diff --git a/features/create_sites.feature b/features/create_sites.feature
index d10f1625..4f5385b0 100644
--- a/features/create_sites.feature
+++ b/features/create_sites.feature
@@ -29,7 +29,7 @@ Feature: Create sites
   Scenario: Basic site with layout and a post
     Given I have a _layouts directory
     And I have a _posts directory
-    And I have the following post:
+    And I have the following posts:
       | title    | date      | layout  | content                               |
       | Wargames | 3/27/2009 | default | The only winning move is not to play. |
     And I have a default layout that contains "Post Layout: {{ content }}"
@@ -37,6 +37,36 @@ Feature: Create sites
     Then the _site directory should exist
     And I should see "Post Layout: <p>The only winning move is not to play.</p>" in "_site/2009/03/27/wargames.html"
 
+  Scenario: Basic site with layouts, pages, posts and files
+    Given I have a _layouts directory
+    And I have a page layout that contains "Page Layout: {{ site.posts.size }}"
+    And I have a post layout that contains "Post Layout: {{ content }}"
+    And I have an "index.html" page with layout "page" that contains "site index page"
+    And I have a blog directory
+    And I have a "blog/index.html" page with layout "page" that contains "category index page"
+    And I have an "about.html" file that contains "No replacement {{ site.posts.size }}"
+    And I have an "another_file" file that contains ""
+    And I have a _posts directory
+    And I have the following posts:
+      | title     | date      | layout  | content                                |
+      | entry1    | 3/27/2009 | post    | content for entry1.                    |
+      | entry2    | 4/27/2009 | post    | content for entry2.                    |
+    And I have a category/_posts directory
+    And I have the following posts in "category":
+      | title     | date      | layout  | content                                |
+      | entry3    | 5/27/2009 | post    | content for entry3.                    |
+      | entry4    | 6/27/2009 | post    | content for entry4.                    |
+    When I run jekyll
+    Then the _site directory should exist
+    And I should see "Page Layout: 4" in "_site/index.html"
+    And I should see "No replacement \{\{ site.posts.size \}\}" in "_site/about.html"
+    And I should see "" in "_site/another_file"
+    And I should see "Page Layout: 4" in "_site/blog/index.html"
+    And I should see "Post Layout: <p>content for entry1.</p>" in "_site/2009/03/27/entry1.html"
+    And I should see "Post Layout: <p>content for entry2.</p>" in "_site/2009/04/27/entry2.html"
+    And I should see "Post Layout: <p>content for entry3.</p>" in "_site/category/2009/05/27/entry3.html"
+    And I should see "Post Layout: <p>content for entry4.</p>" in "_site/category/2009/06/27/entry4.html"
+
   Scenario: Basic site with include tag
     Given I have a _includes directory
     And I have an "index.html" page that contains "Basic Site with include tag: {% include about.textile %}"
diff --git a/features/pagination.feature b/features/pagination.feature
index b52ddcf2..2b1b3467 100644
--- a/features/pagination.feature
+++ b/features/pagination.feature
@@ -6,35 +6,22 @@ Feature: Site pagination
   Scenario Outline: Paginate with N posts per page
     Given I have a configuration file with "paginate" set to "<num>"
     And I have a _layouts directory
-    And I have an "index.html" file that contains "Basic Site"
+    And I have an "index.html" file that contains "{{ paginator.posts.size }}"
     And I have a _posts directory
     And I have the following post:
       | title     | date      | layout  | content                                |
       | Wargames  | 3/27/2009 | default | The only winning move is not to play.  |
       | Wargames2 | 4/27/2009 | default | The only winning move is not to play2. |
-      | Wargames3 | 5/27/2009 | default | The only winning move is not to play2. |
+      | Wargames3 | 5/27/2009 | default | The only winning move is not to play3. |
+      | Wargames4 | 6/27/2009 | default | The only winning move is not to play4. |
     When I run jekyll
-    Then the _site/page2 directory should exist
-    And the _site/page2/index.html file should exist
-
+    Then the _site/page<exist> directory should exist
+    And the "_site/page<exist>/index.html" file should exist
+    And I should see "<posts>" in "_site/page<exist>/index.html"
+    And the "_site/page<not_exist>/index.html" file should not exist
+    
     Examples:
-      | num |
-      | 1   |
-      | 2   |
-
-  Scenario: Correct liquid paginator replacements
-    Given I have a configuration file with "paginate" set to "1"
-    And I have a _layouts directory
-    And I have an "index.html" file that contains "{{ paginator.page }}"
-    And I have a _posts directory
-    And I have the following post:
-      | title     | date      | layout  | content                                |
-      | Wargames  | 3/27/2009 | default | The only winning move is not to play.  |
-      | Wargames2 | 4/27/2009 | default | The only winning move is not to play2. |
-    When I run jekyll
-    Then the _site/index.html file should exist
-    And I should see "1" in "_site/index.html"
-    Then the _site/page2 directory should exist
-    And the _site/page2/index.html file should exist
-    And I should see "2" in "_site/page2/index.html"
-    
\ No newline at end of file
+      | num | exist | posts | not_exist |
+      | 1   | 4     | 1     | 5         |
+      | 2   | 2     | 2     | 3         |
+      | 3   | 2     | 1     | 3         |
diff --git a/features/step_definitions/jekyll_steps.rb b/features/step_definitions/jekyll_steps.rb
index 3bf34736..9fc91013 100644
--- a/features/step_definitions/jekyll_steps.rb
+++ b/features/step_definitions/jekyll_steps.rb
@@ -13,7 +13,7 @@ Given /^I have a blank site in "(.*)"$/ do |path|
 end
 
