diff --git a/Rakefile b/Rakefile
index 987544c3..22fc19a1 100644
--- a/Rakefile
+++ b/Rakefile
@@ -20,11 +20,11 @@ def remove_exports(string)
   match ? match[1] : string
 end
 
-minimal_deps = %w(parser compiler ast visitor runtime utils).map do |file|
+minimal_deps = %w(parser compiler ast visitor runtime utils vm).map do |file|
   "lib/handlebars/#{file}.js"
 end
 
-debug_deps = %w(parser compiler ast visitor printer runtime utils).map do |file|
+debug_deps = %w(parser compiler ast visitor printer runtime utils vm).map do |file|
   "lib/handlebars/#{file}.js"
 end
 
diff --git a/lib/handlebars.js b/lib/handlebars.js
index b6cbbc2d..0b867409 100644
--- a/lib/handlebars.js
+++ b/lib/handlebars.js
@@ -1,13 +1,16 @@
 var Handlebars = require("handlebars/compiler").Handlebars;
 
-Handlebars.AST             = require("handlebars/ast").AST;
-Handlebars.HandlebarsLexer = require("handlebars/handlebars_lexer").Lexer;
-Handlebars.PrintVisitor    = require("handlebars/printer").PrintVisitor;
-Handlebars.Runtime         = require("handlebars/runtime").Runtime;
-Handlebars.Context         = require("Handlebars/runtime").Context;
-Handlebars.Utils           = require("handlebars/utils").Utils;
-Handlebars.SafeString      = require("handlebars/utils").SafeString;
-Handlebars.Exception       = require("handlebars/utils").Exception;
+Handlebars.AST                = require("handlebars/ast").AST;
+Handlebars.HandlebarsLexer    = require("handlebars/handlebars_lexer").Lexer;
+Handlebars.PrintVisitor       = require("handlebars/printer").PrintVisitor;
+Handlebars.Runtime            = require("handlebars/runtime").Runtime;
+Handlebars.Context            = require("Handlebars/runtime").Context;
+Handlebars.Utils              = require("handlebars/utils").Utils;
+Handlebars.SafeString         = require("handlebars/utils").SafeString;
+Handlebars.Exception          = require("handlebars/utils").Exception;
+Handlebars.Compiler           = require("handlebars/vm").Compiler;
+Handlebars.JavaScriptCompiler = require("handlebars/vm").JavaScriptCompiler;
+Handlebars.VM                 = require("handlebars/vm").VM;
 
 // BEGIN(BROWSER)
 
diff --git a/lib/handlebars/ast.js b/lib/handlebars/ast.js
index 932e52ca..6c51b381 100644
--- a/lib/handlebars/ast.js
+++ b/lib/handlebars/ast.js
@@ -21,6 +21,9 @@ Handlebars.Exception = require("handlebars/utils").Exception;
 
   Handlebars.AST.PartialNode = function(id, context) {
     this.type    = "partial";
+
+    // TODO: disallow complex IDs
+
     this.id      = id;
     this.context = context;
   };
@@ -64,8 +67,9 @@ Handlebars.Exception = require("handlebars/utils").Exception;
       else { dig.push(part); }
     }
 
-    this.parts = dig;
-    this.depth = depth;
+    this.parts    = dig;
+    this.depth    = depth;
+    this.isSimple = (dig.length === 1) && (depth === 0)
   };
 
   Handlebars.AST.StringNode = function(string) {
diff --git a/lib/handlebars/compiler.js b/lib/handlebars/compiler.js
index f892a509..f6cc5118 100644
--- a/lib/handlebars/compiler.js
+++ b/lib/handlebars/compiler.js
@@ -1,7 +1,7 @@
 var handlebars = require("handlebars/parser").parser;
 
 // BEGIN(BROWSER)
-Handlebars = {};
+var Handlebars = {};
 
 Handlebars.Parser = handlebars;
 
@@ -47,16 +47,27 @@ Handlebars.registerPartial = function(name, str) {
   this.partials[name] = str;
 };
 
