diff --git a/lib/haml/exec.rb b/lib/haml/exec.rb
index 42df9cc7..f6e86a6b 100644
--- a/lib/haml/exec.rb
+++ b/lib/haml/exec.rb
@@ -180,6 +180,10 @@ END
                 'Output style. Can be nested (default), compact, compressed, or expanded.') do |name|
           @options[:for_engine][:style] = name.to_sym
         end
+        opts.on('-l', '--line-comments',
+                'Line Comments. Emit comments in the generated CSS indicating the corresponding sass line.') do
+          @options[:for_engine][:line_comments] = true
+        end
       end
 
       def process_result
diff --git a/lib/sass.rb b/lib/sass.rb
index 890c67a1..d87a1b90 100644
--- a/lib/sass.rb
+++ b/lib/sass.rb
@@ -846,12 +846,18 @@ $LOAD_PATH << dir unless $LOAD_PATH.include?(dir)
 #                               Defaults to false in production mode, true otherwise.
 #                               Only has meaning within Ruby on Rails or Merb.
 #
-# [<tt>:template_location</tt>] The directory where Sass templates should be read from.
+# [<tt>:template_location</tt>] A path to the root sass template directory for you application.
+#                               If a hash, :css_location is ignored and this option designates
+#                               both a mapping between input and output directories.
+#                               May also be given a list of 2-element lists, instead of a hash.
 #                               Defaults to <tt>RAILS_ROOT + "/public/stylesheets/sass"</tt>
 #                               or <tt>MERB_ROOT + "/public/stylesheets/sass"</tt>.
 #                               Only has meaning within Ruby on Rails or Merb.
+#                               This will be derived from the :css_location path list if not provided 
+#                               by appending a folder of "sass" to each corresponding css location.
 #
-# [<tt>:css_location</tt>]      The directory where CSS output should be written to.
+# [<tt>:css_location</tt>]      The path where CSS output should be written to.
+#                               This option is ignored when :template_location is a Hash.
 #                               Defaults to <tt>RAILS_ROOT + "/public/stylesheets"</tt>
 #                               or <tt>MERB_ROOT + "/public/stylesheets"</tt>.
 #                               Only has meaning within Ruby on Rails or Merb.
diff --git a/lib/sass/engine.rb b/lib/sass/engine.rb
index 37653e51..bd5b7409 100644
--- a/lib/sass/engine.rb
+++ b/lib/sass/engine.rb
@@ -438,6 +438,12 @@ END
       raise SyntaxError.new("Unbalanced brackets.", @line)
     end
 
+    def import_paths
+      paths = @options[:load_paths] || []
+      paths.unshift(File.dirname(@options[:filename])) if @options[:filename]
+      paths
+    end
+
     def import(files)
       nodes = []
 
@@ -445,7 +451,7 @@ END
         engine = nil
 
         begin
-          filename = self.class.find_file_to_import(filename, @options[:load_paths])
+          filename = self.class.find_file_to_import(filename, import_paths)
         rescue Exception => e
           raise SyntaxError.new(e.message, @line)
         end
@@ -503,7 +509,9 @@ END
 
     def self.find_full_path(filename, load_paths)
       load_paths.each do |path|
-        ["_#{filename}", filename].each do |name|
+        segments = filename.split(File::SEPARATOR)
+        segments.push "_#{segments.pop}"
+        [segments.join(File::SEPARATOR), filename].each do |name|
           full_path = File.join(path, name)
           if File.readable?(full_path)
             return full_path
diff --git a/lib/sass/plugin.rb b/lib/sass/plugin.rb
index 11176f2d..b6564a7d 100644
--- a/lib/sass/plugin.rb
+++ b/lib/sass/plugin.rb
@@ -8,7 +8,6 @@ module Sass
   module Plugin
     class << self
       @@options = {
-        :template_location  => './public/stylesheets/sass',
         :css_location       => './public/stylesheets',
         :always_update      => false,
         :always_check       => true,
@@ -35,44 +34,20 @@ module Sass
         @@options.merge!(value)
       end
 
-      # Checks each stylesheet in <tt>options[:css_location]</tt>
-      # to see if it needs updating,
-      # and updates it using the corresponding template
-      # from <tt>options[:templates]</tt>
-      # if it does.
+      # Checks each css stylesheet to see if it needs updating,
+      # and updates it using the corresponding sass template if it does.
       def update_stylesheets
         return if options[:never_update]
 
