diff --git a/NEWS b/NEWS
index 43381bab..a2a8a885 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,6 @@
+Version 2.5.0-RC1 (March 5, 2003)
+---------------------------------
+
     - fixed notice in popup function (Nagger, Monte)
     - fix "once" var compiling for include_php (Monte)
     - added nl2br modifier to distribution (Monte)
@@ -26,8 +29,6 @@
       Monte)
     - fix cache groups with compile_id set (Monte)
     - add support for merging appended vars (messju, Monte)
-    - change embedded variable logic to only recognize $foo and
-      $foo[0][bar] and $smarty.foo.bar syntax (Monte)
     - allow null as function attribute value
       (André Rabold, Monte)
     - support $foo->bar[index] syntax (Monte)
diff --git a/README b/README
index 47145209..e9ccf154 100644
--- a/README
+++ b/README
@@ -2,7 +2,7 @@ NAME:
 
     Smarty - the PHP compiling template engine
 
-VERSION: 2.4.2
+VERSION: 2.5.0-RC1
 
 AUTHORS:
     
diff --git a/RELEASE_NOTES b/RELEASE_NOTES
index 75ee5cf9..b31cf3c1 100644
--- a/RELEASE_NOTES
+++ b/RELEASE_NOTES
@@ -1,3 +1,17 @@
+2.5.0-RC1
+---------
+
+Release Candidate 1. All $smarty vars can now by dynamic, such as
+$smarty.get.$foo. A new class function get_function_object() gets you a
+reference to an assigned object, useful within your own custom functions.
+append() can now merge as well as append with a third optional attribute. A new
+class function get_config_vars() was added, and get_template_vars() can now be
+used to get individual vars. Full variable syntax is now supported within
+double quotes via a backtick (`) syntax. Files created by smarty are now
+written to a tmp file then renamed to avoid file lock retention. html_radios,
+html_checkboxes, html_table, html_image, nl2br functions added, see the NEWS
+file for full details.
+
 2.4.2
 -----
 Another point release. Added support for dynamic object reference syntax
diff --git a/libs/Config_File.class.php b/libs/Config_File.class.php
index 2514efaa..d84e52a1 100644
--- a/libs/Config_File.class.php
+++ b/libs/Config_File.class.php
@@ -30,7 +30,7 @@
  * http://www.phpinsider.com
  *
  * @link http://www.phpinsider.com
- * @version 2.4.2
+ * @version 2.5.0-RC1
  * @copyright Copyright: 2001,2002 ispi of Lincoln, Inc.
  * @author Andrei Zmievski <andrei@php.net>
  * @access public
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index a1a7950b..9eddbfc2 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -39,7 +39,7 @@
  * @author Monte Ohrt <monte@ispi.net>
  * @author Andrei Zmievski <andrei@php.net>
  * @package Smarty
- * @version 2.4.2
+ * @version 2.5.0-RC1
  */
 
 /**
@@ -460,7 +460,7 @@ class Smarty
      *
      * @var string
      */
-    var $_version              = '2.4.2';
+    var $_version              = '2.5.0-RC1';
 
     /**
      * current template inclusion depth
diff --git a/libs/Smarty_Compiler.class.php b/libs/Smarty_Compiler.class.php
index d0dcb81f..d50024c3 100644
--- a/libs/Smarty_Compiler.class.php
+++ b/libs/Smarty_Compiler.class.php
@@ -33,7 +33,7 @@
  * @link http://www.phpinsider.com/
  * @author Monte Ohrt <monte@ispi.net>
  * @author Andrei Zmievski <andrei@php.net>
- * @version 2.4.2
+ * @version 2.5.0-RC1
  * @copyright 2001,2002 ispi of Lincoln, Inc.
  * @package Smarty
  */