diff --git a/src/core/ngx_conf_file.c b/src/core/ngx_conf_file.c
index 67a25425e..e11200114 100644
--- a/src/core/ngx_conf_file.c
+++ b/src/core/ngx_conf_file.c
@@ -375,11 +375,11 @@ char *ngx_conf_set_str_slot(ngx_conf_t *cf, ngx_command_t *cmd, char *conf)
 {
     ngx_str_t  *field, *value;
 
-    field = (ngx_str_t *) conf + cmd->offset;
+    field = (ngx_str_t *) (conf + cmd->offset);
     value = (ngx_str_t *) cf->args->elts;
 
-    field->len = value->len;
-    field->data = value->data;
+    field->len = value[1].len;
+    field->data = value[1].data;
 
     return NGX_CONF_OK;
 }
diff --git a/src/core/ngx_string.h b/src/core/ngx_string.h
index ea255ba2f..83ca4ba15 100644
--- a/src/core/ngx_string.h
+++ b/src/core/ngx_string.h
@@ -18,6 +18,7 @@ typedef struct {
 
 #define ngx_memzero               ZeroMemory
 
+#define ngx_strncasecmp           strnicmp
 #define ngx_strcasecmp            stricmp
 #define ngx_strncmp               strncmp
 #define ngx_strcmp                strcmp
@@ -31,6 +32,7 @@ typedef struct {
 
 #define ngx_memzero               bzero
 
+#define ngx_strncasecmp           strncasecmp
 #define ngx_strcasecmp            strcasecmp
 #define ngx_strncmp               strncmp
 #define ngx_strcmp                strcmp
diff --git a/src/event/ngx_event.c b/src/event/ngx_event.c
index a6addd568..04036d430 100644
--- a/src/event/ngx_event.c
+++ b/src/event/ngx_event.c
@@ -32,7 +32,7 @@ ngx_event_t         *ngx_read_events, *ngx_write_events;
 
 #if 0
 ngx_event_type_e     ngx_event_type = NGX_SELECT_EVENT;
-#elif 1
+#elif 0
 ngx_event_type_e     ngx_event_type = NGX_POLL_EVENT;
 #else
 ngx_event_type_e     ngx_event_type = NGX_KQUEUE_EVENT;
diff --git a/src/event/ngx_event.h b/src/event/ngx_event.h
index 76e31672b..71895a0be 100644
--- a/src/event/ngx_event.h
+++ b/src/event/ngx_event.h
@@ -119,11 +119,12 @@ typedef struct {
 /* No nedd to add or delete event filters - overlapped, aio_read, aioread */
 #define NGX_HAVE_AIO_EVENT      8
 
-/* Event filter is deleted before closing file. Has no meaning for select, poll.
+/* Event filter is deleted before closing file. Has no meaning
+   for select, poll, epoll.
+
    kqueue:     kqueue deletes event filters for file that closed
                so we need only to delete filters in user-level batch array
-   /dev/poll:  we need to flush POLLREMOVE event before closing file
-   epoll:      ??? */
+   /dev/poll:  we need to flush POLLREMOVE event before closing file */
 #define NGX_CLOSE_EVENT         1
 
 
diff --git a/src/http/modules/ngx_http_index_handler.c b/src/http/modules/ngx_http_index_handler.c
index 78a058b63..d3b4901e9 100644
--- a/src/http/modules/ngx_http_index_handler.c
+++ b/src/http/modules/ngx_http_index_handler.c
@@ -25,7 +25,7 @@ static char *ngx_http_index_set_index(ngx_conf_t *cf, ngx_command_t *cmd,
 static ngx_command_t ngx_http_index_commands[] = {
 
     {ngx_string("index"),
-     NGX_HTTP_LOC_CONF|NGX_CONF_BLOCK|NGX_CONF_ANY,
+     NGX_HTTP_LOC_CONF|NGX_CONF_ANY,
      ngx_http_index_set_index,
      NGX_HTTP_LOC_CONF_OFFSET,
      0},
diff --git a/src/http/ngx_http.c b/src/http/ngx_http.c
index eb551cd28..4e7f8cad0 100644
--- a/src/http/ngx_http.c
+++ b/src/http/ngx_http.c
@@ -121,12 +121,31 @@ static char *ngx_http_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
     if (rv != NGX_CONF_OK)
         return rv;
 
