diff --git a/lib/compass.rb b/lib/compass.rb
index 02503443d2..121f55707c 100644
--- a/lib/compass.rb
+++ b/lib/compass.rb
@@ -1,21 +1,7 @@
-require File.join(File.dirname(__FILE__), 'compass', 'dependencies')
-
-def assert_sass_version(obj)
-  unless obj.respond_to?(:version) && obj.version[:major] == 2 && obj.version[:minor] >= 1
-    raise LoadError.new("Compass requires Haml version 2.1 or greater.")
-  end
-end
-
-begin
-  assert_sass_version(Sass)
-rescue LoadError
-  require 'haml'
-  assert_sass_version(Haml)
+module Compass
 end
 
-require File.join(File.dirname(__FILE__), 'sass_extensions')
-
-['core_ext', 'version'].each do |file|
+['dependencies', 'sass_extensions', 'core_ext', 'version'].each do |file|
   require File.join(File.dirname(__FILE__), 'compass', file)
 end
 
@@ -32,7 +18,6 @@ def lib_directory
 
 require File.join(File.dirname(__FILE__), 'compass', 'configuration')
 require File.join(File.dirname(__FILE__), 'compass', 'frameworks')
+require File.join(File.dirname(__FILE__), 'compass', 'app_integration')
 
-# make sure we're running inside Merb
-require File.join(File.dirname(__FILE__), 'compass', 'merb') if defined?(Merb::Plugins)  
 
