diff --git a/lib/neo4j/batch_inserter.rb b/lib/neo4j/batch_inserter.rb
index ad8f1089d..226d0b6d3 100644
--- a/lib/neo4j/batch_inserter.rb
+++ b/lib/neo4j/batch_inserter.rb
@@ -37,21 +37,19 @@ def []=(key, value)
   #
   class BatchInserter
 
+    # See class description for usage.
     #
-    # See class description
-    #
-    def initialize(storage_path = Neo4j::Config[:storage_path])  # :yields: batch_inserter
-      # Neo4j must not be running while using batch inserter, stop it just in case ...
-      Neo4j::Transaction.finish
-      Neo4j.stop
-
+    # === Parameters
+    # storage_path:: optional, the location of the neo4j dabase on file system, default Neo4j::Config[:storage_path]
+    # db_version:: optional, sets version number on reference node, default nil -> do not set this property
+    def initialize(storage_path = Neo4j::Config[:storage_path], db_version=nil)  # :yields: batch_inserter
       # create the batch inserter
       inserter = org.neo4j.kernel.impl.batchinsert.BatchInserterImpl.new(storage_path)
-      
+
       # save original methods
       create_node_meth = Neo4j.method(:create_node)
       create_rel_meth  = Neo4j.method(:create_rel)
-      ref_node_meth    = Neo4j.method(:ref_node)
+      ref_node_meth    = Neo4j.method(:ref_node) 
       
       # replace methods
       neo4j_meta = (class << Neo4j; self; end)
@@ -74,6 +72,7 @@ def initialize(storage_path = Neo4j::Config[:storage_path])  # :yields: batch_in
 
       begin                     
         yield inserter         
+        Neo4j.ref_node[:db_version] = db_version if db_version
       ensure
         inserter.shutdown
         # restore old methods
@@ -84,8 +83,22 @@ def initialize(storage_path = Neo4j::Config[:storage_path])  # :yields: batch_in
         end
       end
     end
-  end
 
+    # This method is used if the batch inserter is used from the Migration API.
+    #
+    # === Parameters
+    # context:: the context on which the batch inserter code block is evaluated in, not used.
+    # version:: optional, if given then will set the property db_version on the context
+    def self.execute(context, version=nil, &block)
+      # Neo4j must not be running while using batch inserter, stop it just in case ...
+      Neo4j::Transaction.finish
+      Neo4j.stop
+
+      BatchInserter.new(Neo4j::Config[:storage_path], version, &block)
+
+      Neo4j.start
+    end
+  end
 
 end
 
diff --git a/lib/neo4j/mixins/migration_mixin.rb b/lib/neo4j/mixins/migration_mixin.rb
index 419bc15c0..89e470573 100644
--- a/lib/neo4j/mixins/migration_mixin.rb
+++ b/lib/neo4j/mixins/migration_mixin.rb
@@ -1,5 +1,6 @@
 module Neo4j
 
+
   # By including this mixing on a node class one can add migrations to it.
   # Adds a db_version attribute on the class including this mixin.
   # 
@@ -12,12 +13,6 @@ def db_version
     end
 
 
-    def init_with_node(java_node) # :nodoc:
-      super # call Neo4j::NodeMixin#init_with_node
-      migrate! self.class.migrate_to # for lazy migrations
-    end
-
-
     # Force one or more migrations to occur if not already done yet.
     # Will check the current db_version with the given 'to_version' and perform
     # migrations. If the 'to_version' parameter is not given then it will upgrade the
@@ -38,13 +33,34 @@ def migrate!(to_version=nil, verbose = false)
       # do we need to migrate ?
       return if db_version == to_version
 