-Handlebars.registerHelper('blockHelperMissing', function(context, fn) {
+Handlebars.registerHelper('blockHelperMissing', function(context, fn, inverse) {
+  inverse = inverse || function() {};
+
   var ret = "";
+  var type = Object.prototype.toString.call(context);
+
+  if(type === "[object Function]") {
+    context = context();
+  }
 
   if(context === true) {
     return fn(this);
   } else if(context === false || context == null) {
-    return "";
-  } else if(Object.prototype.toString.call(context) === "[object Array]") {
-    for(var i=0, j=context.length; i<j; i++) {
-      ret = ret + fn(context[i]);
+    return inverse(this);
+  } else if(type === "[object Array]") {
+    if(context.length > 0) {
+      for(var i=0, j=context.length; i<j; i++) {
+        ret = ret + fn(context[i]);
+      }
+    } else {
+      ret = inverse(this);
     }
     return ret;
   } else {
@@ -65,6 +76,28 @@ Handlebars.registerHelper('blockHelperMissing', function(context, fn) {
 }, function(context, fn) {
   return fn(context)
 });
+
+Handlebars.registerHelper('each', function(context, fn, inverse) {
+  var ret = "";
+
+  if(context.length > 0) {
+    for(var i=0, j=context.length; i<j; i++) {
+      ret = ret + fn(context[i]);
+    }
+  } else {
+    ret = inverse(this);
+  }
+  return ret;
+});
+
+Handlebars.registerHelper('if', function(context, fn, inverse) {
+  if(context === false || context == null) {
+    return inverse(this);
+  } else {
+    return fn(this);
+  }
+});
+
 // END(BROWSER)
 
 exports.Handlebars = Handlebars;
diff --git a/lib/handlebars/runtime.js b/lib/handlebars/runtime.js
index d78f0d81..f31e3184 100644
--- a/lib/handlebars/runtime.js
+++ b/lib/handlebars/runtime.js
@@ -104,7 +104,7 @@ Handlebars.Runtime.prototype = {
 
   mustache: function(mustache) {
     var idObj  = this.ID(mustache.id);
-    var params = mustache.params;
+    var params = mustache.params.slice(0);
     var buf;
 
     for(var i=0, l=params.length; i<l; i++) {
@@ -153,7 +153,7 @@ Handlebars.Runtime.prototype = {
 
     params.push(this.wrapProgram(block.program));
     result = data.apply(this.wrapContext(), params);
-    this.buffer = this.buffer + result;
+    this.buffer = this.buffer + ((result === undefined) ? "" : result);
 
     if(block.program.inverse) {
       params.pop();
diff --git a/lib/handlebars/utils.js b/lib/handlebars/utils.js
index a600d6b6..bc816d52 100644
--- a/lib/handlebars/utils.js
+++ b/lib/handlebars/utils.js
@@ -13,47 +13,47 @@ Handlebars.SafeString.prototype.toString = function() {
   return this.string.toString();
 };
 
-Handlebars.Utils = {
-  escapeExpression: function(string) {
-    // don't escape SafeStrings, since they're already safe
-    if (string instanceof Handlebars.SafeString) {
-      return string.toString();
-    }
-    else if (string === null) {
-      string = "";
-    }
+(function() {
+  var escape = {
+    "<": "&lt;",
+    ">": "&gt;",
+  };
 
-    return string.toString().replace(/&(?!\w+;)|["\\<>]/g, function(str) {
-      switch(str) {
-        case "&":
-          return "&amp;";
-        case '"':
-          return "\"";
-        case "\\":
-          return "\\\\";
-        case "<":
-          return "&lt;";
-        case ">":
-          return "&gt;";
-        default:
-          return str;
+  var badChars = /&(?!\w+;)|[<>]/g;
+  var possible = /[&<>]/
+
+  var escapeChar = function(chr) {
+    return escape[chr] || "&amp;"
+  };
+
+  Handlebars.Utils = {
+    escapeExpression: function(string) {
+      // don't escape SafeStrings, since they're already safe
+      if (string instanceof Handlebars.SafeString) {
+        return string.toString();
+      } else if (string === null) {
+        string = "";
+      }
+
+      if(!possible.test(string)) { return string; }
+      return string.replace(badChars, escapeChar);
+    },
+
+    isEmpty: function(value) {
+      if (typeof value === "undefined") {
+        return true;
+      } else if (value === null) {
+        return true;
+      } else if (value === false) {
+        return true;
+      } else if(Object.prototype.toString.call(value) === "[object Array]" && value.length === 0) {
+        return true;
+      } else {
+        return false;
       }
-    });
-  },
-  isEmpty: function(value) {
-    if (typeof value === "undefined") {
-      return true;
-    } else if (value === null) {
-      return true;
-		} else if (value === false) {
-			return true;
-    } else if(Object.prototype.toString.call(value) === "[object Array]" && value.length === 0) {
-      return true;
-    } else {
-      return false;
     }
-  }
-};
+  };
+})();
 // END(BROWSER)
 
