diff --git a/Cargo.lock b/Cargo.lock
index c217c1b..fd4e4fe 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1273,7 +1273,7 @@ checksum = "9b4f627cb1b25917193a259e49bdad08f671f8d9708acfd5fe0a8c1455d87220"
 
 [[package]]
 name = "picloud"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -1297,7 +1297,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-executor"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "anyhow",
  "picloud-executor-core",
@@ -1309,7 +1309,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-executor-core"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "chrono",
  "picloud-shared",
@@ -1323,7 +1323,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-manager"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "anyhow",
  "picloud-manager-core",
@@ -1335,7 +1335,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-manager-core"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "async-trait",
  "axum",
@@ -1353,7 +1353,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-orchestrator"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "anyhow",
  "picloud-orchestrator-core",
@@ -1365,7 +1365,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-orchestrator-core"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "async-trait",
  "axum",
@@ -1384,7 +1384,7 @@ dependencies = [
 
 [[package]]
 name = "picloud-shared"
-version = "0.5.0"
+version = "0.5.1"
 dependencies = [
  "async-trait",
  "chrono",
diff --git a/dashboard/src/lib/rhai/ast.ts b/dashboard/src/lib/rhai/ast.ts
index bba0526..78201d7 100644
--- a/dashboard/src/lib/rhai/ast.ts
+++ b/dashboard/src/lib/rhai/ast.ts
@@ -272,4 +272,8 @@ export interface ParseResult {
 	program: BlockExpr;
 	errors: ParseError[];
 	comments: Comment[];
+	// Offsets at which the source contained a blank line (a whitespace
+	// run with two or more newlines). One entry per blank run; the
+	// formatter consults these to preserve user-intent vertical grouping.
+	blankLines: number[];
 }
diff --git a/dashboard/src/lib/rhai/format.test.ts b/dashboard/src/lib/rhai/format.test.ts
index e0b62f8..faee870 100644
--- a/dashboard/src/lib/rhai/format.test.ts
+++ b/dashboard/src/lib/rhai/format.test.ts
@@ -22,11 +22,10 @@ describe('format — basic shape', () => {
 		);
 	});
 
-	it('separates top-level fn decls with a blank line', () => {
+	it('does not insert a blank between fn decls the user did not separate', () => {
+		// Strict preserve-only policy: no source blank => no emitted blank.
 		const out = formatted('fn a(){1}fn b(){2}');
-		expect(out).toBe(
-			'fn a() {\n\t1\n}\n\nfn b() {\n\t2\n}\n'
-		);
+		expect(out).toBe('fn a() {\n\t1\n}\nfn b() {\n\t2\n}\n');
 	});
 
 	it('renders if / else if / else with blocks', () => {
@@ -87,16 +86,48 @@ describe('format — reflow', () => {
 	});
 });
 
+describe('format — blank-line preservation', () => {
+	it('preserves a single blank line between statements', () => {
+		const src = 'let a = 1;\n\nlet b = 2;';
+		expect(formatted(src)).toBe('let a = 1;\n\nlet b = 2;\n');
+	});
+
+	it('collapses multiple blank lines to a single one', () => {
+		const src = 'let a = 1;\n\n\n\nlet b = 2;';
+		expect(formatted(src)).toBe('let a = 1;\n\nlet b = 2;\n');
+	});
+
+	it('preserves blanks inside block bodies', () => {
+		const src = 'fn process() {\n\tlet a = 1;\n\n\tlet b = 2;\n}';
+		expect(formatted(src)).toBe('fn process() {\n\tlet a = 1;\n\n\tlet b = 2;\n}\n');
+	});
+
+	it('does not invent blanks between adjacent statements', () => {
+		expect(formatted('let a=1;let b=2;')).toBe('let a = 1;\nlet b = 2;\n');
+	});
+});
+
 describe('format — parse failures', () => {
-	it('returns ok=false with the first parse error', () => {
-		const r = format('let = ;');
+	it('returns ok=false with a Rhai-flavored message and 1-based line/column', () => {
+		// Pattern from the user complaint: `let;` should surface as
+		// "Expecting name of a variable" at line/column.
+		const r = format('let msg = ctx.request.params.name;\nlet;\n');
 		expect(r.ok).toBe(false);
 		if (!r.ok) {
-			expect(typeof r.error.message).toBe('string');
+			expect(r.error.message).toBe('Expecting name of a variable');
+			expect(r.error.line).toBe(2);
+			expect(r.error.column).toBe(4);
 			expect(r.error.offset).toBeGreaterThanOrEqual(0);
 		}
 	});
 
