diff --git a/src/main.js b/src/main.js
index 2a740035a5..e37784a063 100644
--- a/src/main.js
+++ b/src/main.js
@@ -7,65 +7,157 @@ Array.prototype.encodeUtf8 = function () {
 }
 
 node.path = new function () {
-    this.join = function () {
-        var joined = "";
-        for (var i = 0; i < arguments.length; i++) {
-            var part = arguments[i].toString();
-            if (i === 0) {
-                part = part.replace(/\/*$/, "/");
-            } else if (i === arguments.length - 1) {
-                part = part.replace(/^\/*/, "");
-            } else {
-                part = part.replace(/^\/*/, "")
-                           .replace(/\/*$/, "/");
-            }
-            joined += part;
-        }
-        return joined;
-    };
+  this.join = function () {
+    var joined = "";
+    for (var i = 0; i < arguments.length; i++) {
+      var part = arguments[i].toString();
+      if (i === 0) {
+        part = part.replace(/\/*$/, "/");
+      } else if (i === arguments.length - 1) {
+        part = part.replace(/^\/*/, "");
+      } else {
+        part = part.replace(/^\/*/, "")
+               .replace(/\/*$/, "/");
+      }
+      joined += part;
+    }
+    return joined;
+  };
 
-    this.dirname = function (path) {
-        var parts = path.split("/");
-        return parts.slice(0, parts.length-1);
-    };
+  this.dirname = function (path) {
+    var parts = path.split("/");
+    return parts.slice(0, parts.length-1);
+  };
 };
 
-function __include (module, path) {
-    var export = module.require(path);
-    for (var i in export) {
-        if (export.hasOwnProperty(i))
-            module[i] = export[i];
+// Namespace for module loading functionality
+(function () {
+  function findScript(base_directory, name, callback) {
+    // in the future this function will be more complicated
+    if (name.charAt(0) == "/")
+      throw "absolute module paths are not yet supported.";
+
+    var filename = node.path.join(base_directory, name) + ".js";
+    File.exists(filename, function (status) {
+      if (status) 
+        callback(filename);
+      else
+        callback(null);
+    });
+  }
+
+  // Constructor for submodule.
+  // "name" is like a path but without .js. e.g. "database/mysql"
+  // "target" is an object into which the submodule will be loaded.
+  function Sub (name, target) {
+    this.name = name;
+    this.target = target;
+
+    //puts("new Sub. name = " + name);
+
+    this.load = function (base_directory, callback) {
+      findScript(base_directory, name, function (filename) {
+        if (filename === null) {
+          stderr.puts("Cannot find a script matching: " + name);
+          process.exit(1);
+        }
+        //puts("load subscript: " + filename);
+        //puts("    target =  " + target);
+        loadScript(filename, target, callback);
+      });
+    };
+
+    this.toString = function () {
+      return "[sub name=" + name + " target=" + target.toString() + "]";
     }
-}
+  }
 
-function __require (path, loading_file) {
+  function Scaffold (source, filename, module) {
+    // wrap the source in a strange function 
+    var source = "function (__filename) {\n" 
+               + "  var on_load;\n"
+               + "  var exports = this;\n"
+               + "  var require = this.__require;\n"
+               + "  var include = this.__include;\n"
+               +    source + "\n"
+               + "  this.__on_load = on_load;\n"
+               + "};"
+               ;
+    // returns the function       
+    var compiled = node.compile(source, filename);
 
-    var filename = path;
-    // relative path
-    // absolute path
-    if (path.slice(0,1) === "/") {
-    } else {
-        //filename = node.path.join(node.path.dirname(loading_file), path);
+    module.__subs = [];
+    module.__require = function (name) {
+      var target = {};
+      module.__subs.push(new Sub(name, target));
+      return target;
     }
-    //stdout.puts("require: " + filename);
-    
-    var source = node.blocking.cat(filename);
+    module.__include = function (name) {
+      module.__subs.push(new Sub(name, module));
+    }
+    // execute the script of interest
+    compiled.apply(module, [filename]);
 
-    // wrap the source in a function 
-    source = "function (__file__, __dir__) { " 
-           + "  var exports = {};"
-           + "  function require (m) { return __require(m, __file__); }"
-           + "  function include (m) { return __include(this, m); }"
-           +    source 
-           + "  return exports;"
-           + "};"
-           ;
-    var create_module = node.blocking.exec(source, filename);
+    // The module still needs to have its submodules loaded.
+    this.module = module;
+    this.subs = module.__subs;
+    this.on_load = module.__on_load;
 
-    // execute the function wrap
-    return create_module(filename, node.path.dirname(filename));
-}
+    /*
+    puts("new Scaffold.");
+    for(var i = 0; i < this.subs.length; i++) {
+      puts("-  subs[" + i.toString() + "] " + this.subs[i].toString());
+    }
+    */
 