 # Like "I have a foo file" but gives a yaml front matter so jekyll actually processes it
-Given /^I have an "(.*)" page(?: with (.*) "(.*)")? that contains "(.*)"$/ do |file, key, value, text|
+Given /^I have an? "(.*)" page(?: with (.*) "(.*)")? that contains "(.*)"$/ do |file, key, value, text|
   File.open(file, 'w') do |f|
     f.write <<EOF
 ---
@@ -25,7 +25,7 @@ EOF
   end
 end
 
-Given /^I have an "(.*)" file that contains "(.*)"$/ do |file, text|
+Given /^I have an? "(.*)" file that contains "(.*)"$/ do |file, text|
   File.open(file, 'w') do |f|
     f.write(text)
     f.close
@@ -40,7 +40,7 @@ Given /^I have a (.*) layout that contains "(.*)"$/ do |layout, text|
 end
 
 Given /^I have a (.*) directory$/ do |dir|
-  FileUtils.mkdir(dir)
+  FileUtils.mkdir_p(dir)
 end
 
 Given /^I have the following posts?(?: (.*) "(.*)")?:$/ do |direction, folder, table|
@@ -115,14 +115,14 @@ Then /^the (.*) directory should exist$/ do |dir|
   assert File.directory?(dir)
 end
 
-Then /^the (.*) file should exist$/ do |file|
-  assert File.file?(file)
-end
-
 Then /^I should see "(.*)" in "(.*)"$/ do |text, file|
   assert_match Regexp.new(text), File.open(file).readlines.join
 end
 
+Then /^the "(.*)" file should exist$/ do |file|
+  assert File.file?(file)
+end
+
 Then /^the "(.*)" file should not exist$/ do |file|
   assert !File.exists?(file)
 end
diff --git a/lib/jekyll.rb b/lib/jekyll.rb
index 8a27e161..cbf7c446 100644
--- a/lib/jekyll.rb
+++ b/lib/jekyll.rb
@@ -26,6 +26,7 @@ require 'jekyll/filters'
 require 'jekyll/tags/highlight'
 require 'jekyll/tags/include'
 require 'jekyll/albino'
+require 'jekyll/static_file'
 
 module Jekyll
   # Default options. Overriden by values in _config.yml or command-line opts.
diff --git a/lib/jekyll/pager.rb b/lib/jekyll/pager.rb
index 883579a4..b4e73161 100644
--- a/lib/jekyll/pager.rb
+++ b/lib/jekyll/pager.rb
@@ -4,7 +4,7 @@ module Jekyll
     
