diff --git a/actionmailer/lib/action_mailer/base.rb b/actionmailer/lib/action_mailer/base.rb
index 1518e23dfe..5a71935009 100644
--- a/actionmailer/lib/action_mailer/base.rb
+++ b/actionmailer/lib/action_mailer/base.rb
@@ -426,7 +426,7 @@ module ActionMailer #:nodoc:
       end
 
       def template_root=(root)
-        write_inheritable_attribute(:template_root, ActionView::ViewLoadPaths.new(Array(root)))
+        write_inheritable_attribute(:template_root, ActionView::PathSet.new(Array(root)))
       end
     end
 
diff --git a/actionpack/CHANGELOG b/actionpack/CHANGELOG
index dc508f701a..507a2b69bf 100644
--- a/actionpack/CHANGELOG
+++ b/actionpack/CHANGELOG
@@ -1,5 +1,7 @@
 *Edge*
 
+* Refactor template preloading. New abstractions include Renderable mixins and a refactored Template class [Josh Peek]
+
 * Changed ActionView::TemplateHandler#render API method signature to render(template, local_assigns = {}) [Josh Peek]
 
 * Changed PrototypeHelper#submit_to_remote to PrototypeHelper#button_to_remote to stay consistent with link_to_remote (submit_to_remote still works as an alias) #8994 [clemens]
diff --git a/actionpack/lib/action_controller/assertions/response_assertions.rb b/actionpack/lib/action_controller/assertions/response_assertions.rb
index 64aaf6211f..cb36405700 100644
--- a/actionpack/lib/action_controller/assertions/response_assertions.rb
+++ b/actionpack/lib/action_controller/assertions/response_assertions.rb
@@ -93,7 +93,7 @@ module ActionController
             if expected.nil?
               !@response.rendered_with_file?
             else
-              expected == rendered
+              rendered.match(expected)
             end
           end
         end
diff --git a/actionpack/lib/action_controller/base.rb b/actionpack/lib/action_controller/base.rb
index 9d9ff527c2..6926941396 100755
--- a/actionpack/lib/action_controller/base.rb
+++ b/actionpack/lib/action_controller/base.rb
@@ -431,7 +431,7 @@ module ActionController #:nodoc:
       end
 
       def view_paths=(value)
-        @view_paths = ActionView::ViewLoadPaths.new(Array(value)) if value
+        @view_paths = ActionView::PathSet.new(Array(value)) if value
       end
 
       # Adds a view_path to the front of the view_paths array.
@@ -652,7 +652,7 @@ module ActionController #:nodoc:
       end
 
       def view_paths=(value)
-        @template.view_paths = ViewLoadPaths.new(value)
+        @template.view_paths = PathSet.new(value)
       end
 
       # Adds a view_path to the front of the view_paths array.
@@ -1248,9 +1248,8 @@ module ActionController #:nodoc:
       end
 
       def template_exempt_from_layout?(template_name = default_template_name)
-        extension = @template && @template.pick_template_extension(template_name)
-        name_with_extension = !template_name.include?('.') && extension ? "#{template_name}.#{extension}" : template_name
-        @@exempt_from_layout.any? { |ext| name_with_extension =~ ext }
+        template_name = @template.pick_template(template_name).to_s if @template
+        @@exempt_from_layout.any? { |ext| template_name =~ ext }
       end
 
       def default_template_name(action_name = self.action_name)
diff --git a/actionpack/lib/action_controller/layout.rb b/actionpack/lib/action_controller/layout.rb
index d0c717ff67..8b6febe254 100644
--- a/actionpack/lib/action_controller/layout.rb
+++ b/actionpack/lib/action_controller/layout.rb
@@ -304,7 +304,7 @@ module ActionController #:nodoc:
       end
 
       def layout_directory?(layout_name)
-        @template.view_paths.find_template_file_for_path("#{File.join('layouts', layout_name)}.#{@template.template_format}.erb") ? true : false
+        @template.file_exists?("#{File.join('layouts', layout_name)}.#{@template.template_format}")
       end
   end
 end
diff --git a/actionpack/lib/action_controller/test_process.rb b/actionpack/lib/action_controller/test_process.rb
index 8ae73a66f4..52884a93f4 100644
--- a/actionpack/lib/action_controller/test_process.rb
+++ b/actionpack/lib/action_controller/test_process.rb
@@ -207,13 +207,9 @@ module ActionController #:nodoc:
 
     # Returns the template path of the file which was used to
     # render this response (or nil) 
-    def rendered_file(with_controller=false)
-      unless template.first_render.nil?
-        unless with_controller
-          template.first_render
-        else
-          template.first_render.split('/').last || template.first_render
-        end
+    def rendered_file(with_controller = false)
+      if template.first_render
+        template.first_render.to_s
       end
     end
 
diff --git a/actionpack/lib/action_view.rb b/actionpack/lib/action_view.rb
index 8f928d6fdf..9ab615c7a5 100644
--- a/actionpack/lib/action_view.rb
+++ b/actionpack/lib/action_view.rb
@@ -21,14 +21,14 @@
 # WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
 #++
 
