I am glad you where thinking logically because I certainly was not
I had a closer look at why the cursor was not moving to the correct location and sure enough there was a small bug in the pasting code, which basically meant the cursor position was not considering the length of the text added for whitespace padding.
But you will be pleased to know that the paste will be working correctly in the next Zeus release
The latest Zeus patch adds support for Python triple quotes.
While not one of my issues, still nice to know. What I did like was the block marking with the mouse not staying stuck if you 'unclicked' over the left edge of the text problem seems to be fixed.