I actually managed to create two repositories at Github

http://github.com/jacmoe/markitup

http://github.com/jacmoe/highlighter

I am not sure if everything is alright - I think I got the crlf/lf right - but you tell me.

The most important thing is that it works with Cakephp 1.3 RC4 and latest Croogo.

I hope this is useful to others besides me.