diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index d0613648d..475e906c4 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -63,6 +63,16 @@ RenderingManager::RenderingManager (OEngine::Render::OgreRenderer& _rend, const
     platform->setCacheFolder ("./");
     mFactory = new sh::Factory(platform);
 
+    sh::Language lang;
+    std::string l = Settings::Manager::getString("shader mode", "General");
+    if (l == "glsl")
+        lang = sh::Language_GLSL;
+    else if (l == "hlsl")
+        lang = sh::Language_HLSL;
+    else
+        lang = sh::Language_CG;
+    mFactory->setCurrentLanguage (lang);
+
     //The fog type must be set before any terrain objects are created as if the
     //fog type is set to FOG_NONE then the initially created terrain won't have any fog
     configureFog(1, ColourValue(1,1,1));
diff --git a/apps/openmw/mwrender/shadows.cpp b/apps/openmw/mwrender/shadows.cpp
index 4c5188e37..3d9f13243 100644
--- a/apps/openmw/mwrender/shadows.cpp
+++ b/apps/openmw/mwrender/shadows.cpp
@@ -91,16 +91,16 @@ void Shadows::recreate()
 
         // Populate from split point 1, not 0, since split 0 isn't useful (usually 0)
         const PSSMShadowCameraSetup::SplitPointList& splitPointList = getPSSMSetup()->getSplitPoints();
-        sh::Vector4* splitPoints = new sh::Vector4(splitPointList[1], splitPointList[2], splitPointList[3], 1.0);
+        sh::Vector3* splitPoints = new sh::Vector3(splitPointList[1], splitPointList[2], splitPointList[3]);
 
-        sh::Factory::getInstance ().setSharedParameter ("pssmSplitPoints", sh::makeProperty<sh::Vector4>(splitPoints));
+        sh::Factory::getInstance ().setSharedParameter ("pssmSplitPoints", sh::makeProperty<sh::Vector3>(splitPoints));
 
         shadowCameraSetup = ShadowCameraSetupPtr(mPSSMSetup);
     }
     else
     {
         LiSPSMShadowCameraSetup* lispsmSetup = new LiSPSMShadowCameraSetup();
-        lispsmSetup->setOptimalAdjustFactor(2);
+        lispsmSetup->setOptimalAdjustFactor(64);
         //lispsmSetup->setCameraLightDirectionThreshold(Degree(0));
         //lispsmSetup->setUseAggressiveFocusRegion(false);
         shadowCameraSetup = ShadowCameraSetupPtr(lispsmSetup);
@@ -131,7 +131,7 @@ void Shadows::recreate()
         Overlay* overlay;
 
         // destroy if already exists
-        if (overlay = mgr.getByName("DebugOverlay"))
+        if ((overlay = mgr.getByName("DebugOverlay")))
             mgr.destroy(overlay);
 
         overlay = mgr.create("DebugOverlay");
@@ -155,10 +155,10 @@ void Shadows::recreate()
             // destroy container if exists
             try
             {
-                if (debugPanel =
+                if ((debugPanel =
                     static_cast<OverlayContainer*>(
                         mgr.getOverlayElement("Ogre/DebugTexPanel" + StringConverter::toString(i)
-                    )))
+                    ))))
                     mgr.destroyOverlayElement(debugPanel);
             }
             catch (Ogre::Exception&) {}
@@ -178,7 +178,7 @@ void Shadows::recreate()
         OverlayManager& mgr = OverlayManager::getSingleton();
         Overlay* overlay;
 
-        if (overlay = mgr.getByName("DebugOverlay"))
+        if ((overlay = mgr.getByName("DebugOverlay")))
             mgr.destroy(overlay);
     }
 }
diff --git a/apps/openmw/mwrender/sky.cpp b/apps/openmw/mwrender/sky.cpp
index f79ab6116..65a9e8953 100644
--- a/apps/openmw/mwrender/sky.cpp
+++ b/apps/openmw/mwrender/sky.cpp
@@ -15,6 +15,8 @@
 #include <OgreOverlayManager.h>
 #include <OgreOverlayContainer.h>
 
+#include <boost/lexical_cast.hpp>
+
 #include <components/nifogre/ogre_nif_loader.hpp>
 
 #include "../mwbase/environment.hpp"
@@ -50,7 +52,7 @@ void BillboardObject::setSize(const float size)
 
 void BillboardObject::setVisibility(const float visibility)
 {
-    mMaterial->getTechnique(0)->getPass(0)->setDiffuse(0.0, 0.0, 0.0, visibility);
+    //mMaterial->getTechnique(0)->getPass(0)->setDiffuse(0.0, 0.0, 0.0, visibility);
 }
 
 void BillboardObject::setPosition(const Vector3& pPosition)
@@ -76,7 +78,7 @@ void BillboardObject::setVisibilityFlags(int flags)
 
 void BillboardObject::setColour(const ColourValue& pColour)
 {
-    mMaterial->getTechnique(0)->getPass(0)->setSelfIllumination(pColour);
+    //mMaterial->getTechnique(0)->getPass(0)->setSelfIllumination(pColour);
 }
 
 void BillboardObject::setRenderQueue(unsigned int id)
@@ -112,6 +114,12 @@ void BillboardObject::init(const String& textureName,
     mBBSet->createBillboard(0,0,0);
     mBBSet->setCastShadows(false);
 
+    sh::MaterialInstance* m = sh::Factory::getInstance().createMaterialInstance ("BillboardMaterial"+StringConverter::toString(bodyCount), "openmw_sun");
+    m->setProperty("texture", sh::makeProperty<sh::StringValue>(new sh::StringValue(textureName)));
+
+    mBBSet->setMaterialName("BillboardMaterial"+StringConverter::toString(bodyCount));
+
+    /*
     mMaterial = MaterialManager::getSingleton().create("BillboardMaterial"+StringConverter::toString(bodyCount), ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME);
     mMaterial->removeAllTechniques();
     Pass* p = mMaterial->createTechnique()->createPass();
@@ -123,7 +131,6 @@ void BillboardObject::init(const String& textureName,
     p->setAmbient(0.0,0.0,0.0);
     p->setPolygonModeOverrideable(false);
     p->createTextureUnitState(textureName);
-    mBBSet->setMaterialName("BillboardMaterial"+StringConverter::toString(bodyCount));
 
