diff --git a/ethchain/asm.go b/ethchain/asm.go
index 09d6af56fc..2697953fd8 100644
--- a/ethchain/asm.go
+++ b/ethchain/asm.go
@@ -24,6 +24,10 @@ func Disassemble(script []byte) (asm []string) {
 		case PUSH1, PUSH2, PUSH3, PUSH4, PUSH5, PUSH6, PUSH7, PUSH8, PUSH9, PUSH10, PUSH11, PUSH12, PUSH13, PUSH14, PUSH15, PUSH16, PUSH17, PUSH18, PUSH19, PUSH20, PUSH21, PUSH22, PUSH23, PUSH24, PUSH25, PUSH26, PUSH27, PUSH28, PUSH29, PUSH30, PUSH31, PUSH32:
 			pc.Add(pc, ethutil.Big1)
 			a := int64(op) - int64(PUSH1) + 1
+			if int(pc.Int64()+a) > len(script) {
+				return nil
+			}
+
 			data := script[pc.Int64() : pc.Int64()+a]
 			if len(data) == 0 {
 				data = []byte{0}
diff --git a/ethchain/block_chain.go b/ethchain/block_chain.go
index df735d6797..f72a777066 100644
--- a/ethchain/block_chain.go
+++ b/ethchain/block_chain.go
@@ -294,7 +294,6 @@ func (bc *BlockChain) setLastBlock() {
 		bc.LastBlockHash = block.Hash()
 		bc.LastBlockNumber = block.Number.Uint64()
 
-		chainlogger.Infof("Last known block height #%d\n", bc.LastBlockNumber)
 	} else {
 		AddTestNetFunds(bc.genesisBlock)
 
@@ -309,7 +308,7 @@ func (bc *BlockChain) setLastBlock() {
 	// Set the last know difficulty (might be 0x0 as initial value, Genesis)
 	bc.TD = ethutil.BigD(ethutil.Config.Db.LastKnownTD())
 
-	chainlogger.Infof("Last block: %x\n", bc.CurrentBlock.Hash())
+	chainlogger.Infof("Last block (#%d) %x\n", bc.LastBlockNumber, bc.CurrentBlock.Hash())
 }
 
 func (bc *BlockChain) SetTotalDifficulty(td *big.Int) {
diff --git a/ethchain/closure.go b/ethchain/closure.go
index cc769de305..1f7f8d703c 100644
--- a/ethchain/closure.go
+++ b/ethchain/closure.go
@@ -84,13 +84,7 @@ func (c *Closure) Call(vm *Vm, args []byte) ([]byte, *big.Int, error) {
 
 func (c *Closure) Return(ret []byte) []byte {
 	// Return the remaining gas to the caller
-	// If no caller is present return it to
-	// the origin (i.e. contract or tx)
-	if c.caller != nil {
-		c.caller.ReturnGas(c.Gas, c.Price, c.State)
-	} else {
-		c.object.ReturnGas(c.Gas, c.Price, c.State)
-	}
+	c.caller.ReturnGas(c.Gas, c.Price, c.State)
 
 	return ret
 }
diff --git a/ethchain/dagger.go b/ethchain/dagger.go
index adf1c2f05e..4dda21ff5d 100644
--- a/ethchain/dagger.go
+++ b/ethchain/dagger.go
@@ -3,7 +3,6 @@ package ethchain
 import (
 	"github.com/ethereum/eth-go/ethcrypto"
 	"github.com/ethereum/eth-go/ethlog"
-	"github.com/ethereum/eth-go/ethreact"
 	"github.com/ethereum/eth-go/ethutil"
 	"github.com/obscuren/sha3"
 	"hash"
@@ -15,7 +14,7 @@ import (
 var powlogger = ethlog.NewLogger("POW")
 
 type PoW interface {
-	Search(block *Block, reactChan chan ethreact.Event) []byte
+	Search(block *Block, reactChan chan ethutil.React) []byte
 	Verify(hash []byte, diff *big.Int, nonce []byte) bool
 }
 
@@ -23,7 +22,7 @@ type EasyPow struct {
 	hash *big.Int
 }
 
-func (pow *EasyPow) Search(block *Block, reactChan chan ethreact.Event) []byte {
+func (pow *EasyPow) Search(block *Block, reactChan chan ethutil.React) []byte {
 	r := rand.New(rand.NewSource(time.Now().UnixNano()))
 	hash := block.HashNoNonce()
 	diff := block.Difficulty
diff --git a/ethchain/state.go b/ethchain/state.go
index 20af94fe83..8df79dcef2 100644
--- a/ethchain/state.go
+++ b/ethchain/state.go
@@ -1,6 +1,7 @@
 package ethchain
 
 import (
+	"fmt"
 	"github.com/ethereum/eth-go/ethcrypto"
 	"github.com/ethereum/eth-go/ethtrie"
 	"github.com/ethereum/eth-go/ethutil"
@@ -26,6 +27,131 @@ func NewState(trie *ethtrie.Trie) *State {
 	return &State{trie: trie, stateObjects: make(map[string]*StateObject), manifest: NewManifest()}
 }
 
+// Iterate over each storage address and yield callback
+func (s *State) EachStorage(cb ethtrie.EachCallback) {
+	it := s.trie.NewIterator()
+	it.Each(cb)
+}
+
+// Retrieve the balance from the given address or 0 if object not found
+func (self *State) GetBalance(addr []byte) *big.Int {
+	stateObject := self.GetStateObject(addr)
+	if stateObject != nil {
+		return stateObject.Amount
+	}
+
+	return ethutil.Big0
+}
+
+func (self *State) GetNonce(addr []byte) uint64 {
+	stateObject := self.GetStateObject(addr)
+	if stateObject != nil {
+		return stateObject.Nonce
+	}
+
+	return 0
+}
+
+//
+// Setting, updating & deleting state object methods
+//
+
+// Update the given state object and apply it to state trie
+func (self *State) UpdateStateObject(stateObject *StateObject) {
+	addr := stateObject.Address()
+
+	ethutil.Config.Db.Put(ethcrypto.Sha3Bin(stateObject.Script()), stateObject.Script())
+
+	self.trie.Update(string(addr), string(stateObject.RlpEncode()))
+
+	self.manifest.AddObjectChange(stateObject)
+}
+
+// Delete the given state object and delete it from the state trie
+func (self *State) DeleteStateObject(stateObject *StateObject) {
+	self.trie.Delete(string(stateObject.Address()))
+
+	delete(self.stateObjects, string(stateObject.Address()))
+}
+
+// Retrieve a state object given my the address. Nil if not found
+func (self *State) GetStateObject(addr []byte) *StateObject {
+	stateObject := self.stateObjects[string(addr)]
+	if stateObject != nil {
+		return stateObject
+	}
+
+	data := self.trie.Get(string(addr))
+	if len(data) == 0 {
+		return nil
+	}
+
+	stateObject = NewStateObjectFromBytes(addr, []byte(data))
+	self.stateObjects[string(addr)] = stateObject
+
+	return stateObject
+}
+
+// Retrieve a state object or create a new state object if nil
+func (self *State) GetOrNewStateObject(addr []byte) *StateObject {
+	stateObject := self.GetStateObject(addr)
+	if stateObject == nil {
+		stateObject = self.NewStateObject(addr)
+	}
+
+	return stateObject
+}
+
+// Create a state object whether it exist in the trie or not
+func (self *State) NewStateObject(addr []byte) *StateObject {
+	statelogger.Infof("(+) %x\n", addr)
+
+	stateObject := NewStateObject(addr)
+	self.stateObjects[string(addr)] = stateObject
+
+	return stateObject
+}
+
+// Deprecated
+func (self *State) GetAccount(addr []byte) *StateObject {
+	return self.GetOrNewStateObject(addr)
+}
+
+//
+// Setting, copying of the state methods
+//
+
+func (s *State) Cmp(other *State) bool {
+	return s.trie.Cmp(other.trie)
+}
+
+func (self *State) Copy() *State {
+	if self.trie != nil {
+		state := NewState(self.trie.Copy())
+		for k, stateObject := range self.stateObjects {
+			state.stateObjects[k] = stateObject.Copy()
+		}
+
+		return state
+	}
+
+	return nil
+}
+
+func (self *State) Set(state *State) {
+	if state == nil {
+		panic("Tried setting 'state' to nil through 'Set'")
+	}
+
+	self.trie = state.trie
+	self.stateObjects = state.stateObjects
+	//*self = *state
+}
+
+func (s *State) Root() interface{} {
+	return s.trie.Root
+}
+
 // Resets the trie and all siblings
 func (s *State) Reset() {
 	s.trie.Undo()
@@ -36,7 +162,8 @@ func (s *State) Reset() {
 			continue
 		}
 
