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. 

