diff --git a/compiler/ast.nim b/compiler/ast.nim
index 76260b586c..45b1ebfd08 100755
--- a/compiler/ast.nim
+++ b/compiler/ast.nim
@@ -220,7 +220,7 @@ type
     sfDiscriminant,   # field is a discriminant in a record/object
     sfDeprecated,     # symbol is deprecated
     sfError,          # usage of symbol should trigger a compile-time error
-    sfInClosure,      # variable is accessed by a closure
+    sfInnerProc,      # proc is an inner proc
     sfThread,         # proc will run as a thread
                       # variable is a thread variable
     sfCompileTime,    # proc can be evaluated at compile time
@@ -976,6 +976,13 @@ proc hasSonWith(n: PNode, kind: TNodeKind): bool =
       return true
   result = false
 
+proc containsNode*(n: PNode, kinds: TNodeKinds): bool =
+  case n.kind
+  of nkEmpty..nkNilLit: result = n.kind in kinds
+  else:
+    for i in countup(0, sonsLen(n) - 1):
+      if containsNode(n.sons[i], kinds): return true
+
 proc hasSubnodeWith(n: PNode, kind: TNodeKind): bool = 
   case n.kind
   of nkEmpty..nkNilLit: result = n.kind == kind
@@ -1030,3 +1037,6 @@ proc isGenericRoutine*(s: PSym): bool =
     result = s.ast != nil and s.ast[genericParamsPos].kind != nkEmpty
   else: nil
 
