diff --git a/apps/openmw/main.cpp b/apps/openmw/main.cpp
index 8cdab74d8..1bd52009a 100644
--- a/apps/openmw/main.cpp
+++ b/apps/openmw/main.cpp
@@ -319,6 +319,8 @@ int main(int argc, char**argv)
 
     boost::filesystem::ofstream logfile;
 
+    std::auto_ptr<OMW::Engine> engine;
+
     int ret = 0;
     try
     {
@@ -360,11 +362,11 @@ int main(int argc, char**argv)
         boost::filesystem::current_path(bundlePath);
 #endif
 
-        OMW::Engine engine(cfgMgr);
+        engine.reset(new OMW::Engine(cfgMgr));
 
-        if (parseOptions(argc, argv, engine, cfgMgr))
+        if (parseOptions(argc, argv, *engine, cfgMgr))
         {
-            engine.go();
+            engine->go();
         }
     }
     catch (std::exception &e)
diff --git a/apps/openmw/mwclass/creature.cpp b/apps/openmw/mwclass/creature.cpp
index a74ee6fd6..c175ce3eb 100644
--- a/apps/openmw/mwclass/creature.cpp
+++ b/apps/openmw/mwclass/creature.cpp
@@ -366,10 +366,17 @@ namespace MWClass
         getCreatureStats(ptr).setAttacked(true);
 
         // Self defense
-        if (!attacker.isEmpty() && !MWBase::Environment::get().getMechanicsManager()->isAggressive(ptr, attacker)
-                && (canWalk(ptr) || canFly(ptr) || canSwim(ptr))) // No retaliation for totally static creatures
-                                                                  // (they have no movement or attacks anyway)
+        if ( ((!attacker.isEmpty() && attacker.getClass().getCreatureStats(attacker).getAiSequence().isInCombat(ptr))
+              || attacker == MWBase::Environment::get().getWorld()->getPlayerPtr())
+                && !ptr.getClass().getCreatureStats(ptr).getAiSequence().isInCombat(attacker)
+            && (canWalk(ptr) || canFly(ptr) || canSwim(ptr)) // No retaliation for totally static creatures
+                                                              // (they have no movement or attacks anyway)
+            )
+        {
+            // Attacker is in combat with us, but we are not in combat with the attacker yet. Time to fight back.
+            // Note: accidental or collateral damage attacks are ignored.
             MWBase::Environment::get().getMechanicsManager()->startCombat(ptr, attacker);
+        }
 
         if(!successful)
         {
diff --git a/apps/openmw/mwgui/dialogue.cpp b/apps/openmw/mwgui/dialogue.cpp
index 2283e0cbe..23098bf42 100644
--- a/apps/openmw/mwgui/dialogue.cpp
+++ b/apps/openmw/mwgui/dialogue.cpp
@@ -396,6 +396,31 @@ namespace MWGui
         mLinks.clear();
 
         updateOptions();
+
+        restock();
+    }
+
+    void DialogueWindow::restock()
+    {
+        MWMechanics::CreatureStats &sellerStats = mPtr.getClass().getCreatureStats(mPtr);
+        float delay = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("fBarterGoldResetDelay")->getFloat();
+
+        if (MWBase::Environment::get().getWorld()->getTimeStamp() >= sellerStats.getLastRestockTime() + delay)
+        {
+            sellerStats.setGoldPool(mPtr.getClass().getBaseGold(mPtr));
+
+            mPtr.getClass().restock(mPtr);
+
+            // Also restock any containers owned by this merchant, which are also available to buy in the trade window
+            std::vector<MWWorld::Ptr> itemSources;
+            MWBase::Environment::get().getWorld()->getContainersOwnedBy(mPtr, itemSources);
+            for (std::vector<MWWorld::Ptr>::iterator it = itemSources.begin(); it != itemSources.end(); ++it)
+            {
+                it->getClass().restock(*it);
+            }
+
+            sellerStats.setLastRestockTime(MWBase::Environment::get().getWorld()->getTimeStamp());
+        }
     }
 
     void DialogueWindow::setKeywords(std::list<std::string> keyWords)
diff --git a/apps/openmw/mwgui/dialogue.hpp b/apps/openmw/mwgui/dialogue.hpp
index 516c04942..71935dfaf 100644
--- a/apps/openmw/mwgui/dialogue.hpp
+++ b/apps/openmw/mwgui/dialogue.hpp
@@ -152,6 +152,7 @@ namespace MWGui
 
     private:
         void updateOptions();
+        void restock();
 
         int mServices;
 
diff --git a/apps/openmw/mwgui/enchantingdialog.cpp b/apps/openmw/mwgui/enchantingdialog.cpp
index 92221977b..d7e79e7a2 100644
--- a/apps/openmw/mwgui/enchantingdialog.cpp
+++ b/apps/openmw/mwgui/enchantingdialog.cpp
@@ -144,9 +144,14 @@ namespace MWGui
         mEnchanting.setSelfEnchanting(false);
         mEnchanting.setEnchanter(actor);
 
+        mBuyButton->setCaptionWithReplacing("#{sBuy}");
+
         mPtr = actor;
 
         startEditing ();
+        mPrice->setVisible(true);
+        mPriceText->setVisible(true);
+        updateLabels();
     }
 
     void EnchantingDialog::startSelfEnchanting(MWWorld::Ptr soulgem)
@@ -156,9 +161,10 @@ namespace MWGui
         mEnchanting.setSelfEnchanting(true);
         mEnchanting.setEnchanter(player);
 
+        mBuyButton->setCaptionWithReplacing("#{sCreate}");
+
         mPtr = player;
         startEditing();
-        mEnchanting.setSoulGem(soulgem);
 
         setSoulGem(soulgem);
 
@@ -299,7 +305,7 @@ namespace MWGui
 
         MWWorld::Ptr player = MWBase::Environment::get().getWorld()->getPlayerPtr();
         int playerGold = player.getClass().getContainerStore(player).count(MWWorld::ContainerStore::sGoldId);
-        if (mEnchanting.getEnchantPrice() > playerGold)
+        if (mPtr != player && mEnchanting.getEnchantPrice() > playerGold)
         {
             MWBase::Environment::get().getWindowManager()->messageBox ("#{sNotifyMessage18}");
             return;
diff --git a/apps/openmw/mwgui/itemview.cpp b/apps/openmw/mwgui/itemview.cpp
index b86f61034..c4c6c6545 100644
--- a/apps/openmw/mwgui/itemview.cpp
+++ b/apps/openmw/mwgui/itemview.cpp
@@ -115,7 +115,13 @@ void ItemView::update()
     }
     x += 42;
     MyGUI::IntSize size = MyGUI::IntSize(std::max(mScrollView->getSize().width, x), mScrollView->getSize().height);
+
+    // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+    mScrollView->setVisibleVScroll(false);
+    mScrollView->setVisibleHScroll(false);
     mScrollView->setCanvasSize(size);
+    mScrollView->setVisibleVScroll(true);
+    mScrollView->setVisibleHScroll(true);
     dragArea->setSize(size);
 }
 
diff --git a/apps/openmw/mwgui/journalwindow.cpp b/apps/openmw/mwgui/journalwindow.cpp
index fa27b4ef0..b588ba3e1 100644
--- a/apps/openmw/mwgui/journalwindow.cpp
+++ b/apps/openmw/mwgui/journalwindow.cpp
@@ -400,7 +400,10 @@ namespace
 
             getPage (pageId)->showPage (book, 0);
 
+            // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+            getWidget <MyGUI::ScrollView> (listId)->setVisibleVScroll(false);
             getWidget <MyGUI::ScrollView> (listId)->setCanvasSize (size.first, size.second);
+            getWidget <MyGUI::ScrollView> (listId)->setVisibleVScroll(true);
         }
 
         void notifyIndexLinkClicked (MWGui::TypesetBook::InteractiveId character)
diff --git a/apps/openmw/mwgui/list.cpp b/apps/openmw/mwgui/list.cpp
index b0c514b9d..e88d43534 100644
--- a/apps/openmw/mwgui/list.cpp
+++ b/apps/openmw/mwgui/list.cpp
@@ -93,7 +93,11 @@ namespace MWGui
                 }
                 ++i;
             }
+
+            // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+            mScrollView->setVisibleVScroll(false);
             mScrollView->setCanvasSize(mClient->getSize().width, std::max(mItemHeight, mClient->getSize().height));
+            mScrollView->setVisibleVScroll(true);
 
             if (!scrollbarShown && mItemHeight > mClient->getSize().height)
                 redraw(true);
diff --git a/apps/openmw/mwgui/merchantrepair.cpp b/apps/openmw/mwgui/merchantrepair.cpp
index 0d1a57000..b6f9936a8 100644
--- a/apps/openmw/mwgui/merchantrepair.cpp
+++ b/apps/openmw/mwgui/merchantrepair.cpp
@@ -10,6 +10,8 @@
 #include "../mwbase/windowmanager.hpp"
 #include "../mwbase/soundmanager.hpp"
 