         @@checked_for_updates = true
-        Dir.glob(File.join(options[:template_location], "**", "*.sass")).entries.each do |file|
+        template_locations.zip(css_locations).each do |template_location, css_location|
 
-          # Get the relative path to the file with no extension
-          name = file.sub(options[:template_location] + "/", "")[0...-5]
+          Dir.glob(File.join(template_location, "**", "*.sass")).each do |file|
+            # Get the relative path to the file with no extension
+            name = file.sub(template_location + "/", "")[0...-5]
 
-          if !forbid_update?(name) && (options[:always_update] || stylesheet_needs_update?(name))
-            css = css_filename(name)
-            File.delete(css) if File.exists?(css)
-
-            filename = template_filename(name)
-            l_options = @@options.dup
-            l_options[:css_filename] = css
-            l_options[:filename] = filename
-            l_options[:load_paths] = load_paths
-            engine = Engine.new(File.read(filename), l_options)
-            result = begin
-                       engine.render
-                     rescue Exception => e
-                       exception_string(e)
-                     end
-
-            # Create any directories that might be necessary
-            dirs = [l_options[:css_location]]
-            name.split("/")[0...-1].each { |dir| dirs << "#{dirs[-1]}/#{dir}" }
-            dirs.each { |dir| Dir.mkdir(dir) unless File.exist?(dir) }
-
-            # Finally, write the file
-            File.open(css, 'w') do |file|
-              file.print(result)
+            if !forbid_update?(name) && (options[:always_update] || stylesheet_needs_update?(name, template_location, css_location))
+              update_stylesheet(name, template_location, css_location)
             end
           end
         end
@@ -80,8 +55,57 @@ module Sass
 
       private
 
+      def update_stylesheet(name, template_location, css_location)
+        css = css_filename(name, css_location)
+        File.delete(css) if File.exists?(css)
+
+        filename = template_filename(name, template_location)
+        l_options = @@options.dup
+        l_options[:css_filename] = css
+        l_options[:filename] = filename
+        l_options[:load_paths] = load_paths
+        engine = Engine.new(File.read(filename), l_options)
+        result = begin
+                   engine.render
+                 rescue Exception => e
+                   exception_string(e)
+                 end
+
+        # Create any directories that might be necessary
+        mkpath(css_location, name)
+
+        # Finally, write the file
+        File.open(css, 'w') do |file|
+          file.print(result)
+        end
+      end
+      
+      # Create any successive directories required to be able to write a file to: File.join(base,name)
+      def mkpath(base, name)
+        dirs = [base]
+        name.split(File::SEPARATOR)[0...-1].each { |dir| dirs << File.join(dirs[-1],dir) }
+        dirs.each { |dir| Dir.mkdir(dir) unless File.exist?(dir) }
+      end
+
       def load_paths
-        (options[:load_paths] || []) + [options[:template_location]]
+        (options[:load_paths] || []) + template_locations
+      end
+      
+      def template_locations
+        location = (options[:template_location] || File.join(options[:css_location],'sass'))
+        if location.is_a?(String)
+          [location]
+        else
+          location.to_a.map { |l| l.first }
+        end
+      end
+      
+      def css_locations
+        if options[:template_location] && !options[:template_location].is_a?(String)
+          options[:template_location].to_a.map { |l| l.last }
+        else
+          [options[:css_location]]
+        end
       end
 
       def exception_string(e)
@@ -98,10 +122,14 @@ module Sass
                 e_string << "\n\n"
 
                 min = [e.sass_line - 5, 0].max
-                File.read(e.sass_filename).rstrip.split("\n")[
-                  min .. e.sass_line + 5
-                ].each_with_index do |line, i|
-                  e_string << "#{min + i + 1}: #{line}\n"
+                begin
+                  File.read(e.sass_filename).rstrip.split("\n")[
+                    min .. e.sass_line + 5
+                  ].each_with_index do |line, i|
+                    e_string << "#{min + i + 1}: #{line}\n"
+                  end
+                rescue
+                  e_string << "Couldn't read sass file: #{e.sass_filename}"
                 end
               end
             end
@@ -123,25 +151,27 @@ END
         end
       end
 
-      def template_filename(name)
-        "#{options[:template_location]}/#{name}.sass"
+      def template_filename(name, path)
+        "#{path}/#{name}.sass"
       end
 
