diff --git a/Gemfile b/Gemfile
index b736b0d..c663190 100644
--- a/Gemfile
+++ b/Gemfile
@@ -23,7 +23,7 @@ gem 'mocha'
 
 gem 'cucumber'
 
-gem 'jquery-rails', '~> 1.0.0'
+gem 'jquery-rails', '> 1.0'
 gem 'ejs'
 
 gem 'guard-jasmine-headless-webkit', :git => 'git://github.com/johnbintz/guard-jasmine-headless-webkit.git'
diff --git a/lib/jasmine/headless.rb b/lib/jasmine/headless.rb
index 0a60efa..97998d1 100644
--- a/lib/jasmine/headless.rb
+++ b/lib/jasmine/headless.rb
@@ -21,11 +21,6 @@ module Jasmine
     autoload :TemplateWriter, 'jasmine/headless/template_writer'
     
     autoload :FileChecker, 'jasmine/headless/file_checker'
-
-    autoload :CoffeeTemplate, 'jasmine/headless/coffee_template'
-    autoload :JSTemplate, 'jasmine/headless/js_template'
-    autoload :JSTTemplate, 'jasmine/headless/jst_template'
-    autoload :CSSTemplate, 'jasmine/headless/css_template'
     autoload :NilTemplate, 'jasmine/headless/nil_template'
 
     autoload :Report, 'jasmine/headless/report'
diff --git a/lib/jasmine/headless/coffee_script_cache.rb b/lib/jasmine/headless/coffee_script_cache.rb
deleted file mode 100644
index 5ae5efe..0000000
--- a/lib/jasmine/headless/coffee_script_cache.rb
+++ /dev/null
@@ -1,20 +0,0 @@
-require 'coffee_script'
-require 'digest/sha1'
-require 'fileutils'
-
-module Jasmine
-  module Headless
-    class CoffeeScriptCache < CacheableAction
-      class << self
-        def cache_type
-          "coffee_script"
-        end
-      end
-
-      def action
-        CoffeeScript.compile(File.read(file))
-      end
-    end
-  end
-end
-
diff --git a/lib/jasmine/headless/coffee_template.rb b/lib/jasmine/headless/coffee_template.rb
deleted file mode 100644
index cfaaec2..0000000
--- a/lib/jasmine/headless/coffee_template.rb
+++ /dev/null
@@ -1,36 +0,0 @@
-require 'tilt/template'
-require 'rainbow'
-
-module Jasmine::Headless
-  class CoffeeTemplate < Tilt::Template
-    include Jasmine::Headless::FileChecker
-    
-    self.default_mime_type = 'application/javascript'
-
-    def prepare ; end
-
-    def evaluate(scope, locals, &block)
-      if bad_format?(file)
-        alert_bad_format(file)
-        return ''
-      end
-      begin
-        cache = Jasmine::Headless::CoffeeScriptCache.new(file)
-        source = cache.handle
-        if cache.cached?
-          %{<script type="text/javascript" src="#{cache.cache_file}"></script>
-            <script type="text/javascript">window.CSTF['#{File.split(cache.cache_file).last}'] = '#{file}';</script>}
-        else
-          %{<script type="text/javascript">#{source}</script>}
-        end
-      rescue CoffeeScript::CompilationError => ne
-        puts "[%s] %s: %s" % [ 'coffeescript'.color(:red), file.color(:yellow), "#{ne.message}".color(:white) ]
-        raise ne
-      rescue StandardError => e
-        puts "[%s] Error in compiling file: %s" % [ 'coffeescript'.color(:red), file.color(:yellow) ]
-        raise e
-      end
-    end
-  end
-end
-
diff --git a/lib/jasmine/headless/css_template.rb b/lib/jasmine/headless/css_template.rb
deleted file mode 100644
index 7053772..0000000
--- a/lib/jasmine/headless/css_template.rb
+++ /dev/null
@@ -1,19 +0,0 @@
-require 'tilt/template'
-
-module Jasmine::Headless
-  class CSSTemplate < Tilt::Template
-    include Jasmine::Headless::FileChecker
-    self.default_mime_type = 'text/css'
-
-    def prepare ; end
-
-    def evaluate(scope, locals, &block)
-      if bad_format?(file)
-        alert_bad_format(file)
-        return ''
-      end
-      file ? %{<link rel="stylesheet" href="#{file}" type="text/css" />} : data
-    end
-  end
-end
-
diff --git a/lib/jasmine/headless/file_checker.rb b/lib/jasmine/headless/file_checker.rb
index 6795a5b..6011bc0 100644
--- a/lib/jasmine/headless/file_checker.rb
+++ b/lib/jasmine/headless/file_checker.rb
@@ -1,3 +1,5 @@
+require 'rainbow'
+
 module Jasmine::Headless::FileChecker
   def excluded_formats
     ::Jasmine::Headless::EXCLUDED_FORMATS
diff --git a/lib/jasmine/headless/files_list.rb b/lib/jasmine/headless/files_list.rb
index aad2d62..a390b17 100644
--- a/lib/jasmine/headless/files_list.rb
+++ b/lib/jasmine/headless/files_list.rb
@@ -39,6 +39,10 @@ module Jasmine::Headless
         @sprockets_environment = nil
       end
 
