diff --git a/java/java-impl/src/com/intellij/codeInspection/dataFlow/ControlFlowAnalyzer.java b/java/java-impl/src/com/intellij/codeInspection/dataFlow/ControlFlowAnalyzer.java
index 9e6ea841a280..deeed49144b2 100644
--- a/java/java-impl/src/com/intellij/codeInspection/dataFlow/ControlFlowAnalyzer.java
+++ b/java/java-impl/src/com/intellij/codeInspection/dataFlow/ControlFlowAnalyzer.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2012 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -754,8 +754,13 @@ class ControlFlowAnalyzer extends JavaElementVisitor {
 
   @Override public void visitTryStatement(PsiTryStatement statement) {
     startElement(statement);
-    PsiCodeBlock finallyBlock = statement.getFinallyBlock();
 
+    PsiResourceList resourceList = statement.getResourceList();
+    if (resourceList != null) {
+      resourceList.accept(this);
+    }
+
+    PsiCodeBlock finallyBlock = statement.getFinallyBlock();
     if (finallyBlock != null) {
       myCatchStack.push(new CatchDescriptor(finallyBlock));
     }
@@ -817,6 +822,21 @@ class ControlFlowAnalyzer extends JavaElementVisitor {
     if (catchBlock != null) catchBlock.accept(this);
   }
 
+  @Override
+  public void visitResourceList(PsiResourceList resourceList) {
+    startElement(resourceList);
+
+    List<PsiResourceVariable> variables = resourceList.getResourceVariables();
+    for (PsiResourceVariable variable : variables) {
+      PsiExpression initializer = variable.getInitializer();
+      if (initializer != null) {
+        initializeVariable(variable, initializer);
+      }
+    }
+
+    finishElement(resourceList);
+  }
+
   @Override public void visitWhileStatement(PsiWhileStatement statement) {
     startElement(statement);
 
diff --git a/java/java-psi-api/src/com/intellij/psi/LambdaUtil.java b/java/java-psi-api/src/com/intellij/psi/LambdaUtil.java
index 5b31aa91021b..27ed039a7b16 100644
--- a/java/java-psi-api/src/com/intellij/psi/LambdaUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/LambdaUtil.java
@@ -589,7 +589,10 @@ public class LambdaUtil {
         methodReferenceExpression.process(classRef, substRef);
 
         final MethodSignature signature1 = method.getSignature(resolveResult.getSubstitutor());
-        final MethodSignature signature2 = ((PsiMethod)resolve).getSignature(substRef.get());
+        PsiSubstitutor subst = PsiSubstitutor.EMPTY;
+        subst = subst.putAll(result.getSubstitutor());
+        subst = subst.putAll(substRef.get());
+        final MethodSignature signature2 = ((PsiMethod)resolve).getSignature(subst);
         if (areAcceptable(signature1, signature2, classRef.get(), substRef.get(), ((PsiMethod)resolve).isVarArgs())) return true;
       }
     }
@@ -636,7 +639,7 @@ public class LambdaUtil {
     for (int i = 0; i < min; i++) {
       final PsiType type1 = signatureParameterTypes1[offset + i];
       final PsiType type2 = isVarargs && i == min - 1 ? ((PsiArrayType)signatureParameterTypes2[i]).getComponentType() : signatureParameterTypes2[i];
-      if (!GenericsUtil.eliminateWildcards(psiSubstitutor.substitute(type1)).equals(GenericsUtil.eliminateWildcards(type2))) {
+      if (!TypeConversionUtil.isAssignable(type2, psiSubstitutor.substitute(GenericsUtil.eliminateWildcards(type1)))) {
         return false;
       }
     }
diff --git a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
index 59e4665b235f..cf321a385570 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
@@ -797,6 +797,21 @@ public class TypeConversionUtil {
   }
 