     HighLevelGpuProgramManager& mgr = HighLevelGpuProgramManager::getSingleton();
     HighLevelGpuProgramPtr vshader;
@@ -183,7 +190,7 @@ void BillboardObject::init(const String& textureName,
     fshader->getDefaultParameters()->setNamedAutoConstant("diffuse", GpuProgramParameters::ACT_SURFACE_DIFFUSE_COLOUR);
     fshader->getDefaultParameters()->setNamedAutoConstant("emissive", GpuProgramParameters::ACT_SURFACE_EMISSIVE_COLOUR);
     mMaterial->getTechnique(0)->getPass(0)->setFragmentProgram(fshader->getName());
-
+*/
     bodyCount++;
 }
 
@@ -194,6 +201,8 @@ Moon::Moon( const String& textureName,
 {
     init(textureName, initialSize, position, rootNode);
 
+
+    /*
     HighLevelGpuProgramManager& mgr = HighLevelGpuProgramManager::getSingleton();
     HighLevelGpuProgramPtr vshader;
     if (mgr.resourceExists("Moon_VP"))
@@ -261,6 +270,8 @@ Moon::Moon( const String& textureName,
     fshader->getDefaultParameters()->setNamedAutoConstant("emissive", GpuProgramParameters::ACT_SURFACE_EMISSIVE_COLOUR);
     mMaterial->getTechnique(0)->getPass(0)->setFragmentProgram(fshader->getName());
 
+    */
+
     setVisibility(1.0);
 
     mPhase = Moon::Phase_Full;
@@ -273,7 +284,7 @@ void Moon::setType(const Moon::Type& type)
 
 void Moon::setSkyColour(const Ogre::ColourValue& colour)
 {
-    mMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("skyColour", colour);
+    //mMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("skyColour", colour);
 }
 
 void Moon::setPhase(const Moon::Phase& phase)
@@ -295,7 +306,7 @@ void Moon::setPhase(const Moon::Phase& phase)
 
     textureName += ".dds";
 
-    mMaterial->getTechnique(0)->getPass(0)->getTextureUnitState(0)->setTextureName(textureName);
+    //mMaterial->getTechnique(0)->getPass(0)->getTextureUnitState(0)->setTextureName(textureName);
 
     mPhase = phase;
 }
@@ -387,8 +398,6 @@ SkyManager::SkyManager (SceneNode* pMwRoot, Camera* pCamera)
     , mSceneMgr(NULL)
     , mAtmosphereDay(NULL)
     , mAtmosphereNight(NULL)
-    , mCloudMaterial()
-    , mAtmosphereMaterial()
     , mCloudFragmentShader()
     , mClouds()
     , mNextClouds()
@@ -406,6 +415,7 @@ SkyManager::SkyManager (SceneNode* pMwRoot, Camera* pCamera)
     , mMasserEnabled(true)
     , mSecundaEnabled(true)
     , mCreated(false)
+    , mCloudAnimationTimer(0.f)
 {
     mSceneMgr = pMwRoot->getCreator();
     mRootNode = mCamera->getParentSceneNode()->createChildSceneNode();
@@ -415,7 +425,19 @@ SkyManager::SkyManager (SceneNode* pMwRoot, Camera* pCamera)
 
 void SkyManager::create()
 {
-    /// \todo preload all the textures and meshes that are used for sky rendering
+    sh::Factory::getInstance().setSharedParameter ("cloudBlendFactor",
+        sh::makeProperty<sh::FloatValue>(new sh::FloatValue(0)));
+    sh::Factory::getInstance().setSharedParameter ("cloudOpacity",
+        sh::makeProperty<sh::FloatValue>(new sh::FloatValue(1)));
+    sh::Factory::getInstance().setSharedParameter ("cloudColour",
+        sh::makeProperty<sh::Vector3>(new sh::Vector3(1,1,1)));
+    sh::Factory::getInstance().setSharedParameter ("cloudAnimationTimer",
+        sh::makeProperty<sh::FloatValue>(new sh::FloatValue(0)));
+    sh::Factory::getInstance().setSharedParameter ("nightFade",
+        sh::makeProperty<sh::FloatValue>(new sh::FloatValue(0)));
+
+    sh::Factory::getInstance().setTextureAlias ("cloud_texture_1", "");
+    sh::Factory::getInstance().setTextureAlias ("cloud_texture_2", "");
 
     // Create overlay used for thunderstorm
     MaterialPtr material = MaterialManager::getSingleton().create( "ThunderMaterial", ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME );
@@ -449,9 +471,6 @@ void SkyManager::create()
     mSunGlare->setRenderQueue(RQG_SkiesLate);
     mSunGlare->setVisibilityFlags(RV_Glare);
 
-
-    HighLevelGpuProgramManager& mgr = HighLevelGpuProgramManager::getSingleton();
-
     // Stars
     MeshPtr mesh = NifOgre::NIFLoader::load("meshes\\sky_night_01.nif");
     Entity* night1_ent = mSceneMgr->createEntity("meshes\\sky_night_01.nif");
@@ -462,76 +481,18 @@ void SkyManager::create()
     mAtmosphereNight = mRootNode->createChildSceneNode();
     mAtmosphereNight->attachObject(night1_ent);
 
