diff --git a/CHANGELOG b/CHANGELOG
index 577201a9c..3c9f74a37 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -16,7 +16,9 @@
 * Changed date/time inputs to default to nil instead of Time.now when the object has no value (due to deprecation warning, #240)
 * Changed the behaviour of associations with a :class_name option to be more consistent with what Rails expects
 * Fixed issues with Ruby 1.9.1 and Haml
+* Fixed inputs_for_nested_attributes only appending to the output buffer
 * Add the :disabled option to check_boxes input
+* Changed I18n handling in spec tests to use I18n.backend.reload! instead of assigning nil
 
 0.9.8
 
diff --git a/README.textile b/README.textile
index a620af903..5057ce70b 100644
--- a/README.textile
+++ b/README.textile
@@ -337,7 +337,7 @@ Formtastic supports localized *labels*, *hints*, *legends*, *actions* using the
           title: "Choose a good title for you post."
           body: "Write something inspiring here."
       actions:
-        create: "Create my {{model}}"
+        create: "Create my %{model}"
         update: "Save changes"
         dummie: "Launch!"
 </pre>
@@ -354,7 +354,7 @@ Formtastic supports localized *labels*, *hints*, *legends*, *actions* using the
       <%= form.input :section %>    # => :label => I18n.t('activerecord.attributes.user.section')  or 'Section'
     <% end %>
     <% form.buttons do %>
-      <%= form.commit_button %>     # => "Create my {{model}}"
+      <%= form.commit_button %>     # => "Create my %{model}"
     <% end %>
   <% end %>
 </pre>
diff --git a/generators/formtastic/templates/formtastic.rb b/generators/formtastic/templates/formtastic.rb
index ee76ff638..bb710efcc 100644
--- a/generators/formtastic/templates/formtastic.rb
+++ b/generators/formtastic/templates/formtastic.rb
@@ -28,7 +28,7 @@
 # Formtastic::SemanticFormBuilder.inline_errors = :sentence
 
 # Set the method to call on label text to transform or format it for human-friendly
-# reading when formtastic is user without object. Defaults to :humanize.
+# reading when formtastic is used without object. Defaults to :humanize.
 # Formtastic::SemanticFormBuilder.label_str_method = :humanize
 
 # Set the array of methods to try calling on parent objects in :select and :radio inputs
diff --git a/lib/formtastic.rb b/lib/formtastic.rb
index 6ea708296..7319eedcb 100644
--- a/lib/formtastic.rb
+++ b/lib/formtastic.rb
@@ -1606,9 +1606,9 @@ def humanized_attribute_name(method) #:nodoc:
       #
       # Lookup priority:
       #
-      #   'formtastic.{{type}}.{{model}}.{{action}}.{{attribute}}'
-      #   'formtastic.{{type}}.{{model}}.{{attribute}}'
-      #   'formtastic.{{type}}.{{attribute}}'
+      #   'formtastic.%{type}.%{model}.%{action}.%{attribute}'
+      #   'formtastic.%{type}.%{model}.%{attribute}'
+      #   'formtastic.%{type}.%{attribute}'
       # 
       # Example:
       #   
@@ -1627,15 +1627,16 @@ def localized_string(key, value, type, options = {}) #:nodoc:
           use_i18n = value.nil? ? @@i18n_lookups_by_default : (value != false)
 
           if use_i18n
-            model_name  = self.model_name.underscore
+            model_name, nested_model_name  = normalize_model_name(self.model_name.underscore)
             action_name = template.params[:action].to_s rescue ''
             attribute_name = key.to_s
 
             defaults = ::Formtastic::I18n::SCOPES.collect do |i18n_scope|
               i18n_path = i18n_scope.dup
-              i18n_path.gsub!('{{action}}', action_name)
-              i18n_path.gsub!('{{model}}', model_name)
-              i18n_path.gsub!('{{attribute}}', attribute_name)
+              i18n_path.gsub!('%{action}', action_name)
+              i18n_path.gsub!('%{model}', model_name)
+              i18n_path.gsub!('%{nested_model}', nested_model_name) unless nested_model_name.nil?
+              i18n_path.gsub!('%{attribute}', attribute_name)
               i18n_path.gsub!('..', '.')
               i18n_path.to_sym
             end
@@ -1652,6 +1653,14 @@ def model_name
         @object.present? ? @object.class.name : @object_name.to_s.classify
       end
 