-require 'action_view/template_handlers'
-require 'action_view/template_file'
-require 'action_view/view_load_paths'
 
+require 'action_view/template_handlers'
 require 'action_view/renderable'
+require 'action_view/renderable_partial'
+
 require 'action_view/template'
-require 'action_view/partial_template'
 require 'action_view/inline_template'
+require 'action_view/paths'
 
 require 'action_view/base'
 require 'action_view/partials'
diff --git a/actionpack/lib/action_view/base.rb b/actionpack/lib/action_view/base.rb
index 7ef90ddf5e..9d4d897dbc 100644
--- a/actionpack/lib/action_view/base.rb
+++ b/actionpack/lib/action_view/base.rb
@@ -3,6 +3,12 @@ module ActionView #:nodoc:
   end
 
   class MissingTemplate < ActionViewError #:nodoc:
+    def initialize(paths, path, template_format = nil)
+      full_template_path = path.include?('.') ? path : "#{path}.erb"
+      display_paths = paths.join(':')
+      template_type = (path =~ /layouts/i) ? 'layout' : 'template'
+      super("Missing #{template_type} #{full_template_path} in view path #{display_paths}")
+    end
   end
 
   # Action View templates can be written in three ways. If the template file has a <tt>.erb</tt> (or <tt>.rhtml</tt>) extension then it uses a mixture of ERb
@@ -216,12 +222,14 @@ module ActionView #:nodoc:
     attr_reader :view_paths
 
     def view_paths=(paths)
-      @view_paths = ViewLoadPaths.new(Array(paths))
+      @view_paths = PathSet.new(Array(paths))
     end
 
     # Renders the template present at <tt>template_path</tt> (relative to the view_paths array).
     # The hash in <tt>local_assigns</tt> is made available as local variables.
     def render(options = {}, local_assigns = {}, &block) #:nodoc:
+      local_assigns ||= {}
+
       if options.is_a?(String)
         render_file(options, nil, local_assigns)
       elsif options == :update
@@ -270,21 +278,40 @@ module ActionView #:nodoc:
     end
 
     def file_exists?(template_path)
-      view_paths.template_exists?(template_file_from_name(template_path))
+      pick_template(template_path) ? true : false
+    rescue MissingTemplate
+      false
     end
 
     # Gets the extension for an existing template with the given template_path.
     # Returns the format with the extension if that template exists.
     #
-    #   pick_template_extension('users/show')
-    #   # => 'html.erb'
+    #   pick_template('users/show')
+    #   # => 'users/show.html.erb'
     #
-    #   pick_template_extension('users/legacy')
-    #   # => "rhtml"
+    #   pick_template('users/legacy')
+    #   # => 'users/legacy.rhtml'
     #
-    def pick_template_extension(template_path)
-      if template = template_file_from_name(template_path)
-        template.extension
+    def pick_template(template_path)
+      path = template_path.sub(/^\//, '')
+      if m = path.match(/(.*)\.(\w+)$/)
+        template_file_name, template_file_extension = m[1], m[2]
+      else
+        template_file_name = path
+      end
+
+      # OPTIMIZE: Checks to lookup template in view path
+      if template = self.view_paths["#{template_file_name}.#{template_format}"]
+        template
+      elsif template = self.view_paths[template_file_name]
+        template
+      elsif first_render && template = self.view_paths["#{template_file_name}.#{first_render.extension}"]
+        template
+      elsif template_format == :js && template = self.view_paths["#{template_file_name}.html"]
+        @template_format = :html
+        template
+      else
+        Template.new(template_path, view_paths)
       end
     end
 
@@ -292,6 +319,10 @@ module ActionView #:nodoc:
       # Renders the template present at <tt>template_path</tt>. The hash in <tt>local_assigns</tt>
       # is made available as local variables.
       def render_file(template_path, use_full_path = nil, local_assigns = {}) #:nodoc:
+        unless use_full_path == nil
+          ActiveSupport::Deprecation.warn("use_full_path option has been deprecated and has no affect.", caller)
+        end
+
         if defined?(ActionMailer) && defined?(ActionMailer::Base) && controller.is_a?(ActionMailer::Base) && !template_path.include?("/")
           raise ActionViewError, <<-END_ERROR
   Due to changes in ActionMailer, you need to provide the mailer_name along with the template name.
@@ -305,11 +336,12 @@ module ActionView #:nodoc:
           END_ERROR
         end
 
-        Template.new(self, template_path, use_full_path, local_assigns).render_template
+        template = pick_template(template_path)
+        template.render_template(self, local_assigns)
       end
 
       def render_inline(text, local_assigns = {}, type = nil)
-        InlineTemplate.new(self, text, local_assigns, type).render
+        InlineTemplate.new(text, type).render(self, local_assigns)
       end
 
       def wrap_content_for_layout(content)
@@ -333,32 +365,9 @@ module ActionView #:nodoc:
       end
 
