diff --git a/COMPILE-linux.txt b/COMPILE-linux.txt
index 0dba3bf66..56dad8fa1 100644
--- a/COMPILE-linux.txt
+++ b/COMPILE-linux.txt
@@ -37,11 +37,11 @@ Dependencies:
 
 Dependencies needed to build OpenMW:
 
-OGRE 1.4.5         (3d engine)
+OGRE 1.6.2         (3d engine)
 OIS-1.0.0          (input system)
-MyGUI              (GUI system for OGRE)
-Bullet 2.72        (collision and physics library)
-Monster 0.11       (scripting engine, included)
+MyGUI 2.2.2        (GUI system for OGRE)
+Bullet 2.74        (collision and physics library)
+Monster 0.12       (scripting engine, included)
 OpenAL             (3d sound system)
 libavcodec,
   libavformat      (For MP3 playback)
@@ -116,7 +116,7 @@ the libbulletdynamics.a etc if necessary.)
 
 Example:
 cd openmw/bullet
-ln -s ~/software/bullet-2.72/src/BulletCollision/libbulletcollision.a .
+ln -s ~/software/bullet-2.74/src/BulletCollision/libbulletcollision.a .
 
 Next, create a link to the "src" directory in openmw/include/bullet/ .
 
@@ -124,7 +124,7 @@ Example:
 cd openmw
 mkdir -p include
 cd include
-ln -s ~/software/bullet-2.72/src bullet
+ln -s ~/software/bullet-2.74/src bullet
 
 
 Setting up MyGUI
diff --git a/Makefile b/Makefile
index 5c9e6d988..a680c0f59 100644
--- a/Makefile
+++ b/Makefile
@@ -1,9 +1,8 @@
 # Designed for GNU Make
 
 # Compiler settings
-CXXFLAGS?= -g
+CXXFLAGS?= -g -Iutil/
 DMD=gdmd -version=Posix
-#DMD=dmd -version=Posix
 
 # Some extra flags for niftool and bsatool
 NIFFLAGS=-debug=warnstd -debug=check -debug=statecheck -debug=strict -debug=verbose
diff --git a/bsatool.d b/bsatool.d
index 3769d3f0a..6f25b2fc3 100644
--- a/bsatool.d
+++ b/bsatool.d
@@ -87,7 +87,7 @@ int main(char[][] args)
   int help(char[] msg)
     {
       writefln("%s", msg);
-      writefln("Format: bsatool archive.bsa [-x filename] [-l] [-n]");
+      writefln("Format: bsatool archive.bsa [-x filename] [-l] [-n] [-xa]");
       writefln("  -x filename     extract file");
       writefln("  -xa             extract everything");
       writefln("  -l              list all files");
diff --git a/bullet/cpp_bullet.cpp b/bullet/cpp_bullet.cpp
index e347049b4..8192f7066 100644
--- a/bullet/cpp_bullet.cpp
+++ b/bullet/cpp_bullet.cpp
@@ -25,6 +25,8 @@
 
 #include <iostream>
 
+#include "dbg.h"
+
 using namespace std;
 
 class CustomOverlappingPairCallback;
@@ -406,7 +408,7 @@ extern "C" void bullet_insertStatic(btConcaveShape *shape,
   // Are we scaled?
   if(scale != 1.0)
     {
-      cout << "Scaling shape " << shape << " by " << scale << endl;
+      //cout << "Scaling shape " << shape << " by " << scale << endl;
 
       // Not quite sure how to handle local scaling yet. Our initial
       // attempt was to create a wrapper that showed a scale mesh to
@@ -454,6 +456,7 @@ extern "C" void bullet_insertStatic(btConcaveShape *shape,
 // Move the physics simulation 'delta' seconds forward in time
 extern "C" void bullet_timeStep(float delta)
 {
+  TRACE("bullet_timeStep");
   // TODO: We might experiment with the number of time steps. Remember
   // that the function also returns the number of steps performed.
   g_dynamicsWorld->stepSimulation(delta,2);
diff --git a/core/config.d b/core/config.d
index 989beda85..7dd27b5fd 100644
--- a/core/config.d
+++ b/core/config.d
@@ -281,10 +281,7 @@ struct ConfigManager
       {
         char[] s = ini.getString("Game Files", format("GameFile[%d]",i), null);
         if(s != null && srch.has(s))
-          {
-            writefln("Adding game file %s", s);
-            gameFiles ~= esmDir ~ s;
-          }
+          gameFiles ~= esmDir ~ s;
       }
     delete srch;
 
diff --git a/input/events.d b/input/events.d
index 856026aa8..15702f4c4 100644
--- a/input/events.d
+++ b/input/events.d
@@ -36,6 +36,7 @@ import scene.player;
 import bullet.bindings;
 
 import monster.monster;
+import monster.vm.dbg;
 
 import ogre.bindings;
 
@@ -242,6 +243,9 @@ extern(C) int d_frameStarted(float time, int guiMode)
 {
   if(doExit) return 0;
 
+  dbg.trace("d_frameStarted");
+  scope(exit) dbg.untrace();
+
   // Run the Monster scheduler
   vm.frame(time);
 
diff --git a/monster/options.d b/monster/options.d
index 5f18932d5..f6d1485ab 100644
--- a/monster/options.d
+++ b/monster/options.d
@@ -37,8 +37,8 @@ module monster.options;
   the language, let us know!
 */
 
-const:
 static:
+const:
 
 
 /*********************************************************
@@ -97,7 +97,8 @@ int maxFStack = 100;
 // can run at once. Enabling this will prevent infinite loops.
 bool enableExecLimit = true;
 