     def self.calculate_pages(all_posts, per_page)
       num_pages = all_posts.size / per_page.to_i
-      num_pages.abs + 1 if all_posts.size % per_page.to_i != 0
+      num_pages = num_pages + 1 if all_posts.size % per_page.to_i != 0
       num_pages
     end
     
diff --git a/lib/jekyll/site.rb b/lib/jekyll/site.rb
index be275d88..3d47d16e 100644
--- a/lib/jekyll/site.rb
+++ b/lib/jekyll/site.rb
@@ -1,7 +1,7 @@
 module Jekyll
 
   class Site
-    attr_accessor :config, :layouts, :posts, :categories, :exclude,
+    attr_accessor :config, :layouts, :posts, :pages, :static_files, :categories, :exclude,
                   :source, :dest, :lsi, :pygments, :permalink_style, :tags
 
     # Initialize the site
@@ -25,6 +25,8 @@ module Jekyll
     def reset
       self.layouts         = {}
       self.posts           = []
+      self.pages           = []
+      self.static_files    = []
       self.categories      = Hash.new { |hash, key| hash[key] = [] }
       self.tags            = Hash.new { |hash, key| hash[key] = [] }
     end
@@ -87,21 +89,29 @@ module Jekyll
     end
 
     # Do the actual work of processing the site and generating the
-    # real deal.
+    # real deal.  Now has 4 phases; reset, read, render, write.  This allows
+    # rendering to have full site payload available.
     #
     # Returns nothing
     def process
       self.reset
-      self.read_layouts
-      self.transform_pages
-      self.write_posts
+      self.read
+      self.render
+      self.write
     end
 
-    # Read all the files in <source>/_layouts into memory for later use.
+    def read
+      self.read_layouts # existing implementation did this at top level only so preserved that
+      self.read_directories
+    end
+
+    # Read all the files in <source>/<dir>/_layouts and create a new Layout
+    # object with each one.
     #
     # Returns nothing
-    def read_layouts
-      base = File.join(self.source, "_layouts")
+    def read_layouts(dir = '')
+      base = File.join(self.source, dir, "_layouts")
+      return unless File.exists?(base)
       entries = []
       Dir.chdir(base) { entries = filter_entries(Dir['*.*']) }
 
@@ -109,17 +119,16 @@ module Jekyll
         name = f.split(".")[0..-2].join(".")
         self.layouts[name] = Layout.new(self, base, f)
       end
-    rescue Errno::ENOENT => e
-      # ignore missing layout dir
     end
 
-    # Read all the files in <base>/_posts and create a new Post object with each one.
+    # Read all the files in <source>/<dir>/_posts and create a new Post
+    # object with each one.
     #
     # Returns nothing
     def read_posts(dir)
       base = File.join(self.source, dir, '_posts')
-      entries = []
-      Dir.chdir(base) { entries = filter_entries(Dir['**/*']) }
+      return unless File.exists?(base)
+      entries = Dir.chdir(base) { filter_entries(Dir['**/*']) }
 
       # first pass processes, but does not yet render post content
       entries.each do |f|
@@ -135,10 +144,11 @@ module Jekyll
       end
 
       self.posts.sort!
+    end
 
-      # second pass renders each post now that full site payload is available
-      self.posts.each do |post|
-        post.render(self.layouts, site_payload)
+    def render
+      [self.posts, self.pages].flatten.each do |convertible|
+        convertible.render(self.layouts, site_payload)
       end
 
       self.categories.values.map { |ps| ps.sort! { |a, b| b <=> a} }
@@ -147,55 +157,50 @@ module Jekyll
       # ignore missing layout dir
     end
 
-    # Write each post to <dest>/<year>/<month>/<day>/<slug>
+    # Write static files, pages and posts
     #
     # Returns nothing
-    def write_posts
+    def write
       self.posts.each do |post|
         post.write(self.dest)
       end
+      self.pages.each do |page|
+        page.write(self.dest)
+      end
+      self.static_files.each do |sf|
+        sf.write(self.dest)
+      end
     end
 
