diff --git a/uppdev/cpp2/cpp.cpp b/uppdev/cpp2/cpp.cpp
index 73aa84184..798f02ef0 100644
--- a/uppdev/cpp2/cpp.cpp
+++ b/uppdev/cpp2/cpp.cpp
@@ -83,43 +83,12 @@ String CppMacro::Expand(const Vector<String>& p) const
 	return r;
 }
 
-String Cpp::Define(const char *s)
+void Cpp::Define(const char *s)
 {
-	CParser p(s);
-	String id;
-	String r;
-	try {
-		if(!p.IsId())
-			return Null;
-		id = p.ReadId();
-		r << "#define " << id;
-		CppMacro& m = macro.GetAdd(id);
-		m.param.Clear();
-		if(p.Char('(')) {
-			r << '(';
-			bool next = false;
-			while(p.IsId()) {
-				String pid = p.ReadId();
-				if(next)
-					r << ", ";
-				r << pid;
-				m.param.Add(p.ReadId());
-				p.Char(',');
-				next = true;
-			}
-			if(p.Char3('.', '.', '.')) {
-				m.variadic = true;
-				if(next)
-					r << ", ";
-				r << "...";
-			}
-			p.Char(')');
-			r << ')';
-		}
-		m.body = p.GetPtr();
-	}
-	catch(CParser::Error) {}
-	return r;
+	CppMacro m;
+	String id = m.Define(s);
+	if(id.GetCount())
+		macro.GetAdd(id) = pick(m);
 }
 
 const char *Cpp::SkipString(const char *s)
@@ -157,6 +126,12 @@ void Cpp::ParamAdd(Vector<String>& param, const char *s, const char *e)
 }
 
 String Cpp::Expand(const char *s)
+{
+	Index<String> notmacro;
+	return Expand(s, notmacro);
+}
+
+String Cpp::Expand(const char *s, Index<String>& notmacro)
 {
 	StringBuffer r;
 	while(*s) {
@@ -177,12 +152,7 @@ String Cpp::Expand(const char *s)
 				s++;
 			String id(b, s);
 			if(notmacro.Find(id) < 0) {
-				const CppMacro *m = NULL;
-				const Cpp *p = this;
-				while(!m && p) {
-					m = p->macro.FindPtr(id);
-					p = p->parent;
-				}
+				const CppMacro *m = macro.FindPtr(id);
 				if(m && !id.StartsWith("__$allowed_on_")) {
 					Vector<String> param;
 					const char *s0 = s;
@@ -229,8 +199,6 @@ String Cpp::Expand(const char *s)
 					id = '\x1a' + Expand(m->Expand(param));
 					notmacro.Trim(ti);
 				}
-				else
-					notmacro.Add(id);
 			}
 			r.Cat(id);
 		}
@@ -251,37 +219,64 @@ String Cpp::Expand(const char *s)
 	return r;
 }
 
-
-void Cpp::DoCpp(Stream& in, Index<String>& header)
+bool Cpp::Preprocess(const String& sourcefile, Stream& in, const String& currentfile)
 {
+	macro.Clear();
 	Vector<String> ignorelist = Split("__declspec;__cdecl;"
-                                         "__out;__in;__inout;__deref_in;__deref_inout;__deref_out;"
-                                         "__AuToQuOtE;__xin;__xout;"
-                                         "$drv_group;$allowed_on_parameter",
-                                         ';');
+                                      "__out;__in;__inout;__deref_in;__deref_inout;__deref_out;"
+                                      "__AuToQuOtE;__xin;__xout;"
+                                      "$drv_group;$allowed_on_parameter",
+                                      ';');
 	for(int i = 0; i < ignorelist.GetCount(); i++)
 		macro.GetAdd(ignorelist[i]).variadic = true;
-	Do(in, header);
+	done = false;
+	incomment = false;
+	Index<String> visited;
+	Do(NormalizePath(sourcefile), in, NormalizePath(currentfile), visited);
+	return done;
 }
 