+      def normalize_model_name(name)
+        if name =~ /(.+)\[(.+)\]/
+          [$1, $2]
+        else
+          [name]
+        end
+      end
+
       def send_or_call(duck, object)
         if duck.is_a?(Proc)
           duck.call(object)
diff --git a/lib/formtastic/i18n.rb b/lib/formtastic/i18n.rb
index 97b05e4c2..5d917fdfb 100644
--- a/lib/formtastic/i18n.rb
+++ b/lib/formtastic/i18n.rb
@@ -6,13 +6,16 @@ module I18n
         :required       => 'required',
         :yes            => 'Yes',
         :no             => 'No',
-        :create         => 'Create {{model}}',
-        :update         => 'Update {{model}}'
+        :create         => 'Create %{model}',
+        :update         => 'Update %{model}'
       }.freeze
     SCOPES = [
-        '{{model}}.{{action}}.{{attribute}}',
-        '{{model}}.{{attribute}}',
-        '{{attribute}}'
+        '%{model}.%{nested_model}.%{action}.%{attribute}',
+        '%{model}.%{action}.%{attribute}',
+        '%{model}.%{nested_model}.%{attribute}',
+        '%{model}.%{attribute}',
+        '%{nested_model}.%{attribute}',
+        '%{attribute}'
       ]
       
     class << self
diff --git a/spec/commit_button_spec.rb b/spec/commit_button_spec.rb
index 18f4289e5..efe24cb9d 100644
--- a/spec/commit_button_spec.rb
+++ b/spec/commit_button_spec.rb
@@ -147,7 +147,7 @@
       describe 'when no explicit label is provided' do
         describe 'when no I18n-localized label is provided' do
           before do
-            ::I18n.backend.store_translations :en, :formtastic => {:submit => 'Submit {{model}}'}
+            ::I18n.backend.store_translations :en, :formtastic => {:submit => 'Submit %{model}'}
           end
           
           after do
@@ -183,7 +183,7 @@
              :formtastic => {
                  :actions => {
                    :post => {
-                     :submit => 'Custom Submit {{model}}'
+                     :submit => 'Custom Submit %{model}'
                     }
                   }
                }
@@ -225,7 +225,7 @@
       describe 'when no explicit label is provided' do
         describe 'when no I18n-localized label is provided' do
           before do
-            ::I18n.backend.store_translations :en, :formtastic => {:create => 'Create {{model}}'}
+            ::I18n.backend.store_translations :en, :formtastic => {:create => 'Create %{model}'}
           end
 
           after do
@@ -261,7 +261,7 @@
               :formtastic => {
                   :actions => {
                     :post => {
-                      :create => 'Custom Create {{model}}'
+                      :create => 'Custom Create %{model}'
                      }
                    }
                 }
@@ -303,7 +303,7 @@
       describe 'when no explicit label is provided' do
         describe 'when no I18n-localized label is provided' do
           before do
-            ::I18n.backend.store_translations :en, :formtastic => {:update => 'Save {{model}}'}
+            ::I18n.backend.store_translations :en, :formtastic => {:update => 'Save %{model}'}
           end
           
           after do
@@ -340,7 +340,7 @@
               :formtastic => {
                   :actions => {
                     :post => {
-                      :update => 'Custom Save {{model}}'
+                      :update => 'Custom Save %{model}'
                      }
                    }
                 }
diff --git a/spec/i18n_spec.rb b/spec/i18n_spec.rb
index ee6f4a6ae..a19be951a 100644
--- a/spec/i18n_spec.rb
+++ b/spec/i18n_spec.rb
@@ -26,11 +26,11 @@
       @formtastic_strings = {
           :yes            => 'Default Yes',
           :no             => 'Default No',
-          :create         => 'Default Create {{model}}',
-          :update         => 'Default Update {{model}}',
+          :create         => 'Default Create %{model}',
+          :update         => 'Default Update %{model}',
           :custom_scope   => {
               :duck           => 'Duck',
-              :duck_pond      => '{{ducks}} ducks in a pond'
+              :duck_pond      => '%{ducks} ducks in a pond'
             }
         }
       ::I18n.backend.store_translations :en, :formtastic => @formtastic_strings
@@ -71,7 +71,7 @@
 
     it "should use default strings" do
       (::Formtastic::I18n::DEFAULT_VALUES.keys).each do |key|
-        ::Formtastic::I18n.t(key, :model => '{{model}}').should == ::Formtastic::I18n::DEFAULT_VALUES[key]
+        ::Formtastic::I18n.t(key, :model => '%{model}').should == ::Formtastic::I18n::DEFAULT_VALUES[key]
       end
     end
     