-    // Stars vertex shader
-    HighLevelGpuProgramPtr stars_vp = mgr.createProgram("Stars_VP", ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME,
-        "cg", GPT_VERTEX_PROGRAM);
-    stars_vp->setParameter("profiles", "vs_2_x arbvp1");
-    stars_vp->setParameter("entry_point", "main_vp");
-    StringUtil::StrStreamType outStream4;
-    outStream4 <<
-    "void main_vp(	\n"
-    "	float4 position : POSITION,	\n"
-    "   in float2 uv : TEXCOORD0, \n"
-    "   out float2 oUV : TEXCOORD0, \n"
-    "   out float oFade : TEXCOORD1, \n"
-    "	out float4 oPosition : POSITION,	\n"
-    "	uniform float4x4 worldViewProj	\n"
-    ")	\n"
-    "{	\n"
-    "   oUV = uv; \n"
-    "   oFade = (position.z > 50) ? 1.f : 0.f; \n"
-    "	oPosition = mul( worldViewProj, position );  \n"
-    "}";
-    stars_vp->setSource(outStream4.str());
-    stars_vp->load();
-    stars_vp->getDefaultParameters()->setNamedAutoConstant("worldViewProj", GpuProgramParameters::ACT_WORLDVIEWPROJ_MATRIX);
-
-    // Stars fragment shader
-    HighLevelGpuProgramPtr stars_fp = mgr.createProgram("Stars_FP", ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME,
-        "cg", GPT_FRAGMENT_PROGRAM);
-    stars_fp->setParameter("profiles", "ps_2_x arbfp1");
-    stars_fp->setParameter("entry_point", "main_fp");
-    StringUtil::StrStreamType outStream5;
-    outStream5 <<
-    "void main_fp(	\n"
-    "   in float2 uv : TEXCOORD0, \n"
-    "	out float4 oColor    : COLOR, \n";
-    if (RenderingManager::useMRT()) outStream5 <<
-        "   out float4 oColor1 : COLOR1, \n";
-    outStream5 <<
-    "   in float fade : TEXCOORD1, \n"
-    "   uniform sampler2D texture : TEXUNIT0, \n"
-    "   uniform float opacity, \n"
-    "   uniform float4 diffuse, \n"
-    "   uniform float4 emissive \n"
-    ")	\n"
-    "{	\n"
-    "   oColor =  tex2D(texture, uv) * float4(emissive.xyz, 1) * float4(1,1,1,fade*diffuse.a); \n";
-    if (RenderingManager::useMRT()) outStream5 <<
-        "   oColor1 = float4(1, 0, 0, 1); \n";
-    outStream5 <<
-    "}";
-    stars_fp->setSource(outStream5.str());
-    stars_fp->load();
-    stars_fp->getDefaultParameters()->setNamedAutoConstant("emissive", GpuProgramParameters::ACT_SURFACE_EMISSIVE_COLOUR);
-    stars_fp->getDefaultParameters()->setNamedAutoConstant("diffuse", GpuProgramParameters::ACT_SURFACE_DIFFUSE_COLOUR);
-
-    /*
     for (unsigned int i=0; i<night1_ent->getNumSubEntities(); ++i)
     {
-        MaterialPtr mp = night1_ent->getSubEntity(i)->getMaterial();
-        mp->getTechnique(0)->getPass(0)->setSelfIllumination(1.0, 1.0, 1.0);
-        mp->getTechnique(0)->getPass(0)->setAmbient(0.0, 0.0, 0.0);
-        mp->getTechnique(0)->getPass(0)->setDiffuse(0.0, 0.0, 0.0, 1.0);
-        mp->getTechnique(0)->getPass(0)->setDepthWriteEnabled(false);
-        mp->getTechnique(0)->getPass(0)->setDepthCheckEnabled(false);
-        mp->getTechnique(0)->getPass(0)->setSceneBlending(SBT_TRANSPARENT_ALPHA);
-        mp->getTechnique(0)->getPass(0)->setVertexProgram(stars_vp->getName());
-        mp->getTechnique(0)->getPass(0)->setFragmentProgram(stars_fp->getName());
-        mp->getTechnique(0)->getPass(0)->setPolygonModeOverrideable(false);
-        mStarsMaterials[i] = mp;
+        std::string matName = "openmw_stars_" + boost::lexical_cast<std::string>(i);
+        sh::MaterialInstance* m = sh::Factory::getInstance ().createMaterialInstance (matName, "openmw_stars");
+
+        std::string textureName = sh::retrieveValue<sh::StringValue>(
+                    sh::Factory::getInstance().getMaterialInstance(night1_ent->getSubEntity (i)->getMaterialName ())->getProperty("diffuseMap"), NULL).get();
+
+        m->setProperty ("texture", sh::makeProperty<sh::StringValue>(new sh::StringValue(textureName)));
+
+        night1_ent->getSubEntity(i)->setMaterialName (matName);
     }
-    */
 
     // Atmosphere (day)
     mesh = NifOgre::NIFLoader::load("meshes\\sky_atmosphere.nif");
@@ -545,11 +506,6 @@ void SkyManager::create()
     mAtmosphereDay = mRootNode->createChildSceneNode();
     mAtmosphereDay->attachObject(atmosphere_ent);
     atmosphere_ent->getSubEntity (0)->setMaterialName ("openmw_atmosphere");
-    //mAtmosphereMaterial = atmosphere_ent->getSubEntity(0)->getMaterial();
-    //mAtmosphereMaterial->getTechnique(0)->getPass(0)->setPolygonModeOverrideable(false);
-    // Atmosphere shader
-   // mAtmosphereMaterial->getTechnique(0)->getPass(0)->setFragmentProgram(fshader->getName());
-    atmosphere_ent->getSubEntity (0)->setMaterialName("openmw_atmosphere");
 
