diff --git a/README b/README
index 435b31ba..3a4e22f6 100644
--- a/README
+++ b/README
@@ -166,7 +166,7 @@ templates/index.php
 {include header.tpl}
 {* This is a template comment *}
 hello, my name is {$Name}.<br>
-{if $Name == "Joe"}
+{if $Name eq "Joe"}
 	I am Joe.<br>
 {else}
 	I am not Joe.<br>
@@ -193,14 +193,17 @@ IF/ELSE LOGIC:
 
 Smarty supports if/else logic like so:
 
-{if $Name == "John"}
+{if $Name eq "John"}
 	I am John!
 {else}
 	I am not John.
 {/if}
 
 A few important things to know:
-* arguments to {if ..} are passed "as is" to the php parser.
+* arguments to {if ...} are passed "as is" to the php parser.
+* "eq", "ne","neq", "gt", "lt", "lte", "le", "gte" "ge",
+  "==","!=",">","<","<=",">=" are all valid conditional
+  qualifiers.
 
 SECTIONS:
 
@@ -228,6 +231,8 @@ A few important things to know:
   like so: {$section_name.variable_name}
 * It is OK to mention variables of parent sections
   within nested child sections.
+* nothing in the section will display if the
+  looping array is unset.
   
 Sections can be nested, like so:
 
diff --git a/Smarty.class.php b/Smarty.class.php
index c7cec662..cb912959 100644
--- a/Smarty.class.php
+++ b/Smarty.class.php
@@ -266,6 +266,12 @@ class Smarty
 		if(!($template_contents = $this->_read_file($filepath)))
 			return false;
 
+		if(preg_match("/^(.+)\/([^\/]+)$/",$compilepath,$match))
+		{
+			$ctpl_file_dir = $match[1];			
+			$ctpl_file_name = $match[2];
+		}
+
 		if(!$this->allow_php)
 		{
 			// escape php tags in templates
@@ -307,7 +313,7 @@ class Smarty
 		$search[] =			"/^".$ld."\s*\/if\s*".$rd."$/i"; // replace /if tags
 		$replace[] =		"<?php endif; ?>";
 		$search[] =			"/^".$ld."\s*include\s*\"?([^\s\}]+)\"?".$rd."$/i";		// replace include tags
-		$replace[] =		"<?php include(\"\\1\"); ?>";
+		$replace[] =		"<?php include(\"".$ctpl_file_dir."/\\1\"); ?>";
 		$search[] =			"/^".$ld."\s*section\s+name\s*=\s*\"?([\w\d]+)\"?\s+\\\$([^\}\s]+)\s*".$rd."$/i"; // replace section tags
 		$replace[] =		"<?php for(\$\\1_secvar=0; \$\\1_secvar<count(\$\\2); \$\\1_secvar++): ?>";
 		$search[] =			"/^".$ld."\s*\/section\s*".$rd."$/i"; // replace /section tags
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index c7cec662..cb912959 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -266,6 +266,12 @@ class Smarty
 		if(!($template_contents = $this->_read_file($filepath)))
 			return false;
 
+		if(preg_match("/^(.+)\/([^\/]+)$/",$compilepath,$match))
+		{
+			$ctpl_file_dir = $match[1];			
+			$ctpl_file_name = $match[2];
+		}
+
 		if(!$this->allow_php)
 		{
 			// escape php tags in templates
@@ -307,7 +313,7 @@ class Smarty
 		$search[] =			"/^".$ld."\s*\/if\s*".$rd."$/i"; // replace /if tags
 		$replace[] =		"<?php endif; ?>";
 		$search[] =			"/^".$ld."\s*include\s*\"?([^\s\}]+)\"?".$rd."$/i";		// replace include tags
-		$replace[] =		"<?php include(\"\\1\"); ?>";
+		$replace[] =		"<?php include(\"".$ctpl_file_dir."/\\1\"); ?>";
 		$search[] =			"/^".$ld."\s*section\s+name\s*=\s*\"?([\w\d]+)\"?\s+\\\$([^\}\s]+)\s*".$rd."$/i"; // replace section tags
 		$replace[] =		"<?php for(\$\\1_secvar=0; \$\\1_secvar<count(\$\\2); \$\\1_secvar++): ?>";
 		$search[] =			"/^".$ld."\s*\/section\s*".$rd."$/i"; // replace /section tags