+      def sprockets_environment
+        @sprockets_environment ||= Sprockets::Environment.new
+      end
+
       def registered_engines
         @registered_engines ||= {}
       end
@@ -138,7 +142,7 @@ module Jasmine::Headless
     def sprockets_environment
       return @sprockets_environment if @sprockets_environment
 
-      @sprockets_environment = Sprockets::Environment.new
+      @sprockets_environment = self.class.sprockets_environment #|| Sprockets::Environment.new
       search_paths.each { |path| @sprockets_environment.append_path(path) }
 
       @sprockets_environment.unregister_postprocessor('application/javascript', Sprockets::SafetyColons)
@@ -149,11 +153,10 @@ module Jasmine::Headless
           register_engine ".#{extension}", Jasmine::Headless::NilTemplate
         end
 
-        register_engine '.coffee', Jasmine::Headless::CoffeeTemplate
-        register_engine '.js', Jasmine::Headless::JSTemplate
-        register_engine '.css', Jasmine::Headless::CSSTemplate
-        register_engine '.jst', Jasmine::Headless::JSTTemplate
       end
+       
+      @sprockets_environment.logger = Logger.new(STDOUT)
+      @sprockets_environment.logger.level = Logger::WARN
 
       @sprockets_environment
     end
@@ -207,7 +210,28 @@ module Jasmine::Headless
           alert_time = nil
         end
 
-        sprockets_environment.find_asset(file, :bundle => false).body
+        asset = sprockets_environment.find_asset(file, :bundle => false)
+        cache_file = File.join('.jhw-cache', 'code', asset.logical_path)
+        # Process & cache the asset only if needed 
+        unless File.exist?(cache_file) && (File.mtime(file) < File.mtime(cache_file))
+          FileUtils.mkdir_p File.dirname(cache_file)
+          asset.write_to(cache_file)
+        end
+
+        html = ''
+        case asset.content_type
+        when 'application/javascript'
+          html = %{<script type="text/javascript" src="#{File.expand_path(cache_file)}"></script>}
+          # NOTE: In future sprockets versions below could be simplified w/ asset.extensions.include?('.coffee')
+          if asset.pathname.basename.to_s.scan(/\.[^.]+/).include?('.coffee') 
+            html += %{\n<script type="text/javascript">window.CSTF['#{File.basename(cache_file)}'] = '#{file}';</script>}
+          end
+        when 'text/css'
+          html = %{<link rel="stylesheet" href="#{File.expand_path(cache_file)}" type="text/css" />}
+        else
+          html = asset.body
+        end
+        html
       end.compact.reject(&:empty?)
     end
 
@@ -270,7 +294,12 @@ module Jasmine::Headless
     end
 
     def add_path(path, type = nil)
-      asset = sprockets_environment.find_asset(path)
+      begin
+        asset = sprockets_environment.find_asset(path)
+      rescue => e
+        sprockets_environment.logger.error "#{e.message} (#{e.class})"
+        raise e
+      end
 