-void Cpp::Parse(StringBuffer& result)
-{
-	DDUMP(result.GetCount());
-	String r = result;
-	_DBG_ SaveFile("c:/xxx/cpp/" + GetFileTitle(path) + ".hpp", r);
-	DDUMP(result.GetCount());
-	StringStream ss(r);
-	DDUMP(result.GetCount());
-	Upp::Parse(ss, Vector<String>(), base, path, THISBACK(AddError));
-}
-
-void Cpp::Do(Stream& in, Index<String>& header)
+void Cpp::Do(const String& sourcefile, Stream& in, const String& currentfile, Index<String>& visited)
 {
+	DDUMP(currentfile);
+	if(visited.Find(currentfile) >= 0 || visited.GetCount() > 20000)
+		return;
+	visited.Add(currentfile);
+	String current_folder = GetFileFolder(currentfile);
+	if(sourcefile != currentfile) {
+		const PPFile& pp = GetPPFile(currentfile);
+		pp.Dump();
+		for(int i = 0; i < pp.item.GetCount() && !done; i++) {
+			const PPItem& m = pp.item[i];
+			if(m.type == PP_DEFINE) {
+				if(m.macro.body.GetCount())
+					macro.GetAdd(m.id) = clone(m.macro);
+			}
+			else
+			if(m.type == PP_INCLUDE) {
+				String s = GetIncludePath(m.id, current_folder, include_path);
+				if(s.GetCount())
+					Do(sourcefile, in, s, visited);
+			}
+			else
+			if(m.type == PP_NAMESPACE)
+				namespace_stack.Add(m.id);
+			else
+			if(m.type == PP_NAMESPACE_END && namespace_stack.GetCount())
+				namespace_stack.Drop();
+			else
+			if(m.type == PP_USING)
+				namespace_using.FindAdd(m.id);
+		}
+		return;
+	}
+	
 	incomment = false;
 	StringBuffer result;
 	result.Clear();
 	result.Reserve(16384);
 	int lineno = 0;
+	bool incomment = false;
 	while(!in.IsEof()) {
 		String l = in.GetLine();
 		lineno++;
@@ -291,46 +286,20 @@ void Cpp::Do(Stream& in, Index<String>& header)
 			l.Trim(l.GetLength() - 1);
 			l.Cat(in.GetLine());
 		}
-		const char *s = l;
-		while(*s == ' ')
-			s++;
-		if(*s == '#') {
-			if(strncmp(s + 1, "define", 6) == 0)
-				result << Define(s + 7) << "\n";
+		RemoveComments(l, incomment);
+		CParser p(l);
+		if(p.Char('#')) {
+			if(p.Id("define")) {
+				result.Cat(l + "\n");
+				Define(p.GetPtr());
+			}
 			else {
-				result.Cat("\n");
-				if(strncmp(s + 1, "include", 7) == 0) {
-					String hdr = Expand(s + 8);
-					String header_path = GetIncludePath(hdr);
-					if(path.GetCount() == 0) DLOG("Include file " << String(s + 8) << " not found");
-					String include = String().Cat() << path << ':' << lineno << ':' << header_path;
-					if(path.GetCount() && header.Find(include) < 0) {
-						DLOG(">>> " << l << " -> " << header_path << LOG_BEGIN);
-						Parse(result);
-						header.Add(include);
-						Cpp cpp;
-						cpp.WhenError = Proxy(WhenError);
-						cpp.path = header_path;
-						cpp.filedir = GetFileFolder(header_path);
-						cpp.include_path = include_path;
-						cpp.parent = this;
-						DDUMP(cpp.macro.GetCount());
-						FileIn in(header_path);
-						cpp.Do(in, header);
-						DLOG(path << ": " << cpp.macro);
-						DLOG("USED: " << cpp.usedmacro);
-						// TODO: caching, this is the place to retrieve used macro values
-						{ RTIMING("Mixing macros");
-						for(int i = 0; i < cpp.macro.GetCount(); i++)
-							macro.GetAdd(cpp.macro.GetKey(i)) = pick(cpp.macro[i]);
-						}
-						DDUMP(macro.GetCount());
-						RTIMING("Mixing bases");
-						for(int i = 0; i < cpp.base.GetCount(); i++)
-							base.GetAdd(cpp.base.GetKey(i)).AppendPick(cpp.base[i]);
-						DLOG("---" << LOG_END);
-					}
-					notmacro.Clear();
+				result.Cat('\n');
+				if(p.Id("include")) {
+					String hdr = Expand(p.GetPtr());
+					String header_path = GetIncludePath(hdr, current_folder, include_path);
+					if(header_path.GetCount())
+						Do(Null, NilStream(), header_path, visited);
 				}
 			}
 		}
@@ -340,29 +309,6 @@ void Cpp::Do(Stream& in, Index<String>& header)
 		while(el--)
 			result.Cat("\n");
 	}
-	Parse(result);
-}
-
-String Cpp::GetIncludePath(const char *s)
-{
-	while(IsSpace(*s))
-		s++;
-	int type = *s;
-	if(type == '<' || type == '\"' || type == '?') {
-		s++;
-		String name;
-		if(type == '<') type = '>';
-		while(*s != '\r' && *s != '\n') {
-			if(*s == type) {
-				if(type == '\"') {
-					String fn = NormalizePath(name, filedir);
-					if(FileExists(fn))
-						return fn;
-				}
-				return GetFileOnPath(name, include_path, false);
-			}
-			name.Cat(*s++);
-		}
-	}
-	return Null;
+	done = true;
+	output = result;
 }
diff --git a/uppdev/cpp2/cpp.h b/uppdev/cpp2/cpp.h
index 454dd9a58..4e40a318f 100644
--- a/uppdev/cpp2/cpp.h
+++ b/uppdev/cpp2/cpp.h
@@ -7,6 +7,8 @@
 