+#include "../mwmechanics/creaturestats.hpp"
+
 #include "../mwworld/class.hpp"
 #include "../mwworld/containerstore.hpp"
 #include "../mwworld/esmstore.hpp"
@@ -91,7 +93,10 @@ void MerchantRepair::startRepair(const MWWorld::Ptr &actor)
             button->eventMouseButtonClick += MyGUI::newDelegate(this, &MerchantRepair::onRepairButtonClick);
         }
     }
+    // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+    mList->setVisibleVScroll(false);
     mList->setCanvasSize (MyGUI::IntSize(mList->getWidth(), std::max(mList->getHeight(), currentY)));
+    mList->setVisibleVScroll(true);
 
     mGoldLabel->setCaptionWithReplacing("#{sGold}: "
         + boost::lexical_cast<std::string>(playerGold));
@@ -131,6 +136,10 @@ void MerchantRepair::onRepairButtonClick(MyGUI::Widget *sender)
 
     player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, price, player);
 
+    // add gold to NPC trading gold pool
+    MWMechanics::CreatureStats& actorStats = mActor.getClass().getCreatureStats(mActor);
+    actorStats.setGoldPool(actorStats.getGoldPool() + price);
+
     startRepair(mActor);
 }
 
diff --git a/apps/openmw/mwgui/quickkeysmenu.cpp b/apps/openmw/mwgui/quickkeysmenu.cpp
index 328ef21fb..84150c322 100644
--- a/apps/openmw/mwgui/quickkeysmenu.cpp
+++ b/apps/openmw/mwgui/quickkeysmenu.cpp
@@ -654,9 +654,10 @@ namespace MWGui
             mHeight += spellHeight;
         }
 
-
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mMagicList->setVisibleVScroll(false);
         mMagicList->setCanvasSize (mWidth, std::max(mMagicList->getHeight(), mHeight));
-
+        mMagicList->setVisibleVScroll(true);
     }
 
     void MagicSelectionDialog::addGroup(const std::string &label, const std::string& label2)
diff --git a/apps/openmw/mwgui/recharge.cpp b/apps/openmw/mwgui/recharge.cpp
index 9c43b1416..1b994d584 100644
--- a/apps/openmw/mwgui/recharge.cpp
+++ b/apps/openmw/mwgui/recharge.cpp
@@ -119,7 +119,11 @@ void Recharge::updateView()
 
         currentY += 32 + 4;
     }
+
+    // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+    mView->setVisibleVScroll(false);
     mView->setCanvasSize (MyGUI::IntSize(mView->getWidth(), std::max(mView->getHeight(), currentY)));
+    mView->setVisibleVScroll(true);
 }
 
 void Recharge::onCancel(MyGUI::Widget *sender)
diff --git a/apps/openmw/mwgui/repair.cpp b/apps/openmw/mwgui/repair.cpp
index 986e27243..019f341b5 100644
--- a/apps/openmw/mwgui/repair.cpp
+++ b/apps/openmw/mwgui/repair.cpp
@@ -126,7 +126,10 @@ void Repair::updateRepairView()
             currentY += 32 + 4;
         }
     }
+    // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+    mRepairView->setVisibleVScroll(false);
     mRepairView->setCanvasSize (MyGUI::IntSize(mRepairView->getWidth(), std::max(mRepairView->getHeight(), currentY)));
+    mRepairView->setVisibleVScroll(true);
 }
 
 void Repair::onCancel(MyGUI::Widget *sender)
diff --git a/apps/openmw/mwgui/review.cpp b/apps/openmw/mwgui/review.cpp
index e27e40ae6..072411707 100644
--- a/apps/openmw/mwgui/review.cpp
+++ b/apps/openmw/mwgui/review.cpp
@@ -320,7 +320,10 @@ namespace MWGui
         if (!mMiscSkills.empty())
             addSkills(mMiscSkills, "sSkillClassMisc", "Misc Skills", coord1, coord2);
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mSkillView->setVisibleVScroll(false);
         mSkillView->setCanvasSize (mSkillView->getWidth(), std::max(mSkillView->getHeight(), coord1.top));
+        mSkillView->setVisibleVScroll(true);
     }
 
     // widget controls
diff --git a/apps/openmw/mwgui/scrollwindow.cpp b/apps/openmw/mwgui/scrollwindow.cpp
index 3d0751114..867bef0d7 100644
--- a/apps/openmw/mwgui/scrollwindow.cpp
+++ b/apps/openmw/mwgui/scrollwindow.cpp
@@ -57,10 +57,13 @@ namespace MWGui
         BookTextParser parser;
         MyGUI::IntSize size = parser.parseScroll(ref->mBase->mText, mTextView, 390);
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mTextView->setVisibleVScroll(false);
         if (size.height > mTextView->getSize().height)
             mTextView->setCanvasSize(MyGUI::IntSize(410, size.height));
         else
             mTextView->setCanvasSize(410, mTextView->getSize().height);
+        mTextView->setVisibleVScroll(true);
 
         mTextView->setViewOffset(MyGUI::IntPoint(0,0));
 
diff --git a/apps/openmw/mwgui/settingswindow.cpp b/apps/openmw/mwgui/settingswindow.cpp
index 09d2fc19c..abeb6b86c 100644
--- a/apps/openmw/mwgui/settingswindow.cpp
+++ b/apps/openmw/mwgui/settingswindow.cpp
@@ -473,7 +473,10 @@ namespace MWGui
             curH += h;
         }
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mControlsBox->setVisibleVScroll(false);
         mControlsBox->setCanvasSize (mControlsBox->getWidth(), std::max(curH, mControlsBox->getHeight()));
+        mControlsBox->setVisibleVScroll(true);
     }
 
     void SettingsWindow::onRebindAction(MyGUI::Widget* _sender)
diff --git a/apps/openmw/mwgui/spellbuyingwindow.cpp b/apps/openmw/mwgui/spellbuyingwindow.cpp
index 8d9f35daa..cd378aadf 100644
--- a/apps/openmw/mwgui/spellbuyingwindow.cpp
+++ b/apps/openmw/mwgui/spellbuyingwindow.cpp
@@ -50,6 +50,8 @@ namespace MWGui
         MWWorld::Ptr player = MWBase::Environment::get().getWorld()->getPlayerPtr();
         int playerGold = player.getClass().getContainerStore(player).count(MWWorld::ContainerStore::sGoldId);
 
+        // TODO: refactor to use MyGUI::ListBox
+
         MyGUI::Button* toAdd =
             mSpellsView->createWidget<MyGUI::Button>(
                 "SandTextButton",
@@ -106,7 +108,10 @@ namespace MWGui
 
         updateLabels();
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mSpellsView->setVisibleVScroll(false);
         mSpellsView->setCanvasSize (MyGUI::IntSize(mSpellsView->getWidth(), std::max(mSpellsView->getHeight(), mCurrentY)));
+        mSpellsView->setVisibleVScroll(true);
     }
 
     bool SpellBuyingWindow::playerHasSpell(const std::string &id)
@@ -130,6 +135,11 @@ namespace MWGui
         MWMechanics::Spells& spells = stats.getSpells();
         spells.add (mSpellsWidgetMap.find(_sender)->second);
         player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, price, player);
+
+        // add gold to NPC trading gold pool
+        MWMechanics::CreatureStats& npcStats = mPtr.getClass().getCreatureStats(mPtr);
+        npcStats.setGoldPool(npcStats.getGoldPool() + price);
+
         startSpellBuying(mPtr);
 