       @required_files << asset
 
@@ -326,6 +355,10 @@ end
 module Jasmine::Headless
   extend self
 
+  def sprockets_environment
+    Jasmine::Headless::FilesList.sprockets_environment
+  end
+
   def register_engine(file_extension, template_class)
     Jasmine::Headless::FilesList.register_engine(file_extension, template_class)
   end
diff --git a/lib/jasmine/headless/js_template.rb b/lib/jasmine/headless/js_template.rb
deleted file mode 100644
index 49eb5b6..0000000
--- a/lib/jasmine/headless/js_template.rb
+++ /dev/null
@@ -1,23 +0,0 @@
-require 'tilt/template'
-
-module Jasmine::Headless
-  class JSTemplate < Tilt::Template
-    include Jasmine::Headless::FileChecker
-    self.default_mime_type = 'application/javascript'
-
-    def prepare ; end
-
-    def evaluate(scope, locals, &block)
-      if bad_format?(file)
-        alert_bad_format(file)
-        return ''
-      end
-      if data[%r{^<script type="text/javascript"}]
-        data
-      else
-        file ? %{<script type="text/javascript" src="#{file}"></script>} : data
-      end
-    end
-  end
-end
-
diff --git a/lib/jasmine/headless/jst_template.rb b/lib/jasmine/headless/jst_template.rb
deleted file mode 100644
index b6d8f1c..0000000
--- a/lib/jasmine/headless/jst_template.rb
+++ /dev/null
@@ -1,15 +0,0 @@
-require 'sprockets/jst_processor'
-
-module Jasmine::Headless
-  class JSTTemplate < Sprockets::JstProcessor
-    include Jasmine::Headless::FileChecker
-    def evaluate(*args)
-      if bad_format?(file)
-        alert_bad_format(file)
-        return ''
-      end
-      %{<script type="text/javascript">#{super}</script>}
-    end
-  end
-end
-
diff --git a/spec/lib/jasmine/headless/coffee_script_cache_spec.rb b/spec/lib/jasmine/headless/coffee_script_cache_spec.rb
deleted file mode 100644
index 9952270..0000000
--- a/spec/lib/jasmine/headless/coffee_script_cache_spec.rb
+++ /dev/null
@@ -1,21 +0,0 @@
-require 'spec_helper'
-
-describe Jasmine::Headless::CoffeeScriptCache do
-  include FakeFS::SpecHelpers
-
-  describe '#action' do
-    let(:file) { 'file' }
-    let(:data) { 'data' }
-    let(:compiled) { 'compiled' }
-
-    before do
-      CoffeeScript.expects(:compile).with(data).returns(compiled)
-      File.open(file, 'wb') { |fh| fh.print(data) }
-    end
-
-    it 'should compile coffeescript' do
-      described_class.new(file).action.should == compiled
-    end
-  end
-end
-
diff --git a/spec/lib/jasmine/headless/coffee_template_spec.rb b/spec/lib/jasmine/headless/coffee_template_spec.rb
deleted file mode 100644
index f07e769..0000000
--- a/spec/lib/jasmine/headless/coffee_template_spec.rb
+++ /dev/null
@@ -1,55 +0,0 @@
-require 'spec_helper'
-
-describe Jasmine::Headless::CoffeeTemplate do
-  let(:data) { 'data' }
-  let(:path) { 'path.coffee' }
-
-  let(:template) { described_class.new(path) { data } }
-
-  subject { template.render }
-
-  let(:handle_expectation) { Jasmine::Headless::CoffeeScriptCache.any_instance.stubs(:handle) }
-
-  context 'compilation error' do
-    let(:error) { CoffeeScript::CompilationError.new("fail") }
-
-    before do
-      handle_expectation.raises(error)
-    end
-
-    it 'should pass along the error' do
-      expect { subject }.to raise_error(CoffeeScript::CompilationError)
-    end
-  end
-
-  context 'compiles fine' do
-    let(:source) { 'source' }
-
-    before do
-      Jasmine::Headless::CoffeeScriptCache.any_instance.stubs(:cached?).returns(cache_return)
-      handle_expectation.returns(source)
-    end
-
-    context 'cached' do
-      let(:file_path) { 'dir/file.js' }
-      let(:cache_return) { true }
-
-      before do
-        Jasmine::Headless::CoffeeScriptCache.any_instance.stubs(:cache_file).returns(file_path)
-      end
-
-      it 'should return the cached file' do
-        subject.should include(%{<script type="text/javascript" src="#{file_path}"></script>})
-      end
-    end
-
-    context 'not cached' do
-      let(:cache_return) { false }
-
-      it 'should return the generated js' do
-        subject.should include(%{<script type="text/javascript">#{source}</script>})
-      end
-    end
-  end
-end
-
diff --git a/spec/lib/jasmine/headless/css_template_spec.rb b/spec/lib/jasmine/headless/css_template_spec.rb
deleted file mode 100644
index ca180e8..0000000
--- a/spec/lib/jasmine/headless/css_template_spec.rb
+++ /dev/null
@@ -1,25 +0,0 @@
-require 'spec_helper'
-
-describe Jasmine::Headless::CSSTemplate do
-  include FakeFS::SpecHelpers
-
-  let(:template) { described_class.new(file) { data } }
-  let(:file) { 'file' }
-  let(:data) { 'data' }
-
-  subject { template.render }
-
-  before do
-    File.open(file, 'wb') if file
-  end
-
-  context "no file'" do
-    let(:file) { nil }
-
-    it { should == data }
-  end
-
-  context 'file' do
-    it { should == %{<link rel="stylesheet" href="#{file}" type="text/css" />} }
-  end
-end
diff --git a/spec/lib/jasmine/headless/files_list_spec.rb b/spec/lib/jasmine/headless/files_list_spec.rb
index 542e8f8..d9ca10f 100644
--- a/spec/lib/jasmine/headless/files_list_spec.rb
+++ b/spec/lib/jasmine/headless/files_list_spec.rb
@@ -189,6 +189,20 @@ describe Jasmine::Headless::FilesList do
       end
 