   public static boolean boxingConversionApplicable(final PsiType left, final PsiType right) {
+    if (right instanceof PsiMethodReferenceType) {
+      final JavaResolveResult result = ((PsiMethodReferenceType)right).getExpression().advancedResolve(false);
+      PsiElement element = result.getElement();
+      final PsiClassType.ClassResolveResult functionalInterfaceResult = PsiUtil.resolveGenericsClassInType(left);
+      final PsiMethod interfaceMethod = LambdaUtil.getFunctionalInterfaceMethod(functionalInterfaceResult);
+      if (element instanceof PsiMethod && interfaceMethod != null) {
+        final PsiType[] parameterTypes = ((PsiMethod)element).getSignature(result.getSubstitutor()).getParameterTypes();
+        final PsiType[] argTypes = interfaceMethod.getSignature(functionalInterfaceResult.getSubstitutor()).getParameterTypes();
+        if (parameterTypes.length != argTypes.length) return false;
+        for (int i = 0; i < parameterTypes.length; i++) {
+          if (boxingConversionApplicable(parameterTypes[i], argTypes[i])) return true;
+        }
+      }
+    }
+
     if (left instanceof PsiPrimitiveType && !PsiType.NULL.equals(left)) {
       return right instanceof PsiClassType && isAssignable(left, right);
     }
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiMethodReferenceExpressionImpl.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiMethodReferenceExpressionImpl.java
index 78f8598de730..c18de0281b8b 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiMethodReferenceExpressionImpl.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/tree/java/PsiMethodReferenceExpressionImpl.java
@@ -21,6 +21,7 @@ import com.intellij.openapi.util.Ref;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.psi.*;
 import com.intellij.psi.impl.PsiManagerEx;
+import com.intellij.psi.impl.source.resolve.ParameterTypeInferencePolicy;
 import com.intellij.psi.impl.source.resolve.ResolveCache;
 import com.intellij.psi.impl.source.tree.ChildRole;
 import com.intellij.psi.impl.source.tree.JavaElementType;
@@ -30,6 +31,7 @@ import com.intellij.psi.scope.ElementClassFilter;
 import com.intellij.psi.scope.JavaScopeProcessorEvent;
 import com.intellij.psi.scope.PsiConflictResolver;
 import com.intellij.psi.scope.PsiScopeProcessor;
+import com.intellij.psi.scope.conflictResolvers.JavaMethodsConflictResolver;
 import com.intellij.psi.scope.processor.FilterScopeProcessor;
 import com.intellij.psi.scope.processor.MethodCandidatesProcessor;
 import com.intellij.psi.scope.util.PsiScopesUtil;
@@ -37,6 +39,7 @@ import com.intellij.psi.tree.IElementType;
 import com.intellij.psi.util.MethodSignature;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.PsiUtil;
+import com.intellij.psi.util.TypeConversionUtil;
 import com.intellij.util.SmartList;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -220,7 +223,7 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
     public ResolveResult[] resolve(@NotNull PsiJavaReference reference, boolean incompleteCode) {
       final Ref<PsiClass> classRef = new Ref<PsiClass>();
       final Ref<PsiSubstitutor> substRef = new Ref<PsiSubstitutor>();
-      boolean checkStatic = process(classRef, substRef);
+      final boolean beginsWithReferenceType = process(classRef, substRef);
 