       def execute(template, local_assigns = {})
-        send(template.method, local_assigns) do |*names|
+        send(template.method(local_assigns), local_assigns) do |*names|
           instance_variable_get "@content_for_#{names.first || 'layout'}"
         end
       end
-
-      def template_file_from_name(template_name)
-        template_name = TemplateFile.from_path(template_name)
-        pick_template(template_name) unless template_name.extension
-      end
-
-      def pick_template(file)
-        if f = self.view_paths.find_template_file_for_path(file.dup_with_extension(template_format)) || file_from_first_render(file)
-          f
-        elsif template_format == :js && f = self.view_paths.find_template_file_for_path(file.dup_with_extension(:html))
-          @template_format = :html
-          f
-        else
-          nil
-        end
-      end
-
-      # Determine the template extension from the <tt>@first_render</tt> filename
-      def file_from_first_render(file)
-        if extension = File.basename(@first_render.to_s)[/^[^.]+\.(.+)$/, 1]
-          file.dup_with_extension(extension)
-        end
-      end
   end
 end
diff --git a/actionpack/lib/action_view/inline_template.rb b/actionpack/lib/action_view/inline_template.rb
index 3e25f6902d..5e00cef13f 100644
--- a/actionpack/lib/action_view/inline_template.rb
+++ b/actionpack/lib/action_view/inline_template.rb
@@ -2,15 +2,18 @@ module ActionView #:nodoc:
   class InlineTemplate #:nodoc:
     include Renderable
 
-    def initialize(view, source, locals = {}, type = nil)
-      @view = view
+    attr_reader :source, :extension, :method_segment
 
+    def initialize(source, type = nil)
       @source = source
       @extension = type
-      @locals = locals || {}
-
       @method_segment = "inline_#{@source.hash.abs}"
-      @handler = Template.handler_class_for_extension(@extension).new(@view)
     end
+
+    private
+      # Always recompile inline templates
+      def recompile?(local_assigns)
+        true
+      end
   end
 end
diff --git a/actionpack/lib/action_view/partial_template.rb b/actionpack/lib/action_view/partial_template.rb
deleted file mode 100644
index 72f831e937..0000000000
--- a/actionpack/lib/action_view/partial_template.rb
+++ /dev/null
@@ -1,69 +0,0 @@
-module ActionView #:nodoc:
-  class PartialTemplate < Template #:nodoc:
-    attr_reader :variable_name, :object, :as
-
-    def initialize(view, partial_path, object = nil, locals = {}, as = nil)
-      @view_controller = view.controller if view.respond_to?(:controller)
-      @as = as
-      set_path_and_variable_name!(partial_path)
-      super(view, @path, nil, locals)
-      add_object_to_local_assigns!(object)
-
-      # This is needed here in order to compile template with knowledge of 'counter'
-      initialize_counter!
-
-      # Prepare early. This is a performance optimization for partial collections
-      prepare!
-    end
-
-    def render
-      ActionController::Base.benchmark("Rendered #{@path.path_without_format_and_extension}", Logger::DEBUG, false) do
-        super
-      end
-    end
-
-    def render_member(object)
-      @locals[:object] = @locals[@variable_name] = object
-      @locals[as] = object if as
-
-      template = render_template
-      @locals[@counter_name] += 1
-      @locals.delete(as)
-      @locals.delete(@variable_name)
-      @locals.delete(:object)
-
-      template
-    end
-
-    def counter=(num)
-      @locals[@counter_name] = num
-    end
-
-    private
-      def add_object_to_local_assigns!(object)
-        @locals[:object] ||=
-          @locals[@variable_name] ||= object || @view_controller.instance_variable_get("@#{variable_name}")
-        @locals[as] ||= @locals[:object] if as
-      end
-
-      def set_path_and_variable_name!(partial_path)
-        if partial_path.include?('/')
-          @variable_name = File.basename(partial_path)
-          @path = "#{File.dirname(partial_path)}/_#{@variable_name}"
-        elsif @view_controller
-          @variable_name = partial_path
-          @path = "#{@view_controller.class.controller_path}/_#{@variable_name}"
-        else
-          @variable_name = partial_path
-          @path = "_#{@variable_name}"
-        end
-
-        @variable_name = @variable_name.sub(/\..*$/, '').to_sym
-      end
-
-      def initialize_counter!
-        @counter_name ||= "#{@variable_name}_counter".to_sym
-        @locals[@counter_name] = 0
-      end
-  end
-end
diff --git a/actionpack/lib/action_view/partials.rb b/actionpack/lib/action_view/partials.rb
index 7c6c98d611..116d61e13b 100644
--- a/actionpack/lib/action_view/partials.rb
+++ b/actionpack/lib/action_view/partials.rb
@@ -104,10 +104,12 @@ module ActionView
   module Partials
     private
       def render_partial(partial_path, object_assigns = nil, local_assigns = {}) #:nodoc:
+        local_assigns ||= {}
+
         case partial_path
         when String, Symbol, NilClass
-          # Render the template
-          ActionView::PartialTemplate.new(self, partial_path, object_assigns, local_assigns).render_template
+          variable_name, path = partial_pieces(partial_path)
+          pick_template(path).render_partial(self, variable_name, object_assigns, local_assigns)
         when ActionView::Helpers::FormBuilder
           builder_partial_path = partial_path.class.to_s.demodulize.underscore.sub(/_builder$/, '')
           render_partial(builder_partial_path, object_assigns, (local_assigns || {}).merge(builder_partial_path.to_sym => partial_path))
@@ -128,31 +130,43 @@ module ActionView
 
         local_assigns = local_assigns ? local_assigns.clone : {}
         spacer = partial_spacer_template ? render(:partial => partial_spacer_template) : ''
+        _partial_pieces = {}
+        _templates = {}
 
