diff --git a/lib/handlebars/vm.js b/lib/handlebars/vm.js
index b21bad9b..cf821bcd 100644
--- a/lib/handlebars/vm.js
+++ b/lib/handlebars/vm.js
@@ -1,5 +1,8 @@
 var Handlebars = {};
+Handlebars.Utils = require("handlebars/utils").Utils;
 Handlebars.parse = require("handlebars/compiler").Handlebars.parse;
+Handlebars.logger = require("handlebars/compiler").Handlebars.logger;
+Handlebars.log = require("handlebars/compiler").Handlebars.log;
 
 // BEGIN(BROWSER)
 Handlebars.Compiler = function() {};
@@ -7,13 +10,13 @@ Handlebars.JavaScriptCompiler = function() {};
 
 (function(Compiler, JavaScriptCompiler) {
   Compiler.OPCODE_MAP = {
-    invokeContent: 1,
+    appendContent: 1,
     getContext: 2,
     lookupWithFallback: 3,
     lookup: 4,
     append: 5,
     invokeMustache: 6,
-    escape: 7,
+    appendEscaped: 7,
     pushString: 8,
     truthyOrFallback: 9,
     functionOrFallback: 10,
@@ -24,7 +27,7 @@ Handlebars.JavaScriptCompiler = function() {};
   };
 
   Compiler.MULTI_PARAM_OPCODES = {
-    invokeContent: 1,
+    appendContent: 1,
     getContext: 1,
     lookupWithFallback: 1,
     lookup: 1,
@@ -38,9 +41,9 @@ Handlebars.JavaScriptCompiler = function() {};
     invokeInverse: 1
   };
 
-  Compiler.DISASSEMBLE_MAP = {}
+  Compiler.DISASSEMBLE_MAP = {};
 
-  for(prop in Compiler.OPCODE_MAP) {
+  for(var prop in Compiler.OPCODE_MAP) {
     var value = Compiler.OPCODE_MAP[prop];
     Compiler.DISASSEMBLE_MAP[value] = prop;
   }
@@ -83,7 +86,7 @@ Handlebars.JavaScriptCompiler = function() {};
         }
       }
 
-      return out.join("\n")
+      return out.join("\n");
     },
 
     guid: 0,
@@ -118,6 +121,8 @@ Handlebars.JavaScriptCompiler = function() {};
       var result = new Compiler().compile(program);
       var guid = this.guid++;
 
+      this.usePartial = this.usePartial || result.usePartial;
+
       this.children[guid] = result;
 
       for(var i=0, l=result.depths.list.length; i<l; i++) {
@@ -132,7 +137,7 @@ Handlebars.JavaScriptCompiler = function() {};
 
     block: function(block) {
       var mustache = block.mustache;
-      var params = mustache.params, depth, child, inverse;
+      var params = mustache.params, depth, child, inverse, inverseGuid;
 
       this.pushParams(params);
 
@@ -142,7 +147,7 @@ Handlebars.JavaScriptCompiler = function() {};
       var programGuid = this.compileProgram(block.program);
 
       if(block.program.inverse) {
-        var inverseGuid = this.compileProgram(block.program.inverse);
+        inverseGuid = this.compileProgram(block.program.inverse);
       }
 
       if(block.program.inverse) {
@@ -164,6 +169,7 @@ Handlebars.JavaScriptCompiler = function() {};
 
     partial: function(partial) {
       var id = partial.id;
+      this.usePartial = true;
 
       if(partial.context) {
         this.ID(partial.context);
@@ -176,7 +182,7 @@ Handlebars.JavaScriptCompiler = function() {};
     },
 
     content: function(content) {
-      this.opcode('invokeContent', content.string);
+      this.opcode('appendContent', content.string);
     },
 
     mustache: function(mustache) {
@@ -187,9 +193,11 @@ Handlebars.JavaScriptCompiler = function() {};
 
       this.opcode('invokeMustache', params.length, mustache.id.original);
 
