diff --git a/.DS_Store b/.DS_Store
new file mode 100644
index 0000000..7175240
Binary files /dev/null and b/.DS_Store differ
diff --git a/Cakefile b/Cakefile
index 89b1af6..0f8c0e8 100644
--- a/Cakefile
+++ b/Cakefile
@@ -60,7 +60,7 @@ task "dist", "Generate dist/eco.js", ->
       "strscan":          read "node_modules/strscan/lib/strscan.js"
       "coffee-script":    stub "CoffeeScript"
 
-    package = for name, source of modules
+    pkg = for name, source of modules
       """
         '#{name}': function(module, require, exports) {
           #{source}
@@ -89,12 +89,12 @@ task "dist", "Generate dist/eco.js", ->
           }
         };
       })({
-        #{package.join ',\n'}
+        #{pkg.join ',\n'}
       })('eco');
     """
 
     try
-      fs.mkdirSync "#{__dirname}/dist", 0755
+      fs.mkdirSync "#{__dirname}/dist", 0o0755
     catch err
 
     fs.writeFileSync "#{__dirname}/dist/eco.js", "#{header}\n#{source}"
diff --git a/README.md b/README.md
index ed96add..0617eee 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,22 @@
+# Improved web performance and size
+
+I am currently working on a web application using eco templates for both the server
+and client. The plan is to pre-compile the templates using brunch and load keep them
+in the main build file. I just had a looked at the minified output and I was horrified at 
+what eco had done.
+
+* It pushes many meaningless lines to the output array,
+* preserves multiple recurrent white-spaces when just one white space would be appropriate,
+* and leaves html comments in... for fun?
+
+So in light of this I modified the preprocessor and utilities slightly and corrected these
+issues.
+
+Later I would like to modify eco further so that it didn't build a copy of its base functions
+into every template it rendered and instead shared some code brought in through a require.
+This would reduce the framework agnosticism presently enjoyed by eco, so I am going to have to
+think about it a little more...
+
 Eco: Embedded CoffeeScript templates
 ====================================
 
diff --git a/lib/.DS_Store b/lib/.DS_Store
new file mode 100644
index 0000000..7af7ec7
Binary files /dev/null and b/lib/.DS_Store differ
diff --git a/lib/command.js b/lib/command.js
index 6fa10e8..05d43b3 100644
--- a/lib/command.js
+++ b/lib/command.js
@@ -1,6 +1,7 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
-  var compile, compileToFile, each, eachFile, eco, exec, fs, indent, mkdir, parseOptions, path, preprocessArgs, printUsage, printVersion, read, stripExtension, sys;
-  var __slice = Array.prototype.slice;
+  var compile, compileToFile, each, eachFile, eco, exec, fs, indent, mkdir, parseOptions, path, preprocessArgs, printUsage, printVersion, read, stripExtension, sys,
+    __slice = [].slice;
 
   fs = require("fs");
 
@@ -20,20 +21,20 @@
   };
 
   printVersion = function() {
-    var package;
-    package = JSON.parse(fs.readFileSync(__dirname + "/../package.json", "utf8"));
-    console.error("Eco version " + package.version);
+    var pkg;
+    pkg = JSON.parse(fs.readFileSync(__dirname + "/../pkg.json", "utf8"));
+    console.error("Eco version " + pkg.version);
     return process.exit(0);
   };
 
   preprocessArgs = function(args) {
-    var arg, char, match, result, _i, _j, _len, _len2, _ref;
+    var arg, char, match, result, _i, _j, _len, _len1, _ref;
     result = [];
     for (_i = 0, _len = args.length; _i < _len; _i++) {
       arg = args[_i];
       if (match = /^-([a-z]{2,})/.exec(arg)) {
         _ref = match[1].split('');
-        for (_j = 0, _len2 = _ref.length; _j < _len2; _j++) {
+        for (_j = 0, _len1 = _ref.length; _j < _len1; _j++) {
           char = _ref[_j];
           result.push("-" + char);
         }
@@ -88,7 +89,9 @@
         }
       }
     }
-    if (option) printUsage();
+    if (option) {
+      printUsage();
+    }
     return options;
   };
 