-        if partial_path.nil?
-          render_partial_collection_with_unknown_partial_path(collection, local_assigns, as)
-        else
-          render_partial_collection_with_known_partial_path(collection, partial_path, local_assigns, as)
+        index = 0
+        collection.map do |object|
+          _partial_path ||= partial_path || ActionController::RecordIdentifier.partial_path(object, controller.class.controller_path)
+          variable_name, path = _partial_pieces[_partial_path] ||= partial_pieces(_partial_path)
+          template = _templates[path] ||= pick_template(path)
+
+          local_assigns["#{variable_name}_counter".to_sym] = index
+          local_assigns[:object] = local_assigns[variable_name] = object
+          local_assigns[as] = object if as
+
+          result = template.render_partial(self, variable_name, object, local_assigns)
+
+          local_assigns.delete(as)
+          local_assigns.delete(variable_name)
+          local_assigns.delete(:object)
+          index += 1
+
+          result
         end.join(spacer)
       end
 
-      def render_partial_collection_with_known_partial_path(collection, partial_path, local_assigns, as)
-        template = ActionView::PartialTemplate.new(self, partial_path, nil, local_assigns, as)
-        collection.map do |element|
-          template.render_member(element)
-        end
-      end
-
-      def render_partial_collection_with_unknown_partial_path(collection, local_assigns, as)
-        templates = Hash.new
-        i = 0
-        collection.map do |element|
-          partial_path = ActionController::RecordIdentifier.partial_path(element, controller.class.controller_path)
-          template = templates[partial_path] ||= ActionView::PartialTemplate.new(self, partial_path, nil, local_assigns, as)
-          template.counter = i
-          i += 1
-          template.render_member(element)
+      def partial_pieces(partial_path)
+        if partial_path.include?('/')
+          variable_name = File.basename(partial_path)
+          path = "#{File.dirname(partial_path)}/_#{variable_name}"
+        elsif respond_to?(:controller)
+          variable_name = partial_path
+          path = "#{controller.class.controller_path}/_#{variable_name}"
+        else
+          variable_name = partial_path
+          path = "_#{variable_name}"
         end
+        variable_name = variable_name.sub(/\..*$/, '').to_sym
+        return variable_name, path
       end
   end
 end
diff --git a/actionpack/lib/action_view/paths.rb b/actionpack/lib/action_view/paths.rb
new file mode 100644
index 0000000000..0fa7d3dad3
--- /dev/null
+++ b/actionpack/lib/action_view/paths.rb
@@ -0,0 +1,85 @@
+module ActionView #:nodoc:
+  class PathSet < Array #:nodoc:
+    def self.type_cast(obj)
+      obj.is_a?(String) ? Path.new(obj) : obj
+    end
+
+    class Path #:nodoc:
+      attr_reader :path, :paths
+      delegate :to_s, :to_str, :inspect, :to => :path
+
+      def initialize(path)
+        @path = path.freeze
+        reload!
+      end
+
+      def ==(path)
+        to_str == path.to_str
+      end
+
+      def [](path)
+        @paths[path]
+      end
+
+      # Rebuild load path directory cache
+      def reload!
+        @paths = {}
+
+        templates_in_path do |template|
+          @paths[template.path] = template
+          @paths[template.path_without_extension] ||= template
+        end
+
+        @paths.freeze
+      end
+
+      private
+        def templates_in_path
+          (Dir.glob("#{@path}/**/*/**") | Dir.glob("#{@path}/**")).each do |file|
+            unless File.directory?(file)
+              template = Template.new(file.split("#{self}/").last, self)
+              # Eager load memoized methods and freeze cached template
+              template.freeze if Base.cache_template_loading
+              yield template
+            end
+          end
+        end
+    end
+
+    def initialize(*args)
+      super(*args).map! { |obj| self.class.type_cast(obj) }
+    end
+
+    def reload!
+      each { |path| path.reload! }
+    end
+
+    def <<(obj)
+      super(self.class.type_cast(obj))
+    end
+
+    def push(*objs)
+      delete_paths!(objs)
+      super(*objs.map { |obj| self.class.type_cast(obj) })
+    end
+
+    def unshift(*objs)
+      delete_paths!(objs)
+      super(*objs.map { |obj| self.class.type_cast(obj) })
+    end
+
+    def [](template_path)
+      each do |path|
+        if template = path[template_path]
+          return template
+        end
+      end
+      nil
+    end
+
+    private
+      def delete_paths!(paths)
+        paths.each { |p1| delete_if { |p2| p1.to_s == p2.to_s } }
+      end
+  end
+end
diff --git a/actionpack/lib/action_view/renderable.rb b/actionpack/lib/action_view/renderable.rb
index 6a8a0e44fc..2c4302146f 100644
--- a/actionpack/lib/action_view/renderable.rb
+++ b/actionpack/lib/action_view/renderable.rb
@@ -1,37 +1,78 @@
 module ActionView
   module Renderable
-    # TODO: Local assigns should not be tied to template instance
-    attr_accessor :locals
+    # NOTE: The template that this mixin is beening include into is frozen
+    # So you can not set or modify any instance variables
 