-      def css_filename(name)
-        "#{options[:css_location]}/#{name}.css"
+      def css_filename(name, path)
+        "#{path}/#{name}.css"
       end
 
       def forbid_update?(name)
         name.sub(/^.*\//, '')[0] == ?_
       end
 
-      def stylesheet_needs_update?(name)
-        if !File.exists?(css_filename(name))
+      def stylesheet_needs_update?(name, template_path, css_path)
+        css_file = css_filename(name, css_path)
+        template_file = template_filename(name, template_path)
+        if !File.exists?(css_file)
           return true
         else
-          css_mtime = File.mtime(css_filename(name))
-          File.mtime(template_filename(name)) > css_mtime ||
-            dependencies(template_filename(name)).any?(&dependency_updated?(css_mtime))
+          css_mtime = File.mtime(css_file)
+          File.mtime(template_file) > css_mtime ||
+            dependencies(template_file).any?(&dependency_updated?(css_mtime))
         end
       end
 
diff --git a/lib/sass/tree/rule_node.rb b/lib/sass/tree/rule_node.rb
index 1711958b..ad900d60 100644
--- a/lib/sass/tree/rule_node.rb
+++ b/lib/sass/tree/rule_node.rb
@@ -68,8 +68,16 @@ module Sass::Tree
         if @options[:line_comments] && @style != :compressed
           to_return << "#{old_spaces}/* line #{line}"
 
-          if filename && @options[:css_filename]
-            relative_filename = Pathname.new(filename).relative_path_from(Pathname.new(File.dirname(@options[:css_filename]))).to_s
+          if filename
+            relative_filename = if @options[:css_filename]
+              begin
+                Pathname.new(filename).relative_path_from(  
+                  Pathname.new(File.dirname(@options[:css_filename]))).to_s
+              rescue ArgumentError
+                nil
+              end
+            end
+            relative_filename ||= filename
             to_return << ", #{relative_filename}"
           end
 
diff --git a/test/sass/more_results/more1.css b/test/sass/more_results/more1.css
new file mode 100644
index 00000000..b0d1182f
--- /dev/null
+++ b/test/sass/more_results/more1.css
@@ -0,0 +1,9 @@
+body { font: Arial; background: blue; }
+
+#page { width: 700px; height: 100; }
+#page #header { height: 300px; }
+#page #header h1 { font-size: 50px; color: blue; }
+
+#content.user.show #container.top #column.left { width: 100px; }
+#content.user.show #container.top #column.right { width: 600px; }
+#content.user.show #container.bottom { background: brown; }
diff --git a/test/sass/more_results/more1_with_line_comments.css b/test/sass/more_results/more1_with_line_comments.css
new file mode 100644
index 00000000..f31dbca2
--- /dev/null
+++ b/test/sass/more_results/more1_with_line_comments.css
@@ -0,0 +1,26 @@
+/* line 3, ../more_templates/more1.sass */
+body {
+  font: Arial;
+  background: blue; }
+
+/* line 7, ../more_templates/more1.sass */
+#page {
+  width: 700px;
+  height: 100; }
+  /* line 10, ../more_templates/more1.sass */
+  #page #header {
+    height: 300px; }
+    /* line 12, ../more_templates/more1.sass */
+    #page #header h1 {
+      font-size: 50px;
+      color: blue; }
+
+/* line 18, ../more_templates/more1.sass */
+#content.user.show #container.top #column.left {
+  width: 100px; }
+/* line 20, ../more_templates/more1.sass */
+#content.user.show #container.top #column.right {
+  width: 600px; }
+/* line 22, ../more_templates/more1.sass */
+#content.user.show #container.bottom {
+  background: brown; }
diff --git a/test/sass/more_results/more_import.css b/test/sass/more_results/more_import.css
new file mode 100644
index 00000000..97c4797e
--- /dev/null
+++ b/test/sass/more_results/more_import.css
@@ -0,0 +1,29 @@
+imported { otherconst: hello; myconst: goodbye; pre-mixin: here; }
+
+body { font: Arial; background: blue; }
+
+#page { width: 700px; height: 100; }
+#page #header { height: 300px; }
+#page #header h1 { font-size: 50px; color: blue; }
+
+#content.user.show #container.top #column.left { width: 100px; }
+#content.user.show #container.top #column.right { width: 600px; }
+#content.user.show #container.bottom { background: brown; }
+
+midrule { inthe: middle; }
+
+body { font: Arial; background: blue; }
+
+#page { width: 700px; height: 100; }
+#page #header { height: 300px; }
+#page #header h1 { font-size: 50px; color: blue; }
+
+#content.user.show #container.top #column.left { width: 100px; }
+#content.user.show #container.top #column.right { width: 600px; }
+#content.user.show #container.bottom { background: brown; }
+
+@import url(basic.css);
+@import url(../results/complex.css);
+#foo { background-color: #baf; }
+
+nonimported { myconst: hello; otherconst: goodbye; post-mixin: here; }
diff --git a/test/sass/more_templates/_more_partial.sass b/test/sass/more_templates/_more_partial.sass
new file mode 100644
index 00000000..bef627d2
--- /dev/null
+++ b/test/sass/more_templates/_more_partial.sass
@@ -0,0 +1,2 @@
+#foo
+  :background-color #baf
diff --git a/test/sass/more_templates/more1.sass b/test/sass/more_templates/more1.sass
new file mode 100644
index 00000000..71117bf5
--- /dev/null
+++ b/test/sass/more_templates/more1.sass
@@ -0,0 +1,23 @@
+
+
+body  
+  :font Arial
+  :background blue
+
+#page
+  :width 700px
+  :height 100
+  #header
+    :height 300px
+    h1
+      :font-size 50px
+      :color     blue
+
+#content.user.show
+  #container.top
+    #column.left
+      :width 100px
+    #column.right
+      :width 600px
+  #container.bottom
+    :background brown
\ No newline at end of file
diff --git a/test/sass/more_templates/more_import.sass b/test/sass/more_templates/more_import.sass
new file mode 100644
index 00000000..fa329b32
--- /dev/null
+++ b/test/sass/more_templates/more_import.sass
@@ -0,0 +1,11 @@
+!preconst = hello
+
+=premixin
+  pre-mixin: here
+
+@import importee, basic, basic.css, ../results/complex.css, more_partial
+
+nonimported
+  :myconst = !preconst
+  :otherconst = !postconst
+  +postmixin
diff --git a/test/sass/plugin_test.rb b/test/sass/plugin_test.rb
index f1a379e0..ef025669 100644
--- a/test/sass/plugin_test.rb
+++ b/test/sass/plugin_test.rb
@@ -14,13 +14,15 @@ class SassPluginTest < Test::Unit::TestCase
   }
 