@@ -116,13 +119,19 @@
     var traverse;
     traverse = function(root, dir, done) {
       return fs.readdir(dir, function(err, entries) {
-        if (err) return callback(err);
+        if (err) {
+          return callback(err);
+        }
         return each(entries, function(entry, proceed) {
           var file;
-          if (entry == null) return done();
+          if (entry == null) {
+            return done();
+          }
           file = path.join(dir, entry);
           return fs.stat(file, function(err, stat) {
-            if (err) return callback(err);
+            if (err) {
+              return callback(err);
+            }
             if (stat.isFile() && /\.eco$/.test(file)) {
               return callback(null, file, root, proceed);
             } else if (stat.isDirectory()) {
@@ -135,10 +144,14 @@
       });
     };
     return each(files, function(file, proceed) {
-      if (file == null) return;
+      if (file == null) {
+        return;
+      }
       return fs.stat(file, function(err, stat) {
         var root;
-        if (err) return callback(err);
+        if (err) {
+          return callback(err);
+        }
         if (stat.isDirectory()) {
           return traverse(file, file, proceed);
         } else {
@@ -156,7 +169,9 @@
   compile = function(infile, identifier, name, callback) {
     return fs.readFile(infile, "utf8", function(err, source) {
       var template;
-      if (err) return callback(err);
+      if (err) {
+        return callback(err);
+      }
       template = indent(eco.precompile(source), 2);
       return callback(null, "(function() {\n  this." + identifier + " || (this." + identifier + " = {});\n  this." + identifier + "[" + (JSON.stringify(name)) + "] = " + (template.slice(2)) + ";\n}).call(this);");
     });
@@ -178,10 +193,14 @@
     }
     outfile = path.join(outdir != null ? outdir : root, name + ".js");
     return mkdir(path.dirname(outfile), function(err) {
-      if (err) return callback(err);
+      if (err) {
+        return callback(err);
+      }
       return compile(infile, identifier, name, function(err, result) {
         return fs.writeFile(outfile, result + "\n", "utf8", function(err) {
-          if (err) return callback(err);
+          if (err) {
+            return callback(err);
+          }
           return callback(null, outfile, name);
         });
       });
@@ -190,29 +209,45 @@
 
   exports.run = function(args) {
     var infile, name, options;
-    if (args == null) args = process.argv.slice(2);
+    if (args == null) {
+      args = process.argv.slice(2);
+    }
     options = parseOptions(args);
     if (options.stdio) {
-      if (options.files.length || options.output) printUsage();
+      if (options.files.length || options.output) {
+        printUsage();
+      }
       process.openStdin();
       return read(process.stdin, function(source) {
         return sys.puts(eco.precompile(source));
       });
     } else if (options.print) {
-      if (options.files.length !== 1 || options.output) printUsage();
+      if (options.files.length !== 1 || options.output) {
+        printUsage();
+      }
       infile = options.files[0];
       name = stripExtension(path.basename(infile));
       return compile(infile, options.identifier, name, function(err, result) {
-        if (err) throw err;
+        if (err) {
+          throw err;
+        }
         return sys.puts(result);
       });
     } else {
-      if (!options.files.length) printUsage();
+      if (!options.files.length) {
+        printUsage();
+      }
       return eachFile(options.files, function(err, infile, root, proceed) {
-        if (err) throw err;
-        if (infile == null) return;
+        if (err) {
+          throw err;
+        }
+        if (infile == null) {
+          return;
+        }
         return compileToFile(infile, options.identifier, root, options.output, function(err, outfile, name) {
-          if (err) throw err;
+          if (err) {
+            throw err;
+          }
           console.error("" + (JSON.stringify(name)) + ": " + infile + " -> " + outfile);
           return proceed();
         });
diff --git a/lib/compiler.js b/lib/compiler.js
index 0eff0e5..7f624eb 100644
--- a/lib/compiler.js
+++ b/lib/compiler.js
@@ -1,3 +1,4 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
   var CoffeeScript, indent, precompile, preprocess;
 
diff --git a/lib/index.js b/lib/index.js
index bca5ac8..4a6fa8e 100644
--- a/lib/index.js
+++ b/lib/index.js
@@ -1,3 +1,4 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
   var compile, eco, precompile, preprocess, _ref;
 
@@ -6,9 +7,9 @@
   preprocess = require("./preprocessor").preprocess;
 
   module.exports = eco = function(source) {
-    var _base, _ref2;
+    var _base, _ref1;
     if (eco.cache) {
-      return (_ref2 = (_base = eco.cache)[source]) != null ? _ref2 : _base[source] = compile(source);
+      return (_ref1 = (_base = eco.cache)[source]) != null ? _ref1 : _base[source] = compile(source);
     } else {
       return compile(source);
     }
diff --git a/lib/preprocessor.js b/lib/preprocessor.js
index 5a33c64..6e0c558 100644
--- a/lib/preprocessor.js
+++ b/lib/preprocessor.js
@@ -1,3 +1,4 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
   var Preprocessor, Scanner, util;
 
@@ -38,7 +39,11 @@
 
     Preprocessor.prototype.printString = function(string) {
       if (string.length) {
-        return this.record("__out.push " + (util.inspectString(string)));
+        string = util.trim(string);
+        string = util.inspectString(string);
+        if (string.length && string !== "\n") {
+          return this.record("__out.push " + string);
+        }
       }
     };
 