         MWBase::Environment::get().getSoundManager()->playSound ("Item Gold Up", 1.0, 1.0);
diff --git a/apps/openmw/mwgui/spellcreationdialog.cpp b/apps/openmw/mwgui/spellcreationdialog.cpp
index 030b8bf37..63cbdb567 100644
--- a/apps/openmw/mwgui/spellcreationdialog.cpp
+++ b/apps/openmw/mwgui/spellcreationdialog.cpp
@@ -352,7 +352,13 @@ namespace MWGui
 
         mSpell.mName = mNameEdit->getCaption();
 
-        player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, boost::lexical_cast<int>(mPriceLabel->getCaption()), player);
+        int price = boost::lexical_cast<int>(mPriceLabel->getCaption());
+
+        player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, price, player);
+
+        // add gold to NPC trading gold pool
+        MWMechanics::CreatureStats& npcStats = mPtr.getClass().getCreatureStats(mPtr);
+        npcStats.setGoldPool(npcStats.getGoldPool() + price);
 
         MWBase::Environment::get().getSoundManager()->playSound ("Item Gold Up", 1.0, 1.0);
 
@@ -637,7 +643,10 @@ namespace MWGui
             ++i;
         }
 
+        // Canvas size must be expressed with HScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mUsedEffectsView->setVisibleHScroll(false);
         mUsedEffectsView->setCanvasSize(size);
+        mUsedEffectsView->setVisibleHScroll(true);
 
         notifyEffectsChanged();
     }
diff --git a/apps/openmw/mwgui/spellwindow.cpp b/apps/openmw/mwgui/spellwindow.cpp
index 77da56fa4..15b5bf280 100644
--- a/apps/openmw/mwgui/spellwindow.cpp
+++ b/apps/openmw/mwgui/spellwindow.cpp
@@ -261,7 +261,10 @@ namespace MWGui
             mHeight += spellHeight;
         }
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mSpellView->setVisibleVScroll(false);
         mSpellView->setCanvasSize(mSpellView->getWidth(), std::max(mSpellView->getHeight(), mHeight));
+        mSpellView->setVisibleVScroll(true);
     }
 
     void SpellWindow::addGroup(const std::string &label, const std::string& label2)
diff --git a/apps/openmw/mwgui/statswindow.cpp b/apps/openmw/mwgui/statswindow.cpp
index b11258f1c..7f3b66d83 100644
--- a/apps/openmw/mwgui/statswindow.cpp
+++ b/apps/openmw/mwgui/statswindow.cpp
@@ -82,7 +82,10 @@ namespace MWGui
     {
         mLeftPane->setCoord( MyGUI::IntCoord(0, 0, 0.44*window->getSize().width, window->getSize().height) );
         mRightPane->setCoord( MyGUI::IntCoord(0.44*window->getSize().width, 0, 0.56*window->getSize().width, window->getSize().height) );
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mSkillView->setVisibleVScroll(false);
         mSkillView->setCanvasSize (mSkillView->getWidth(), mSkillView->getCanvasSize().height);
+        mSkillView->setVisibleVScroll(true);
     }
 
     void StatsWindow::setBar(const std::string& name, const std::string& tname, int val, int max)
@@ -578,7 +581,10 @@ namespace MWGui
             mSkillWidgets[mSkillWidgets.size()-1-i]->setUserString("Caption_Text", "#{sCrimeHelp}");
         }
 
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mSkillView->setVisibleVScroll(false);
         mSkillView->setCanvasSize (mSkillView->getWidth(), std::max(mSkillView->getHeight(), coord1.top));
+        mSkillView->setVisibleVScroll(true);
     }
 
     void StatsWindow::onPinToggled()
diff --git a/apps/openmw/mwgui/tradewindow.cpp b/apps/openmw/mwgui/tradewindow.cpp
index c56c2ee94..f94e39b2f 100644
--- a/apps/openmw/mwgui/tradewindow.cpp
+++ b/apps/openmw/mwgui/tradewindow.cpp
@@ -99,8 +99,6 @@ namespace MWGui
         mCurrentBalance = 0;
         mCurrentMerchantOffer = 0;
 
-        restock();
-
         std::vector<MWWorld::Ptr> itemSources;
         MWBase::Environment::get().getWorld()->getContainersOwnedBy(actor, itemSources);
 
@@ -509,29 +507,6 @@ namespace MWGui
         return merchantGold;
     }
 
-    void TradeWindow::restock()
-    {
-        MWMechanics::CreatureStats &sellerStats = mPtr.getClass().getCreatureStats(mPtr);
-        float delay = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("fBarterGoldResetDelay")->getFloat();
-
-        if (MWBase::Environment::get().getWorld()->getTimeStamp() >= sellerStats.getLastRestockTime() + delay)
-        {
-            sellerStats.setGoldPool(mPtr.getClass().getBaseGold(mPtr));
-
-            mPtr.getClass().restock(mPtr);
-
-            // Also restock any containers owned by this merchant, which are also available to buy in the trade window
-            std::vector<MWWorld::Ptr> itemSources;
-            MWBase::Environment::get().getWorld()->getContainersOwnedBy(mPtr, itemSources);
-            for (std::vector<MWWorld::Ptr>::iterator it = itemSources.begin(); it != itemSources.end(); ++it)
-            {
-                it->getClass().restock(*it);
-            }
-
-            sellerStats.setLastRestockTime(MWBase::Environment::get().getWorld()->getTimeStamp());
-        }
-    }
-
     void TradeWindow::resetReference()
     {
         ReferenceInterface::resetReference();
diff --git a/apps/openmw/mwgui/tradewindow.hpp b/apps/openmw/mwgui/tradewindow.hpp
index b487a8870..7baf0ce8e 100644
--- a/apps/openmw/mwgui/tradewindow.hpp
+++ b/apps/openmw/mwgui/tradewindow.hpp
@@ -104,8 +104,6 @@ namespace MWGui
             virtual void onReferenceUnavailable();
 
             int getMerchantGold();
-
-            void restock();
     };
 }
 
diff --git a/apps/openmw/mwgui/trainingwindow.cpp b/apps/openmw/mwgui/trainingwindow.cpp
index 6463db3d7..babfe099f 100644
--- a/apps/openmw/mwgui/trainingwindow.cpp
+++ b/apps/openmw/mwgui/trainingwindow.cpp
@@ -159,6 +159,9 @@ namespace MWGui
         // remove gold
         player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, price, player);
 
+        // add gold to NPC trading gold pool
+        npcStats.setGoldPool(npcStats.getGoldPool() + price);
+
         // go back to game mode
         MWBase::Environment::get().getWindowManager()->removeGuiMode (GM_Training);
         MWBase::Environment::get().getWindowManager()->removeGuiMode (GM_Dialogue);
diff --git a/apps/openmw/mwgui/travelwindow.cpp b/apps/openmw/mwgui/travelwindow.cpp
index 9aa75173a..ae191e764 100644
--- a/apps/openmw/mwgui/travelwindow.cpp
+++ b/apps/openmw/mwgui/travelwindow.cpp
@@ -12,6 +12,8 @@
 #include "../mwbase/mechanicsmanager.hpp"
 #include "../mwbase/soundmanager.hpp"
 
+#include "../mwmechanics/creaturestats.hpp"
+
 #include "../mwworld/class.hpp"
 #include "../mwworld/containerstore.hpp"
 #include "../mwworld/actionteleport.hpp"
@@ -126,7 +128,10 @@ namespace MWGui
         }
 
         updateLabels();
+        // Canvas size must be expressed with VScroll disabled, otherwise MyGUI would expand the scroll area when the scrollbar is hidden
+        mDestinationsView->setVisibleVScroll(false);
         mDestinationsView->setCanvasSize (MyGUI::IntSize(mDestinationsView->getWidth(), std::max(mDestinationsView->getHeight(), mCurrentY)));
+        mDestinationsView->setVisibleVScroll(true);
     }
 
     void TravelWindow::onTravelButtonClick(MyGUI::Widget* _sender)
@@ -147,6 +152,10 @@ namespace MWGui
 
         player.getClass().getContainerStore(player).remove(MWWorld::ContainerStore::sGoldId, price, player);
 
