(cua--rectangle-set-corners): Ensure that

point is set (and displayed) inside rectangle.
(cua--rectangle-operation): Fix for highlight of empty lines.
(cua--highlight-rectangle): Fix highlight for tabs.
Position cursor at left/right edge of rectangle using new `cursor'
property on overlay strings.
(cua--indent-rectangle): Don't tabify.
(cua-rotate-rectangle): Ignore that point has moved.

lisp/emulation/cua-rect.el

@@ -274,7 +274,11 @@ Knows about CUA rectangle highlighting in addition to standard undo."
     (move-to-column mc)
     (set-mark (point))
     (goto-char pp)
-    (move-to-column pc)
+    (if (and (if (cua--rectangle-right-side)
+		 (= (move-to-column pc) (- pc tab-width))
+	       (> (move-to-column pc) pc))
+	     (not (bolp)))
+	(backward-char 1))
     ))
 
 ;;; Rectangle resizing
@@ -569,6 +573,8 @@ If command is repeated at same position, delete the rectangle."
           (setq end   (min (window-end) end)))
         (goto-char end)
         (setq end (line-end-position))
+	(if (and visible (bolp) (not (eobp)))
+	    (setq end (1+ end)))
         (goto-char start)
         (setq start (line-beginning-position))
         (narrow-to-region start end)
@@ -761,7 +767,7 @@ If command is repeated at same position, delete the rectangle."
       (cua--rectangle-operation nil t nil nil nil ; do not tabify
         '(lambda (s e l r v)
            (let ((rface (if v 'cua-rectangle-face 'cua-rectangle-noselect-face))
-                 overlay bs as)
+                 overlay bs ms as)
 	     (if (= s e) (setq e (1+ e)))
 	     (when (cua--rectangle-virtual-edges)
 	       (let ((lb (line-beginning-position))
@@ -791,23 +797,31 @@ If command is repeated at same position, delete the rectangle."
 			 (setq s (1- s))))
 		   (cond
 		    ((= cr r)
-		     (if (and (/= cr0 (1- cr))
-			      (= (mod cr tab-width) 0))
+		     (if (and (/= pr le)
+			      (/= cr0 (1- cr))
+			      (or bs (/= cr0 (- cr tab-width)))
+			      (/= (mod cr tab-width) 0))
 			 (setq e (1- e))))
 		    ((= cr cl)
-		     (setq bs (concat bs
-				      (propertize
-				       (make-string
-					(- r l)
-					(if cua--virtual-edges-debug ?, ?\s))
-				       'face rface)))
+		     (setq ms (propertize
+			       (make-string
+				(- r l)
+				(if cua--virtual-edges-debug ?, ?\s))
+			       'face rface))
+		     (if (cua--rectangle-right-side)
+			 (put-text-property (1- (length ms)) (length ms) 'cursor t ms)
+		       (put-text-property 0 1 'cursor t ms))
+		     (setq bs (concat bs ms))
 		     (setq rface nil))
-		    (t
+ 		    (t
 		     (setq as (propertize
 			       (make-string
 				(- r cr0 (if (= le pr) 1 0))
 				(if cua--virtual-edges-debug ?~ ?\s))
 			       'face rface))
+		     (if (cua--rectangle-right-side)
+			 (put-text-property (1- (length as)) (length as) 'cursor t as)
+		       (put-text-property 0 1 'cursor t as))
 		     (if (/= pr le)
 			 (setq e (1- e))))))))
 	     ;; Trim old leading overlays.
@@ -826,7 +840,7 @@ If command is repeated at same position, delete the rectangle."
                    (move-overlay overlay s e)
                    (setq old (cdr old)))
                (setq overlay (make-overlay s e)))
-	     (overlay-put overlay 'before-string bs)
+ 	     (overlay-put overlay 'before-string bs)
 	     (overlay-put overlay 'after-string as)
 	     (overlay-put overlay 'face rface)
 	     (setq new (cons overlay new))))))
@@ -839,7 +853,7 @@ If command is repeated at same position, delete the rectangle."
   (let ((col (cua--rectangle-insert-col))
         (pad (cua--rectangle-virtual-edges))
         indent)
-    (cua--rectangle-operation (if clear 'clear 'corners) nil t pad t
+    (cua--rectangle-operation (if clear 'clear 'corners) nil t pad nil
       '(lambda (s e l r)
          (move-to-column col pad)
          (if (and (eolp)
@@ -975,7 +989,9 @@ With prefix argument, the toggle restriction."
 (defun cua-rotate-rectangle ()
   (interactive)
   (cua--rectangle-corner (if (= (cua--rectangle-left) (cua--rectangle-right)) 0 1))
-  (cua--rectangle-set-corners))
+  (cua--rectangle-set-corners)
+  (if (cua--rectangle-virtual-edges)
+      (setq cua--buffer-and-point-before-command nil)))
 
 (defun cua-toggle-rectangle-virtual-edges ()
   (interactive)