diff --git a/CHANGES.md b/CHANGES.md
index f843e74..c3e69da 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -2,6 +2,8 @@
 
 ## 0.3.0 (??-??-????)
 
+* Improved whitespace handling.
+* Make IMPLICIT ITERATORS a first class feature.
 * Fix Rhino compat.
 * CommonJS packaging is no longer a special case.
 * DRY Rakefile.
diff --git a/README.md b/README.md
index bfda4db..7434356 100644
--- a/README.md
+++ b/README.md
@@ -8,16 +8,15 @@ plugins, see <http://mustache.github.com/>.
 
 ## Where to Use?
 
-You can use mustache.js rendering stuff in various scenarios. E.g. you can render
-templates in your browser, or rendering server-side stuff with [node.js][node.js],
-use it for rendering stuff in [CouchDB][couchdb]'s views.
+You can use mustache.js rendering stuff in various scenarios. E.g. you can
+render templates in your browser, or rendering server-side stuff with
+[node.js][node.js], use it for rendering stuff in [CouchDB][couchdb]’s views.
 
 
 ## Who Uses Mustache?
 
 An updated list is kept on the Github wiki. Add yourself, if you use
-mustache.js:
-<http://wiki.github.com/janl/mustache.js/beard-competition>
+mustache.js: <http://wiki.github.com/janl/mustache.js/beard-competition>
 
 
 ## Usage
@@ -35,16 +34,16 @@ A quick example how to use mustache.js:
 
     var html = Mustache.to_html(template, view);
 
-`template` is a simple string with mustache tags and `view` is a JavaScript object containing the.
+`template` is a simple string with mustache tags and `view` is a JavaScript
+object containing the data and any code to render the template.
 
 
 ## Template Tag Types
 
 There are several types of tags currently implemented in mustache.js.
 
-For a language-agnostic overview of Mustache's template syntax, see
-the `mustache(5)` manpage or
-<http://mustache.github.com/mustache.5.html>.
+For a language-agnostic overview of Mustache’s template syntax, see the
+`mustache(5)` manpage or <http://mustache.github.com/mustache.5.html>.
 
 ### Simple Tags
 
@@ -57,10 +56,10 @@ Tags are always surrounded by mustaches like this `{{foobar}}`.
 
 ### Conditional Sections
 
-Conditional sections begin with `{{#condition}}` and end with `{{/condition}}`. When
-`condition` evaluates to true, the section is rendered, otherwise the hole block will
-output nothing at all. `condition` may be a function returning true/false or a simple
-boolean.
+Conditional sections begin with `{{#condition}}` and end with
+`{{/condition}}`. When `condition` evaluates to true, the section is rendered,
+otherwise the hole block will output nothing at all. `condition` may be a
+function returning true/false or a simple boolean.
 
     var view = {condition: function() {
       // [...your code goes here...]
@@ -76,8 +75,9 @@ boolean.
 
 Enumerable Sections use the same syntax as condition sections do.
 `{{#shopping_items}}` and `{{/shopping_items}}`. Actually the view decides how
-mustache.js renders the section. If the view returns an array, it will iterator over
-the items. Use `{{.}}` to access the current item inside the enumeration section.
+mustache.js renders the section. If the view returns an array, it will
+iterator over the items. Use `{{.}}` to access the current item inside the
+enumeration section.
 
     var view = {name: "Joe's shopping card",
                 items: ["bananas", "apples"]}
@@ -90,8 +90,8 @@ the items. Use `{{.}}` to access the current item inside the enumeration section
 
 ### Higher Order Sections
 
-If a section key returns a function, it will be called and passed both the unrendered
-block of text and a renderer convenience function.
+If a section key returns a function, it will be called and passed both the
+unrendered block of text and a renderer convenience function.
 
 Given this JS:
 
@@ -110,8 +110,8 @@ We'll get this output:
 
     <b>Hi Tater.</b>
 
-As you can see, we're pre-processing the text in the block. This can be used to
-implement caching, filters (like syntax highlighting), etc.
+As you can see, we’re pre-processing the text in the block. This can be used
+to implement caching, filters (like syntax highlighting), etc.
 
