diff --git a/Gemfile.lock b/Gemfile.lock
new file mode 100644
index 00000000..5b86ed71
--- /dev/null
+++ b/Gemfile.lock
@@ -0,0 +1,156 @@
+GIT
+  remote: git://github.com/johnbintz/fakefs.git
+  revision: 7363b6f13bfcd9f583bbf7cd1e0d65c2dc656db7
+  specs:
+    fakefs (0.3.1)
+
+PATH
+  remote: .
+  specs:
+    compass (0.11.3.rails.0.2124003)
+      chunky_png (~> 1.2)
+      fssm (>= 0.2.7)
+      sass (~> 3.1)
+
+GEM
+  remote: http://rubygems.org/
+  specs:
+    ZenTest (4.5.0)
+    abstract (1.0.0)
+    actionmailer (3.0.9)
+      actionpack (= 3.0.9)
+      mail (~> 2.2.19)
+    actionpack (3.0.9)
+      activemodel (= 3.0.9)
+      activesupport (= 3.0.9)
+      builder (~> 2.1.2)
+      erubis (~> 2.6.6)
+      i18n (~> 0.5.0)
+      rack (~> 1.2.1)
+      rack-mount (~> 0.6.14)
+      rack-test (~> 0.5.7)
+      tzinfo (~> 0.3.23)
+    activemodel (3.0.9)
+      activesupport (= 3.0.9)
+      builder (~> 2.1.2)
+      i18n (~> 0.5.0)
+    activerecord (3.0.9)
+      activemodel (= 3.0.9)
+      activesupport (= 3.0.9)
+      arel (~> 2.0.10)
+      tzinfo (~> 0.3.23)
+    activeresource (3.0.9)
+      activemodel (= 3.0.9)
+      activesupport (= 3.0.9)
+    activesupport (3.0.9)
+    addressable (2.2.6)
+    arel (2.0.10)
+    autotest (4.4.6)
+      ZenTest (>= 4.4.1)
+    autotest-fsevent (0.2.5)
+      sys-uname
+    builder (2.1.2)
+    chunky_png (1.2.0)
+    compass-validator (3.0.1)
+    css_parser (1.0.1)
+    cucumber (0.9.4)
+      builder (~> 2.1.2)
+      diff-lcs (~> 1.1.2)
+      gherkin (~> 2.2.9)
+      json (~> 1.4.6)
+      term-ansicolor (~> 1.0.5)
+    diff-lcs (1.1.2)
+    em-dir-watcher (0.9.4)
+    em-websocket (0.3.0)
+      addressable (>= 2.1.1)
+      eventmachine (>= 0.12.9)
+    erubis (2.6.6)
+      abstract (>= 1.0.0)
+    eventmachine (0.12.10)
+    fssm (0.2.7)
+    gherkin (2.2.9)
+      json (~> 1.4.6)
+      term-ansicolor (~> 1.0.5)
+    haml (3.1.2)
+    i18n (0.5.0)
+    json (1.4.6)
+    livereload (1.6)
+      em-dir-watcher (>= 0.1)
+      em-websocket (>= 0.1.2)
+      ruby-json (>= 1.1.2)
+    mail (2.2.19)
+      activesupport (>= 2.3.6)
+      i18n (>= 0.4.0)
+      mime-types (~> 1.16)
+      treetop (~> 1.4.8)
+    mime-types (1.16)
+    mocha (0.9.12)
+    polyglot (0.3.1)
+    rack (1.2.3)
+    rack-mount (0.6.14)
+      rack (>= 1.0.0)
+    rack-test (0.5.7)
+      rack (>= 1.0)
+    rails (3.0.9)
+      actionmailer (= 3.0.9)
+      actionpack (= 3.0.9)
+      activerecord (= 3.0.9)
+      activeresource (= 3.0.9)
+      activesupport (= 3.0.9)
+      bundler (~> 1.0)
+      railties (= 3.0.9)
+    railties (3.0.9)
+      actionpack (= 3.0.9)