+
+#if 0
+    /* DEBUG STUFF */
+    cscf = (ngx_http_core_srv_conf_t **) ngx_http_servers.elts;
+    for (s = 0; s < ngx_http_servers.nelts; s++) {
+        ngx_http_core_loc_conf_t **loc;
+
+        ngx_log_debug(cf->log, "srv: %08x" _ cscf[s]);
+        loc = (ngx_http_core_loc_conf_t **) cscf[s]->locations.elts;
+        for (l = 0; l < cscf[s]->locations.nelts; l++) {
+            ngx_log_debug(cf->log, "loc: %08x:%s, %08x:%s" _
+                          loc[l] _ loc[l]->name.data _
+                          &loc[l]->doc_root _ loc[l]->doc_root.data);
+        }
+    }
+    /**/
+#endif
+
     ngx_init_array(ngx_http_index_handlers,
                    cf->pool, 3, sizeof(ngx_http_handler_pt), NGX_CONF_ERROR);
 
     ngx_http_init_filters(cf->pool, ngx_modules);
 
-#if 1
+    /* create lists of ports, addresses and server names */
+
     ngx_init_array(in_ports, cf->pool, 10, sizeof(ngx_http_in_port_t),
                    NGX_CONF_ERROR);
 
@@ -233,7 +252,7 @@ static char *ngx_http_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
                                sizeof(ngx_http_in_addr_t),
                                NGX_CONF_ERROR);
 
-                ngx_test_null(inaddr, ngx_push_array(&in_port[p].addr),
+                ngx_test_null(inaddr, ngx_push_array(&in_port->addr),
                               NGX_CONF_ERROR);
 
                 inaddr->addr = lscf[l].addr;
@@ -247,6 +266,8 @@ static char *ngx_http_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
         }
     }
 
+    /* optimzie lists of ports, addresses and server names */
+
     /* AF_INET only */
 
     in_port = (ngx_http_in_port_t *) in_ports.elts;
@@ -330,14 +351,17 @@ static char *ngx_http_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
             if (in_port[p].addr.nelts == 1) {
                 in_addr = (ngx_http_in_addr_t *) in_port[p].addr.elts;
 
+                /* if there is the single address for this port and no virtual
+                   name servers so we do not need to check addresses
+                   at run time */
                 if (in_addr[a].names.nelts == 0) {
                     ls->ctx = in_addr->core_srv_conf->ctx;
                     ls->servers = NULL;
                 }
             }
+ngx_log_debug(cf->log, "ls ctx: %d:%08x" _ in_port[p].port _ ls->ctx);
         }
     }
-#endif
 
     return NGX_CONF_OK;
 }
diff --git a/src/http/ngx_http.h b/src/http/ngx_http.h
index bdef89995..810fda2a4 100644
--- a/src/http/ngx_http.h
+++ b/src/http/ngx_http.h
@@ -74,6 +74,8 @@ typedef struct {
 
 
 typedef struct {
+    ngx_str_t         host_name;
+
     ngx_table_elt_t  *host;
     ngx_table_elt_t  *connection;
     ngx_table_elt_t  *if_modified_since;
diff --git a/src/http/ngx_http_core_module.c b/src/http/ngx_http_core_module.c
index 972b461e7..b667e3c3a 100644
--- a/src/http/ngx_http_core_module.c
+++ b/src/http/ngx_http_core_module.c
@@ -1,6 +1,8 @@
 
