diff --git a/doc/api.txt b/doc/api.txt
index 2bdd10bcb6..def050430b 100644
--- a/doc/api.txt
+++ b/doc/api.txt
@@ -337,33 +337,20 @@ A module prefixed with +"./"+ is relative to the file calling +require()+.
 That is, +circle.js+ must be in the same directory as +foo.js+ for
 +require("./circle")+ to find it.
 
-Without the leading +"./"+, like +require("mjsunit")+ the module is searched
+Without the leading +"./"+, like +require("assert")+ the module is searched
 for in the +require.paths+ array. +require.paths+ on my system looks like
 this: 
 
 ----------------------------------------
-[ "/home/ryan/.node_libraries"
-, "/usr/local/lib/node/libraries" 
-]
+[ "/home/ryan/.node_libraries" ]
 ----------------------------------------
 
-That is, when +require("mjsunit")+ is called Node looks for 
+That is, when +require("assert")+ is called Node looks for 
 
-  1. +"/home/ryan/.node_libraries/mjsunit.js"+ 
-
-  2. +"/home/ryan/.node_libraries/mjsunit.node"+ 
-
-  3. +"/home/ryan/.node_libraries/mjsunit/index.js"+ 
-
-  4. +"/home/ryan/.node_libraries/mjsunit/index.node"+ 
-
-  5. +"/usr/local/lib/node/libraries/mjsunit.js"+ 
-
-  6. +"/usr/local/lib/node/libraries/mjsunit.node"+ 
-
-  7. +"/usr/local/lib/node/libraries/mjsunit/index.js"+ 
-
-  8. +"/usr/local/lib/node/libraries/mjsunit/index.node"+ 
+  1. +"/home/ryan/.node_libraries/assert.js"+
+  2. +"/home/ryan/.node_libraries/assert.node"+
+  3. +"/home/ryan/.node_libraries/assert/index.js"+
+  4. +"/home/ryan/.node_libraries/assert/index.node"+
 
 interrupting once a file is found. Files ending in +".node"+ are binary Addon
 Modules; see the section below about addons. +"index.js"+ allows one to
diff --git a/lib/assert.js b/lib/assert.js
index 0a8c19715e..6dc06213cc 100644
--- a/lib/assert.js
+++ b/lib/assert.js
@@ -6,7 +6,7 @@
 // Copyright (c) 2009 Thomas Robinson <280north.com>
 //
 // Permission is hereby granted, free of charge, to any person obtaining a copy
-// of this software and associated documentation files (the “Software”), to
+// of this software and associated documentation files (the 'Software'), to
 // deal in the Software without restriction, including without limitation the
 // rights to use, copy, modify, merge, publish, distribute, sublicense, and/or
 // sell copies of the Software, and to permit persons to whom the Software is
@@ -15,7 +15,7 @@
 // The above copyright notice and this permission notice shall be included in
 // all copies or substantial portions of the Software.
 //
-// THE SOFTWARE IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+// THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
 // IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
 // FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
 // AUTHORS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN
@@ -23,7 +23,7 @@
 // WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
 
 // UTILITY
-var inherits = require('./sys').inherits;
+var inherits = require('sys').inherits;
 var pSlice = Array.prototype.slice;
 
 // 1. The assert module provides functions that throw
diff --git a/lib/fs.js b/lib/fs.js
index f9eae9bd39..63fb166501 100644
--- a/lib/fs.js
+++ b/lib/fs.js
@@ -1,4 +1,4 @@
-var sys = require('./sys'),
+var sys = require('sys'),
     events = require('events');
 
 var fs = exports;
diff --git a/lib/http.js b/lib/http.js
index 6b7d1f691c..624e4573df 100644
--- a/lib/http.js
+++ b/lib/http.js
@@ -1,4 +1,4 @@
-var sys = require('./sys');
+var sys = require('sys');
 var events = require('events');
 
 var CRLF = "\r\n";
diff --git a/src/node.cc b/src/node.cc
index 8cb5e64ed8..b5736c6803 100644
--- a/src/node.cc
+++ b/src/node.cc
@@ -1156,6 +1156,26 @@ static void Load(int argc, char *argv[]) {
   HTTPConnection::Initialize(http);             // http.cc
 
 
+  Local<Object> natives = Object::New();
+  process->Set(String::New("natives"), natives);
+  // Explicitly define native sources.
+  natives->Set(String::New("assert"),       String::New(native_assert));
+  natives->Set(String::New("dns"),          String::New(native_dns));
+  natives->Set(String::New("file"),         String::New(native_file));
+  natives->Set(String::New("fs"),           String::New(native_fs));
+  natives->Set(String::New("http"),         String::New(native_http));
+  natives->Set(String::New("ini"),          String::New(native_ini));
+  natives->Set(String::New("mjsunit"),      String::New(native_mjsunit));
+  natives->Set(String::New("multipart"),    String::New(native_multipart));
+  natives->Set(String::New("posix"),        String::New(native_posix));
+  natives->Set(String::New("querystring"),  String::New(native_querystring));
+  natives->Set(String::New("repl"),         String::New(native_repl));
+  natives->Set(String::New("sys"),          String::New(native_sys));
+  natives->Set(String::New("tcp"),          String::New(native_tcp));
+  natives->Set(String::New("uri"),          String::New(native_uri));
+  natives->Set(String::New("url"),          String::New(native_url));
+  natives->Set(String::New("utils"),        String::New(native_utils));
+
 