+        // add gold to NPC trading gold pool
+        MWMechanics::CreatureStats& npcStats = mPtr.getClass().getCreatureStats(mPtr);
+        npcStats.setGoldPool(npcStats.getGoldPool() + price);
+
         MWBase::Environment::get().getWorld ()->getFader ()->fadeOut(1);
         ESM::Position pos = *_sender->getUserData<ESM::Position>();
         std::string cellname = _sender->getUserString("Destination");
diff --git a/apps/openmw/mwmechanics/actors.cpp b/apps/openmw/mwmechanics/actors.cpp
index 8f1209827..a215a71a3 100644
--- a/apps/openmw/mwmechanics/actors.cpp
+++ b/apps/openmw/mwmechanics/actors.cpp
@@ -192,6 +192,15 @@ namespace MWMechanics
         CreatureStats& creatureStats = actor1.getClass().getCreatureStats(actor1);
         
         if (againstPlayer && creatureStats.isHostile()) return; // already fighting against player
+        if (actor2.getClass().getCreatureStats(actor2).isDead()
+                || actor1.getClass().getCreatureStats(actor1).isDead())
+            return;
+
+        const ESM::Position& actor1Pos = actor2.getRefData().getPosition();
+        const ESM::Position& actor2Pos = actor2.getRefData().getPosition();
+        float sqrDist = Ogre::Vector3(actor1Pos.pos).squaredDistance(Ogre::Vector3(actor2Pos.pos));
+        if (sqrDist > 7168*7168)
+            return;
 
         // pure water creatures won't try to fight with the target on the ground
         // except that creature is already hostile
@@ -208,9 +217,9 @@ namespace MWMechanics
         else
         {
             aggressive = false;
-            // if one of actors is creature then we should make a decision to start combat or not
-            // NOTE: function doesn't take into account combat between 2 creatures
-            if (!actor1.getClass().isNpc())
+
+            // Make guards fight aggressive creatures
+            if (!actor1.getClass().isNpc() && actor2.getClass().isClass(actor2, "Guard"))
             {
                 // if creature is hostile then it is necessarily to start combat
                 if (creatureStats.isHostile()) aggressive = true;
@@ -218,24 +227,34 @@ namespace MWMechanics
             }
         }
 
+        // start combat if we are in combat with any followers of this actor
+        const std::list<MWWorld::Ptr>& followers = getActorsFollowing(actor2);
+        for (std::list<MWWorld::Ptr>::const_iterator it = followers.begin(); it != followers.end(); ++it)
+        {
+            if (creatureStats.getAiSequence().isInCombat(*it))
+                aggressive = true;
+        }
+        // start combat if we are in combat with someone this actor is following
+        const CreatureStats& creatureStats2 = actor2.getClass().getCreatureStats(actor2);
+        for (std::list<MWMechanics::AiPackage*>::const_iterator it = creatureStats2.getAiSequence().begin(); it != creatureStats2.getAiSequence().end(); ++it)
+        {
+            if ((*it)->getTypeId() == MWMechanics::AiPackage::TypeIdFollow &&
+                    creatureStats.getAiSequence().isInCombat(dynamic_cast<MWMechanics::AiFollow*>(*it)->getTarget()))
+                aggressive = true;
+        }
+
         if(aggressive)
         {
-            const ESM::Position& actor1Pos = actor2.getRefData().getPosition();
-            const ESM::Position& actor2Pos = actor2.getRefData().getPosition();
-            float d = Ogre::Vector3(actor1Pos.pos).distance(Ogre::Vector3(actor2Pos.pos));
-            if (againstPlayer || actor2.getClass().getCreatureStats(actor2).getAiSequence().canAddTarget(actor2Pos, d))
-            {
-                bool LOS = MWBase::Environment::get().getWorld()->getLOS(actor1, actor2);
+            bool LOS = MWBase::Environment::get().getWorld()->getLOS(actor1, actor2);
 
-                if (againstPlayer) LOS &= MWBase::Environment::get().getMechanicsManager()->awarenessCheck(actor2, actor1);
+            if (againstPlayer) LOS &= MWBase::Environment::get().getMechanicsManager()->awarenessCheck(actor2, actor1);
 
-                if (LOS)
+            if (LOS)
+            {
+                MWBase::Environment::get().getMechanicsManager()->startCombat(actor1, actor2);
+                if (!againstPlayer) // start combat between each other
                 {
-                    MWBase::Environment::get().getMechanicsManager()->startCombat(actor1, actor2);
-                    if (!againstPlayer) // start combat between each other
-                    {
-                        MWBase::Environment::get().getMechanicsManager()->startCombat(actor2, actor1);
-                    }
+                    MWBase::Environment::get().getMechanicsManager()->startCombat(actor2, actor1);
                 }
             }
         }
@@ -905,12 +924,7 @@ namespace MWMechanics
 
     Actors::~Actors()
     {
-      PtrControllerMap::iterator it(mActors.begin());
-      for (; it != mActors.end(); ++it)
-      {
-        delete it->second;
-        it->second = NULL;
-      }
+        clear();
     }
 
     void Actors::addActor (const MWWorld::Ptr& ptr, bool updateImmediately)
@@ -964,19 +978,10 @@ namespace MWMechanics
         }
     }
 
-    static Ogre::Vector3 sBasePoint;
-    bool comparePtrDist (const MWWorld::Ptr& ptr1, const MWWorld::Ptr& ptr2)
-    {
-        return (sBasePoint.squaredDistance(Ogre::Vector3(ptr1.getRefData().getPosition().pos))
-            < sBasePoint.squaredDistance(Ogre::Vector3(ptr2.getRefData().getPosition().pos)));
-    }
-
     void Actors::update (float duration, bool paused)
     {
         if(!paused)
-        {
-            std::list<MWWorld::Ptr> listGuards; // at the moment only guards certainly will fight with creatures
-            
+        {            
             static float timerUpdateAITargets = 0;
 
             // target lists get updated once every 1.0 sec
@@ -989,16 +994,10 @@ namespace MWMechanics
                 // Note, the new hit object for this frame may be set by CharacterController::update -> Animation::runAnimation
                 // (below)
                 iter->first.getClass().getCreatureStats(iter->first).setLastHitObject(std::string());
-
-                // add guards to list to later make them fight with creatures
-                if (timerUpdateAITargets == 0 && iter->first.getClass().isClass(iter->first, "Guard"))
-                    listGuards.push_back(iter->first);
             }
 
             MWWorld::Ptr player = MWBase::Environment::get().getWorld()->getPlayerPtr();
 
-            listGuards.push_back(player);
-
              // AI and magic effects update
             for(PtrControllerMap::iterator iter(mActors.begin()); iter != mActors.end(); ++iter)
             {
@@ -1008,20 +1007,16 @@ namespace MWMechanics
 
                     if (MWBase::Environment::get().getMechanicsManager()->isAIActive())
                     {
-                        // make guards and creatures fight each other
-                        if (timerUpdateAITargets == 0 && iter->first.getTypeName() == typeid(ESM::Creature).name() && !listGuards.empty())
-                        {
-                            sBasePoint = Ogre::Vector3(iter->first.getRefData().getPosition().pos);
-                            listGuards.sort(comparePtrDist); // try to engage combat starting from the nearest guard
-                            
-                            for (std::list<MWWorld::Ptr>::iterator it = listGuards.begin(); it != listGuards.end(); ++it)
+                        if (timerUpdateAITargets == 0)
+                        {                            
+                            for(PtrControllerMap::iterator it(mActors.begin()); it != mActors.end(); ++it)
                             {
-                                engageCombat(iter->first, *it, *it == player);
+                                if (it->first == iter->first || iter->first == player) // player is not AI-controlled
+                                    continue;
+                                engageCombat(iter->first, it->first, it->first == player);
                             }
                         }
 
-                        if (iter->first != player) engageCombat(iter->first, player, true);
-
                         if (iter->first.getClass().isNpc() && iter->first != player)
                             updateCrimePersuit(iter->first, duration);
 
@@ -1359,6 +1354,13 @@ namespace MWMechanics
 
     void Actors::clear()
     {
+        PtrControllerMap::iterator it(mActors.begin());
+        for (; it != mActors.end(); ++it)
+        {
+            delete it->second;
+            it->second = NULL;
+        }
+        mActors.clear();
         mDeathCount.clear();
     }
 }
diff --git a/apps/openmw/mwmechanics/aicombat.cpp b/apps/openmw/mwmechanics/aicombat.cpp
index c0a97a1b1..491954495 100644
--- a/apps/openmw/mwmechanics/aicombat.cpp
+++ b/apps/openmw/mwmechanics/aicombat.cpp
@@ -174,6 +174,8 @@ namespace MWMechanics
             return true;
 