+      activesupport (= 3.0.9)
+      rake (>= 0.8.7)
+      rdoc (~> 3.4)
+      thor (~> 0.14.4)
+    rake (0.9.2)
+    rb-fsevent (0.4.0)
+    rcov (0.9.9)
+    rdoc (3.6.1)
+    rspec (2.0.1)
+      rspec-core (~> 2.0.1)
+      rspec-expectations (~> 2.0.1)
+      rspec-mocks (~> 2.0.1)
+    rspec-core (2.0.1)
+    rspec-expectations (2.0.1)
+      diff-lcs (>= 1.1.2)
+    rspec-mocks (2.0.1)
+      rspec-core (~> 2.0.1)
+      rspec-expectations (~> 2.0.1)
+    ruby-json (1.1.2)
+    ruby-prof (0.10.7)
+    rubyzip (0.9.4)
+    sass (3.1.3)
+    sys-uname (0.8.5)
+    term-ansicolor (1.0.5)
+    thor (0.14.6)
+    timecop (0.3.5)
+    treetop (1.4.9)
+      polyglot (>= 0.3.1)
+    tzinfo (0.3.28)
+
+PLATFORMS
+  ruby
+
+DEPENDENCIES
+  autotest
+  autotest-fsevent
+  compass!
+  compass-validator (= 3.0.1)
+  css_parser (~> 1.0.1)
+  cucumber (~> 0.9.2)
+  diff-lcs (~> 1.1.2)
+  fakefs!
+  haml (~> 3.1)
+  livereload
+  mocha
+  rails (~> 3.0.0.rc)
+  rb-fsevent
+  rcov
+  rspec (~> 2.0.0)
+  ruby-prof
+  rubyzip
+  sass (~> 3.1)
+  timecop
diff --git a/VERSION.yml b/VERSION.yml
index 594f4d73..f8ec44cf 100644
--- a/VERSION.yml
+++ b/VERSION.yml
@@ -4,4 +4,4 @@
 :patch: 0
 :state: alpha
 :build: 0
-:name: Alnilam
+:name: Alnilam
\ No newline at end of file
diff --git a/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss b/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
index d40740dc..1b268a84 100644
--- a/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
+++ b/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
@@ -53,13 +53,13 @@ $disable-magic-sprite-selectors:false !default;
 // If a base class is provided, then each class will extend it.
 //
 // If `$dimensions` is `true`, the sprite dimensions will specified.
-@mixin sprites($map, $sprite-names, $base-class: false, $dimensions: false, $prefix: sprite-map-name($map)) {
+@mixin sprites($map, $sprite-names, $base-class: false, $dimensions: false, $prefix: sprite-map-name($map), $offset-x: 0, $offset-y: 0) {
   @each $sprite-name in $sprite-names {
     @if sprite_does_not_have_parent($map, $sprite-name) {
       $full-sprite-name: "#{$prefix}-#{$sprite-name}";
       .#{$full-sprite-name} {
         @if $base-class { @extend #{$base-class}; }
-        @include sprite($map, $sprite-name, $dimensions);
+        @include sprite($map, $sprite-name, $dimensions, $offset-x, $offset-y);
       }
     }
   }
diff --git a/lib/compass/app_integration/rails.rb b/lib/compass/app_integration/rails.rb
index dcd1b0e2..a850d8d7 100644
--- a/lib/compass/app_integration/rails.rb
+++ b/lib/compass/app_integration/rails.rb
@@ -24,8 +24,10 @@ module Compass
       end
 