-    # Copy all regular files from <source> to <dest>/ ignoring
-    # any files/directories that are hidden or backup files (start
-    # with "." or "#" or end with "~") or contain site content (start with "_")
-    # unless they are "_posts" directories or web server files such as
-    # '.htaccess'
+    # Reads the directories and finds posts, pages and static files that will 
+    # become part of the valid site according to the rules in +filter_entries+.
     #   The +dir+ String is a relative path used to call this method
     #            recursively as it descends through directories
     #
     # Returns nothing
-    def transform_pages(dir = '')
+    def read_directories(dir = '')
       base = File.join(self.source, dir)
       entries = filter_entries(Dir.entries(base))
-      directories = entries.select { |e| File.directory?(File.join(base, e)) }
-      files = entries.reject { |e| File.directory?(File.join(base, e)) || File.symlink?(File.join(base, e)) }
 
-      # we need to make sure to process _posts *first* otherwise they
-      # might not be available yet to other templates as {{ site.posts }}
-      if directories.include?('_posts')
-        directories.delete('_posts')
-        read_posts(dir)
-      end
+      self.read_posts(dir)
 
-      [directories, files].each do |entries|
-        entries.each do |f|
-          if File.directory?(File.join(base, f))
-            next if self.dest.sub(/\/$/, '') == File.join(base, f)
-            transform_pages(File.join(dir, f))
-          elsif Pager.pagination_enabled?(self.config, f)
+      entries.each do |f|
+        f_abs = File.join(base, f)
+        f_rel = File.join(dir, f)
+        if File.directory?(f_abs)
+          next if self.dest.sub(/\/$/, '') == f_abs
+          read_directories(f_rel)
+        elsif !File.symlink?(f_abs)
+          if Pager.pagination_enabled?(self.config, f)
             paginate_posts(f, dir)
           else
-            first3 = File.open(File.join(self.source, dir, f)) { |fd| fd.read(3) }
+            first3 = File.open(f_abs) { |fd| fd.read(3) }
             if first3 == "---"
               # file appears to have a YAML header so process it as a page
-              page = Page.new(self, self.source, dir, f)
-              page.render(self.layouts, site_payload)
-              page.write(self.dest)
+              pages << Page.new(self, self.source, dir, f)
             else
-              # otherwise copy the file without transforming it
-              FileUtils.mkdir_p(File.join(self.dest, dir))
-              FileUtils.cp(File.join(self.source, dir, f), File.join(self.dest, dir, f))
+              # otherwise treat it as a static file
+              static_files << StaticFile.new(self, self.source, dir, f)
             end
           end
         end
@@ -228,19 +233,19 @@ module Jekyll
     end
 
     # Filter out any files/directories that are hidden or backup files (start
-    # with "." or "#" or end with "~") or contain site content (start with "_")
-    # unless they are "_posts" directories or web server files such as
-    # '.htaccess'
+    # with "." or "#" or end with "~"), or contain site content (start with "_"),
+    # or are excluded in the site configuration, unless they are web server
+    # files such as '.htaccess'
     def filter_entries(entries)
       entries = entries.reject do |e|
-        unless ['_posts', '.htaccess'].include?(e)
+        unless ['.htaccess'].include?(e)
           ['.', '_', '#'].include?(e[0..0]) || e[-1..-1] == '~' || self.exclude.include?(e)
         end
       end
     end
 