         MWWorld::Ptr target = MWBase::Environment::get().getWorld()->searchPtrViaActorId(mTargetActorId);
+        if (target.isEmpty())
+            return false;
 
         if(target.getClass().getCreatureStats(target).isDead())
             return true;
diff --git a/apps/openmw/mwmechanics/aifollow.cpp b/apps/openmw/mwmechanics/aifollow.cpp
index 5ab7e1730..c2bb0f2f4 100644
--- a/apps/openmw/mwmechanics/aifollow.cpp
+++ b/apps/openmw/mwmechanics/aifollow.cpp
@@ -121,3 +121,8 @@ MWMechanics::AiFollow::AiFollow(const ESM::AiSequence::AiFollow *follow)
 {
 
 }
+
+MWWorld::Ptr MWMechanics::AiFollow::getTarget() const
+{
+    return MWBase::Environment::get().getWorld()->searchPtr(mActorId, false);
+}
diff --git a/apps/openmw/mwmechanics/aifollow.hpp b/apps/openmw/mwmechanics/aifollow.hpp
index e9587b36e..744a9c505 100644
--- a/apps/openmw/mwmechanics/aifollow.hpp
+++ b/apps/openmw/mwmechanics/aifollow.hpp
@@ -31,6 +31,8 @@ namespace MWMechanics
 
             AiFollow(const ESM::AiSequence::AiFollow* follow);
 
+            MWWorld::Ptr getTarget() const;
+
             virtual AiFollow *clone() const;
 
             virtual bool execute (const MWWorld::Ptr& actor,float duration);
diff --git a/apps/openmw/mwmechanics/aisequence.cpp b/apps/openmw/mwmechanics/aisequence.cpp
index 02f00dfc6..1d0065679 100644
--- a/apps/openmw/mwmechanics/aisequence.cpp
+++ b/apps/openmw/mwmechanics/aisequence.cpp
@@ -72,6 +72,16 @@ bool AiSequence::getCombatTarget(MWWorld::Ptr &targetActor) const
     return true;
 }
 
+std::list<AiPackage*>::const_iterator AiSequence::begin() const
+{
+    return mPackages.begin();
+}
+
+std::list<AiPackage*>::const_iterator AiSequence::end() const
+{
+    return mPackages.end();
+}
+
 bool AiSequence::isInCombat() const
 {
     for(std::list<AiPackage*>::const_iterator it = mPackages.begin(); it != mPackages.end(); ++it)
diff --git a/apps/openmw/mwmechanics/aisequence.hpp b/apps/openmw/mwmechanics/aisequence.hpp
index bc20dc61b..af14cce59 100644
--- a/apps/openmw/mwmechanics/aisequence.hpp
+++ b/apps/openmw/mwmechanics/aisequence.hpp
@@ -50,6 +50,10 @@ namespace MWMechanics
 
             virtual ~AiSequence();
 
+            /// Iterator may be invalidated by any function calls other than begin() or end().
+            std::list<AiPackage*>::const_iterator begin() const;
+            std::list<AiPackage*>::const_iterator end() const;
+
             /// Returns currently executing AiPackage type
             /** \see enum AiPackage::TypeId **/
             int getTypeId() const;
diff --git a/apps/openmw/mwmechanics/alchemy.cpp b/apps/openmw/mwmechanics/alchemy.cpp
index 2e03122d5..a097446a0 100644
--- a/apps/openmw/mwmechanics/alchemy.cpp
+++ b/apps/openmw/mwmechanics/alchemy.cpp
@@ -181,7 +181,13 @@ void MWMechanics::Alchemy::updateEffects()
             ESM::ENAMstruct effect;
             effect.mEffectID = iter->mId;
 
-            effect.mSkill = effect.mAttribute = iter->mArg; // somewhat hack-ish, but should work
+            effect.mAttribute = -1;
+            effect.mSkill = -1;
+
+            if (magicEffect->mData.mFlags & ESM::MagicEffect::TargetSkill)
+                effect.mSkill = iter->mArg;
+            else if (magicEffect->mData.mFlags & ESM::MagicEffect::TargetAttribute)
+                effect.mAttribute = iter->mArg;
 
             effect.mRange = 0;
             effect.mArea = 0;
diff --git a/apps/openmw/mwmechanics/enchanting.cpp b/apps/openmw/mwmechanics/enchanting.cpp
index f3f6795db..9663a2d51 100644
--- a/apps/openmw/mwmechanics/enchanting.cpp
+++ b/apps/openmw/mwmechanics/enchanting.cpp
@@ -62,7 +62,7 @@ namespace MWMechanics
 
         if(mSelfEnchanting)
         {
-            if(getEnchantChance()<std::rand()/static_cast<double> (RAND_MAX)*100)
+            if(std::rand()/static_cast<double> (RAND_MAX)*100 < getEnchantChance())
                 return false;
 
             mEnchanter.getClass().skillUsageSucceeded (mEnchanter, ESM::Skill::Enchant, 2);
@@ -292,5 +292,9 @@ namespace MWMechanics
         MWWorld::ContainerStore& store = player.getClass().getContainerStore(player);
 
         store.remove(MWWorld::ContainerStore::sGoldId, getEnchantPrice(), player);
+
+        // add gold to NPC trading gold pool
+        CreatureStats& enchanterStats = mEnchanter.getClass().getCreatureStats(mEnchanter);
+        enchanterStats.setGoldPool(enchanterStats.getGoldPool() + getEnchantPrice());
     }
 }
diff --git a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
index 861d5e110..fd4269930 100644
--- a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
+++ b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
@@ -1171,6 +1171,8 @@ namespace MWMechanics
 
     void MechanicsManager::startCombat(const MWWorld::Ptr &ptr, const MWWorld::Ptr &target)
     {
+        if (ptr.getClass().getCreatureStats(ptr).getAiSequence().isInCombat(target))
+            return;
         ptr.getClass().getCreatureStats(ptr).getAiSequence().stack(MWMechanics::AiCombat(target), ptr);
         if (target == MWBase::Environment::get().getWorld()->getPlayerPtr())
         {
diff --git a/apps/openmw/mwmechanics/spellcasting.cpp b/apps/openmw/mwmechanics/spellcasting.cpp
index 67da99200..2566bf189 100644
--- a/apps/openmw/mwmechanics/spellcasting.cpp
+++ b/apps/openmw/mwmechanics/spellcasting.cpp
@@ -287,6 +287,27 @@ namespace MWMechanics
 
         bool castByPlayer = (!caster.isEmpty() && caster.getRefData().getHandle() == "player");
 
+        // Try absorbing if it's a spell
+        // NOTE: Vanilla does this once per effect source instead of adding the % from all sources together, not sure
+        // if that is worth replicating.
+        bool absorbed = false;
+        if (spell && caster != target && target.getClass().isActor())
+        {
+            int absorb = target.getClass().getCreatureStats(target).getMagicEffects().get(ESM::MagicEffect::SpellAbsorption).mMagnitude;
+            int roll = std::rand()/ (static_cast<double> (RAND_MAX) + 1) * 100; // [0, 99]
+            absorbed = (roll < absorb);
+            if (absorbed)
+            {
+                const ESM::Static* absorbStatic = MWBase::Environment::get().getWorld()->getStore().get<ESM::Static>().find ("VFX_Absorb");
+                MWBase::Environment::get().getWorld()->getAnimation(target)->addEffect(
+                            "meshes\\" + absorbStatic->mModel, ESM::MagicEffect::SpellAbsorption, false, "");
+                // Magicka is increased by cost of spell
+                DynamicStat<float> magicka = target.getClass().getCreatureStats(target).getMagicka();
+                magicka.setCurrent(magicka.getCurrent() + spell->mData.mCost);
+                target.getClass().getCreatureStats(target).setMagicka(magicka);
+            }
+        }
+
         for (std::vector<ESM::ENAMstruct>::const_iterator effectIt (effects.mList.begin());
             effectIt!=effects.mList.end(); ++effectIt)
         {
@@ -326,31 +347,13 @@ namespace MWMechanics
             {
                 anyHarmfulEffect = true;
 