 exports.Utils = Handlebars.Utils;
diff --git a/lib/handlebars/vm.js b/lib/handlebars/vm.js
new file mode 100644
index 00000000..ecb67a41
--- /dev/null
+++ b/lib/handlebars/vm.js
@@ -0,0 +1,587 @@
+var Handlebars = {};
+Handlebars.parse = require("handlebars/compiler").Handlebars.parse;
+
+// BEGIN(BROWSER)
+Handlebars.Compiler = function() {};
+Handlebars.JavaScriptCompiler = function() {};
+
+(function(Compiler, JavaScriptCompiler) {
+  Compiler.OPCODE_MAP = {
+    invokeContent: 1,
+    getContext: 2,
+    lookupWithFallback: 3,
+    lookup: 4,
+    append: 5,
+    invokeMustache: 6,
+    escape: 7,
+    pushString: 8,
+    truthyOrFallback: 9,
+    functionOrFallback: 10,
+    invokeProgram: 11,
+    invokePartial: 12,
+    push: 13,
+    invokeInverse: 14
+  };
+
+  Compiler.MULTI_PARAM_OPCODES = {
+    invokeContent: 1,
+    getContext: 1,
+    lookupWithFallback: 1,
+    lookup: 1,
+    invokeMustache: 2,
+    pushString: 1,
+    truthyOrFallback: 1,
+    functionOrFallback: 1,
+    invokeProgram: 2,
+    invokePartial: 1,
+    push: 1,
+    invokeInverse: 1
+  };
+
+  Compiler.DISASSEMBLE_MAP = {}
+
+  for(prop in Compiler.OPCODE_MAP) {
+    var value = Compiler.OPCODE_MAP[prop];
+    Compiler.DISASSEMBLE_MAP[value] = prop;
+  }
+
+  Compiler.multiParamSize = function(code) {
+    return Compiler.MULTI_PARAM_OPCODES[Compiler.DISASSEMBLE_MAP[code]];
+  };
+
+  Compiler.prototype = {
+    disassemble: function() {
+      var opcodes = this.opcodes, opcode, nextCode;
+      var out = [], str, name, value;
+
+      for(var i=0, l=opcodes.length; i<l; i++) {
+        opcode = opcodes[i];
+
+        if(opcode === 'DECLARE') {
+          name = opcodes[++i];
+          value = opcodes[++i];
+          out.push("DECLARE " + name + " = " + value);
+        } else {
+          str = Compiler.DISASSEMBLE_MAP[opcode];
+
+          var extraParams = Compiler.multiParamSize(opcode);
+          var codes = [];
+
+          for(var j=0; j<extraParams; j++) {
+            nextCode = opcodes[++i];
+
+            if(typeof nextCode === "string") {
+              nextCode = "\"" + nextCode.replace("\n", "\\n") + "\"";
+            }
+
+            codes.push(nextCode);
+          }
+
+          str = str + " " + codes.join(" ");
+
+          out.push(str);
+        }
+      }
+
+      return out.join("\n")
+    },
+
+    guid: 0,
+
+    compile: function(program) {
+      this.children = [];
+      this.depths = {list: []};
+      return this.program(program);
+    },
+
+    accept: function(node) {
+      return this[node.type](node);
+    },
+
+    program: function(program) {
+      var statements = program.statements, statement;
+      this.opcodes = [];
+
+      for(var i=0, l=statements.length; i<l; i++) {
+        statement = statements[i];
+        this[statement.type](statement);
+      }
+
+      this.depths.list = this.depths.list.sort(function(a, b) {
+        return a - b;
+      });
+
+      return this;
+    },
+
+    compileProgram: function(program) {
+      var result = new Compiler().compile(program);
+      var guid = this.guid++;
+
+      this.children[guid] = result;
+
+      for(var i=0, l=result.depths.list.length; i<l; i++) {
+        depth = result.depths.list[i];
+
+        if(depth < 2) { continue; }
+        else { this.addDepth(depth - 1); }
+      }
+
+      return guid;
+    },
+
+    block: function(block) {
+      var mustache = block.mustache;
+      var params = mustache.params, depth, child, inverse;
+
+      this.pushParams(params);
+
+      // ID lookup is now on the stack
+      this.ID(mustache.id);
+
+      var programGuid = this.compileProgram(block.program);
+
+      if(block.program.inverse) {
+        var inverseGuid = this.compileProgram(block.program.inverse);
+      }
+
+      if(block.program.inverse) {
+        this.declare('inverse', inverseGuid);
+      }
+
+      this.opcode('invokeProgram', programGuid, params.length);
+      this.declare('inverse', null);
+      this.opcode('append');
+    },
+
+    inverse: function(block) {
+      this.ID(block.mustache.id);
+      var programGuid = this.compileProgram(block.program);
+
+      this.opcode('invokeInverse', programGuid);
+      this.opcode('append');
+    },
+
+    partial: function(partial) {
+      var id = partial.id;
+
+      if(partial.context) {