-      if(mustache.escaped) { this.opcode('escape') }
-
-      this.opcode('append');
+      if(mustache.escaped) {
+        this.opcode('appendEscaped');
+      } else {
+        this.opcode('append');
+      }
     },
 
     ID: function(id) {
@@ -239,69 +247,107 @@ Handlebars.JavaScriptCompiler = function() {};
         this.depths.list.push(depth);
       }
     }
-  }
+  };
 
   JavaScriptCompiler.prototype = {
     compile: function(environment) {
-      this.preamble();
-      this.stackSlot = 0
-      this.stackVars = [];
       this.environment = environment;
 
+      this.preamble();
+
+      this.stackSlot = 0;
+      this.stackVars = [];
+      this.registers = {list: []};
+
       this.compileChildren(environment);
 
       Handlebars.log(Handlebars.logger.DEBUG, environment.disassemble() + "\n\n");
 
-      var opcodes = environment.opcodes;
-      var opcode, name;
-      var declareName, declareVal;
+      var opcodes = environment.opcodes, opcode, name, declareName, declareVal;
 
-      for(var i=0, l=opcodes.length; i<l; i++) {
-        opcode = opcodes[i];
+      this.i = 0;
 
-        if(opcode === 'DECLARE') {
-          declareName = opcodes[++i];
-          declareVal  = opcodes[++i];
-          this[declareName] = declareVal;
+      for(l=opcodes.length; this.i<l; this.i++) {
+        opcode = this.nextOpcode(0);
+
+        if(opcode[0] === 'DECLARE') {
+          this.i = this.i + 2;
+          this[opcode[1]] = opcode[2];
         } else {
-          name = Compiler.DISASSEMBLE_MAP[opcode];
-
-          var extraParams = Compiler.multiParamSize(opcode);
-          var codes = [];
-
-          for(var j=0; j<extraParams; j++) {
-            codes.push(opcodes[++i]);
-          }
-
-          this[name].apply(this, codes);
+          this.i = this.i + opcode[1].length;
+          this[opcode[0]].apply(this, opcode[1]);
         }
       }
 
       return this.createFunction();
     },
 
+    nextOpcode: function(n) {
+      var opcodes = this.environment.opcodes, opcode = opcodes[this.i + n], name, val;
+      var extraParams, codes;
+
+      if(opcode === 'DECLARE') {
+        name = opcodes[this.i + 1];
+        val  = opcodes[this.i + 2];
+        return ['DECLARE', name, val];
+      } else {
+        name = Compiler.DISASSEMBLE_MAP[opcode];
+
+        extraParams = Compiler.multiParamSize(opcode);
+        codes = [];
+
+        for(var j=0; j<extraParams; j++) {
+          codes.push(opcodes[this.i + j + 1 + n]);
+        }
+
+        return [name, codes];
+      }
+    },
+
+    eat: function(opcode) {
+      this.i = this.i + opcode.length;
+    },
+
     preamble: function() {
       var out = [];
-      out.push("var buffer = '';");
-      out.push("var currentContext = context, tmp1, tmp2;");
-      out.push("helpers = helpers || Handlebars.helpers; partials = partials || Handlebars.partials;");
-      out.push("");
+      out.push("var buffer = '', currentContext = context");
+
+      var copies = "helpers = helpers || Handlebars.helpers;";
+      if(this.environment.usePartial) { copies = copies + " partials = partials || Handlebars.partials;"; }
+      out.push(copies);
 
       // track the last context pushed into place to allow skipping the
       // getContext opcode when it would be a noop
       this.lastContext = 0;
-      this.locals = 3;
       this.source = out;
     },
 
     createFunction: function() {
-      var container = {};
+      var container = {
+        escapeExpression: Handlebars.Utils.escapeExpression,
+        invokePartial: Handlebars.VM.invokePartial,
+        programs: [],
+        program: function(i, helpers, partials) {
+          var programWrapper = this.programs[i];
+          if(programWrapper) {
+            return programWrapper;
+          } else {
+            programWrapper = this.programs[i] = Handlebars.VM.program(this.children[i], helpers, partials);
+            return programWrapper;
+          }
+        },
+        programWithDepth: Handlebars.VM.programWithDepth,
+        noop: Handlebars.VM.noop
+      };
+      var locals = this.stackVars.concat(this.registers.list);
 