     end
+
+    describe "#sprockets_environment" do
+
+      before(:each) do
+        Jasmine::Headless::FilesList.reset!
+      end
+
+      it "should return shared class-level sprockets environment that will be used when tests are run" do
+        processor = Object.new
+        described_class.sprockets_environment.register_postprocessor "application/javascript", processor
+        described_class.new.sprockets_environment.postprocessors["application/javascript"].should include(processor)
+      end
+
+    end
   end
 end
 
diff --git a/spec/lib/jasmine/headless/js_template_spec.rb b/spec/lib/jasmine/headless/js_template_spec.rb
deleted file mode 100644
index 3e07ca7..0000000
--- a/spec/lib/jasmine/headless/js_template_spec.rb
+++ /dev/null
@@ -1,31 +0,0 @@
-require 'spec_helper'
-
-describe Jasmine::Headless::JSTemplate do
-  include FakeFS::SpecHelpers
-
-  let(:template) { described_class.new(file) { data } }
-  let(:file) { 'file' }
-  let(:data) { 'data' }
-
-  subject { template.render }
-
-  before do
-    File.open(file, 'wb') if file
-  end
-
-  context "no file'" do
-    let(:file) { nil }
-
-    it { should == data }
-  end
-
-  context 'file' do
-    it { should == %{<script type="text/javascript" src="#{file}"></script>} }
-  end
-
-  context 'script as first thing' do
-    let(:data) { '<script type="text/javascript"' }
-
-    it { should == data }
-  end
-end
diff --git a/spec/lib/jasmine/headless/jst_template_spec.rb b/spec/lib/jasmine/headless/jst_template_spec.rb
deleted file mode 100644
index 943a7e8..0000000
--- a/spec/lib/jasmine/headless/jst_template_spec.rb
+++ /dev/null
@@ -1,21 +0,0 @@
-require 'spec_helper'
-
-describe Jasmine::Headless::JSTTemplate do
-  include FakeFS::SpecHelpers
-
-  let(:template) { described_class.new(file) }
-  let(:file) { 'file' }
-  let(:data) { 'data' }
-
-  let(:context) { stub(:logical_path => 'path') }
-
-  before do
-    File.open(file, 'wb') { |fh| fh.print data }
-  end
-
-  subject { template.render(context) }
-
-  it { should include(%{<script type="text/javascript">}) }
-  it { should include(data) }
-end
-