     # Paginates the blog's posts. Renders the index.html file into paginated directories, ie: page2, page3...
-    # and adds more wite-wide data
+    # and adds more site-wide data
     #
     # {"paginator" => { "page" => <Number>,
     #                   "per_page" => <Number>,
@@ -252,7 +257,6 @@ module Jekyll
     def paginate_posts(file, dir)
       all_posts = self.posts.sort { |a,b| b <=> a }
       pages = Pager.calculate_pages(all_posts, self.config['paginate'].to_i)
-      pages += 1
       (1..pages).each do |num_page|
         pager = Pager.new(self.config, num_page, all_posts, pages)
         page = Page.new(self, self.source, dir, file)
diff --git a/lib/jekyll/static_file.rb b/lib/jekyll/static_file.rb
new file mode 100644
index 00000000..7dfd6b97
--- /dev/null
+++ b/lib/jekyll/static_file.rb
@@ -0,0 +1,28 @@
+module Jekyll
+
+  class StaticFile
+    # Initialize a new StaticFile.
+    #   +site+ is the Site
+    #   +base+ is the String path to the <source>
+    #   +dir+ is the String path between <source> and the file
+    #   +name+ is the String filename of the file
+    #
+    # Returns <StaticFile>
+    def initialize(site, base, dir, name)
+      @site = site
+      @base = base
+      @dir  = dir
+      @name = name
+    end
+
+    # Write the static file to the destination directory.
+    #   +dest+ is the String path to the destination dir
+    #
+    # Returns nothing
+    def write(dest)
+      FileUtils.mkdir_p(File.join(dest, @dir))
+      FileUtils.cp(File.join(@base, @dir, @name), File.join(dest, @dir, @name))
+    end
+  end
+
+end
diff --git a/test/test_generated_site.rb b/test/test_generated_site.rb
index 45b2cc84..fe9878e9 100644
--- a/test/test_generated_site.rb
+++ b/test/test_generated_site.rb
@@ -13,6 +13,10 @@ class TestGeneratedSite < Test::Unit::TestCase
       @index = File.read(dest_dir('index.html'))
     end
 
+    should "ensure post count is as expected" do
+      assert_equal 17, @site.posts.size
+    end
+
     should "insert site.posts into the index" do
       assert @index.include?("#{@site.posts.size} Posts")
     end
diff --git a/test/test_pager.rb b/test/test_pager.rb
index 34ffc164..ffd1aa97 100644
--- a/test/test_pager.rb
+++ b/test/test_pager.rb
@@ -1,11 +1,38 @@
 require File.dirname(__FILE__) + '/helper'
 
 class TestPager < Test::Unit::TestCase
-  context "pagination enabled" do
+
+  should "calculate number of pages" do
+    assert_equal(0, Pager.calculate_pages([], '2'))
+    assert_equal(1, Pager.calculate_pages([1], '2'))
+    assert_equal(1, Pager.calculate_pages([1,2], '2'))
+    assert_equal(2, Pager.calculate_pages([1,2,3], '2'))
+    assert_equal(2, Pager.calculate_pages([1,2,3,4], '2'))
+    assert_equal(3, Pager.calculate_pages([1,2,3,4,5], '2'))
+  end
+
+  context "pagination disabled" do
     setup do
       stub(Jekyll).configuration do
         Jekyll::DEFAULTS.merge({
-          'source'      => source_dir, 
+          'source'      => source_dir,
+          'destination' => dest_dir
+        })
+      end
+      @config = Jekyll.configuration
+    end
+
+    should "report that pagination is disabled" do
+      assert !Pager.pagination_enabled?(@config, 'index.html')
+    end
+
+  end
+
+  context "pagination enabled for 2" do
+    setup do
+      stub(Jekyll).configuration do
+        Jekyll::DEFAULTS.merge({
+          'source'      => source_dir,
           'destination' => dest_dir,
           'paginate'    => 2
         })
@@ -13,35 +40,74 @@ class TestPager < Test::Unit::TestCase
 
       @config = Jekyll.configuration
       @site = Site.new(@config)
-      @posts = @site.read_posts('')
+      @site.process
+      @posts = @site.posts
     end
 