-// Maximum number of instructions to allow in once call to execute() (if 
+// Maximum number of instructions to allow in each call to execute()
+// (if enableExecLimit is true)
 long execLimit = 10000000;
 
 
@@ -109,17 +110,18 @@ long execLimit = 10000000;
 
  *********************************************************/
 
-// Enable tracing of external functions on the function stack. If
-// true, you may use vm.trace() and vm.untrace() to add your own
-// functions to the internal Monster function stack for debug purposes
-// (the functions will show up in debug output.) If false, these
-// functions will be empty and most likely optimized away completely
-// by the D compiler (in release builds).
-bool enableTrace = true;
-
-
+// If true, set the log output to standard out. If false, logging is
+// disabled by default and must be activated (through monster.vm.dbg)
+// at runtime.
+bool defaultLogToStdout = false;
 
+// If true, all function stack operations (pushes and pops) are logged
+// with dbg.log(), and all logged messages are indented according to
+// the current fstack level.
+bool logFStack = true;
 
+// If true, log when threads are put into the background/forground.
+bool logThreads = true;
 
 /*********************************************************
 
diff --git a/monster/options.openmw b/monster/options.openmw
index 5f18932d5..6098c4a4f 100644
--- a/monster/options.openmw
+++ b/monster/options.openmw
@@ -37,8 +37,8 @@ module monster.options;
   the language, let us know!
 */
 
-const:
 static:
+const:
 
 
 /*********************************************************
@@ -97,7 +97,8 @@ int maxFStack = 100;
 // can run at once. Enabling this will prevent infinite loops.
 bool enableExecLimit = true;
 
-// Maximum number of instructions to allow in once call to execute() (if 
+// Maximum number of instructions to allow in each call to execute()
+// (if enableExecLimit is true)
 long execLimit = 10000000;
 
 
@@ -109,17 +110,14 @@ long execLimit = 10000000;
 
  *********************************************************/
 
-// Enable tracing of external functions on the function stack. If
-// true, you may use vm.trace() and vm.untrace() to add your own
-// functions to the internal Monster function stack for debug purposes
-// (the functions will show up in debug output.) If false, these
-// functions will be empty and most likely optimized away completely
-// by the D compiler (in release builds).
-bool enableTrace = true;
-
-
-
+// If true, set the log output to standard out. If false, logging is
+// disabled by default and must be activated (through monster.vm.dbg)
+// at runtime.
+bool defaultLogToStdout = false;
 
+// If true, all function stack operations (pushes and pops) are logged
+// with dbg.log().
+bool logFStack = true;
 
 /*********************************************************
 
diff --git a/monster/update.sh b/monster/update.sh
index 0fb5a7d32..536863b55 100755
--- a/monster/update.sh
+++ b/monster/update.sh
@@ -10,4 +10,6 @@ done
 
 svn st
 
-diff options.openmw options.d
+diff options.openmw options.d || $EDITOR options.d
+mv options.openmw options.openmw_last
+cp options.d options.openmw
diff --git a/monster/vm/dbg.d b/monster/vm/dbg.d
new file mode 100644
index 000000000..6868a1718
--- /dev/null
+++ b/monster/vm/dbg.d
@@ -0,0 +1,155 @@
+/*
+  Monster - an advanced game scripting language
+  Copyright (C) 2007-2009  Nicolay Korslund
+  Email: <korslund@gmail.com>
+  WWW: http://monster.snaptoad.com/
+
+  This file (dbg.d) is part of the Monster script language package.
+
+  Monster is distributed as free software: you can redistribute it
+  and/or modify it under the terms of the GNU General Public License
+  version 3, as published by the Free Software Foundation.
+
+  This program is distributed in the hope that it will be useful, but
+  WITHOUT ANY WARRANTY; without even the implied warranty of
+  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+  General Public License for more details.
+
+  You should have received a copy of the GNU General Public License
+  version 3 along with this program. If not, see
+  http://www.gnu.org/licenses/ .
+
+ */
+
+module monster.vm.dbg;
+
+import monster.vm.thread;
+import std.stream;
+import std.string;
+import std.cstream;
+import monster.vm.fstack;
+import monster.options;
+
+/*
+  This file is used for runtime debugging, stack tracing, etc.
+ */
+
+/*
+  Create a trace for your function that automatically pops itself of
+  the fstack when it goes out of scope. Usage:
+
+      auto scope _t = new MTrace("funcName");
+
+  This is one of the few places where C++ is actually easier to use...
+
+  An alternative way to do the same thing:
+
+      dbg.trace("funcName");
+      scope(exit) dbg.untrace();
+*/
+
+scope class MTrace
+{
+  this(char[] str) { dbg.trace(str); }
+  ~this() { dbg.untrace(); }
+}
+
+Dbg dbg;
+
+struct Dbg
+{
+  Stream dbgOut = null;
+
+  // Add indentation for each function stack level (only works if
+  // logFStack is true in options.d)
+  char[] logLevelString = "| ";
+
+  // Called at startup
+  void init()
+  {
+    static if(defaultLogToStdout)
+      dbgOut = dout;
+  }
+
+  void log(char[] msg)
+  {
+    if(dbgOut !is null)
+      {
+        int logLevel = getFStackLevel();
+        int extLevel = getExtLevel();
+        int trdIndex = getThreadIndex();
+
+        char[] str = format("(trd=%s,ext=%s,lev=%s)",
+                            trdIndex,
+                            extLevel,
+                            logLevel);
+        str = format("%-24s", str);
+        dbgOut.writeString(str);
+
+        // If we're logging function stack activity, put in some fancy
+        // indentation as well.
+        static if(logFStack)
+          {
+            for(int i;i<logLevel+extLevel;i++)
+              dbgOut.writeString(logLevelString);
+          }
+
+        dbgOut.writeLine(msg);
+      }
+  }
+
+  // Stack tracing functions. These might be used internally in the
+  // engine, so they should not be disabled.
+
+  // Add an external function to the stack
+  void trace(char[] name)
+  {
+    getFStack().pushExt(name);
+  }
+
+  // Pop the last function pushed by trace()
+  void untrace()
+  {
+    auto fs = getFStack();
+    assert(fs.cur !is null && fs.cur.isExternal,
+           "vm.untrace() used on a non-external function stack entry");
+    fs.pop();
+  }
+
+  // Return the current function stack printout
+  char[] getTrace()
+  { return getFStack().toString(); }
+
+  private:
+
+  int getExtLevel()
+  {
+    return externals.list.length;
+  }
+
+  int getFStackLevel()
+  {
+    if(cthread !is null)
+      return cthread.fstack.list.length;
+    return 0;
+  }
+
+  int getThreadIndex()
+  {
+    if(cthread !is null)
+      return cthread.getIndex();
+    else return 0;
+  }
+
+  // Get the active function stack, or the externals stack if no
+  // thread is active.
+  FunctionStack *getFStack()
+  {
+    if(cthread !is null)
+      {
+        assert(!cthread.fstack.isEmpty);
+        return &cthread.fstack;
+      }
+    return &externals;
+  }
+}
diff --git a/monster/vm/fstack.d b/monster/vm/fstack.d
index 814890b73..4292897ff 100644
--- a/monster/vm/fstack.d
+++ b/monster/vm/fstack.d
@@ -29,6 +29,7 @@ import monster.vm.mclass;
 import monster.vm.stack;
 import monster.vm.error;
 import monster.vm.thread;
+import monster.vm.dbg;
 import monster.compiler.states;
 import monster.compiler.functions;
 import monster.compiler.linespec;
@@ -123,7 +124,7 @@ struct StackPoint
   char[] toString()
   {
     if(isExternal)
-      return "external function " ~ extName;
+      return "external " ~ extName;
 