       def configuration
-        Compass::Configuration::Data.new('rails').
-          extend(ConfigurationDefaults)
+        config = Compass::Configuration::Data.new('rails')
+        config.extend(ConfigurationDefaults)
+        config.extend(ConfigurationDefaultsWithAssetPipeline) if Sass::Util.ap_geq?('3.1.0.beta')
+        config
       end
 
       def env
@@ -48,12 +50,17 @@ module Compass
         end
       end
 
-      def initialize!(config = nil)
+      def check_for_double_boot!
         if booted?
           Compass::Util.compass_warn("Warning: Compass was booted twice. Compass has a Railtie now; please remove your initializer.")
         else
           booted!
         end
+      end
+
+      # Rails 2.x projects use this in their compass initializer.
+      def initialize!(config = nil)
+        check_for_double_boot!
         config ||= Compass.detect_configuration_file(root)
         Compass.add_project_configuration(config, :project_type => :rails)
         Compass.discover_extensions!
diff --git a/lib/compass/app_integration/rails/actionpack2x.rb b/lib/compass/app_integration/rails/actionpack2x.rb
new file mode 100644
index 00000000..f48299bb
--- /dev/null
+++ b/lib/compass/app_integration/rails/actionpack2x.rb
@@ -0,0 +1,10 @@
+%w(action_controller sass_plugin urls).each do |lib|
+  require "compass/app_integration/rails/actionpack2x/#{lib}"
+end
+
+# Wierd that this has to be re-included to pick up sub-modules. Ruby bug?
+class Sass::Script::Functions::EvaluationContext
+  include Sass::Script::Functions
+  private
+  include ActionView::Helpers::AssetTagHelper
+end
diff --git a/lib/compass/app_integration/rails/actionpack2/action_controller.rb b/lib/compass/app_integration/rails/actionpack2x/action_controller.rb
similarity index 100%
rename from lib/compass/app_integration/rails/actionpack2/action_controller.rb
rename to lib/compass/app_integration/rails/actionpack2x/action_controller.rb
diff --git a/lib/compass/app_integration/rails/actionpack2/sass_plugin.rb b/lib/compass/app_integration/rails/actionpack2x/sass_plugin.rb
similarity index 100%
rename from lib/compass/app_integration/rails/actionpack2/sass_plugin.rb
rename to lib/compass/app_integration/rails/actionpack2x/sass_plugin.rb
diff --git a/lib/compass/app_integration/rails/actionpack2/urls.rb b/lib/compass/app_integration/rails/actionpack2x/urls.rb
similarity index 100%
rename from lib/compass/app_integration/rails/actionpack2/urls.rb
rename to lib/compass/app_integration/rails/actionpack2x/urls.rb
diff --git a/lib/compass/app_integration/rails/actionpack30.rb b/lib/compass/app_integration/rails/actionpack30.rb
new file mode 100644
index 00000000..05e24df8
--- /dev/null
+++ b/lib/compass/app_integration/rails/actionpack30.rb
@@ -0,0 +1,11 @@
+# TODO figure something out so image_path works with rails integration
+%w(railtie).each do |lib|
+  require "compass/app_integration/rails/actionpack30/#{lib}"
+end
+
+# Wierd that this has to be re-included to pick up sub-modules. Ruby bug?
+class Sass::Script::Functions::EvaluationContext
+  include Sass::Script::Functions
+  private
+  include ActionView::Helpers::AssetTagHelper
+end
diff --git a/lib/compass/app_integration/rails/actionpack3/railtie.rb b/lib/compass/app_integration/rails/actionpack30/railtie.rb
similarity index 89%
rename from lib/compass/app_integration/rails/actionpack3/railtie.rb
rename to lib/compass/app_integration/rails/actionpack30/railtie.rb
index a3fc5498..2e52ae3b 100644
--- a/lib/compass/app_integration/rails/actionpack3/railtie.rb
+++ b/lib/compass/app_integration/rails/actionpack30/railtie.rb
@@ -40,7 +40,10 @@ module Compass
     initializer "compass.initialize_rails" do |app|
       # Configure compass for use within rails, and provide the project configuration
