diff --git a/lslopt/lsloutput.py b/lslopt/lsloutput.py
index edf428f..f8b535f 100644
--- a/lslopt/lsloutput.py
+++ b/lslopt/lsloutput.py
@@ -456,8 +456,14 @@ class outscript(object):
 
             ret += self.dent() + '{\n'
             self.indentlevel += 1
+            firstnode = True
             for stmt in node.ch:
+                if stmt.nt == 'LAMBDA':
+                    continue
+                if nt == 'STDEF' and not firstnode:
+                    ret += '\n'
                 ret += self.OutCode(stmt)
+                firstnode = False
             self.indentlevel -= 1
             return ret + self.dent() + '}\n'
 
@@ -499,9 +505,18 @@ class outscript(object):
         self.indentlevel = 0
         self.globalmode = False
         self.listmode = False
+        firstnode = True
+        prevnt = None
         for node in self.tree:
+            if node.nt == 'LAMBDA':
+                # these don't produce output, skip
+                continue
+            if not firstnode and (node.nt != 'DECL' or prevnt != 'DECL'):
+                ret += '\n'
             self.globalmode = node.nt == 'DECL'
             ret += self.OutCode(node)
             self.globalmode = False
+            firstnode = False
+            prevnt = node.nt
 
         return ret
diff --git a/testparser.py b/testparser.py
index 5a9c978..f1b56bf 100644
--- a/testparser.py
+++ b/testparser.py
@@ -442,8 +442,8 @@ class Test03_Optimizer(UnitTestCase):
             ''', ['extendedassignment'])
         self.opt.optimize(p)
         out = self.outscript.output(p)
-        self.assertEqual(out, 'integer a;\nx()\n{\n    {\n        '
-            'string s = "x";\n        s = s + (string)a;\n    }\n}\n'
+        self.assertEqual(out, 'integer a;\n\nx()\n{\n    {\n        '
+            'string s = "x";\n        s = s + (string)a;\n    }\n}\n\n'
             'default\n{\n    timer()\n    {\n        x();\n        a = 3;\n'
             '        llOwnerSay((string)a);\n'
             '    }\n}\n'
@@ -462,7 +462,7 @@ class Test03_Optimizer(UnitTestCase):
         self.opt.optimize(p)
         out = self.outscript.output(p)
         self.assertEqual(out, 'key k = "blah";\nlist L = [k, "xxxx", 1.];\n'
-            'float f = 0;\ninteger i;\nvector v = <f,3,4>;\n'
+            'float f = 0;\ninteger i;\nvector v = <f,3,4>;\n\n'
             'default\n{\n    timer()\n    {\n'
             '        f = 4;\n        k = "";\n        i = 0;\n'
             '        v = <((float)0), ((float)0), ((float)0)>;\n        L = [];\n'
@@ -476,7 +476,7 @@ class Test03_Optimizer(UnitTestCase):
             ['extendedglobalexpr'])
         self.opt.optimize(p)
         out = self.outscript.output(p)
-        self.assertEqual(out, 'list L;\nfloat f = 0;\n'
+        self.assertEqual(out, 'list L;\nfloat f = 0;\n\n'
             'default\n{\n    timer()\n    {\n'
             '        L = [];\n        f = 3;\n'
             '        llOwnerSay((string)(L + f));\n'