+	it('reports script-incomplete on truncated input', () => {
+		// `fn` alone — the parser expects a function name and hits EOF.
+		const r = format('fn');
+		expect(r.ok).toBe(false);
+		if (!r.ok) expect(r.error.message).toMatch(/script is incomplete/i);
+	});
+
 	it('does not partially rewrite when parsing fails', () => {
 		const r = format('let x = 1; this is garbage');
 		expect(r.ok).toBe(false);
diff --git a/dashboard/src/lib/rhai/format.ts b/dashboard/src/lib/rhai/format.ts
index e80fb12..ac6bb5f 100644
--- a/dashboard/src/lib/rhai/format.ts
+++ b/dashboard/src/lib/rhai/format.ts
@@ -15,9 +15,14 @@
 //     the indent of the statement it precedes — same-line inline
 //     positioning is intentionally NOT recovered; the goal is "verbatim
 //     text", not "byte-exact placement".
+//   * Blank lines between statements are preserved when the user wrote
+//     them; multiples collapse to one. The formatter never *adds* blank
+//     lines the user didn't write (rustfmt's default policy applied
+//     strictly — no forced separation between top-level fn decls).
 //   * Block bodies always use multi-line braces. `{}` for empty.
 //   * If parse errors are reported by the parser, the formatter refuses
-//     to emit anything and returns the first error.
+//     to emit anything and returns the first error with line / column
+//     coordinates (1-based, matching Rhai's own diagnostic format).
 
 import type {
 	BlockExpr,
@@ -36,21 +41,47 @@ const PRINT_WIDTH = 100;
 
 export type FormatResult =
 	| { ok: true; text: string }
-	| { ok: false; error: { message: string; offset: number } };
+	| { ok: false; error: FormatError };
+
+export interface FormatError {
+	message: string;
+	// 1-based line and column, matching Rhai's own diagnostic format.
+	line: number;
+	column: number;
+	// Byte offset retained for callers that want to jump the editor
+	// cursor (CodeMirror works in offsets, not line/col).
+	offset: number;
+}
 
 export function format(source: string): FormatResult {
 	const result = parse(source);
 	if (result.errors.length > 0) {
-		const first = result.errors[0];
-		return { ok: false, error: errorPayload(first) };
+		return { ok: false, error: errorPayload(source, result.errors[0]) };
 	}
 	const p = new Printer(result);
 	p.printProgram();
 	return { ok: true, text: p.finish() };
 }
 
-function errorPayload(e: ParseError): { message: string; offset: number } {
-	return { message: e.message, offset: e.start };
+function errorPayload(source: string, e: ParseError): FormatError {
+	const { line, column } = lineColAt(source, e.start);
+	return { message: e.message, line, column, offset: e.start };
+}
+
+// Convert a byte offset into 1-based (line, column). Used for rendering
+// parser errors in a way that matches Rhai's own diagnostic format
+// (e.g. "Expecting name of a variable (line 2, position 4)").
+function lineColAt(source: string, offset: number): { line: number; column: number } {
+	let line = 1;
+	let lineStart = 0;
+	const limit = Math.min(offset, source.length);
+	for (let i = 0; i < limit; i++) {
+		if (source.charCodeAt(i) === 10) {
+			line++;
+			lineStart = i + 1;
+		}
+	}
+	return { line, column: limit - lineStart + 1 };
 }
 
