diff --git a/src/engine/Account.c b/src/engine/Account.c
index d3342f5e16..205b72d70a 100644
--- a/src/engine/Account.c
+++ b/src/engine/Account.c
@@ -108,6 +108,7 @@ xaccInitAccount (Account * acc)
 
   acc->splits      = NULL;
 
+  acc->version = 0;
   acc->editlevel = 0;
   acc->balance_dirty = FALSE;
   acc->sort_dirty = FALSE;
@@ -224,6 +225,7 @@ xaccFreeAccount (Account *acc)
   acc->currency    = NULL;
   acc->security    = NULL;
 
+  acc->version = 0;
   acc->editlevel = 0;
   acc->balance_dirty = FALSE;
   acc->sort_dirty = FALSE;
@@ -350,6 +352,21 @@ xaccAccountDestroy (Account *acc)
   xaccAccountCommitEdit (acc);
 }
 
+
+void 
+xaccAccountSetVersion (Account *acc, gint32 vers)
+{
+  if (!acc) return;
+  acc->version = vers;
+}
+
+gint32 
+xaccAccountGetVersion (Account *acc)
+{
+  if (!acc) return 0;
+  return (acc->version);
+}
+
 /********************************************************************\
 \********************************************************************/
 
diff --git a/src/engine/AccountP.h b/src/engine/AccountP.h
index 9e7deb5241..82b4b94841 100644
--- a/src/engine/AccountP.h
+++ b/src/engine/AccountP.h
@@ -124,15 +124,18 @@ struct _account {
   gnc_numeric share_cleared_balance;
   gnc_numeric share_reconciled_balance;
 
+  /* version number, used for tracking multiuser updates */
+  gint32 version;
+
   GList *splits;           /* list of split pointers */
 
   /* keep track of nesting level of begin/end edit calls */
   gint32 editlevel;
 
-  gboolean balance_dirty;
-  gboolean sort_dirty;
+  gboolean balance_dirty;  /* balances in splits incorrect */
+  gboolean sort_dirty;     /* sort order of splits is bad */
   gboolean core_dirty;     /* fields in this struct have changed */
-  gboolean do_free;
+  gboolean do_free;        /* in process of being destroyed */
 
   /* The "mark" flag can be used by the user to mark this account
    * in any way desired.  Handy for specialty traversals of the 
@@ -187,4 +190,13 @@ void xaccAccountSetStartingBalance(Account *account,
  */
 
 void xaccFreeAccount (Account *account);
+
+/* The xaccAccountSet/GetVersion() routines set & get the version 
+ *    numbers on this account.  The version number is used to manage
+ *    multi-user updates.  These routines are private because we don't
+ *    want anyone except the backend to mess with them.
+ */
+void xaccAccountSetVersion (Account*, gint32);
+gint32 xaccAccountGetVersion (Account*);
+
 #endif /* __XACC_ACCOUNT_P_H__ */
diff --git a/src/engine/Backend.c b/src/engine/Backend.c
index f68efa6668..e5ceb3e3b2 100644
--- a/src/engine/Backend.c
+++ b/src/engine/Backend.c
@@ -139,8 +139,15 @@ xaccGroupSetBackend (AccountGroup *grp, Backend *be)
 Backend *
 xaccGroupGetBackend (AccountGroup *grp)
 {
-   if (!grp) return NULL;
-   return (grp->backend);
+   while (grp)
+   {
+     Account *parent;
+     if (grp->backend) return (grp->backend);
+     parent = grp->parent;
+     if (!parent) return NULL;
+     grp = parent->parent;
+   }
+   return NULL;
 }
 
 /************************* END OF FILE ********************************/
diff --git a/src/engine/Makefile.am b/src/engine/Makefile.am
index 911d23a577..d7ceeb6304 100644
--- a/src/engine/Makefile.am
+++ b/src/engine/Makefile.am
@@ -48,7 +48,7 @@ libgncengine_la_SOURCES = \
   Query-xml-parser-v1.c \
   Transaction-xml-parser-v1.c
 
-libgncengine_la_LDFLAGS = -version-info 2:1:1
+libgncengine_la_LDFLAGS = -version-info 2:3:1
 
 noinst_HEADERS = \
   Account.h \
diff --git a/src/engine/Transaction.c b/src/engine/Transaction.c
index 7de5ed2fbb..1d73c510ab 100644
--- a/src/engine/Transaction.c
+++ b/src/engine/Transaction.c
@@ -583,6 +583,7 @@ xaccInitTransaction (Transaction * trans)
   trans->date_posted.tv_sec  = 0;
   trans->date_posted.tv_nsec = 0;
 
