diff --git a/doc-src/content/CHANGELOG.markdown b/doc-src/content/CHANGELOG.markdown
index 3b966e4b..218c8b5e 100644
--- a/doc-src/content/CHANGELOG.markdown
+++ b/doc-src/content/CHANGELOG.markdown
@@ -14,6 +14,13 @@ The Documentation for the [latest stable release](http://compass-style.org/docs/
 
 The Documentation for the [latest preview release](http://beta.compass-style.org/)
 
+0.11.3 (PENDING)
+-------------------
+* Sprites will now by default remove any old versions of the sprite a new variable has been created to override this.
+* Nested sprites are now supported using globs `@import 'nested/**/*.png';`.
+* Fixed a bug that was causing sprite variable options to not get passed to the image classes.
+* Sass Colors will no longer cause an error if you use them as sprite names.
+
 0.11.2 (05/01/2011)
 -------------------
 
diff --git a/doc-src/content/help/tutorials/spriting.markdown b/doc-src/content/help/tutorials/spriting.markdown
index 77169578..bf3d1b08 100644
--- a/doc-src/content/help/tutorials/spriting.markdown
+++ b/doc-src/content/help/tutorials/spriting.markdown
@@ -182,6 +182,7 @@ the sprites were contained within a folder called `icon`.
   included in each sprite's CSS output. Can be `true` or `false`. Defaults to `false`.
 * `$<map>-sprite-base-class` -- The base class for these sprites. Defaults to `.<map>-sprite`.
   E.g. `$icon-sprite-base-class: ".action-icon"`
+* `$<map>-clean-up` -- Whether or not to removed the old sprite file when a new one is created. Defaults to true
 
 ### Options per Sprite
 
diff --git a/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss b/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
index bc63081b..c346e181 100644
--- a/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
+++ b/frameworks/compass/stylesheets/compass/utilities/sprites/_base.scss
@@ -15,14 +15,15 @@ $sprite-selectors: hover, target, active !default;
   background-position: sprite-position($map, $sprite, $offset-x, $offset-y);  
 }
 
+
+// Determines if you want to include magic selectors in your sprites
+$disable-magic-sprite-selectors:false !default;
+
 // Include the position and (optionally) dimensions of this `$sprite`
 // in the given sprite `$map`. The sprite url should come from either a base
 // class or you can specify the `sprite-url` explicitly like this:
 //
 //     background: $map no-repeat;
-
-$disable-magic-sprite-selectors:false !default;
-
 @mixin sprite($map, $sprite, $dimensions: false, $offset-x: 0, $offset-y: 0) {
   @include sprite-background-position($map, $sprite, $offset-x, $offset-y);
   @if $dimensions {
diff --git a/lib/compass/sass_extensions/functions/sprites.rb b/lib/compass/sass_extensions/functions/sprites.rb
index 18ca2009..69b7599e 100644
--- a/lib/compass/sass_extensions/functions/sprites.rb
+++ b/lib/compass/sass_extensions/functions/sprites.rb
@@ -22,7 +22,7 @@ module Compass::SassExtensions::Functions::Sprites
   def sprite_map(glob, kwargs = {})
     kwargs.extend VariableReader
     Compass::SassExtensions::Sprites::Base.from_uri(glob, self, kwargs)
-  end
+  end 
   Sass::Script::Functions.declare :sprite_map, [:glob], :var_kwargs => true
 
   # Returns the image and background position for use in a single shorthand property:
@@ -34,6 +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)
     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.)
@@ -56,6 +57,7 @@ module Compass::SassExtensions::Functions::Sprites
 
   # Returns the path to the original image file for the sprite with the given name
   def sprite_file(map, sprite)
+    sprite = convert_sprite_name(sprite)
     verify_map(map, "sprite")
     verify_sprite(sprite)
     if image = map.image_for(sprite.value)
@@ -68,6 +70,7 @@ module Compass::SassExtensions::Functions::Sprites
 
   # Returns voolean if sprite has a parent
   def sprite_does_not_have_parent(map, sprite)
+    sprite = convert_sprite_name(sprite)
     verify_map map
     verify_sprite sprite
     Sass::Script::Bool.new map.image_for(sprite.value).parent.nil?
@@ -77,6 +80,7 @@ module Compass::SassExtensions::Functions::Sprites
 
