diff --git a/init.rb b/init.rb
index edb33f4..de8fcd6 100644
--- a/init.rb
+++ b/init.rb
@@ -1,12 +1,3 @@
 if "test" == RAILS_ENV
-  
-  ActiveRecord::Base.class_eval do
-    class << self
-      alias_method :old_add_observer, :add_observer
-      def add_observer(o); end
-    end
-    
-    extend NoPeepingToms
-  end
-  
+  ActiveRecord::Observer.send :include, NoPeepingToms
 end
diff --git a/lib/no_peeping_toms.rb b/lib/no_peeping_toms.rb
index ec7f78e..6d02720 100644
--- a/lib/no_peeping_toms.rb
+++ b/lib/no_peeping_toms.rb
@@ -1,16 +1,28 @@
 module NoPeepingToms
-  def with_observers(*observer_syms)
-    observer_names = [observer_syms].flatten
-    observers = observer_names.map do |o| 
-      if o.respond_to?(:instance) && o.instance.is_a?(ActiveRecord::Observer)
-        o.instance
-      else
-        o.to_s.classify.constantize.instance 
+  def self.included(base)
+    base.send :include, NoPeepingToms::InstanceMethods
+    base.extend NoPeepingToms::ClassMethods
+    base.alias_method_chain :update, :neighborhood_watch
+    base.cattr_accessor :allow_peeping_toms, :peeping_toms
+    base.allow_peeping_toms = false
+    base.peeping_toms = [] # toms that are allowed to peep
+  end
+
+  module InstanceMethods
+    def update_with_neighborhood_watch(*args)
+      if self.class.allow_peeping_toms || self.class.peeping_toms.include?(self)
+        update_without_neighborhood_watch(*args)
+      end
+    end
+  end
+  
+  module ClassMethods
+    def with_observers(*observer_syms)
+      self.peeping_toms = Array(observer_syms).map do |o| 
+        o.respond_to?(:instance) ? o.instance : o.to_s.classify.constantize.instance
       end
+      yield
+      self.peeping_toms.clear
     end
-    
-    observers.each { |o| old_add_observer(o) }
-    yield
-    observers.each { |o| delete_observer(o) }
   end
 end
diff --git a/spec/db/database.yml b/spec/db/database.yml
index 5746746..6dda097 100644
--- a/spec/db/database.yml
+++ b/spec/db/database.yml
@@ -1,3 +1,3 @@
 sqlite3:
   :adapter: sqlite3
-  :dbfile: vendor/plugins/no_peeping_toms/spec/db/no_peeping_toms.sqlite3.db
+  :dbfile: ":memory:"
diff --git a/spec/no_peeping_toms_spec.rb b/spec/no_peeping_toms_spec.rb
index 9890e38..69b787c 100644
--- a/spec/no_peeping_toms_spec.rb
+++ b/spec/no_peeping_toms_spec.rb
@@ -30,7 +30,7 @@ def before_update(person)
     end
 
     it "should register a name change with the person observer turned on by name" do
-      Person.with_observers("NoPeepingTomsSpec::PersonObserver") do
+      ActiveRecord::Observer.with_observers("NoPeepingTomsSpec::PersonObserver") do
         @person.update_attribute :name, "Name change"
         $observer_called_names.pop.should == "Name change"
       end
@@ -42,7 +42,7 @@ def before_update(person)
     end
     
     it "should register a name change with the person observer turned on by class reference" do
-      Person.with_observers(NoPeepingTomsSpec::PersonObserver) do
+      ActiveRecord::Observer.with_observers(NoPeepingTomsSpec::PersonObserver) do
         @person.update_attribute :name, "Name change"
         $observer_called_names.pop.should == "Name change"
       end
@@ -59,7 +59,7 @@ def before_update(person)
           $observer_called_names.push person.name
         end
       end
-      Person.with_observers(observer) do
+      ActiveRecord::Observer.with_observers(observer) do
         @person.update_attribute :name, "Name change"
         $observer_called_names.pop.should == "Name change"
       end
@@ -72,7 +72,7 @@ def before_update(person)
 
     
     it "should handle multiple observers" do
-      Person.with_observers("NoPeepingTomsSpec::PersonObserver", "NoPeepingTomsSpec::AnotherObserver") do
+      ActiveRecord::Observer.with_observers("NoPeepingTomsSpec::PersonObserver", "NoPeepingTomsSpec::AnotherObserver") do
         @person.update_attribute :name, "Name change"
         $observer_called_names.pop.should == "Name change"
       end
@@ -91,7 +91,7 @@ def before_update(person) ; $observer_called_names.push "#{person.name} 1" ; end
         def before_update(person) ; $observer_called_names.push "#{person.name} 2" ; end
       end
 
-      Person.with_observers(observer1, observer2) do
+      ActiveRecord::Observer.with_observers(observer1, observer2) do
         @person.update_attribute :name, "Name change"
         $observer_called_names.pop.should == "Name change 2"
         $observer_called_names.pop.should == "Name change 1"