diff --git a/apps/openmw/CMakeLists.txt b/apps/openmw/CMakeLists.txt
index c31a9d8fd..2342882e0 100644
--- a/apps/openmw/CMakeLists.txt
+++ b/apps/openmw/CMakeLists.txt
@@ -55,7 +55,7 @@ add_openmw_dir (mwclass
     )
 
 add_openmw_dir (mwmechanics
-    mechanicsmanager stat creaturestats magiceffects movement
+    mechanicsmanager stat creaturestats magiceffects movement actors
     )
 
 # Main executable
diff --git a/apps/openmw/engine.cpp b/apps/openmw/engine.cpp
index a88588b9c..97aaf4090 100644
--- a/apps/openmw/engine.cpp
+++ b/apps/openmw/engine.cpp
@@ -160,7 +160,8 @@ bool OMW::Engine::frameRenderingQueued (const Ogre::FrameEvent& evt)
 
         // update actors
         std::vector<std::pair<std::string, Ogre::Vector3> > movement;
-        mEnvironment.mMechanicsManager->update (movement);
+        mEnvironment.mMechanicsManager->update (movement, mEnvironment.mFrameDuration,
+            mEnvironment.mWindowManager->getMode()!=MWGui::GM_Game);
 
         if (mEnvironment.mWindowManager->getMode()==MWGui::GM_Game)
             mEnvironment.mWorld->doPhysics (movement, mEnvironment.mFrameDuration);
@@ -357,7 +358,7 @@ void OMW::Engine::go()
     // to find core.xml here.
 
     //addResourcesDirectory(mResDir);
-   
+
     addResourcesDirectory(mResDir / "mygui");
     addResourcesDirectory(mResDir / "water");
 
diff --git a/apps/openmw/mwmechanics/actors.cpp b/apps/openmw/mwmechanics/actors.cpp
new file mode 100644
index 000000000..e68b99597
--- /dev/null
+++ b/apps/openmw/mwmechanics/actors.cpp
@@ -0,0 +1,77 @@
+
+#include "actors.hpp"
+
+#include <typeinfo>
+
+#include <components/esm/loadnpc.hpp>
+
+#include "../mwworld/class.hpp"
+#include "../mwworld/inventorystore.hpp"
+
+namespace MWMechanics
+{
+    void Actors::updateActor (const MWWorld::Ptr& ptr, float duration)
+    {
+
+    }
+
+    void Actors::updateNpc (const MWWorld::Ptr& ptr, float duration, bool paused)
+    {
+        if (!paused)
+            MWWorld::Class::get (ptr).getInventoryStore (ptr).autoEquip (
+                MWWorld::Class::get (ptr).getNpcStats (ptr));
+    }
+
+    Actors::Actors (MWWorld::Environment& environment) : mEnvironment (environment), mDuration (0) {}
+
+    void Actors::addActor (const MWWorld::Ptr& ptr)
+    {
+        mActors.insert (ptr);
+    }
+
+    void Actors::removeActor (const MWWorld::Ptr& ptr)
+    {
+        mActors.erase (ptr);
+    }
+
+    void Actors::dropActors (const MWWorld::Ptr::CellStore *cellStore)
+    {
+        std::set<MWWorld::Ptr>::iterator iter = mActors.begin();
+
+        while (iter!=mActors.end())
+            if (iter->getCell()==cellStore)
+            {
+                mActors.erase (iter++);
+            }
+            else
+                ++iter;
+    }
+
+    void Actors::update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement, float duration,
+        bool paused)
+    {
+        mDuration += duration;
+
+        if (mDuration>=0.25)
+        {
+            for (std::set<MWWorld::Ptr>::iterator iter (mActors.begin()); iter!=mActors.end(); ++iter)
+            {
+                updateActor (*iter, mDuration);
+
+                if (iter->getTypeName()==typeid (ESM::NPC).name())
+                    updateNpc (*iter, mDuration, paused);
+            }
+
+            mDuration = 0;
+        }
+
+        for (std::set<MWWorld::Ptr>::iterator iter (mActors.begin()); iter!=mActors.end();
+            ++iter)
+        {
+            Ogre::Vector3 vector = MWWorld::Class::get (*iter).getMovementVector (*iter);
+
+            if (vector!=Ogre::Vector3::ZERO)
+                movement.push_back (std::make_pair (iter->getRefData().getHandle(), vector));
+        }
+    }
+}
diff --git a/apps/openmw/mwmechanics/actors.hpp b/apps/openmw/mwmechanics/actors.hpp
new file mode 100644
index 000000000..7ff33b63b
--- /dev/null
+++ b/apps/openmw/mwmechanics/actors.hpp
@@ -0,0 +1,51 @@
+#ifndef GAME_MWMECHANICS_ACTORS_H
+#define GAME_MWMECHANICS_ACTORS_H
+
+#include <set>
+#include <vector>
+#include <string>
+
+#include "../mwworld/ptr.hpp"
+
+namespace Ogre
+{
+    class Vector3;
+}
+
+namespace MWWorld
+{
+    class Environment;
+}
+
+namespace MWMechanics
+{
+    class Actors
+    {
+            MWWorld::Environment& mEnvironment;
+            std::set<MWWorld::Ptr> mActors;
+            float mDuration;
+
+            void updateActor (const MWWorld::Ptr& ptr, float duration);
+
+            void updateNpc (const MWWorld::Ptr& ptr, float duration, bool paused);
+
+        public:
+
+            Actors (MWWorld::Environment& environment);
+
+            void addActor (const MWWorld::Ptr& ptr);
+            ///< Register an actor for stats management
+
+            void removeActor (const MWWorld::Ptr& ptr);
+            ///< Deregister an actor for stats management
+
+            void dropActors (const MWWorld::Ptr::CellStore *cellStore);
+            ///< Deregister all actors in the given cell.
+
+            void update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement,
+                float duration, bool paused);
+            ///< Update actor stats and store desired velocity vectors in \a movement
+    };
+}
+
+#endif
diff --git a/apps/openmw/mwmechanics/mechanicsmanager.cpp b/apps/openmw/mwmechanics/mechanicsmanager.cpp
index 7ed81f785..3c93857ef 100644
--- a/apps/openmw/mwmechanics/mechanicsmanager.cpp
+++ b/apps/openmw/mwmechanics/mechanicsmanager.cpp
@@ -222,14 +222,14 @@ namespace MWMechanics
 
