This doesn't seem to work in v1.8. Once you convert your rectangular object to a text frame, it removes the background color. I can't believe there is no obvious way to tackle this. You've been able to do it since the old days of Quark and PageMaker. You create a text box, give it background color then choose text inset to add padding, etc. In Publisher, you have to create 2 blocks, one for background and one for text, then subtract the amount for inset on your text block? Is this a sick joke? When importing an IDML, text blocks with background color still remain in tact, but there's no way to modify the background color. They are not 2 grouped layers nor do they have a background character color. It's like the text is pasted inside the block, but there is no way to access the background. What's the secret?