Index: /CKEditor/trunk/CHANGES.html
===================================================================
--- /CKEditor/trunk/CHANGES.html	(revision 5359)
+++ /CKEditor/trunk/CHANGES.html	(revision 5360)
@@ -130,4 +130,5 @@
 		<li><a href="http://dev.fckeditor.net/ticket/5220">#5220</a> : DTD now shows tolerance to &lt;style&gt; appear inside content.</li>
 		<li><a href="http://dev.fckeditor.net/ticket/5540">#5540</a> : Mobile browsers (iPhone, Android...) are marked as incompatible as they don't support the editable features.</li>
+		<li><a href="http://dev.fckeditor.net/ticket/5504">#5504</a> : [IE6/7] 'Paste' dialog will always get opened even when user allows the clipboard access dialog when using 'Paste' button.</li>
 		<li>Updated the following language files:<ul>
 			<li>Faroese;</li>
Index: /CKEditor/trunk/_source/plugins/clipboard/plugin.js
===================================================================
--- /CKEditor/trunk/_source/plugins/clipboard/plugin.js	(revision 5359)
+++ /CKEditor/trunk/_source/plugins/clipboard/plugin.js	(revision 5360)
@@ -1,3 +1,3 @@
-/*
+/*
 Copyright (c) 2003-2010, CKSource - Frederico Knabben. All rights reserved.
 For licensing, see LICENSE.html or http://ckeditor.com/license
@@ -29,5 +29,6 @@
 		body.on( command, onExec );
 
-		doc.$.execCommand( command );
+		// IE6/7: document.execCommand has problem to paste into positioned element.
+		( CKEDITOR.env.version > 7 ? doc.$ : doc.$.selection.createRange() ) [ 'execCommand' ]( command );
 
 		body.removeListener( command, onExec );