 You can use `this.name` to access the attribute `name` from your view.
 
@@ -151,8 +151,8 @@ Here is the result:
 
 ### Inverted Sections
 
-An inverted section opens with `{{^section}}` instead of `{{#section}}` and uses a
-boolean negative to evaluate. Empty arrays are considered falsy.
+An inverted section opens with `{{^section}}` instead of `{{#section}}` and
+uses a boolean negative to evaluate. Empty arrays are considered falsy.
 
 View:
 
@@ -172,8 +172,8 @@ Result:
 
 ### View Partials
 
-mustache.js supports a quite powerful but yet simple view partial mechanism. Use the
-following syntax for partials: `{{>partial_name}}`
+mustache.js supports a quite powerful but yet simple view partial mechanism.
+Use the following syntax for partials: `{{>partial_name}}`
 
     var view = {
       name: "Joe",
@@ -194,24 +194,25 @@ following syntax for partials: `{{>partial_name}}`
     output will be:
     Welcome, Joe! You just won $1000 (which is $600 after tax)
 
-You invoke a partial with `{{>winnings}}`. Invoking the partial `winnings` will tell
-mustache.js to look for a object in the context's property `winnings`. It will then
-use that object as the context for the template found in `partials` for `winnings`.
+You invoke a partial with `{{>winnings}}`. Invoking the partial `winnings`
+will tell mustache.js to look for a object in the context's property
+`winnings`. It will then use that object as the context for the template found
+in `partials` for `winnings`.
 
 
 ## Escaping
 
-mustache.js does escape all values when using the standard double mustache syntax.
-Characters which will be escaped: `& \ " < >`. To disable escaping, simply use
-tripple mustaches like `{{{unescaped_variable}}}`.
+mustache.js does escape all values when using the standard double mustache
+syntax. Characters which will be escaped: `& \ " < >`. To disable escaping,
+simply use tripple mustaches like `{{{unescaped_variable}}}`.
 
 Example: Using `{{variable}}` inside a template for `5 > 2` will result in `5 &gt; 2`, where as the usage of `{{{variable}}}` will result in `5 > 2`.
 
 
 ## Streaming
 
-To stream template results out of mustache.js, you can pass an optional `send()`
-callback to the `to_html()` call:
+To stream template results out of mustache.js, you can pass an optional
+`send()` callback to the `to_html()` call:
 
     Mustache.to_html(template, view, partials, function(line) {
       print(line);
@@ -220,7 +221,8 @@ callback to the `to_html()` call:
 
 ## Pragmas
 
-Pragma tags let you alter the behaviour of mustache.js. They have the format of
+Pragma tags let you alter the behaviour of mustache.js. They have the format
+of
 
     {{%PRAGMANAME}}
 
@@ -231,9 +233,9 @@ and they accept options:
 
 ### IMPLICIT-ITERATOR
 
-When using a block to iterate over an enumerable (Array), mustache.js expects an
-objects as enumerable items. The implicit iterator pragma enables optional behaviour
-of allowing literals as enumerable items. Consider this view:
+When using a block to iterate over an enumerable (Array), mustache.js expects
+an objects as enumerable items. The implicit iterator pragma enables optional
+behaviour of allowing literals as enumerable items. Consider this view:
 
     var view = {
       foo: [1, 2, 3, 4, 5, "french"]
@@ -246,14 +248,23 @@ The following template can iterate over the member `foo`:
       {{.}}
     {{/foo}}
 
-If you don't like the dot in there, the pragma accepts an option to set your own
-iteration marker:
+If you don't like the dot in there, the pragma accepts an option to set your
+own iteration marker:
 
     {{%IMPLICIT-ITERATOR iterator=bob}}
     {{#foo}}
       {{bob}}
     {{/foo}}
 
+## FaQ
+
+### Why doesn’t Mustache allow dot notation like `{{variable.member}}`?
+
+The reason is given in the [mustache.rb
+bugtracker](http://github.com/defunkt/mustache/issues/issue/6).
+
+Mustache implementations strive to be template-compatible.
+
 
