Hi,

Tested in Emacs CVS 2009-08-10 and AUCTeX CVS 2009-08-14.

To reproduce:

1. emacs -q

2. Eval:

  (add-hook 'LaTeX-mode-hook 'TeX-fold-mode)
  (add-hook 'TeX-fold-mode-hook 'TeX-fold-buffer)

3. Open the following example.tex

 \documentclass{article}
 \begin{document}
 \section{Section one}
 \label{sec:section-one}
 \section{Section two}
 \label{sec:section-two}
 \end{document}

When the file is open, the screenshot looks like this:

<<inline: TeX-fold-1.png>>


After typing C-c C-o C-b, it looks like this:

<<inline: TeX-fold-2.png>>

Best wishes,

Leo

-- 
Leo's Emacs uptime: 10 days, 16 hours, 41 minutes, 57 seconds
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