   def setup
-    FileUtils.mkdir File.dirname(__FILE__) + '/tmp'
+    FileUtils.mkdir tempfile_loc
+    FileUtils.mkdir tempfile_loc(nil,"more_")
     set_plugin_opts
     Sass::Plugin.update_stylesheets
   end
 
   def teardown
-    FileUtils.rm_r File.dirname(__FILE__) + '/tmp'
+    FileUtils.rm_r tempfile_loc
+    FileUtils.rm_r tempfile_loc(nil,"more_")
   end
 
   def test_templates_should_render_correctly
@@ -29,32 +31,32 @@ class SassPluginTest < Test::Unit::TestCase
 
   def test_no_update
     File.delete(tempfile_loc('basic'))
-    assert Sass::Plugin.stylesheet_needs_update?('basic')
+    assert Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
     Sass::Plugin.update_stylesheets
-    assert !Sass::Plugin.stylesheet_needs_update?('basic')
+    assert !Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
   end
 
   def test_update_needed_when_modified
     sleep(1)
     FileUtils.touch(template_loc('basic'))
-    assert Sass::Plugin.stylesheet_needs_update?('basic')
+    assert Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
     Sass::Plugin.update_stylesheets
-    assert !Sass::Plugin.stylesheet_needs_update?('basic')
+    assert !Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
   end
 
   def test_update_needed_when_dependency_modified
     sleep(1)
     FileUtils.touch(template_loc('basic'))
-    assert Sass::Plugin.stylesheet_needs_update?('import')
+    assert Sass::Plugin.stylesheet_needs_update?('import', template_loc, tempfile_loc)
     Sass::Plugin.update_stylesheets
-    assert !Sass::Plugin.stylesheet_needs_update?('import')
+    assert !Sass::Plugin.stylesheet_needs_update?('import', template_loc, tempfile_loc)
   end
 
   def test_full_exception_handling
     File.delete(tempfile_loc('bork'))
     Sass::Plugin.update_stylesheets
     File.open(tempfile_loc('bork')) do |file|
-      assert_equal("/*\nSass::SyntaxError: Undefined constant: \"!bork\".\non line 2 of #{File.dirname(__FILE__) + '/templates/bork.sass'}\n\n1: bork\n2:   :bork= !bork", file.read.split("\n")[0...6].join("\n"))
+      assert_equal("/*\nSass::SyntaxError: Undefined constant: \"!bork\".\non line 2 of #{template_loc('bork')}\n\n1: bork\n2:   :bork= !bork", file.read.split("\n")[0...6].join("\n"))
     end
     File.delete(tempfile_loc('bork'))
   end
@@ -69,14 +71,34 @@ class SassPluginTest < Test::Unit::TestCase
 