+iterator items*(n: PNode): PNode =
+  for i in 0.. <n.len: yield n.sons[i]
+
diff --git a/compiler/lambdalifting.nim b/compiler/lambdalifting.nim
new file mode 100644
index 0000000000..8aa490bbb0
--- /dev/null
+++ b/compiler/lambdalifting.nim
@@ -0,0 +1,201 @@
+#
+#
+#           The Nimrod Compiler
+#        (c) Copyright 2012 Andreas Rumpf
+#
+#    See the file "copying.txt", included in this
+#    distribution, for details about the copyright.
+#
+
+# This include file implements lambda lifting for the transformator.
+
+# - Things to consider: Does capturing of 'result' work? (unknown)
+# - Do generic inner procs work? (should)
+# - Does nesting of closures work? (not yet)
+# - Test that iterators within closures work etc.
+
+const
+  procDefs = {nkLambda, nkProcDef, nkMethodDef, nkIteratorDef, nkMacroDef,
+     nkConverterDef}
+
+proc indirectAccess(a, b: PSym): PNode = 
+  # returns a[].b as a node
+  var x = newSymNode(a)
+  var y = newSymNode(b)
+  var deref = newNodeI(nkHiddenDeref, x.info)
+  deref.typ = x.typ.sons[0]
+  addSon(deref, x)
+  result = newNodeI(nkDotExpr, x.info)
+  addSon(result, deref)
+  addSon(result, y)
+  result.typ = y.typ
+
+proc Incl(container: PNode, s: PSym) =
+  for x in container:
+    if x.sym.id == s.id: return
+  container.add(newSymNode(s))
+
+proc gatherVars(c: PTransf, n: PNode, owner: PSym, container: PNode) = 
+  # gather used vars for closure generation
+  case n.kind
+  of nkSym:
+    var s = n.sym
+    var found = false
+    case s.kind
+    of skVar, skLet: found = sfGlobal notin s.flags
+    of skTemp, skForVar, skParam, skResult: found = true
+    else: nil
+    if found and owner.id != s.owner.id:
+      incl(container, s)
+  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit: nil
+  else: 
+    for i in countup(0, sonsLen(n) - 1): 
+      gatherVars(c, n.sons[i], owner, container)
+
+proc replaceVars(c: PTransf, n: PNode, owner, env: PSym) = 
+  for i in countup(0, safeLen(n) - 1):
+    if n.kind == nkSym:
+      let s = n.sym
+      var found = false
+      case s.kind
+      of skVar, skLet: found = sfGlobal notin s.flags
+      of skTemp, skForVar, skParam, skResult: found = true
+      else: nil
+      if found and owner.id != s.owner.id:
+        # access through the closure param:
+        n.sons[i] = indirectAccess(env, s)
+    else:
+      replaceVars(c, n.sons[i], owner, env)
+ 
+proc addFormalParam(routine: PSym, param: PSym) = 
+  addSon(routine.typ, param.typ)
+  addSon(routine.ast.sons[paramsPos], newSymNode(param))
+
+proc isInnerProc(s, owner: PSym): bool {.inline.} =
+  result = s.kind in {skProc, skMacro, skIterator, skMethod, skConverter} and
+    s.owner.id == owner.id and not isGenericRoutine(s)
+
+proc searchForInnerProcs(c: PTransf, n: PNode, owner: PSym, container: PNode) =
+  case n.kind
+  of nkSym:
+    let s = n.sym
+    if isInnerProc(s, owner):
+      gatherVars(c, s.getBody, owner, container)
+  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit: nil
+  else:
+    for i in 0.. <len(n):
+      searchForInnerProcs(c, n.sons[i], owner, container)
+  
+proc makeClosure(c: PTransf, prc, env: PSym): PNode =
+  var tup = newType(tyTuple, c.module)
+  tup.addson(prc.typ)
+  tup.addson(env.typ)
+  result = newNodeIT(nkPar, prc.info, tup)
+  result.add(newSymNode(prc))
+  result.add(newSymNode(env))
+  
+proc transformInnerProcs(c: PTransf, n: PNode, owner, env: PSym) =
+  case n.kind
+  of nkSym:
+    let innerProc = n.sym
+    if isInnerProc(innerProc, owner):
+      # inner proc could capture outer vars:
+      var param = newTemp(c, env.typ, n.info)
+      param.kind = skParam
+      addFormalParam(innerProc, param)
+      # 'anon' should be replaced by '(anon, env)':
+      IdNodeTablePut(c.transCon.mapping, innerProc, 
+                     makeClosure(c, innerProc, env))
+      
+      # access all non-local vars through the 'env' param:
+      var body = innerProc.getBody
+      replaceVars(c, body, innerProc, param)
+  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit: nil
+  else:
+    for i in 0.. <len(n):
+      transformInnerProcs(c, n.sons[i], owner, env)
+
+proc newCall(a, b: PSym): PNode =
+  result = newNodeI(nkCall, a.info)
+  result.add newSymNode(a)
+  result.add newSymNode(b)
+
+proc createEnvStmt(c: PTransf, varList: PNode, env: PSym): PTransNode =
+  # 'varlist' can contain parameters or variables. We don't eliminate yet
+  # local vars that end up in an environment. This could even be a for loop
+  # var!
+  result = newTransNode(nkStmtList, env.info, 0)
+  var v = newNodeI(nkVarSection, env.info)
+  addVar(v, newSymNode(env))
+  result.add(v.ptransNode)
+  # add 'new' statement:
+  result.add(newCall(getSysSym"new", env).ptransnode)
+  
+  # add assignment statements:
+  for v in varList:
+    assert v.kind == nkSym
+    let fieldAccess = indirectAccess(env, v.sym)
+    if v.sym.kind == skParam:
+      # add ``env.param = param``
+      result.add(newAsgnStmt(c, fieldAccess, v.ptransNode))
+    IdNodeTablePut(c.transCon.mapping, v.sym, fieldAccess)
+  
+proc transformProc(c: PTransf, n: PNode): PTransNode =
+  # don't process generics:
+  if n.sons[genericParamsPos].kind != nkEmpty:
+    return PTransNode(n)
+  
+  var s = n.sons[namePos].sym
+  var body = s.getBody
+  if not containsNode(body, procDefs):
+    # fast path: no inner procs, so no closure needed:
+    n.sons[bodyPos] = PNode(transform(c, body))
+    if n.kind == nkMethodDef: methodDef(s, false)
+    return PTransNode(n)
+
+  var closure = newNodeI(nkRecList, n.info)
+  searchForInnerProcs(c, body, s, closure)
+  
+  if closure.len == 0:
+    # fast path: no captured variables, so no closure needed:
+    n.sons[bodyPos] = PNode(transform(c, body))
+    if n.kind == nkMethodDef: methodDef(s, false)
+    return PTransNode(n)
+  
+  # create environment:
+  var envDesc = newType(tyObject, s)
+  envDesc.n = closure
+  addSon(envDesc, nil) # no super class
+  var envType = newType(tyRef, s)
+  addSon(envType, envDesc)
+  
+  # XXX currently we always do a heap allocation. A simple escape analysis
+  # could turn the closure into a stack allocation. Later versions will 
+  # implement that.
+  var envSym = newTemp(c, envType, s.info)
+  
+  var newBody = createEnvStmt(c, closure, envSym)
+  # modify any local proc to gain a new parameter; this also creates the
+  # mapping entries that turn (localProc) into (localProc, env):
+  transformInnerProcs(c, body, s, envSym)
+
+  # now we can transform 'body' as all rewriting entries have been created.
+  # Careful this transforms the inner procs too!
+  newBody.add(transform(c, body))
+  n.sons[bodyPos] = newBody.pnode
+  if n.kind == nkMethodDef: methodDef(s, false)
+  result = newBody
+
+proc generateThunk(c: PTransf, prc: PNode, closure: PType): PNode =
+  ## Converts 'prc' into '(thunk, nil)' so that it's compatible with
+  ## a closure.
+  
+  # XXX we hack around here by generating a 'cast' instead of a proper thunk.
+  result = newNodeIT(nkPar, prc.info, closure)
+  var conv = newNodeIT(nkHiddenStdConv, prc.info, closure.sons[0])
+  conv.add(emptyNode)
+  conv.add(prc)
+  result.add(conv)
+  result.add(newNodeIT(nkNilLit, prc.info, closure.sons[1]))
+  
+
diff --git a/compiler/sigmatch.nim b/compiler/sigmatch.nim
index 04278ba874..c21dc3c6e0 100755
--- a/compiler/sigmatch.nim
+++ b/compiler/sigmatch.nim
@@ -212,8 +212,8 @@ proc procTypeRel(mapping: var TIdTable, f, a: PType): TTypeRelation =
 