-		stateObject.state.Reset()
+		//stateObject.state.Reset()
+		stateObject.Reset()
 	}
 
 	s.Empty()
@@ -67,109 +194,29 @@ func (self *State) Empty() {
 func (self *State) Update() {
 	for _, stateObject := range self.stateObjects {
 		if stateObject.remove {
-			self.trie.Delete(string(stateObject.Address()))
+			self.DeleteStateObject(stateObject)
 		} else {
+			stateObject.Sync()
+
 			self.UpdateStateObject(stateObject)
 		}
 	}
-}
 
-// Purges the current trie.
-func (s *State) Purge() int {
-	return s.trie.NewIterator().Purge()
-}
-
-func (s *State) EachStorage(cb ethtrie.EachCallback) {
-	it := s.trie.NewIterator()
-	it.Each(cb)
-}
-
-func (self *State) ResetStateObject(stateObject *StateObject) {
-	delete(self.stateObjects, string(stateObject.Address()))
-
-	stateObject.state.Reset()
-}
-
-func (self *State) UpdateStateObject(stateObject *StateObject) {
-	addr := stateObject.Address()
-
-	ethutil.Config.Db.Put(ethcrypto.Sha3Bin(stateObject.Script()), stateObject.Script())
-
-	self.trie.Update(string(addr), string(stateObject.RlpEncode()))
-
-	self.manifest.AddObjectChange(stateObject)
-}
-
-func (self *State) GetStateObject(addr []byte) *StateObject {
-	stateObject := self.stateObjects[string(addr)]
-	if stateObject != nil {
-		return stateObject
+	// FIXME trie delete is broken
+	valid, t2 := ethtrie.ParanoiaCheck(self.trie)
+	if !valid {
+		self.trie = t2
 	}
+}
 
-	data := self.trie.Get(string(addr))
-	if len(data) == 0 {
-		return nil
+// Debug stuff
+func (self *State) CreateOutputForDiff() {
+	for addr, stateObject := range self.stateObjects {
+		fmt.Printf("0x%x 0x%x 0x%x 0x%x\n", addr, stateObject.state.Root(), stateObject.Amount.Bytes(), stateObject.Nonce)
+		stateObject.state.EachStorage(func(addr string, value *ethutil.Value) {
+			fmt.Printf("0x%x 0x%x\n", addr, value.Bytes())
+		})
 	}
-
-	stateObject = NewStateObjectFromBytes(addr, []byte(data))
-	self.stateObjects[string(addr)] = stateObject
-
-	return stateObject
-}
-
-func (self *State) GetOrNewStateObject(addr []byte) *StateObject {
-	stateObject := self.GetStateObject(addr)
-	if stateObject == nil {
-		stateObject = self.NewStateObject(addr)
-	}
-
-	return stateObject
-}
-
-func (self *State) NewStateObject(addr []byte) *StateObject {
-	statelogger.Infof("(+) %x\n", addr)
-
-	stateObject := NewStateObject(addr)
-	self.stateObjects[string(addr)] = stateObject
-
-	return stateObject
-}
-
-func (self *State) GetAccount(addr []byte) *StateObject {
-	return self.GetOrNewStateObject(addr)
-}
-
-func (s *State) Cmp(other *State) bool {
-	return s.trie.Cmp(other.trie)
-}
-
-func (self *State) Copy() *State {
-	if self.trie != nil {
-		state := NewState(self.trie.Copy())
-		for k, stateObject := range self.stateObjects {
-			state.stateObjects[k] = stateObject.Copy()
-		}
-
-		return state
-	}
-
-	return nil
-}
-
-func (self *State) Set(state *State) {
-	if state == nil {
-		panic("Tried setting 'state' to nil through 'Set'")
-	}
-
-	*self = *state
-}
-
-func (s *State) Put(key, object []byte) {
-	s.trie.Update(string(key), string(object))
-}
-
-func (s *State) Root() interface{} {
-	return s.trie.Root
 }
 
 // Object manifest
diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index 52a73beb82..62fcda8a5c 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"github.com/ethereum/eth-go/ethcrypto"
 	"github.com/ethereum/eth-go/ethlog"
-	"github.com/ethereum/eth-go/ethreact"
 	"github.com/ethereum/eth-go/ethtrie"
 	"github.com/ethereum/eth-go/ethutil"
 	"github.com/ethereum/eth-go/ethwire"
@@ -37,7 +36,7 @@ type EthManager interface {
 	BlockChain() *BlockChain
 	TxPool() *TxPool
 	Broadcast(msgType ethwire.MsgType, data []interface{})
-	Reactor() *ethreact.ReactorEngine
+	Reactor() *ethutil.ReactorEngine
 	PeerCount() int
 	IsMining() bool
 	IsListening() bool
@@ -67,6 +66,11 @@ type StateManager struct {
 	// Mining state. The mining state is used purely and solely by the mining
 	// operation.
 	miningState *State
+
+	// The last attempted block is mainly used for debugging purposes
+	// This does not have to be a valid block and will be set during
+	// 'Process' & canonical validation.
+	lastAttemptedBlock *Block
 }
 
 func NewStateManager(ethereum EthManager) *StateManager {
@@ -146,6 +150,10 @@ done:
 
 		receipts = append(receipts, receipt)
 		handled = append(handled, tx)
+
+		if ethutil.Config.Diff {
+			state.CreateOutputForDiff()
+		}
 	}
 
 	parent.GasUsed = totalUsedGas
@@ -166,6 +174,8 @@ func (sm *StateManager) Process(block *Block, dontReact bool) (err error) {
 		return ParentError(block.PrevHash)
 	}
 