     Sass::Plugin.options[:full_exception] = true
   end
+  
+  def test_two_template_directories
+    set_plugin_opts :template_location => {
+      template_loc => tempfile_loc,
+      template_loc(nil,'more_') => tempfile_loc(nil,'more_')
+    }
+    Sass::Plugin.update_stylesheets
+    ['more1', 'more_import'].each { |name| assert_renders_correctly(name, :prefix => 'more_') }
+  end
+
+  def test_two_template_directories_with_line_annotations
+    set_plugin_opts :line_comments => true,
+                    :style => :nested,
+                    :template_location => {
+                      template_loc => tempfile_loc,
+                      template_loc(nil,'more_') => tempfile_loc(nil,'more_')
+                    }
+    Sass::Plugin.update_stylesheets
+    assert_renders_correctly('more1_with_line_comments', 'more1', :prefix => 'more_')
+  end
 
   def test_rails_update    
     File.delete(tempfile_loc('basic'))
-    assert Sass::Plugin.stylesheet_needs_update?('basic')
+    assert Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
 
     ActionController::Base.new.process
 
-    assert !Sass::Plugin.stylesheet_needs_update?('basic')
+    assert !Sass::Plugin.stylesheet_needs_update?('basic', template_loc, tempfile_loc)
   end
 
   def test_merb_update
@@ -105,33 +127,58 @@ class SassPluginTest < Test::Unit::TestCase
 
  private
 
-  def assert_renders_correctly(name)
-    File.read(result_loc(name)).split("\n").zip(File.read(tempfile_loc(name)).split("\n")).each_with_index do |pair, line|
-      message = "template: #{name}\nline:     #{line + 1}"
+  def assert_renders_correctly(*arguments)
+    options = arguments.last.is_a?(Hash) ? arguments.pop : {}
+    prefix = options[:prefix]
+    result_name = arguments.shift
+    tempfile_name = arguments.shift || result_name
+    expected_lines = File.read(result_loc(result_name, prefix)).split("\n")
+    actual_lines = File.read(tempfile_loc(tempfile_name, prefix)).split("\n")
+    expected_lines.zip(actual_lines).each_with_index do |pair, line|
+      message = "template: #{result_name}\nline:     #{line + 1}"
       assert_equal(pair.first, pair.last, message)
     end
+    if expected_lines.size < actual_lines.size
+      assert(false, "#{actual_lines.size - expected_lines.size} Trailing lines found in #{tempfile_name}.css: #{actual_lines[expected_lines.size..-1].join('\n')}")
+    end
   end
 
-  def template_loc(name)
-    File.dirname(__FILE__) + "/templates/#{name}.sass"
+  def template_loc(name = nil, prefix = nil)
+    if name
+      absolutize "#{prefix}templates/#{name}.sass"
+    else
+      absolutize "#{prefix}templates"
+    end
   end
 
-  def tempfile_loc(name)
-    File.dirname(__FILE__) + "/tmp/#{name}.css"
+  def tempfile_loc(name = nil, prefix = nil)
+    if name
+      absolutize "#{prefix}tmp/#{name}.css"
+    else
+      absolutize "#{prefix}tmp"
+    end
   end
 
-  def result_loc(name)
-    File.dirname(__FILE__) + "/results/#{name}.css"
+  def result_loc(name = nil, prefix = nil)
+    if name
+      absolutize "#{prefix}results/#{name}.css"
+    else
+      absolutize "#{prefix}results"
+    end
   end
 
-  def set_plugin_opts
+  def absolutize(file)
+    "#{File.dirname(__FILE__)}/#{file}"
+  end
+
+  def set_plugin_opts(overrides = {})
     Sass::Plugin.options = {
-      :template_location => File.dirname(__FILE__) + '/templates',
-      :css_location => File.dirname(__FILE__) + '/tmp',
+      :template_location => template_loc,
+      :css_location => tempfile_loc,
       :style => :compact,
-      :load_paths => [File.dirname(__FILE__) + '/results'],
+      :load_paths => [result_loc],
       :always_update => true,
-    }
+    }.merge(overrides)
   end
 end