-    should "calculate number of pages" do
-      assert_equal(2, Pager.calculate_pages(@posts, @config['paginate']))
-    end
-
-    should "create first pager" do
-      pager = Pager.new(@config, 1, @posts)
-      assert_equal(@config['paginate'].to_i, pager.posts.size)
-      assert_equal(2, pager.total_pages)
-      assert_nil(pager.previous_page)
-      assert_equal(2, pager.next_page)
-    end
-  
-    should "create second pager" do
-      pager = Pager.new(@config, 2, @posts)
-      assert_equal(@posts.size - @config['paginate'].to_i, pager.posts.size)
-      assert_equal(2, pager.total_pages)
-      assert_equal(1, pager.previous_page)
-      assert_nil(pager.next_page)
-    end
-    
-    should "not create third pager" do
-      assert_raise(RuntimeError) { Pager.new(@config, 3, @posts) }
-    end
-    
     should "report that pagination is enabled" do
       assert Pager.pagination_enabled?(@config, 'index.html')
     end
+
+    context "with 4 posts" do
+      setup do
+        @posts = @site.posts[1..4] # limit to 4
+      end
+
+      should "create first pager" do
+        pager = Pager.new(@config, 1, @posts)
+        assert_equal(2, pager.posts.size)
+        assert_equal(2, pager.total_pages)
+        assert_nil(pager.previous_page)
+        assert_equal(2, pager.next_page)
+      end
+
+      should "create second pager" do
+        pager = Pager.new(@config, 2, @posts)
+        assert_equal(2, pager.posts.size)
+        assert_equal(2, pager.total_pages)
+        assert_equal(1, pager.previous_page)
+        assert_nil(pager.next_page)
+      end
+
+      should "not create third pager" do
+        assert_raise(RuntimeError) { Pager.new(@config, 3, @posts) }
+      end
+
+    end
+
+    context "with 5 posts" do
+      setup do
+        @posts = @site.posts[1..5] # limit to 5
+      end
+
+      should "create first pager" do
+        pager = Pager.new(@config, 1, @posts)
+        assert_equal(2, pager.posts.size)
+        assert_equal(3, pager.total_pages)
+        assert_nil(pager.previous_page)
+        assert_equal(2, pager.next_page)
+      end
+
+      should "create second pager" do
+        pager = Pager.new(@config, 2, @posts)
+        assert_equal(2, pager.posts.size)
+        assert_equal(3, pager.total_pages)
+        assert_equal(1, pager.previous_page)
+        assert_equal(3, pager.next_page)
+      end
+
+      should "create third pager" do
+        pager = Pager.new(@config, 3, @posts)
+        assert_equal(1, pager.posts.size)
+        assert_equal(3, pager.total_pages)
+        assert_equal(2, pager.previous_page)
+        assert_nil(pager.next_page)
+      end
+
+      should "not create fourth pager" do
+        assert_raise(RuntimeError) { Pager.new(@config, 4, @posts) }
+      end
+
+    end
   end
 end
diff --git a/test/test_site.rb b/test/test_site.rb
index f2202c8b..b92bc496 100644
--- a/test/test_site.rb
+++ b/test/test_site.rb
@@ -19,11 +19,17 @@ class TestSite < Test::Unit::TestCase
       before_posts = @site.posts.length
       before_layouts = @site.layouts.length
       before_categories = @site.categories.length
+      before_tags = @site.tags.length
+      before_pages = @site.pages.length
+      before_static_files = @site.static_files.length
 
       @site.process
       assert_equal before_posts, @site.posts.length
       assert_equal before_layouts, @site.layouts.length
       assert_equal before_categories, @site.categories.length
+      assert_equal before_tags, @site.tags.length
+      assert_equal before_pages, @site.pages.length
+      assert_equal before_static_files, @site.static_files.length
     end
 
     should "read layouts" do
@@ -52,10 +58,10 @@ class TestSite < Test::Unit::TestCase
     should "filter entries" do
       ent1 = %w[foo.markdown bar.markdown baz.markdown #baz.markdown#
               .baz.markdow foo.markdown~]
-      ent2 = %w[.htaccess _posts bla.bla]
+      ent2 = %w[.htaccess _posts _pages bla.bla]
 
       assert_equal %w[foo.markdown bar.markdown baz.markdown], @site.filter_entries(ent1)
-      assert_equal ent2, @site.filter_entries(ent2)
+      assert_equal %w[.htaccess bla.bla], @site.filter_entries(ent2)
     end
 
     should "filter entries with exclude" do