@@ -71,7 +76,9 @@
 
     Preprocessor.prototype.dedent = function() {
       this.level--;
-      if (this.level < 0) this.fail("unexpected dedent");
+      if (this.level < 0) {
+        this.fail("unexpected dedent");
+      }
       if (this.captures[0] === this.level) {
         this.captures.shift();
         return this.dedent();
diff --git a/lib/scanner.js b/lib/scanner.js
index cd7258d..2e06bfd 100644
--- a/lib/scanner.js
+++ b/lib/scanner.js
@@ -1,3 +1,4 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
   var Scanner, StringScanner, trim;
 
@@ -100,10 +101,16 @@
       } else if (this.tail) {
         this.mode = "data";
         code = trim(this.flush());
-        if (this.arrow) code += " " + this.arrow;
-        if (this.isDedentable(code)) callback(["dedent"]);
+        if (this.arrow) {
+          code += " " + this.arrow;
+        }
+        if (this.isDedentable(code)) {
+          callback(["dedent"]);
+        }
         callback(["recordCode", code]);
-        if (this.directive) return callback(["indent", this.arrow]);
+        if (this.directive) {
+          return callback(["indent", this.arrow]);
+        }
       }
     };
 
diff --git a/lib/util.js b/lib/util.js
index 80fed3e..9142b70 100644
--- a/lib/util.js
+++ b/lib/util.js
@@ -1,3 +1,4 @@
+// Generated by CoffeeScript 1.3.3
 (function() {
   var repeat, specialCharacters;
 
@@ -22,7 +23,7 @@
   };
 
   exports.trim = function(string) {
-    return string.replace(/^\s+/, "").replace(/\s+$/, "");
+    return string.replace(/^\s+/, "").replace(/\s+$/, "").replace(/\s{2,}/gm, " ").replace(/\\n/gm, "");
   };
 
   specialCharacters = {
@@ -42,7 +43,9 @@
         return specialCharacters[character];
       } else {
         code = character.charCodeAt(0).toString(16);
-        if (code.length === 1) code = "0" + code;
+        if (code.length === 1) {
+          code = "0" + code;
+        }
         return "\\u00" + code;
       }
     });
diff --git a/package.json b/package.json
index e8730af..5a7c454 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 { "name": "eco"
 , "description": "Embedded CoffeeScript templates"
 , "author": "Sam Stephenson"
-, "version": "1.1.0-rc-3"
+, "version": "1.1.1-beta"
 , "licenses": [
   { "type": "MIT"
   , "url": "https://github.com/sstephenson/eco/raw/master/LICENSE"
diff --git a/src/command.coffee b/src/command.coffee
index 7c44283..93fd065 100644
--- a/src/command.coffee
+++ b/src/command.coffee
@@ -22,8 +22,8 @@ printUsage = ->
   process.exit 1
 
 printVersion = ->
-  package = JSON.parse fs.readFileSync __dirname + "/../package.json", "utf8"
-  console.error "Eco version #{package.version}"
+  pkg = JSON.parse fs.readFileSync __dirname + "/../pkg.json", "utf8"
+  console.error "Eco version #{pkg.version}"
   process.exit 0
 
 preprocessArgs = (args) ->
diff --git a/src/preprocessor.coffee b/src/preprocessor.coffee
index f698dd1..08540b0 100644
--- a/src/preprocessor.coffee
+++ b/src/preprocessor.coffee
@@ -3,7 +3,7 @@ util    = require "./util"
 
 module.exports = class Preprocessor
   @preprocess: (source) ->
-    preprocessor = new Preprocessor source
+    preprocessor = new Preprocessor source#.replace(/\s{2,}/gm, "")
     preprocessor.preprocess()
 
   constructor: (source) ->
@@ -25,7 +25,9 @@ module.exports = class Preprocessor
 
   printString: (string) ->
     if string.length
-      @record "__out.push #{util.inspectString string}"
+      string = util.trim string
+      string = util.inspectString string
+      @record "__out.push #{string}" if string.length and string != "\n"
 
   beginCode: (options) ->
     @options = options
diff --git a/src/util.coffee b/src/util.coffee
index 9f40cf6..1947b4a 100644
--- a/src/util.coffee
+++ b/src/util.coffee
@@ -10,6 +10,9 @@ exports.trim = (string) ->
   string
     .replace(/^\s+/, "")
     .replace(/\s+$/, "")
+    .replace(/\s+/gm, " ")
+    .replace(/\\n/gm,"")
+    .replace(/<\!--[^\-]+-->/g, "")
 
 specialCharacters =
   '\\': '\\\\'