+        this.ID(partial.context);
+      } else {
+        this.opcode('push', 'context');
+      }
+
+      this.opcode('invokePartial', id.original);
+      this.opcode('append');
+    },
+
+    content: function(content) {
+      this.opcode('invokeContent', content.string);
+    },
+
+    mustache: function(mustache) {
+      var params = mustache.params;
+
+      this.pushParams(params);
+      this.ID(mustache.id);
+
+      this.opcode('invokeMustache', params.length, mustache.id.original);
+
+      if(mustache.escaped) { this.opcode('escape') }
+
+      this.opcode('append');
+    },
+
+    ID: function(id) {
+      this.addDepth(id.depth);
+
+      this.opcode('getContext', id.depth);
+
+      this.opcode('lookupWithFallback', id.parts[0] || null);
+
+      for(var i=1, l=id.parts.length; i<l; i++) {
+        this.opcode('lookup', id.parts[i]);
+      }
+    },
+
+    STRING: function(string) {
+      this.opcode('pushString', string.string);
+    },
+
+    comment: function() {},
+
+    pushParams: function(params) {
+      var i = params.length, param;
+
+      while(i--) {
+        param = params[i];
+        this[param.type](param);
+      }
+    },
+
+    opcode: function(name, val1, val2) {
+      this.opcodes.push(Compiler.OPCODE_MAP[name]);
+      if(val1 !== undefined) { this.opcodes.push(val1); }
+      if(val2 !== undefined) { this.opcodes.push(val2); }
+    },
+
+    declare: function(name, value) {
+      this.opcodes.push('DECLARE');
+      this.opcodes.push(name);
+      this.opcodes.push(value);
+    },
+
+    addDepth: function(depth) {
+      if(depth === 0) { return; }
+
+      if(!this.depths[depth]) {
+        this.depths[depth] = true;
+        this.depths.list.push(depth);
+      }
+    }
+  }
+
+  JavaScriptCompiler.prototype = {
+    compile: function(environment) {
+      this.preamble();
+      this.stackSlot = 0
+      this.stackVars = [];
+      this.environment = environment;
+
+      this.compileChildren(environment);
+
+      //puts(environment.disassemble());
+      //puts("")
+
+      var opcodes = environment.opcodes;
+      var opcode, name;
+      var declareName, declareVal;
+
+      for(var i=0, l=opcodes.length; i<l; i++) {
+        opcode = opcodes[i];
+
+        if(opcode === 'DECLARE') {
+          declareName = opcodes[++i];
+          declareVal  = opcodes[++i];
+          this[declareName] = declareVal;
+        } 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);
+        }
+      }
+
+      return this.createFunction();
+    },
+
+    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("");
+
+      // 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 = {};
+
+      if(this.stackVars.length > 0) {
+        this.source[this.locals] = "var " + this.stackVars.join(", ") + ";";
+      }
+
+      this.source.push("return buffer;")
+
+      var params = ["context", "helpers", "partials"];
+
+      for(var i=0, l=this.environment.depths.list.length; i<l; i++) {
+        params.push("depth" + this.environment.depths.list[i]);
+      }
+
+      params.push(this.source.join("\n"));
+
+      var fn = Function.apply(this, params);
+      fn.displayName = "Handlebars.js"
+
+      //puts(fn.toString())
+      //puts("")
+
+      container.render = fn;
+
+      container.children = this.environment.children;
+
+      return function(context, helpers, partials, depth) {
+        try {
+          return container.render.apply(container, arguments)
+        } catch(e) {
+          throw e;
+        }
+      }
+    },
+
+    invokeContent: 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 + " : '');");
+    },
+
+    getContext: function(depth) {
+      if(this.lastContext !== depth) {
+        this.lastContext = depth;
+
+        if(depth === 0) {
+          this.source.push("currentContext = context;");
+        } else {
+          this.source.push("currentContext = depth" + depth + ";");
+        }
+        // TODO: handle depths other than 0
+      }
+    },
+
+    nameLookup: function(parent, name) {
+      if(JavaScriptCompiler.RESERVED_WORDS[name]) {
+        return parent + "['" + name + "']";
+      } else {
+        return parent + "." + name;
+      }
+    },
+
+    lookupWithFallback: function(name) {
+      if(name) {
+        this.pushStack(this.nameLookup('currentContext', name));