+                if (absorbed) // Absorbed, and we know there was a harmful effect (figuring that out is the only reason we are in this loop)
+                    break;
+
                 // If player is attempting to cast a harmful spell, show the target's HP bar
                 if (castByPlayer && target != caster)
                     MWBase::Environment::get().getWindowManager()->setEnemy(target);
 
-                // Try absorbing if it's a spell
-                // NOTE: Vanilla does this once per effect source instead of adding the % from all sources together, not sure
-                // if that is worth replicating.
-                if (spell && caster != target)
-                {
-                    int absorb = target.getClass().getCreatureStats(target).getMagicEffects().get(ESM::MagicEffect::SpellAbsorption).mMagnitude;
-                    int roll = std::rand()/ (static_cast<double> (RAND_MAX) + 1) * 100; // [0, 99]
-                    bool isAbsorbed = (roll < absorb);
-                    if (isAbsorbed)
-                    {
-                        const ESM::Static* absorbStatic = MWBase::Environment::get().getWorld()->getStore().get<ESM::Static>().find ("VFX_Absorb");
-                        MWBase::Environment::get().getWorld()->getAnimation(target)->addEffect(
-                                    "meshes\\" + absorbStatic->mModel, ESM::MagicEffect::Reflect, false, "");
-                        // Magicka is increased by cost of spell
-                        DynamicStat<float> magicka = target.getClass().getCreatureStats(target).getMagicka();
-                        magicka.setCurrent(magicka.getCurrent() + spell->mData.mCost);
-                        target.getClass().getCreatureStats(target).setMagicka(magicka);
-                        magnitudeMult = 0;
-                    }
-                }
-
                 // Try reflecting
                 if (!reflected && magnitudeMult > 0 && !caster.isEmpty() && caster != target && !(magicEffect->mData.mFlags & ESM::MagicEffect::Unreflectable))
                 {
@@ -382,8 +385,7 @@ namespace MWMechanics
                 }
             }
 
-
-            if (magnitudeMult > 0)
+            if (magnitudeMult > 0 && !absorbed)
             {
                 float random = std::rand() / static_cast<float>(RAND_MAX);
                 float magnitude = effectIt->mMagnMin + (effectIt->mMagnMax - effectIt->mMagnMin) * random;
diff --git a/apps/openmw/mwworld/class.hpp b/apps/openmw/mwworld/class.hpp
index c3f94d7f1..e880030f9 100644
--- a/apps/openmw/mwworld/class.hpp
+++ b/apps/openmw/mwworld/class.hpp
@@ -72,12 +72,6 @@ namespace MWWorld
 
         public:
 
-            /// NPC-stances.
-            enum Stance
-            {
-                Run, Sneak
-            };
-
             virtual ~Class();
 
             const std::string& getTypeName() const {
diff --git a/apps/openmw/mwworld/worldimp.cpp b/apps/openmw/mwworld/worldimp.cpp
index 9600dde3a..120845966 100644
--- a/apps/openmw/mwworld/worldimp.cpp
+++ b/apps/openmw/mwworld/worldimp.cpp
@@ -148,7 +148,7 @@ namespace MWWorld
       mSky (true), mCells (mStore, mEsm),
       mActivationDistanceOverride (activationDistanceOverride),
       mFallback(fallbackMap), mTeleportEnabled(true), mLevitationEnabled(true),
-      mFacedDistance(FLT_MAX), mGodMode(false), mContentFiles (contentFiles),
+      mGodMode(false), mContentFiles (contentFiles),
       mGoToJail(false),
       mStartCell (startCell), mStartupScript(startupScript)
     {
@@ -290,7 +290,6 @@ namespace MWWorld
         mGodMode = false;
         mSky = true;
         mTeleportEnabled = true;
-        mFacedDistance = FLT_MAX;
 
         mGlobalVariables.fill (mStore);
     }
@@ -320,8 +319,9 @@ namespace MWWorld
         MWMechanics::CreatureStats::writeActorIdCounter(writer);
         progress.increaseProgress();
 
+        mStore.write (writer, progress); // dynamic Store must be written (and read) before Cells, so that
+                                         // references to custom made records will be recognized
         mCells.write (writer, progress);
-        mStore.write (writer, progress);
         mGlobalVariables.write (writer, progress);
         mPlayer->write (writer, progress);
         mWeatherManager->write (writer, progress);
@@ -1462,30 +1462,22 @@ namespace MWWorld
         updateFacedHandle ();
     }
 
-    void World::updateFacedHandle ()
+    void World::getFacedHandle(std::string& facedHandle, float maxDistance)
     {
-        float telekinesisRangeBonus =
-                mPlayer->getPlayer().getClass().getCreatureStats(mPlayer->getPlayer()).getMagicEffects()
-                .get(ESM::MagicEffect::Telekinesis).mMagnitude;
-        telekinesisRangeBonus = feetToGameUnits(telekinesisRangeBonus);
+        maxDistance += mRendering->getCameraDistance();
 
-        float activationDistance = getMaxActivationDistance() + telekinesisRangeBonus;
-        activationDistance += mRendering->getCameraDistance();
-
-        // send new query
-        // figure out which object we want to test against
         std::vector < std::pair < float, std::string > > results;
         if (MWBase::Environment::get().getWindowManager()->isGuiMode())
         {
             float x, y;
             MWBase::Environment::get().getWindowManager()->getMousePosition(x, y);
-            results = mPhysics->getFacedHandles(x, y, activationDistance);
+            results = mPhysics->getFacedHandles(x, y, maxDistance);
             if (MWBase::Environment::get().getWindowManager()->isConsoleMode())
                 results = mPhysics->getFacedHandles(x, y, getMaxActivationDistance ()*50);
         }
         else
         {
-            results = mPhysics->getFacedHandles(activationDistance);
+            results = mPhysics->getFacedHandles(maxDistance);
         }
 
         // ignore the player and other things we're not interested in
@@ -1508,15 +1500,21 @@ namespace MWWorld
 
         if (results.empty()
                 || results.front().second.find("HeightField") != std::string::npos) // Blocked by terrain
-        {
-            mFacedHandle = "";
-            mFacedDistance = FLT_MAX;
-        }
+            facedHandle = "";
         else
-        {
-            mFacedHandle = results.front().second;
-            mFacedDistance = results.front().first;
-        }
+            facedHandle = results.front().second;
+    }
+
+    void World::updateFacedHandle ()
+    {
+        float telekinesisRangeBonus =
+                mPlayer->getPlayer().getClass().getCreatureStats(mPlayer->getPlayer()).getMagicEffects()
+                .get(ESM::MagicEffect::Telekinesis).mMagnitude;
+        telekinesisRangeBonus = feetToGameUnits(telekinesisRangeBonus);
+
+        float activationDistance = getMaxActivationDistance() + telekinesisRangeBonus;
+
+        getFacedHandle(mFacedHandle, activationDistance);
     }
 
     bool World::isCellExterior() const
@@ -2114,8 +2112,8 @@ namespace MWWorld
     void World::enableActorCollision(const MWWorld::Ptr& actor, bool enable)
     {
         OEngine::Physic::PhysicActor *physicActor = mPhysEngine->getCharacter(actor.getRefData().getHandle());
-
-        physicActor->enableCollisionBody(enable);
+        if (physicActor)
+            physicActor->enableCollisionBody(enable);
     }
 
     bool World::findInteriorPosition(const std::string &name, ESM::Position &pos)
@@ -2344,8 +2342,49 @@ namespace MWWorld
     {
         MWMechanics::CreatureStats& stats = actor.getClass().getCreatureStats(actor);
 