+	sm.lastAttemptedBlock = block
+
 	var (
 		parent = sm.bc.GetBlock(block.PrevHash)
 		state  = parent.State()
@@ -177,6 +187,10 @@ func (sm *StateManager) Process(block *Block, dontReact bool) (err error) {
 	// before that.
 	defer state.Reset()
 
+	if ethutil.Config.Diff {
+		fmt.Printf("## 0x%x 0x%x ##\n", block.Hash(), block.Number)
+	}
+
 	receipts, err := sm.ApplyDiff(state, parent, block)
 	defer func() {
 		if err != nil {
diff --git a/ethchain/state_object.go b/ethchain/state_object.go
index 5a43de35c6..ebc0508638 100644
--- a/ethchain/state_object.go
+++ b/ethchain/state_object.go
@@ -27,6 +27,8 @@ type StateObject struct {
 	script     Code
 	initScript Code
 
+	storage map[string]*ethutil.Value
+
 	// Total gas pool is the total amount of gas currently
 	// left if this object is the coinbase. Gas is directly
 	// purchased of the coinbase.
@@ -38,6 +40,10 @@ type StateObject struct {
 	remove bool
 }
 
+func (self *StateObject) Reset() {
+	self.storage = make(map[string]*ethutil.Value)
+}
+
 // Converts an transaction in to a state object
 func MakeContract(tx *Transaction, state *State) *StateObject {
 	// Create contract if there's no recipient
@@ -55,14 +61,19 @@ func MakeContract(tx *Transaction, state *State) *StateObject {
 }
 
 func NewStateObject(addr []byte) *StateObject {
-	object := &StateObject{address: addr, Amount: new(big.Int), gasPool: new(big.Int)}
+	// This to ensure that it has 20 bytes (and not 0 bytes), thus left or right pad doesn't matter.
+	address := ethutil.LeftPadBytes(addr, 20)
+
+	object := &StateObject{address: address, Amount: new(big.Int), gasPool: new(big.Int)}
 	object.state = NewState(ethtrie.NewTrie(ethutil.Config.Db, ""))
+	object.storage = make(map[string]*ethutil.Value)
 
 	return object
 }
 
 func NewContract(address []byte, Amount *big.Int, root []byte) *StateObject {
-	contract := &StateObject{address: address, Amount: Amount, Nonce: 0}
+	contract := NewStateObject(address)
+	contract.Amount = Amount
 	contract.state = NewState(ethtrie.NewTrie(ethutil.Config.Db, string(root)))
 
 	return contract
@@ -84,6 +95,7 @@ func NewStateObjectFromBytes(address, data []byte) *StateObject {
 
 func (self *StateObject) MarkForDeletion() {
 	self.remove = true
+	statelogger.Infof("%x: #%d %v (deletion)\n", self.Address(), self.Nonce, self.Amount)
 }
 
 func (c *StateObject) GetAddr(addr []byte) *ethutil.Value {
@@ -94,24 +106,43 @@ func (c *StateObject) SetAddr(addr []byte, value interface{}) {
 	c.state.trie.Update(string(addr), string(ethutil.NewValue(value).Encode()))
 }
 
-func (c *StateObject) SetStorage(num *big.Int, val *ethutil.Value) {
-	addr := ethutil.BigToBytes(num, 256)
+func (self *StateObject) GetStorage(key *big.Int) *ethutil.Value {
+	return self.getStorage(key.Bytes())
+}
+func (self *StateObject) SetStorage(key *big.Int, value *ethutil.Value) {
+	self.setStorage(key.Bytes(), value)
+}
 
-	if val.BigInt().Cmp(ethutil.Big0) == 0 {
-		c.state.trie.Delete(string(addr))
+func (self *StateObject) getStorage(key []byte) *ethutil.Value {
+	k := ethutil.LeftPadBytes(key, 32)
 
-		return
+	value := self.storage[string(k)]
+	if value == nil {
+		value = self.GetAddr(k)
+
+		self.storage[string(k)] = value
 	}
 
-	c.SetAddr(addr, val)
+	return value
 }
 
-func (c *StateObject) GetStorage(num *big.Int) *ethutil.Value {
-	nb := ethutil.BigToBytes(num, 256)
+func (self *StateObject) setStorage(key []byte, value *ethutil.Value) {
+	k := ethutil.LeftPadBytes(key, 32)
 
-	return c.GetAddr(nb)
+	self.storage[string(k)] = value
 }
 
+func (self *StateObject) Sync() {
+	for key, value := range self.storage {
+		if value.BigInt().Cmp(ethutil.Big0) == 0 {
+			self.state.trie.Delete(string(key))
+			continue
+		}
+
+		self.SetAddr([]byte(key), value)
+
+	}
+}
 func (c *StateObject) GetInstr(pc *big.Int) *ethutil.Value {
 	if int64(len(c.script)-1) < pc.Int64() {
 		return ethutil.NewValue(0)
@@ -248,6 +279,7 @@ func (c *StateObject) RlpDecode(data []byte) {
 	c.Nonce = decoder.Get(0).Uint()
 	c.Amount = decoder.Get(1).BigInt()
 	c.state = NewState(ethtrie.NewTrie(ethutil.Config.Db, decoder.Get(2).Interface()))
+	c.storage = make(map[string]*ethutil.Value)
 
 	c.ScriptHash = decoder.Get(3).Bytes()
 
diff --git a/ethchain/state_transition.go b/ethchain/state_transition.go
index 6ea9a837d7..314d858f24 100644
--- a/ethchain/state_transition.go
+++ b/ethchain/state_transition.go
@@ -164,8 +164,6 @@ func (self *StateTransition) TransitionState() (err error) {
 	// Increment the nonce for the next transaction
 	sender.Nonce += 1
 
-	receiver = self.Receiver()
-
 	// Transaction gas
 	if err = self.UseGas(GasTx); err != nil {
 		return
@@ -178,13 +176,23 @@ func (self *StateTransition) TransitionState() (err error) {
 		return
 	}
 
+	/* FIXME
+	 * If tx goes TO "0", goes OOG during init, reverse changes, but initial endowment should happen. The ether is lost forever
+	 */
+	var snapshot *State
+
 	// If the receiver is nil it's a contract (\0*32).
-	if receiver == nil {
+	if tx.CreatesContract() {
+		snapshot = self.state.Copy()
+
 		// Create a new state object for the contract
 		receiver = self.MakeStateObject(self.state, tx)
+		self.rec = receiver
 		if receiver == nil {
 			return fmt.Errorf("Unable to create contract")
 		}
+	} else {
+		receiver = self.Receiver()
 	}
 
 	// Transfer value from sender to receiver
@@ -192,7 +200,9 @@ func (self *StateTransition) TransitionState() (err error) {
 		return
 	}
 