       final PsiClass containingClass = classRef.get();
       final PsiSubstitutor substitutor = substRef.get();
@@ -242,15 +245,59 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
           final PsiClassType.ClassResolveResult resolveResult = PsiUtil.resolveGenericsClassInType(functionalInterfaceType);
           final PsiMethod interfaceMethod = LambdaUtil.getFunctionalInterfaceMethod(resolveResult);
           final MethodSignature signature = interfaceMethod != null ? interfaceMethod.getSignature(resolveResult.getSubstitutor()) : null;
-          final MethodReferenceConflictResolver conflictResolver = new MethodReferenceConflictResolver(containingClass, substitutor,
-                                                                                                       signature);
-          final MethodCandidatesProcessor processor = new MethodCandidatesProcessor(PsiMethodReferenceExpressionImpl.this,
-                                                                                    new PsiConflictResolver[]{conflictResolver},
-                                                                                    new SmartList<CandidateInfo>());
+          final MethodReferenceConflictResolver conflictResolver =
+            new MethodReferenceConflictResolver(containingClass, substitutor, signature, beginsWithReferenceType);
+          final PsiConflictResolver[] resolvers;
+          if (signature != null) {
+            final PsiType[] parameterTypes = signature.getParameterTypes();
+            resolvers = new PsiConflictResolver[]{conflictResolver,
+              new JavaMethodsConflictResolver(PsiMethodReferenceExpressionImpl.this, parameterTypes) {
+                @Override
+                public CandidateInfo resolveConflict(List<CandidateInfo> conflicts) {
+                  boolean varargs = false;
+                  for (CandidateInfo conflict : conflicts) {
+                    final PsiElement psiElement = conflict.getElement();
+                    if (psiElement instanceof PsiMethod && ((PsiMethod)psiElement).isVarArgs()) {
+                      varargs = true;
+                      break;
+                    }
+                  }
+                  checkSpecifics(conflicts, varargs ? MethodCandidateInfo.ApplicabilityLevel.VARARGS : MethodCandidateInfo.ApplicabilityLevel.FIXED_ARITY);
+                  return conflicts.size() == 1 ? conflicts.get(0) : null; 
+                }
+              }};
+          }
+          else {
+            resolvers = new PsiConflictResolver[]{conflictResolver};
+          }
+          final MethodCandidatesProcessor processor =
+            new MethodCandidatesProcessor(PsiMethodReferenceExpressionImpl.this, resolvers, new SmartList<CandidateInfo>()) {
+              @Override
+              protected MethodCandidateInfo createCandidateInfo(final PsiMethod method,
+                                                                PsiSubstitutor substitutor,
+                                                                boolean staticProblem,
+                                                                boolean accessible) {
+                final PsiExpressionList argumentList = getArgumentList();
+                return new MethodCandidateInfo(method, substitutor, !accessible, staticProblem, argumentList, myCurrentFileContext,
+                                               argumentList != null ? argumentList.getExpressionTypes() : null, getTypeArguments(),
+                                               getLanguageLevel()) {
+                  @Override
+                  public PsiSubstitutor inferTypeArguments(ParameterTypeInferencePolicy policy) {
+                    if (signature == null) return PsiSubstitutor.EMPTY;
+                    final PsiType[] types = method.getSignature(PsiSubstitutor.EMPTY).getParameterTypes();
+                    final PsiType[] rightTypes = signature.getParameterTypes();
+                    if (types.length != rightTypes.length) return PsiSubstitutor.EMPTY;
+                    return JavaPsiFacade.getInstance(getProject()).getResolveHelper()
+                      .inferTypeArguments(method.getTypeParameters(), types, rightTypes,
+                                          PsiUtil.getLanguageLevel(PsiMethodReferenceExpressionImpl.this));
+                  }
+                };
+              }
+          };
           processor.setIsConstructor(isConstructor);
           processor.setName(isConstructor ? containingClass.getName() : element.getText());
 
-          if (checkStatic) {
+          if (beginsWithReferenceType) {
             if (containingClass.getContainingClass() == null || !containingClass.hasModifierProperty(PsiModifier.STATIC)) {
               PsiClass aClass = null;
               if (PsiTreeUtil.isAncestor(containingClass, PsiMethodReferenceExpressionImpl.this, false)) {
@@ -275,13 +322,15 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
       private final PsiClass myContainingClass;
       private final PsiSubstitutor mySubstitutor;
       private final MethodSignature mySignature;
+      private final boolean myBeginsWithReferenceType;
 
       private MethodReferenceConflictResolver(PsiClass containingClass,
                                               PsiSubstitutor psiSubstitutor,
-                                              @Nullable MethodSignature signature) {
+                                              @Nullable MethodSignature signature, boolean beginsWithReferenceType) {
         myContainingClass = containingClass;
         mySubstitutor = psiSubstitutor;
         mySignature = signature;
+        myBeginsWithReferenceType = beginsWithReferenceType;
       }
 
       @Nullable
@@ -293,7 +342,8 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
         final PsiType[] parameterTypes = mySignature.getParameterTypes();
         if (parameterTypes.length > 0) {
           final PsiClassType.ClassResolveResult classResolveResult = PsiUtil.resolveGenericsClassInType(parameterTypes[0]);
-          if (LambdaUtil.isReceiverType(parameterTypes[0], myContainingClass) && classResolveResult.getSubstitutor().equals(mySubstitutor)) {
+          if (LambdaUtil.isReceiverType(parameterTypes[0], myContainingClass) && 
+              ((parameterTypes[0] instanceof PsiClassType && ((PsiClassType)parameterTypes[0]).isRaw()) || classResolveResult.getSubstitutor().equals(mySubstitutor))) {
             hasReceiver = true;
           }
         }
@@ -305,33 +355,35 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
           final PsiMethod psiMethod = ((MethodCandidateInfo)conflict).getElement();
           if (psiMethod == null) continue;
           PsiSubstitutor subst = PsiSubstitutor.EMPTY;
+          subst = subst.putAll(conflict.getSubstitutor());
           subst = subst.putAll(mySubstitutor);
           final PsiType[] signatureParameterTypes2 = psiMethod.getSignature(subst).getParameterTypes();
 