 class Printer {
@@ -125,19 +156,27 @@ class Printer {
 
 	printProgram(): void {
 		const stmts = this.result.program.stmts;
-		let prevWasFn = false;
 		for (let i = 0; i < stmts.length; i++) {
 			const stmt = stmts[i];
 			if (i > 0) {
-				if (prevWasFn || stmt.kind === 'FnDecl') this.blankLine();
+				if (this.hadBlankBetween(stmts[i - 1].end, stmt.start)) this.blankLine();
 				else this.newline();
 			}
 			this.drainCommentsBefore(stmt.start);
 			this.printStmt(stmt);
-			prevWasFn = stmt.kind === 'FnDecl';
 		}
 	}
 
+	// "Did the user leave a blank line in this gap?" Consulted between
+	// every pair of emitted statements to decide whether to keep the
+	// vertical separator the source originally had.
+	private hadBlankBetween(prevEnd: number, currStart: number): boolean {
+		for (const offset of this.result.blankLines) {
+			if (offset >= prevEnd && offset < currStart) return true;
+		}
+		return false;
+	}
+
 	// ---------------------------------------------------------- statements
 
 	private printStmt(stmt: Stmt): void {
@@ -231,7 +270,11 @@ class Printer {
 		this.emit('{');
 		this.indent++;
 		for (let i = 0; i < block.stmts.length; i++) {
-			this.newline();
+			if (i > 0 && this.hadBlankBetween(block.stmts[i - 1].end, block.stmts[i].start)) {
+				this.blankLine();
+			} else {
+				this.newline();
+			}
 			this.drainCommentsBefore(block.stmts[i].start);
 			this.printStmt(block.stmts[i]);
 		}
diff --git a/dashboard/src/lib/rhai/index.ts b/dashboard/src/lib/rhai/index.ts
index e8e803f..71d2b87 100644
--- a/dashboard/src/lib/rhai/index.ts
+++ b/dashboard/src/lib/rhai/index.ts
@@ -5,7 +5,7 @@ export { parse } from './parser';
 export { tokenize, KEYWORDS } from './lexer';
 export { buildSymbolTable, renderFnSignature } from './symbols';
 export { format } from './format';
-export type { FormatResult } from './format';
+export type { FormatError, FormatResult } from './format';
 export type { Decl, DeclKind, Scope, SymbolTable, Usage } from './symbols';
 export type {
 	BlockExpr,
diff --git a/dashboard/src/lib/rhai/lexer.ts b/dashboard/src/lib/rhai/lexer.ts
index 79ff8c2..929edd7 100644
--- a/dashboard/src/lib/rhai/lexer.ts
+++ b/dashboard/src/lib/rhai/lexer.ts
@@ -88,20 +88,38 @@ const PUNCTS = new Set(['(', ')', '{', '}', '[', ']', ';', ',', '.', ':', '#']);
 export interface LexResult {
 	tokens: Token[];
 	comments: Comment[];
+	// Offsets at which the source contained at least one blank line (a
+	// run of whitespace with two or more newlines). One entry per blank
+	// run, pointing at the second-newline position. Used by the formatter
+	// to preserve user-intent vertical grouping.
+	blankLines: number[];
 }
 
 export function tokenize(source: string): LexResult {
 	const tokens: Token[] = [];
 	const comments: Comment[] = [];
+	const blankLines: number[] = [];
 	let i = 0;
 	const n = source.length;
 
 	while (i < n) {
 		const ch = source[i];
 