-	//snapshot := self.state.Copy()
+	if snapshot == nil {
+		snapshot = self.state.Copy()
+	}
 
 	// Process the init code and create 'valid' contract
 	if IsContractAddr(self.receiver) {
@@ -203,8 +213,7 @@ func (self *StateTransition) TransitionState() (err error) {
 
 		code, err := self.Eval(receiver.Init(), receiver, "init")
 		if err != nil {
-			//self.state.Set(snapshot)
-			self.state.ResetStateObject(receiver)
+			self.state.Set(snapshot)
 
 			return fmt.Errorf("Error during init execution %v", err)
 		}
@@ -214,8 +223,7 @@ func (self *StateTransition) TransitionState() (err error) {
 		if len(receiver.Script()) > 0 {
 			_, err = self.Eval(receiver.Script(), receiver, "code")
 			if err != nil {
-				//self.state.Set(snapshot)
-				self.state.ResetStateObject(receiver)
+				self.state.Set(snapshot)
 
 				return fmt.Errorf("Error during code execution %v", err)
 			}
diff --git a/ethchain/vm.go b/ethchain/vm.go
index 769333649d..f1794ff772 100644
--- a/ethchain/vm.go
+++ b/ethchain/vm.go
@@ -22,12 +22,16 @@ var (
 	GasMemory  = big.NewInt(1)
 	GasData    = big.NewInt(5)
 	GasTx      = big.NewInt(500)
+
+	LogTyPretty byte = 0x1
+	LogTyDiff   byte = 0x2
 )
 
 type Debugger interface {
 	BreakHook(step int, op OpCode, mem *Memory, stack *Stack, stateObject *StateObject) bool
 	StepHook(step int, op OpCode, mem *Memory, stack *Stack, stateObject *StateObject) bool
 	BreakPoints() []int64
+	SetCode(byteCode []byte)
 }
 
 type Vm struct {
@@ -44,6 +48,7 @@ type Vm struct {
 
 	Verbose bool
 
+	logTy  byte
 	logStr string
 
 	err error
@@ -69,7 +74,7 @@ type RuntimeVars struct {
 }
 
 func (self *Vm) Printf(format string, v ...interface{}) *Vm {
-	if self.Verbose {
+	if self.Verbose && self.logTy == LogTyPretty {
 		self.logStr += fmt.Sprintf(format, v...)
 	}
 
@@ -77,7 +82,7 @@ func (self *Vm) Printf(format string, v ...interface{}) *Vm {
 }
 
 func (self *Vm) Endl() *Vm {
-	if self.Verbose {
+	if self.Verbose && self.logTy == LogTyPretty {
 		vmlogger.Debugln(self.logStr)
 		self.logStr = ""
 	}
@@ -86,7 +91,12 @@ func (self *Vm) Endl() *Vm {
 }
 
 func NewVm(state *State, stateManager *StateManager, vars RuntimeVars) *Vm {
-	return &Vm{vars: vars, state: state, stateManager: stateManager}
+	lt := LogTyPretty
+	if ethutil.Config.Diff {
+		lt = LogTyDiff
+	}
+
+	return &Vm{vars: vars, state: state, stateManager: stateManager, logTy: lt}
 }
 
 var Pow256 = ethutil.BigPow(2, 256)
@@ -103,7 +113,17 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 		}
 	}()
 
-	vmlogger.Debugf("(%s) %x gas: %v (d) %x\n", vm.Fn, closure.object.Address(), closure.Gas, closure.Args)
+	// Debug hook
+	if vm.Dbg != nil {
+		vm.Dbg.SetCode(closure.Script)
+	}
+
+	// Don't bother with the execution if there's no code.
+	if len(closure.Script) == 0 {
+		return closure.Return(nil), nil
+	}
+
+	vmlogger.Debugf("(%s) %x gas: %v (d) %x\n", vm.Fn, closure.Address(), closure.Gas, closure.Args)
 
 	var (
 		op OpCode
@@ -132,6 +152,17 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 		// Get the opcode (it must be an opcode!)
 		op = OpCode(val.Uint())
 
+		// XXX Leave this Println intact. Don't change this to the log system.
+		// Used for creating diffs between implementations
+		if vm.logTy == LogTyDiff {
+			b := pc.Bytes()
+			if len(b) == 0 {
+				b = []byte{0}
+			}
+
+			fmt.Printf("%x %x %x %x\n", closure.Address(), b, []byte{byte(op)}, closure.Gas.Bytes())
+		}
+
 		gas := new(big.Int)
 		addStepGasUsage := func(amount *big.Int) {
 			if amount.Cmp(ethutil.Big0) >= 0 {
@@ -167,7 +198,9 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			require(2)
 			newMemSize = stack.Peek().Uint64() + 32
 		case MLOAD:
+			require(1)
 
+			newMemSize = stack.Peek().Uint64() + 32
 		case MSTORE8:
 			require(2)
 			newMemSize = stack.Peek().Uint64() + 1
@@ -415,7 +448,10 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			require(2)
 			val, th := stack.Popn()
 			if th.Cmp(big.NewInt(32)) < 0 {
-				stack.Push(big.NewInt(int64(len(val.Bytes())-1) - th.Int64()))
+				byt := big.NewInt(int64(val.Bytes()[th.Int64()]))
+				stack.Push(byt)
+
+				vm.Printf(" => 0x%x", byt.Bytes())
 			} else {
 				stack.Push(ethutil.BigFalse)
 			}
@@ -427,13 +463,26 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			data := ethcrypto.Sha3Bin(mem.Get(offset.Int64(), size.Int64()))
 
 			stack.Push(ethutil.BigD(data))
+
+			vm.Printf(" => %x", data)
 			// 0x30 range
 		case ADDRESS:
-			stack.Push(ethutil.BigD(closure.Object().Address()))
+			stack.Push(ethutil.BigD(closure.Address()))
+
+			vm.Printf(" => %x", closure.Address())
 		case BALANCE:
-			stack.Push(closure.object.Amount)
+			require(1)
+
+			addr := stack.Pop().Bytes()
+			balance := vm.state.GetBalance(addr)
+
+			stack.Push(balance)
+
+			vm.Printf(" => %v (%x)", balance, addr)
 		case ORIGIN:
 			stack.Push(ethutil.BigD(vm.vars.Origin))
+
+			vm.Printf(" => %v", vm.vars.Origin)
 		case CALLER:
 			caller := closure.caller.Address()
 			stack.Push(ethutil.BigD(caller))
@@ -441,6 +490,8 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			vm.Printf(" => %x", caller)
 		case CALLVALUE:
 			stack.Push(vm.vars.Value)
+
+			vm.Printf(" => %v", vm.vars.Value)
 		case CALLDATALOAD:
 			require(1)
 			offset := stack.Pop().Int64()
@@ -499,8 +550,10 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			}
 
 			code := closure.Script[cOff : cOff+l]
+			fmt.Println("len:", l, "code off:", cOff, "mem off:", mOff)
 
 			mem.Set(mOff, l, code)
+			fmt.Println(Code(mem.Get(mOff, l)))
 		case GASPRICE:
 			stack.Push(closure.Price)
 