           final boolean varArgs = psiMethod.isVarArgs();
-          final boolean isStatic = psiMethod.hasModifierProperty(PsiModifier.STATIC);
-          
+          final boolean validConstructorRef = psiMethod.isConstructor() && (myContainingClass.getContainingClass() == null || myContainingClass.hasModifierProperty(PsiModifier.STATIC));
+          final boolean staticOrValidConstructorRef = psiMethod.hasModifierProperty(PsiModifier.STATIC) || validConstructorRef;
+
           if ((parameterTypes.length == signatureParameterTypes2.length || varArgs && parameterTypes.length >= signatureParameterTypes2.length) && 
-              (isStatic || (psiMethod.isConstructor() && (conflict.isStaticsScopeCorrect() || myContainingClass.getContainingClass() == null) && !hasReceiver))) {
+              (!myBeginsWithReferenceType || staticOrValidConstructorRef)) {
             boolean correct = true;
             for (int i = 0; i < parameterTypes.length; i++) {
               final PsiType type1 = parameterTypes[i];
               final PsiType type2 = varArgs && i >= signatureParameterTypes2.length - 1 ?
                                     ((PsiArrayType)signatureParameterTypes2[signatureParameterTypes2.length -1]).getComponentType() :
                                     signatureParameterTypes2[i];
-              correct &= GenericsUtil.eliminateWildcards(subst.substitute(type1)).equals(GenericsUtil.eliminateWildcards(type2));
+              correct &= TypeConversionUtil.isAssignable(type2, subst.substitute(GenericsUtil.eliminateWildcards(type1)));
             }
             if (correct) {
               firstCandidates.add(conflict);
             }
           }
 
-          if (hasReceiver && parameterTypes.length == signatureParameterTypes2.length + 1 && !isStatic && (!psiMethod.isConstructor() || myContainingClass.getContainingClass() != null)) {
+          if (hasReceiver && parameterTypes.length == signatureParameterTypes2.length + 1 && !staticOrValidConstructorRef) {
             boolean correct = true;
             for (int i = 0; i < signatureParameterTypes2.length; i++) {
               final PsiType type1 = parameterTypes[i + 1];
               final PsiType type2 = signatureParameterTypes2[i];
-              correct &= GenericsUtil.eliminateWildcards(subst.substitute(type1)).equals(GenericsUtil.eliminateWildcards(type2));
+              correct &= TypeConversionUtil.isAssignable(type2, subst.substitute(GenericsUtil.eliminateWildcards(type1)));
             }
             if (correct) {
               secondCandidates.add(conflict);
@@ -339,7 +391,15 @@ public class PsiMethodReferenceExpressionImpl extends PsiReferenceExpressionBase
           }
         }
 
-        if (secondCandidates.size() + firstCandidates.size() != 1) return null;
+        final int acceptedCount = secondCandidates.size() + firstCandidates.size();
+        if (acceptedCount != 1) {
+          if (acceptedCount == 0) {
+            conflicts.clear();
+          }
+          firstCandidates.addAll(secondCandidates);
+          conflicts.retainAll(firstCandidates);
+          return null;
+        }
         return !firstCandidates.isEmpty() ? firstCandidates.get(0) : secondCandidates.get(0);
       }
     }
diff --git a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
index a72cfe5027b7..2c93a6e8945b 100644
--- a/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
+++ b/java/java-psi-impl/src/com/intellij/psi/scope/conflictResolvers/JavaMethodsConflictResolver.java
@@ -128,7 +128,7 @@ public class JavaMethodsConflictResolver implements PsiConflictResolver{
     }
   }
 