-		// Whitespace
+		// Whitespace — coalesce runs and record blank-line offsets.
 		if (ch === ' ' || ch === '\t' || ch === '\n' || ch === '\r') {
-			i++;
+			let newlines = 0;
+			let blankAt = -1;
+			while (i < n) {
+				const c = source[i];
+				if (c === '\n') {
+					newlines++;
+					if (newlines === 2) blankAt = i;
+				} else if (c !== ' ' && c !== '\t' && c !== '\r') {
+					break;
+				}
+				i++;
+			}
+			if (blankAt >= 0) blankLines.push(blankAt);
 			continue;
 		}
 
@@ -228,7 +246,7 @@ export function tokenize(source: string): LexResult {
 	}
 
 	tokens.push({ kind: 'EOF', start: n, end: n, text: '' });
-	return { tokens, comments };
+	return { tokens, comments, blankLines };
 }
 
 function isDigit(c: string): boolean {
diff --git a/dashboard/src/lib/rhai/parser.ts b/dashboard/src/lib/rhai/parser.ts
index 77fc068..72135f4 100644
--- a/dashboard/src/lib/rhai/parser.ts
+++ b/dashboard/src/lib/rhai/parser.ts
@@ -21,10 +21,10 @@ import type {
 import { tokenize, type Token, type TokenKind } from './lexer';
 
 export function parse(source: string): ParseResult {
-	const { tokens, comments } = tokenize(source);
+	const { tokens, comments, blankLines } = tokenize(source);
 	const p = new Parser(source, tokens);
 	const program = p.parseProgram();
-	return { source, program, errors: p.errors, comments };
+	return { source, program, errors: p.errors, comments, blankLines };
 }
 
 // Precedence levels for binary operators. Higher binds tighter. Assignment
@@ -92,13 +92,21 @@ class Parser {
 		return true;
 	}
 
-	private expect(kind: TokenKind, text?: string): Token {
+	// `role` is a human-readable description of what was expected, used
+	// in place of the bare token kind so the message reads like Rhai's
+	// own diagnostics (`Expecting name of a variable` rather than
+	// `expected ident`). Falls back to the literal/kind when omitted.
+	private expect(kind: TokenKind, text?: string, role?: string): Token {
 		const t = this.peek();
 		if (t.kind === kind && (text === undefined || t.text === text)) {
 			return this.advance();
 		}
-		const desc = text !== undefined ? `'${text}'` : kind.toLowerCase();
-		this.error(t, `expected ${desc}, got '${t.text || 'end of input'}'`);
+		if (t.kind === 'EOF') {
+			this.error(t, role ? `Expecting ${role} — script is incomplete` : 'Script is incomplete');
+		} else {
+			const desc = role ?? (text !== undefined ? `'${text}'` : kind.toLowerCase());
+			this.error(t, `Expecting ${desc}`);
+		}
 		// Return the token without consuming so the caller's parent can
 		// still resync at its own boundary.
 		return t;
@@ -192,7 +200,7 @@ class Parser {
 		const expr = this.tryParseExpr();
 		if (!expr) {
 			const bad = this.peek();
-			this.error(bad, `unexpected '${bad.text || 'end of input'}'`);
+			this.error(bad, bad.kind === 'EOF' ? 'Script is incomplete' : `Unexpected token '${bad.text}'`);
 			this.resyncStmt();
 			return null;
 		}
@@ -208,7 +216,7 @@ class Parser {
 
 	private parseLetOrConst(kind: 'Let' | 'Const'): Stmt {
 		const start = this.advance().start; // let|const
-		const nameTok = this.expect('Ident');
+		const nameTok = this.expect('Ident', undefined, 'name of a variable');
 		const name = nameTok.text;
 		const nameRange = { start: nameTok.start, end: nameTok.end };
 		let init: Expr | null = null;
@@ -222,11 +230,11 @@ class Parser {
 