   case a.kind
   of tyNil: result = isSubtype
-  of tyProc: 
-    if sonsLen(f) != sonsLen(a) or f.callconv != a.callconv: return
+  of tyProc:
+    if sonsLen(f) != sonsLen(a): return
     # Note: We have to do unification for the parameters before the
     # return type!
     result = isEqual      # start with maximum; also correct for no
@@ -240,6 +240,12 @@ proc procTypeRel(mapping: var TIdTable, f, a: PType): TTypeRelation =
     elif tfThread in f.flags and a.flags * {tfThread, tfNoSideEffect} == {}:
       # noSideEffect implies ``tfThread``! XXX really?
       result = isNone
+    elif f.callconv != a.callconv:
+      # valid to pass a 'nimcall' thingie to 'closure':
+      if f.callconv == ccClosure and a.callconv == ccDefault:
+        result = isConvertible
+      else:
+        result = isNone
   else: nil
 
 proc typeRel(mapping: var TIdTable, f, a: PType): TTypeRelation = 
diff --git a/compiler/transf.nim b/compiler/transf.nim
index 12117f62a4..51188928c9 100755
--- a/compiler/transf.nim
+++ b/compiler/transf.nim
@@ -45,7 +45,8 @@ type
     transCon: PTransCon      # top of a TransCon stack
     inlining: int            # > 0 if we are in inlining context (copy vars)
     blocksyms: seq[PSym]
-  
+    procToEnv: TIdTable      # mapping from a proc to its generated explicit
+                             # 'env' var (for closure generation)
   PTransf = ref TTransfContext
 
 proc newTransNode(a: PNode): PTransNode {.inline.} = 
@@ -502,77 +503,14 @@ proc transformFor(c: PTransf, n: PNode): PTransNode =
   popTransCon(c)
   #echo "transformed: ", renderTree(n)
   
-
 proc getMagicOp(call: PNode): TMagic = 
   if call.sons[0].kind == nkSym and
       call.sons[0].sym.kind in {skProc, skMethod, skConverter}: 
     result = call.sons[0].sym.magic
   else:
     result = mNone
-  
-proc gatherVars(c: PTransf, n: PNode, marked: var TIntSet, owner: PSym, 
-                container: PNode) = 
-  # gather used vars for closure generation
-  case n.kind
-  of nkSym:
-    var s = n.sym
-    var found = false
-    case s.kind
-    of skVar, skLet: found = sfGlobal notin s.flags
-    of skTemp, skForVar, skParam, skResult: found = true
-    else: nil
-    if found and owner.id != s.owner.id and not ContainsOrIncl(marked, s.id): 
-      incl(s.flags, sfInClosure)
-      addSon(container, copyNode(n)) # DON'T make a copy of the symbol!
-  of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit: 
-    nil
-  else: 
-    for i in countup(0, sonsLen(n) - 1): 
-      gatherVars(c, n.sons[i], marked, owner, container)
-  
-proc addFormalParam(routine: PSym, param: PSym) = 
-  addSon(routine.typ, param.typ)
-  addSon(routine.ast.sons[paramsPos], newSymNode(param))
 