@@ -562,8 +615,9 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 		case MSTORE8:
 			require(2)
 			val, mStart := stack.Popn()
-			base.And(val, new(big.Int).SetInt64(0xff))
-			mem.Set(mStart.Int64(), 32, ethutil.BigToBytes(base, 256))
+			//base.And(val, new(big.Int).SetInt64(0xff))
+			//mem.Set(mStart.Int64(), 32, ethutil.BigToBytes(base, 256))
+			mem.store[mStart.Int64()] = byte(val.Int64() & 0xff)
 
 			vm.Printf(" => 0x%x", val)
 		case SLOAD:
@@ -623,9 +677,9 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 			)
 
 			// Generate a new address
-			addr := ethcrypto.CreateAddress(closure.object.Address(), closure.object.Nonce)
+			addr := ethcrypto.CreateAddress(closure.Address(), closure.N().Uint64())
 			for i := uint64(0); vm.state.GetStateObject(addr) != nil; i++ {
-				ethcrypto.CreateAddress(closure.object.Address(), closure.object.Nonce+i)
+				ethcrypto.CreateAddress(closure.Address(), closure.N().Uint64()+i)
 			}
 			closure.object.Nonce++
 
@@ -638,14 +692,15 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 				contract.AddAmount(value)
 
 				// Set the init script
-				contract.initScript = mem.Get(offset.Int64(), size.Int64())
+				initCode := mem.Get(offset.Int64(), size.Int64())
+				//fmt.Printf("%x\n", initCode)
 				// Transfer all remaining gas to the new
 				// contract so it may run the init script
 				gas := new(big.Int).Set(closure.Gas)
 				closure.UseGas(closure.Gas)
 
 				// Create the closure
-				c := NewClosure(closure, contract, contract.initScript, vm.state, gas, closure.Price)
+				c := NewClosure(closure, contract, initCode, vm.state, gas, closure.Price)
 				// Call the closure and set the return value as
 				// main script.
 				contract.script, err = Call(vm, c, nil)
@@ -665,6 +720,11 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 				vm.Printf("CREATE success")
 			}
 			vm.Endl()
+
+			// Debug hook
+			if vm.Dbg != nil {
+				vm.Dbg.SetCode(closure.Script)
+			}
 		case CALL:
 			require(7)
 
@@ -683,10 +743,11 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 
 			if closure.object.Amount.Cmp(value) < 0 {
 				vmlogger.Debugf("Insufficient funds to transfer value. Req %v, has %v", value, closure.object.Amount)
+				closure.ReturnGas(gas, nil, nil)
 
 				stack.Push(ethutil.BigFalse)
 			} else {
-				//snapshot := vm.state.Copy()
+				snapshot := vm.state.Copy()
 
 				stateObject := vm.state.GetOrNewStateObject(addr.Bytes())
 
@@ -702,13 +763,17 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 
 					vmlogger.Debugf("Closure execution failed. %v\n", err)
 
-					//vm.state.Set(snapshot)
-					vm.state.ResetStateObject(stateObject)
+					vm.state.Set(snapshot)
 				} else {
 					stack.Push(ethutil.BigTrue)
 
 					mem.Set(retOffset.Int64(), retSize.Int64(), ret)
 				}
+
+				// Debug hook
+				if vm.Dbg != nil {
+					vm.Dbg.SetCode(closure.Script)
+				}
 			}
 		case RETURN:
 			require(2)
@@ -721,18 +786,12 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 		case SUICIDE:
 			require(1)
 
-			receiver := vm.state.GetAccount(stack.Pop().Bytes())
+			receiver := vm.state.GetOrNewStateObject(stack.Pop().Bytes())
+
 			receiver.AddAmount(closure.object.Amount)
 
 			closure.object.MarkForDeletion()
 
-			/*
-				trie := closure.object.state.trie
-				trie.NewIterator().Each(func(key string, v *ethutil.Value) {
-					trie.Delete(key)
-				})
-			*/
-
 			fallthrough
 		case STOP: // Stop the closure
 			vm.Endl()
@@ -752,6 +811,8 @@ func (vm *Vm) RunClosure(closure *Closure) (ret []byte, err error) {
 		if vm.Dbg != nil {
 			for _, instrNo := range vm.Dbg.BreakPoints() {
 				if pc.Cmp(big.NewInt(instrNo)) == 0 {
+					vm.Stepping = true
+
 					if !vm.Dbg.BreakHook(prevStep, op, mem, stack, closure.Object()) {
 						return nil, nil
 					}
diff --git a/ethcrypto/crypto.go b/ethcrypto/crypto.go
index b4bb881a01..19f8c9e559 100644
--- a/ethcrypto/crypto.go
+++ b/ethcrypto/crypto.go
@@ -2,9 +2,9 @@ package ethcrypto
 
 import (
 	"code.google.com/p/go.crypto/ripemd160"
+	"code.google.com/p/go.crypto/sha3"
 	"crypto/sha256"
 	"github.com/ethereum/eth-go/ethutil"
-	"github.com/obscuren/sha3"
 )
 
 func Sha256Bin(data []byte) []byte {
diff --git a/ethcrypto/mnemonic.go b/ethcrypto/mnemonic.go
index 6134f85f72..7258467929 100644
--- a/ethcrypto/mnemonic.go
+++ b/ethcrypto/mnemonic.go
@@ -3,7 +3,9 @@ package ethcrypto
 import (
 	"fmt"
 	"io/ioutil"
+	"os"
 	"path"
+	"path/filepath"
 	"runtime"
 	"strconv"
 	"strings"
@@ -12,6 +14,14 @@ import (
 func InitWords() []string {
 	_, thisfile, _, _ := runtime.Caller(1)
 	filename := path.Join(path.Dir(thisfile), "mnemonic.words.lst")
+	if _, err := os.Stat(filename); os.IsNotExist(err) {
+		fmt.Printf("reading mnemonic word list file 'mnemonic.words.lst' from source folder failed, looking in current folder.")
+		dir, err := filepath.Abs(filepath.Dir(os.Args[0]))
+		if err != nil {
+			panic(fmt.Errorf("problem getting current folder: ", err))
+		}
+		filename = path.Join(dir, "mnemonic.words.lst")
+	}
 	content, err := ioutil.ReadFile(filename)
 	if err != nil {
 		panic(fmt.Errorf("reading mnemonic word list file 'mnemonic.words.lst' failed: ", err))
diff --git a/ethereum.go b/ethereum.go
index de4e915a12..2806dfd9dd 100644
--- a/ethereum.go
+++ b/ethereum.go
@@ -6,7 +6,6 @@ import (
 	"github.com/ethereum/eth-go/ethchain"
 	"github.com/ethereum/eth-go/ethcrypto"
 	"github.com/ethereum/eth-go/ethlog"
-	"github.com/ethereum/eth-go/ethreact"
 	"github.com/ethereum/eth-go/ethrpc"
 	"github.com/ethereum/eth-go/ethutil"
 	"github.com/ethereum/eth-go/ethwire"
@@ -21,6 +20,8 @@ import (
 	"time"
 )
 