       # that came via the rails boot process.
-      Compass::AppIntegration::Rails.initialize!(app.config.compass)
+      Compass::AppIntegration::Rails.check_for_double_boot!
+      Compass.discover_extensions!
+      Compass.configure_sass_plugin!
+      Compass.handle_configuration_change!
     end
   end
 end
\ No newline at end of file
diff --git a/lib/compass/app_integration/rails/actionpack31.rb b/lib/compass/app_integration/rails/actionpack31.rb
new file mode 100644
index 00000000..bbd2d531
--- /dev/null
+++ b/lib/compass/app_integration/rails/actionpack31.rb
@@ -0,0 +1,5 @@
+# TODO figure something out so image_path works with rails integration
+%w(railtie).each do |lib|
+  require "compass/app_integration/rails/actionpack31/#{lib}"
+end
+
diff --git a/lib/compass/app_integration/rails/actionpack31/railtie.rb b/lib/compass/app_integration/rails/actionpack31/railtie.rb
new file mode 100644
index 00000000..6604e836
--- /dev/null
+++ b/lib/compass/app_integration/rails/actionpack31/railtie.rb
@@ -0,0 +1,50 @@
+require 'compass'
+require 'rails'
+
+class Rails::Railtie::Configuration
+  # Adds compass configuration accessor to the application configuration.
+  #
+  # If a configuration file for compass exists, it will be read in and
+  # the project's configuration values will already be set on the config
+  # object.
+  #
+  # For example:
+  #
+  #     module MyApp
+  #       class Application < Rails::Application
+  #          config.compass.line_comments = !Rails.env.production?
+  #          config.compass.fonts_dir = "app/assets/fonts"
+  #       end
+  #     end
+  #
+  # It is suggested that you create a compass configuration file if you
+  # want a quicker boot time when using the compass command line tool.
+  #
+  # For more information on available configuration options see:
+  # http://compass-style.org/help/tutorials/configuration-reference/
+  def compass
+    @compass ||= begin
+      data = if (config_file = Compass.detect_configuration_file) && (config_data = Compass.configuration_for(config_file))
+        config_data
+      else
+        Compass::Configuration::Data.new("rails_config")
+      end
+      data.project_type = :rails # Forcing this makes sure all the rails defaults will be loaded.
+      Compass.add_project_configuration(data)
+      data
+    end
+    @compass
+  end
+end
+
+module Compass
+  class Railtie < Rails::Railtie
+    initializer "compass.initialize_rails" do |app|
+      # Configure compass for use within rails, and provide the project configuration
+      # that came via the rails boot process.
+      Compass::AppIntegration::Rails.check_for_double_boot!
+      Compass.discover_extensions!
+      Compass.configure_rails!(app)
+    end
+  end
+end
\ No newline at end of file
diff --git a/lib/compass/app_integration/rails/configuration_defaults.rb b/lib/compass/app_integration/rails/configuration_defaults.rb
index fbab17e2..06aaf311 100644
--- a/lib/compass/app_integration/rails/configuration_defaults.rb
+++ b/lib/compass/app_integration/rails/configuration_defaults.rb
@@ -1,6 +1,28 @@
 module Compass
   module AppIntegration
     module Rails
+
+      module ConfigurationDefaultsWithAssetPipeline
+        # These methods overwrite the old rails defaults
+        # when rails 3.1 is detected.
+
+        def default_sass_dir
+          File.join("app", "assets", "stylesheets")
+        end
+
+        def default_images_dir
+          File.join("app", "assets", "images")
+        end
+
+        def default_fonts_dir
+          File.join("app", "assets", "fonts")
+        end
+
+        def default_javascripts_dir
+          File.join("app", "assets", "javascripts")
+        end
+      end
+
       module ConfigurationDefaults
 