-proc indirectAccess(a, b: PSym): PNode = 
-  # returns a[].b as a node
-  var x = newSymNode(a)
-  var y = newSymNode(b)
-  var deref = newNodeI(nkHiddenDeref, x.info)
-  deref.typ = x.typ.sons[0]
-  addSon(deref, x)
-  result = newNodeI(nkDotExpr, x.info)
-  addSon(result, deref)
-  addSon(result, y)
-  result.typ = y.typ
-
-proc transformLambda(c: PTransf, n: PNode): PNode = 
-  var marked = initIntSet()
-  result = n
-  if n.sons[namePos].kind != nkSym: InternalError(n.info, "transformLambda")
-  var s = n.sons[namePos].sym
-  var closure = newNodeI(nkRecList, n.info)
-  var body = s.getBody
-  gatherVars(c, body, marked, s, closure) 
-  # add closure type to the param list (even if closure is empty!):
-  var cl = newType(tyObject, s)
-  cl.n = closure
-  addSon(cl, nil)             # no super class
-  var p = newType(tyRef, s)
-  addSon(p, cl)
-  var param = newSym(skParam, getIdent(genPrefix & "Cl"), s)
-  param.typ = p
-  addFormalParam(s, param) 
-  # all variables that are accessed should be accessed by the new closure
-  # parameter:
-  if sonsLen(closure) > 0: 
-    var newC = newTransCon(c.transCon.owner)
-    for i in countup(0, sonsLen(closure) - 1): 
-      IdNodeTablePut(newC.mapping, closure.sons[i].sym, 
-                     indirectAccess(param, closure.sons[i].sym))
-    pushTransCon(c, newC)
-    n.sons[bodyPos] = transform(c, body).pnode
-    popTransCon(c)
+include lambdalifting
 
 proc transformCase(c: PTransf, n: PNode): PTransNode = 
   # removes `elif` branches of a case stmt
@@ -670,23 +608,10 @@ proc transform(c: PTransf, n: PNode): PTransNode =
   of nkEmpty..pred(nkSym), succ(nkSym)..nkNilLit: 
     # nothing to be done for leaves:
     result = PTransNode(n)
-  of nkBracketExpr: 
-    result = transformArrayAccess(c, n)
-  of nkLambda: 
-    var s = n.sons[namePos].sym
-    n.sons[bodyPos] = PNode(transform(c, s.getBody))
-    result = PTransNode(n)
-    when false: result = transformLambda(c, n)
-  of nkForStmt: 
-    result = transformFor(c, n)
-  of nkCaseStmt: 
-    result = transformCase(c, n)
-  of nkProcDef, nkMethodDef, nkIteratorDef, nkMacroDef, nkConverterDef: 
-    if n.sons[genericParamsPos].kind == nkEmpty: 
-      var s = n.sons[namePos].sym
-      n.sons[bodyPos] = PNode(transform(c, s.getBody))
-      if n.kind == nkMethodDef: methodDef(s, false)
-    result = PTransNode(n)
+  of nkBracketExpr: result = transformArrayAccess(c, n)
+  of procDefs: result = transformProc(c, n)
+  of nkForStmt: result = transformFor(c, n)
+  of nkCaseStmt: result = transformCase(c, n)
   of nkContinueStmt:
     result = PTransNode(newNode(nkBreakStmt))
     var labl = c.blockSyms[c.blockSyms.high]
@@ -748,6 +673,7 @@ proc openTransf(module: PSym, filename: string): PPassContext =
   new(n)
   n.blocksyms = @[]
   n.module = module
+  initIdTable(n.procToEnv)
   result = n
 