-        // TODO: this only works for the player
-        MWWorld::Ptr target = getFacedObject();
+        // Get the target to use for "on touch" effects
+        MWWorld::Ptr target;
+        float distance = 192.f; // ??
+
+        if (actor == getPlayerPtr())
+        {
+            // For the player, use camera to aim
+            std::string facedHandle;
+            getFacedHandle(facedHandle, distance);
+            if (!facedHandle.empty())
+                target = getPtrViaHandle(facedHandle);
+        }
+        else
+        {
+            // For NPCs use facing direction from Head node
+            Ogre::Vector3 origin(actor.getRefData().getPosition().pos);
+            MWRender::Animation *anim = mRendering->getAnimation(actor);
+            if(anim != NULL)
+            {
+                Ogre::Node *node = anim->getNode("Head");
+                if (node == NULL)
+                    node = anim->getNode("Bip01 Head");
+                if(node != NULL)
+                    origin += node->_getDerivedPosition();
+            }
+            Ogre::Quaternion orient;
+            orient = Ogre::Quaternion(Ogre::Radian(actor.getRefData().getPosition().rot[2]), Ogre::Vector3::NEGATIVE_UNIT_Z) *
+                    Ogre::Quaternion(Ogre::Radian(actor.getRefData().getPosition().rot[0]), Ogre::Vector3::NEGATIVE_UNIT_X);
+            Ogre::Vector3 direction = orient.yAxis();
+            Ogre::Vector3 dest = origin + direction * distance;
+
+
+            std::vector<std::pair<float, std::string> > collisions = mPhysEngine->rayTest2(btVector3(origin.x, origin.y, origin.z), btVector3(dest.x, dest.y, dest.z));
+            for (std::vector<std::pair<float, std::string> >::iterator cIt = collisions.begin(); cIt != collisions.end(); ++cIt)
+            {
+                MWWorld::Ptr collided = getPtrViaHandle(cIt->second);
+                if (collided != actor)
+                {
+                    target = collided;
+                    break;
+                }
+            }
+        }
 
         std::string selectedSpell = stats.getSpells().getSelectedSpell();
 
diff --git a/apps/openmw/mwworld/worldimp.hpp b/apps/openmw/mwworld/worldimp.hpp
index dda442963..5c44388ca 100644
--- a/apps/openmw/mwworld/worldimp.hpp
+++ b/apps/openmw/mwworld/worldimp.hpp
@@ -92,7 +92,6 @@ namespace MWWorld
 
             int mActivationDistanceOverride;
             std::string mFacedHandle;
-            float mFacedDistance;
 
             std::string mStartupScript;
 
@@ -114,6 +113,7 @@ namespace MWWorld
             void updateWindowManager ();
             void performUpdateSceneQueries ();
             void updateFacedHandle ();
+            void getFacedHandle(std::string& facedHandle, float maxDistance);
 
             float getMaxActivationDistance ();
             float getNpcActivationDistance ();
diff --git a/components/esm/npcstats.cpp b/components/esm/npcstats.cpp
index 3fa954182..26d8f9596 100644
--- a/components/esm/npcstats.cpp
+++ b/components/esm/npcstats.cpp
@@ -4,7 +4,7 @@
 #include "esmreader.hpp"
 #include "esmwriter.hpp"
 
-ESM::NpcStats::Faction::Faction() : mExpelled (false), mRank (0), mReputation (0) {}
+ESM::NpcStats::Faction::Faction() : mExpelled (false), mRank (-1), mReputation (0) {}
 
 void ESM::NpcStats::load (ESMReader &esm)
 {
@@ -98,7 +98,7 @@ void ESM::NpcStats::save (ESMWriter &esm) const
             esm.writeHNT ("FAEX", expelled);
         }
 
-        if (iter->second.mRank)
+        if (iter->second.mRank >= 0)
             esm.writeHNT ("FARA", iter->second.mRank);
 
         if (iter->second.mReputation)
diff --git a/extern/shiny/Main/Factory.cpp b/extern/shiny/Main/Factory.cpp
index 72af07d58..eab5c8dfc 100644
--- a/extern/shiny/Main/Factory.cpp
+++ b/extern/shiny/Main/Factory.cpp
@@ -51,24 +51,32 @@ namespace sh
 	{
 		assert(mCurrentLanguage != Language_None);
 
-		if (boost::filesystem::exists (mPlatform->getCacheFolder () + "/lastModified.txt"))
+		try
 		{
-			std::ifstream file;
-			file.open(std::string(mPlatform->getCacheFolder () + "/lastModified.txt").c_str());
-
-			std::string line;
-			while (getline(file, line))
+			if (boost::filesystem::exists (mPlatform->getCacheFolder () + "/lastModified.txt"))
 			{
-				std::string sourceFile = line;
+				std::ifstream file;
+				file.open(std::string(mPlatform->getCacheFolder () + "/lastModified.txt").c_str());
+
+				std::string line;
+				while (getline(file, line))
+				{
+					std::string sourceFile = line;
 
-				if (!getline(file, line))
-					assert(0);
+					if (!getline(file, line))
+						assert(0);
 
-				int modified = boost::lexical_cast<int>(line);
+					int modified = boost::lexical_cast<int>(line);
 
-				mShadersLastModified[sourceFile] = modified;
+					mShadersLastModified[sourceFile] = modified;
+				}
 			}
 		}
+		catch (std::exception& e)
+		{
+			std::cerr << "Failed to load shader modification index: " << e.what() << std::endl;
+			mShadersLastModified.clear();
+		}
 
 		// load configurations
 		{
diff --git a/files/materials/atmosphere.shader b/files/materials/atmosphere.shader
index f02c5766f..c8a8e0220 100644
--- a/files/materials/atmosphere.shader
+++ b/files/materials/atmosphere.shader
@@ -33,7 +33,7 @@
 
     SH_START_PROGRAM
     {
-        shOutputColour(0) = alphaFade * atmosphereColour + (1.f - alphaFade) * horizonColour;
+        shOutputColour(0) = alphaFade * atmosphereColour + (1.0 - alphaFade) * horizonColour;
     }
 
 #endif
diff --git a/files/materials/clouds.shader b/files/materials/clouds.shader
index d3e5f083c..9e9b10256 100644
--- a/files/materials/clouds.shader
+++ b/files/materials/clouds.shader
@@ -25,7 +25,7 @@
 
         shOutputPosition = shMatrixMult(proj, shMatrixMult(worldviewFixed, shInputPosition));
         UV = uv0;
-            alphaFade = (shInputPosition.z <= 200.f) ? ((shInputPosition.z <= 100.f) ? 0.0 : 0.25) : 1.0;
+            alphaFade = (shInputPosition.z <= 200.0) ? ((shInputPosition.z <= 100.0) ? 0.0 : 0.25) : 1.0;
     }
 
 #else
diff --git a/files/materials/mygui.shader b/files/materials/mygui.shader
index 014558d97..4d12eba90 100644
--- a/files/materials/mygui.shader
+++ b/files/materials/mygui.shader
@@ -14,7 +14,7 @@
 
     SH_START_PROGRAM
     {
-        shOutputPosition = float4(shInputPosition.xyz, 1.f);
+        shOutputPosition = float4(shInputPosition.xyz, 1.0);
 #if TEXTURE
         UV.xy = uv0;
 #endif
diff --git a/files/materials/objects.shader b/files/materials/objects.shader
index ed75babdd..bacf3f912 100644
--- a/files/materials/objects.shader
+++ b/files/materials/objects.shader
@@ -210,11 +210,11 @@
 #if VERTEXCOLOR_MODE == 2
             lightResult.xyz += colour.xyz * lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(viewNormal.xyz, lightDir), 0);
+                    * max(dot(viewNormal.xyz, lightDir), 0.0);
 #else
             lightResult.xyz += materialDiffuse.xyz * lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(viewNormal.xyz, lightDir), 0);
+                    * max(dot(viewNormal.xyz, lightDir), 0.0);
 #endif
 
 #if @shIterator == 0
@@ -432,11 +432,11 @@
 #if VERTEXCOLOR_MODE == 2
             lightResult.xyz += colourPassthrough.xyz * lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(viewNormal.xyz, lightDir), 0);
+                    * max(dot(viewNormal.xyz, lightDir), 0.0);
 #else
             lightResult.xyz += materialDiffuse.xyz * lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(viewNormal.xyz, lightDir), 0);
+                    * max(dot(viewNormal.xyz, lightDir), 0.0);
 #endif
 
 #if @shIterator == 0
@@ -504,8 +504,8 @@
 
 #if ENV_MAP
         // Everything looks better with fresnel
-        float facing = 1.0 - max(abs(dot(-eyeDir, normal)), 0);
-        float envFactor = shSaturate(0.25 + 0.75 * pow(facing, 1));
+        float facing = 1.0 - max(abs(dot(-eyeDir, normal)), 0.0);
+        float envFactor = shSaturate(0.25 + 0.75 * pow(facing, 1.0));
 
         shOutputColour(0).xyz += shSample(envMap, UV.zw).xyz * envFactor * env_map_color;
 #endif
@@ -513,7 +513,7 @@
 #if SPECULAR
         float3 light0Dir = normalize(lightPosObjSpace0.xyz);
 