diff --git a/lib/compass/app_integration.rb b/lib/compass/app_integration.rb
new file mode 100644
index 0000000000..c6b00f7b8c
--- /dev/null
+++ b/lib/compass/app_integration.rb
@@ -0,0 +1,3 @@
+
+# If we're running inside Merb
+require File.join(File.dirname(__FILE__), 'app_integration', 'merb') if defined?(Merb::Plugins)
diff --git a/lib/compass/merb.rb b/lib/compass/app_integration/merb.rb
similarity index 100%
rename from lib/compass/merb.rb
rename to lib/compass/app_integration/merb.rb
diff --git a/lib/compass/sass_extensions.rb b/lib/compass/sass_extensions.rb
new file mode 100644
index 0000000000..986be47f6b
--- /dev/null
+++ b/lib/compass/sass_extensions.rb
@@ -0,0 +1,5 @@
+module Compass::SassExtensions
+end
+
+require File.join(File.dirname(__FILE__), 'sass_extensions', 'functions')
+require File.join(File.dirname(__FILE__), 'sass_extensions', 'monkey_patches')
diff --git a/lib/compass/sass_extensions/functions.rb b/lib/compass/sass_extensions/functions.rb
new file mode 100644
index 0000000000..f33513b6f3
--- /dev/null
+++ b/lib/compass/sass_extensions/functions.rb
@@ -0,0 +1,17 @@
+module Compass::SassExtensions::Functions
+end
+
+['nest', 'enumerate', 'image_url'].each do |func|
+  require File.join(File.dirname(__FILE__), 'functions', func)
+end
+
+module Sass::Script::Functions
+  include Compass::SassExtensions::Functions::Nest
+  include Compass::SassExtensions::Functions::Enumerate
+  include Compass::SassExtensions::Functions::ImageUrl
+end
+
+# Wierd that this has to be re-included to pick up sub-modules. Ruby bug?
+class Sass::Script::Functions::EvaluationContext
+  include Sass::Script::Functions
+end
diff --git a/lib/compass/sass_extensions/functions/enumerate.rb b/lib/compass/sass_extensions/functions/enumerate.rb
new file mode 100644
index 0000000000..88d3240166
--- /dev/null
+++ b/lib/compass/sass_extensions/functions/enumerate.rb
@@ -0,0 +1,6 @@
+module Compass::SassExtensions::Functions::Enumerate
+  def enumerate(prefix, from, through)
+    selectors = (from.value..through.value).map{|i| "#{prefix.value}-#{i}"}.join(", ")
+    Sass::Script::String.new(selectors)
+  end
+end
\ No newline at end of file
diff --git a/lib/compass/sass_extensions/functions/image_url.rb b/lib/compass/sass_extensions/functions/image_url.rb
new file mode 100644
index 0000000000..f82ca026b3
--- /dev/null
+++ b/lib/compass/sass_extensions/functions/image_url.rb
@@ -0,0 +1,43 @@
+module Compass::SassExtensions::Functions::ImageUrl
+  def image_url(path)
+    path = path.value # get to the string value of the literal.
+    if absolute_path?(path)
+      return Sass::Script::String.new("url(#{path})")
+    end
+    http_images_path = if Compass.configuration.http_images_path == :relative
+      compute_relative_path
+    else
+      Compass.configuration.http_images_path
+    end
+
+    real_path = if Compass.configuration.images_dir
+      File.join(Compass.configuration.project_path, Compass.configuration.images_dir, path)
+    end
+
+    if http_images_path
+      http_images_path = "#{http_images_path}/" unless http_images_path[-1..-1] == "/"
+      path = "#{http_images_path}#{path}"
+    end
+
+    if real_path && File.exists?(real_path)
+      path += "?#{File.mtime(real_path).strftime("%s")}"
+    elsif real_path
+      $stderr.puts "WARNING: '#{File.basename(path)}' was not found in #{File.dirname(real_path)}"
+    end
+
+    Sass::Script::String.new("url(#{path})")
+  end
+
+  private
+
+  def absolute_path?(path)
+    path[0..0] == "/" || path[0..3] == "http"
+  end
+
+  def compute_relative_path
+    if (target_css_file = options[:css_filename])
+      images_path = File.join(Compass.configuration.project_path, Compass.configuration.images_dir)
+      Pathname.new(images_path).relative_path_from(Pathname.new(File.dirname(target_css_file))).to_s
+    end
+  end
+end
\ No newline at end of file
diff --git a/lib/compass/sass_extensions/functions/nest.rb b/lib/compass/sass_extensions/functions/nest.rb
new file mode 100644
index 0000000000..8981f79e8f
--- /dev/null
+++ b/lib/compass/sass_extensions/functions/nest.rb
@@ -0,0 +1,12 @@
+module Compass::SassExtensions::Functions::Nest
+  COMMA_SEPARATOR = /\s*,\s*/
+
+  def nest(*arguments)
+    nested = arguments.map{|a| a.value}.inject do |memo,arg|
+      ancestors = memo.split(COMMA_SEPARATOR)
+      descendants = arg.split(COMMA_SEPARATOR)
+      ancestors.map{|a| descendants.map{|d| "#{a} #{d}"}.join(", ")}.join(", ")
+    end
+    Sass::Script::String.new(nested)
+  end
+end
\ No newline at end of file
diff --git a/lib/compass/sass_extensions/monkey_patches.rb b/lib/compass/sass_extensions/monkey_patches.rb
new file mode 100644
index 0000000000..de54a75c43
--- /dev/null
+++ b/lib/compass/sass_extensions/monkey_patches.rb
@@ -0,0 +1,3 @@
+['stylesheet_updating'].each do |patch|
+  require File.join(File.dirname(__FILE__), 'monkey_patches', patch)
+end
\ No newline at end of file