   // Compile, execute the src/node.js file. (Which was included as static C
   // string in node_natives.h. 'natve_node' is the string containing that
@@ -1262,7 +1282,6 @@ static void ParseArgs(int *argc, char **argv) {
       exit(0);
     } else if (strcmp(arg, "--vars") == 0) {
       printf("NODE_PREFIX: %s\n", NODE_PREFIX);
-      printf("NODE_LIBRARIES_PREFIX: %s/%s\n", NODE_PREFIX, "lib/node/libraries");
       printf("NODE_CFLAGS: %s\n", NODE_CFLAGS);
       exit(0);
     } else if (strcmp(arg, "--help") == 0 || strcmp(arg, "-h") == 0) {
diff --git a/src/node.js b/src/node.js
index 0d08a70009..858cd91a94 100644
--- a/src/node.js
+++ b/src/node.js
@@ -461,8 +461,7 @@ function existsSync (path) {
 
 
 
-process.paths = [ path.join(process.installPrefix, "lib/node/libraries")
-               ];
+process.paths = [];
 
 if (process.env["HOME"]) {
   process.paths.unshift(path.join(process.env["HOME"], ".node_libraries"));
@@ -553,6 +552,8 @@ function resolveModulePath(request, parent) {
   var id, paths;
   if (request.charAt(0) == "." && (request.charAt(1) == "/" || request.charAt(1) == ".")) {
     // Relative request
+    debug("RELATIVE: requested:" + request + " set ID to: "+id+" from "+parent.id);
+
     var exts = ['js', 'node'], ext;
     for (ext in extensionCache) {
       exts.push(ext.slice(1));
@@ -561,7 +562,6 @@ function resolveModulePath(request, parent) {
     var parentIdPath = path.dirname(parent.id +
       (path.basename(parent.filename).match(new RegExp('^index\\.(' + exts.join('|') + ')$')) ? "/" : ""));
     id = path.join(parentIdPath, request);
-    // debug("RELATIVE: requested:"+request+" set ID to: "+id+" from "+parent.id+"("+parentIdPath+")");
     paths = [path.dirname(parent.filename)];
   } else {
     id = request;
@@ -573,56 +573,61 @@ function resolveModulePath(request, parent) {
 }
 
 
-function loadModuleSync (request, parent) {
-  var resolvedModule = resolveModulePath(request, parent);
-  var id = resolvedModule[0];
-  var paths = resolvedModule[1];
+function loadModule (request, parent, callback) {
+  var resolvedModule = resolveModulePath(request, parent),
+      id = resolvedModule[0],
+      paths = resolvedModule[1];
 
-  debug("loadModuleSync REQUEST  " + (request) + " parent: " + parent.id);
+  debug("loadModule REQUEST  " + (request) + " parent: " + parent.id);
 
   var cachedModule = internalModuleCache[id] || parent.moduleCache[id];
 
-  if (cachedModule) {
-    debug("found  " + JSON.stringify(id) + " in cache");
-    return cachedModule.exports;
-  } else {
-    debug("looking for " + JSON.stringify(id) + " in " + JSON.stringify(paths));
-    var filename = findModulePath(request, paths);
-    if (!filename) {
-      throw new Error("Cannot find module '" + request + "'");
-    } else {
-      var module = new Module(id, parent);
-      module.loadSync(filename);
-      return module.exports;
+  if (!cachedModule) {
+    // Try to compile from native modules
+    if (process.natives[id]) {
+      debug('load native module ' + id);
+      cachedModule = new Module(id);
+      var e = cachedModule._compile(process.natives[id], id);
+      if (e) throw e;
+      internalModuleCache[id] = cachedModule;
     }
   }
-}
-
-
-function loadModule (request, parent, callback) {
-  var
-    resolvedModule = resolveModulePath(request, parent),
-    id = resolvedModule[0],
-    paths = resolvedModule[1];
 