     assert(func !is null);
 
@@ -241,19 +242,12 @@ struct FunctionStack
   // Set the stack point up as a function. Allows obj to be null.
   void push(Function *func, MonsterObject *obj)
   {
-    //assert(cthread !is null && this is &cthread.fstack);
-
     push(obj);
 
     assert(func !is null);
     cur.ftype = SPType.Function;
     cur.func = func;
 
-    /*
-    writefln("Pushing ", func.name);
-    writefln(toString, "\n");
-    */
-
     assert(func.owner !is null);
     assert(obj is null || func.owner.parentOf(obj.cls));
 
@@ -264,6 +258,11 @@ struct FunctionStack
       natives++;
 
     assert(!func.isIdle, "don't use fstack.push() on idle functions");
+
+    static if(logFStack)
+      {
+        dbg.log("+++ " ~ cur.toString());
+      }
   }
 
   // Set the stack point up as a state
@@ -273,8 +272,6 @@ struct FunctionStack
     assert(isEmpty,
            "state code can only run at the bottom of the function stack");
 
-    //writefln("Pushing state ", st.name);
-
     push(obj);
     cur.ftype = SPType.State;
     cur.state = st;
@@ -285,6 +282,11 @@ struct FunctionStack
 
     // Set up the byte code
     cur.code.setData(st.bcode);
+
+    static if(logFStack)
+      {
+        dbg.log("+++ " ~ cur.toString());
+      }
   }
 
   // Push an external (non-scripted) function on the function
@@ -295,6 +297,11 @@ struct FunctionStack
     natives++;
     cur.ftype = SPType.External;
     cur.extName = name;
+
+    static if(logFStack)
+      {
+        dbg.log("+++ " ~ cur.toString());
+      }
   }
 
   void pushIdle(Function *func, MonsterObject *obj)
@@ -304,11 +311,14 @@ struct FunctionStack
     cur.func = func;
     cur.ftype = SPType.Idle;
 
-    //writefln("Pushing idle ", func.name);
-
     assert(func.owner !is null);
     assert(obj is null || func.owner.parentOf(obj.cls));
     assert(func.isIdle, func.name.str ~ "() is not an idle function");
+
+    static if(logFStack)
+      {
+        dbg.log("+++ " ~ cur.toString());
+      }
   }
 
   // Pops one entry of the stack. Checks that the stack level has been
@@ -324,11 +334,10 @@ struct FunctionStack
       natives--;
     assert(natives >= 0);
 
-    /*
-    if(cur.isFunc) writefln("popping function ", cur.func.name);
-    else if(cur.isState) writefln("popping state ", cur.state.name);
-    writefln(toString, "\n");
-    */
+    static if(logFStack)
+      {
+        dbg.log(" -- " ~ cur.toString());
+      }
 
     // Remove the topmost node from the list, and set cur.
     assert(cur == list.getHead());
@@ -338,6 +347,11 @@ struct FunctionStack
     restoreFrame();
 
     assert(list.length != 0 || cur is null);
+
+    static if(logFStack)
+      {
+        dbg.log("");
+      }
   }
 
   // Get a stack trace (pretty basic at the moment)
diff --git a/monster/vm/init.d b/monster/vm/init.d
index 8ef57ea07..e3e960908 100644
--- a/monster/vm/init.d
+++ b/monster/vm/init.d
@@ -32,6 +32,7 @@ import monster.vm.thread;
 import monster.vm.stack;
 import monster.vm.arrays;
 import monster.vm.vm;
+import monster.vm.dbg;
 
 import monster.modules.all;
 import monster.options;
@@ -121,6 +122,9 @@ void doMonsterInit()
 