   # Returns boolean if sprite has the selector
   def sprite_has_selector(map, sprite, selector)
+    sprite = convert_sprite_name(sprite)
     verify_map map
     verify_sprite sprite
     unless VALID_SELECTORS.include?(selector.value)
@@ -118,6 +122,7 @@ module Compass::SassExtensions::Functions::Sprites
   #
   #     background-position: 3px -36px;
   def sprite_position(map, sprite = nil, offset_x = ZERO, offset_y = ZERO)
+    sprite = convert_sprite_name(sprite)
     verify_map(map, "sprite-position")
     unless sprite && sprite.is_a?(Sass::Script::String)
       raise Sass::SyntaxError, %Q(The second argument to sprite-position must be a sprite name. See http://beta.compass-style.org/help/tutorials/spriting/ for more information.)
@@ -147,6 +152,13 @@ module Compass::SassExtensions::Functions::Sprites
 
 protected
 
+  def convert_sprite_name(sprite)
+    if sprite.is_a?(Sass::Script::Color)
+      return Sass::Script::String.new(Sass::Script::Color::HTML4_COLORS_REVERSE[sprite.rgb])
+    end
+    sprite
+  end
+
   def verify_map(map, error = "sprite")
     unless map.is_a?(Compass::SassExtensions::Sprites::Base)
       missing_sprite!(error)
diff --git a/lib/compass/sass_extensions/sprites/base.rb b/lib/compass/sass_extensions/sprites/base.rb
index 194a5601..4bdea36b 100644
--- a/lib/compass/sass_extensions/sprites/base.rb
+++ b/lib/compass/sass_extensions/sprites/base.rb
@@ -8,7 +8,6 @@ module Compass
         # the path is relative to the <tt>images_path</tt> confguration option
         def self.from_uri(uri, context, kwargs)
           sprite_map = ::Compass::SpriteMap.new(uri.value, {})
-
           sprites = sprite_map.files.map do |sprite|
             sprite.gsub(Compass.configuration.images_path+"/", "")
           end
@@ -24,18 +23,22 @@ module Compass
         # We should do so only when the packing algorithm changes
         SPRITE_VERSION = "1"
 
-        attr_accessor :image_names, :path, :name, :options, :map
+        attr_accessor :image_names, :path, :name, :map, :kwargs
         attr_accessor :images, :width, :height
 
 
-        def initialize(image_names, map, context, options)
+        def initialize(sprites, sprite_map, context, kwargs)
           require_engine!
-          @image_names, @path, @name, @options = image_names, map.path, map.name, options
+          @image_names = sprites
+          @path = sprite_map.path
+          @name = sprite_map.name
+          @kwargs = kwargs
+          @kwargs['cleanup'] ||= Sass::Script::Bool.new(true)
           @images = nil
           @width = nil
           @height = nil
           @evaluation_context = context
-          @map = map
+          @map = sprite_map
           validate!
           compute_image_metadata!
         end
@@ -58,7 +61,7 @@ module Compass
         # Creates the Sprite::Image objects for each image and calculates the width
         def init_images
           @images = image_names.collect do |relative_file|
-            image = Compass::SassExtensions::Sprites::Image.new(self, relative_file, options)
+            image = Compass::SassExtensions::Sprites::Image.new(self, relative_file, kwargs)
             @width = [ @width, image.width + image.offset ].max
             image
           end
@@ -118,12 +121,21 @@ module Compass
         # Generate a sprite image if necessary
         def generate
           if generation_required?
+            if kwargs.get_var('cleanup').value
+              cleanup_old_sprites
+            end
             sprite_data = construct_sprite
             save!(sprite_data)
             Compass.configuration.run_callback(:sprite_generated, sprite_data)
           end
         end
         
+        def cleanup_old_sprites
+          Dir[File.join(Compass.configuration.images_path, "#{path}-*.png")].each do |file|
+            FileUtils.rm file
+          end
+        end
+        
         # Does this sprite need to be generated
         def generation_required?
           !File.exists?(filename) || outdated?
@@ -174,7 +186,7 @@ module Compass
           to_s
         end
 
