diff --git a/_config.php b/_config.php
index c8e8e6721..fcaf95fd8 100644
--- a/_config.php
+++ b/_config.php
@@ -62,7 +62,7 @@ Authenticator::registerAuthenticator('OpenIDAuthenticator');
 /**
  * Define a default language different than english
  */
-//LocaleAPI::set_locale('ca_AD'); 
+//i18n::set_locale('ca_AD'); 
 
 define('MCE_ROOT', 'jsparty/tiny_mce2/');
 
diff --git a/core/Core.php b/core/Core.php
index 32f97836a..f0092119c 100755
--- a/core/Core.php
+++ b/core/Core.php
@@ -83,6 +83,13 @@ function stripslashes_recursively(&$array) {
 	}
 }
 
+/**
+ * Priorities definition. These constants are used in calls to _t() as an optional argument
+ */
+define('PR_HIGH',100);
+define('PR_MEDIUM',50);
+define('PR_LOW',10);
+
 /**
  * This is the main translator function. Returns the string defined by $class and $entity according to the currently set locale
  *
diff --git a/core/ManifestBuilder.php b/core/ManifestBuilder.php
index 5f91bdd3e..1f1e84cf4 100644
--- a/core/ManifestBuilder.php
+++ b/core/ManifestBuilder.php
@@ -184,6 +184,9 @@ class ManifestBuilder {
 			 
 			// ignore certain directories 
 			if(is_dir("$folder/$item") && in_array($item, self::$ignore_folders)) continue;
+			
+			// i18n: ignore language files (loaded on demand)
+			if($item == 'lang' && is_dir("$folder/$item") && ereg_replace("/[^/]+/\\.\\.","",$folder.'/..') == Director::baseFolder()) continue; 
 			 
 			if(is_dir("$folder/$item")) {
 				// recurse into directories	(if not in $ignore_folders)		
diff --git a/core/SSViewer.php b/core/SSViewer.php
index 44355236d..9f02841e3 100644
--- a/core/SSViewer.php
+++ b/core/SSViewer.php
@@ -154,7 +154,7 @@ class SSViewer extends Object {
 			if(isset($_GET['debug_profile'])) Profiler::mark("SSViewer::process - compile", " for $template");
 			
 			$content = file_get_contents($template);
-			$content = SSViewer::parseTemplateContent($content);
+			$content = SSViewer::parseTemplateContent($content, $template);
 			
 			$fh = fopen($cacheFile,'w');
 			fwrite($fh, $content);
@@ -186,7 +186,7 @@ class SSViewer extends Object {
 		
 		$itemStack = array();
 		$val = "";
-		
+
 		include($cacheFile);
 
 		$output = $val;		
@@ -199,7 +199,7 @@ class SSViewer extends Object {
 		return $output;
 	}
 
-	static function parseTemplateContent($content) {			
+	static function parseTemplateContent($content, $template="") {			
 		while(true) {
 			$oldContent = $content;
 			$content = preg_replace_callback('/<' . '% include +([A-Za-z0-9_]+) +%' . '>/', create_function(
@@ -282,7 +282,8 @@ class SSViewer extends Object {
 		$content = ereg_replace('<' . '% +end_if +%' . '>', '<? }  ?>', $content);
 
 		// i18n
-		$content = ereg_replace('<' . '% +_t\((([^)]|\)[^;])*)\); +%' . '>', '<?= _t(\\1) ?>', $content);
+		ereg('.*[\/](.*)',$template,$path);
+		$content = ereg_replace('<' . '% +_t\((\'([^\']*)\'|"([^"]*)")(([^)]|\)[^;])*)\); +%' . '>', '<?= _t(\''. $path[1] . '.\\2\\3\'\\4) ?>', $content);
 
 		// </base> isnt valid html? !? 
 		$content = ereg_replace('<' . '% +base_tag +%' . '>', '<base href="<?= Director::absoluteBaseURL(); ?>" />', $content);
diff --git a/core/i18n.php b/core/i18n.php
index b3e1aa74f..329a48298 100755
--- a/core/i18n.php
+++ b/core/i18n.php
@@ -6,13 +6,6 @@
  * @author Bernat Foj Capell <bernat@silverstripe.com>
  */
 
-/**
- * Priorities definition. These constants are used in calls to _() as an optional argument
- */
-define('PR_HIGH',100);
-define('PR_MEDIUM',50);
-define('PR_LOW',10);
-
 class i18n extends Controller {
 	
 	/**
@@ -118,6 +111,7 @@ class i18n extends Controller {
 			
 			if (isset($callMap[$class.'--'.$entity])) echo "Warning! Redeclaring entity $entity in file $file<br>";
 
+			if (substr($regs[2],0,1) == '"') $regs[2] = addcslashes($regs[2],'\'');
 			$mst .= '$lang[\'en_US\'][\'' . $class . '\'][\'' . $entity . '\'] = ';
 			if ($regs[5]) {
 				$mst .= "array(\n\t'" . substr($regs[2],1,-1) . "',\n\t" . substr($regs[5],1);
@@ -148,11 +142,11 @@ class i18n extends Controller {
 		static $callMap;
 		$content = file_get_contents($file);
 		$mst = '';
-		while (ereg('_t[[:space:]]*\([[:space:]]*("[^,]*"|\\\'[^,]*\\\')[[:space:]]*,[[:space:]]*("([^"]|\\\")*"|\'([^\']|\\\\\')*\')([[:space:]]*,[[:space:]]*[^,)]*)?([[:space:]]*,[[:space:]]*("([^"]|\\\")*"|\'([^\']|\\\\\')*\'))?[[:space:]]*\)',$content,$regs)) {
+		while (ereg('_t[[:space:]]*\([[:space:]]*("[^"]*"|\\\'[^\']*\\\')[[:space:]]*,[[:space:]]*("([^"]|\\\")*"|\'([^\']|\\\\\')*\')([[:space:]]*,[[:space:]]*[^,)]*)?([[:space:]]*,[[:space:]]*("([^"]|\\\")*"|\'([^\']|\\\\\')*\'))?[[:space:]]*\)',$content,$regs)) {
 
 			$entityParts = explode('.',substr($regs[1],1,-1));
 			$entity = array_pop($entityParts);
-			
+
 			// Entity redeclaration check
 			if (isset($callMap[$index.'--'.$entity])) echo "Warning! Redeclaring entity $entity in file $file<br>";
 
@@ -165,7 +159,7 @@ class i18n extends Controller {
 					$mst .= ",\n\t'" . substr($regs[6],2,-1) . '\''; 
 				}
 				$mst .= "\n);";
-			} else $mst .= '\'' . substr($regs[2],2,-1) . '\';';
+			} else $mst .= '\'' . substr($regs[2],1,-1) . '\';';
 			$mst .= "\n";
 			$content = str_replace($regs[0],"",$content);