diff --git a/change_log.txt b/change_log.txt
index 1fc5fc5d..1621b04f 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,3 +1,6 @@
+01/09/2009
+- bugfix on nocache {block} tags in parent templates
+
 01/08/2009
 - bugfix on variable filters. filter/nofilter attributes did not work on output statements
 
diff --git a/libs/sysplugins/smarty_internal_compile_block.php b/libs/sysplugins/smarty_internal_compile_block.php
index 54798ef4..4a4cd542 100644
--- a/libs/sysplugins/smarty_internal_compile_block.php
+++ b/libs/sysplugins/smarty_internal_compile_block.php
@@ -30,7 +30,7 @@ class Smarty_Internal_Compile_Block extends Smarty_Internal_CompileBase {
         $this->_open_tag('block', $save);
         $compiler->template->extract_code = true;
         $compiler->template->extracted_compiled_code = '';
-        $compiler->template->has_code = false;
+        $compiler->has_code = false;
         return true;
     } 
 } 
@@ -66,7 +66,11 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
             $_tpl = $this->smarty->createTemplate('string:' . $this->smarty->block_data[$_name]['source'], null, null, $compiler->template);
             $_tpl->properties['nocache_hash'] = $compiler->template->properties['nocache_hash'];
             $_tpl->template_filepath = $this->smarty->block_data[$_name]['file'];
-            $_tpl->forceNocache = true;
+            if ($compiler->nocache) {
+                $_tpl->forceNocache = 2;
+            } else {
+                $_tpl->forceNocache = 1;
+            } 
             $_tpl->suppressHeader = true;
             $_tpl->suppressFileDependency = true;
             if (strpos($this->smarty->block_data[$_name]['source'], '%%%%SMARTY_PARENT%%%%') !== false) {
@@ -87,7 +91,9 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
             $_output = $compiler->template->extracted_compiled_code;
         } 
         $compiler->template->extracted_compiled_code = $saved_data[1];
-        $compiler->template->extract_code = $saved_data[2];
+        $compiler->template->extract_code = $saved_data[2]; 
+        // $_output content has already nocache code processed
+        $compiler->suppressNocacheProcessing = true;
         return $_output;
     } 
 } 
diff --git a/libs/sysplugins/smarty_internal_compile_function.php b/libs/sysplugins/smarty_internal_compile_function.php
index 7ebf5e47..10735bf8 100644
--- a/libs/sysplugins/smarty_internal_compile_function.php
+++ b/libs/sysplugins/smarty_internal_compile_function.php
@@ -40,8 +40,8 @@ class Smarty_Internal_Compile_Function extends Smarty_Internal_CompileBase {
         $compiler->template->required_plugins = array('compiled' => array(), 'cache' => array());
         $compiler->template->extract_code = true;
         $compiler->template->extracted_compiled_code = '';
-        $compiler->template->has_code = false;
         $compiler->template->has_nocache_code = false;
+        $compiler->has_code = false;
         return true;
     } 
 } 
diff --git a/libs/sysplugins/smarty_internal_smartytemplatecompiler.php b/libs/sysplugins/smarty_internal_smartytemplatecompiler.php
index 04799b0c..2246f035 100644
--- a/libs/sysplugins/smarty_internal_smartytemplatecompiler.php
+++ b/libs/sysplugins/smarty_internal_smartytemplatecompiler.php
@@ -39,10 +39,10 @@ class Smarty_Internal_SmartyTemplateCompiler extends Smarty_Internal_TemplateCom
         // init the lexer/parser to compile the template
         $this->lex = new $this->lexer_class($_content, $this);
         $this->parser = new $this->parser_class($this->lex, $this); 
-        // $this->parser->PrintTrace();
+        if (isset($this->smarty->_parserdebug)) $this->parser->PrintTrace();
         // get tokens from lexer and parse them
         while ($this->lex->yylex() && !$this->abort_and_recompile) {
-            // echo "<pre>Line {$this->lex->line} Parsing  {$this->parser->yyTokenName[$this->lex->token]} Token ".htmlentities($this->lex->value)."</pre>";
+            if (isset($this->smarty->_parserdebug)) echo "<pre>Line {$this->lex->line} Parsing  {$this->parser->yyTokenName[$this->lex->token]} Token ".htmlentities($this->lex->value)."</pre>";
             $this->parser->doParse($this->lex->token, $this->lex->value);
         } 
 
diff --git a/libs/sysplugins/smarty_internal_templatecompilerbase.php b/libs/sysplugins/smarty_internal_templatecompilerbase.php
index 1e927bc7..61374ed3 100644
--- a/libs/sysplugins/smarty_internal_templatecompilerbase.php
+++ b/libs/sysplugins/smarty_internal_templatecompilerbase.php
@@ -12,6 +12,10 @@
 * Main compiler class
 */
 class Smarty_Internal_TemplateCompilerBase {
+    // hash for nocache sections
+    private $nocache_hash = null; 
+    // suppress generation of nocache code
+    public $suppressNocacheProcessing = false;
     // compile tag objects
     static $_tag_objects = array(); 
     // tag stack
@@ -20,8 +24,6 @@ class Smarty_Internal_TemplateCompilerBase {
     public $template = null; 
     // required plugins
     public $required_plugins_call = array(); 
-    // hash for nocache sections
-    private $nocache_hash = null;
 
     /**
     * Initialize compiler
@@ -331,10 +333,10 @@ class Smarty_Internal_TemplateCompilerBase {
     public function processNocacheCode ($content, $is_code)
     { 
         // If the template is not evaluated and we have a nocache section and or a nocache tag
-        if ($is_code) {
+        if ($is_code && !empty($content)) {
             // generate replacement code
-            if ((!$this->template->resource_object->isEvaluated || $this->template->forceNocache) && $this->template->caching &&
-                    ($this->nocache || $this->tag_nocache)) {
+            if ((!$this->template->resource_object->isEvaluated || $this->template->forceNocache) && $this->template->caching && !$this->suppressNocacheProcessing &&
+                    ($this->nocache || $this->tag_nocache || $this->template->forceNocache == 2)) {
                 $this->tag_nocache = false;
                 $this->template->has_nocache_code = true;
                 $_output = str_replace("'", "\'", $content);
@@ -354,6 +356,7 @@ class Smarty_Internal_TemplateCompilerBase {
         } else {
             $_output = $content;
         } 
+        $this->suppressNocacheProcessing = false;
         return $_output;
     } 
     /**