diff --git a/README.rdoc b/README.rdoc
index 4b18a15..f9776c1 100644
--- a/README.rdoc
+++ b/README.rdoc
@@ -18,7 +18,7 @@ you embed a "mini app" inside of your main app.
 
 Just throw your mockups into app/views/mockups, then navigate to /mockups in your app. Just like any other
 Rails view, you can use partials, helpers, etc. If you want to use a layout other than your application
-default, tack it on as an additional file extension (example.html.erb.alternate).
+default, nest your mockup in a subdirectory with the same name as the layout (see examples).
 
 == Can I see an example?
 
diff --git a/app/controllers/mockups_controller.rb b/app/controllers/mockups_controller.rb
index e41ca31..8e99588 100644
--- a/app/controllers/mockups_controller.rb
+++ b/app/controllers/mockups_controller.rb
@@ -1,4 +1,7 @@
 class MockupsController < ApplicationController
+  LAYOUTS = Dir.glob(File.join(Rails.root, 'app', 'views', 'layouts', '*.html.*')).map do |file|
+    File.basename(file).split('.').first
+  end
   
   def frameset
     render :layout => false
@@ -26,24 +29,14 @@ def show
     session[:template_name] = params[:template_name]
     session[:parent_dir]    = params[:parent_dir]
     template_path = File.join(['mockups', params[:parent_dir], params[:template_name]].compact)
-    render :template => template_path, :layout => extract_layout(template_path)
+    render :template => template_path, :layout => determine_layout
   end
 
   private
 
-    def extract_layout(template_path)
-      full_path = File.join(Rails.root, 'app', 'views', template_path) 
-      located_files = Dir.glob("#{full_path}*")
-
-      return true if located_files.empty?
-
-      filename_components = File.basename(located_files[0]).split('.')
-
-      if filename_components.length < 4
-        true
-      else
-        filename_components.last
-      end
+    def determine_layout
+      directory = params[:parent_dir].to_s.downcase
+      LAYOUTS.include?(directory) ? directory : true
     end
 
 end
diff --git a/generators/showoff/showoff_generator.rb b/generators/showoff/showoff_generator.rb
index 87838da..27802e1 100644
--- a/generators/showoff/showoff_generator.rb
+++ b/generators/showoff/showoff_generator.rb
@@ -1,10 +1,10 @@
 class ShowoffGenerator < Rails::Generator::Base
   def manifest
     record do |m|
-      m.directory 'app/views/mockups/sample_section'
+      m.directory 'app/views/mockups/basic'
+
       m.file 'sample_mockup.html.erb', 'app/views/mockups/sample_mockup.html.erb'
-      m.file 'alternate_layout.html.erb.alternate', 'app/views/mockups/alternate_layout.html.erb.alternate'
-      m.file 'sample_nested.html.erb', 'app/views/mockups/sample_section/sample_nested.html.erb'
+      m.file 'alternate_layout.html.erb', 'app/views/mockups/basic/alternate_layout.html.erb'
       m.file 'showoff.css', 'public/stylesheets/showoff.css'
     end
   end
diff --git a/generators/showoff/templates/alternate_layout.html.erb b/generators/showoff/templates/alternate_layout.html.erb
new file mode 100644
index 0000000..93c548a
--- /dev/null
+++ b/generators/showoff/templates/alternate_layout.html.erb
@@ -0,0 +1,10 @@
+<h1>Nesting & Alternate Layout Example</h1>
+
+<p>
+  You can add subdirectories within app/views/mockups to organize your mockups (only one level deep).
+</p>
+
+<p>
+  If the subdirectory name matches a layout file, that layout would be used.
+  In this example, if you had a layout named "basic", it would be used instead of the default.
+</p>
diff --git a/generators/showoff/templates/alternate_layout.html.erb.alternate b/generators/showoff/templates/alternate_layout.html.erb.alternate
deleted file mode 100644
index 6bf08bd..0000000
--- a/generators/showoff/templates/alternate_layout.html.erb.alternate
+++ /dev/null
@@ -1,7 +0,0 @@
-<h1>Alternate Layout Example</h1>
-
-<p>
-  If a template has an additinal file extension, such as <code>alternate_layout.html.erb.alternate</code>, 
-  the first extension will be used as the layout.  In this case, Rails is expecting a layout named 
-  'alternate' to be defined.
-</p>
diff --git a/generators/showoff/templates/sample_nested.html.erb b/generators/showoff/templates/sample_nested.html.erb
deleted file mode 100644
index f9b7c1f..0000000
--- a/generators/showoff/templates/sample_nested.html.erb
+++ /dev/null
@@ -1,5 +0,0 @@
-<h1>Sample Nested Mockup</h1>
-
-<p>
-  You can add subdirectories within app/views/mockups to organize your mockups (only one level deep).
-</p>