-        def to_s(options = self.options)
+        def to_s(kwargs = self.kwargs)
           sprite_url(self).value
         end
 
diff --git a/lib/compass/sass_extensions/sprites/sprite_map.rb b/lib/compass/sass_extensions/sprites/sprite_map.rb
index f2106739..121c4e12 100644
--- a/lib/compass/sass_extensions/sprites/sprite_map.rb
+++ b/lib/compass/sass_extensions/sprites/sprite_map.rb
@@ -50,7 +50,18 @@ module Compass
     end
     
     def ensure_path_and_name!
-      @path, @name = Compass::Sprites.path_and_name(uri)
+      @path ||= get_path
+      @name ||= get_name
+    end  
+    
+    def get_name
+      _, name = Compass::Sprites.path_and_name(uri)
+      name
+    end
+    
+    def get_path
+      path, _ = Compass::Sprites.path_and_name(uri)
+      path
     end
     
     def key(uri, options)
@@ -74,8 +85,9 @@ $#{name}-position: 0% !default;
 $#{name}-spacing: 0 !default;
 $#{name}-repeat: no-repeat !default;
 $#{name}-prefix: '' !default;
+$#{name}-clean-up: true !default;
 
-#{skip_overrides ? "$#{name}-sprites: sprite-map(\"#{uri}\");" : generate_overrides }
+#{skip_overrides ? "$#{name}-sprites: sprite-map(\"#{uri}\", $cleanup: $#{name}-clean-up);" : generate_overrides }
 
 // All sprites should extend this class
 // The #{name}-sprite mixin will do so for you.
@@ -129,7 +141,7 @@ $#{name}-#{sprite_name}-repeat: $#{name}-repeat !default;
         SCSS
       end.join
 
-      content += "\n$#{name}-sprites: sprite-map(\"#{uri}\",\n"
+      content += "\n$#{name}-sprites: sprite-map(\"#{uri}\", \n$cleanup: $#{name}-clean-up,\n"
       content += sprite_names.map do |sprite_name| 
 %Q{  $#{sprite_name}-position: $#{name}-#{sprite_name}-position,
   $#{sprite_name}-spacing: $#{name}-#{sprite_name}-spacing,
diff --git a/lib/compass/sass_extensions/sprites/sprites.rb b/lib/compass/sass_extensions/sprites/sprites.rb
index c0c5dc21..7431983f 100644
--- a/lib/compass/sass_extensions/sprites/sprites.rb
+++ b/lib/compass/sass_extensions/sprites/sprites.rb
@@ -3,11 +3,11 @@ module Compass
     attr_accessor :name, :path
     
     def self.path_and_name(uri)
-      if uri =~ %r{((.+/)?(.+))/(.+?)\.png}
-        [$1, $3, $4]
+      if uri =~ %r{((.+/)?([^\*.]+))/(.+?)\.png}
+        [$1, $3]
       end
     end
-
+    
     def self.discover_sprites(uri)
       self.load_map(uri, {}).files
     end
diff --git a/test/fixtures/sprites/public/images/colors/blue.png b/test/fixtures/sprites/public/images/colors/blue.png
new file mode 100644
index 00000000..c0ae53cc
Binary files /dev/null and b/test/fixtures/sprites/public/images/colors/blue.png differ
diff --git a/test/fixtures/sprites/public/images/colors/yellow.png b/test/fixtures/sprites/public/images/colors/yellow.png
new file mode 100644
index 00000000..c0ae53cc
Binary files /dev/null and b/test/fixtures/sprites/public/images/colors/yellow.png differ
diff --git a/test/compass_test.rb b/test/integrations/compass_test.rb
similarity index 100%
rename from test/compass_test.rb
rename to test/integrations/compass_test.rb
diff --git a/test/rails_integration_test.rb b/test/integrations/rails_integration_test.rb
similarity index 100%
rename from test/rails_integration_test.rb
rename to test/integrations/rails_integration_test.rb
diff --git a/test/sprites_test.rb b/test/integrations/sprites_test.rb
similarity index 88%
rename from test/sprites_test.rb
rename to test/integrations/sprites_test.rb
index 8e6f4173..23a45996 100644
--- a/test/sprites_test.rb
+++ b/test/integrations/sprites_test.rb
@@ -9,8 +9,8 @@ class SpritesTest < Test::Unit::TestCase
   