@@ -89,7 +89,8 @@
           :labels => {
               :title    => "Hello world!",
               :post     => {:title => "Hello post!"},
-              :project  => {:title => "Hello project!"}
+              :project  => {:title => "Hello project!", :task => {:name => "Hello task name!"}},
+              :line_item => {:name => "Hello line item name!"}
             }
         }
       ::Formtastic::SemanticFormBuilder.i18n_lookups_by_default = true
@@ -123,6 +124,25 @@
       output_buffer.should have_tag("form label", /Hello project!/)
     end
     
+    it 'should be able to translate nested objects with nested translations' do
+      semantic_form_for(:project, :url => 'http://test.host') do |builder|
+        builder.semantic_fields_for(:task) do |f|
+          concat(f.input(:name))
+        end
+      end
+      output_buffer.should have_tag("form label", /Hello task name!/)
+    end
+
+    it 'should be able to translated nested objects with top level translations' do
+      semantic_form_for(:order, :url => 'http://test.host') do |builder|
+        builder.semantic_fields_for(:line_item) do |f|
+          concat(f.input(:name))
+        end
+      end
+      output_buffer.should have_tag("form label", /Hello line item name!/)
+    end
+
+
     # TODO: Add spec for namespaced models?
     
   end
diff --git a/spec/inputs/country_input_spec.rb b/spec/inputs/country_input_spec.rb
index 514e1cc00..67570b32d 100644
--- a/spec/inputs/country_input_spec.rb
+++ b/spec/inputs/country_input_spec.rb
@@ -56,8 +56,8 @@
     it "should be passed down to the country_select helper when provided" do
       priority_countries = ["Foo", "Bah"]
       semantic_form_for(@new_post) do |builder|
-        builder.stub!(:country_select).and_return("<select><option>...</option></select>")
-        builder.should_receive(:country_select).with(:country, priority_countries, {}, {}).and_return("<select><option>...</option></select>")
+        builder.stub!(:country_select).and_return(Formtastic::Util.html_safe("<select><option>...</option></select>"))
+        builder.should_receive(:country_select).with(:country, priority_countries, {}, {}).and_return(Formtastic::Util.html_safe("<select><option>...</option></select>"))
         
         concat(builder.input(:country, :as => :country, :priority_countries => priority_countries))
       end
@@ -69,8 +69,8 @@
       priority_countries.should_not be_nil
       
       semantic_form_for(@new_post) do |builder|
-        builder.stub!(:country_select).and_return("<select><option>...</option></select>")
-        builder.should_receive(:country_select).with(:country, priority_countries, {}, {}).and_return("<select><option>...</option></select>")
+        builder.stub!(:country_select).and_return(Formtastic::Util.html_safe("<select><option>...</option></select>"))
+        builder.should_receive(:country_select).with(:country, priority_countries, {}, {}).and_return(Formtastic::Util.html_safe("<select><option>...</option></select>"))
         
         concat(builder.input(:country, :as => :country))
       end
@@ -84,7 +84,7 @@
       
       before do
         @form = semantic_form_for(@new_post) do |builder|
-          builder.stub!(:country_select).and_return("<select><option>...</option></select>")
+          builder.stub!(:country_select).and_return(Formtastic::Util.html_safe("<select><option>...</option></select>"))
           concat(builder.input(:country))
         end
       end
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index 14f9cd0c4..27951146c 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -1,8 +1,8 @@
 # coding: utf-8
 require 'rubygems'
 
-gem 'activesupport', '>= 2.3.5'
-gem 'actionpack', '>= 2.3.5'
+gem 'activesupport', '>=2.3.7'
+gem 'actionpack', '>=2.3.7'
 require 'active_support'
 require 'action_pack'
 require 'action_view'
@@ -37,6 +37,7 @@
 end
 
 require File.expand_path(File.join(File.dirname(__FILE__), '../lib/formtastic'))
+require File.expand_path(File.join(File.dirname(__FILE__), '../lib/formtastic/util'))
 require File.expand_path(File.join(File.dirname(__FILE__), '../lib/formtastic/layout_helper'))
 
 module ActionView