diff --git a/NEWS.txt b/NEWS.txt
index 6c3c96a..5c123e2 100644
--- a/NEWS.txt
+++ b/NEWS.txt
@@ -148,6 +148,10 @@ Bug fixes:
 - Fix bug in picking items when transform/inverseTransform is in use
   (reported by Ofri Raviv, and patches and analysis by Jan and Tom
   Paton, issue 334 and 467).
+- Fix problem with unaligned ticks and hover/click events caused by
+  padding on the placeholder by hardcoding the placeholder padding to
+  0 (reported by adityadineshsaxena, Matt Sommer, Daniel Atos and some
+  other people, issue 301).
 
 
 Flot 0.6
diff --git a/jquery.flot.js b/jquery.flot.js
index 5712e6b..7652d69 100644
--- a/jquery.flot.js
+++ b/jquery.flot.js
@@ -687,6 +687,7 @@
             
             if (placeholder.css("position") == 'static')
                 placeholder.css("position", "relative"); // for positioning labels and overlay
+            placeholder.css({ padding: 0 });
 
             if (canvasWidth <= 0 || canvasHeight <= 0)
                 throw "Invalid dimensions for plot, width = " + canvasWidth + ", height = " + canvasHeight;