 #include <ngx_config.h>
 
+#include <ngx_listen.h>
+
 #include <ngx_core.h>
 #include <ngx_conf_file.h>
 
@@ -20,7 +22,8 @@ int ngx_http_proxy_handler(ngx_http_request_t *r);
 /**/
 
 static int ngx_http_core_index_handler(ngx_http_request_t *r);
-
+static ngx_http_conf_ctx_t *ngx_http_find_server_conf(ngx_http_request_t *r,
+                                                      void *addr);
 
 static char *ngx_server_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy);
 static char *ngx_location_block(ngx_conf_t *cf, ngx_command_t *cmd,
@@ -28,6 +31,7 @@ static char *ngx_location_block(ngx_conf_t *cf, ngx_command_t *cmd,
 static void *ngx_http_core_create_srv_conf(ngx_pool_t *pool);
 static char *ngx_http_core_init_srv_conf(ngx_pool_t *pool, void *conf);
 static void *ngx_http_core_create_loc_conf(ngx_pool_t *pool);
+static char *ngx_set_listen(ngx_conf_t *cf, ngx_command_t *cmd, char *conf);
 
 
 static ngx_command_t  ngx_http_core_commands[] = {
@@ -44,14 +48,20 @@ static ngx_command_t  ngx_http_core_commands[] = {
      0,
      0},
 
+    {ngx_string("listen"),
+     NGX_HTTP_SRV_CONF|NGX_CONF_TAKE1,
+     ngx_set_listen,
+     0,
+     0},
+
     {ngx_string("root"),
-     NGX_HTTP_LOC_CONF|NGX_CONF_BLOCK|NGX_CONF_TAKE1,
+     NGX_HTTP_LOC_CONF|NGX_CONF_TAKE1,
      ngx_conf_set_str_slot,
      NGX_HTTP_LOC_CONF_OFFSET,
      offsetof(ngx_http_core_loc_conf_t, doc_root)},
 
     {ngx_string("send_timeout"),
-     NGX_HTTP_LOC_CONF|NGX_CONF_BLOCK|NGX_CONF_TAKE1,
+     NGX_HTTP_LOC_CONF|NGX_CONF_TAKE1,
      ngx_conf_set_time_slot,
      NGX_HTTP_LOC_CONF_OFFSET,
      offsetof(ngx_http_core_loc_conf_t, send_timeout)},
@@ -96,19 +106,28 @@ int ngx_http_handler(ngx_http_request_t *r)
     r->lingering_close = 1;
     r->keepalive = 1;
 
-    ctx = (ngx_http_conf_ctx_t *) r->connection->ctx;
+ngx_log_debug(r->connection->log, "servers: %0x" _ r->connection->servers);
+
+    if (r->connection->servers == NULL) {
+        ctx = (ngx_http_conf_ctx_t *) r->connection->ctx;
+
+    } else {
+        ctx = ngx_http_find_server_conf(r, r->connection->servers);
+    }
+
     r->srv_conf = ctx->srv_conf;
     r->loc_conf = ctx->loc_conf;
 
+ngx_log_debug(r->connection->log, "cxt: %08x" _ ctx);
 ngx_log_debug(r->connection->log, "srv_conf: %0x" _ r->srv_conf);
 ngx_log_debug(r->connection->log, "loc_conf: %0x" _ r->loc_conf);
-ngx_log_debug(r->connection->log, "servers: %0x" _ r->connection->servers);
 
 
 #if 1
     r->filter = NGX_HTTP_FILTER_NEED_IN_MEMORY;
 #endif
 
+
     /* run translation phase */
     for (i = 0; ngx_modules[i]; i++) {
         if (ngx_modules[i]->type != NGX_HTTP_MODULE_TYPE) {
@@ -181,6 +200,8 @@ ngx_log_debug(r->connection->log, "trans: %s" _ lcf[i]->name.data);
     loc_conf = (ngx_http_core_loc_conf_t *)
                      ngx_http_get_module_loc_conf(r, ngx_http_core_module_ctx);
 
+ngx_log_debug(r->connection->log, "doc_root: %08x" _ &loc_conf->doc_root);
+
     s_name = (ngx_http_server_name_t *) scf->server_names.elts;
 
     /* "+ 7" is "http://" */
@@ -433,57 +454,38 @@ int ngx_http_internal_redirect(ngx_http_request_t *r, ngx_str_t uri)
 }
 