+        var topStack = this.topStack();
+        this.source.push("if(" + topStack + " == null) { " + topStack + " = " + this.nameLookup('helpers', name) + "; }");
+      } else {
+        this.pushStack("currentContext");
+      }
+    },
+
+    lookup: function(name) {
+      var topStack = this.topStack();
+      this.source.push(topStack + " = " + this.nameLookup(topStack, name) + ";");
+    },
+
+    pushString: function(string) {
+      this.pushStack(this.quotedString(string));
+    },
+
+    push: function(name) {
+      this.pushStack(name);
+    },
+
+    invokeMustache: function(paramSize, original) {
+      this.source.push("tmp1 = " + this.popStack() + ";");
+      this.source.push("tmp2 = (typeof tmp1 === 'function');");
+
+      var params = ["context"];
+
+      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));
+
+      if(paramSize === 0) {
+        this.source.push("if(tmp2) { " + slot + " = tmp1.call(" + paramString + "); } else { " + slot + " = tmp1; }");
+      } else {
+        this.source.push("if(tmp2) { " + slot + " = tmp1.call(" + paramString + "); } else { " + slot + " = helpers.helperMissing.call(" + helperMissing + ") }");
+      }
+    },
+
+    invokeProgram: function(guid, paramSize) {
+      var inverse = 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 params = ["context"];
+      var blockMissingParams = ["context", id];
+
+      for(var i=0; i<paramSize; i++) {
+        var param = this.popStack();
+        params.push(param);
+        blockMissingParams.push(param);
+      }
+
+      programParams = ["this.children[" + guid + "]", "helpers", "partials"];
+      var depths = this.environment.rawChildren[guid].depths.list, depth;
+
+      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");
+
+      var nextStack = this.nextStack();
+
+      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;
+
+      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"];
+      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
+    },
+
+    // HELPERS
+
+    compileChildren: function(environment) {
+      var children = environment.children, child, compiler;
+      var compiled = [];
+
+      for(var i=0, l=children.length; i<l; i++) {
+        child = children[i];
+        compiler = new JavaScriptCompiler();
+
+        compiled[i] = compiler.compile(child);
+      }
+
+      environment.rawChildren = children;
+      environment.children = compiled;
+    },
+
+    pushStack: function(item) {
+      this.source.push(this.nextStack() + " = " + item + ";");
+      return "stack" + this.stackSlot;
+    },
+
+    nextStack: function() {
+      this.stackSlot++;
+      if(this.stackSlot > this.stackVars.length) { this.stackVars.push("stack" + this.stackSlot); }
+      return "stack" + this.stackSlot;
+    },
+
+    popStack: function() {
+      return "stack" + this.stackSlot--;
+    },
+
+    topStack: function() {
+      return "stack" + this.stackSlot;
+    },
+
+    quotedString: function(str) {
+      return '"' + str
+        .replace(/\\/, '\\\\')
+        .replace(/"/g, '\\"')
+        .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 " + 
+                       "try typeof var void while with null true false").split(" ");
+
+  compilerWords = JavaScriptCompiler.RESERVED_WORDS = {};
+
+  for(var i=0, l=reservedWords.length; i<l; i++) {
+    compilerWords[reservedWords[i]] = true;
+  }
+
+})(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) {
+    var ast = Handlebars.parse(string);
+    var environment = new Handlebars.Compiler().compile(ast);
+    return new Handlebars.JavaScriptCompiler().compile(environment);
+  },
+  invokePartial: function(partial, name, context, helpers, partials) {
+    if(partial instanceof Function) {
+      return partial(context, helpers, partials)
+    } else {
+      partials[name] = Handlebars.VM.compile(partial);
+      return partials[name](context, helpers, partials);
+    }
+  }
+};
+// END(BROWSER)
+
+exports.Compiler = Handlebars.Compiler;
+exports.JavaScriptCompiler = Handlebars.JavaScriptCompiler;
+exports.VM = Handlebars.VM;
diff --git a/spec/qunit_spec.js b/spec/qunit_spec.js
index 5ccc4578..c63edb01 100644
--- a/spec/qunit_spec.js
+++ b/spec/qunit_spec.js
@@ -7,7 +7,7 @@ Handlebars.registerHelper('helperMissing', function(helper, context) {
 });
 
