diff --git a/cms/djangoapps/contentstore/tests/factories.py b/cms/djangoapps/contentstore/tests/factories.py
index 3274477098..cb9f451d38 100644
--- a/cms/djangoapps/contentstore/tests/factories.py
+++ b/cms/djangoapps/contentstore/tests/factories.py
@@ -73,6 +73,10 @@ class XModuleItemFactory(Factory):
 
     @classmethod
     def _create(cls, target_class, *args, **kwargs):
+        """
+        kwargs must include parent_location, template. Can contain display_name
+        target_class is ignored
+        """
 
         DETACHED_CATEGORIES = ['about', 'static_tab', 'course_info']
         
diff --git a/cms/djangoapps/contentstore/tests/tests.py b/cms/djangoapps/contentstore/tests/tests.py
index b3f13de998..a8bf5e82a0 100644
--- a/cms/djangoapps/contentstore/tests/tests.py
+++ b/cms/djangoapps/contentstore/tests/tests.py
@@ -22,6 +22,8 @@ from xmodule.modulestore.django import modulestore
 from xmodule.contentstore.django import contentstore
 from xmodule.course_module import CourseDescriptor
 from xmodule.modulestore.xml_exporter import export_to_xml
+from cms.djangoapps.contentstore.utils import get_modulestore
+from xmodule.capa_module import CapaDescriptor
 
 def parse_json(response):
     """Parse response, which is assumed to be json"""
@@ -438,13 +440,23 @@ class ContentStoreTest(TestCase):
         self.assertContains(resp, '/c4x/edX/full/asset/handouts_schematic_tutorial.pdf') 
 
 
+    def test_capa_module(self):
+        """Test that a problem w/ markdown has markdown and uses the right html etc"""
+        CourseFactory.create(org='MITx', course='999', display_name='Robot Super Course')
 
+        problem_data = {
+            'parent_location' : 'i4x://MITx/999/course/Robot_Super_Course',
+            'template' : 'i4x://edx/templates/problem/Empty'
+            }
 
+        resp = self.client.post(reverse('clone_item'), problem_data)
 
-
-        
-
-
-
-
-
+        self.assertEqual(resp.status_code, 200)
+        payload = parse_json(resp)
+        problem_loc = payload['id']
+        problem = get_modulestore(problem_loc).get_item(problem_loc)
+        # should be a CapaDescriptor
+        self.assertIsInstance(problem, CapaDescriptor, "New problem is not a CapaDescriptor")
+        context = problem.get_context()
+        self.assertIn('markdown', context, "markdown is missing")
+        self.assertNotIn('markdown', problem.editable_metadata_fields, "Markdown slipped into the editable metadata fields")
\ No newline at end of file
diff --git a/cms/djangoapps/contentstore/views.py b/cms/djangoapps/contentstore/views.py
index d828993e34..19d74024c7 100644
--- a/cms/djangoapps/contentstore/views.py
+++ b/cms/djangoapps/contentstore/views.py
@@ -271,7 +271,8 @@ def edit_unit(request, location):
             component_templates[template.location.category].append((
                 template.display_name,
                 template.location.url(),
-                'markdown' in template.metadata
+                'markdown' in template.metadata,
+                template.location.name == 'Empty'
             ))
 
     components = [
diff --git a/cms/static/coffee/src/views/module_edit.coffee b/cms/static/coffee/src/views/module_edit.coffee
index 0617b01bb4..b1157f713e 100644
--- a/cms/static/coffee/src/views/module_edit.coffee
+++ b/cms/static/coffee/src/views/module_edit.coffee
@@ -55,7 +55,7 @@ class CMS.Views.ModuleEdit extends Backbone.View
   clickSaveButton: (event) =>
     event.preventDefault()
     data = @module.save()
-    data.metadata = @metadata()
+    data.metadata = _.extend(data.metadata, @metadata())
     $modalCover.hide()
     @model.save(data).done( =>
     #   # showToastMessage("Your changes have been saved.", null, 3)
diff --git a/cms/templates/unit.html b/cms/templates/unit.html
index 40dfd65381..f261be62fa 100644
--- a/cms/templates/unit.html
+++ b/cms/templates/unit.html
@@ -152,13 +152,16 @@
                 % for type, templates in sorted(component_templates.items()):
                 <div class="new-component-templates new-component-${type}">
                     <ul class="new-component-template">
-                        % for name, location, has_markdown in templates:
+                        % for name, location, has_markdown, is_empty in templates:
                         <li>
                             <a href="#" data-location="${location}">
                                 <span class="name">${name} 
                                 % if has_markdown:
                                      MD
                                 % endif
+                                % if is_empty:
+                                    <i>rasa</i>
+                                % endif
                                 </span>
                             </a>
                         </li>
diff --git a/cms/templates/widgets/problem-edit.html b/cms/templates/widgets/problem-edit.html
index 7e7db57bfc..eb4804216e 100644
--- a/cms/templates/widgets/problem-edit.html
+++ b/cms/templates/widgets/problem-edit.html
@@ -1,7 +1,7 @@
 <%include file="metadata-edit.html" />
 <section class="problem-editor editor">
     <div class="row">
-        %if markdown != '' or data == '':
+        %if markdown != '' or data == '<problem>\n</problem>\n':
         <div class="editor-bar">
             <ul class="format-buttons">
                 <li><a href="#" class="multiple-choice-button" data-tooltip="Multiple Choice"><span