diff --git a/src/main/java/org/jboss/virtual/plugins/context/AbstractVFSContext.java b/src/main/java/org/jboss/virtual/plugins/context/AbstractVFSContext.java
index 6846837d..ba565027 100644
--- a/src/main/java/org/jboss/virtual/plugins/context/AbstractVFSContext.java
+++ b/src/main/java/org/jboss/virtual/plugins/context/AbstractVFSContext.java
@@ -145,9 +145,9 @@ public URL getChildURL(VirtualFileHandler parent, String name) throws IOExceptio
               .append(":").append(rootUri.getPath());
       if(parent != null)
       {
-         String pPathName = null;
+         String pPathName;
          if(parent instanceof AbstractVirtualFileHandler)
-            pPathName = ((AbstractVirtualFileHandler)parent).getLocalPathName();
+            pPathName = parent.getLocalPathName();
          else
             pPathName = parent.getPathName();
 
diff --git a/src/main/java/org/jboss/virtual/plugins/context/file/FileSystemContext.java b/src/main/java/org/jboss/virtual/plugins/context/file/FileSystemContext.java
index 5ab684c5..c764b46e 100644
--- a/src/main/java/org/jboss/virtual/plugins/context/file/FileSystemContext.java
+++ b/src/main/java/org/jboss/virtual/plugins/context/file/FileSystemContext.java
@@ -65,7 +65,6 @@
  */
 public class FileSystemContext extends AbstractVFSContext
 {
-
    private static final Logger log = Logger.getLogger(ZipEntryContext.class);
 
    /** true if forcing fallback to vfsjar from default vfszip */
diff --git a/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContext.java b/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContext.java
index 21e59a37..ef79ebce 100644
--- a/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContext.java
+++ b/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContext.java
@@ -196,7 +196,6 @@ public ZipEntryContext(URL rootURL, VirtualFileHandler peer, ZipWrapper zipWrapp
     */
    private void init(URL localRootURL, VirtualFileHandler peer, ZipWrapper zipWrapper) throws IOException, URISyntaxException
    {
-
       if (zipWrapper == null)
       {
          if (localRootURL == null)
@@ -709,7 +708,8 @@ protected void finalize()
       try
       {
          super.finalize();
-         zipSource.close();
+         if (zipSource != null)
+            zipSource.close();
       }
       catch (Throwable ignored)
       {
diff --git a/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContextFactory.java b/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContextFactory.java
index 81921886..bf21720c 100644
--- a/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContextFactory.java
+++ b/src/main/java/org/jboss/virtual/plugins/context/zip/ZipEntryContextFactory.java
@@ -21,9 +21,6 @@
 */
 package org.jboss.virtual.plugins.context.zip;
 
-import org.jboss.virtual.plugins.context.AbstractContextFactory;
-import org.jboss.virtual.spi.VFSContext;
-
 import java.io.IOException;
 import java.net.MalformedURLException;
 import java.net.URI;
@@ -32,13 +29,15 @@
 import java.util.Map;
 import java.util.concurrent.ConcurrentHashMap;
 
+import org.jboss.virtual.plugins.context.AbstractContextFactory;
+import org.jboss.virtual.spi.VFSContext;
+
 /**
  * ContextFactory that keeps track of ZipEntryContexts
  *
  * @author <a href="strukelj@parsek.net">Marko Strukelj</a>
  * @version $Revision: 1.0 $
  */
-
 public class ZipEntryContextFactory extends AbstractContextFactory
 {
    /** registry of all ZipEntryContext instances */
@@ -75,7 +74,6 @@ public VFSContext getVFS(URL rootURL) throws IOException
 
       String longestMatchingKey = null;
       ZipEntryContext longestMatchingCtx = null;
-
       for(Map.Entry<String, ZipEntryContext> ent : ctxCache.entrySet())
       {
          if(key.startsWith(ent.getKey()))
@@ -87,17 +85,12 @@ public VFSContext getVFS(URL rootURL) throws IOException
             }
          }
       }
-
-      ZipEntryContext ctx = null;
       if(longestMatchingCtx != null)
-         ctx = longestMatchingCtx;
-
-      if(ctx != null)
-         return ctx;
+         return longestMatchingCtx;
 
       try
       {
-         ctx = new ZipEntryContext(rootURL);
+         return new ZipEntryContext(rootURL);
       }
       catch(URISyntaxException ex)
       {
@@ -105,11 +98,6 @@ public VFSContext getVFS(URL rootURL) throws IOException
          e.initCause(ex);
          throw e;
       }
-
-      // ZipEntryContext registers newly created context with this factory
-      // by calling registerContext() which puts a newly created context into ctxCache
-      
-      return ctx;
    }
 
    public static ZipEntryContextFactory getInstance()
diff --git a/src/test/java/org/jboss/test/virtual/test/JARSerializationUnitTestCase.java b/src/test/java/org/jboss/test/virtual/test/JARSerializationUnitTestCase.java
index 887ed7f8..5af8c312 100644
--- a/src/test/java/org/jboss/test/virtual/test/JARSerializationUnitTestCase.java
+++ b/src/test/java/org/jboss/test/virtual/test/JARSerializationUnitTestCase.java
@@ -121,6 +121,7 @@ public void testInnerJarFileSerialization() throws Exception
       assertEquals("jar1", title1);
       jar1DSMF.close();
    }
+
    /**
     * JBVFS-17 test
     * @throws Exception
@@ -156,7 +157,6 @@ public void testInnerJarFilesOnlyFileSerialization() throws Exception
       jar1DSMF.close();
    }
 