     MechanicsManager::MechanicsManager (MWWorld::Environment& environment)
     : mEnvironment (environment), mUpdatePlayer (true), mClassSelected (false),
-      mRaceSelected (false)
+      mRaceSelected (false), mActors (environment)
     {
         buildPlayer();
     }
 
     void MechanicsManager::addActor (const MWWorld::Ptr& ptr)
     {
-        mActors.insert (ptr);
+        mActors.addActor (ptr);
     }
 
     void MechanicsManager::removeActor (const MWWorld::Ptr& ptr)
@@ -237,7 +237,7 @@ namespace MWMechanics
         if (ptr==mWatched)
             mWatched = MWWorld::Ptr();
 
-        mActors.erase (ptr);
+        mActors.removeActor (ptr);
     }
 
     void MechanicsManager::dropActors (const MWWorld::Ptr::CellStore *cellStore)
@@ -245,16 +245,7 @@ namespace MWMechanics
         if (!mWatched.isEmpty() && mWatched.getCell()==cellStore)
             mWatched = MWWorld::Ptr();
 
-        std::set<MWWorld::Ptr>::iterator iter = mActors.begin();
-
-        while (iter!=mActors.end())
-            if (iter->getCell()==cellStore)
-            {
-                //std::cout << "Erasing an actor";
-                mActors.erase (iter++);
-            }
-            else
-                ++iter;
+        mActors.dropActors (cellStore);
     }
 
     void MechanicsManager::watchActor (const MWWorld::Ptr& ptr)
@@ -262,7 +253,8 @@ namespace MWMechanics
         mWatched = ptr;
     }
 
-    void MechanicsManager::update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement)
+    void MechanicsManager::update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement,
+        float duration, bool paused)
     {
         if (!mWatched.isEmpty())
         {
@@ -345,14 +337,7 @@ namespace MWMechanics
             mEnvironment.mWindowManager->configureSkills (majorSkills, minorSkills);
         }
 
-        for (std::set<MWWorld::Ptr>::iterator iter (mActors.begin()); iter!=mActors.end();
-            ++iter)
-        {
-            Ogre::Vector3 vector = MWWorld::Class::get (*iter).getMovementVector (*iter);
-
-            if (vector!=Ogre::Vector3::ZERO)
-                movement.push_back (std::make_pair (iter->getRefData().getHandle(), vector));
-        }
+        mActors.update (movement, duration, paused);
     }
 
     void MechanicsManager::setPlayerName (const std::string& name)
diff --git a/apps/openmw/mwmechanics/mechanicsmanager.hpp b/apps/openmw/mwmechanics/mechanicsmanager.hpp
index 2e2192638..a7defe178 100644
--- a/apps/openmw/mwmechanics/mechanicsmanager.hpp
+++ b/apps/openmw/mwmechanics/mechanicsmanager.hpp
@@ -1,7 +1,6 @@
 #ifndef GAME_MWMECHANICS_MECHANICSMANAGER_H
 #define GAME_MWMECHANICS_MECHANICSMANAGER_H
 
-#include <set>
 #include <vector>
 #include <string>
 
@@ -9,6 +8,7 @@
 
 #include "creaturestats.hpp"
 #include "npcstats.hpp"
+#include "actors.hpp"
 
 namespace Ogre
 {
@@ -25,13 +25,13 @@ namespace MWMechanics
     class MechanicsManager
     {
             MWWorld::Environment& mEnvironment;
-            std::set<MWWorld::Ptr> mActors;
             MWWorld::Ptr mWatched;
             CreatureStats mWatchedCreature;
             NpcStats mWatchedNpc;
             bool mUpdatePlayer;
             bool mClassSelected;
             bool mRaceSelected;
+            Actors mActors;
 
             void buildPlayer();
             ///< build player according to stored class/race/birthsign information. Will
@@ -60,8 +60,12 @@ namespace MWMechanics
             ///< On each update look for changes in a previously registered actor and update the
             /// GUI accordingly.
 