diff --git a/lib/compass/sass_extensions/monkey_patches/stylesheet_updating.rb b/lib/compass/sass_extensions/monkey_patches/stylesheet_updating.rb
new file mode 100644
index 0000000000..1cb091189f
--- /dev/null
+++ b/lib/compass/sass_extensions/monkey_patches/stylesheet_updating.rb
@@ -0,0 +1,23 @@
+require 'sass/plugin'
+
+# XXX: We can remove this monkeypatch once Sass 2.2 is released.
+module Sass::Plugin
+  class << self
+    unless method_defined?(:exact_stylesheet_needs_update?)
+      def stylesheet_needs_update?(name, template_path, css_path)
+        css_file = css_filename(name, css_path)
+        template_file = template_filename(name, template_path)
+        exact_stylesheet_needs_update?(css_file, template_file)
+      end
+      def exact_stylesheet_needs_update?(css_file, template_file)
+        if !File.exists?(css_file)
+          return true
+        else
+          css_mtime = File.mtime(css_file)
+          File.mtime(template_file) > css_mtime ||
+            dependencies(template_file).any?(&dependency_updated?(css_mtime))
+        end
+      end
+    end
+  end
+end
\ No newline at end of file
diff --git a/lib/sass_extensions.rb b/lib/sass_extensions.rb
deleted file mode 100644
index 053a90633e..0000000000
--- a/lib/sass_extensions.rb
+++ /dev/null
@@ -1,83 +0,0 @@
-require 'sass/plugin'
-
-module Sass::Script::Functions
-  COMMA_SEPARATOR = /\s*,\s*/
-
-  def nest(*arguments)
-    nested = arguments.map{|a| a.value}.inject do |memo,arg|
-      ancestors = memo.split(COMMA_SEPARATOR)
-      descendants = arg.split(COMMA_SEPARATOR)
-      ancestors.map{|a| descendants.map{|d| "#{a} #{d}"}.join(", ")}.join(", ")
-    end
-    Sass::Script::String.new(nested)
-  end
-
-  def enumerate(prefix, from, through)
-    selectors = (from.value..through.value).map{|i| "#{prefix.value}-#{i}"}.join(", ")
-    Sass::Script::String.new(selectors)
-  end
-
-  def image_url(path)
-    path = path.value # get to the string value of the literal.
-    if absolute_path?(path)
-      return Sass::Script::String.new("url(#{path})")
-    end
-    http_images_path = if Compass.configuration.http_images_path == :relative
-      compute_relative_path
-    else
-      Compass.configuration.http_images_path
-    end
-
-    real_path = if Compass.configuration.images_dir
-      File.join(Compass.configuration.project_path, Compass.configuration.images_dir, path)
-    end
-
-    if http_images_path
-      http_images_path = "#{http_images_path}/" unless http_images_path[-1..-1] == "/"
-      path = "#{http_images_path}#{path}"
-    end
-
-    if real_path && File.exists?(real_path)
-      path += "?#{File.mtime(real_path).strftime("%s")}"
-    elsif real_path
-      $stderr.puts "WARNING: '#{File.basename(path)}' was not found in #{File.dirname(real_path)}"
-    end
-
-    Sass::Script::String.new("url(#{path})")
-  end
-
-  private
-
-  def absolute_path?(path)
-    path[0..0] == "/" || path[0..3] == "http"
-  end
-
-  def compute_relative_path
-    if (target_css_file = options[:css_filename])
-      images_path = File.join(Compass.configuration.project_path, Compass.configuration.images_dir)
-      Pathname.new(images_path).relative_path_from(Pathname.new(File.dirname(target_css_file))).to_s
-    end
-  end
-end
-
-# XXX: We can remove this check and monkeypatch once Sass 2.2 is released.
-module Sass::Plugin
-  class << self
-    unless method_defined?(:exact_stylesheet_needs_update?)
-      def stylesheet_needs_update?(name, template_path, css_path)
-        css_file = css_filename(name, css_path)
-        template_file = template_filename(name, template_path)
-        exact_stylesheet_needs_update?(css_file, template_file)
-      end
-      def exact_stylesheet_needs_update?(css_file, template_file)
-        if !File.exists?(css_file)
-          return true
-        else
-          css_mtime = File.mtime(css_file)
-          File.mtime(template_file) > css_mtime ||
-            dependencies(template_file).any?(&dependency_updated?(css_mtime))
-        end
-      end
-    end
-  end
-end
\ No newline at end of file
diff --git a/test/command_line_test.rb b/test/command_line_test.rb
index a03027f232..a94ee22067 100644
--- a/test/command_line_test.rb
+++ b/test/command_line_test.rb
@@ -70,7 +70,7 @@ def test_rails_install
     within_tmp_directory do
       generate_rails_app("compass_rails")
       Dir.chdir "compass_rails" do
-        compass("--rails", ".") do |responder|
+        compass("--rails", '--trace', ".") do |responder|
           responder.respond_to "Is this OK? (Y/n) ", :with => "Y"
           responder.respond_to "Emit compiled stylesheets to public/stylesheets/compiled/? (Y/n) ", :with => "Y"
         end
diff --git a/test/compass_test.rb b/test/compass_test.rb
index f790b4dcd2..a700ace31d 100644
--- a/test/compass_test.rb
+++ b/test/compass_test.rb
@@ -18,9 +18,10 @@ def teardown_fixtures(*project_names)
     end
   end
 