+  trans->version = 0;
   trans->marker = 0;
   trans->editlevel = 0;
   trans->do_free = FALSE;
@@ -640,6 +641,7 @@ xaccCloneTransaction (Transaction *t)
   trans->date_posted.tv_sec  = t->date_posted.tv_sec;
   trans->date_posted.tv_nsec = t->date_posted.tv_nsec;
 
+  trans->version = t->version;
   trans->editlevel = 0;
   trans->do_free = FALSE;
   trans->orig = NULL;
@@ -679,8 +681,7 @@ xaccFreeTransaction (Transaction *trans)
   /* just in case someone looks up freed memory ... */
   trans->num         = NULL;
   trans->description = NULL;
-
-  trans->kvp_data = NULL;
+  trans->kvp_data    = NULL;
 
   trans->date_entered.tv_sec = 0;
   trans->date_entered.tv_nsec = 0;
@@ -688,6 +689,7 @@ xaccFreeTransaction (Transaction *trans)
   trans->date_posted.tv_sec = 0;
   trans->date_posted.tv_nsec = 0;
 
+  trans->version = 0;
   trans->editlevel = 0;
   trans->do_free = FALSE;
 
@@ -1018,6 +1020,7 @@ xaccTransGetImbalance (Transaction * trans)
 
 /********************************************************************\
 \********************************************************************/
+
 gboolean
 xaccIsCommonCurrency(const gnc_commodity * currency_1, 
                      const gnc_commodity * security_1,
@@ -1267,7 +1270,6 @@ xaccTransBeginEdit (Transaction *trans)
 void
 xaccTransCommitEdit (Transaction *trans)
 {
-   GList *node;
    Split *split;
    Backend *be;
 
@@ -1348,8 +1350,12 @@ xaccTransCommitEdit (Transaction *trans)
               "Please refresh your browser and try again.\n"
               "(This dialog should be a gui dialog and \n"
               "should check for errors)\n");
-        PERR("Backend asked engine to rollback, but we don't "
-             "handle this case yet. Return code=%d", rc);
+        /* hack alert -- we should check for i/o errors from 
+         * the backend too ... 
+         */
+        trans->editlevel++;
+        xaccTransRollbackEdit (trans);
+        return;
       }
    }
 
@@ -1563,6 +1569,20 @@ xaccTransIsOpen (Transaction *trans)
   return (0 < trans->editlevel);
 }
 
+void
+xaccTransSetVersion (Transaction *trans, gint32 vers)
+{
+  if (!trans) return;
+  trans->version = vers;
+}
+
+gint32
+xaccTransGetVersion (Transaction *trans)
+{
+  if (!trans) return 0;
+  return (trans->version);
+}
+
 /********************************************************************\
 \********************************************************************/
 
diff --git a/src/engine/TransactionP.h b/src/engine/TransactionP.h
index 8d9a97151a..12be5388b5 100644
--- a/src/engine/TransactionP.h
+++ b/src/engine/TransactionP.h
@@ -167,6 +167,9 @@ struct _transaction
    */
   const gnc_commodity *common_currency;
 
+  /* version number, used for tracking multiuser updates */
+  gint32 version;
+
   GList * splits; /* list of splits */
 
   /* marker is used to track the progress of transaction traversals. 
@@ -210,4 +213,12 @@ void  xaccFreeSplit (Split *split);    /* frees memory */
 gnc_numeric xaccSplitsComputeValue (GList *splits, Split * skip_me,
                                     const gnc_commodity * base_currency);
 
+/* The xaccTransSet/GetVersion() routines set & get the version
+ *    numbers on this transaction.  The version number is used to manage
+ *    multi-user updates.  These routines are private because we don't
+ *    want anyone except the backend to mess with them.
+ */
+void xaccTransSetVersion (Transaction*, gint32);
+gint32 xaccTransGetVersion (Transaction*);
+
 #endif /* __XACC_TRANSACTION_P_H__ */
diff --git a/src/engine/gnc-book.c b/src/engine/gnc-book.c
index 3574228abd..9a26561f3a 100644
--- a/src/engine/gnc-book.c
+++ b/src/engine/gnc-book.c
@@ -574,6 +574,9 @@ gnc_book_save (GNCBook *book)
   be = book->backend;
   if (be && be->sync && book->topgroup)
   {
+     /* if invoked as SaveAs(), then backend not yet set */
+     xaccGroupSetBackend (book->topgroup, be);
+
      (be->sync)(be, book->topgroup);
      retval = xaccBackendGetError(be);