097c..ebba2a3 100644
--- a/pdfminer/pdfdevice.py
+++ b/pdfminer/pdfdevice.py
@@ -59,9 +59,6 @@ class PDFTextDevice(PDFDevice):
             print >>sys.stderr, 'undefined: %r, %r' % (cidcoding, cid)
         return '?'
 
-    def render_chars(self, matrix, font, fontsize, charspace, scaling, chars):
-        return (0, 0)
-
     def render_string(self, textstate, seq):
         matrix = mult_matrix(textstate.matrix, self.ctm)
         font = textstate.font
@@ -82,76 +79,39 @@ class PDFTextDevice(PDFDevice):
     
     def render_string_horizontal(self, seq, matrix, (x,y), 
                                  font, fontsize, scaling, charspace, wordspace, dxscale):
-        chars = []
-        needspace = False
+        needcharspace = False
         for obj in seq:
             if isinstance(obj, int) or isinstance(obj, float):
-                (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                            fontsize, charspace, scaling, chars)
-                x += dx - obj*dxscale
-                y += dy
-                chars = []
-                needspace = False
+                x -= obj*dxscale
+                needcharspace = False
             else:
                 for cid in font.decode(obj):
-                    try:
-                        char = font.to_unichr(cid)
-                    except PDFUnicodeNotDefined, e:
-                        (cidcoding, cid) = e.args
-                        char = self.handle_undefined_char(cidcoding, cid)
-                    chars.append((char, cid))
+                    if needcharspace:
+                        x += charspace
+                    x += self.render_char(translate_matrix(matrix, (x,y)),
+                                          font, fontsize, scaling, cid)
+                    needcharspace = True
                     if cid == 32 and wordspace:
-                        if needspace:
-                            x += charspace
-                        (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                                    fontsize, charspace, scaling, chars)
-                        needspace = True
-                        x += dx + wordspace
-                        y += dy
-                        chars = []
-        if chars:
-            if needspace:
-                x += charspace
-            (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                        fontsize, charspace, scaling, chars)
-            x += dx
-            y += dy
+                        x += wordspace
         return (x, y)
 
     def render_string_vertical(self, seq, matrix, (x,y), 
                                font, fontsize, scaling, charspace, wordspace, dxscale):
-        chars = []
-        needspace = False
+        needcharspace = False
         for obj in seq:
             if isinstance(obj, int) or isinstance(obj, float):
-                (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                            fontsize, charspace, scaling, chars)
-                x += dx
-                y += dy - obj*dxscale
-                chars = []
-                needspace = False
+                y -= obj*dxscale
+                needcharspace = False
             else:
                 for cid in font.decode(obj):
-                    try:
-                        char = font.to_unichr(cid)
-                    except PDFUnicodeNotDefined, e:
-                        (cidcoding, cid) = e.args
-                        char = self.handle_undefined_char(cidcoding, cid)
-                    chars.append((char, cid))
+                    if needcharspace:
+                        y += charspace
+                    y += self.render_char(translate_matrix(matrix, (x,y)), 
+                                          font, fontsize, scaling, cid)
+                    needcharspace = True
                     if cid == 32 and wordspace:
-                        if needspace:
-                            y += charspace
-                        (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                                    fontsize, charspace, scaling, chars)
-                        needspace = True
-                        x += dx
-                        y += dy + wordspace
-                        chars = []
-        if chars:
-            if needspace:
-                y += charspace
-            (dx,dy) = self.render_chars(translate_matrix(matrix, (x,y)), font,
-                                        fontsize, charspace, scaling, chars)
-            x += dx
-            y += dy
+                        y += wordspace
         return (x, y)
+
+    def render_char(self, matrix, font, fontsize, scaling, cid):
+        return 0
diff --git a/pdfminer/utils.py b/pdfminer/utils.py
index 06e9785..6347657 100644
--- a/pdfminer/utils.py
+++ b/pdfminer/utils.py
@@ -136,9 +136,12 @@ def enc(x, codec='ascii'):
     x = x.replace('&','&amp;').replace('>','&gt;').replace('<','&lt;').replace('"','&quot;')
     return x.encode(codec, 'xmlcharrefreplace')
 
-def strbbox((x0,y0,x1,y1)):
+def bbox2str((x0,y0,x1,y1)):
     return '%.3f,%.3f,%.3f,%.3f' % (x0, y0, x1, y1)
 
+def matrix2str((a,b,c,d,e,f)):
+    return '[%.2f,%.2f,%.2f,%.2f, (%.2f,%.2f)]' % (a,b,c,d,e,f)
+
 
 ##  ObjIdRange
 ##