 
-#if 0
-void *ngx_http_find_server_conf(ngx_http_request_t *r)
+static ngx_http_conf_ctx_t *ngx_http_find_server_conf(ngx_http_request_t *r,
+                                                      void *addr)
 {
-    int  i;
-    ngx_http_listen_t       *fs, *ls;
-    ngx_http_server_name_t  *n;
+    int    i, len;
+    ngx_http_in_addr_t      *in_addr;
+    ngx_http_server_name_t  *name;
 
-    fs = NULL;
-    ls = (ngx_http_listen_t *) http->ports.elts;
+    /* AF_INET only */
 
-    for (i = 0; i < http->ports.nelts; i++) {
-        if (s->family != ls[i].family || s->port != ls[i].port) {
+    /* BUG: need cycle thru addr[]->elts */
+
+    in_addr = (ngx_http_in_addr_t *) addr;
+
+    if (r->headers_in.host == NULL) {
+        return in_addr->core_srv_conf->ctx;
+    }
+
+    len = r->headers_in.host_name.len;
+    name = (ngx_http_server_name_t *) in_addr->names.elts;
+    for (i = 0; i < in_addr->names.nelts; i++) {
+        if (len != name->name.len) {
             continue;
         }
 
-        if (s->family == AF_INET) {
-
-            if (ls[i].addr == INADDR_ANY || ls[i].addr == s->addr) {
-                fs = &ls[i];
-                break;
-            }
-
-        } else {
-            /* STUB: AF_INET only */
+        if (ngx_strncasecmp(r->headers_in.host_name.data,
+                            name->name.data, len) == 0) {
+            return name->core_srv_conf->ctx;
         }
     }
 
-    if (fs == NULL) {
-        ngx_log_error(NGX_LOG_ALERT, r->connection->log, 0,
-                      "unknown local socket %s:%d",
-                      s->addr_text.data, s->port);
-        return NULL;
-    }
-
-    if (r->headers_in.host && fs->server_names.nelts) {
-
-        n = (ngx_http_server_name_t *) fs->server_names.elts;
-        for (i = 0; i < fs->server_names.nelts; i++) {
-            if (r->headers_in.host->value.len != n[i].name.len) {
-                continue;
-            }
-
-            if (ngx_strcmp(r->headers_in.host->value.data, n[i].name.data) == 0)            {
-                return n[i].srv_conf;
-            }
-        }
-    }
-
-    return fs->srv_conf;
+    return in_addr->core_srv_conf->ctx;
 }
-#endif
 
 
 static char *ngx_server_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
@@ -520,16 +522,12 @@ static char *ngx_server_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
             ngx_test_null(ctx->srv_conf[module->index],
                           module->create_srv_conf(cf->pool),
                           NGX_CONF_ERROR);
-ngx_log_debug(cf->log, "srv_conf: %d:%0x" _
-              module->index _ ctx->loc_conf[module->index]);
         }
 
         if (module->create_loc_conf) {
             ngx_test_null(ctx->loc_conf[module->index],
                           module->create_loc_conf(cf->pool),
                           NGX_CONF_ERROR);
-ngx_log_debug(cf->log, "srv loc_conf: %d:%0x" _
-              module->index _ ctx->loc_conf[module->index]);
         }
     }
 
@@ -571,8 +569,6 @@ ngx_log_debug(cf->log, "srv loc_conf: %d:%0x" _
             }
 
             for (j = 0; j < scf->locations.nelts; j++) {
-ngx_log_debug(cf->log, "%d:%0x" _ j _ lcf[j]);
-ngx_log_debug(cf->log, "%d:'%s'" _ lcf[j]->name.len _ lcf[j]->name.data);
                 if (module->merge_loc_conf(cf->pool,
                                            ctx->loc_conf[module->index],
                                            lcf[j]->loc_conf[module->index])
@@ -591,12 +587,11 @@ static char *ngx_location_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
 {
     int                        i;
     char                      *rv;
-    void                     **loc;
     ngx_str_t                 *location;
     ngx_http_module_t         *module;
     ngx_http_conf_ctx_t       *ctx, *prev;
     ngx_http_core_srv_conf_t  *scf;
-    ngx_http_core_loc_conf_t  *lcf;
+    ngx_http_core_loc_conf_t  *lcf, **loc;
 