-    # TODO: These readers should be private
-    attr_reader :filename, :source, :handler
-
-    def render
-      prepare!
-      @handler.render(self, @locals)
+    def self.included(base)
+      @@mutex = Mutex.new
     end
 
-    def method
-      ['_run', @extension, @method_segment, local_assigns_keys].compact.join('_').to_sym
+    # NOTE: Exception to earlier notice. Ensure this is called before freeze
+    def handler
+      @handler ||= Template.handler_class_for_extension(extension)
+    end
+
+    # NOTE: Exception to earlier notice. Ensure this is called before freeze
+    def compiled_source
+      @compiled_source ||= handler.new(nil).compile(self) if handler.compilable?
+    end
+
+    def render(view, local_assigns = {})
+      view.first_render ||= self
+      view.send(:evaluate_assigns)
+      view.current_render_extension = extension
+      compile(local_assigns) if handler.compilable?
+      handler.new(view).render(self, local_assigns)
+    end
+
+    def method(local_assigns)
+      if local_assigns && local_assigns.any?
+        local_assigns_keys = "locals_#{local_assigns.keys.map { |k| k.to_s }.sort.join('_')}"
+      end
+      ['_run', extension, method_segment, local_assigns_keys].compact.join('_').to_sym
     end
 
     private
-      def prepare!
-        unless @prepared
-          @view.send(:evaluate_assigns)
-          @view.current_render_extension = @extension
+      # Compile and evaluate the template's code
+      def compile(local_assigns)
+        render_symbol = method(local_assigns)
 
-          if @handler.compilable?
-            @handler.compile_template(self) # compile the given template, if necessary
+        @@mutex.synchronize do
+          return false unless recompile?(render_symbol)
+
+          locals_code = local_assigns.keys.map { |key| "#{key} = local_assigns[:#{key}];" }.join
+
+          source = <<-end_src
+            def #{render_symbol}(local_assigns)
+              old_output_buffer = output_buffer;#{locals_code};#{compiled_source}
+            ensure
+              self.output_buffer = old_output_buffer
+            end
+          end_src
+
+          begin
+            file_name = respond_to?(:filename) ? filename : 'compiled-template'
+            ActionView::Base::CompiledTemplates.module_eval(source, file_name, 0)
+          rescue Exception => e # errors from template code
+            if logger = ActionController::Base.logger
+              logger.debug "ERROR: compiling #{render_symbol} RAISED #{e}"
+              logger.debug "Function body: #{source}"
+              logger.debug "Backtrace: #{e.backtrace.join("\n")}"
+            end
+
+            raise ActionView::TemplateError.new(self, {}, e)
           end
-
-          @prepared = true
         end
       end
 
-      def local_assigns_keys
-        if @locals && @locals.any?
-          "locals_#{@locals.keys.map { |k| k.to_s }.sort.join('_')}"
+      # Method to check whether template compilation is necessary.
+      # The template will be compiled if the file has not been compiled yet, or
+      # if local_assigns has a new key, which isn't supported by the compiled code yet.
+      def recompile?(symbol)
+        unless Base::CompiledTemplates.instance_methods.include?(symbol) && Base.cache_template_loading
+          true
+        else
+          false
         end
       end
   end
diff --git a/actionpack/lib/action_view/renderable_partial.rb b/actionpack/lib/action_view/renderable_partial.rb
new file mode 100644
index 0000000000..6a17b50a14
--- /dev/null
+++ b/actionpack/lib/action_view/renderable_partial.rb
@@ -0,0 +1,19 @@
+module ActionView
+  module RenderablePartial
+    # NOTE: The template that this mixin is beening include into is frozen
+    # So you can not set or modify any instance variables
+
+    def render(view, local_assigns = {})
+      ActionController::Base.benchmark("Rendered #{path_without_format_and_extension}", Logger::DEBUG, false) do
+        super
+      end
+    end
+
+    def render_partial(view, variable_name, object = nil, local_assigns = {}, as = nil)
+      object ||= view.controller.instance_variable_get("@#{variable_name}") if view.respond_to?(:controller)
+      local_assigns[:object] ||= local_assigns[variable_name] ||= object
+      local_assigns[as] ||= local_assigns[:object] if as
+      render_template(view, local_assigns)
+    end
+  end
+end
diff --git a/actionpack/lib/action_view/template.rb b/actionpack/lib/action_view/template.rb
index 5e5ea9b9b9..03f9234289 100644
--- a/actionpack/lib/action_view/template.rb
+++ b/actionpack/lib/action_view/template.rb
@@ -1,82 +1,112 @@
 module ActionView #:nodoc:
-  class Template #:nodoc:
+  class Template
     extend TemplateHandlers
     include Renderable
 
-    attr_reader :path, :extension
+    attr_accessor :filename, :load_path, :base_path, :name, :format, :extension
+    delegate :to_s, :to => :path
 