   // Next, initialize the Monster library
 
+  // Initialize the debugger structure
+  dbg.init();
+
   // Initialize compiler constructs
   initTokenizer();
   initProperties();
diff --git a/monster/vm/mclass.d b/monster/vm/mclass.d
index 9d93f5d8f..93374be58 100644
--- a/monster/vm/mclass.d
+++ b/monster/vm/mclass.d
@@ -455,7 +455,8 @@ final class MonsterClass
 
       // Needed to make sure execute() exits when the constructor is
       // done.
-      vm.pushExt("callConst");
+      if(cthread !is null)
+        cthread.fstack.pushExt("callConst");
 
       // Call constructors
       foreach(c; tree)
@@ -473,7 +474,8 @@ final class MonsterClass
             c.scptConst.fn.call(obj);
         }
 
-      vm.popExt();
+      if(cthread !is null)
+        cthread.fstack.pop();
     }
 
   // Get the whole allocated buffer belonging to this object
diff --git a/monster/vm/thread.d b/monster/vm/thread.d
index 6d72a0fb7..e0235ae02 100644
--- a/monster/vm/thread.d
+++ b/monster/vm/thread.d
@@ -42,6 +42,7 @@ import monster.vm.mclass;
 import monster.vm.mobject;
 import monster.vm.codestream;
 import monster.vm.stack;
+import monster.vm.dbg;
 import monster.vm.idlefunction;
 import monster.vm.arrays;
 import monster.vm.iterators;
@@ -139,6 +140,11 @@ struct Thread
     return cn;
   }
 
+  int getIndex()
+  {
+    return NodeList.getIndex(this)+1;
+  }
+
   // Schedule the function to run the next frame. Can only be used on
   // paused threads.
   void restart()
@@ -366,6 +372,10 @@ struct Thread
     // Clear out our stack values
     stack.reset();
 
+    static if(logThreads)
+      dbg.log(format("------ deactivate thread=%s (stack=%s) ------",
+                     getIndex, sstack.length));
+
     assert(!isRunning);
   }
 
@@ -383,6 +393,10 @@ struct Thread
            stack.getPos() == 0,
            "only empty transient threads kan restore into a non-empty stack");
 
+    static if(logThreads)
+      dbg.log(format("------ activate thread=%s (stack=%s) ------",
+                     getIndex, sstack.length));
+
     if(sstack.length)
       {
         assert(stack.getPos() == 0,
@@ -390,6 +404,8 @@ struct Thread
         assert(!isTransient,
                "cannot restore a transent thread with stack");
 
+
+
         // Push the values back, and free the buffer
         stack.pushInts(sstack);
         Buffers.free(sstack);
diff --git a/monster/vm/vm.d b/monster/vm/vm.d
index c06fd53f1..92b453af0 100644
--- a/monster/vm/vm.d
+++ b/monster/vm/vm.d
@@ -28,7 +28,6 @@ import monster.vm.thread;
 import monster.vm.mclass;
 import monster.vm.mobject;
 import monster.vm.init;
-import monster.vm.fstack;
 
 import monster.compiler.tokenizer;
 import monster.compiler.linespec;
@@ -135,63 +134,6 @@ struct VM
     return load(ms, name);
   }
 
-  static if(enableTrace)
-  {
-    // Push the given string onto the function stack as an external
-    // function.
-    void tracef(...)
-      {
-        char[] s;
-
-        void putc(dchar c)
-          {
-            std.utf.encode(s, c);
-          }
-
-        std.format.doFormat(&putc, _arguments, _argptr);
-        trace(s);
-      }
-
-    void trace(char[] name) { pushExt(name); }
-    void untrace() { popExt(); }
-  }
-  else
-  {
-    void tracef(...) {}
-    void trace(char[]) {}
-    void untrace() {}
-  }
-
-  void pushExt(char[] name)
-  {
-    getFStack().pushExt(name);
-  }
-
-  // Pop the last function pushed by pushExt()
-  void popExt()
-  {
-    auto fs = getFStack();
-    assert(fs.cur !is null && fs.cur.isExternal,
-           "vm.untrace() used on a non-external function stack entry");
-    fs.pop();
-  }
-
-  // Get the active function stack, or the externals stack if no
-  // thread is active.
-  FunctionStack *getFStack()
-  {
-    if(cthread !is null)
-      {
-        assert(!cthread.fstack.isEmpty);
-        return &cthread.fstack;
-      }
-    return &externals;
-  }
-
-  // Return the current function stack printout
-  char[] getTrace()
-  { return getFStack().toString(); }
-
   void addPath(char[] path)
   {
     init();
diff --git a/mscripts/gmst.mn b/mscripts/gmst.mn
index 5a5f0defe..027262641 100644
--- a/mscripts/gmst.mn
+++ b/mscripts/gmst.mn
@@ -2086,19 +2086,3 @@ char[] sMagicCreature02ID;
 char[] sMagicCreature03ID;
 char[] sMagicCreature04ID;
 char[] sMagicCreature05ID;
-
-test()
-{
-  // Print out some random variables. If you want these not to get
-  // lost in a sea of output from OGRE, run openmw with the -n switch
-  // to disable rendering.
-  print();
-  print("Some random GMST variables:");
-  print("sThief:", sThief);
-  print("iAlchemyMod:", iAlchemyMod);
-  print("sBribe_100_Gold:", sBribe_100_Gold);
-  print("fMaxWalkSpeed:", fMaxWalkSpeed);
-  print("fWereWolfMagicka:", fWereWolfMagicka);
-  print("sEffectSummonFabricant:", sEffectSummonFabricant);
-  print();
-}
diff --git a/mscripts/setup.d b/mscripts/setup.d
index 13bcfb883..5ac07bb82 100644
--- a/mscripts/setup.d
+++ b/mscripts/setup.d
@@ -47,9 +47,6 @@ void initMonsterScripts()
 