 using namespace Upp;
 
+void RemoveComments(String& l, bool& incomment);
+
 struct CppMacro : Moveable<CppMacro>, DeepCopyOption<CppMacro> {
 	String        body;
 	Index<String> param;
@@ -37,7 +39,7 @@ struct PPItem {
 	CppMacro macro;
 };
 
-struct PPFile {
+struct PPFile { // contains "macro extract" of file, only info about macros defined and namespaces
 	FileTime       filetime;
 	Array<PPItem>  item;
 	Index<String>  includes;
@@ -54,52 +56,32 @@ const PPFile& GetPPFile(const char *path);
 
 String GetIncludePath(const String& s, const String& filedir, const String& include_path);
 
-bool   IncludesFile(const String& include, const String& path, const String& include_path);
+bool   IncludesFile(const String& parent_path, const String& header_path, const String& include_path);
 
 struct Cpp {
 	bool                        incomment;
+	bool                        done;
 	
-	String                      path;
-	String                      filedir;
 	String                      include_path;
 	
-	Index<String>               header;
 	VectorMap<String, CppMacro> macro;
+
+	String                      output;
 	Index<String>               usedmacro;
-	Index<String>               notmacro;
+	Index<String>               namespace_using;
+	Vector<String>              namespace_stack;
 	
-	CppBase                     base;
-	
-	Cpp                        *parent;
-	
-	void SyncSet();
-	
-	String   Define(const char *s);
+	void   Define(const char *s);
 
 	static const char *SkipString(const char *s);
-	void ParamAdd(Vector<String>& param, const char *b, const char *e);
-
+	void   ParamAdd(Vector<String>& param, const char *b, const char *e);
+	String Expand(const char *s, Index<String>& notmacro);
 	String Expand(const char *s);
-	void   Include(const char *s);
-	String GetIncludePath(const char *s);
-	
-	void   Parse(StringBuffer& result);
+	void   Do(const String& sourcefile, Stream& in, const String& currentfile, Index<String>& visited);
 
-	void   Do(Stream& in, Index<String>& header);
-	void   DoCpp(Stream& in, Index<String>& header);
-	
-	Callback3<const String&, int, const String&> WhenError;
-	
-	void AddError(int ln, const String& s) { WhenError(path, ln, s); }
-	
-	Cpp() { parent = NULL; }
+	bool   Preprocess(const String& sourcefile, Stream& in, const String& currentfile);
 	
 	typedef Cpp CLASSNAME;
 };
 