-  def test_blueprint_generates_no_files
+  def test_empty_project
+    # With no sass files, we should have no css files.
     within_project(:empty) do |proj|
-      return unless File.exists?(proj.css_path)
+      return unless proj.css_path && File.exists?(proj.css_path)
       Dir.new(proj.css_path).each do |f|
         fail "This file should not have been generated: #{f}" unless f == "." || f == ".."
       end
@@ -80,11 +81,13 @@ def assert_renders_correctly(*arguments)
 
   def within_project(project_name)
     @current_project = project_name
-    Compass.configuration.parse(configuration_file(project_name))
+    Compass.configuration.parse(configuration_file(project_name)) if File.exists?(configuration_file(project_name))
     Compass.configuration.project_path = project_path(project_name)
     args = Compass.configuration.to_compiler_arguments(:logger => Compass::NullLogger.new)
-    compiler = Compass::Compiler.new *args
-    compiler.run
+    if Compass.configuration.sass_path && File.exists?(Compass.configuration.sass_path)
+      compiler = Compass::Compiler.new *args
+      compiler.run
+    end
     yield Compass.configuration
   rescue
     save_output(project_name)    
diff --git a/test/fixtures/stylesheets/blueprint/images/grid.png b/test/fixtures/stylesheets/blueprint/images/grid.png
new file mode 100644
index 0000000000..76aaa851a1
Binary files /dev/null and b/test/fixtures/stylesheets/blueprint/images/grid.png differ
diff --git a/test/sass_extensions_test.rb b/test/sass_extensions_test.rb
index d709464c50..98136c9a74 100644
--- a/test/sass_extensions_test.rb
+++ b/test/sass_extensions_test.rb
@@ -1,5 +1,4 @@
 require  File.dirname(__FILE__)+'/test_helper'
-require 'compass'
 
 class SassExtensionsTest < Test::Unit::TestCase
   def test_simple
diff --git a/test/test_case_helper.rb b/test/test_case_helper.rb
new file mode 100644
index 0000000000..3c4f95e0fb
--- /dev/null
+++ b/test/test_case_helper.rb
@@ -0,0 +1,13 @@
+module Compass
+  module TestCaseHelper
+    def absolutize(path)
+      if path.blank?
+        File.dirname(__FILE__)
+      elsif path[0] == ?/
+        "#{File.dirname(__FILE__)}#{path}"
+      else
+        "#{File.dirname(__FILE__)}/#{path}"
+      end
+    end
+  end
+end
diff --git a/test/test_helper.rb b/test/test_helper.rb
index 2d77698655..6e0ed21d71 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -1,15 +1,4 @@
-# allows testing with edge Rails by creating a test/rails symlink
-RAILS_ROOT = linked_rails = File.dirname(__FILE__) + '/rails'
-RAILS_ENV = 'test'
-
 need_gems = false
-if File.exists?(linked_rails) && !$:.include?(linked_rails + '/activesupport/lib')
-  puts "[ using linked Rails ]"
-  $:.unshift linked_rails + '/activesupport/lib'
-  $:.unshift linked_rails + '/actionpack/lib'
-else
-  need_gems = true
-end
 
 # allows testing with edge Haml by creating a test/haml symlink
 linked_haml = File.dirname(__FILE__) + '/haml'
@@ -24,22 +13,8 @@
 
 require 'rubygems' if need_gems
 
-require 'action_controller'
-require 'action_view'
-
+require 'compass'
 
 require 'test/unit'
 
-module Compass
-  module TestCaseHelper
-    def absolutize(path)
-      if path.blank?
-        File.dirname(__FILE__)
-      elsif path[0] == ?/
-        "#{File.dirname(__FILE__)}#{path}"
-      else
-        "#{File.dirname(__FILE__)}/#{path}"
-      end
-    end
-  end
-end
+require File.join(File.dirname(__FILE__), 'test_case_helper')