   // Set up the GUI Monster module
   setupGUIScripts();
-
-  // Run the test script
-  vm.run("test.mn");
 }
 
 // Run the GUI scripts. These should be run only after the
@@ -62,3 +59,11 @@ void runGUIScripts()
   // Run the fps ticker
   vm.run("fpsticker.mn");
 }
+
+// This should probably not be here:
+import monster.vm.dbg;
+import std.string;
+
+extern(C):
+void dbg_trace(char*str) { dbg.trace(toString(str)); }
+void dbg_untrace() { dbg.untrace(); }
diff --git a/mscripts/test.mn b/mscripts/test.mn
deleted file mode 100644
index 4b740fc43..000000000
--- a/mscripts/test.mn
+++ /dev/null
@@ -1,10 +0,0 @@
-// A short example script
-
-sleep(6);
-
-while(true)
-{
-  print("Howdy from the world of Monster scripts!");
-  print("This script is located in mscripts/test.mn. Check it out!");
-  sleep(60);
-}
diff --git a/nif/property.d b/nif/property.d
index adbf1d4eb..9e605b619 100644
--- a/nif/property.d
+++ b/nif/property.d
@@ -26,6 +26,7 @@ import nif.record;
 
 abstract class Property : Named
 {
+  // The meaning of these depends on the actual property type.
   ushort flags;
 
  override:
@@ -105,7 +106,7 @@ class NiTexturingProperty : Property
   }
 
   /*
-   * This just in: The textures in this list is as follows:
+   * The textures in this list is as follows:
    *
    * 0 - Base texture
    * 1 - Dark texture
@@ -236,6 +237,46 @@ class NiShadeProperty : Property
 
 class NiAlphaProperty : Property
 {
+  /*
+    In NiAlphaProperty, the flags have the following meaning.
+
+    Bit 0 : alpha blending enable
+    Bits 1-4 : source blend mode
+    Bits 5-8 : destination blend mode
+    Bit 9 : alpha test enable
+    Bit 10-12 : alpha test mode
+    Bit 13 : no sorter flag ( disables triangle sorting )
+
+    blend modes (glBlendFunc):
+    0000 GL_ONE
+    0001 GL_ZERO
+    0010 GL_SRC_COLOR
+    0011 GL_ONE_MINUS_SRC_COLOR
+    0100 GL_DST_COLOR
+    0101 GL_ONE_MINUS_DST_COLOR
+    0110 GL_SRC_ALPHA
+    0111 GL_ONE_MINUS_SRC_ALPHA
+    1000 GL_DST_ALPHA
+    1001 GL_ONE_MINUS_DST_ALPHA
+    1010 GL_SRC_ALPHA_SATURATE
+
+    test modes (glAlphaFunc):
+    000 GL_ALWAYS
+    001 GL_LESS
+    010 GL_EQUAL
+    011 GL_LEQUAL
+    100 GL_GREATER
+    101 GL_NOTEQUAL
+    110 GL_GEQUAL
+    111 GL_NEVER
+
+    Taken from:
+    http://niftools.sourceforge.net/doc/nif/NiAlphaProperty.html
+  */
+
+  // Tested against when certain flags are set (see above.)
+  ubyte threshold;
+
   override:
   void read()
     {
diff --git a/ogre/bindings.d b/ogre/bindings.d
index 49121b2c0..fab1fb25a 100644
--- a/ogre/bindings.d
+++ b/ogre/bindings.d
@@ -50,8 +50,8 @@ extern(C):
 // Do engine configuration. Returns 0 if we should continue, 1 if
 // not.
 int ogre_configure(int showConfig, // Do we show the config dialogue?
-                   char *plugincfg // Name of 'plugin.cfg' file
-                   );
+                   char *plugincfg,// Name of 'plugin.cfg' file
+                   int debutOut);  // Enable or disable debug output
 
 // Sets up the window
 void ogre_initWindow();
@@ -116,14 +116,16 @@ NodePtr ogre_attachLight(char* name, NodePtr parent,
                          float radius);
 
 // Create the specified material
-void ogre_createMaterial(char *name,	// Name to give resource
-                         float *ambient, // Ambient RBG value
+void ogre_createMaterial(char *name,	  // Name to give resource
+                         float *ambient,  // Ambient RBG value
                          float *diffuse,
                          float *specular,
-                         float *emissive,// Self illumination
+                         float *emissive, // Self illumination
                          float glossiness,// Same as shininess?
-                         float alpha,    // Use this in all alpha values?
-                         char *texture); // Texture name
+                         float alpha,     // Reflection alpha?
+                         char *texture,   // Texture name
+                         int alphaFlags,  // Alpha settings (see
+                         ubyte alphaTest);// NiAlphaProperty in nif/)
 
 // Creates a mesh and gives it a bounding box. Also creates an entity
 // and attached it to the given SceneNode 'owner'.
@@ -165,7 +167,7 @@ void ogre_moveCameraRel(float x, float y, float z);
 