 	private parseFnDecl(): FnDecl {
 		const start = this.advance().start; // fn
-		const nameTok = this.expect('Ident');
+		const nameTok = this.expect('Ident', undefined, 'function name in function declaration');
 		this.expect('Punct', '(');
 		const params: Param[] = [];
 		while (!this.check('Punct', ')') && this.peek().kind !== 'EOF') {
-			const pTok = this.expect('Ident');
+			const pTok = this.expect('Ident', undefined, 'parameter name');
 			params.push({ name: pTok.text, start: pTok.start, end: pTok.end });
 			if (!this.match('Punct', ',')) break;
 		}
@@ -269,7 +277,7 @@ class Parser {
 
 	private parseFor(): Stmt {
 		const start = this.advance().start; // for
-		const nameTok = this.expect('Ident');
+		const nameTok = this.expect('Ident', undefined, 'loop variable name');
 		this.expect('Keyword', 'in');
 		const iter = this.tryParseExpr() ?? this.placeholderExpr();
 		const body = this.parseBlockExpr();
@@ -305,7 +313,7 @@ class Parser {
 	private parseBlockExpr(): BlockExpr {
 		const openTok = this.peek();
 		if (!this.match('Punct', '{')) {
-			this.error(openTok, "expected '{'");
+			this.error(openTok, "Expecting '{' to begin a block");
 			return { kind: 'BlockExpr', start: openTok.start, end: openTok.start, stmts: [] };
 		}
 		const start = openTok.start;
@@ -372,7 +380,7 @@ class Parser {
 			const t = this.peek();
 			if (t.kind === 'Punct' && t.text === '.') {
 				this.advance();
-				const prop = this.expect('Ident');
+				const prop = this.expect('Ident', undefined, 'name of a property');
 				expr = {
 					kind: 'Member',
 					start: expr.start,
@@ -403,7 +411,7 @@ class Parser {
 				// Namespace path: treat `log::info` as a Member chain on an
 				// Ident so completion and lookup can walk the same shape.
 				this.advance();
-				const next = this.expect('Ident');
+				const next = this.expect('Ident', undefined, "name after '::'");
 				expr = {
 					kind: 'Member',
 					start: expr.start,
@@ -476,7 +484,7 @@ class Parser {
 			return this.parseBlockExpr();
 		}
 
-		this.error(t, `unexpected '${t.text || 'end of input'}'`);
+		this.error(t, t.kind === 'EOF' ? 'Script is incomplete' : `Unexpected token '${t.text}'`);
 		// Consume one token so we make forward progress, then return a
 		// placeholder so the surrounding parser keeps its shape.
 		this.advance();
@@ -534,7 +542,7 @@ class Parser {
 		this.expect('Punct', '(');
 		const params: Param[] = [];
 		while (!this.check('Punct', ')') && this.peek().kind !== 'EOF') {
-			const pTok = this.expect('Ident');
+			const pTok = this.expect('Ident', undefined, 'parameter name');
 			params.push({ name: pTok.text, start: pTok.start, end: pTok.end });
 			if (!this.match('Punct', ',')) break;
 		}
@@ -577,7 +585,7 @@ class Parser {
 				key = k.text.length >= 2 ? k.text.slice(1, -1) : k.text;
 				keyRange = { start: k.start, end: k.end };
 			} else {
-				this.error(k, 'expected map key');
+				this.error(k, 'Expecting name of a map key');
 				break;
 			}
 			this.expect('Punct', ':');
diff --git a/dashboard/src/routes/scripts/[id]/+page.svelte b/dashboard/src/routes/scripts/[id]/+page.svelte
index 61ed87e..4ed4d42 100644
--- a/dashboard/src/routes/scripts/[id]/+page.svelte
+++ b/dashboard/src/routes/scripts/[id]/+page.svelte
@@ -76,7 +76,7 @@
 			editableSource = r.text;
 			rhaiFormatError = null;
 		} else {
-			rhaiFormatError = `Parse error at offset ${r.error.offset}: ${r.error.message}`;
+			rhaiFormatError = `Parse error: ${r.error.message} (line ${r.error.line}, position ${r.error.column})`;
 		}
 	}