     // Clouds
     NifOgre::NIFLoader::load("meshes\\sky_clouds_01.nif");
@@ -558,89 +514,11 @@ void SkyManager::create()
     clouds_ent->setRenderQueueGroup(RQG_SkiesEarly+5);
     SceneNode* clouds_node = mRootNode->createChildSceneNode();
     clouds_node->attachObject(clouds_ent);
-    //mCloudMaterial = clouds_ent->getSubEntity(0)->getMaterial();
     clouds_ent->getSubEntity(0)->setMaterialName ("openmw_clouds");
-    //mCloudMaterial->getTechnique(0)->getPass(0)->setPolygonModeOverrideable(false);
     clouds_ent->setCastShadows(false);
 
-    // Clouds vertex shader
-    HighLevelGpuProgramPtr vshader2 = mgr.createProgram("Clouds_VP", ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME,
-        "cg", GPT_VERTEX_PROGRAM);
-    vshader2->setParameter("profiles", "vs_2_x arbvp1");
-    vshader2->setParameter("entry_point", "main_vp");
-    StringUtil::StrStreamType outStream3;
-    outStream3 <<
-    "void main_vp(	\n"
-    "	float4 position : POSITION,	\n"
-    "	in float4 color	: COLOR,	\n"
-    "   out float4 oColor : TEXCOORD1, \n"
-    "   in float2 uv : TEXCOORD0, \n"
-    "   out float2 oUV : TEXCOORD0, \n"
-    "	out float4 oPosition : POSITION,	\n"
-    "	uniform float4x4 worldViewProj	\n"
-    ")	\n"
-    "{	\n"
-    "   oUV = uv; \n"
-    "   oColor = color; \n"
-    "	oPosition = mul( worldViewProj, position );  \n"
-    "}";
-    vshader2->setSource(outStream3.str());
-    vshader2->load();
-    vshader2->getDefaultParameters()->setNamedAutoConstant("worldViewProj", GpuProgramParameters::ACT_WORLDVIEWPROJ_MATRIX);
-    //mCloudMaterial->getTechnique(0)->getPass(0)->setVertexProgram(vshader2->getName());
-
-    // Clouds fragment shader
-    mCloudFragmentShader = mgr.createProgram("Clouds_FP", ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME,
-        "cg", GPT_FRAGMENT_PROGRAM);
-    mCloudFragmentShader->setParameter("profiles", "ps_2_x arbfp1");
-    mCloudFragmentShader->setParameter("entry_point", "main_fp");
-    StringUtil::StrStreamType outStream2;
-    outStream2 <<
-    "void main_fp(	\n"
-    "   in float2 uv : TEXCOORD0, \n"
-    "   in float4 color : TEXCOORD1, \n"
-    "	out float4 oColor    : COLOR, \n";
-    if (RenderingManager::useMRT()) outStream2 <<
-        "   out float4 oColor1 : COLOR1, \n";
-    outStream2 <<
-    "   uniform sampler2D texture : TEXUNIT0, \n"
-    "   uniform sampler2D secondTexture : TEXUNIT1, \n"
-    "   uniform float transitionFactor, \n"
-    "   uniform float time, \n"
-    "   uniform float speed, \n"
-    "   uniform float opacity, \n"
-    "   uniform float4 emissive \n"
-    ")	\n"
-    "{	\n"
-    "   uv += float2(0,1) * time * speed * 0.003; \n" // Scroll in y direction
-    "   float4 tex = lerp(tex2D(texture, uv), tex2D(secondTexture, uv), transitionFactor); \n"
-    "   oColor = color * float4(emissive.xyz,1) * tex * float4(1,1,1,opacity); \n";
-    if (RenderingManager::useMRT()) outStream2 <<
-        "   oColor1 = float4(1, 0, 0, 1); \n";
-    outStream2 <<
-    "}";
-    mCloudFragmentShader->setSource(outStream2.str());
-    mCloudFragmentShader->load();
-    mCloudFragmentShader->getDefaultParameters()->setNamedAutoConstant("emissive", GpuProgramParameters::ACT_SURFACE_EMISSIVE_COLOUR);
-    //mCloudMaterial->getTechnique(0)->getPass(0)->setFragmentProgram(mCloudFragmentShader->getName());
-    setCloudsOpacity(0.75);
-
     ModVertexAlpha(clouds_ent, 1);
 
-    // I'm not sure if the materials are being used by any other objects
-    // Make a unique "modifiable" copy of the materials to be sure
-    //mCloudMaterial = mCloudMaterial->clone("Clouds");
-    //clouds_ent->getSubEntity(0)->setMaterial(mCloudMaterial);
-    /*
-    mCloudMaterial->getTechnique(0)->getPass(0)->setSelfIllumination(1.0, 1.0, 1.0);
-    mCloudMaterial->getTechnique(0)->getPass(0)->setDepthWriteEnabled(false);
-    mCloudMaterial->getTechnique(0)->getPass(0)->setSceneBlending(SBT_TRANSPARENT_ALPHA);
-
-    mCloudMaterial->getTechnique(0)->getPass(0)->removeAllTextureUnitStates();
-    mCloudMaterial->getTechnique(0)->getPass(0)->createTextureUnitState("textures\\tx_sky_cloudy.dds");
-    mCloudMaterial->getTechnique(0)->getPass(0)->createTextureUnitState("");
-*/
-
     mCreated = true;
 }
 
@@ -669,7 +547,10 @@ void SkyManager::update(float duration)
     if (!mEnabled) return;
 
     // UV Scroll the clouds
-    //mCloudMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstantFromTime("time", MWBase::Environment::get().getWorld()->getTimeScaleFactor()/30.f);
+    mCloudAnimationTimer += duration * mCloudSpeed * (MWBase::Environment::get().getWorld()->getTimeScaleFactor()/30.f);
+    sh::Factory::getInstance().setSharedParameter ("cloudAnimationTimer",
+        sh::makeProperty<sh::FloatValue>(new sh::FloatValue(mCloudAnimationTimer)));
+
 