-  private void checkSpecifics(List<CandidateInfo> conflicts, @MethodCandidateInfo.ApplicabilityLevelConstant int applicabilityLevel) {
+  public void checkSpecifics(List<CandidateInfo> conflicts, @MethodCandidateInfo.ApplicabilityLevelConstant int applicabilityLevel) {
     final boolean applicable = applicabilityLevel > MethodCandidateInfo.ApplicabilityLevel.NOT_APPLICABLE;
 
     int conflictsCount = conflicts.size();
@@ -450,7 +450,8 @@ public class JavaMethodsConflictResolver implements PsiConflictResolver{
       PsiType type1 = params1[Math.min(i, params1.length - 1)].getType();
       PsiType type2 = params2[Math.min(i, params2.length - 1)].getType();
       if (applicabilityLevel == MethodCandidateInfo.ApplicabilityLevel.VARARGS) {
-        if (type1 instanceof PsiEllipsisType && type2 instanceof PsiEllipsisType) {
+        if (type1 instanceof PsiEllipsisType && type2 instanceof PsiEllipsisType && 
+            (((PsiArrayType)type1).getComponentType().equalsToText(CommonClassNames.JAVA_LANG_OBJECT) || ((PsiArrayType)type2).getComponentType().equalsToText(CommonClassNames.JAVA_LANG_OBJECT))) {
           type1 = ((PsiEllipsisType)type1).toArrayType();
           type2 = ((PsiEllipsisType)type2).toArrayType();
         }
diff --git a/java/java-tests/testData/codeInsight/completion/normalSorting/PreselectLastChosen.java b/java/java-tests/testData/codeInsight/completion/normalSorting/PreselectLastChosen.java
new file mode 100644
index 000000000000..1ba055805277
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/completion/normalSorting/PreselectLastChosen.java
@@ -0,0 +1,7 @@
+import java.util.Set;
+
+public class Foo {
+  void foo(Set<String> set) {
+    set.ad<caret>x
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/TryWithResourcesWarn.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/TryWithResourcesWarn.java
index c2adf2667a93..796de41f705c 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/TryWithResourcesWarn.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/TryWithResourcesWarn.java
@@ -1,5 +1,3 @@
-import java.lang.Exception;
-
 class C {
   static class MyResource implements AutoCloseable {
     @Override public void close() { }
@@ -25,4 +23,21 @@ class C {
       System.out.println(r);
     }
   }
+
+  interface MyResourceProvider {
+    MyResource getResource();
+  }
+
+  void m3() throws Exception {
+    MyResourceProvider provider = null;
+    try (MyResource r = <warning descr="Method invocation 'provider.getResource()' may produce 'java.lang.NullPointerException'">provider.getResource()</warning>) {
+      System.out.println(r);
+    }
+  }
+
+  void m4() {
+    try (MyResource r = null) {
+      System.out.println(r);
+    }
+  }
 }
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ambiguousVarargs/pck/AmbiguousMethodCall.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ambiguousVarargs/pck/AmbiguousMethodCall.java
index 3ced31214dcf..d1b120225a79 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ambiguousVarargs/pck/AmbiguousMethodCall.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ambiguousVarargs/pck/AmbiguousMethodCall.java
@@ -21,4 +21,12 @@ abstract class A {
     {
         foo<error descr="Ambiguous method call: both 'A.foo(Object...)' and 'A.foo(int...)' match">(1)</error>;
     }
-}
\ No newline at end of file
+}
+abstract class A1 {
+    abstract void foo(double ... x);
+    abstract void foo(int... x);
+
+    {
+        foo(1);
+    }
+}
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
index fb13de303bae..127e57db4ef7 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/ConstructorRefsInnerClasses.java
@@ -73,4 +73,46 @@ class StaticInner1 {
     static {
       call3<error descr="Ambiguous method call: both 'StaticInner1.call3(I1)' and 'StaticInner1.call3(I2)' match">(StaticInner1.Inner :: new)</error>;
     }
+}
+
+class StaticInner2 {
+
+  static class Inner {
+    Inner() {}
+  }
+
+
+  interface I1 {
+    Inner m(StaticInner2 rec);
+  }
+
+
+  static {
+     <error descr="Incompatible types. Found: '<method reference>', required: 'StaticInner2.I1'">I1 i1 = StaticInner2.Inner :: new;</error>
+  }
+
+  {
+     <error descr="Incompatible types. Found: '<method reference>', required: 'StaticInner2.I1'">I1 i1 = StaticInner2.Inner :: new;</error>
+  }
+}
+
+class NonStaticInner2 {
+
+  class Inner {
+    Inner() {}
+  }
+
+
+  interface I1 {
+    Inner m(NonStaticInner2 rec);
+  }
+
+
+  static {
+     I1 i1 = NonStaticInner2.Inner :: new;
+  }
+
+  {
+     I1 i1 = NonStaticInner2.Inner :: new;
+  }
 }
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodRefMisc1.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodRefMisc1.java
index a3434a67a5c9..ece7a65b2eea 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodRefMisc1.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodRefMisc1.java
@@ -54,7 +54,7 @@ class MyTest2 {
     static void call(Integer i, I s) {   }
 