-      # ok, so we are running some migrations 
+      # ok, so we are running some migrations
       if (db_version < to_version)
-        Migrator.upgrade( (db_version+1).upto(to_version).collect { |ver| self.class.migrations[ver] }, self, verbose )
+        upgrade( (db_version+1).upto(to_version).collect { |ver| self.class.migrations[ver] }, verbose )
       else
-        Migrator.downgrade( db_version.downto(to_version+1).collect { |ver| self.class.migrations[ver] }, self, verbose )
+        downgrade( db_version.downto(to_version+1).collect { |ver| self.class.migrations[ver] }, verbose )
+      end
+    end
+
+    # Running the up method on the given migrations.
+    #
+    # === Parameters
+    # migrations:: an enumerable of Migration objects
+    def upgrade(migrations, verbose=false)
+      migrations.each do |m|
+        puts "Running upgrade migration #{m.version} - #{m.name}"  if verbose
+        m.up_migrator.execute(self, m.version, &m.up_block)
+      end
+    end
+
+    # Running the down method on the given migrations.
+    #
+    # === Parameters
+    # migrations:: an enumerable of Migration objects
+    def downgrade(migrations, verbose=false)
+      migrations.each do |m|
+        puts "Running downgrade migration #{m.version} - #{m.name}" if verbose
+        m.down_migrator.execute(self, m.version-1, &m.down_block)
       end
-      self[:db_version] = to_version
     end
 
     def self.included(c) # :nodoc:
@@ -64,11 +80,14 @@ module ClassMethods
       #     up { ... }
       #     down { ... }
       #   end
+      #  
+      # See the Neo4j::MigrationMixin::Migration which the DSL is evaluated in.
       #
-      #
-      def migration(number, name, &block)
+      def migration(version, name, &block)
         @migrations ||= {}
-        @migrations[number] = {:name => name, :block => block}
+        migration = Migration.new(version, name)
+        migration.instance_eval(&block)
+        @migrations[version] = migration
       end
 
       # This is used for lazy migration. It stores the version that we want to upgrade to but does not perform the migrations.
@@ -80,38 +99,59 @@ def migrate!(to_version=nil)
       end
     end
 
-    # This is used as both the context for the Migration DSL and running the actual migrations.
-    class Migrator # :nodoc:
-      attr_reader :up_blocks, :down_blocks
+    # This is the context in which the Migrations DSL are evaluated in.
+    class Migration < Struct.new(:version, :name)
+      attr_reader :up_block, :down_block, :up_migrator, :down_migrator
 
-      def up(&block)
-        @up_blocks ||= []
-        @up_blocks << block
+      # Specifies a code block which is run when the migration is upgraded.
+      #
+      # === Parameters
+      # migrator:: Default Neo4j::MigrationMixin::Migrator - used to execute the block
+      def up(migrator = Migrator, &block)
+        @up_block = block
+        @up_migrator = migrator
       end
 
-      def down(&block)
-        @down_blocks ||= []
-        @down_blocks << block
+      # Specifies a code block which is run when the migration is upgraded.
+      #
+      # === Parameters
+      # migrator:: Default Neo4j::MigrationMixin::Migrator - used to execute the block
+      def down(migrator = Migrator, &block)
+        @down_block = block
+        @down_migrator = migrator
       end
 
-      class << self
-        def upgrade(migrations, node_context, verbose)
-          get_blocks(migrations, verbose).up_blocks.each {|block| node_context.instance_eval &block}
-        end
-
-        def downgrade(migrations, node_context, verbose)
-          get_blocks(migrations, verbose).down_blocks.each { |block| node_context.instance_eval &block}
-        end
+      def to_s
+        "Migration version: #{version}, name: #{name}"
+      end
+    end
 
-        def get_blocks(migrations, verbose)
-          context = Migrator.new
-          migrations.each {|m| puts "Running Migration #{m[:name]}" if verbose; context.instance_eval &m[:block]}
-          context
+    # Responsible for running a migration
+    class Migrator
+      class << self
+        # Runs given migration block. If successful it will set the property
+        # ':db_version' on the given context.
+        #
+        # === Parameters
+        # context:: the context on which the block is evaluated in
+        # version:: optional, if given then will set the property db_version on the context
+        def execute(context, version=nil, &block)
+          context.instance_eval &block
+          context[:db_version] = version if version
         end
       end
     end
+  end
 