+const seedTextFileUri string = "http://www.ethereum.org/servers.poc3.txt"
+
 var ethlogger = ethlog.NewLogger("SERV")
 
 func eachPeer(peers *list.List, callback func(*Peer, *list.Element)) {
@@ -72,7 +73,7 @@ type Ethereum struct {
 
 	listening bool
 
-	reactor *ethreact.ReactorEngine
+	reactor *ethutil.ReactorEngine
 
 	RpcServer *ethrpc.JsonRpcServer
 
@@ -107,7 +108,7 @@ func New(db ethutil.Database, clientIdentity ethwire.ClientIdentity, keyManager
 		keyManager:     keyManager,
 		clientIdentity: clientIdentity,
 	}
-	ethereum.reactor = ethreact.New()
+	ethereum.reactor = ethutil.NewReactorEngine()
 
 	ethereum.txPool = ethchain.NewTxPool(ethereum)
 	ethereum.blockChain = ethchain.NewBlockChain(ethereum)
@@ -119,7 +120,7 @@ func New(db ethutil.Database, clientIdentity ethwire.ClientIdentity, keyManager
 	return ethereum, nil
 }
 
-func (s *Ethereum) Reactor() *ethreact.ReactorEngine {
+func (s *Ethereum) Reactor() *ethutil.ReactorEngine {
 	return s.reactor
 }
 
@@ -351,7 +352,6 @@ func (s *Ethereum) ReapDeadPeerHandler() {
 
 // Start the ethereum
 func (s *Ethereum) Start(seed bool) {
-	s.reactor.Start()
 	// Bind to addr and port
 	ln, err := net.Listen("tcp", ":"+s.Port)
 	if err != nil {
@@ -418,7 +418,7 @@ func (s *Ethereum) Seed() {
 		s.ProcessPeerList(peers)
 	} else {
 		// Fallback to servers.poc3.txt
-		resp, err := http.Get("http://www.ethereum.org/servers.poc3.txt")
+		resp, err := http.Get(seedTextFileUri)
 		if err != nil {
 			ethlogger.Warnln("Fetching seed failed:", err)
 			return
@@ -463,9 +463,6 @@ func (s *Ethereum) Stop() {
 	s.txPool.Stop()
 	s.stateManager.Stop()
 
-	s.reactor.Flush()
-	s.reactor.Stop()
-
 	ethlogger.Infoln("Server stopped")
 	close(s.shutdownChan)
 }
diff --git a/ethlog/loggers.go b/ethlog/loggers.go
index 4e950cadde..f131861025 100644
--- a/ethlog/loggers.go
+++ b/ethlog/loggers.go
@@ -97,7 +97,6 @@ func Reset() {
 		}
 		<-status
 	}
-	logSystems = nil
 }
 
 // waits until log messages are drained (dispatched to log writers)
@@ -116,6 +115,7 @@ func NewLogger(tag string) *Logger {
 }
 
 func AddLogSystem(logSystem LogSystem) {
+	var mutex = &sync.Mutex{}
 	mutex.Lock()
 	defer mutex.Unlock()
 	if logSystems == nil {
@@ -128,14 +128,16 @@ func AddLogSystem(logSystem LogSystem) {
 }
 
 func (logger *Logger) sendln(level LogLevel, v ...interface{}) {
-	if logSystems != nil {
-		send(newPrintlnLogMessage(level, logger.tag, v...))
+	if logMessages != nil {
+		msg := newPrintlnLogMessage(level, logger.tag, v...)
+		logMessages <- msg
 	}
 }
 
 func (logger *Logger) sendf(level LogLevel, format string, v ...interface{}) {
-	if logSystems != nil {
-		send(newPrintfLogMessage(level, logger.tag, format, v...))
+	if logMessages != nil {
+		msg := newPrintfLogMessage(level, logger.tag, format, v...)
+		logMessages <- msg
 	}
 }
 
diff --git a/ethlog/loggers_test.go b/ethlog/loggers_test.go
index 0e1c12e551..a9b1463e7e 100644
--- a/ethlog/loggers_test.go
+++ b/ethlog/loggers_test.go
@@ -54,8 +54,9 @@ func TestLoggerPrintln(t *testing.T) {
 	Flush()
 	Reset()
 	output := testLogSystem.Output
+	fmt.Println(quote(output))
 	if output != "[TEST] error\n[TEST] warn\n" {
-		t.Error("Expected logger output '[TEST] error\\n[TEST] warn\\n', got ", testLogSystem.Output)
+		t.Error("Expected logger output '[TEST] error\\n[TEST] warn\\n', got ", output)
 	}
 }
 
@@ -71,7 +72,7 @@ func TestLoggerPrintf(t *testing.T) {
 	Reset()
 	output := testLogSystem.Output
 	if output != "[TEST] error to { 2}\n[TEST] warn" {
-		t.Error("Expected logger output '[TEST] error to { 2}\\n[TEST] warn', got ", testLogSystem.Output)
+		t.Error("Expected logger output '[TEST] error to { 2}\\n[TEST] warn', got ", output)
 	}
 }
 
@@ -88,10 +89,10 @@ func TestMultipleLogSystems(t *testing.T) {
 	output0 := testLogSystem0.Output
 	output1 := testLogSystem1.Output
 	if output0 != "[TEST] error\n" {
-		t.Error("Expected logger 0 output '[TEST] error\\n', got ", testLogSystem0.Output)
+		t.Error("Expected logger 0 output '[TEST] error\\n', got ", output0)
 	}
 	if output1 != "[TEST] error\n[TEST] warn\n" {
-		t.Error("Expected logger 1 output '[TEST] error\\n[TEST] warn\\n', got ", testLogSystem1.Output)
+		t.Error("Expected logger 1 output '[TEST] error\\n[TEST] warn\\n', got ", output1)
 	}
 }
 
@@ -104,7 +105,6 @@ func TestFileLogSystem(t *testing.T) {
 	logger.Errorf("error to %s\n", filename)
 	logger.Warnln("warn")
 	Flush()
-	Reset()
 	contents, _ := ioutil.ReadFile(filename)
 	output := string(contents)
 	if output != "[TEST] error to test.log\n[TEST] warn\n" {
@@ -117,7 +117,5 @@ func TestFileLogSystem(t *testing.T) {
 func TestNoLogSystem(t *testing.T) {
 	logger := NewLogger("TEST")
 	logger.Warnln("warn")
-	fmt.Println("1")
 	Flush()
-	Reset()
 }
diff --git a/ethminer/miner.go b/ethminer/miner.go
index 8224c5441b..71d4b2428a 100644
--- a/ethminer/miner.go
+++ b/ethminer/miner.go
@@ -4,7 +4,7 @@ import (
 	"bytes"
 	"github.com/ethereum/eth-go/ethchain"
 	"github.com/ethereum/eth-go/ethlog"
-	"github.com/ethereum/eth-go/ethreact"
+	"github.com/ethereum/eth-go/ethutil"
 	"github.com/ethereum/eth-go/ethwire"
 	"sort"
 )
@@ -15,19 +15,19 @@ type Miner struct {
 	pow         ethchain.PoW
 	ethereum    ethchain.EthManager
 	coinbase    []byte
-	reactChan   chan ethreact.Event
+	reactChan   chan ethutil.React
 	txs         ethchain.Transactions
 	uncles      []*ethchain.Block
 	block       *ethchain.Block
 	powChan     chan []byte
-	powQuitChan chan ethreact.Event
+	powQuitChan chan ethutil.React
 	quitChan    chan bool
 }
 