-            void update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement);
+            void update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement, float duration,
+                bool paused);
             ///< Update actor stats and store desired velocity vectors in \a movement
+            ///
+            /// \param paused In game type does not currently advance (this usually means some GUI
+            /// component is up).
 
             void setPlayerName (const std::string& name);
             ///< Set player name.
diff --git a/apps/openmw/mwworld/inventorystore.cpp b/apps/openmw/mwworld/inventorystore.cpp
index e64c9785f..aedd119c8 100644
--- a/apps/openmw/mwworld/inventorystore.cpp
+++ b/apps/openmw/mwworld/inventorystore.cpp
@@ -6,6 +6,8 @@
 
 #include "class.hpp"
 
+#include <iostream> /// \todo remove after rendering is implemented
+
 void MWWorld::InventoryStore::copySlots (const InventoryStore& store)
 {
     // some const-trickery, required because of a flaw in the handling of MW-references and the
@@ -24,10 +26,15 @@ void MWWorld::InventoryStore::copySlots (const InventoryStore& store)
     }
 }
 
-MWWorld::InventoryStore::InventoryStore()
+void MWWorld::InventoryStore::initSlots (TSlots& slots)
 {
     for (int i=0; i<Slots; ++i)
-        mSlots.push_back (end());
+        slots.push_back (end());
+}
+
+MWWorld::InventoryStore::InventoryStore()
+{
+    initSlots (mSlots);
 }
 
 MWWorld::InventoryStore::InventoryStore (const InventoryStore& store)
@@ -86,3 +93,50 @@ MWWorld::ContainerStoreIterator MWWorld::InventoryStore::getSlot (int slot)
 
     return mSlots[slot];
 }
+
+void MWWorld::InventoryStore::autoEquip (const MWMechanics::NpcStats& stats)
+{
+    TSlots slots;
+    initSlots (slots);
+
+    for (ContainerStoreIterator iter (begin()); iter!=end(); ++iter)
+    {
+        std::pair<std::vector<int>, bool> itemsSlots =
+            MWWorld::Class::get (*iter).getEquipmentSlots (*iter);
+
+        for (std::vector<int>::const_iterator iter2 (itemsSlots.first.begin());
+            iter2!=itemsSlots.first.end(); ++iter2)
+        {
+            /// \todo comapre item with item in slot
+            if (slots.at (*iter2)==end())
+            {
+                /// \todo unstack, if reqquired (itemsSlots.second)
+
+                slots[*iter2] = iter;
+                break;
+            }
+        }
+    }
+
+    bool changed = false;
+
+    for (std::size_t i=0; i<slots.size(); ++i)
+        if (slots[i]!=mSlots[i])
+        {
+            changed = true;
+        }
+
+    if (changed)
+    {
+        mSlots.swap (slots);
+        flagAsModified();
+
+        /// \todo remove the following line after rendering is implemented
+        for (std::size_t i=0; i<mSlots.size(); ++i)
+            if (mSlots[i]!=end())
+            {
+                std::cout<<"NPC is equipping " << MWWorld::Class::get (*mSlots[i]).getName (*mSlots[i])
+                    << " in slot " << i << std::endl;
+            }
+    }
+}
diff --git a/apps/openmw/mwworld/inventorystore.hpp b/apps/openmw/mwworld/inventorystore.hpp
index c41f9e8e3..5eeaf570d 100644
--- a/apps/openmw/mwworld/inventorystore.hpp
+++ b/apps/openmw/mwworld/inventorystore.hpp
@@ -3,6 +3,11 @@
 
 #include "containerstore.hpp"
 
+namespace MWMechanics
+{
+    struct NpcStats;
+}
+
 namespace MWWorld
 {
     ///< \brief Variant of the ContainerStore for NPCs
@@ -36,10 +41,14 @@ namespace MWWorld
 
         private:
 
-            mutable std::vector<ContainerStoreIterator> mSlots;
+            typedef std::vector<ContainerStoreIterator> TSlots;
+
+            mutable TSlots mSlots;
 
             void copySlots (const InventoryStore& store);
 
+            void initSlots (TSlots& slots);
+
         public:
 
             InventoryStore();
@@ -52,6 +61,9 @@ namespace MWWorld
             ///< \note \a iteartor can be an end-iterator
 
             ContainerStoreIterator getSlot (int slot);
+
+            void autoEquip (const MWMechanics::NpcStats& stats);
+            ///< Auto equip items according to stats and item value.
     };
 }
 
diff --git a/apps/openmw/mwworld/ptr.hpp b/apps/openmw/mwworld/ptr.hpp
index c31c53122..d6e485f41 100644
--- a/apps/openmw/mwworld/ptr.hpp
+++ b/apps/openmw/mwworld/ptr.hpp
@@ -39,7 +39,7 @@ namespace MWWorld
                 return mPtr.empty();
             }
 
-            const std::type_info& getType()
+            const std::type_info& getType() const
             {
                 assert (!mPtr.empty());
                 return mPtr.type();