 
+  # Overrides the init method so that it will check if any migration is needed.
+  # Migration might take place when the node is loaded.
+  #
+  module LazyMigrationMixin
+    def init_with_node(java_node) # :nodoc:
+      super # call Neo4j::NodeMixin#init_with_node
+      migrate! self.class.migrate_to # for lazy migrations
+    end
   end
 end
 
diff --git a/lib/neo4j/neo.rb b/lib/neo4j/neo.rb
index ad4f4a5b9..fb4342c71 100644
--- a/lib/neo4j/neo.rb
+++ b/lib/neo4j/neo.rb
@@ -85,6 +85,8 @@ def start(neo_instance=nil)
       Neo4j::Transaction.run do
         Neo4j.event_handler.neo_started(self)
       end
+
+      Neo4j::Transaction.run { @ref_node.migrate!}
       nil
     end
 
diff --git a/lib/neo4j/transaction.rb b/lib/neo4j/transaction.rb
index 25669693b..d224abeba 100644
--- a/lib/neo4j/transaction.rb
+++ b/lib/neo4j/transaction.rb
@@ -102,7 +102,8 @@ def run # :yield: transaction
           tx = Neo4j::Transaction.new
           ret = yield tx
         rescue Exception => bang
-          #$NEO_LOGGER.warn{e.backtrace.join("\n")}
+#          puts "BANG #{bang}"
+#          puts bang.backtrace.join("\n")
           tx.failure unless tx.nil?
           raise
         ensure
@@ -196,7 +197,7 @@ def success
     # success() or failure() has been previously invoked.
     #
     def finish
-      raise NotInTransactionError.new unless Transaction.running?
+      return unless Transaction.running?
       Neo4j.event_handler.tx_finished(self) unless failure?
       begin
         @neo_tx.success unless failure?
@@ -207,7 +208,6 @@ def finish
       end
 
       Thread.current[:transaction] = nil
-
       if Lucene::Transaction.running?
         $NEO_LOGGER.debug{"LUCENE TX running failure: #{failure?}"}
 
@@ -221,8 +221,6 @@ def finish
 
     # Marks this transaction as failed, which means that it will inexplicably
     # be rolled back upon invocation of finish().
-    #
-    # :api: public
     def failure
       raise NotInTransactionError.new unless Transaction.running?
       @neo_tx.failure
diff --git a/test/neo4j/batch_inserter_spec.rb b/test/neo4j/batch_inserter_spec.rb
index be7c8a2bc..916704f22 100644
--- a/test/neo4j/batch_inserter_spec.rb
+++ b/test/neo4j/batch_inserter_spec.rb
@@ -61,20 +61,17 @@ class Foo
   end
 
   it "should be possible to use together with Migrations" do
-    pending "Endless recursion since it will trigger running the migration again"
     Neo4j.migration 1, :first do
-      up do
-        puts "Create batch inserter" + caller.inspect
-        Neo4j::BatchInserter.new do 
-          Neo4j.ref_node[:first] = true
-        end
-        Neo4j.start
+      up(Neo4j::BatchInserter) do
+        Neo4j.ref_node[:first] = true
       end
+
       down do
         Neo4j.ref_node[:first] = nil
       end
     end
 
+    Neo4j.start
     Neo4j.migrate!
     
     Neo4j::Transaction.run do
diff --git a/test/neo4j/migration_spec.rb b/test/neo4j/migration_spec.rb
index efee64247..96ca213b1 100644
--- a/test/neo4j/migration_spec.rb
+++ b/test/neo4j/migration_spec.rb
@@ -29,16 +29,16 @@
   end
 
   it "should set the version on the ref node" do
+    Neo4j.stop
+
     Neo4j.migration 1, :create_articles do
       up do
       end
       down do
       end
     end
-
     # when starting
-    Neo4j.db_version.should == 0
-    Neo4j.migrate!
+    Neo4j.start
 
     # then
     Neo4j.db_version.should == 1
@@ -165,6 +165,7 @@
   class PersonInfo
     include Neo4j::NodeMixin
     include Neo4j::MigrationMixin
+    include Neo4j::LazyMigrationMixin
     property :name
   end