 proc openTransfCached(module: PSym, filename: string, 
diff --git a/doc/gramcurl.txt b/doc/gramcurl.txt
deleted file mode 100755
index 3ac9294c87..0000000000
--- a/doc/gramcurl.txt
+++ /dev/null
@@ -1,179 +0,0 @@
-module ::= stmt*
-
-comma ::= ',' [COMMENT] [IND]
-operator ::= OP0 | OR | XOR | AND | OP3 | OP4 | OP5 | OP6 | OP7
-           | 'is' | 'isnot' | 'in' | 'notin'
-           | 'div' | 'mod' | 'shl' | 'shr' | 'not'
-
-prefixOperator ::= OP0 | OP3 | OP4 | OP5 | OP6 | OP7 | 'not'
-
-optInd ::= [COMMENT] [IND]
-
-
-lowestExpr ::= orExpr (OP0 optInd orExpr)*
-orExpr ::= andExpr (OR | 'xor' optInd andExpr)*
-andExpr ::= cmpExpr ('and' optInd cmpExpr)*
-cmpExpr ::= ampExpr (OP3 | 'is' | 'isnot' | 'in' | 'notin' optInd ampExpr)*
-ampExpr ::= plusExpr (OP4 optInd plusExpr)*
-plusExpr ::= mulExpr (OP5 optInd mulExpr)*
-mulExpr ::= dollarExpr (OP6 | 'div' | 'mod' | 'shl' | 'shr' optInd dollarExpr)*
-dollarExpr ::= primary (OP7 optInd primary)*
-
-indexExpr ::= '..' [expr] | expr ['=' expr | '..' expr]
-
-castExpr ::= 'cast' '[' optInd typeDesc [SAD] ']' '(' optInd expr [SAD] ')'
-addrExpr ::= 'addr' '(' optInd expr ')'
-symbol ::= '`' (KEYWORD | IDENT | operator | '(' ')'
-               | '[' ']' | '=' | literal)+ '`'
-         | IDENT
-         
-primaryPrefix ::= (prefixOperator | 'bind') optInd
-primarySuffix ::= '.' optInd symbol
-                | '(' optInd namedExprList [SAD] ')'
-                | '[' optInd [indexExpr (comma indexExpr)* [comma]] [SAD] ']'
-                | '^'
-                | pragma
-
-primary ::= primaryPrefix* (symbol | constructor | castExpr | addrExpr)
-            primarySuffix*
-
-literal ::= INT_LIT | INT8_LIT | INT16_LIT | INT32_LIT | INT64_LIT
-          | FLOAT_LIT | FLOAT32_LIT | FLOAT64_LIT
-          | STR_LIT | RSTR_LIT | TRIPLESTR_LIT
-          | CHAR_LIT
-          | NIL
-
-constructor ::= literal
-          | '[' optInd colonExprList [SAD] ']'
-          | '{' optInd sliceExprList [SAD] '}'
-          | '(' optInd colonExprList [SAD] ')'
-
-colonExpr ::= expr [':' expr]
-colonExprList ::= [colonExpr (comma colonExpr)* [comma]]
-
-namedExpr ::= expr ['=' expr]
-namedExprList ::= [namedExpr (comma namedExpr)* [comma]]
-
-sliceExpr ::= expr ['..' expr]
-sliceExprList ::= [sliceExpr (comma sliceExpr)* [comma]]
-
-exprOrType ::= lowestExpr
-            | 'if' '(' expr ')' expr ('elif' '(' expr ')' expr)* 'else' expr
-            | 'var' exprOrType
-            | 'ref' exprOrType
-            | 'ptr' exprOrType
-            | 'type' exprOrType
-            | 'tuple' tupleDesc
-
-expr ::= exprOrType
-     | 'proc' paramList [pragma] ['=' stmt] 
-
-qualifiedIdent ::= symbol ['.' symbol]
-
-typeDesc ::= exprOrType
-         | 'proc' paramList [pragma]
-
-macroStmt ::= '{' [stmt] '}' ('of' [sliceExprList] stmt
-                         |'elif' '(' expr ')' stmt
-                         |'except' '(' exceptList ')' stmt )*
-                         ['else' stmt]
-
-simpleStmt ::= returnStmt
-             | yieldStmt
-             | discardStmt
-             | raiseStmt
-             | breakStmt
-             | continueStmt
-             | pragma
-             | importStmt
-             | fromStmt
-             | includeStmt
-             | exprStmt
-complexStmt ::= ifStmt | whileStmt | caseStmt | tryStmt | forStmt
-              | blockStmt | asmStmt
-              | procDecl | iteratorDecl | macroDecl | templateDecl | methodDecl
-              | constSection | typeSection | whenStmt | varSection
-
-stmt ::= simpleStmt
-       | indPush (complexStmt | simpleStmt) (';' (complexStmt | simpleStmt))*