 var shouldCompileTo = function(string, hash, expected, message) {
-  var template = Handlebars.compile(string);
+  var template = Handlebars.VM.compile(string);
   if(Object.prototype.toString.call(hash) === "[object Array]") {
     if(hash[1]) {
       for(var prop in Handlebars.helpers) {
@@ -43,7 +43,7 @@ test("compiling with a basic context", function() {
 });
 
 test("comments", function() {
-  shouldCompileTo("{{! Goodbye}}Goodbye\n{{cruel}}\n{{world}}!", 
+  shouldCompileTo("{{! Goodbye}}Goodbye\n{{cruel}}\n{{world}}!",
     {cruel: "cruel", world: "world"}, "Goodbye\ncruel\nworld!",
     "comments are ignored");
 });
@@ -80,7 +80,7 @@ test("escaping expressions", function() {
  shouldCompileTo("{{{awesome}}}", {awesome: "&\"\\<>"}, '&\"\\<>',
         "expressions with 3 handlebars aren't escaped");
 
- shouldCompileTo("{{awesome}}", {awesome: "&\"\\<>"}, '&amp;\"\\\\&lt;&gt;',
+ shouldCompileTo("{{awesome}}", {awesome: "&\"\\<>"}, '&amp;\"\\&lt;&gt;',
         "by default expressions should be escaped");
 
  shouldCompileTo("{{&awesome}}", {awesome: "&\"\\<>"}, '&\"\\<>',
@@ -90,7 +90,7 @@ test("escaping expressions", function() {
 
 test("functions returning safestrings shouldn't be escaped", function() {
   var hash = {awesome: function() { return new Handlebars.SafeString("&\"\\<>"); }};
-  shouldCompileTo("{{awesome}}", hash, '&\"\\<>', 
+  shouldCompileTo("{{awesome}}", hash, '&\"\\<>',
       "functions returning safestrings aren't escaped");
 });
 
@@ -100,7 +100,7 @@ test("functions", function() {
 });
 
 test("functions with context argument", function() {
-  shouldCompileTo("{{awesome frank}}", 
+  shouldCompileTo("{{awesome frank}}",
       {awesome: function(context) { return context; },
         frank: "Frank"},
       "Frank", "functions are called with context arguments");
@@ -121,7 +121,7 @@ test("--- TODO --- bad idea nested paths", function() {
 	var hash     = {goodbyes: [{text: "goodbye"}, {text: "Goodbye"}, {text: "GOODBYE"}], world: "world"};
   shouldThrow(function() {
       Handlebars.compile("{{#goodbyes}}{{../name/../name}}{{/goodbyes}}")(hash);
-    }, Handlebars.Exception, 
+    }, Handlebars.Exception,
     "Cannot jump (..) into previous context after moving into a context.");
 