     ngx_test_null(ctx,
                   ngx_pcalloc(cf->pool, sizeof(ngx_http_conf_ctx_t)),
@@ -620,25 +615,21 @@ static char *ngx_location_block(ngx_conf_t *cf, ngx_command_t *cmd, char *dummy)
             ngx_test_null(ctx->loc_conf[module->index],
                           module->create_loc_conf(cf->pool),
                           NGX_CONF_ERROR);
-ngx_log_debug(cf->log, "loc_conf: %d:%0x" _
-              module->index _ ctx->loc_conf[module->index]);
         }
     }
 
     lcf = (ngx_http_core_loc_conf_t *)
-                                 ctx->loc_conf[ngx_http_core_module_ctx.index];
+                                     ctx->loc_conf[ngx_http_core_module.index];
     location = (ngx_str_t *) cf->args->elts;
     lcf->name.len = location[1].len;
     lcf->name.data = location[1].data;
     lcf->loc_conf = ctx->loc_conf;
 
     scf = (ngx_http_core_srv_conf_t *)
-                                 ctx->srv_conf[ngx_http_core_module_ctx.index];
+                                     ctx->srv_conf[ngx_http_core_module.index];
     ngx_test_null(loc, ngx_push_array(&scf->locations), NGX_CONF_ERROR);
     *loc = lcf;
 
-ngx_log_debug(cf->log, "%0x:%s" _ lcf _ lcf->name.data);
-
     cf->ctx = ctx;
     rv = ngx_conf_parse(cf, NULL);
     cf->ctx = prev;
@@ -791,3 +782,29 @@ static void *ngx_http_core_create_loc_conf(ngx_pool_t *pool)
 
     return lcf;
 }
+
+static char *ngx_set_listen(ngx_conf_t *cf, ngx_command_t *cmd, char *conf)
+{
+    ngx_str_t          *args;
+    ngx_http_listen_t  *ls;
+    ngx_http_core_srv_conf_t *scf = (ngx_http_core_srv_conf_t *) conf;
+
+    ngx_test_null(ls, ngx_push_array(&scf->listen), NGX_CONF_ERROR);
+
+    /* AF_INET only */
+
+    ls->family = AF_INET;
+    ls->addr = INADDR_ANY;
+    ls->flags = 0;
+    ls->conf_file = cf->conf_file;
+    ls->line = cf->conf_file->line;
+
+    args = (ngx_str_t *) cf->args->elts;
+
+    ls->port = atoi(args[1].data);
+    if (ls->port < 0) {
+        return "port must be greater or equal to zero";
+    }
+
+    return NGX_CONF_OK;
+}
diff --git a/src/http/ngx_http_core_module.h b/src/http/ngx_http_core_module.h
index 48b1ced73..37fe17e79 100644
--- a/src/http/ngx_http_core_module.h
+++ b/src/http/ngx_http_core_module.h
@@ -51,7 +51,8 @@ typedef struct {
 
 typedef struct {
     ngx_str_t   name;          /* location name */
-    void      **loc_conf;      /* used in translation handler */
+    void      **loc_conf;      /* pointer to modules loc_conf,
+                                  used in translation handler */
 
     ngx_str_t   doc_root;      /* 'root' */
 
diff --git a/src/http/ngx_http_event.c b/src/http/ngx_http_event.c
index 5856ebff6..82f0d2d26 100644
--- a/src/http/ngx_http_event.c
+++ b/src/http/ngx_http_event.c
@@ -373,7 +373,7 @@ static int ngx_http_process_request_line(ngx_http_request_t *r)
 
 static int ngx_http_process_request_headers(ngx_http_request_t *r)
 {
-    int rc;
+    int                  rc, len;
     ngx_http_log_ctx_t  *ctx;
 
     for ( ;; ) {
@@ -381,21 +381,34 @@ static int ngx_http_process_request_headers(ngx_http_request_t *r)
 