     /// \todo improve this
     mMasser->setPhase( static_cast<Moon::Phase>( (int) ((mDay % 32)/4.f)) );
@@ -678,15 +559,15 @@ void SkyManager::update(float duration)
 
     if (mSunEnabled)
     {
-        // take 1/5 sec for fading the glare effect from invisible to full
+        // take 1/10 sec for fading the glare effect from invisible to full
         if (mGlareFade > mGlare)
         {
-            mGlareFade -= duration*5;
+            mGlareFade -= duration*10;
             if (mGlareFade < mGlare) mGlareFade = mGlare;
         }
         else if (mGlareFade < mGlare)
         {
-            mGlareFade += duration*5;
+            mGlareFade += duration*10;
             if (mGlareFade > mGlare) mGlareFade = mGlare;
         }
 
@@ -733,39 +614,34 @@ void SkyManager::setMoonColour (bool red)
                             : ColourValue(1.0, 1.0, 1.0));
 }
 
-void SkyManager::setCloudsOpacity(float opacity)
-{
-    if (!mCreated) return;
-    //mCloudMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("opacity", Real(opacity));
-}
-
 void SkyManager::setWeather(const MWWorld::WeatherResult& weather)
 {
     if (!mCreated) return;
 
-    /*
     if (mClouds != weather.mCloudTexture)
     {
-        mCloudMaterial->getTechnique(0)->getPass(0)->getTextureUnitState(0)->setTextureName("textures\\"+weather.mCloudTexture);
+        sh::Factory::getInstance().setTextureAlias ("cloud_texture_1", "textures\\"+weather.mCloudTexture);
         mClouds = weather.mCloudTexture;
     }
 
     if (mNextClouds != weather.mNextCloudTexture)
     {
-        mCloudMaterial->getTechnique(0)->getPass(0)->getTextureUnitState(1)->setTextureName("textures\\"+weather.mNextCloudTexture);
+        sh::Factory::getInstance().setTextureAlias ("cloud_texture_2", "textures\\"+weather.mNextCloudTexture);
         mNextClouds = weather.mNextCloudTexture;
     }
 
     if (mCloudBlendFactor != weather.mCloudBlendFactor)
     {
-        mCloudMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("transitionFactor", Real(weather.mCloudBlendFactor));
         mCloudBlendFactor = weather.mCloudBlendFactor;
+        sh::Factory::getInstance().setSharedParameter ("cloudBlendFactor",
+            sh::makeProperty<sh::FloatValue>(new sh::FloatValue(weather.mCloudBlendFactor)));
     }
 
     if (mCloudOpacity != weather.mCloudOpacity)
     {
-        mCloudMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("opacity", Real(weather.mCloudOpacity));
         mCloudOpacity = weather.mCloudOpacity;
+        sh::Factory::getInstance().setSharedParameter ("cloudOpacity",
+            sh::makeProperty<sh::FloatValue>(new sh::FloatValue(weather.mCloudOpacity)));
     }
 
     if (mCloudColour != weather.mSunColor)
@@ -774,23 +650,21 @@ void SkyManager::setWeather(const MWWorld::WeatherResult& weather)
                         weather.mSunColor.g*0.7 + weather.mAmbientColor.g*0.7,
                         weather.mSunColor.b*0.7 + weather.mAmbientColor.b*0.7);
 
-        mCloudMaterial->getTechnique(0)->getPass(0)->setSelfIllumination(clr);
+        sh::Factory::getInstance().setSharedParameter ("cloudColour",
+            sh::makeProperty<sh::Vector3>(new sh::Vector3(clr.r, clr.g, clr.b)));
+
         mCloudColour = weather.mSunColor;
     }
-*/
+
     if (mSkyColour != weather.mSkyColor)
     {
         mSkyColour = weather.mSkyColor;
         sh::Factory::getInstance().setSharedParameter ("atmosphereColour", sh::makeProperty<sh::Vector4>(new sh::Vector4(
-            weather.mSkyColor.r, weather.mSkyColor.g, weather.mSkyColor.b, 1.0)));
-    }
-/*
-    if (mCloudSpeed != weather.mCloudSpeed)
-    {
-        mCloudMaterial->getTechnique(0)->getPass(0)->getFragmentProgramParameters()->setNamedConstant("speed", Real(weather.mCloudSpeed));
-        mCloudSpeed = weather.mCloudSpeed;
+            weather.mSkyColor.r, weather.mSkyColor.g, weather.mSkyColor.b, weather.mSkyColor.a)));
     }
 
+    mCloudSpeed = weather.mCloudSpeed;
+
     if (weather.mNight && mStarsOpacity != weather.mNightFade)
     {
         if (weather.mNightFade == 0)
@@ -798,12 +672,14 @@ void SkyManager::setWeather(const MWWorld::WeatherResult& weather)
         else
         {
             mAtmosphereNight->setVisible(true);
-            for (int i=0; i<7; ++i)
-                mStarsMaterials[i]->getTechnique(0)->getPass(0)->setDiffuse(0.0, 0.0, 0.0, weather.mNightFade);
+
+            sh::Factory::getInstance().setSharedParameter ("nightFade",
+                sh::makeProperty<sh::FloatValue>(new sh::FloatValue(weather.mNightFade)));
+
             mStarsOpacity = weather.mNightFade;
         }
     }
-    */
+
 
     float strength;
     float timeofday_angle = std::abs(mSunGlare->getPosition().z/mSunGlare->getPosition().length());
diff --git a/apps/openmw/mwrender/sky.hpp b/apps/openmw/mwrender/sky.hpp
index 6bb055824..f59583c04 100644
--- a/apps/openmw/mwrender/sky.hpp
+++ b/apps/openmw/mwrender/sky.hpp
@@ -139,9 +139,6 @@ namespace MWRender
         void setMoonColour (bool red);
         ///< change Secunda colour to red
 
-        void setCloudsOpacity(float opacity);
-        ///< change opacity of the clouds
-
         void setWeather(const MWWorld::WeatherResult& weather);
 