-      if(this.stackVars.length > 0) {
-        this.source[this.locals] = "var " + this.stackVars.join(", ") + ";";
+      if(locals.length > 0) {
+        this.source[0] = this.source[0] + ", " + locals.join(", ");
       }
 
-      this.source.push("return buffer;")
+      this.source[0] = this.source[0] + ";";
+
+      this.source.push("return buffer;");
 
       var params = ["context", "helpers", "partials"];
 
@@ -309,10 +355,12 @@ Handlebars.JavaScriptCompiler = function() {};
         params.push("depth" + this.environment.depths.list[i]);
       }
 
+      if(params.length === 3 && !this.environment.usePartial) { params.pop(); }
+
       params.push(this.source.join("\n"));
 
       var fn = Function.apply(this, params);
-      fn.displayName = "Handlebars.js"
+      fn.displayName = "Handlebars.js";
 
       Handlebars.log(Handlebars.logger.DEBUG, fn.toString() + "\n\n");
 
@@ -322,20 +370,31 @@ Handlebars.JavaScriptCompiler = function() {};
 
       return function(context, helpers, partials, depth) {
         try {
-          return container.render.apply(container, arguments)
+          return container.render.apply(container, arguments);
         } catch(e) {
           throw e;
         }
-      }
+      };
     },
 
-    invokeContent: function(content) {
+    appendContent: function(content) {
       this.source.push("buffer = buffer + " + this.quotedString(content) + ";");
     },
 
     append: function() {
       var local = this.popStack();
-      this.source.push("buffer = buffer + ((" + local + " || " + local + " === 0) ? " + local + " : '');");
+      this.source.push("if(" + local + " || " + local + " === 0) { buffer = buffer + " + local + "; }");
+    },
+
+    appendEscaped: function() {
+      var opcode = this.nextOpcode(1), extra = "";
+
+      if(opcode[0] === 'appendContent') {
+        extra = " + " + this.quotedString(opcode[1][0]);
+        this.eat(opcode);
+      }
+
+      this.source.push("buffer = buffer + this.escapeExpression(" + this.popStack() + ")" + extra + ";");
     },
 
     getContext: function(depth) {
@@ -347,7 +406,6 @@ Handlebars.JavaScriptCompiler = function() {};
         } else {
           this.source.push("currentContext = depth" + depth + ";");
         }
-        // TODO: handle depths other than 0
       }
     },
 
@@ -363,7 +421,7 @@ Handlebars.JavaScriptCompiler = function() {};
       if(name) {
         this.pushStack(this.nameLookup('currentContext', name));
         var topStack = this.topStack();
-        this.source.push("if(" + topStack + " == null) { " + topStack + " = " + this.nameLookup('helpers', name) + "; }");
+        this.source.push("if(" + topStack + " === undefined) { " + topStack + " = " + this.nameLookup('helpers', name) + "; }");
       } else {
         this.pushStack("currentContext");
       }
@@ -383,49 +441,32 @@ Handlebars.JavaScriptCompiler = function() {};
     },
 
     invokeMustache: function(paramSize, original) {
-      this.source.push("tmp1 = " + this.popStack() + ";");
-      this.source.push("tmp2 = (typeof tmp1 === 'function');");
+      var params = ["context"], fn, slot;
 
-      var params = ["context"];
+      fn = this.popStack();
 
       for(var i=0; i<paramSize; i++) {
         params.push(this.popStack());
       }
 
-      var slot = "stack" + ++this.stackSlot;
-
       var paramString = params.join(", ");
       var helperMissing = ["context"].concat(this.quotedString(original)).concat(params.slice(1));
 