 // GUI functions. Under development.
 typedef void* WidgetPtr;
-void gui_setupGUI();
+void gui_setupGUI(int debugOut);
 void gui_toggleGui();
 void gui_setCellName(char *str);
 
diff --git a/ogre/cpp_interface.cpp b/ogre/cpp_interface.cpp
index f173eb724..04ba18d68 100644
--- a/ogre/cpp_interface.cpp
+++ b/ogre/cpp_interface.cpp
@@ -43,10 +43,21 @@ extern "C" void ogre_cleanup()
 
 extern "C" int32_t ogre_configure(
                    int32_t showConfig, // Do we show the config dialogue?
-                   char *plugincfg     // Name of 'plugin.cfg' file
-                   )
+                   char *plugincfg,    // Name of 'plugin.cfg' file
+                   int32_t debugOut)   // Enable or disable logging
 {
-  mRoot = new Root(plugincfg);
+  // Set up logging first
+  new LogManager;
+  Log *log = LogManager::getSingleton().createLog("default");
+
+  if(debugOut)
+    // Full log detail
+    log->setLogDetail(LL_BOREME);
+  else
+    // Disable logging
+    log->setDebugOutputEnabled(false);
+
+  mRoot = new Root(plugincfg, "ogre.cfg", "");
 
   // Add the BSA archive manager before reading the config file.
   ArchiveManager::getSingleton().addArchiveFactory( &mBSAFactory );
@@ -95,7 +106,7 @@ extern "C" int32_t ogre_configure(
 // Initialize window. This will create and show the actual window.
 extern "C" void ogre_initWindow()
 {
-  std::cout << "ogre_initWindow()\n";
+  TRACE("ogre_initWindow");
 
   // Initialize OGRE.
   mWindow = mRoot->initialise(true, "OpenMW", "");
@@ -155,8 +166,6 @@ extern "C" void ogre_initWindow()
   // Register the input listener
   mKeyboard -> setEventCallback( &mInput );
   mMouse    -> setEventCallback( &mInput );
-
-  std::cout << "ogre_initWindow finished\n";
 }
 
 // Make a scene
@@ -619,7 +628,10 @@ extern "C" void ogre_createMaterial(char *name,	    // Name to give
 				   float alpha,     // Use this in all
 						    // alpha values?
 
-				   char* texture)   // Texture
+				   char* texture,   // Texture
+
+                                   int32_t alphaFlags,
+                                   uint8_t alphaTest) // Alpha settings
 {
       MaterialPtr material = MaterialManager::getSingleton().create(
         name,
@@ -630,7 +642,30 @@ extern "C" void ogre_createMaterial(char *name,	    // Name to give
       // directory), it will automatically be loaded when needed. If
       // not, we should already have inserted a manual loader for the texture.
       if(texture)
-	material->getTechnique(0)->getPass(0)->createTextureUnitState(texture);
+        {
+          Pass *pass = material->getTechnique(0)->getPass(0);
+          TextureUnitState *txt = pass->createTextureUnitState(texture);
+
+          // Add transparencly.
+
+          if(alphaFlags != -1)
+            {
+              // The 237 alpha flags are by far the most common. Check
+              // NiAlphaProperty in nif/properties.d if you need to
+              // decode other values. 237 basically means normal
+              // transparencly.
+              if(alphaFlags == 237)
+                {
+                  // Enable transparency
+                  pass->setSceneBlending(SBT_TRANSPARENT_ALPHA);
+
+                  //pass->setDepthCheckEnabled(false);
+                  pass->setDepthWriteEnabled(false);
+                }
+              else
+                std::cout << "UNHANDLED ALPHA FOR " << texture << ": " << alphaFlags << "\n";
+            }
+        }
 
       // Set bells and whistles
       material->setAmbient(ambient[0], ambient[1], ambient[2]);
@@ -638,12 +673,6 @@ extern "C" void ogre_createMaterial(char *name,	    // Name to give
       material->setSpecular(specular[0], specular[1], specular[2], alpha);
       material->setSelfIllumination(emissive[0], emissive[1], emissive[2]);
       material->setShininess(glossiness);
-
-      // Enable transparancy? This is just guesswork. Perhaps we
-      // should use NiAlphaProperty or something instead. This looks
-      // like crap so it's not enabled right now.
-
-      //material->setSceneBlending(SBT_TRANSPARENT_ALPHA);
 }
 
 extern "C" SceneNode *ogre_getDetachedNode()
diff --git a/ogre/cpp_mygui.cpp b/ogre/cpp_mygui.cpp
index a0b1e9c8f..55ec17bd6 100644
--- a/ogre/cpp_mygui.cpp
+++ b/ogre/cpp_mygui.cpp
@@ -30,7 +30,11 @@ extern "C" void gui_setNeedMouseFocus(MyGUI::WidgetPtr p, int32_t b)
 { p->setNeedMouseFocus(b); }
 
 extern "C" void gui_setTextColor(MyGUI::WidgetPtr p, float r,float g,float b)
-{ p->setTextColour(Ogre::ColourValue(b,g,r)); }
+{
+  MyGUI::StaticText *st = dynamic_cast<MyGUI::StaticText*>(p);
+  if(st != NULL)
+    st->setTextColour(Ogre::ColourValue(b,g,r));
+}
 
 extern "C" void gui_setCoord(MyGUI::WidgetPtr p,
                              int32_t x,int32_t y,int32_t w,int32_t h)
@@ -177,7 +181,7 @@ public:
   {
     MyGUI::WidgetPtr pt;
     getWidget(pt, name);
-    pt->setTextColour(Ogre::ColourValue(b,g,r));
+    gui_setTextColor(pt,r,g,b);
   }
 
   void setImage(const char* name, const char* imgName)
@@ -278,7 +282,6 @@ public:
     setCoord(500,0,320,300);
     mMainWidget->setCaption(cellName);
     setText("WorldButton", "World");
-    setColor("WorldButton", 0.75, 0.6, 0.35);
     setImage("Compass", "compass.dds");
   }
 };
@@ -399,11 +402,15 @@ void turnGuiOff(MyGUI::WidgetPtr sender)
   gui_toggleGui();
 }
 