-/*
    public void testLevelZips() throws Exception
    {
       URL rootURL = getResource("/vfs/test");
@@ -203,7 +203,6 @@ public void testLevelZips() throws Exception
       textThree = two.findChild("level3.zip/test3.txt");
       testText(textThree);
    }
-*/
 
    protected void testText(VirtualFile file) throws Exception
    {
diff --git a/src/test/java/org/jboss/test/virtual/test/JARVFSContextUnitTestCase.java b/src/test/java/org/jboss/test/virtual/test/JARVFSContextUnitTestCase.java
index ef16cabe..9b5bd5b1 100644
--- a/src/test/java/org/jboss/test/virtual/test/JARVFSContextUnitTestCase.java
+++ b/src/test/java/org/jboss/test/virtual/test/JARVFSContextUnitTestCase.java
@@ -161,4 +161,24 @@ public void testInnerJarFileEntryOpenStream() throws Exception
       InputStream is = target.openStream();
       assertFalse("input stream closed", is.read() == -1);
    }
+
+   public void testInnerJarOverURL() throws Exception
+   {
+      URL url = getResource("/vfs/test/nested/" + getNestedName() + ".jar");
+      String urlString = url.toExternalForm();
+      URL vfsURL = new URL(getProtocol() + urlString.substring(4) + "/complex.jar");
+      InputStream is = vfsURL.openStream();
+      assertNotNull(is);
+   }
+
+   // we need to make sure this doesn't get touched before
+   protected String getNestedName()
+   {
+      return "nested";
+   }
+
+   protected String getProtocol()
+   {
+      return "vfsfile";
+   }
 }
diff --git a/src/test/java/org/jboss/test/virtual/test/ZipEntryVFSContextUnitTestCase.java b/src/test/java/org/jboss/test/virtual/test/ZipEntryVFSContextUnitTestCase.java
index d0b62aac..f4082796 100644
--- a/src/test/java/org/jboss/test/virtual/test/ZipEntryVFSContextUnitTestCase.java
+++ b/src/test/java/org/jboss/test/virtual/test/ZipEntryVFSContextUnitTestCase.java
@@ -26,6 +26,7 @@
 import java.io.InputStream;
 import java.io.OutputStream;
 import java.net.URL;
+import java.util.Map;
 
 import junit.framework.Test;
 import org.jboss.virtual.VFS;
@@ -43,6 +44,8 @@
  */
 public class ZipEntryVFSContextUnitTestCase extends JARVFSContextUnitTestCase
 {
+   private Map ctxCacheMap;
+
    public ZipEntryVFSContextUnitTestCase(String name)
    {
       super(name);
@@ -55,6 +58,25 @@ public static Test suite()
       return suite(ZipEntryVFSContextUnitTestCase.class);
    }
 
+/*
+   protected void setUp() throws Exception
+   {
+      super.setUp();
+
+      SecurityManager sm = System.getSecurityManager();
+      System.setSecurityManager(null);
+      try
+      {
+         Field field = ZipEntryContextFactory.class.getDeclaredField("ctxCache");
+         ctxCacheMap = (Map)field.get(ZipEntryContextFactory.getInstance());
+      }
+      finally
+      {
+         System.setSecurityManager(sm);
+      }
+   }
+*/
+
    protected VFSContext getVFSContext(String name) throws Exception
    {
       URL url = getResource("/vfs/context/jar/" + name + ".jar");
@@ -121,4 +143,15 @@ public void testNotAnArchive() throws Exception
       handler = ctx.getRoot().getChild("notanarchive.jar");
       assertTrue("is leaf", handler.isLeaf());
    }
+
+   // we need to make sure this doesn't get touched before
+   protected String getNestedName()
+   {
+      return super.getNestedName() + "_copy";
+   }
+
+   protected String getProtocol()
+   {
+      return "vfszip";
+   }
 }
\ No newline at end of file
diff --git a/src/test/resources/vfs/test/nested/nested.jar b/src/test/resources/vfs/test/nested/nested.jar
new file mode 100644
index 00000000..5fd5c3ff
Binary files /dev/null and b/src/test/resources/vfs/test/nested/nested.jar differ
diff --git a/src/test/resources/vfs/test/nested/nested_copy.jar b/src/test/resources/vfs/test/nested/nested_copy.jar
new file mode 100644
index 00000000..5fd5c3ff
Binary files /dev/null and b/src/test/resources/vfs/test/nested/nested_copy.jar differ