-    def initialize(view, path, use_full_path = nil, locals = {})
-      unless use_full_path == nil
-        ActiveSupport::Deprecation.warn("use_full_path option has been deprecated and has no affect.", caller)
-      end
+    def initialize(template_path, load_paths = [])
+      template_path = template_path.dup
+      @base_path, @name, @format, @extension = split(template_path)
+      @base_path.to_s.gsub!(/\/$/, '') # Push to split method
+      @load_path, @filename = find_full_path(template_path, load_paths)
 
-      @view = view
-      @paths = view.view_paths
-
-      @original_path = path
-      @path = TemplateFile.from_path(path)
-      @view.first_render ||= @path.to_s
-
-      set_extension_and_file_name
-
-      @method_segment = compiled_method_name_file_path_segment
-      @locals = (locals && locals.dup) || {}
-      @handler = self.class.handler_class_for_extension(@extension).new(@view)
+      # Extend with partial super powers
+      extend RenderablePartial if @name =~ /^_/
     end
 
-    def render_template
-      render
-    rescue Exception => e
-      raise e unless filename
-      if TemplateError === e
-        e.sub_template_of(filename)
-        raise e
-      else
-        raise TemplateError.new(self, @view.assigns, e)
-      end
+    def freeze
+      # Eager load memoized methods
+      format_and_extension
+      path
+      path_without_extension
+      path_without_format_and_extension
+      source
+      method_segment
+
+      # Eager load memoized methods from Renderable
+      handler
+      compiled_source
+
+      instance_variables.each { |ivar| ivar.freeze }
+
+      super
+    end
+
+    def format_and_extension
+      @format_and_extension ||= (extensions = [format, extension].compact.join(".")).blank? ? nil : extensions
+    end
+
+    def path
+      @path ||= [base_path, [name, format, extension].compact.join('.')].compact.join('/')
+    end
+
+    def path_without_extension
+      @path_without_extension ||= [base_path, [name, format].compact.join('.')].compact.join('/')
+    end
+
+    def path_without_format_and_extension
+      @path_without_format_and_extension ||= [base_path, name].compact.join('/')
     end
 
     def source
       @source ||= File.read(@filename)
     end
 
-    def base_path_for_exception
-      (@paths.find_load_path_for_path(@path) || @paths.first).to_s
+    def method_segment
+      unless @method_segment
+        segment = File.expand_path(@filename)
+        segment.sub!(/^#{Regexp.escape(File.expand_path(RAILS_ROOT))}/, '') if defined?(RAILS_ROOT)
+        segment.gsub!(/([^a-zA-Z0-9_])/) { $1.ord }
+        @method_segment = segment
+      end
+
+      @method_segment
+    end
+
+    def render_template(view, local_assigns = {})
+      render(view, local_assigns)
+    rescue Exception => e
+      raise e unless filename
+      if TemplateError === e
+        e.sub_template_of(filename)
+        raise e
+      else
+        raise TemplateError.new(self, view.assigns, e)
+      end
     end
 
     private
-      def set_extension_and_file_name
-        @extension = @path.extension
-
-        unless @extension
-          @path = @view.send(:template_file_from_name, @path)
-          raise_missing_template_exception unless @path
-          @extension = @path.extension
-        end
-
-        if p = @paths.find_template_file_for_path(path)
-          @path = p
-          @filename = @path.full_path
-          @extension = @path.extension
-          raise_missing_template_exception if @filename.blank?
-        else
-          @filename = @original_path
-          raise_missing_template_exception unless File.exist?(@filename)
-        end
+      def valid_extension?(extension)
+        Template.template_handler_extensions.include?(extension)
       end
 
-      def raise_missing_template_exception
-        full_template_path = @original_path.include?('.') ? @original_path : "#{@original_path}.#{@view.template_format}.erb"
-        display_paths = @paths.join(':')
-        template_type = (@original_path =~ /layouts/i) ? 'layout' : 'template'
-        raise MissingTemplate, "Missing #{template_type} #{full_template_path} in view path #{display_paths}"
+      def find_full_path(path, load_paths)
+        load_paths = Array(load_paths) + [nil]
+        load_paths.each do |load_path|
+          file = [load_path, path].compact.join('/')
+          return load_path, file if File.exist?(file)
+        end
+        raise MissingTemplate.new(load_paths, path)
       end
 
-      def compiled_method_name_file_path_segment
-        s = File.expand_path(@filename)
-        s.sub!(/^#{Regexp.escape(File.expand_path(RAILS_ROOT))}/, '') if defined?(RAILS_ROOT)
-        s.gsub!(/([^a-zA-Z0-9_])/) { $1.ord }
-        s
+      # Returns file split into an array
+      #   [base_path, name, format, extension]
+      def split(file)
+        if m = file.match(/^(.*\/)?([^\.]+)\.?(\w+)?\.?(\w+)?\.?(\w+)?$/)
+          if m[5] # Mulipart formats
+            [m[1], m[2], "#{m[3]}.#{m[4]}", m[5]]
+          elsif m[4] # Single format
+            [m[1], m[2], m[3], m[4]]
+          else
+            if valid_extension?(m[3]) # No format
+              [m[1], m[2], nil, m[3]]
+            else # No extension
+              [m[1], m[2], m[3], nil]
+            end
+          end
+        end
       end
   end
 end
diff --git a/actionpack/lib/action_view/template_error.rb b/actionpack/lib/action_view/template_error.rb
index a1be1a8833..35fc07bdb2 100644
--- a/actionpack/lib/action_view/template_error.rb
+++ b/actionpack/lib/action_view/template_error.rb
@@ -7,7 +7,7 @@ module ActionView
     attr_reader :original_exception
 