 ## More Examples and Documentation
 
diff --git a/examples/array_of_partials_implicit_partial.html b/examples/array_of_partials_implicit_partial.html
index 11537e9..1af6d68 100644
--- a/examples/array_of_partials_implicit_partial.html
+++ b/examples/array_of_partials_implicit_partial.html
@@ -1,5 +1,4 @@
 Here is some stuff!
-{{%IMPLICIT-ITERATOR}}
 {{#numbers}}
 {{>partial}}
 {{/numbers}}
diff --git a/examples/array_of_strings.html b/examples/array_of_strings.html
index ab058c4..2898705 100644
--- a/examples/array_of_strings.html
+++ b/examples/array_of_strings.html
@@ -1,2 +1 @@
-{{%IMPLICIT-ITERATOR}}
-{{#array_of_strings}} {{.}} {{/array_of_strings}}
\ No newline at end of file
+{{#array_of_strings}}{{.}} {{/array_of_strings}}
\ No newline at end of file
diff --git a/examples/array_of_strings_options.html b/examples/array_of_strings_options.html
index 87fbf5e..6b28278 100644
--- a/examples/array_of_strings_options.html
+++ b/examples/array_of_strings_options.html
@@ -1,2 +1,2 @@
 {{%IMPLICIT-ITERATOR iterator=rob}}
-{{#array_of_strings_options}} {{rob}} {{/array_of_strings_options}}
\ No newline at end of file
+{{#array_of_strings_options}}{{rob}} {{/array_of_strings_options}}
\ No newline at end of file
diff --git a/examples/array_partial.2.html b/examples/array_partial.2.html
index 80d1d09..235dd5f 100644
--- a/examples/array_partial.2.html
+++ b/examples/array_partial.2.html
@@ -1,6 +1,4 @@
 Here's a non-sense array of values
-
-{{%IMPLICIT-ITERATOR}}
 {{#array}}
-	{{.}}
+  {{.}}
 {{/array}}
\ No newline at end of file
diff --git a/examples/array_partial.txt b/examples/array_partial.txt
index a604ac2..fd5f48e 100644
--- a/examples/array_partial.txt
+++ b/examples/array_partial.txt
@@ -1,8 +1,6 @@
 Here's a non-sense array of values
-
-
-1
-2
-3
-4
+  1
+  2
+  3
+  4
 