-// main script execution.
-__require(ARGV[1], ".");
+    // remove these references so they don't get exported.
+    delete module.__subs;
+    delete module.__on_load;
+    delete module.__require;
+    delete module.__include;
+  }
+
+  function loadScript (filename, target, callback) {
+    File.cat(filename, function (status, content) {
+      if (status != 0) {
+        stderr.puts("Error reading " + filename + ": " + File.strerror(status));
+        process.exit(1);
+      }
+
+      //puts("loadScript: " + filename);
+      
+      var scaffold = new Scaffold(content, filename, target);
+
+      function finish() {
+        if (scaffold.on_load instanceof Function)
+          scaffold.on_load(); 
+        else
+          ; //puts("no on_load for " + filename + " ..  scaffold.on_load = " + scaffold.on_load);
+
+        if (callback instanceof Function)
+          callback();
+        else
+          ; //puts("no loadScript callback for " + filename);
+      }
+
+      // Each time require() or include() was called inside the script 
+      // a key/value was added to scaffold.__subs.
+      // Now we loop though each one and recursively load each.
+      if (scaffold.subs.length == 0) {
+        finish(); 
+      } else {
+        while (scaffold.subs.length > 0) {
+          var sub = scaffold.subs.shift();
+          sub.load(node.path.dirname(filename), function () {
+            //puts("finish sub load: " + sub.name);
+            if(scaffold.subs.length != 0) return;
+            finish();
+          });
+        }
+      }
+    });
+  }
+
+  loadScript(ARGV[1], this);
+})();
 
diff --git a/src/node.cc b/src/node.cc
index 35b4d2bf40..480dd77624 100644
--- a/src/node.cc
+++ b/src/node.cc
@@ -83,59 +83,7 @@ ExecuteString(v8::Handle<v8::String> source,
   return scope.Close(result);
 }
 
-JS_METHOD(cat) 
-{
-  if (args.Length() < 1) return v8::Undefined();
-  HandleScope scope;
-
-  String::Utf8Value filename(args[0]);
-
-  Local<String> error_msg = String::New("File I/O error");
-
-  FILE* file = fopen(*filename, "rb");
-  if (file == NULL) {
-    // Raise error
-    perror("fopen()");
-    return ThrowException(error_msg);
-  }
- 
-  int r = fseek(file, 0, SEEK_END);
-  if (r < 0) {
-    perror("fseek()");
-    return ThrowException(error_msg);
-  }
-
-  int size = ftell(file);
-  if (size < 0) {
-    perror("ftell()");
-    return ThrowException(error_msg);
-  }
-  rewind(file);
-
-  char chars[size+1];
-  chars[size] = '\0';
-  for (int i = 0; i < size;) {
-    int read = fread(&chars[i], 1, size - i, file);
-    if(read <= 0) {
-      perror("read()");
-      return ThrowException(error_msg);
-    }
-    i += read;
-  }
-
-  uint16_t expanded_base[size+1];
-  expanded_base[size] = '\0';
-  for(int i = 0; i < size; i++) 
-    expanded_base[i] = chars[i];
-
-  fclose(file);
-
-  Local<String> contents = String::New(expanded_base, size);
-
-  return scope.Close(contents);
-}
-
-JS_METHOD(exec) 
+JS_METHOD(compile) 
 {
   if (args.Length() < 2) 
     return Undefined();
@@ -233,11 +181,7 @@ main (int argc, char *argv[])
   Local<Object> node = Object::New();
   g->Set(String::New("node"), node);
 
-  Local<Object> blocking = Object::New();
-  node->Set(String::New("blocking"), blocking);
-
-  JS_SET_METHOD(blocking, "exec", exec);
-  JS_SET_METHOD(blocking, "cat", cat);
+  JS_SET_METHOD(node, "compile", compile);
 
   Local<Array> arguments = Array::New(argc);
   for (int i = 0; i < argc; i++) {
diff --git a/test/cat.js b/test/cat.js
index b8cc48909d..9f6aa6182e 100644
--- a/test/cat.js
+++ b/test/cat.js
@@ -1,21 +1,8 @@
 var filename = ARGV[2];
-
-function cat (file) {
-  file.read(100, function (status, data) {
-    if (status == 0 && data) {
-      stdout.write(data.encodeUtf8());
-      cat(file);
-    } else {
-      file.close();
-    }
-  });
-}
-
-var f = new File;
-f.open(filename, "r", function (status) {
-  puts("open!");
-  if (status == 0)
-    cat(f);
+File.cat(filename, function (status, content) {
+  if (status == 0) 
+    puts(content);
   else
-    puts("error?");
-})
+    puts("error");
+});
+puts("hello world");
diff --git a/test/stats.js b/test/stats.js
index 4d670f85be..157a2d029d 100644
--- a/test/stats.js
+++ b/test/stats.js
@@ -8,7 +8,8 @@ File.stat(ARGV[2], function (status, stats) {
     }
 });
 
-
 File.exists(ARGV[2], function (r) {
   puts("file exists: " + r);
 });
+
+
diff --git a/test/test-test.js b/test/test-test.js
index 18a364f416..ac9d89bbf2 100644
--- a/test/test-test.js
+++ b/test/test-test.js
@@ -1,12 +1,9 @@
-node.blocking.print(__file__);
-/*
-if (node.path.dirname(__file__) !== "test-test.js") {
-    throw "wrong __file__ argument";
+puts(__filename);
+include("mjsunit");
+puts(__filename);
+
+function on_load () {
+  assertFalse(false, "testing the test program.");
+  puts("i think everything is okay.");
+  //mjsunit.assertEquals("test-test.js", __file__);
 }
-*/
-
-var mjsunit = require("./mjsunit.js");
-node.blocking.print(__file__);
-
-mjsunit.assertFalse(false, "testing the test program.");
-//mjsunit.assertEquals("test-test.js", __file__);