         def project_type_without_default
@@ -8,11 +30,7 @@ module Compass
         end
 
         def default_sass_dir
-          if Sass::Util.ap_geq?('3.1.0.beta')
-            File.join("app", "assets", "stylesheets")
-          else
-            File.join("app", "stylesheets")
-          end
+          File.join("app", "stylesheets")
         end
 
         def default_css_dir
@@ -28,11 +46,7 @@ module Compass
         end
 
         def default_javascripts_dir
-          if Sass::Util.ap_geq?('3.1.0.beta')
-            File.join("app", "assets", "javascripts")
-          else
-            File.join("public", "javascripts")
-          end
+          File.join("public", "javascripts")
         end
 
         def default_http_images_path
diff --git a/lib/compass/app_integration/rails/runtime.rb b/lib/compass/app_integration/rails/runtime.rb
index d2765ef0..815fd29f 100644
--- a/lib/compass/app_integration/rails/runtime.rb
+++ b/lib/compass/app_integration/rails/runtime.rb
@@ -3,25 +3,15 @@ unless defined?(Compass::RAILS_LOADED)
   begin
     require 'action_pack/version'
     if ActionPack::VERSION::MAJOR >= 3
-      # TODO figure something out so image_path works with rails integration
-      %w(railtie).each do |lib|
-        require "compass/app_integration/rails/actionpack3/#{lib}"
+      if ActionPack::VERSION::MINOR < 1
+        require 'compass/app_integration/rails/actionpack30'
+      else
+        require 'compass/app_integration/rails/actionpack31'
       end
     else
-      %w(action_controller sass_plugin urls).each do |lib|
-        require "compass/app_integration/rails/actionpack2/#{lib}"
-      end
+      require 'compass/app_integration/rails/actionpack2x'
     end
-  rescue LoadError => e
+  rescue LoadError, NameError
     $stderr.puts "Compass could not access the rails environment."
-  rescue NameError => e
-    $stderr.puts "Compass could not access the rails environment."
-  end
-  
-  # Wierd that this has to be re-included to pick up sub-modules. Ruby bug?
-  class Sass::Script::Functions::EvaluationContext
-    include Sass::Script::Functions
-    private
-    include ActionView::Helpers::AssetTagHelper
   end
 end
diff --git a/lib/compass/configuration/helpers.rb b/lib/compass/configuration/helpers.rb
index db6f8af6..9017f735 100644
--- a/lib/compass/configuration/helpers.rb
+++ b/lib/compass/configuration/helpers.rb
@@ -77,6 +77,12 @@ module Compass
         end
       end
 
+      def configure_rails!(app)
+        app.config.compass.to_sass_engine_options.each do |key, value|
+          app.config.sass.send(:"#{key}=", value)
+        end
+      end
+
       def sass_engine_options
         configuration.to_sass_engine_options
       end
diff --git a/lib/compass/configuration/serialization.rb b/lib/compass/configuration/serialization.rb
index ff41ecc2..bf7a5288 100644
--- a/lib/compass/configuration/serialization.rb
+++ b/lib/compass/configuration/serialization.rb
@@ -27,6 +27,7 @@ module Compass
         if @added_import_paths
           self.additional_import_paths ||= []
           self.additional_import_paths += @added_import_paths
+          self.additional_import_paths.uniq!
         end
         issue_deprecation_warnings
       end
diff --git a/lib/compass/sass_extensions/functions/sprites.rb b/lib/compass/sass_extensions/functions/sprites.rb
index 7639f4da..d006d3ee 100644
--- a/lib/compass/sass_extensions/functions/sprites.rb
+++ b/lib/compass/sass_extensions/functions/sprites.rb
@@ -34,7 +34,7 @@ module Compass::SassExtensions::Functions::Sprites
   #
   #     background: url('/images/icons.png?12345678') 0 -24px no-repeat;
   def sprite(map, sprite, offset_x = ZERO, offset_y = ZERO)
-    sprite = convert_sprite_name(sprite)
+    sprite = convert_sprite_name(sprite)    
     verify_map(map)
     unless sprite.is_a?(Sass::Script::String)
       raise Sass::SyntaxError, %Q(The second argument to sprite() must be a sprite name. See http://beta.compass-style.org/help/tutorials/spriting/ for more information.)
diff --git a/lib/compass/sprite_importer.rb b/lib/compass/sprite_importer.rb
index d46403d9..1bda1162 100644
--- a/lib/compass/sprite_importer.rb
+++ b/lib/compass/sprite_importer.rb
@@ -132,13 +132,13 @@ $#{name}-layout:vertical !default;
   @include sprite($#{name}-sprites, $name, $dimensions, $offset-x, $offset-y)
 }
 