-String Preprocess(const String& filename, const String& include_path);
-
-String Preprocess(const String& sourcefile, Stream& in, const String& surrogatefile,
-                  const String& include_path);
-
 #endif
diff --git a/uppdev/cpp2/cpp.txt b/uppdev/cpp2/cpp.txt
index 30d1625e9..501a6bbaf 100644
--- a/uppdev/cpp2/cpp.txt
+++ b/uppdev/cpp2/cpp.txt
@@ -1,16 +1 @@
-%'\1'%"\2"%
-%1 +1%3%
-%"1" "2" ","%','%
-"a"
-"a x y"
-"\"A\""
-a3
-3a
-a#
-a"X"
-"Y""X"
-x
-haha
-haha ble
-alfa xy.r #hahaha
 	
\ No newline at end of file
diff --git a/uppdev/cpp2/cpp2.upp b/uppdev/cpp2/cpp2.upp
index c2f81fd36..cfbb160b5 100644
--- a/uppdev/cpp2/cpp2.upp
+++ b/uppdev/cpp2/cpp2.upp
@@ -4,7 +4,6 @@ uses
 
 file
 	cpp.h,
-	expand.cpp,
 	ppfile.cpp,
 	cpp.cpp,
 	main.cpp,
diff --git a/uppdev/cpp2/expand.cpp b/uppdev/cpp2/expand.cpp
deleted file mode 100644
index 25633d86a..000000000
--- a/uppdev/cpp2/expand.cpp
+++ /dev/null
@@ -1,94 +0,0 @@
-#include "cpp.h"
-
-#if 0
-String MacroExpand(const char *s, ArrayMap<String, CppMacro>& macro, Index<String>& notmacro,
-                   bool& incomment)
-{
-	StringBuffer r;
-	while(*s) {
-		if(incomment) {
-			if(s[0] == '*' && s[1] == '/') {
-				incomment = false;
-				s += 2;
-				r.Cat("*/");
-			}
-			else
-				r.Cat(*s++);
-		}
-		else
-		if(iscib2(*s)) {
-			const char *b = s;
-			s++;
-			while(iscid2(*s))
-				s++;
-			String id(b, s);
-			if(notmacro.Find(id) < 0) {
-				const CppMacro *m = macro.FindPtr(id);
-				if(m && !id.StartsWith("__$allowed_on_")) {
-					Vector<String> param;
-					const char *s0 = s;
-					while(*s && (byte)*s <= ' ')
-						s++;
-					if(*s == '(') {
-						s++;
-						const char *b = s;
-						int level = 0;
-						for(;;)
-							if(*s == ',' && level == 0) {
-								ParamAdd(param, b, s);
-								s++;
-								b = s;
-							}
-							else
-							if(*s == ')') {
-								s++;
-								if(level == 0) {
-									ParamAdd(param, b, s - 1);
-									break;
-								}
-								level--;
-							}
-							else
-							if(*s == '(') {
-								s++;
-								level++;
-							}
-							else
-							if(*s == '\0')
-								break;
-							else
-							if(*s == '\"' || *s == '\'')
-								s = SkipString(s);
-							else
-								s++;
-					}
-					else
-						s = s0; // otherwise we eat spaces after parameterless macro
-					usedmacro.FindAdd(id);
-					int ti = notmacro.GetCount();
-					notmacro.Add(id);
-					id = '\x1a' + Expand(m->Expand(param));
-					notmacro.Trim(ti);
-				}
-				else
-					notmacro.Add(id);
-			}
-			r.Cat(id);
-		}
-		else
-		if(s[0] == '/' && s[1] == '*') {
-			incomment = true;
-			s += 2;
-			r.Cat("/*");
-		}
-		else
-		if(s[0] == '/' && s[1] == '/') {
-			r.Cat(s);
-			break;
-		}
-		else
-			r.Cat(*s++);
-	}
-	return r;
-}
-#endif
\ No newline at end of file
diff --git a/uppdev/cpp2/main.cpp b/uppdev/cpp2/main.cpp
index 7ad747ac7..036106f01 100644
--- a/uppdev/cpp2/main.cpp
+++ b/uppdev/cpp2/main.cpp
@@ -12,42 +12,18 @@ String include_path =
 	"C:\\Program Files (x86)\\Microsoft Visual Studio 9.0\\Vc\\Include;C:\\Program Files\\Microsoft SDKs\\Windows\\v7.0\\Include;C:\\u\\OpenSSL-Win32\\include;C:\\u\\pgsql\\include;C:\\Program Files (x86)\\MySQL\\MySQL Connector C 6.1\\include;"
 	";c:/u/upp.src/uppsrc";
 
