After I shortly submitted my 2nd patch, Julian was able to provide me with feedback and as well as a new patch with a few more additions to my current patch. My patch worked  but however there were a few issues pointed out by Julian that were needed to be fixed and are fixed now with his help:)

1.) Instead of replacing the entire line with <indention> + < line text > , only indentations are inserted this time.

2.) Undo/Redo - Thanks to Julian for the code, indentation on multiple lines is now grouped into one undo/redo event.

3.) Since ‘count’ always retained the same value in the ‘line for loop’ it was not necessary for it to be executed more then once. I moved it outside of the ‘line for loop’ 

4.) After a selection was indented, the selected text was no longer selected. Now the selected text remains selected.

I have submitted a patch on bugzilla Bug#557135 with these changes. 
*source code: http://gist.github.com/366757

More to follow……