 func NewDefaultMiner(coinbase []byte, ethereum ethchain.EthManager) Miner {
-	reactChan := make(chan ethreact.Event, 1)   // This is the channel that receives 'updates' when ever a new transaction or block comes in
-	powChan := make(chan []byte, 1)             // This is the channel that receives valid sha hases for a given block
-	powQuitChan := make(chan ethreact.Event, 1) // This is the channel that can exit the miner thread
+	reactChan := make(chan ethutil.React, 1)   // This is the channel that receives 'updates' when ever a new transaction or block comes in
+	powChan := make(chan []byte, 1)            // This is the channel that receives valid sha hases for a given block
+	powQuitChan := make(chan ethutil.React, 1) // This is the channel that can exit the miner thread
 	quitChan := make(chan bool, 1)
 
 	ethereum.Reactor().Subscribe("newBlock", reactChan)
diff --git a/ethreact/README.md b/ethreact/README.md
deleted file mode 100644
index 592b50b96a..0000000000
--- a/ethreact/README.md
+++ /dev/null
@@ -1,40 +0,0 @@
-# ethreact
-
-ethereum event reactor. Component of the ethereum stack.
-various events like state change on an account or new block found are broadcast to subscribers.
-Broadcasting to subscribers is running on its own routine and globally order preserving.
-
-## Clients
-### subscribe
-
-    eventChannel := make(chan ethreact.Event)
-    reactor.Subscribe(event, eventChannel)
-
-The same channel can be subscribed to multiple events but only once for each event. In order to allow order of events to be preserved, broadcast of events is synchronous within the main broadcast loop. Therefore any blocking subscriber channels will be skipped, i.e. missing broadcasting events while they are blocked.
-
-### unsubscribe
-
-    reactor.Unsubscribe(event, eventChannel)
-
-### Processing events
-
-event.Resource is of type interface{}. The actual type of event.Resource depends on event.Name and may need to be cast for processing.
-
-    var event ethreact.Event
-    for {
-        select {
-        case event = <-eventChannel:
-            processTransaction(event.Resource.(Transaction))
-        }
-    }
-
-## Broadcast 
-
-    reactor := ethreact.New()
-    reactor.Start()
-    reactor.Post(name, resource)
-    reactor.Flush() // wait till all broadcast messages are dispatched
-    reactor.Stop() // stop the main broadcast loop immediately (even if there are unbroadcast events left)
-
-
-
diff --git a/ethreact/reactor_test.go b/ethreact/reactor_test.go
deleted file mode 100644
index 801a8abd01..0000000000
--- a/ethreact/reactor_test.go
+++ /dev/null
@@ -1,63 +0,0 @@
-package ethreact
-
-import (
-	"fmt"
-	"testing"
-)
-
-func TestReactorAdd(t *testing.T) {
-	reactor := New()
-	ch := make(chan Event)
-	reactor.Subscribe("test", ch)
-	if reactor.eventHandlers["test"] == nil {
-		t.Error("Expected new eventHandler to be created")
-	}
-	reactor.Unsubscribe("test", ch)
-	if reactor.eventHandlers["test"] != nil {
-		t.Error("Expected eventHandler to be removed")
-	}
-}
-
-func TestReactorEvent(t *testing.T) {
-	var name string
-	reactor := New()
-	// Buffer the channel, so it doesn't block for this test
-	cap := 20
-	ch := make(chan Event, cap)
-	reactor.Subscribe("even", ch)
-	reactor.Subscribe("odd", ch)
-	reactor.Post("even", "disappears") // should not broadcast if engine not started
-	reactor.Start()
-	for i := 0; i < cap; i++ {
-		if i%2 == 0 {
-			name = "even"
-		} else {
-			name = "odd"
-		}
-		reactor.Post(name, i)
-	}
-	reactor.Post("test", cap) // this should not block
-	i := 0
-	reactor.Flush()
-	close(ch)
-	for event := range ch {
-		fmt.Printf("%d: %v", i, event)
-		if i%2 == 0 {
-			name = "even"
-		} else {
-			name = "odd"
-		}
-		if val, ok := event.Resource.(int); ok {
-			if i != val || event.Name != name {
-				t.Error("Expected event %d to be of type %s and resource %d, got ", i, name, i, val)
-			}
-		} else {
-			t.Error("Unable to cast")
-		}
-		i++
-	}
-	if i != cap {
-		t.Error("excpected exactly %d events, got ", i)
-	}
-	reactor.Stop()
-}
diff --git a/ethutil/common.go b/ethutil/common.go
index 6d88a1ed2a..2fd031a20a 100644
--- a/ethutil/common.go
+++ b/ethutil/common.go
@@ -3,8 +3,20 @@ package ethutil
 import (
 	"fmt"
 	"math/big"
+	"runtime"
 )
 
+func IsWindows() bool {
+	return runtime.GOOS == "windows"
+}
+
+func WindonizePath(path string) string {
+	if string(path[0]) == "/" && IsWindows() {
+		path = path[1:]
+	}
+	return path
+}
+
 // The different number of units
 var (
 	Douglas  = BigPow(10, 42)
diff --git a/ethutil/config.go b/ethutil/config.go
index c9b86100b4..2f3d706fe6 100644
--- a/ethutil/config.go
+++ b/ethutil/config.go
@@ -13,6 +13,7 @@ type ConfigManager struct {
 