diff --git a/examples/complex.html b/examples/complex.html
index e7ca1b5..23bec3c 100644
--- a/examples/complex.html
+++ b/examples/complex.html
@@ -2,12 +2,12 @@
 {{#list}}
   <ul>
   {{#item}}
-    {{#current}}
-      <li><strong>{{name}}</strong></li>
-    {{/current}}
-    {{#link}}
-      <li><a href="{{url}}">{{name}}</a></li>
-    {{/link}}
+  {{#current}}
+  <li><strong>{{name}}</strong></li>
+  {{/current}}
+  {{#link}}
+  <li><a href="{{url}}">{{name}}</a></li>
+  {{/link}}
   {{/item}}
   </ul>
 {{/list}}
diff --git a/examples/complex.txt b/examples/complex.txt
index eb78d45..b51ca10 100644
--- a/examples/complex.txt
+++ b/examples/complex.txt
@@ -1,6 +1,6 @@
 <h1>Colors</h1>
-<ul>
-  <li><strong>red</strong></li>
-    <li><a href="#Green">green</a></li>
-    <li><a href="#Blue">blue</a></li>
-    </ul>
+  <ul>
+      <li><strong>red</strong></li>
+      <li><a href="#Green">green</a></li>
+      <li><a href="#Blue">blue</a></li>
+  </ul>
diff --git a/examples/partial_recursion.2.html b/examples/partial_recursion.2.html
index c002d68..457d2a0 100644
--- a/examples/partial_recursion.2.html
+++ b/examples/partial_recursion.2.html
@@ -1,4 +1,4 @@
 {{name}}
 {{#children}}
-  {{>partial}}
+{{>partial}}
 {{/children}}
\ No newline at end of file
diff --git a/examples/partial_recursion.html b/examples/partial_recursion.html
index 8d67c38..d965a6a 100644
--- a/examples/partial_recursion.html
+++ b/examples/partial_recursion.html
@@ -1,4 +1,4 @@
 {{name}}
 {{#kids}}
-  {{>partial}}
+{{>partial}}
 {{/kids}}
\ No newline at end of file
diff --git a/examples/recursion_with_same_names.txt b/examples/recursion_with_same_names.txt
index 0f3e1bc..c23bb65 100644
--- a/examples/recursion_with_same_names.txt
+++ b/examples/recursion_with_same_names.txt
@@ -1,6 +1,6 @@
 name
 desc
-t1
+  t1
   0
-t2
+  t2
   1
diff --git a/examples/reuse_of_enumerables.txt b/examples/reuse_of_enumerables.txt
index c6d5170..6d05d96 100644
--- a/examples/reuse_of_enumerables.txt
+++ b/examples/reuse_of_enumerables.txt
@@ -1,8 +1,8 @@
-t1
+  t1
   0
-t2
+  t2
   1
-t1
+  t1
   0
-t2
+  t2
   1
diff --git a/examples/section_as_context.html b/examples/section_as_context.html
index 6a39a43..59990f6 100644
--- a/examples/section_as_context.html
+++ b/examples/section_as_context.html
@@ -3,7 +3,7 @@
   <p>{{description}}</p>
   <ul>
     {{#a_list}}
-      <li>{{label}}</li>
+    <li>{{label}}</li>
     {{/a_list}}
   </ul>
 {{/a_object}}
diff --git a/examples/section_as_context.txt b/examples/section_as_context.txt
index 55d4179..53ee336 100644
--- a/examples/section_as_context.txt
+++ b/examples/section_as_context.txt
@@ -1,6 +1,6 @@
-<h1>this is an object</h1>
+  <h1>this is an object</h1>
   <p>one of its attributes is a list</p>
   <ul>
-    <li>listitem1</li>
-    <li>listitem2</li>
+        <li>listitem1</li>
+        <li>listitem2</li>
     </ul>
diff --git a/mustache.js b/mustache.js
index 09807c3..55df52a 100644
--- a/mustache.js
+++ b/mustache.js
@@ -85,7 +85,7 @@ var Mustache = function() {
     */
     render_partial: function(name, context, partials) {
       name = this.trim(name);
-      if(!partials || !partials[name]) {
+      if(!partials || partials[name] === undefined) {
         throw({message: "unknown_partial '" + name + "'"});
       }
       if(typeof(context[name]) != "object") {
@@ -105,7 +105,7 @@ var Mustache = function() {
       var that = this;
       // CSW - Added "+?" so it finds the tighest bound, not the widest
       var regex = new RegExp(this.otag + "(\\^|\\#)\\s*((.+?)(\\(.*\\))?)\\s*" + this.ctag +
-              "\\s*([\\s\\S]+?)" + this.otag + "\\/\\s*\\3\\s*" + this.ctag +
+              "\n*([\\s\\S]+?)" + this.otag + "\\/\\s*\\3\\s*" + this.ctag +
               "\\s*", "mg");
 
       // for each {{#foo}}{{/foo}} section do...
@@ -276,8 +276,11 @@ var Mustache = function() {
     create_context: function(_context) {
       if(this.is_object(_context)) {
         return _context;
-      } else if(this.pragmas["IMPLICIT-ITERATOR"]) {
-        var iterator = this.pragmas["IMPLICIT-ITERATOR"].iterator || ".";
+      } else {
+        var iterator = ".";
+        if(this.pragmas["IMPLICIT-ITERATOR"]) {
+          iterator = this.pragmas["IMPLICIT-ITERATOR"].iterator;
+        }
         var ctx = {};
         ctx[iterator] = _context;
         return ctx;