         Ogre::SceneNode* getSunNode();
@@ -182,6 +179,8 @@ namespace MWRender
         int mDay;
         int mMonth;
 
+        float mCloudAnimationTimer;
+
         BillboardObject* mSun;
         BillboardObject* mSunGlare;
         Moon* mMasser;
@@ -194,11 +193,6 @@ namespace MWRender
         Ogre::SceneNode* mAtmosphereDay;
         Ogre::SceneNode* mAtmosphereNight;
 
-        Ogre::MaterialPtr mCloudMaterial;
-        Ogre::MaterialPtr mAtmosphereMaterial;
-
-        Ogre::MaterialPtr mStarsMaterials[7];
-
         Ogre::HighLevelGpuProgramPtr mCloudFragmentShader;
 
         // remember some settings so we don't have to apply them again if they didnt change
diff --git a/extern/shiny b/extern/shiny
index 34e952bf3..7485a15c2 160000
--- a/extern/shiny
+++ b/extern/shiny
@@ -1 +1 @@
-Subproject commit 34e952bf3d5e09adfd3e5c0f6462d612e193e447
+Subproject commit 7485a15c26f129084a1c264fa1a98dc2de86f298
diff --git a/files/materials/atmosphere.shader b/files/materials/atmosphere.shader
index 831ba1138..295fa9376 100644
--- a/files/materials/atmosphere.shader
+++ b/files/materials/atmosphere.shader
@@ -1,11 +1,11 @@
 #include "core.h"
 
-#define MRT @shPropertyBool(mrt_output)
+#define MRT @shGlobalSettingBool(mrt_output)
 
 #ifdef SH_VERTEX_SHADER
 
     SH_BEGIN_PROGRAM
-        shUniform(float4x4 wvp) @shAutoConstant(wvp, worldviewproj_matrix)
+        shUniform(float4x4, wvp) @shAutoConstant(wvp, worldviewproj_matrix)
 
         shColourInput(float4)
         shOutput(float4, colourPassthrough)
@@ -23,7 +23,7 @@
 #if MRT
         shDeclareMrtOutput(1)
 #endif
-        shUniform(float4 atmosphereColour)                   @shSharedParameter(atmosphereColour)
+        shUniform(float4, atmosphereColour)                   @shSharedParameter(atmosphereColour)
 
     SH_START_PROGRAM
     {
diff --git a/files/materials/clouds.shader b/files/materials/clouds.shader
index 1a80a27dd..7677ecd95 100644
--- a/files/materials/clouds.shader
+++ b/files/materials/clouds.shader
@@ -1,11 +1,11 @@
 #include "core.h"
 
-#define MRT @shPropertyBool(mrt_output)
+#define MRT @shGlobalSettingBool(mrt_output)
 
 #ifdef SH_VERTEX_SHADER
 
     SH_BEGIN_PROGRAM
-        shUniform(float4x4 wvp) @shAutoConstant(wvp, worldviewproj_matrix)
+        shUniform(float4x4, wvp) @shAutoConstant(wvp, worldviewproj_matrix)
         shInput(float2, uv0)
         shOutput(float2, UV)
         shColourInput(float4)
@@ -13,7 +13,7 @@
 
     SH_START_PROGRAM
     {
-        
+        colourPassthrough = colour;
 	    shOutputPosition = shMatrixMult(wvp, shInputPosition);
 	    UV = uv0;
     }
@@ -21,17 +21,28 @@
 #else
 
     SH_BEGIN_PROGRAM
-		shSampler2D(diffuseMap)
 		shInput(float2, UV)
+		shInput(float4, colourPassthrough)
 #if MRT
         shDeclareMrtOutput(1)
 #endif
-        shUniform(float4 materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
-        shUniform(float4 materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)
-
+        
+        shSampler2D(diffuseMap1)
+        shSampler2D(diffuseMap2)
+        
+        shUniform(float, cloudBlendFactor)                    @shSharedParameter(cloudBlendFactor)
+        shUniform(float, cloudAnimationTimer)                 @shSharedParameter(cloudAnimationTimer)
+        shUniform(float, cloudOpacity)                        @shSharedParameter(cloudOpacity)
+        shUniform(float3, cloudColour)                        @shSharedParameter(cloudColour)
+        
     SH_START_PROGRAM
     {
-        shOutputColour(0) = float4(1,1,1,materialDiffuse.a) * float4(materialEmissive.xyz, 1) * shSample(diffuseMap, UV);
+        // Scroll in y direction
+        float2 scrolledUV = UV + float2(0,1) * cloudAnimationTimer * 0.003; 
+        
+        float4 albedo = shSample(diffuseMap1, scrolledUV) * (1-cloudBlendFactor) + shSample(diffuseMap2, scrolledUV) * cloudBlendFactor;
+        
+        shOutputColour(0) = colourPassthrough * float4(cloudColour, 1) * albedo * float4(1,1,1, cloudOpacity);
 
 #if MRT
         shOutputColour(1) = float4(1,1,1,1);
diff --git a/files/materials/core.h b/files/materials/core.h
index b5d784dae..34095f93d 100644
--- a/files/materials/core.h
+++ b/files/materials/core.h
@@ -9,7 +9,7 @@
 
     #define shMatrixMult(m, v) mul(m, v)
 
-    #define shUniform(s) , uniform s
+    #define shUniform(type, name) , uniform type name
 
     #define shInput(type, name) , in type name : TEXCOORD@shCounter(1)
     #define shOutput(type, name) , out type name : TEXCOORD@shCounter(2)
@@ -59,13 +59,13 @@
     #define float4 vec4
     #define int2 ivec2
     #define int3 ivec3
-    #define int4 ivec4
+    #define int4 ivec4/
     #define shTexture2D sampler2D
     #define shSample(tex, coord) texture(tex, coord)
     #define shLerp(a, b, t) mix(a, b, t)
     #define shSaturate(a) clamp(a, 0.0, 1.0)
 
