diff --git a/src/core.js b/src/core.js
index 5c37858a4..ebad0c1b6 100644
--- a/src/core.js
+++ b/src/core.js
@@ -297,33 +297,37 @@ jQuery.fn = jQuery.prototype = {
 				// attributes in IE that are actually only stored
 				// as properties will not be copied (such as the
 				// the name attribute on an input).
-				var clone = this.cloneNode(true),
-					container = document.createElement("div");
-				container.appendChild(clone);
-				return jQuery.clean([container.innerHTML])[0];
+				var html = this.outerHTML;
+				if ( !html ) {
+					var div = this.ownerDocument.createElement("div");
+					div.appendChild( this.cloneNode(true) );
+					html = div.innerHTML;
+				}
+
+				return jQuery.clean([html.replace(/ jQuery\d+="(?:\d+|null)"/g, "").replace(/^\s*/, "")])[0];
 			} else
 				return this.cloneNode(true);
 		});
 
-		// Need to set the expando to null on the cloned set if it exists
-		// removeData doesn't work here, IE removes it from the original as well
-		// this is primarily for IE but the data expando shouldn't be copied over in any browser
-		var clone = ret.find("*").andSelf().each(function(){
-			if ( this[ expando ] !== undefined )
-				this[ expando ] = null;
-		});
-
 		// Copy the events from the original to the clone
-		if ( events === true )
-			this.find("*").andSelf().each(function(i){
-				if (this.nodeType == 3)
-					return;
-				var events = jQuery.data( this, "events" );
+		if ( events === true ) {
+			var orig = this.find("*").andSelf(), i = 0;
 
-				for ( var type in events )
-					for ( var handler in events[ type ] )
-						jQuery.event.add( clone[ i ], type, events[ type ][ handler ], events[ type ][ handler ].data );
+			ret.find("*").andSelf().each(function(){
+				if ( this.nodeName !== orig[i].nodeName )
+					return;
+
+				var events = jQuery.data( orig[i], "events" );
+
+				for ( var type in events ) {
+					for ( var handler in events[ type ] ) {
+						jQuery.event.add( this, type, events[ type ][ handler ], events[ type ][ handler ].data );
+					}
+				}
+
+				i++;
 			});
+		}
 
 		// Return the cloned set
 		return ret;
@@ -462,7 +466,7 @@ jQuery.fn = jQuery.prototype = {
 	html: function( value ) {
 		return value === undefined ?
 			(this[0] ?
-				this[0].innerHTML :
+				this[0].innerHTML.replace(/ jQuery\d+="(?:\d+|null)"/g, "") :
 				null) :
 			this.empty().append( value );
 	},
diff --git a/test/unit/core.js b/test/unit/core.js
index 316d9e4cc..6da62be9a 100644
--- a/test/unit/core.js
+++ b/test/unit/core.js
@@ -1156,7 +1156,7 @@ test("find(String)", function() {
 });
 
 test("clone()", function() {
-	expect(20);
+	expect(28);
 	equals( 'This is a normal link: Yahoo', jQuery('#en').text(), 'Assert text for #en' );
 	var clone = jQuery('#yahoo').clone();
 	equals( 'Try them out:Yahoo', jQuery('#first').append(clone).text(), 'Check for clone' );
@@ -1176,6 +1176,31 @@ test("clone()", function() {
 	// using contents will get comments regular, text, and comment nodes
 	var cl = jQuery("#nonnodes").contents().clone();
 	ok( cl.length >= 2, "Check node,textnode,comment clone works (some browsers delete comments on clone)" );
+
+	var div = jQuery("<div><ul><li>test</li></ul></div>").click(function(){
+		ok( true, "Bound event still exists." );
+	});
+
+	div = div.clone(true).clone(true);
+	equals( div.length, 1, "One element cloned" );
+	equals( div[0].nodeName.toUpperCase(), "DIV", "DIV element cloned" );
+	div.trigger("click");
+
+	div = jQuery("<div/>").append([ document.createElement("table"), document.createElement("table") ]);
+	div.find("table").click(function(){
+		ok( true, "Bound event still exists." );
+	});
+
+	div = div.clone(true);
+	equals( div.length, 1, "One element cloned" );
+	equals( div[0].nodeName.toUpperCase(), "DIV", "DIV element cloned" );
+	div.find("table:last").trigger("click");
+
+	div = jQuery("<div/>").html('<object height="355" width="425">  <param name="movie" value="http://www.youtube.com/v/JikaHBDoV3k&amp;hl=en">  <param name="wmode" value="transparent"> </object>');
+
+	div = div.clone(true);
+	equals( div.length, 1, "One element cloned" );
+	equals( div[0].nodeName.toUpperCase(), "DIV", "DIV element cloned" );
 });
 
 if (!isLocal) {