diff --git a/bin/nodeunit b/bin/nodeunit
index 6d30ebb7e..f6b2c94e2 100755
--- a/bin/nodeunit
+++ b/bin/nodeunit
@@ -12,6 +12,7 @@ var files = [];
 var testrunner,
     config_file,
     config_param_found = false,
+    output_param_found = false,
     reporter_file = 'default',
     reporter_param_found = false;
 
@@ -23,6 +24,11 @@ var usage = "Usage: nodeunit [options] testmodule1.js testfolder [...] \n" +
             "  -h, --help        display this help and exit\n" +
             "  -v, --version     output version information and exit";
 
+
+// load default options
+var content = fs.readFileSync(__dirname + '/nodeunit.json', 'utf8');
+var options = JSON.parse(content);
+
 // a very basic pseudo --options parser
 args.forEach(function (arg) {
     if (arg.slice(0, 9) === "--config=") {
@@ -32,6 +38,13 @@ args.forEach(function (arg) {
     } else if (config_param_found) {
         config_file = arg;
         config_param_found = false;
+    } else if (arg.slice(0, 9) === "--output=") {
+        options.output = arg.slice(9);
+    } else if (arg === '--output') {
+        output_param_found = true;
+    } else if (output_param_found) {
+        options.output = arg;
+        output_param_found = false;
     } else if (arg.slice(0, 11) === "--reporter=") {
         reporter_file = arg.slice(11);
     } else if (arg === '--reporter') {
@@ -73,10 +86,6 @@ if (files.length === 0) {
     process.exit(1);
 }
 
-// load default options
-var content = fs.readFileSync(__dirname + '/nodeunit.json', 'utf8');
-var options = JSON.parse(content);
-
 if (config_file) {
     content = fs.readFileSync(config_file, 'utf8');
     var custom_options = JSON.parse(content);
diff --git a/lib/reporters/html.js b/lib/reporters/html.js
index f2612a33f..9686f75c2 100644
--- a/lib/reporters/html.js
+++ b/lib/reporters/html.js
@@ -29,14 +29,6 @@ exports.info = "Report tests result as HTML";
 
 exports.run = function (files, options) {
 
-    if (!options) {
-        // load default options
-        var content = fs.readFileSync(
-            __dirname + '/../../bin/nodeunit.json', 'utf8'
-        );
-        options = JSON.parse(content);
-    }
-
     var start = new Date().getTime();
     var paths = files.map(function (p) {
         return path.join(process.cwd(), p);
diff --git a/lib/reporters/junit.js b/lib/reporters/junit.js
index 92b115482..195799d3f 100644
--- a/lib/reporters/junit.js
+++ b/lib/reporters/junit.js
@@ -12,44 +12,84 @@ var nodeunit = require('../nodeunit'),
     fs = require('fs'),
     sys = require('sys'),
     path = require('path'),
+    async = require('../../deps/async'),
     AssertionError = require('assert').AssertionError,
+    child_process = require('child_process'),
     ejs = require('../../deps/ejs');
 
+
 /**
  * Reporter info string
  */
 
-exports.info = "jUnit tests reporter";
+exports.info = "jUnit XML test reports";
+
+
+/**
+ * Ensures a directory exists using mkdir -p.
+ *
+ * @param {String} path
+ * @param {Function} callback
+ * @api private
+ */
+
+var ensureDir = function (path, callback) {
+    var mkdir = child_process.spawn('mkdir', ['-p', path]);
+    mkdir.on('error', function (err) {
+        callback(err);
+        callback = function(){};
+    });
+    mkdir.on('exit', function (code) {
+        if (code === 0) callback();
+        else callback(new Error('mkdir exited with code: ' + code));
+    });
+};
+
 
 /**
- * Run all tests within each module, reporting the results to the command-line.
+ * Returns absolute version of a path. Relative paths are interpreted
+ * relative to process.cwd() or the cwd parameter. Paths that are already
+ * absolute are returned unaltered.
+ *
+ * @param {String} p
+ * @param {String} cwd
+ * @return {String}
+ * @api public
+ */
+
+var abspath = function (p, /*optional*/cwd) {
+    if (p[0] === '/') return p;
+    cwd = cwd || process.cwd();
+    return path.normalize(path.join(cwd, p));
+};
+
+
+/**
+ * Run all tests within each module, reporting the results to the command-line,
+ * then writes out junit-compatible xml documents.
  *
  * @param {Array} files
  * @api public
  */
 
 exports.run = function (files, opts, callback) {
-    opts.outputDirectory = opts.outputDirectory;
-    var options;
-    if (!options) {
-        // load default options
-        var content = fs.readFileSync(
-            __dirname + '/../../bin/nodeunit.json', 'utf8'
+    if (!opts.output) {
+        console.error(
+            'Error: No output directory defined.\n' +
+            '\tEither add an "output" property to your nodeunit.json config ' +
+            'file, or\n\tuse the --output command line option.'
         );
-        options = JSON.parse(content);
+        return;
     }
-
+    opts.output = abspath(opts.output);
     var error = function (str) {
-        return options.error_prefix + str + options.error_suffix;
+        return opts.error_prefix + str + opts.error_suffix;
     };
     var ok    = function (str) {
-        return options.ok_prefix + str + options.ok_suffix;
+        return opts.ok_prefix + str + opts.ok_suffix;
     };
     var bold  = function (str) {
-        return options.bold_prefix + str + options.bold_suffix;
-    };
-    var assertion_message = function (str) {
-        return options.assertion_prefix + str + options.assertion_suffix;
+        return opts.bold_prefix + str + opts.bold_suffix;
     };
 
     var start = new Date().getTime();
@@ -60,103 +100,82 @@ exports.run = function (files, opts, callback) {
     var modules = {}
     var curModule;
 