         /* TODO: check too long header, compact buffer */
 
-        if (rc == NGX_OK) {
-            if (ngx_http_process_request_header_line(r) == NGX_ERROR)
+        if (rc == NGX_OK) { /* header line is ready */
+            if (ngx_http_process_request_header_line(r) == NGX_ERROR) {
                 return ngx_http_error(r, NGX_HTTP_BAD_REQUEST);
+            }
+
+            return NGX_AGAIN;
 
         } else if (rc == NGX_HTTP_PARSE_HEADER_DONE) {
             ngx_log_debug(r->connection->log, "HTTP header done");
 
-            if (r->http_version > NGX_HTTP_VERSION_10
-                && r->headers_in.host == NULL)
-            {
-                return ngx_http_error(r, NGX_HTTP_BAD_REQUEST);
+            if (r->headers_in.host) {
+                 for (len = 0; len < r->headers_in.host->value.len; len++) {
+                     if (r->headers_in.host->value.data[len] == ':') {
+                         break;
+                     }
+                 }
+                 r->headers_in.host_name.len = len;
+                 r->headers_in.host_name.data = r->headers_in.host->value.data;
+
             } else {
-                return NGX_OK;
+                 if (r->http_version > NGX_HTTP_VERSION_10) {
+                     return ngx_http_error(r, NGX_HTTP_BAD_REQUEST);
+                 }
+                 r->headers_in.host_name.len = 0;
             }
 
+            return NGX_OK;
+
         } else if (rc == NGX_AGAIN) {
             return NGX_AGAIN;
 
@@ -429,11 +442,13 @@ static int ngx_http_process_request_header_line(ngx_http_request_t *r)
     ngx_cpystrn(h->value.data, r->header_start, h->value.len + 1);
 
     for (i = 0; headers_in[i].len != 0; i++) {
-        if (headers_in[i].len == h->key.len) {
-            if (ngx_strcasecmp(headers_in[i].data, h->key.data) == 0) {
-                *((ngx_table_elt_t **)
-                    ((char *) &r->headers_in + headers_in[i].offset)) = h;
-            }
+        if (headers_in[i].len != h->key.len) {
+            continue;
+        }
+
+        if (ngx_strcasecmp(headers_in[i].data, h->key.data) == 0) {
+            *((ngx_table_elt_t **)
+                        ((char *) &r->headers_in + headers_in[i].offset)) = h;
         }
     }
 
diff --git a/src/http/ngx_http_output_filter.c b/src/http/ngx_http_output_filter.c
index b2eec279d..8b382e325 100644
--- a/src/http/ngx_http_output_filter.c
+++ b/src/http/ngx_http_output_filter.c
@@ -21,7 +21,7 @@ static char *ngx_http_output_filter_merge_conf(ngx_pool_t *pool,
 static ngx_command_t  ngx_http_output_filter_commands[] = {
 
     {ngx_string("output_buffer"),
-     NGX_HTTP_LOC_CONF|NGX_CONF_BLOCK|NGX_CONF_TAKE1,
+     NGX_HTTP_LOC_CONF|NGX_CONF_TAKE1,
      ngx_conf_set_size_slot,
      NGX_HTTP_LOC_CONF_OFFSET,
      offsetof(ngx_http_output_filter_conf_t, hunk_size)},
diff --git a/src/http/ngx_http_write_filter.c b/src/http/ngx_http_write_filter.c
index 917c044d5..2453934ca 100644
--- a/src/http/ngx_http_write_filter.c
+++ b/src/http/ngx_http_write_filter.c
@@ -20,7 +20,7 @@ static char *ngx_http_write_filter_merge_conf(ngx_pool_t *pool,
 static ngx_command_t ngx_http_write_filter_commands[] = {
 
     {ngx_string("write_buffer"),
-     NGX_HTTP_LOC_CONF|NGX_CONF_BLOCK|NGX_CONF_TAKE1,
+     NGX_HTTP_LOC_CONF|NGX_CONF_TAKE1,
      ngx_conf_set_size_slot,
      NGX_HTTP_LOC_CONF_OFFSET,
      offsetof(ngx_http_write_filter_conf_t, buffer_output)},