   def setup
     Compass.reset_configuration!
-    @images_src_path = File.join(File.dirname(__FILE__), 'fixtures', 'sprites', 'public', 'images')
-    @images_tmp_path = File.join(File.dirname(__FILE__), 'fixtures', 'sprites', 'public', 'images-tmp')
+    @images_src_path = File.join(File.dirname(__FILE__), '..', 'fixtures', 'sprites', 'public', 'images')
+    @images_tmp_path = File.join(File.dirname(__FILE__), '..', 'fixtures', 'sprites', 'public', 'images-tmp')
     ::FileUtils.cp_r @images_src_path, @images_tmp_path
     file = StringIO.new("images_path = #{@images_tmp_path.inspect}\n")
     Compass.add_configuration(file, "sprite_config")
@@ -24,7 +24,11 @@ class SpritesTest < Test::Unit::TestCase
 
 
   def map_location(file)
-    Dir.glob(File.join(@images_tmp_path, file)).first
+    map_files(file).first
+  end
+  
+  def map_files(glob)
+    Dir.glob(File.join(@images_tmp_path, glob))
   end
 
   def image_size(file)
@@ -546,5 +550,58 @@ class SpritesTest < Test::Unit::TestCase
       }
     CSS
   end
+  
+  it "should generate a sprite and remove the old file" do
+    FileUtils.touch File.join(@images_tmp_path, "selectors-cc8834Fdd.png")
+    assert_equal 1, map_files('selectors-*.png').size
+    css = render <<-SCSS
+      @import "selectors/*.png";
+      a {
+        $disable-magic-sprite-selectors:true;
+        @include selectors-sprite(ten-by-ten)
+      }
+    SCSS
+    assert_equal 1, map_files('selectors-*.png').size, "File was not removed"
+  end
+  
+  it "should generate a sprite and NOT remove the old file" do
+    FileUtils.touch File.join(@images_tmp_path, "selectors-cc8834Ftest.png")
+    assert_equal 1, map_files('selectors-*.png').size
+    css = render <<-SCSS
+      $selectors-clean-up: false;
+      @import "selectors/*.png";
+      a {
+        $disable-magic-sprite-selectors:true;
+        @include selectors-sprite(ten-by-ten)
+      }
+    SCSS
+    assert_equal 2, map_files('selectors-*.png').size, "File was removed"
+  end
+  
+  it "should generate a sprite if the sprite is a colorname" do
+    css = render <<-SCSS
+      @import "colors/*.png";
+      a {
+        @include colors-sprite(blue);
+      }
+    SCSS
+    assert !css.empty?
+  end
+  
+  it "should generate a sprite from nested folders" do
+    css = render <<-SCSS
+      @import "nested/**/*.png";
+      @include all-nested-sprites;
+    SCSS
+    assert_correct css, <<-CSS
+      .nested-sprite, .nested-ten-by-ten {
+        background: url('/nested-55a8935544.png') no-repeat;
+      }
+      
+      .nested-ten-by-ten {
+        background-position: 0 0;
+      }
+    CSS
+  end
 
 end
\ No newline at end of file
diff --git a/test/test_rails_helper.rb b/test/integrations/test_rails_helper.rb
similarity index 100%
rename from test/test_rails_helper.rb
rename to test/integrations/test_rails_helper.rb
diff --git a/test/command_line_test.rb b/test/units/command_line_test.rb
similarity index 100%
rename from test/command_line_test.rb
rename to test/units/command_line_test.rb
diff --git a/test/compass_png_test.rb b/test/units/compass_png_test.rb
similarity index 97%
rename from test/compass_png_test.rb
rename to test/units/compass_png_test.rb
index b8fd70c8..2a71e198 100644
--- a/test/compass_png_test.rb
+++ b/test/units/compass_png_test.rb
@@ -1,7 +1,7 @@
 require 'test_helper'
 require 'fileutils'
 