   var string = "{{#goodbyes}}{{.././world}} {{/goodbyes}}";
@@ -140,8 +140,8 @@ test("complex but empty paths", function() {
 test("this keyword in paths", function() {
   var string = "{{#goodbyes}}{{this}}{{/goodbyes}}";
   var hash = {goodbyes: ["goodbye", "Goodbye", "GOODBYE"]};
-  shouldCompileTo(string, hash, "goodbyeGoodbyeGOODBYE", 
-    "This keyword in paths evaluates to current context"); 
+  shouldCompileTo(string, hash, "goodbyeGoodbyeGOODBYE",
+    "This keyword in paths evaluates to current context");
 
   string = "{{#hellos}}{{this/text}}{{/hellos}}"
   hash = {hellos: [{text: "hello"}, {text: "Hello"}, {text: "HELLO"}]};
@@ -161,7 +161,7 @@ test("inverted section with false value", function() {
   var hash = {goodbyes: false};
   shouldCompileTo(string, hash, "Right On!", "Inverted section rendered when value is false.");
 });
- 
+
 test("inverted section with empty set", function() {
   var string = "{{#goodbyes}}{{this}}{{/goodbyes}}{{^goodbyes}}Right On!{{/goodbyes}}";
   var hash = {goodbyes: []};
@@ -218,10 +218,10 @@ test("block with complex lookup", function() {
 });
 
 test("helper with complex lookup", function() {
-  var string = "{{#goodbyes}}{{{link}}}{{/goodbyes}}"
+  var string = "{{#goodbyes}}{{{link ../prefix}}}{{/goodbyes}}"
   var hash = {prefix: "/root", goodbyes: [{text: "Goodbye", url: "goodbye"}]};
-  var fallback = {link: function() { 
-    return "<a href='" + this.__get__("../prefix") + "/" + this.url + "'>" + this.text + "</a>" 
+  var fallback = {link: function(prefix) {
+    return "<a href='" + prefix + "/" + this.url + "'>" + this.text + "</a>"
   }};
   shouldCompileTo(string, [hash, fallback], "<a href='/root/goodbye'>Goodbye</a>")
 });
@@ -229,11 +229,11 @@ test("helper with complex lookup", function() {
 test("helper block with complex lookup expression", function() {
   var string = "{{#goodbyes}}{{../name}}{{/goodbyes}}"
   var hash = {name: "Alan"};
-  var fallback = {goodbyes: function(context, fn) { 
+  var fallback = {goodbyes: function(fn) {
 		var out = "";
 		var byes = ["Goodbye", "goodbye", "GOODBYE"];
 		for (var i = 0,j = byes.length; i < j; i++) {
-			out += byes[i] + " " + fn(context) + "! ";
+			out += byes[i] + " " + fn(this) + "! ";
 		}
     return out;
   }};
@@ -241,10 +241,10 @@ test("helper block with complex lookup expression", function() {
 });
 
 test("helper with complex lookup and nested template", function() {
-  var string = "{{#goodbyes}}{{#link}}{{text}}{{/link}}{{/goodbyes}}";
+  var string = "{{#goodbyes}}{{#link ../prefix}}{{text}}{{/link}}{{/goodbyes}}";
   var hash = {prefix: '/root', goodbyes: [{text: "Goodbye", url: "goodbye"}]};
-  var fallback = {link: function (context, fn) {
-      return "<a href='" + this.__get__("../prefix") + "/" + this.url + "'>" + fn(this) + "</a>";
+  var fallback = {link: function (prefix, fn) {
+      return "<a href='" + prefix + "/" + this.url + "'>" + fn(this) + "</a>";
   }};
   shouldCompileTo(string, [hash, fallback], "<a href='/root/goodbye'>Goodbye</a>")
 });
@@ -272,10 +272,10 @@ test("block helper staying in the same context", function() {
   equal(result, "<form><p>Yehuda</p></form>");
 });
 
-test("block helper should have wrapped context in this", function() {
+test("block helper should have context in this", function() {
   var source = "<ul>{{#people}}<li>{{#link}}{{name}}{{/link}}</li>{{/people}}</ul>";
-  var link = function(context, fn) {
-    return '<a href="/people/' + this.__get__("id") + '">' + fn(this) + '</a>';
+  var link = function(fn) {
+    return '<a href="/people/' + this.id + '">' + fn(this) + '</a>';
   };
   var data = { "people": [
     { "name": "Alan", "id": 1 },
@@ -315,33 +315,47 @@ test("nested block helpers", function() {
 });
 