-    #define shUniform(s) uniform s;
+    #define shUniform(type, name) uniform type name;
 
     #define shSampler2D(name) uniform sampler2D name; @shUseSampler(name)
 
diff --git a/files/materials/objects.shader b/files/materials/objects.shader
index c80a592a3..3b4992f5b 100644
--- a/files/materials/objects.shader
+++ b/files/materials/objects.shader
@@ -21,7 +21,7 @@
     // ------------------------------------- VERTEX ---------------------------------------
 
     SH_BEGIN_PROGRAM
-        shUniform(float4x4 wvp) @shAutoConstant(wvp, worldviewproj_matrix)
+        shUniform(float4x4, wvp) @shAutoConstant(wvp, worldviewproj_matrix)
         shInput(float2, uv0)
         shOutput(float2, UV)
         shNormalInput(float4)
@@ -41,16 +41,16 @@
 
 #if SHADOWS
         shOutput(float4, lightSpacePos0)
-        shUniform(float4x4 texViewProjMatrix0) @shAutoConstant(texViewProjMatrix0, texture_viewproj_matrix)
-        shUniform(float4x4 worldMatrix) @shAutoConstant(worldMatrix, world_matrix)
+        shUniform(float4x4, texViewProjMatrix0) @shAutoConstant(texViewProjMatrix0, texture_viewproj_matrix)
+        shUniform(float4x4, worldMatrix) @shAutoConstant(worldMatrix, world_matrix)
 #endif
 
 #if SHADOWS_PSSM
     @shForeach(3)
         shOutput(float4, lightSpacePos@shIterator)
-        shUniform(float4x4 texViewProjMatrix@shIterator) @shAutoConstant(texViewProjMatrix@shIterator, texture_viewproj_matrix, @shIterator)
+        shUniform(float4x4, texViewProjMatrix@shIterator) @shAutoConstant(texViewProjMatrix@shIterator, texture_viewproj_matrix, @shIterator)
     @shEndForeach
-        shUniform(float4x4 worldMatrix) @shAutoConstant(worldMatrix, world_matrix)
+        shUniform(float4x4, worldMatrix) @shAutoConstant(worldMatrix, world_matrix)
 #endif
     SH_START_PROGRAM
     {
@@ -99,27 +99,27 @@
 #endif
 
 #if MRT
-        shUniform(float far) @shAutoConstant(far, far_clip_distance)
+        shUniform(float, far) @shAutoConstant(far, far_clip_distance)
 #endif
 
 #if LIGHTING
         shInput(float3, normalPassthrough)
         shInput(float3, objSpacePositionPassthrough)
-        shUniform(float4 lightAmbient)                       @shAutoConstant(lightAmbient, ambient_light_colour)
-        //shUniform(float passIteration)                       @shAutoConstant(passIteration, pass_iteration_number)
-        shUniform(float4 materialAmbient)                    @shAutoConstant(materialAmbient, surface_ambient_colour)
-        shUniform(float4 materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
-        shUniform(float4 materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)
+        shUniform(float4, lightAmbient)                       @shAutoConstant(lightAmbient, ambient_light_colour)
+        //shUniform(float, passIteration)                       @shAutoConstant(passIteration, pass_iteration_number)
+        shUniform(float4, materialAmbient)                    @shAutoConstant(materialAmbient, surface_ambient_colour)
+        shUniform(float4, materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
+        shUniform(float4, materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)
     @shForeach(8)
-        shUniform(float4 lightPosObjSpace@shIterator)        @shAutoConstant(lightPosObjSpace@shIterator, light_position_object_space, @shIterator)
-        shUniform(float4 lightAttenuation@shIterator)        @shAutoConstant(lightAttenuation@shIterator, light_attenuation, @shIterator)
-        shUniform(float4 lightDiffuse@shIterator)            @shAutoConstant(lightDiffuse@shIterator, light_diffuse_colour, @shIterator)
+        shUniform(float4, lightPosObjSpace@shIterator)        @shAutoConstant(lightPosObjSpace@shIterator, light_position_object_space, @shIterator)
+        shUniform(float4, lightAttenuation@shIterator)        @shAutoConstant(lightAttenuation@shIterator, light_attenuation, @shIterator)
+        shUniform(float4, lightDiffuse@shIterator)            @shAutoConstant(lightDiffuse@shIterator, light_diffuse_colour, @shIterator)
     @shEndForeach
 #endif
         
 #if FOG
-        shUniform(float3 fogColor) @shAutoConstant(fogColor, fog_colour)
-        shUniform(float4 fogParams) @shAutoConstant(fogParams, fog_params)
+        shUniform(float3, fogColor) @shAutoConstant(fogColor, fog_colour)
+        shUniform(float4, fogParams) @shAutoConstant(fogParams, fog_params)
 #endif
 
 #ifdef HAS_VERTEXCOLOR
@@ -129,19 +129,19 @@
 #if SHADOWS
         shInput(float4, lightSpacePos0)
         shSampler2D(shadowMap0)
-        shUniform(float2 invShadowmapSize0)   @shAutoConstant(invShadowmapSize0, inverse_texture_size, 1)
+        shUniform(float2, invShadowmapSize0)   @shAutoConstant(invShadowmapSize0, inverse_texture_size, 1)
 #endif
 #if SHADOWS_PSSM
     @shForeach(3)
         shInput(float4, lightSpacePos@shIterator)
         shSampler2D(shadowMap@shIterator)
-        shUniform(float2 invShadowmapSize@shIterator)  @shAutoConstant(invShadowmapSize@shIterator, inverse_texture_size, @shIterator(1))
+        shUniform(float2, invShadowmapSize@shIterator)  @shAutoConstant(invShadowmapSize@shIterator, inverse_texture_size, @shIterator(1))
     @shEndForeach
-    shUniform(float4 pssmSplitPoints)  @shSharedParameter(pssmSplitPoints)
+    shUniform(float3, pssmSplitPoints)  @shSharedParameter(pssmSplitPoints)
 #endif
 