-void Test(const char *path)
+void Test(const char *sourcefile, const char *currentfile)
 {
-	DDUMP(sizeof(CppItem));
+	DDUMP(sourcefile);
+	DDUMP(currentfile);
 	Cpp cpp;
-	cpp.WhenError = callback(AddError);
-	cpp.path = path;
-	cpp.filedir = GetFileFolder(path);
-//	cpp.include_path = cpp.filedir;//"C:\\Program Files (x86)\\Microsoft Visual Studio 10.0\\Vc\\Include;C:\\Program Files\\Microsoft SDKs\\Windows\\v7.1\\Include;C:\\OpenSSL-Win32\\include;C:\\u\\pgsql\\include;C:\\u\\OpenSSL-Win32\\include";
-	cpp.include_path << "C:\\Program Files (x86)\\Microsoft Visual Studio 10.0\\Vc\\Include;C:\\Program Files\\Microsoft SDKs\\Windows\\v7.1\\Include;C:\\OpenSSL-Win32\\include;C:\\u\\pgsql\\include;C:\\u\\OpenSSL-Win32\\include;";
-	cpp.include_path << "C:\\Program Files (x86)\\Microsoft Visual Studio 9.0\\Vc\\Include;C:\\Program Files\\Microsoft SDKs\\Windows\\v7.0\\Include;C:\\u\\OpenSSL-Win32\\include;C:\\u\\pgsql\\include;C:\\Program Files (x86)\\MySQL\\MySQL Connector C 6.1\\include;";
-	cpp.include_path << ";c:/u/upp.src/uppsrc";
-	FileIn in(path);
-	Index<String> inc;
-	cpp.DoCpp(in, inc);
-//	StringStream ss(pp);
-//	Parse(ss, Vector<String>() << "__cdecl", base, path, callback(AddError));
-	DLOG("=======================");
-	DUMPC(cpp.macro.GetKeys());
-	DLOG("=======================");
-	DUMPC(inc);
-	DLOG("=======================");
-	DUMPC(errs);
-	DLOG("=======================");
-	Qualify(cpp.base);
-	String out;
-	for(int i = 0; i < cpp.base.GetCount(); i++) {
-		out << Nvl(cpp.base.GetKey(i), "<globals>") << " {\n";
-		const Array<CppItem>& ma = cpp.base[i];
-		for(int j = 0; j < ma.GetCount(); j++) {
-			const CppItem& m = ma[j];
-			out << '\t' << CppItemKindAsString(m.kind) << ' ' << m.qitem << ' ' << m.line << "\n";
-			// DDUMP(StoreAsString(const_cast<CppItem&>(m)).GetCount());
-		}
-		out << "}\n";
-	}
-	LOG(out);
+	cpp.include_path = include_path;
+	FileIn in(sourcefile);
+	DDUMP(cpp.Preprocess(sourcefile, in, currentfile));
+	DDUMP(cpp.namespace_stack);
+	DDUMP(cpp.output);
+	DDUMP(cpp.usedmacro);
+	DLOG("=================================");
 }
 
 void RecursePP(const char *path, const char *include_path, Index<String>& visited)
@@ -66,6 +42,20 @@ void RecursePP(const char *path, const char *include_path, Index<String>& visite
 	p.Dump();
 }
 
+void TestC(const char *ln)
+{
+	for(int q = 0; q < 2; q++) {
+		bool incomment = q;
+		String l = ln;
+		DDUMP(incomment);
+		LOG(l);
+		RemoveComments(l, incomment);
+		LOG(l);
+		LOG(incomment);
+		LOG("-----------------------");
+	}
+}
+
 CONSOLE_APP_MAIN
 {
 	StdLogSetup(LOG_FILE, NULL, 150000000);
@@ -78,6 +68,25 @@ CONSOLE_APP_MAIN
 //	f.Parse(in);
 //	f.Dump();
 