     def initialize(template, assigns, original_exception)
-      @base_path = template.base_path_for_exception
+      @base_path = template.base_path
       @assigns, @source, @original_exception = assigns.dup, template.source, original_exception
       @file_path = template.filename
       @backtrace = compute_backtrace
diff --git a/actionpack/lib/action_view/template_file.rb b/actionpack/lib/action_view/template_file.rb
deleted file mode 100644
index 0aa16b5e70..0000000000
--- a/actionpack/lib/action_view/template_file.rb
+++ /dev/null
@@ -1,88 +0,0 @@
-module ActionView #:nodoc:
-  # TemplateFile abstracts the pattern of querying a file path for its
-  # path with or without its extension. The path is only the partial path
-  # from the load path root e.g. "hello/index.html.erb" not
-  # "app/views/hello/index.html.erb"
-  class TemplateFile
-    def self.from_path(path)
-      path.is_a?(self) ? path : new(path)
-    end
-
-    def self.from_full_path(load_path, full_path)
-      file = new(full_path.split(load_path).last)
-      file.load_path = load_path
-      file.freeze
-    end
-
-    attr_accessor :load_path, :base_path, :name, :format, :extension
-    delegate :to_s, :inspect, :to => :path
-
-    def initialize(path)
-      path = path.dup
-
-      # Clear the forward slash in the beginning
-      trim_forward_slash!(path)
-
-      @base_path, @name, @format, @extension = split(path)
-    end
-
-    def freeze
-      @load_path.freeze
-      @base_path.freeze
-      @name.freeze
-      @format.freeze
-      @extension.freeze
-      super
-    end
-
-    def format_and_extension
-      extensions = [format, extension].compact.join(".")
-      extensions.blank? ? nil : extensions
-    end
-
-    def full_path
-      if load_path
-        "#{load_path}/#{path}"
-      else
-        path
-      end
-    end
-
-    def path
-      base_path.to_s + [name, format, extension].compact.join(".")
-    end
-
-    def path_without_extension
-      base_path.to_s + [name, format].compact.join(".")
-    end
-
-    def path_without_format_and_extension
-      "#{base_path}#{name}"
-    end
-
-    def dup_with_extension(extension)
-      file = dup
-      file.extension = extension ? extension.to_s : nil
-      file
-    end
-
-    private
-      def trim_forward_slash!(path)
-        path.sub!(/^\//, '')
-      end
-
-      # Returns file split into an array
-      #   [base_path, name, format, extension]
-      def split(file)
-        if m = file.match(/^(.*\/)?([^\.]+)\.?(\w+)?\.?(\w+)?\.?(\w+)?$/)
-          if m[5] # Mulipart formats
-            [m[1], m[2], "#{m[3]}.#{m[4]}", m[5]]
-          elsif m[4] # Single format
-            [m[1], m[2], m[3], m[4]]
-          else # No format
-            [m[1], m[2], nil, m[3]]
-          end
-        end
-      end
-  end
-end
diff --git a/actionpack/lib/action_view/template_handlers/compilable.rb b/actionpack/lib/action_view/template_handlers/compilable.rb
index 95ae75ca68..a0ebaefeef 100644
--- a/actionpack/lib/action_view/template_handlers/compilable.rb
+++ b/actionpack/lib/action_view/template_handlers/compilable.rb
@@ -3,8 +3,6 @@ module ActionView
     module Compilable
       def self.included(base)
         base.extend ClassMethod
-
-        @@mutex = Mutex.new
       end
 