-        float NdotL = max(dot(normal, light0Dir), 0);
+        float NdotL = max(dot(normal, light0Dir), 0.0);
         float3 halfVec = normalize (light0Dir + eyeDir);
 
         float shininess = matShininess;
@@ -522,7 +522,7 @@
         shininess *= (specTex.a);
 #endif
 
-        float3 specular = pow(max(dot(normal, halfVec), 0), shininess) * lightSpec0 * matSpec;
+        float3 specular = pow(max(dot(normal, halfVec), 0.0), shininess) * lightSpec0 * matSpec;
 #if SPEC_MAP
         specular *= specTex.xyz;
 #else
diff --git a/files/materials/terrain.shader b/files/materials/terrain.shader
index 1436de0c3..8384588e4 100644
--- a/files/materials/terrain.shader
+++ b/files/materials/terrain.shader
@@ -175,7 +175,7 @@
 
             lightResult.xyz += lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(normal.xyz, lightDir), 0);
+                    * max(dot(normal.xyz, lightDir), 0.0);
 
 #if @shIterator == 0
             directionalResult = lightResult.xyz;
@@ -310,7 +310,7 @@ shUniform(float4, cameraPos) @shAutoConstant(cameraPos, camera_position)
 
 #if !IS_FIRST_PASS
 // Opacity the previous passes should have, i.e. 1 - (opacity of this pass)
-float previousAlpha = 1.f;
+float previousAlpha = 1.0;
 #endif
 
 
@@ -334,7 +334,7 @@ float2 blendUV = (UV - 0.5) * (16.0 / (16.0+1.0)) + 0.5;
 
         float4 albedo = float4(0,0,0,1);
 
-        float2 layerUV = float2(UV.x, 1.f-UV.y) * 16; // Reverse Y, required to get proper tangents
+        float2 layerUV = float2(UV.x, 1.0-UV.y) * 16.0; // Reverse Y, required to get proper tangents
         float2 thisLayerUV;
         float4 normalTex;
         float4 diffuseTex;
@@ -349,9 +349,9 @@ float2 blendUV = (UV - 0.5) * (16.0 / (16.0+1.0)) + 0.5;
 #if @shPropertyBool(use_normal_map_@shIterator)
         normalTex = shSample(normalMap@shIterator, thisLayerUV);
 #if @shIterator == 0 && IS_FIRST_PASS
-        TSnormal = normalize(normalTex.xyz * 2 - 1);
+        TSnormal = normalize(normalTex.xyz * 2.0 - 1.0);
 #else
-        TSnormal = shLerp(TSnormal, normalTex.xyz * 2 - 1, blendValues@shPropertyString(blendmap_component_@shIterator));
+        TSnormal = shLerp(TSnormal, normalTex.xyz * 2.0 - 1.0, blendValues@shPropertyString(blendmap_component_@shIterator));
 #endif
 #endif
 
@@ -361,7 +361,7 @@ float2 blendUV = (UV - 0.5) * (16.0 / (16.0+1.0)) + 0.5;
 
         diffuseTex = shSample(diffuseMap@shIterator, layerUV);
 #if !@shPropertyBool(use_specular_@shIterator)
-        diffuseTex.a = 0;
+        diffuseTex.a = 0.0;
 #endif
 
 #if @shIterator == 0
@@ -371,7 +371,7 @@ albedo = shLerp(albedo, diffuseTex, blendValues@shPropertyString(blendmap_compon
 #endif
 
 #if !IS_FIRST_PASS
-        previousAlpha *= 1.f-blendValues@shPropertyString(blendmap_component_@shIterator);
+        previousAlpha *= 1.0-blendValues@shPropertyString(blendmap_component_@shIterator);
 #endif
 
 
@@ -404,7 +404,7 @@ albedo = shLerp(albedo, diffuseTex, blendValues@shPropertyString(blendmap_compon
 
             lightResult.xyz += lightDiffuse[@shIterator].xyz
                     * shSaturate(1.0 / ((lightAttenuation[@shIterator].y) + (lightAttenuation[@shIterator].z * d) + (lightAttenuation[@shIterator].w * d * d)))
-                    * max(dot(normal.xyz, lightDir), 0);
+                    * max(dot(normal.xyz, lightDir), 0.0);
 #if @shIterator == 0
             float3 directionalResult = lightResult.xyz;
 #endif
@@ -444,10 +444,10 @@ albedo = shLerp(albedo, diffuseTex, blendValues@shPropertyString(blendmap_compon
         // Specular
         float3 light0Dir = normalize(lightPos0.xyz);
 
-        float NdotL = max(dot(normal, light0Dir), 0);
+        float NdotL = max(dot(normal, light0Dir), 0.0);
         float3 halfVec = normalize (light0Dir + eyeDir);
 
-        float3 specular = pow(max(dot(normal, halfVec), 0), 32) * lightSpec0;
+        float3 specular = pow(max(dot(normal, halfVec), 0.0), 32.0) * lightSpec0;
         shOutputColour(0).xyz += specular * (albedo.a) * shadow;
 #endif
 
@@ -465,9 +465,9 @@ albedo = shLerp(albedo, diffuseTex, blendValues@shPropertyString(blendmap_compon
         shOutputColour(0).xyz = max(shOutputColour(0).xyz, float3(0,0,0));
 
 #if IS_FIRST_PASS
-        shOutputColour(0).a = 1;
+        shOutputColour(0).a = 1.0;
 #else
-        shOutputColour(0).a = 1.f-previousAlpha;
+        shOutputColour(0).a = 1.0-previousAlpha;
 #endif
     }
 
diff --git a/libs/openengine/bullet/physic.cpp b/libs/openengine/bullet/physic.cpp
index 6bc544af4..954d7c283 100644
--- a/libs/openengine/bullet/physic.cpp
+++ b/libs/openengine/bullet/physic.cpp
@@ -737,7 +737,7 @@ namespace Physic
     {
     }
 
-    std::pair<std::string,float> PhysicEngine::rayTest(btVector3& from,btVector3& to,bool raycastingObjectOnly,bool ignoreHeightMap, Ogre::Vector3* normal)
+    std::pair<std::string,float> PhysicEngine::rayTest(const btVector3 &from, const btVector3 &to, bool raycastingObjectOnly, bool ignoreHeightMap, Ogre::Vector3* normal)
     {
         std::string name = "";
         float d = -1;
@@ -801,7 +801,7 @@ namespace Physic
             return std::make_pair(false, 1);
     }
 
-    std::vector< std::pair<float, std::string> > PhysicEngine::rayTest2(btVector3& from, btVector3& to)
+    std::vector< std::pair<float, std::string> > PhysicEngine::rayTest2(const btVector3& from, const btVector3& to)
     {
         MyRayResultCallback resultCallback1;
         resultCallback1.m_collisionFilterGroup = 0xff;
diff --git a/libs/openengine/bullet/physic.hpp b/libs/openengine/bullet/physic.hpp
index e37caee38..09bff4b04 100644
--- a/libs/openengine/bullet/physic.hpp
+++ b/libs/openengine/bullet/physic.hpp
@@ -302,13 +302,13 @@ namespace Physic
          * Return the closest object hit by a ray. If there are no objects, it will return ("",-1).
          * If \a normal is non-NULL, the hit normal will be written there (if there is a hit)
          */
-        std::pair<std::string,float> rayTest(btVector3& from,btVector3& to,bool raycastingObjectOnly = true,
+        std::pair<std::string,float> rayTest(const btVector3& from,const btVector3& to,bool raycastingObjectOnly = true,
                                              bool ignoreHeightMap = false, Ogre::Vector3* normal = NULL);
 
         /**
          * Return all objects hit by a ray.
          */
-        std::vector< std::pair<float, std::string> > rayTest2(btVector3& from, btVector3& to);
+        std::vector< std::pair<float, std::string> > rayTest2(const btVector3 &from, const btVector3 &to);
 
         std::pair<bool, float> sphereCast (float radius, btVector3& from, btVector3& to);
         ///< @return (hit, relative distance)