-         DED indPop
-
-exprStmt ::= lowestExpr ['=' expr | [expr (comma expr)*] [macroStmt]]
-returnStmt ::= 'return' [expr]
-yieldStmt ::= 'yield' expr
-discardStmt ::= 'discard' expr
-raiseStmt ::= 'raise' [expr]
-breakStmt ::= 'break' [symbol]
-continueStmt ::= 'continue'
-ifStmt ::= 'if' '(' expr ')' stmt ('elif' '(' expr ')' stmt)* ['else' stmt]
-whenStmt ::= 'when' '(' expr ')' stmt ('elif' '(' expr ')' stmt)* ['else' stmt]
-caseStmt ::= 'case' '(' expr ')' ('of' sliceExprList ':' stmt)*
-                               ('elif' '(' expr ')' stmt)*
-                               ['else' stmt]
-whileStmt ::= 'while' '(' expr ')' stmt
-forStmt ::= 'for' '(' symbol (comma symbol)* 'in' expr ['..' expr] ')' stmt
-exceptList ::= [qualifiedIdent (comma qualifiedIdent)*]
-
-tryStmt ::= 'try' stmt
-           ('except' '(' exceptList ')' stmt)*
-           ['finally' stmt]
-asmStmt ::= 'asm' [pragma] (STR_LIT | RSTR_LIT | TRIPLESTR_LIT)
-blockStmt ::= 'block' [symbol] stmt
-filename ::= symbol | STR_LIT | RSTR_LIT | TRIPLESTR_LIT
-importStmt ::= 'import' filename (comma filename)*
-includeStmt ::= 'include' filename (comma filename)*
-fromStmt ::= 'from' filename 'import' symbol (comma symbol)*
-
-pragma ::= '{.' optInd (colonExpr [comma])* [SAD] ('.}' | '}')
-
-param ::= symbol (comma symbol)* (':' typeDesc ['=' expr] | '=' expr)
-paramList ::= ['(' [param (comma param)*] [SAD] ')'] [':' typeDesc]
-
-genericParam ::= symbol [':' typeDesc] ['=' expr]
-genericParams ::= '[' genericParam (comma genericParam)* [SAD] ']'
-
-
-routineDecl := symbol ['*'] [genericParams] paramList [pragma] ['=' stmt]
-procDecl ::= 'proc' routineDecl
-macroDecl ::= 'macro' routineDecl
-iteratorDecl ::= 'iterator' routineDecl
-templateDecl ::= 'template' routineDecl
-methodDecl ::= 'method' routineDecl
-
-colonAndEquals ::= [':' typeDesc] '=' expr
-
-constDecl ::= symbol ['*'] [pragma] colonAndEquals ';' [COMMENT]
-constSection ::= 'const' [COMMENT] (constDecl | '{' constDecl+ '}')
-
-typeDef ::= typeDesc | objectDef | enumDef | 'distinct' typeDesc
-
-objectField ::= symbol ['*'] [pragma]
-objectIdentPart ::= objectField (comma objectField)* ':' typeDesc
-                    [COMMENT|IND COMMENT]
-
-objectWhen ::= 'when' expr ':' [COMMENT] objectPart
-              ('elif' expr ':' [COMMENT] objectPart)*
-              ['else' ':' [COMMENT] objectPart]
-objectCase ::= 'case' expr ':' typeDesc [COMMENT]
-              ('of' sliceExprList ':' [COMMENT] objectPart)*
-              ['else' ':' [COMMENT] objectPart]
-
-objectPart ::= objectWhen | objectCase | objectIdentPart | 'nil'
-             | indPush objectPart (SAD objectPart)* DED indPop
-tupleDesc ::= '[' optInd [param (comma param)*] [SAD] ']'
-
-objectDef ::= 'object' [pragma] ['of' typeDesc] objectPart
-enumField ::= symbol ['=' expr]
-enumDef ::= 'enum' ['of' typeDesc] (enumField [comma] [COMMENT | IND COMMENT])+
-
-typeDecl ::= COMMENT
-           | symbol ['*'] [genericParams] ['=' typeDef] [COMMENT | IND COMMENT]
-
-typeSection ::= 'type' indPush typeDecl (SAD typeDecl)* DED indPop
-
-colonOrEquals ::= ':' typeDesc ['=' expr] | '=' expr
-varField ::= symbol ['*'] [pragma]
-varPart ::= symbol (comma symbol)* colonOrEquals [COMMENT | IND COMMENT]
-varSection ::= 'var' (varPart
-                   | indPush (COMMENT|varPart)
-                     (SAD (COMMENT|varPart))* DED indPop)
diff --git a/doc/intern.txt b/doc/intern.txt
index 86afbb7ba5..550976d6f3 100755
--- a/doc/intern.txt
+++ b/doc/intern.txt
@@ -218,7 +218,7 @@ Backend issues
 
