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When editing XML files, the editor cannot handle newlines within a tag.
If I start a tag and then hit enter, it will insert a newline after the text, but move my cursor somewhere roughly 4 characters within the current line of text.
This is most noticeable with things like Android layout files.
For example: (| is the cursor, \n is where I hit enter)
mhutch: can you repro this - you've more knowledge about the xml formatting.
That case seems to work for me.
This seems to be working OK in VS for Mac 7.0.1 and Xamarin Studio 6.3.
If you are still experiencing this issue please re-open the bug report. Thanks!