       module ClassMethod
@@ -17,54 +15,6 @@ module ActionView
       def render(template, local_assigns = {})
         @view.send(:execute, template, local_assigns)
       end
-
-      # Compile and evaluate the template's code
-      def compile_template(template)
-        return false unless recompile_template?(template)
-
-        @@mutex.synchronize do
-          locals_code = template.locals.keys.map { |key| "#{key} = local_assigns[:#{key}];" }.join
-
-          source = <<-end_src
-            def #{template.method}(local_assigns)
-              old_output_buffer = output_buffer;#{locals_code};#{compile(template)}
-            ensure
-              self.output_buffer = old_output_buffer
-            end
-          end_src
-
-          begin
-            file_name = template.filename || 'compiled-template'
-            ActionView::Base::CompiledTemplates.module_eval(source, file_name, 0)
-          rescue Exception => e # errors from template code
-            if logger = ActionController::Base.logger
-              logger.debug "ERROR: compiling #{template.method} RAISED #{e}"
-              logger.debug "Function body: #{source}"
-              logger.debug "Backtrace: #{e.backtrace.join("\n")}"
-            end
-
-            raise ActionView::TemplateError.new(template, @view.assigns, e)
-          end
-        end
-      end
-
-      private
-        # Method to check whether template compilation is necessary.
-        # The template will be compiled if the inline template or file has not been compiled yet,
-        # if local_assigns has a new key, which isn't supported by the compiled code yet.
-        def recompile_template?(template)
-          # Unless the template has been complied yet, compile
-          return true unless Base::CompiledTemplates.instance_methods.include?(template.method.to_s)
-
-          # If template caching is disabled, compile
-          return true unless Base.cache_template_loading
-
-          # Always recompile inline templates
-          return true if template.is_a?(InlineTemplate)
-
-          # Otherwise, use compiled method
-          return false
-        end
     end
   end
 end
diff --git a/actionpack/lib/action_view/view_load_paths.rb b/actionpack/lib/action_view/view_load_paths.rb
deleted file mode 100644
index 6e439a009c..0000000000
--- a/actionpack/lib/action_view/view_load_paths.rb
+++ /dev/null
@@ -1,103 +0,0 @@
-module ActionView #:nodoc:
-  class ViewLoadPaths < Array #:nodoc:
-    def self.type_cast(obj)
-      obj.is_a?(String) ? LoadPath.new(obj) : obj
-    end
-
-    class LoadPath #:nodoc:
-      attr_reader :path, :paths
-      delegate :to_s, :to_str, :inspect, :to => :path
-
-      def initialize(path)
-        @path = path.freeze
-        reload!
-      end
-
-      def ==(path)
-        to_str == path.to_str
-      end
-
-      # Rebuild load path directory cache
-      def reload!
-        @paths = {}
-
-        files.each do |file|
-          @paths[file.path] = file
-          @paths[file.path_without_extension] ||= file
-        end
-
-        @paths.freeze
-      end
-
-      def find_template_file_for_partial_path(template_path, template_format)
-        @paths["#{template_path}.#{template_format}"] ||
-          @paths[template_path] ||
-          @paths[template_path.gsub(/\..*$/, '')]
-      end
-
-      private
-        # Get all the files and directories in the path
-        def files_in_path
-          Dir.glob("#{@path}/**/*/**") | Dir.glob("#{@path}/**")
-        end
-
-        # Create an array of all the files within the path
-        def files
-          files_in_path.map do |file|
-            TemplateFile.from_full_path(@path, file) unless File.directory?(file)
-          end.compact
-        end
-    end
-
-    def initialize(*args)
-      super(*args).map! { |obj| self.class.type_cast(obj) }
-    end
-
-    def reload!
-      each { |path| path.reload! }
-    end
-
-    def <<(obj)
-      super(self.class.type_cast(obj))
-    end
-
-    def push(*objs)
-      delete_paths!(objs)
-      super(*objs.map { |obj| self.class.type_cast(obj) })
-    end
-
-    def unshift(*objs)
-      delete_paths!(objs)
-      super(*objs.map { |obj| self.class.type_cast(obj) })
-    end
-
-    def template_exists?(file)
-      find_load_path_for_path(file) ? true : false
-    end
-
-    def find_load_path_for_path(file)
-      find { |path| path.paths[file.to_s] }
-    end
-
-    def find_template_file_for_path(template_path)
-      template_path_without_extension, template_extension = path_and_extension(template_path.to_s)
-      each do |path|
-        if f = path.find_template_file_for_partial_path(template_path_without_extension, template_extension)
-          return f
-        end
-      end
-      nil
-    end
-
-    private
-      def delete_paths!(paths)
-        paths.each { |p1| delete_if { |p2| p1.to_s == p2.to_s } }
-      end
-
-      # Splits the path and extension from the given template_path and returns as an array.
-      def path_and_extension(template_path)
-        template_path_without_extension = template_path.sub(/\.(\w+)$/, '')
-        [template_path_without_extension, $1]
-      end
-  end
-end
diff --git a/actionpack/test/controller/layout_test.rb b/actionpack/test/controller/layout_test.rb
index 32be7d90ff..92b6aa4f2f 100644
--- a/actionpack/test/controller/layout_test.rb
+++ b/actionpack/test/controller/layout_test.rb
@@ -63,6 +63,7 @@ class LayoutAutoDiscoveryTest < Test::Unit::TestCase
   end
   
   def test_third_party_template_library_auto_discovers_layout
+    ThirdPartyTemplateLibraryController.view_paths.reload!
     @controller = ThirdPartyTemplateLibraryController.new
     get :hello
     assert_equal 'layouts/third_party_template_library', @controller.active_layout
diff --git a/railties/lib/initializer.rb b/railties/lib/initializer.rb
index d80460d4bc..18bcf69d69 100644
--- a/railties/lib/initializer.rb
+++ b/railties/lib/initializer.rb
@@ -137,12 +137,12 @@ module Rails
       initialize_logger
       initialize_framework_logging
 
-      initialize_framework_views
       initialize_dependency_mechanism
       initialize_whiny_nils
       initialize_temporary_session_directory
       initialize_time_zone
       initialize_framework_settings
+      initialize_framework_views
 
       add_support_load_paths