-    if (typeof StopIteration == "undefined") {
-        StopIteration = new Error("StopIteration");
-    }
-
     nodeunit.runFiles(paths, {
         moduleStart: function (name) {
-          curModule = { errorCount: 0
-                      , failureCount: 0
-                      , tests: 0
-                      , testcases: []
-                      , name: name
-                      };
-          modules[name] = curModule;
-        },
-        testDone: function (name, assertions) {
-            var testcase = {
+            curModule = {
+                errorCount: 0,
+                failureCount: 0,
+                tests: 0,
+                testcases: [],
                 name: name
             };
-            curModule.tests++;
-            if (!assertions.failures) {
-                sys.puts('✔ ' + name);
-            }
-            else {
-                sys.puts(error('✖ ' + name) + '\n');
-
-                // wrap in a try/catch block so we can 'break'
-                try {
-                  assertions.forEach(function (a) {
-                      if (!a.failed())
-                         return;
-
-                      testcase.failure = {
-                          message: a.message,
-                          backtrace: a.error.stack
-                      };
-
-                      if (a.error instanceof AssertionError) {
+            modules[name] = curModule;
+        },
+        testDone: function (name, assertions) {
+            var testcase = {name: name};
+            for (var i=0; i<assertions.length; assertions++) {
+                var a = assertions[i];
+                if (a.failed()) {
+                    testcase.failure = {
+                        message: a.message,
+                        backtrace: a.error.stack
+                    };
+
+                    if (a.error instanceof AssertionError) {
                         curModule.failureCount++;
-                      }
-                      else {
+                    }
+                    else {
                         curModule.errorCount++;
-                      }
-
-                      // Sadly, the jUnit schema doesn't seem to allow for
-                      // multiple assertion failures per testcase, so here
-                      // we abort after the first one.
-                      throw StopIteration;
-                  });
-                }
-                catch (error) {
-                    if (error != StopIteration) throw error;
+                    }
+                    break;
                 }
             }
+            curModule.tests++;
             curModule.testcases.push(testcase);
         },
         done: function (assertions) {
             var end = new Date().getTime();
             var duration = end - start;
-            if (assertions.failures) {
-                sys.puts(
-                    '\n' + bold(error('FAILURES: ')) + assertions.failures +
-                    '/' + assertions.length + ' assertions failed (' +
-                    assertions.duration + 'ms)'
-                );
-            }
-            else {
-                sys.puts(
-                    '\n' + bold(ok('OK: ')) + assertions.length +
-                    ' assertions (' + assertions.duration + 'ms)'
-                );
-            }
 
-            var moduleNames = Object.keys(modules);
-            var i = moduleNames.length;
-            while (i--) {
-               writeTestcaseXML(modules[moduleNames[i]]);
-            }
+            ensureDir(opts.output, function (err) {
+                var tmpl = __dirname + "/../../share/junit.xml.ejs";
+                fs.readFile(tmpl, function (err, data) {
+                    if (err) throw err;
+                    var tmpl = data.toString();
+
+                    async.forEach(Object.keys(modules), function (k, cb) {
+                        var module = modules[k];
+                        var rendered = ejs.render(tmpl, {
+                            locals: {suites: [module]}
+                        });
+                        var filename = path.join(
+                            opts.output,
+                            module.name + '.xml'
+                        );
+                        sys.puts('Writing ' + filename);
+                        fs.writeFile(filename, rendered, cb);
+                    },
+                    function (err) {
+                        if (err) throw err;
+                        else if (assertions.failures) {
+                            sys.puts(
+                                '\n' + bold(error('FAILURES: ')) +
+                                assertions.failures + '/' +
+                                assertions.length + ' assertions failed (' +
+                                assertions.duration + 'ms)'
+                            );
+                        }
+                        else {
+                            sys.puts(
+                                '\n' + bold(ok('OK: ')) + assertions.length +
+                                ' assertions (' + assertions.duration + 'ms)'
+                            );
+                        }
+                    });
+
+                });
+            });
 
-            function writeTestcaseXML(module) {
-                fs.readFile
-                  ( __dirname + "/../../share/junit.xml.ejs"
-                  , function (error, data) {
-                        if (error) throw error;
-                        var rendered
-                          = ejs.render
-                              ( data.toString()
-                              , { locals: { suites: [ module ] } });
-
-                        var filename
-                          = path.join
-                              ( opts.outputDirectory
-                              , module.name + '.xml');
-
-                        puts("Writing to " + filename);
-                        fs.writeFile(filename, rendered);
-                  });
-            }
         }
     });
 }
diff --git a/lib/utils.js b/lib/utils.js
index b530b27f9..ee81806fd 100644
--- a/lib/utils.js
+++ b/lib/utils.js
@@ -167,4 +167,3 @@ exports.httputil = function (cgi, envReady) {
         }
     });
 };
-