-@mixin #{name}-sprites($sprite-names, $dimensions: $#{name}-sprite-dimensions, $prefix: sprite-map-name($#{name}-sprites)) {
-  @include sprites($#{name}-sprites, $sprite-names, $#{name}-sprite-base-class, $dimensions, $prefix)
+@mixin #{name}-sprites($sprite-names, $dimensions: $#{name}-sprite-dimensions, $prefix: sprite-map-name($#{name}-sprites), $offset-x: 0, $offset-y: 0) {
+  @include sprites($#{name}-sprites, $sprite-names, $#{name}-sprite-base-class, $dimensions, $prefix, $offset-x, $offset-y)
 }
 
 // Generates a class for each sprited image.
-@mixin all-#{name}-sprites($dimensions: $#{name}-sprite-dimensions, $prefix: sprite-map-name($#{name}-sprites)) {
-  @include #{name}-sprites(#{sprite_names(uri).join(" ")}, $dimensions, $prefix);
+@mixin all-#{name}-sprites($dimensions: $#{name}-sprite-dimensions, $prefix: sprite-map-name($#{name}-sprites), $offset-x: 0, $offset-y: 0) {
+  @include #{name}-sprites(#{sprite_names(uri).join(" ")}, $dimensions, $prefix, $offset-x, $offset-y);
 }
 SCSS
     end
diff --git a/test/integrations/sprites_test.rb b/test/integrations/sprites_test.rb
index 99a7d63e..3db8e640 100644
--- a/test/integrations/sprites_test.rb
+++ b/test/integrations/sprites_test.rb
@@ -448,7 +448,7 @@ class SpritesTest < Test::Unit::TestCase
     CSS
   end
 
-  it "should render corret sprite with css selectors via issue#248" do
+  it "should render correct sprite with css selectors via issue#248" do
     css = render <<-SCSS
       @import "selectors/*.png";
       @include all-selectors-sprites;
@@ -472,8 +472,33 @@ class SpritesTest < Test::Unit::TestCase
       }
     CSS
   end
+  
+  it "should honor offsets when rendering selectors via issue#449" do
+    css = render <<-SCSS
+      @import "selectors/*.png";
+      @include all-selectors-sprites($offset-x: 20px, $offset-y: 20px);
+    SCSS
+    assert_correct css, <<-CSS
+      .selectors-sprite, .selectors-ten-by-ten {
+        background: url('/selectors-sedfef809e2.png') no-repeat;
+      }
+      
+      .selectors-ten-by-ten {
+        background-position: 20px 20px;
+      }
+      .selectors-ten-by-ten:hover, .selectors-ten-by-ten.ten-by-ten_hover, .selectors-ten-by-ten.ten-by-ten-hover {
+        background-position: 20px 0;
+      }
+      .selectors-ten-by-ten:target, .selectors-ten-by-ten.ten-by-ten_target, .selectors-ten-by-ten.ten-by-ten-target {
+        background-position: 20px -10px;
+      }
+      .selectors-ten-by-ten:active, .selectors-ten-by-ten.ten-by-ten_active, .selectors-ten-by-ten.ten-by-ten-active {
+        background-position: 20px 10px;
+      }
+    CSS
+  end
 
-  it "should render corret sprite with css selectors via magic mixin" do
+  it "should render correct sprite with css selectors via magic mixin" do
     css = render <<-SCSS
       @import "selectors/*.png";
       a {
@@ -499,6 +524,7 @@ class SpritesTest < Test::Unit::TestCase
       }
     CSS
   end
+
   
   it "should not render corret sprite with css selectors via magic mixin" do
     css = render <<-SCSS