Index: modules/taxonomy/taxonomy.admin.inc
===================================================================
RCS file: /cvs/drupal/drupal/modules/taxonomy/taxonomy.admin.inc,v
retrieving revision 1.35
diff -u -p -r1.35 taxonomy.admin.inc
--- modules/taxonomy/taxonomy.admin.inc	5 Nov 2008 14:08:11 -0000	1.35
+++ modules/taxonomy/taxonomy.admin.inc	7 Nov 2008 21:11:58 -0000
@@ -513,7 +513,8 @@ function taxonomy_overview_terms_submit(
   }
 
   // Save all updated terms.
-  foreach ($changed_terms as $term) {
+  foreach ($changed_terms as $changed) {
+    $term = (object) $changed;
     taxonomy_term_save($term);
   }
 
Index: modules/taxonomy/taxonomy.module
===================================================================
RCS file: /cvs/drupal/drupal/modules/taxonomy/taxonomy.module,v
retrieving revision 1.439
diff -u -p -r1.439 taxonomy.module
--- modules/taxonomy/taxonomy.module	7 Nov 2008 18:52:18 -0000	1.439
+++ modules/taxonomy/taxonomy.module	7 Nov 2008 21:12:03 -0000
@@ -361,7 +361,7 @@ function taxonomy_term_save($term) {
     }
   }
   else {
-    db_insert('term_hierarchy')->field(array('tid' => $term_tid, 'parent' => $term->parent))->execute();
+    db_insert('term_hierarchy')->fields(array('tid' => $term_tid, 'parent' => $term->parent))->execute();
   }
 
   db_delete('term_synonym')->condition('tid', $term->tid)->execute();
@@ -685,8 +685,9 @@ function taxonomy_node_save($node, $term
 
         if (!$typed_term_tid) {
           $edit = array('vid' => $vid, 'name' => $typed_term);
-          $status = taxonomy_term_save($edit);
-          $typed_term_tid = $edit['tid'];
+          $term = (object) $edit;
+          $status = taxonomy_term_save($term);
+          $typed_term_tid = $term->tid;
         }
 
         // Defend against duplicate, differently cased tags
Index: modules/taxonomy/taxonomy.test
===================================================================
RCS file: /cvs/drupal/drupal/modules/taxonomy/taxonomy.test,v
retrieving revision 1.10
diff -u -p -r1.10 taxonomy.test
--- modules/taxonomy/taxonomy.test	5 Nov 2008 14:08:11 -0000	1.10
+++ modules/taxonomy/taxonomy.test	7 Nov 2008 21:12:08 -0000
@@ -542,8 +542,7 @@ class TaxonomyTestNodeApiTestCase extend
 }
 
 /**
- * Test term edit form to ensure terms can be edited from administration page
- * and that term name and description are saved.
+ * Test term editing and creation.
  */
 class TermEditTestCase extends DrupalWebTestCase {
   /**
@@ -551,9 +550,8 @@ class TermEditTestCase extends DrupalWeb
    */
   function getInfo() {
     return array(
-      'name'  => 'Term edit test',
-      'description'  => t('Ensure terms can be edited from administration page
-       and that term name and description are saved.'),
+      'name'  => 'Term creation and editing ',
+      'description'  => t('Ensure terms can be created and saved via taxonomy administration and freetagging forms.'),
       'group' => t('Taxonomy'));
   }
 
@@ -563,11 +561,31 @@ class TermEditTestCase extends DrupalWeb
   function setUp() {
     parent::setUp();
     // Prepare a user to do the tests.
-    $web_user = $this->drupalCreateUser(array('administer taxonomy'));
+    $web_user = $this->drupalCreateUser(array('administer taxonomy', 'create article content'));
     $this->drupalLogin($web_user);
   }
 
   /**
+   * Test term creation with a free-tagging vocabulary from the node form.
+   */
+  function testNodeTermCreation() {
+    $terms = array(
+      $this->randomName(),
+      $this->randomName(),
+      $this->randomName(),
+    );
+    $edit = array();
+    $edit['title'] = $this->randomName();
+    $edit['taxonomy[tags][1]'] =  implode(', ', $terms);
+    $edit['body'] = $this->randomName();
+    $this->drupalPost('node/add/article', $edit, t('Save'));
+    $this->assertRaw(t('@type %title has been created.', array('@type' => t('Article'), '%title' => $edit['title'])), t('The node was created successfully'));
+    foreach($terms as $term) {
+      $this->assertText($term, t('The term was saved and appears on the node page'));
+    }
+  }
+
+  /**
    * Save and edit a term and assert that the name and description are correct.
    */
   function testTermEdit() {