diff --git a/CHANGELOG b/CHANGELOG
index 5dfb673..66ab8ea 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,3 +1,7 @@
+* Performance optimizations for Event#findElement. Make Event#findElement's expression argument optional, in which case the extended target element is returned (same as Event#element). [Tobie Langel]
+
+* Ensure Event#fire always returns an extended event. [Tobie Langel]
+
 *1.6.0* (November 6, 2007)
 
 * Fix Class#addMethods for "toString" and "valueOf" methods in Internet Explorer.  Closes #9901.  [sam]
diff --git a/src/event.js b/src/event.js
index 63379cd..6265d51 100644
--- a/src/event.js
+++ b/src/event.js
@@ -65,7 +65,9 @@ Event.Methods = (function() {
 
     findElement: function(event, expression) {
       var element = Event.element(event);
-      return element.match(expression) ? element : element.up(expression);
+      if (!expression) return element;
+      var elements = [element].concat(element.ancestors());
+      return Selector.findElement(elements, expression, 0);
     },
 
     pointer: function(event) {
@@ -257,7 +259,7 @@ Object.extend(Event, (function() {
         element.fireEvent(event.eventType, event);
       }
 
-      return event;
+      return Event.extend(event);
     }
   };
 })());
diff --git a/test/unit/event.html b/test/unit/event.html
index 036f203..f8b0459 100644
--- a/test/unit/event.html
+++ b/test/unit/event.html
@@ -111,6 +111,9 @@
       assertEqual(event, observedEvent);
       assertEqual(Event.Methods.stop.methodize(), event.stop);
       span.stopObserving("test:somethingHappened", observer);
+      
+      event = span.fire("test:somethingHappenedButNoOneIsListening");
+      assertEqual(Event.Methods.stop.methodize(), event.stop);
     }},
     
     testEventObserversAreBoundToTheObservedElement: function() { with(this) {
@@ -222,6 +225,14 @@
       event = span.fire("test:somethingHappened");
       assert(event.stopped, "event.stopped should be true for an observer that calls stop");
       span.stopObserving("test:somethingHappened");
+    }},
+
+    testEventFindElement: function() { with(this) {
+      var span = $("span"), event;
+      event = span.fire("test:somethingHappened");
+      assertEqual(span, event.findElement());
+      assertEqual(span, event.findElement('span'));
+      assertEqual(null, event.findElement('div.does_not_exist'));
     }}