Index: source/blender/blenkernel/intern/object.c
===================================================================
--- source/blender/blenkernel/intern/object.c	(revision 13604)
+++ source/blender/blenkernel/intern/object.c	(working copy)
@@ -213,7 +213,6 @@
 		}
 		ob->data= 0;
 	}
-	
 	for(a=0; a<ob->totcol; a++) {
 		if(ob->mat[a]) ob->mat[a]->id.us--;
 	}
@@ -1309,11 +1308,28 @@
 	
 	/* skip constraints, constraintchannels, nla? */
 	
-	
+	/* set object type and link to data */
 	ob->type= target->type;
 	ob->data= target->data;
 	id_us_plus((ID *)ob->data);		/* ensures lib data becomes LIB_EXTERN */
 	
+	/* copy material and index information */
+	ob->actcol= ob->totcol= 0;
+	if (target->totcol > 0 && ob->type==OB_MESH) {
+		int a;
+		Mesh *me=ob->data;
+		for(a=0; a<target->totcol; a++) {
+			if(target->mat[a]) {
+				printf("tyrying to assign via object...\n");
+				assign_material(ob, target->mat[a], ob->actcol);
+			}
+			else if (me->mat[a]) {
+				printf("trying to assign via mesh...\n");
+				assign_material(ob, me->mat[a], ob->actcol);
+			}
+		}
+	}
+	
 	/* type conversions */
 	if(target->type == OB_ARMATURE) {
 		copy_object_pose(ob, target);	/* data copy, object pointers in constraints */
@@ -1322,6 +1338,7 @@
 		
 		armature_set_id_extern(ob);
 	}
+
 }
 
 
Index: source/blender/blenloader/intern/writefile.c
===================================================================
--- source/blender/blenloader/intern/writefile.c	(revision 13604)
+++ source/blender/blenloader/intern/writefile.c	(working copy)
@@ -876,7 +876,6 @@
 static void write_objects(WriteData *wd, ListBase *idbase)
 {
 	Object *ob;
-	
 	ob= idbase->first;
 	while(ob) {
 		if(ob->id.us>0 || wd->current) {
@@ -2006,7 +2005,6 @@
 	write_brushes  (wd, &G.main->brush);
 	if(current==NULL)	
 		write_libraries(wd,  G.main->next); /* no library save in undo */
-
 	if (write_user_block) {
 		write_userdef(wd);
 	}
@@ -2021,7 +2019,6 @@
 
 	blo_join_main(&mainlist);
 	G.main= mainlist.first;
-
 	return endwrite(wd);
 }