 test("block inverted sections", function() {
-  shouldCompileTo("{{#people}}{{name}}{{^}}{{../none}}{{/people}}", {none: "No people"},
+  shouldCompileTo("{{#people}}{{name}}{{^}}{{none}}{{/people}}", {none: "No people"},
+    "No people");
+});
+
+test("block inverted sections with empty arrays", function() {
+  shouldCompileTo("{{#people}}{{name}}{{^}}{{none}}{{/people}}", {none: "No people", people: []},
     "No people");
 });
 
 test("block helper inverted sections", function() {
   var string = "{{#list people}}{{name}}{{^}}<em>Nobody's here</em>{{/list}}"
-  var list = function(context, fn) { 
+  var list = function(context, fn, inverse) {
     if (context.length > 0) {
       var out = "<ul>";
       for(var i = 0,j=context.length; i < j; i++) {
-        out += "<li>"; 
+        out += "<li>";
         out += fn(context[i]);
         out += "</li>";
       }
       out += "</ul>";
       return out;
+    } else {
+      return "<p>" + inverse(this) + "</p>";
     }
   };
 
-  list.not = function(context, fn) {
-    return "<p>" + fn(context, this) + "</p>"; 
-  };
   var hash = {list: list, people: [{name: "Alan"}, {name: "Yehuda"}]};
+  var empty = {list: list, people: []};
+  var rootMessage = {
+    list: function(context, fn, inverse) { if(context.length === 0) { return "<p>" + inverse(this) + "</p>"; } },
+    people: [],
+    message: "Nobody's here"
+  }
+
+  var messageString = "{{#list people}}Hello{{^}}{{message}}{{/list}}";
 
   // the meaning here may be kind of hard to catch, but list.not is always called,
   // so we should see the output of both
-  shouldCompileTo(string, hash, "<ul><li>Alan</li><li>Yehuda</li></ul><p><em>Nobody's here</em></p>", "Not is called when block inverted section is encountered.");
+  shouldCompileTo(string, hash, "<ul><li>Alan</li><li>Yehuda</li></ul>", "an inverse wrapper is passed in as a new context");
+  shouldCompileTo(string, empty, "<p><em>Nobody's here</em></p>", "an inverse wrapper can be optionally called");
+  shouldCompileTo(messageString, rootMessage, "<p>Nobody's here</p>", "the context of an inverse is the parent of the block");
 });
 
 module("fallback hash");
@@ -390,7 +404,7 @@ test("partial in a partial", function() {
 
 test("rendering undefined partial throws an exception", function() {
   shouldThrow(function() {
-      var template = Handlebars.compile("{{> whatever}}"); 
+      var template = Handlebars.compile("{{> whatever}}");
       template();
     }, Handlebars.Exception, "Should throw exception");
 });
@@ -452,7 +466,7 @@ test("block multi-params work", function() {
   var string   = 'Message: {{#goodbye cruel world}}{{greeting}} {{adj}} {{noun}}{{/goodbye}}';
   var hash     = {cruel: "cruel", world: "world"}
   var fallback = {goodbye: function(cruel, world, fn) {
-    return fn({greeting: "Goodbye", adj: "cruel", noun: "world"});
+    return fn({greeting: "Goodbye", adj: cruel, noun: world});
   }}
   shouldCompileTo(string, [hash, fallback], "Message: Goodbye cruel world", "block helpers with multiple params");
 })
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index 9ddde768..b784fe9a 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -54,10 +54,14 @@ module Handlebars
       context["exports"] = nil
 
       context["p"] = proc do |val|
-        p val
+        p val if ENV["DEBUG_JS"]
       end
 
       context["puts"] = proc do |val|
+        puts val if ENV["DEBUG_JS"]
+      end
+
+      context["puts_node"] = proc do |val|
         puts context["Handlebars"]["PrintVisitor"].new.accept(val)
         puts
       end
@@ -75,6 +79,7 @@ module Handlebars
       Handlebars::Spec.js_load('lib/handlebars/printer.js')
       Handlebars::Spec.js_load('lib/handlebars/runtime.js')
       Handlebars::Spec.js_load('lib/handlebars/utils.js')
+      Handlebars::Spec.js_load('lib/Handlebars/vm.js')
       Handlebars::Spec.js_load('lib/handlebars.js')
     end
   end