 #if SHADOWS || SHADOWS_PSSM
-        shUniform(float4 shadowFar_fadeStart) @shSharedParameter(shadowFar_fadeStart)
+        shUniform(float4, shadowFar_fadeStart) @shSharedParameter(shadowFar_fadeStart)
 #endif
     SH_START_PROGRAM
     {
diff --git a/files/materials/shadowcaster.shader b/files/materials/shadowcaster.shader
index 500207778..a5551509d 100644
--- a/files/materials/shadowcaster.shader
+++ b/files/materials/shadowcaster.shader
@@ -9,7 +9,7 @@
         shInput(float2, uv0)
         shOutput(float2, UV)
 #endif
-        shUniform(float4x4 wvp) @shAutoConstant(wvp, worldviewproj_matrix)
+        shUniform(float4x4, wvp) @shAutoConstant(wvp, worldviewproj_matrix)
         shOutput(float2, depth)
     SH_START_PROGRAM
     {
diff --git a/files/materials/shadows.h b/files/materials/shadows.h
index a3518b976..9127d28f7 100644
--- a/files/materials/shadows.h
+++ b/files/materials/shadows.h
@@ -1,6 +1,4 @@
 
-
-
 float depthShadowPCF (shTexture2D shadowMap, float4 shadowMapPos, float2 offset)
 {
     shadowMapPos /= shadowMapPos.w;
@@ -31,7 +29,7 @@ float pssmDepthShadow (
     shTexture2D shadowMap2,
     
     float depth,
-    float4 pssmSplitPoints)
+    float3 pssmSplitPoints)
 
 {
     float shadow;
diff --git a/files/materials/sky.mat b/files/materials/sky.mat
index 6465476dd..3f52966e8 100644
--- a/files/materials/sky.mat
+++ b/files/materials/sky.mat
@@ -1,7 +1,6 @@
 material openmw_moon
 {
     allow_fixed_function false
-    mrt_output true
     pass
     {
         vertex_program moon_vertex
@@ -9,11 +8,6 @@ material openmw_moon
         
         polygon_mode_overrideable off
         
-        shader_properties
-        {
-            mrt_output $mrt_output
-        }
-        
         texture_unit diffuseMap
         {
             texture $diffuseMap
@@ -25,7 +19,6 @@ material openmw_moon
 material openmw_clouds
 {
     allow_fixed_function false
-    mrt_output true
     pass
     {
         vertex_program clouds_vertex
@@ -36,11 +29,6 @@ material openmw_clouds
         scene_blend alpha_blend
         depth_write off
 
-        shader_properties
-        {
-            mrt_output $mrt_output
-        }
-
         // second diffuse map is used for weather transitions
         texture_unit diffuseMap1
         {
@@ -58,7 +46,6 @@ material openmw_clouds
 material openmw_atmosphere
 {
     allow_fixed_function false
-    mrt_output true
     pass
     {
         vertex_program atmosphere_vertex
@@ -68,33 +55,26 @@ material openmw_atmosphere
         
         scene_blend alpha_blend
         depth_write off
-        
-        shader_properties
-        {
-            mrt_output $mrt_output
-        }
     }
 }
 
 material openmw_stars
 {
     allow_fixed_function false
-    mrt_output true
     pass
     {
         vertex_program stars_vertex
         fragment_program stars_fragment
         
         polygon_mode_overrideable off
- 
-        shader_properties
-        {
-            mrt_output $mrt_output
-        }
+        
+        depth_check off
+        depth_write off
+        scene_blend alpha_blend
 
         texture_unit diffuseMap
         {
-            diffuseMap $diffuseMap
+            direct_texture $texture
         }
     }
 }
@@ -103,7 +83,6 @@ material openmw_stars
 material openmw_sun
 {
     allow_fixed_function false
-    mrt_output true
     pass
     {
         vertex_program sun_vertex
@@ -111,14 +90,9 @@ material openmw_sun
 
         polygon_mode_overrideable off
         
-        shader_properties
-        {
-            mrt_output $mrt_output
-        }
-        
-        texture unit diffuseMap
+        texture_unit diffuseMap
         {
-            diffuseMap $diffuseMap
+            direct_texture $texture
         }
     }
 }
diff --git a/files/materials/sun.shader b/files/materials/sun.shader
index 03ec7665c..4c7926756 100644
--- a/files/materials/sun.shader
+++ b/files/materials/sun.shader
@@ -1,12 +1,12 @@
 #include "core.h"
 
-#define MRT @shPropertyBool(mrt_output)
+#define MRT @shGlobalSettingBool(mrt_output)
 
 
 #ifdef SH_VERTEX_SHADER
 
     SH_BEGIN_PROGRAM
-        shUniform(float4x4 wvp) @shAutoConstant(wvp, worldviewproj_matrix)
+        shUniform(float4x4, wvp) @shAutoConstant(wvp, worldviewproj_matrix)
         shInput(float2, uv0)
         shOutput(float2, UV)
 
@@ -24,12 +24,14 @@
 #if MRT
         shDeclareMrtOutput(1)
 #endif
-        shUniform(float4 materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
-        shUniform(float4 materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)
+        shUniform(float4, materialDiffuse)                    @shAutoConstant(materialDiffuse, surface_diffuse_colour)
+        shUniform(float4, materialEmissive)                   @shAutoConstant(materialEmissive, surface_emissive_colour)
 
     SH_START_PROGRAM
     {
         shOutputColour(0) = float4(1,1,1,materialDiffuse.a) * float4(materialEmissive.xyz, 1) * shSample(diffuseMap, UV);
+        
+        shOutputColour(0) = shSample(diffuseMap, UV);
 
 #if MRT
         shOutputColour(1) = float4(1,1,1,1);