+      slot = this.nextStack();
+
       if(paramSize === 0) {
-        this.source.push("if(tmp2) { " + slot + " = tmp1.call(" + paramString + "); } else { " + slot + " = tmp1; }");
+        // TODO: This case is not listed in the mustache spec. Is it important?
+        this.source.push("if(typeof " + fn + " === 'function') { " + slot + " = " + fn + ".call(" + paramString + "); }");
       } else {
-        this.source.push("if(tmp2) { " + slot + " = tmp1.call(" + paramString + "); } else { " + slot + " = helpers.helperMissing.call(" + helperMissing + ") }");
+        this.source.push("if(typeof " + fn + " === 'function') { " + slot + " = " + fn + ".call(" + paramString + "); } else { " + slot + " = helpers.helperMissing.call(" + helperMissing + ") }");
       }
     },
 
     invokeProgram: function(guid, paramSize) {
-      var inverse = this.inverse;
+      var inverse = this.programExpression(this.inverse);
 
-      if(inverse != null) {
-        var programParams = ["this.children[" + inverse + "]", "helpers", "partials"];
-
-        var depths = this.environment.rawChildren[guid + 1].depths.list;
-
-        for(var i=0, l = depths.length; i<l; i++) {
-          depth = depths[i];
-
-          if(depth === 1) { programParams.push("context"); }
-          else { programParams.push("depth" + (depth - 1)); }
-        }
-
-        this.source.push("tmp2 = Handlebars.VM.program(" + programParams.join(", ") + ");");
-      } else {
-        this.source.push("tmp2 = Handlebars.VM.noop;");
-      }
-
-      var id = this.topStack();
       var fn = this.popStack();
+      var id = fn;
 
       var params = ["context"];
       var blockMissingParams = ["context", id];
@@ -436,62 +477,26 @@ Handlebars.JavaScriptCompiler = function() {};
         blockMissingParams.push(param);
       }
 
-      programParams = ["this.children[" + guid + "]", "helpers", "partials"];
-      var depths = this.environment.rawChildren[guid].depths.list, depth;
+      var mainProgram = this.programExpression(guid);
 
-      for(var i=0, l= depths.length; i<l; i++) {
-        depth = depths[i];
-
-        if(depth === 1) { programParams.push("context"); }
-        else { programParams.push("depth" + (depth - 1)); }
-      }
-
-      if(depths.length === 0) {
-        this.source.push("tmp1 = Handlebars.VM.program(" + programParams.join(", ") + ")");
-      } else {
-        this.source.push("tmp1 = Handlebars.VM.programWithDepth(" + programParams.join(", ") + ")");
-      }
-
-      params.push("tmp1");
-      params.push("tmp2");
-      blockMissingParams.push("tmp1");
-      blockMissingParams.push("tmp2");
+      params.push(mainProgram, inverse);
+      blockMissingParams.push(mainProgram, inverse);
 
       var nextStack = this.nextStack();
 
-      this.source.push("if(typeof " + id + " === 'function') { " + nextStack + " = " + id + ".call(" + params.join(", ") + "); }")
+      this.source.push("if(typeof " + id + " === 'function') { " + nextStack + " = " + id + ".call(" + params.join(", ") + "); }");
       this.source.push("else { " + nextStack + " = helpers.blockHelperMissing.call(" + blockMissingParams.join(", ") + "); }");
     },
 
     invokeInverse: function(guid) {
-      var depths = this.environment.rawChildren[guid].depths.list;
+      var program = this.programExpression(guid);
 