-extern "C" void gui_setupGUI()
+extern "C" void gui_setupGUI(int32_t debugOut)
 {
   ResourceGroupManager::getSingleton().
     addResourceLocation("media_mygui", "FileSystem", "General");
 
+  // Enable/disable logging to stdout
+  MyGUI::LogManager::initialise();
+  MyGUI::LogManager::setSTDOutputEnabled(debugOut);
+
   mGUI = new MyGUI::Gui();
   mGUI->initialise(mWindow);
 
diff --git a/ogre/cpp_ogre.cpp b/ogre/cpp_ogre.cpp
index 40d911312..54abe1942 100644
--- a/ogre/cpp_ogre.cpp
+++ b/ogre/cpp_ogre.cpp
@@ -35,6 +35,8 @@
 
 #include <MyGUI.h>
 
+#include "dbg.h"
+
 using namespace Ogre;
 
 RenderWindow* mWindow;
diff --git a/ogre/meshloader.d b/ogre/meshloader.d
index 740cf2392..9ab521398 100644
--- a/ogre/meshloader.d
+++ b/ogre/meshloader.d
@@ -66,8 +66,6 @@ struct MeshLoader
   {
     baseName = name;
 
-    writefln("Loading mesh '%s'", name);
-
     // Check if the first record is a node
     Node n = cast(Node) nifMesh.records[0];
 
@@ -194,7 +192,7 @@ struct MeshLoader
             //writefln("Found path controller");
             assert(cont.target is data);
           }
-        else writefln("Other controller (%s)", cont);
+        //else writefln("Other controller (%s)", cont);
         cont = cont.next;
       }
 
@@ -210,6 +208,10 @@ struct MeshLoader
     char[] newName = UniqueName(baseName);
     NiMaterialProperty mp;
 
+    // Special alpha settings, if the NiAlphaProperty is present
+    int alphaFlags = -1;
+    ubyte alphaTest;
+
     bool hidden = (flags & 0x01) != 0; // Not displayed
     bool collide = (flags & 0x02) != 0; // Use this mesh for collision
     bool bbcollide = (flags & 0x04) != 0; // Use bounding box for
@@ -260,6 +262,16 @@ struct MeshLoader
 	    }
 	}
 
+        // NiAlphaProperty
+        {
+          NiAlphaProperty a = cast(NiAlphaProperty) p;
+          if(a !is null)
+            {
+              alphaFlags = a.flags;
+              alphaTest = a.threshold;
+            }
+        }
+
 	// NiMaterialProperty block
 	{
 	  NiMaterialProperty tmp = cast(NiMaterialProperty) p;
@@ -270,11 +282,8 @@ struct MeshLoader
 	      material = newName;
 	      continue;
 	    }
-	  //writefln("Unknown property found: ", p);
 	}
       }
-    //if(!texture.length) writefln("No texture found");
-
     // Get a pointer to the texture name
     char* texturePtr;
     if(texture.length) texturePtr = toStringz(texture);
@@ -282,9 +291,12 @@ struct MeshLoader
 
     // Create the material
     if(material.length)
-      ogre_createMaterial(material.ptr, mp.ambient.array.ptr, mp.diffuse.array.ptr,
-			 mp.specular.array.ptr, mp.emissive.array.ptr,
-			 mp.glossiness, mp.alpha, texturePtr);
+      // A material is present. Use it.
+      ogre_createMaterial(material.ptr, mp.ambient.array.ptr,
+                          mp.diffuse.array.ptr,
+                          mp.specular.array.ptr, mp.emissive.array.ptr,
+                          mp.glossiness, mp.alpha, texturePtr,
+                          alphaFlags, alphaTest);
     else if(texturePtr)
       {
 	// Texture, but no material. Make a default one.
@@ -294,8 +306,8 @@ struct MeshLoader
 	zero[] = 0.0;
 	one[] = 1.0;
 
-	ogre_createMaterial(newName.ptr, one.ptr, one.ptr, zero.ptr, zero.ptr, 0.0, 1.0,
-			   texturePtr);
+	ogre_createMaterial(newName.ptr, one.ptr, one.ptr, zero.ptr, zero.ptr,
+                            0.0, 1.0, texturePtr, alphaFlags, alphaTest);
       }
 
   nomaterial:
diff --git a/ogre/ogre.d b/ogre/ogre.d
index 4df7383d8..d07d5e342 100644
--- a/ogre/ogre.d
+++ b/ogre/ogre.d
@@ -94,7 +94,7 @@ static ~this()
 }
 
 // Loads ogre configurations, creats the root, etc.
-void setupOgre()
+void setupOgre(bool debugOut)
 {
   char[] plugincfg;
 
@@ -108,7 +108,7 @@ void setupOgre()
 
   // Later we will send more config info from core.config along with
   // this function
-  if(ogre_configure(config.finalOgreConfig, toStringz(plugincfg)))
+  if(ogre_configure(config.finalOgreConfig, toStringz(plugincfg), debugOut))
     OgreException("Configuration abort");
 
   ogre_initWindow();
@@ -119,7 +119,7 @@ void setupOgre()
   ogre_makeScene();
 
   // Load the GUI system
-  gui_setupGUI();
+  gui_setupGUI(debugOut);
 