+
+//	Test("c:/u/upp.src/uppsrc/CtrlLib/EditField.cpp", "c:/u/upp.src/uppsrc/CtrlLib/EditField.cpp");
+#if 0
+	TestC("test");
+	TestC("*/ test /*c2*/ /* comment");
+	TestC(" */ test /*c2*/ a /* comment */");
+	TestC("  */ test /*c2*/ a /*/* comment */");
+	return;
+#endif	
+	{
+		RTIMING("Pass1");
+		Test("C:\\u\\upp.src\\uppsrc\\Core\\Profile.h", "C:\\u\\upp.src\\uppsrc\\Core\\Format.cpp");
+	}
+	if(0) {
+		RTIMING("Pass2");
+		Test("C:\\u\\upp.src\\uppsrc\\Core\\Format.h", "C:\\u\\upp.src\\uppsrc\\Core\\Format.cpp");
+	}
+
+#if 0
 	{
 		RTIMING("Pass1");
 		Index<String> visited;
@@ -85,6 +94,7 @@ CONSOLE_APP_MAIN
 	}
 	
 	DDUMP(IncludesFile("c:/u/upp.src/uppsrc/CtrlLib/EditField.cpp", "c:/u/upp.src/uppsrc/Core/Core.h", include_path));
+	DDUMP(IncludesFile("c:/u/upp.src/uppsrc/CtrlLib/EditField.cpp", "c:/u/upp.src/uppsrc/Core/Core2.h", include_path));
 	
 	for(int i = 0; i < 1000; i++) {
 		RTIMING("IncludesFile true");
@@ -95,7 +105,7 @@ CONSOLE_APP_MAIN
 		RTIMING("IncludesFile false");
 		IncludesFile("c:/u/upp.src/uppsrc/CtrlLib/EditField.cpp", "c:/u/upp.src/uppsrc/Core/Core1.h", include_path);
 	}
-
+#endif
 //	GetPPFile(GetDataFile("test.h")).Dump();
 	return;
 }
diff --git a/uppdev/cpp2/ppfile.cpp b/uppdev/cpp2/ppfile.cpp
index 5d32a9b0b..1c2fbb3d1 100644
--- a/uppdev/cpp2/ppfile.cpp
+++ b/uppdev/cpp2/ppfile.cpp
@@ -1,5 +1,37 @@
 #include "cpp.h"
 
+void SetSpaces(String& l, int pos, int count)
+{
+	StringBuffer s = l;
+	memset(~s + pos, ' ', count);
+	l = s;
+}
+
+void RemoveComments(String& l, bool& incomment)
+{
+	int q = -1;
+	int w = -1;
+	if(incomment)
+		q = w = 0;
+	else {
+		q = l.Find("/*");
+		if(q >= 0)
+			w = q + 2;
+	}
+	while(q >= 0) {
+		int eq = l.Find("*/", w);
+		if(eq < 0) {
+			incomment = true;
+			SetSpaces(l, q, l.GetCount() - q);
+			return;
+		}
+		SetSpaces(l, q, eq + 2 - q);
+		incomment = false;
+		q = l.Find("/*");
+		w = q + 2;
+	}
+}
+
 String CppMacro::Define(const char *s)
 {
 	CParser p(s);
@@ -42,13 +74,15 @@ void PPFile::Parse(Stream& in)
 	bool was_using = false;
 	bool was_namespace = false;
 	int  level = 0;
+	bool incomment = false;
 	Vector<int> namespace_block;
-	while(!in.IsEof()) { // TODO: Do comments...
+	while(!in.IsEof()) {
 		String l = in.GetLine();
 		while(*l.Last() == '\\' && !in.IsEof()) {
 			l.Trim(l.GetLength() - 1);
 			l.Cat(in.GetLine());
 		}
+		RemoveComments(l, incomment);
 		try {
 			CParser p(l);
 			if(p.Char('#')) {