 However the biggest problem is that dead code elimination breaks modularity! 
 To see why, consider this scenario: The module ``G`` (for example the huge
-Gtk2 module...) is compiled with dead code elimination turned on. So no
+Gtk2 module...) is compiled with dead code elimination turned on. So none
 of ``G``'s procs is generated at all.
 
 Then module ``B`` is compiled that requires ``G.P1``. Ok, no problem,
@@ -366,11 +366,27 @@ comparisons).
 Code generation for closures
 ============================
 
+Code generation for closures is implemented by `lambda lifting`:idx:.
+
+Design
+------
+
+A ``closure`` proc var can call ordinary procs of the default Nimrod calling
+convention. But not the other way round! A closure is implemented as a
+``tuple[prc, data]``. ``data`` can be nil implying a call without a closure.
+This means that a call through a closure generates an ``if`` but the 
+interoperability is worth the cost of the ``if``. Thunk generation would be
+possible too, but it's slightly more effort to implement.
+
+Tests with GCC on Amd64 showed that it's really beneficical if the
+'environment' pointer is passed as the last argument, not as the first argument.
+
+
 Example code:
 
 .. code-block:: nimrod
   proc add(x: int): proc (y: int): int {.closure.} = 
-    return lambda (y: int): int = 
+    return proc (y: int): int = 
       return x + y
 
   var add2 = add(2)
@@ -380,21 +396,21 @@ This should produce roughly this code:
 
 .. code-block:: nimrod
   type
-    PClosure = ref object 
-      fn: proc (x: int, c: PClosure): int
+    PEnv = ref object
       x: int # data
   
-  proc wasLambda(y: int, c: PClosure): int = 
+  proc anon(y: int, c: PClosure): int = 
     return y + c.x
   
-  proc add(x: int): PClosure = 
-    var c: PClosure
-    new(c)
-    c.x = x
-    c.fn = wasLambda
+  proc add(x: int): tuple[prc, data] =
+    var env: PEnv
+    new env
+    env.x = x
+    result = (anon, env)
   
   var add2 = add(2)
-  echo add2.fn(5, add2)
+  let tmp = if add2.data == nil: add2.prc(5) else: add2.prc(5, add2.data)
+  echo tmp
 
 
 Beware of nesting:
@@ -412,36 +428,46 @@ This should produce roughly this code:
 
 .. code-block:: nimrod
   type
-    PClosure1 = ref object 
-      fn: proc (x: int, c: PClosure1): int
+    PEnvX = ref object
       x: int # data
       
-    PClosure2 = ref object 
-      fn: proc (x: int, c: PClosure2): int
+    PEnvY = ref object
       y: int
-      c1: PClosure1
+      ex: PEnvX
       
+  proc lambdaZ(z: int, ey: PEnvY): int =
+    return ey.ex.x + ey.y + z
   
-  proc innerLambda(z: int, c2: PClosure2): int = 
-    return c2.c1.x + c2.y + z
+  proc lambdaY(y: int, ex: PEnvX): tuple[prc, data: PEnvY] =
+    var ey: PEnvY
+    new ey
+    ey.y = y
+    ey.ex = ex
+    result = (lambdaZ, ey)
   
-  proc outerLambda1(y: int, c1: PClosure1): PClosure2 = 
-    new(result)
-    result.c1 = c1
-    result.y = y
-    result.fn = innerLambda
-  
-  proc add(x: int): PClosure1 = 
-    new(result)
-    result.x = x
-    result.fn = outerLambda
+  proc add(x: int): tuple[prc, data: PEnvX] =
+    var ex: PEnvX
+    ex.x = x
+    result = (labmdaY, ex)
   
   var tmp = add(2)
-  var tmp2 = tmp.fn(4, tmp)
-  var add24 = tmp2.fn(4, tmp2)
+  var tmp2 = tmp.fn(4, tmp.data)
+  var add24 = tmp2.fn(4, tmp2.data)
   echo add24(5)
 
 
+We could get rid of nesting environments by always inlining inner anon procs.
+More useful is escape analysis and stack allocation of the environment, 
+however.
+
+
+Alternative
+-----------
+
+Process the closure of all inner procs in one pass and accumulate the 
+environments. This is however not always possible.
+
+
 Accumulator
 -----------
 