   // Run the GUI scripts
   runGUIScripts();
@@ -148,8 +148,8 @@ void startRendering()
   ogre_startRendering();
 }
 
-// Cleans up after OGRE. Resets things like screen resolution and
-// mouse control.
+// Cleans up after OGRE. Resets things like screen resolution, mouse
+// control and keyboard repeat rate.
 void cleanupOgre()
 {
   if(ogreSetup)
diff --git a/openmw.d b/openmw.d
index a34976092..c8eadfc54 100644
--- a/openmw.d
+++ b/openmw.d
@@ -43,6 +43,7 @@ import core.config;
 
 import monster.util.string;
 import monster.vm.mclass;
+import monster.vm.dbg;
 import mscripts.setup;
 
 import sound.audio;
@@ -69,6 +70,7 @@ void main(char[][] args)
   bool resetKeys = false;
   bool showOgreFlag = false;
   bool noSound = false;
+  bool debugOut = false;
 
   // Some examples to try:
   //
@@ -99,6 +101,14 @@ void main(char[][] args)
     else if(a == "-rk") resetKeys = true;
     else if(a == "-oc") showOgreFlag = true;
     else if(a == "-ns") noSound = true;
+    else if(a == "-debug")
+      {
+        // Enable Monster debug output
+        dbg.dbgOut = dout;
+
+        // Tell OGRE to do the same later on
+        debugOut = true;
+      }
     else cells ~= a;
 
   if(cells.length + eCells.length/2 > 1 )
@@ -116,6 +126,7 @@ void main(char[][] args)
       writefln("    -rk           Reset key bindings to default");
       writefln("    -oc           Show the Ogre config dialogue");
       writefln("    -ns           Completely disable sound");
+      writefln("    -debug        Print debug information");
       writefln("    -h            Show this help");
       writefln("");
       writefln("Specifying more than one cell implies -n");
@@ -205,7 +216,7 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
       // Get a cell data holder and load an interior cell
       cd = cellList.get();
 
-      writefln("Will load %s,%s", x, y);
+      if(debugOut) writefln("Will load %s,%s", x, y);
       try cd.loadExtCell(x,y);
       catch(Exception e)
 	{
@@ -219,11 +230,12 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
   NodePtr putObject(MeshIndex m, Placement *pos, float scale,
                     bool collide=false)
     {
-      if(m == null)
+      if(m is null)
 	writefln("WARNING: CANNOT PUT NULL OBJECT");
-      else if(m.isEmpty)
-	writefln("WARNING: CANNOT INSERT EMPTY MESH '%s'", m.getName);
-      else return placeObject(m, pos, scale, collide);
+      else if(!m.isEmpty)
+        return placeObject(m, pos, scale, collide);
+
+      //writefln("WARNING: CANNOT INSERT EMPTY MESH '%s'", m.getName);
       return null;
     }
 
@@ -234,7 +246,7 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
   if(render)
     {
       // Warm up OGRE
-      setupOgre();
+      setupOgre(debugOut);
       scope(exit) cleanupOgre();
 
       // Set up Bullet
@@ -278,7 +290,6 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
             Sound *s = ls.m.sound;
             if(s)
 	    {
-	      writefln("Dynamic light %s has sound %s", ls.m.id, s.id);
 	      ls.loopSound = soundScene.insert(s, true);
 	      if(ls.loopSound)
                 {
@@ -300,7 +311,6 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
 	  Sound *s = ls.m.sound;
 	  if(s)
 	    {
-	      writefln("Static light %s has sound %s", ls.m.id, s.id);
               ls.loopSound = soundScene.insert(s, true);
               if(ls.loopSound)
                 {
@@ -369,7 +379,7 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
       // Run it until the user tells us to quit
       startRendering();
     }
-  else debug(verbose) writefln("Skipping rendering");
+  else if(debugOut) writefln("Skipping rendering");
 
   if(!noSound)
     {
@@ -377,7 +387,7 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
       shutdownSound();
     }
 
-  debug(verbose)
+  if(debugOut)
     {
       writefln();
       writefln("%d statics", cd.statics.length);
@@ -421,7 +431,10 @@ Try specifying another cell name on the command line, or edit openmw.ini.");
   cellList.release(cd);
 
   // Write some statistics
-  poolSize();
-  writefln(esmRegion);
-  writefln("Total objects: ", MonsterClass.getTotalObjects);
+  if(debugOut)
+    {
+      poolSize();
+      writefln(esmRegion);
+      writefln("Total objects: ", MonsterClass.getTotalObjects);
+    }
 }
diff --git a/scene/gamesettings.d b/scene/gamesettings.d
index 755271df1..a07133fe3 100644
--- a/scene/gamesettings.d
+++ b/scene/gamesettings.d
@@ -44,7 +44,4 @@ void loadGameSettings()
       // UTF32 at load time, so string8 will not be needed here.
       else if(b.type == VarType.String) gmstObj.setString8(name, b.str);
     }
-
-  // Call the test function
-  gmstObj.call("test");
 }
diff --git a/util/dbg.h b/util/dbg.h
new file mode 100644
index 000000000..4498cd32f
--- /dev/null
+++ b/util/dbg.h
@@ -0,0 +1,16 @@
+#include <iostream>
+
+extern "C" void dbg_trace(const char *);
+extern "C" void dbg_untrace();
+
+class MTrace
+{
+ public:
+  MTrace(const char* str)
+    { dbg_trace(str); }
+
+  ~MTrace()
+    { dbg_untrace(); }
+};
+
+#define TRACE(x) MTrace _trc(x);