     static void test() {
-        call<error descr="Cannot resolve method 'call(int, <method reference>)'">(1, MyTest2::m)</error>; //ambiguous
+        call<error descr="Ambiguous method call: both 'MyTest2.call(int, I)' and 'MyTest2.call(Integer, I)' match">(1, MyTest2::m)</error>; //ambiguous
     }
 }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodTypeParamsInference.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodTypeParamsInference.java
new file mode 100644
index 000000000000..d802dcbb33ab
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/MethodTypeParamsInference.java
@@ -0,0 +1,52 @@
+class MyTest {
+    interface I1 {
+       void m(String s);
+    }
+
+    interface I2 {
+       void m(Integer s);
+    }
+
+    interface I3 {
+       void m(Object o);
+    }
+
+    static <T extends Number> void m(T p) {}
+
+    static <T1> void m1(T1 fx) { }
+ 
+    static void foo(I1 i) {}
+    static void foo(I2 i) {} //m
+    static void foo(I3 i) {}
+
+    static {
+         foo(MyTest::m);
+         foo<error descr="Ambiguous method call: both 'MyTest.foo(I2)' and 'MyTest.foo(I3)' match">(MyTest::m1)</error>;
+    }
+}
+
+
+class MyTest1 {
+    interface I1 {
+       void m(Integer s);
+    }
+
+    interface I2 {
+       void m(Integer s);
+    }
+
+    static <T extends Number> void m(T p) { }
+    static <T> void m1(T p) { }
+ 
+    static void foo1(I1 i) { }
+    static void foo2(I1 i) { }
+    static void foo2(I2 i) { }
+
+    static {
+        foo1(MyTest1::m);
+        foo2<error descr="Ambiguous method call: both 'MyTest1.foo2(I1)' and 'MyTest1.foo2(I2)' match">(MyTest1::m)</error>;
+
+        foo1(MyTest1::m1);
+        foo2<error descr="Ambiguous method call: both 'MyTest1.foo2(I1)' and 'MyTest1.foo2(I2)' match">(MyTest1::m1)</error>;  
+    }
+}
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Varargs.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Varargs.java
index 9c8931dd9cc4..ece7ace9adff 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Varargs.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/methodRef/Varargs.java
@@ -1,6 +1,5 @@
-class MethodReference27 {
-
-    interface SAM {
+class MyTest1 {
+    interface I {
         void m(int i1, int i2);
     }
 
@@ -13,10 +12,63 @@ class MethodReference27 {
     static void m2(int... is) { }
     static void m2(double... ds) {}
 