-class CommandLineTest < Test::Unit::TestCase
+class CompassPngTest < Test::Unit::TestCase
   
   def test_class_crc_table  
     assert_equal 256, Compass::PNG::CRC_TABLE.length 
diff --git a/test/configuration_test.rb b/test/units/configuration_test.rb
similarity index 100%
rename from test/configuration_test.rb
rename to test/units/configuration_test.rb
diff --git a/test/sass_extensions_test.rb b/test/units/sass_extensions_test.rb
similarity index 100%
rename from test/sass_extensions_test.rb
rename to test/units/sass_extensions_test.rb
diff --git a/test/sprites/base_test.rb b/test/units/sprites/base_test.rb
similarity index 72%
rename from test/sprites/base_test.rb
rename to test/units/sprites/base_test.rb
index a5c0adef..e79a11c3 100644
--- a/test/sprites/base_test.rb
+++ b/test/units/sprites/base_test.rb
@@ -3,15 +3,20 @@ require 'test_helper'
 class SpritesBaseTest < Test::Unit::TestCase
   
   def setup
-    @images_src_path = File.join(File.dirname(__FILE__), '..', 'fixtures', 'sprites', 'public', 'images')
-    @images_tmp_path = File.join(File.dirname(__FILE__), '..', 'fixtures', 'sprites', 'public', 'images-tmp')
+    Hash.send(:include, Compass::SassExtensions::Functions::Sprites::VariableReader)
+    @images_src_path = File.join(File.dirname(__FILE__), '..', '..', 'fixtures', 'sprites', 'public', 'images')
+    @images_tmp_path = File.join(File.dirname(__FILE__), '..', '..', 'fixtures', 'sprites', 'public', 'images-tmp')
     FileUtils.cp_r @images_src_path, @images_tmp_path
     config = Compass::Configuration::Data.new('config')
     config.images_path = @images_tmp_path
     Compass.add_configuration(config)
     Compass.configure_sass_plugin!
-    options = Compass.sass_engine_options.extend Compass::SassExtensions::Functions::Sprites::VariableReader
-    @map = Compass::SpriteMap.new("selectors/*.png", options)
+    @options = {'cleanup' => Sass::Script::Bool.new(true)}
+    setup_map
+  end
+  
+  def setup_map
+    @map = Compass::SpriteMap.new("selectors/*.png", @options)
     @base = Compass::SassExtensions::Sprites::Base.new(@map.sprite_names.map{|n| "selectors/#{n}.png"}, @map, @map.sass_engine, @map.options)
   end
 
@@ -70,4 +75,16 @@ class SpritesBaseTest < Test::Unit::TestCase
     assert !@base.outdated?
   end
   
+  it "should remove old sprite when generating new" do
+    @base.generate
+    file = @base.filename
+    assert File.exists?(file), "Original file does not exist"
+    file_to_remove = File.join(@images_tmp_path, 'selectors', 'ten-by-ten.png')
+    FileUtils.rm file_to_remove
+    assert !File.exists?(file_to_remove), "Failed to remove sprite file"
+    setup_map
+    @base.generate
+    assert !File.exists?(file), "Sprite file did not get removed"
+  end
+  
 end
\ No newline at end of file
diff --git a/test/sprites/image_test.rb b/test/units/sprites/image_test.rb
similarity index 98%
rename from test/sprites/image_test.rb
rename to test/units/sprites/image_test.rb
index 93435ad8..01609932 100644
--- a/test/sprites/image_test.rb
+++ b/test/units/sprites/image_test.rb
@@ -5,7 +5,7 @@ class SpritesImageTest < Test::Unit::TestCase
 
 
   def setup
-    @images_src_path = File.join(File.dirname(__FILE__), '..', 'fixtures', 'sprites', 'public', 'images')
+    @images_src_path = File.join(File.dirname(__FILE__), '..', '..', 'fixtures', 'sprites', 'public', 'images')
     file = StringIO.new("images_path = #{@images_src_path.inspect}\n")
     Compass.add_configuration(file, "sprite_config")
     @repeat = 'no-repeat'