-  debug("loadModule REQUEST  " + (request) + " parent: " + parent.id);
-
-  var cachedModule = internalModuleCache[id] || parent.moduleCache[id];
   if (cachedModule) {
     debug("found  " + JSON.stringify(id) + " in cache");
-    if (callback) callback(null, cachedModule.exports);
-   } else {
-    debug("looking for " + JSON.stringify(id) + " in " + JSON.stringify(paths));
+    if (callback) {
+      callback(null, cachedModule.exports);
+    } else {
+      return cachedModule.exports;
+    }
+
+  } else {
     // Not in cache
-    findModulePath(request, paths, function (filename) {
+    debug("looking for " + JSON.stringify(id) + " in " + JSON.stringify(paths));
+
+    if (!callback) {
+      // sync
+      var filename = findModulePath(request, paths);
       if (!filename) {
-        var err = new Error("Cannot find module '" + request + "'");
-        if (callback) callback(err);
+        throw new Error("Cannot find module '" + request + "'");
       } else {
         var module = new Module(id, parent);
-        module.load(filename, callback);
+        module.loadSync(filename);
+        return module.exports;
       }
-    });
+
+    } else {
+      // async
+      findModulePath(request, paths, function (filename) {
+        if (!filename) {
+          var err = new Error("Cannot find module '" + request + "'");
+          callback(err);
+        } else {
+          var module = new Module(id, parent);
+          module.load(filename, callback);
+        }
+      });
+    }
   }
 };
 
@@ -713,7 +718,8 @@ function cat (id, callback) {
 }
 
 
-Module.prototype._loadContent = function (content, filename) {
+// Returns exception if any
+Module.prototype._compile = function (content, filename) {
   var self = this;
   // remove shebang
   content = content.replace(/^\#\!.*/, '');
@@ -729,7 +735,7 @@ Module.prototype._loadContent = function (content, filename) {
   }
 
   function require (path) {
-    return loadModuleSync(path, self);
+    return loadModule(path, self);
   }
 
   require.paths = process.paths;
@@ -765,7 +771,7 @@ Module.prototype._loadScriptSync = function (filename) {
   // remove shebang
   content = content.replace(/^\#\!.*/, '');
 
-  var e = this._loadContent(content, filename);
+  var e = this._compile(content, filename);
   if (e) {
     throw e;
   } else {
@@ -781,7 +787,7 @@ Module.prototype._loadScript = function (filename, callback) {
     if (err) {
       if (callback) callback(err);
     } else {
-      var e = self._loadContent(content, filename);
+      var e = self._compile(content, filename);
       if (e) {
         if (callback) callback(e);
       } else {
diff --git a/tools/js2c.py b/tools/js2c.py
index fb38ece99b..64e5c2b625 100755
--- a/tools/js2c.py
+++ b/tools/js2c.py
@@ -35,11 +35,22 @@ import os, re, sys, string
 import jsmin
 
 
-def ToCArray(lines):
+def ToCArray(filename, lines):
   result = []
+  row = 1
+  col = 0
   for chr in lines:
+    col += 1
+    if chr == "\n" or chr == "\r":
+      row += 1
+      col = 0
+
     value = ord(chr)
-    assert value < 128
+
+    if value > 128:
+      print 'non-ascii value ' + filename + ':' + str(row) + ':' + str(col)
+      sys.exit(1);
+
     result.append(str(value))
   result.append("0")
   return ", ".join(result)
@@ -231,6 +242,7 @@ def JS2C(source, target):
   # Locate the macros file name.
   consts = {}
   macros = {}
+
   for s in source:
     if 'macros.py' == (os.path.split(str(s))[1]):
       (consts, macros) = ReadMacros(ReadLines(str(s)))
@@ -244,10 +256,11 @@ def JS2C(source, target):
     delay = str(s).endswith('-delay.js')
     lines = ReadFile(str(s))
     do_jsmin = lines.find('// jsminify this file, js2c: jsmin') != -1
+
     lines = ExpandConstants(lines, consts)
     lines = ExpandMacros(lines, macros)
     lines = CompressScript(lines, do_jsmin)
-    data = ToCArray(lines)
+    data = ToCArray(s, lines)
     id = (os.path.split(str(s))[1])[:-3]
     if delay: id = id[:-6]
     if delay:
diff --git a/wscript b/wscript
index 6310451ec9..6a8392b512 100644
--- a/wscript
+++ b/wscript
@@ -344,11 +344,11 @@ def build(bld):
     js2c.JS2C(source, targets)
 
   native_cc = bld.new_task_gen(
-    source='src/node.js',
+    source='src/node.js ' + bld.path.ant_glob('lib/*.js'),
     target="src/node_natives.h",
-    before="cxx"
+    before="cxx",
+    install_path=None
   )
-  native_cc.install_path = None
 
   # Add the rule /after/ cloning the debug
   # This is a work around for an error had in python 2.4.3 (I'll paste the
@@ -458,8 +458,6 @@ def build(bld):
   bld.install_files('${PREFIX}/lib/node/wafadmin', 'tools/wafadmin/*.py')
   bld.install_files('${PREFIX}/lib/node/wafadmin/Tools', 'tools/wafadmin/Tools/*.py')
 
-  bld.install_files('${PREFIX}/lib/node/libraries/', 'lib/*.js')
-
 def shutdown():
   Options.options.debug
   # HACK to get binding.node out of build directory.