 	ExecPath string
 	Debug    bool
+	Diff     bool
 	Paranoia bool
 
 	conf *globalconf.GlobalConf
diff --git a/ethutil/reactor.go b/ethutil/reactor.go
new file mode 100644
index 0000000000..7cf1452456
--- /dev/null
+++ b/ethutil/reactor.go
@@ -0,0 +1,87 @@
+package ethutil
+
+import (
+	"sync"
+)
+
+type ReactorEvent struct {
+	mut   sync.Mutex
+	event string
+	chans []chan React
+}
+
+// Post the specified reactor resource on the channels
+// currently subscribed
+func (e *ReactorEvent) Post(react React) {
+	e.mut.Lock()
+	defer e.mut.Unlock()
+
+	for _, ch := range e.chans {
+		go func(ch chan React) {
+			ch <- react
+		}(ch)
+	}
+}
+
+// Add a subscriber to this event
+func (e *ReactorEvent) Add(ch chan React) {
+	e.mut.Lock()
+	defer e.mut.Unlock()
+
+	e.chans = append(e.chans, ch)
+}
+
+// Remove a subscriber
+func (e *ReactorEvent) Remove(ch chan React) {
+	e.mut.Lock()
+	defer e.mut.Unlock()
+
+	for i, c := range e.chans {
+		if c == ch {
+			e.chans = append(e.chans[:i], e.chans[i+1:]...)
+		}
+	}
+}
+
+// Basic reactor resource
+type React struct {
+	Resource interface{}
+	Event    string
+}
+
+// The reactor basic engine. Acts as bridge
+// between the events and the subscribers/posters
+type ReactorEngine struct {
+	patterns map[string]*ReactorEvent
+}
+
+func NewReactorEngine() *ReactorEngine {
+	return &ReactorEngine{patterns: make(map[string]*ReactorEvent)}
+}
+
+// Subscribe a channel to the specified event
+func (reactor *ReactorEngine) Subscribe(event string, ch chan React) {
+	ev := reactor.patterns[event]
+	// Create a new event if one isn't available
+	if ev == nil {
+		ev = &ReactorEvent{event: event}
+		reactor.patterns[event] = ev
+	}
+
+	// Add the channel to reactor event handler
+	ev.Add(ch)
+}
+
+func (reactor *ReactorEngine) Unsubscribe(event string, ch chan React) {
+	ev := reactor.patterns[event]
+	if ev != nil {
+		ev.Remove(ch)
+	}
+}
+
+func (reactor *ReactorEngine) Post(event string, resource interface{}) {
+	ev := reactor.patterns[event]
+	if ev != nil {
+		ev.Post(React{Resource: resource, Event: event})
+	}
+}
diff --git a/ethutil/reactor_test.go b/ethutil/reactor_test.go
new file mode 100644
index 0000000000..48c2f0df35
--- /dev/null
+++ b/ethutil/reactor_test.go
@@ -0,0 +1,30 @@
+package ethutil
+
+import "testing"
+
+func TestReactorAdd(t *testing.T) {
+	engine := NewReactorEngine()
+	ch := make(chan React)
+	engine.Subscribe("test", ch)
+	if len(engine.patterns) != 1 {
+		t.Error("Expected patterns to be 1, got", len(engine.patterns))
+	}
+}
+
+func TestReactorEvent(t *testing.T) {
+	engine := NewReactorEngine()
+
+	// Buffer 1, so it doesn't block for this test
+	ch := make(chan React, 1)
+	engine.Subscribe("test", ch)
+	engine.Post("test", "hello")
+
+	value := <-ch
+	if val, ok := value.Resource.(string); ok {
+		if val != "hello" {
+			t.Error("Expected Resource to be 'hello', got", val)
+		}
+	} else {
+		t.Error("Unable to cast")
+	}
+}
diff --git a/ethutil/script.go b/ethutil/script.go
index f5c53f84c7..b796e7c1eb 100644
--- a/ethutil/script.go
+++ b/ethutil/script.go
@@ -4,7 +4,6 @@ import (
 	"fmt"
 	"github.com/obscuren/mutan"
 	"github.com/obscuren/mutan/backends"
-	"github.com/obscuren/serpent-go"
 	"strings"
 )
 
@@ -15,13 +14,15 @@ func Compile(script string, silent bool) (ret []byte, err error) {
 
 		if len(line) > 1 && line[0:2] == "#!" {
 			switch line {
-			case "#!serpent":
-				byteCode, err := serpent.Compile(script)
-				if err != nil {
-					return nil, err
-				}
+			/*
+				case "#!serpent":
+					byteCode, err := serpent.Compile(script)
+					if err != nil {
+						return nil, err
+					}
 
-				return byteCode, nil
+					return byteCode, nil
+			*/
 			}
 		} else {
 
diff --git a/ethwire/messaging.go b/ethwire/messaging.go
index 5319d07116..f13b723538 100644
--- a/ethwire/messaging.go
+++ b/ethwire/messaging.go
@@ -279,7 +279,7 @@ func ReadMessages(conn net.Conn) (msgs []*Msg, err error) {
 	var totalBytes int
 	for {
 		// Give buffering some time
-		conn.SetReadDeadline(time.Now().Add(50 * time.Millisecond))
+		conn.SetReadDeadline(time.Now().Add(500 * time.Millisecond))
 		// Create a new temporarily buffer
 		b := make([]byte, 1440)
 		// Wait for a message from this peer
diff --git a/peer.go b/peer.go
index a93d22d93a..0a4f08af59 100644
--- a/peer.go
+++ b/peer.go
@@ -21,7 +21,7 @@ const (
 	// The size of the output buffer for writing messages
 	outputBufferSize = 50
 	// Current protocol version
-	ProtocolVersion = 21
+	ProtocolVersion = 23
 	// Interval for ping/pong message
 	pingPongTimer = 2 * time.Second
 )
@@ -252,7 +252,7 @@ func (p *Peer) writeMessage(msg *ethwire.Msg) {
 		}
 	}
 
-	peerlogger.DebugDetailln("<=", msg.Type, msg.Data)
+	peerlogger.DebugDetailf("(%v) <= %v %v\n", p.conn.RemoteAddr(), msg.Type, msg.Data)
 
 	err := ethwire.WriteMessage(p.conn, msg)
 	if err != nil {
@@ -326,7 +326,7 @@ func (p *Peer) HandleInbound() {
 			peerlogger.Debugln(err)
 		}
 		for _, msg := range msgs {
-			peerlogger.DebugDetailln("=>", msg.Type, msg.Data)
+			peerlogger.DebugDetailf("(%v) => %v %v\n", p.conn.RemoteAddr(), msg.Type, msg.Data)
 
 			switch msg.Type {
 			case ethwire.MsgHandshakeTy:
@@ -419,6 +419,16 @@ func (p *Peer) HandleInbound() {
 				if err != nil {
 					// If the parent is unknown try to catch up with this peer
 					if ethchain.IsParentErr(err) {
+						/*
+							b := ethchain.NewBlockFromRlpValue(msg.Data.Get(0))
+
+							peerlogger.Infof("Attempting to catch (%x). Parent known\n", b.Hash())
+							p.catchingUp = false
+
+							p.CatchupWithPeer(b.Hash())
+
+							peerlogger.Infoln(b)
+						*/
 						peerlogger.Infoln("Attempting to catch. Parent known")
 						p.catchingUp = false
 						p.CatchupWithPeer(p.ethereum.BlockChain().CurrentBlock.Hash())
@@ -744,7 +754,7 @@ func (p *Peer) CatchupWithPeer(blockHash []byte) {
 	if !p.catchingUp {
 		// Make sure nobody else is catching up when you want to do this
 		p.catchingUp = true
-		msg := ethwire.NewMessage(ethwire.MsgGetChainTy, []interface{}{blockHash, uint64(50)})
+		msg := ethwire.NewMessage(ethwire.MsgGetChainTy, []interface{}{blockHash, uint64(10)})
 		p.QueueMessage(msg)
 
 		peerlogger.DebugDetailf("Requesting blockchain %x... from peer %s\n", p.ethereum.BlockChain().CurrentBlock.Hash()[:4], p.conn.RemoteAddr())