@@ -451,3 +477,18 @@ Accumulator
     return lambda: int = 
       inc i
       return i
+      
+  proc p =
+    var delta = 7
+    proc accumulator(start: int): proc(): int =
+      var x = start-1
+      result = proc (): int = 
+        x = x + delta
+        inc delta
+        return x
+    
+    var a = accumulator(3)
+    var b = accumulator(4)
+    echo a() + b()
+
+
diff --git a/lib/pure/algorithm.nim b/lib/pure/algorithm.nim
index 1e9a0bb4ba..045b78250c 100755
--- a/lib/pure/algorithm.nim
+++ b/lib/pure/algorithm.nim
@@ -34,6 +34,24 @@ proc reverse*[T](a: var openArray[T]) =
   ## reverses the array `a`.
   reverse(a, 0, a.high)
 
+proc binarySearch*[T](a: openarray[T], key: T): int =
+  ## binary search for `key` in `a`. Returns -1 if not found.
+  var b = len(a)
+  while result < b:
+    var mid = (result + b) div 2
+    if a[mid] < key: result = mid + 1
+    else: b = mid
+  if result >= len(x) or a[result] != key: result = -1
+
+proc smartBinarySearch*[T](a: openArray[T], key: T): int =
+  ## ``a.len`` must be a power of 2 for this to work.
+  var step = a.len div 2
+  while step > 0:
+    if a[result or step] <= key:
+      result = result or step
+    step = step shr 1
+  if a[result] != key: result = -1
+
 const
   onlySafeCode = false
 
diff --git a/todo.txt b/todo.txt
index c666f7903e..6e238b8119 100755
--- a/todo.txt
+++ b/todo.txt
@@ -1,8 +1,9 @@
 version 0.8.14
 ==============
 
-- bug: tsortdev does not run with native GC?
+- implement closures
 - object {.pure, final.} does not work again!
+- bug: tsortdev does not run with native GC?
 - ``=`` should be overloadable; requires specialization for ``=``?
 
 version 0.9.0
@@ -18,7 +19,7 @@ version 0.9.0
   use tyInt+node for that
 - implement the high level optimizer
 - change overloading resolution
-- implement closures; implement proper coroutines
+- implement proper coroutines
 - implement ``partial`` pragma for partial evaluation
 - we need to support iteration of 2 different data structures in parallel
 - make exceptions compatible with C++ exceptions
@@ -56,6 +57,11 @@ version 0.9.XX
 - implicit ref/ptr->var conversion; the compiler may store an object
   implicitly on the heap for write barrier efficiency; better: 
   proc specialization in the code gen
+- shared memory heap: ``shared ref`` etc. The only hard part in the GC is to
+  "stop the world". However, it may be worthwhile to generate explicit 
+  (or implicit) syncGC() calls in loops. Automatic loop injection seems
+  troublesome, but maybe we can come up with a simple heuristic. (All procs
+  that `new` shared memory are syncGC() candidates...)
 - EcmaScript needs a new and better code gen: simply adapt the C code gen to it
 - tlastmod returns wrong results on BSD (Linux, MacOS X: works)
 - nested tuple unpacking; tuple unpacking in non-var-context
diff --git a/web/download.txt b/web/download.txt
index bd231dd547..47c2501e92 100755
--- a/web/download.txt
+++ b/web/download.txt
@@ -3,15 +3,16 @@
 
 Here you can download the latest version of the Nimrod Compiler.
 Please choose your platform:
-* source-based installation: `<download/nimrod_0.8.12.zip>`_
-* installer for Windows XP/Vista (i386): `<download/nimrod_0.8.12.exe>`_
+* source-based installation: `<download/nimrod_0.8.14.zip>`_
+* installer for Windows XP/Vista (i386): `<download/nimrod_0.8.14.exe>`_
   (includes GCC and everything else you need)
 
 The source-based installation has been tested on these systems:
-* Linux: i386, AMD64
+* Linux: i386, AMD64, PowerPC
 * Mac OS X: i386
 
 Other UNIX-based operating systems may work. An older version was tested on 
 FreeBSD (i386).
 
 .. include:: ../install.txt
+
diff --git a/web/news.txt b/web/news.txt
index db46587223..61f84b70f2 100755
--- a/web/news.txt
+++ b/web/news.txt
@@ -19,6 +19,7 @@ Bugfixes
 - Some more bugfixes for macros and compile-time evaluation.
 - The GC now takes into account interior pointers on the stack which may be
   introduced by aggressive C optimizers.
+- Nimrod's native allocator/GC now works on PowerPC.
 - Lots of other bugfixes: Too many to list them all.