-      programParams = ["this.children[" + guid + "]", "helpers", "partials"];
-
-      for(var i=0, l = depths.length; i<l; i++) {
-        depth = depths[i];
-
-        if(depth === 1) { programParams.push("context"); }
-        else { programParams.push("depth" + (depth - 1)); }
-      }
-
-      if(depths.length === 0) {
-        this.source.push("tmp1 = Handlebars.VM.program(" + programParams.join(", ") + ")");
-      } else {
-        this.source.push("tmp1 = Handlebars.VM.programWithDepth(" + programParams.join(", ") + ")");
-      }
-
-      var blockMissingParams = ["context", this.topStack(), "Handlebars.VM.noop", "tmp1"];
+      var blockMissingParams = ["context", this.topStack(), "this.noop", program];
       this.pushStack("helpers.blockHelperMissing.call(" + blockMissingParams.join(", ") + ")");
     },
 
     invokePartial: function(context) {
-      this.pushStack("Handlebars.VM.invokePartial(" + this.nameLookup('partials', context) + ", '" + context + "', " + this.popStack() + ", helpers, partials);");
-    },
-
-    escape: function() {
-      this.source.push(this.topStack() + " = Handlebars.Utils.escapeExpression(" + this.topStack() + ");");
-      // TODO: Escaping
+      this.pushStack("this.invokePartial(" + this.nameLookup('partials', context) + ", '" + context + "', " + this.popStack() + ", helpers, partials);");
     },
 
     // HELPERS
@@ -511,6 +516,50 @@ Handlebars.JavaScriptCompiler = function() {};
       environment.children = compiled;
     },
 
+    programExpression: function(guid) {
+      if(guid == null) { return "this.noop"; }
+
+      var programParams = [guid, "helpers", "partials"];
+
+      var depths = this.environment.rawChildren[guid].depths.list;
+
+      for(var i=0, l = depths.length; i<l; i++) {
+        depth = depths[i];
+
+        if(depth === 1) { programParams.push("context"); }
+        else { programParams.push("depth" + (depth - 1)); }
+      }
+
+      if(!this.environment.usePartial) { 
+        if(programParams[3]) {
+          programParams[2] = "null";
+        } else {
+          programParams.pop();
+        }
+      }
+
+      if(depths.length === 0) {
+        return "this.program(" + programParams.join(", ") + ")";
+      } else {
+        programParams[0] = "this.children[" + guid + "]";
+        return "this.programWithDepth(" + programParams.join(", ") + ")";
+      }
+
+      return "this.program(" + programParams.join(", ") + ")";
+    },
+
+    register: function(name, val) {
+      this.useRegister(name);
+      this.source.push(name + " = " + val + ";");
+    },
+
+    useRegister: function(name) {
+      if(!this.registers[name]) {
+        this.registers[name] = true;
+        this.registers.list.push(name);
+      }
+    },
+
     pushStack: function(item) {
       this.source.push(this.nextStack() + " = " + item + ";");
       return "stack" + this.stackSlot;
@@ -537,7 +586,7 @@ Handlebars.JavaScriptCompiler = function() {};
         .replace(/\n/g, '\\n')
         .replace(/\r/g, '\\r') + '"';
     }
-  }
+  };
 
   var reservedWords = ("break case catch continue default delete do else finally " +
                        "for function if in instanceof new return switch this throw " + 
@@ -549,19 +598,19 @@ Handlebars.JavaScriptCompiler = function() {};
     compilerWords[reservedWords[i]] = true;
   }
 
-})(Handlebars.Compiler, Handlebars.JavaScriptCompiler)
+})(Handlebars.Compiler, Handlebars.JavaScriptCompiler);
 
 Handlebars.VM = {
   programWithDepth: function(fn, helpers, partials, depth) {
     var args = [].slice.call(arguments, 1);
     return function(context) {
       return fn.apply(this, [context].concat(args));
-    }
+    };
   },
   program: function(fn, helpers, partials) {
     return function(context) {
       return fn(context, helpers, partials);
-    }
+    };
   },
   noop: function() {},
   compile: function(string) {
@@ -571,7 +620,7 @@ Handlebars.VM = {
   },
   invokePartial: function(partial, name, context, helpers, partials) {
     if(partial instanceof Function) {
-      return partial(context, helpers, partials)
+      return partial(context, helpers, partials);
     } else {
       partials[name] = Handlebars.VM.compile(partial);
       return partials[name](context, helpers, partials);