+    static void m3(int... is) { }
+    static void m3(Object... ds) {}
+
     public static void main(String[] args) {
-        SAM s1 = MethodReference27::m1;
-        s1.m(42,42);
-        SAM s2 = MethodReference27 :: m2;
-        s2.m(42,42);
+        I i1 = MyTest1::m1;
+        i1.m(42,42);
+
+        I i2 = MyTest1 :: m2;
+        i2.m(42,42);
+
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest1.I'">I i3 = MyTest1 :: m3;</error>  
     }
 }
+
+class MyTest {
+
+    interface I1 {
+        void m(int i);
+    }
+
+    interface I2 {
+        void m(MyTest t, int i);
+    }
+
+    static void static_1(Integer i) {}
+    static void static_2(Integer i1, Integer i2) {}
+    static void static_3(String s) {}
+    static void static_4(String... ss) {}
+
+    void _1(Integer i) {}
+    void _2(Integer i1, Integer i2) {}
+    void _3(String s) {}
+    void _4(String... ss) {}
+
+    static {
+        I1 i1 = MyTest::static_1;
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i2 = MyTest::static_2;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i3 = MyTest::static_3;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i4 = MyTest::static_4;</error>
+    }
+
+
+    {
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i_1 = MyTest::_1;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i_2 = MyTest::_2;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i_3 = MyTest::_3;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i_4 = MyTest::_4;</error>
+
+        I1 i1 = this::_1;
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i2 = this::_2;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i3 = this::_3;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I1'">I1 i4 = this::_4;</error>
+
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I2'">I2 i21 = MyTest::m1;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I2'">I2 i22 = MyTest::m2;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I2'">I2 i23 = MyTest::m3;</error>
+        <error descr="Incompatible types. Found: '<method reference>', required: 'MyTest.I2'">I2 i24 = MyTest::m4;</error>
+    }
+}
+
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/completion/NormalCompletionOrderingTest.groovy b/java/java-tests/testSrc/com/intellij/codeInsight/completion/NormalCompletionOrderingTest.groovy
index 22e5a39ef44e..ed394a8e9cda 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/completion/NormalCompletionOrderingTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/completion/NormalCompletionOrderingTest.groovy
@@ -453,4 +453,14 @@ import java.lang.annotation.Target;
     assert lookup.items[1].object instanceof PsiMethod
   }
 
+  public void testPreselectLastChosen() {
+    checkPreferredItems(0, 'add', 'addAll')
+    for (i in 0..10) {
+      incUseCount(lookup, 1)
+    }
+    assertPreferredItems 1, 'add', 'addAll'
+    incUseCount(lookup, 0)
+    assertPreferredItems 0, 'add', 'addAll'
+  }
+
 }
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingJdk7Test.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingJdk7Test.java
index ae05e2cb85f5..350deee39287 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingJdk7Test.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LightAdvHighlightingJdk7Test.java
@@ -20,6 +20,7 @@ import com.intellij.codeInsight.daemon.impl.HighlightInfo;
 import com.intellij.codeInspection.InspectionProfileEntry;
 import com.intellij.codeInspection.LocalInspectionTool;
 import com.intellij.codeInspection.compiler.JavacQuirksInspection;
+import com.intellij.codeInspection.dataFlow.DataFlowInspection;
 import com.intellij.codeInspection.deadCode.UnusedDeclarationInspection;
 import com.intellij.codeInspection.defUse.DefUseInspection;
 import com.intellij.codeInspection.redundantCast.RedundantCastInspection;
@@ -146,7 +147,7 @@ public class LightAdvHighlightingJdk7Test extends LightDaemonAnalyzerTestCase {
   public void testNumericLiterals() throws Exception { doTest(false, false); }
   public void testMultiCatch() throws Exception { doTest(false, false); }
   public void testTryWithResources() throws Exception { doTest(false, false); }
-  public void testTryWithResourcesWarn() throws Exception { doTest(true, false, new DefUseInspection()); }
+  public void testTryWithResourcesWarn() throws Exception { doTest(true, false, new DefUseInspection(), new DataFlowInspection()); }
   public void testSafeVarargsApplicability() throws Exception { doTest(true, false); }
   public void testUncheckedGenericsArrayCreation() throws Exception { doTest(true, false); }
   public void testPreciseRethrow() throws Exception { doTest(false, false); }
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/MethodRefHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/MethodRefHighlightingTest.java
index d02eeb4e362a..afa6f4ac1ba5 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/MethodRefHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/MethodRefHighlightingTest.java
@@ -40,7 +40,11 @@ public class MethodRefHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testMethodRefMisc() throws Exception {
     doTest();
   }
-  
+
+  public void testMethodTypeParamsInference() throws Exception {
+    doTest();
+  }
+
   public void testMethodRefMisc1() throws Exception {
     doTest();
   }
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/completion/StatisticsWeigher.java b/platform/lang-impl/src/com/intellij/codeInsight/completion/StatisticsWeigher.java
index fe45af2e81e8..3958e67fb744 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/completion/StatisticsWeigher.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/completion/StatisticsWeigher.java
@@ -51,15 +51,17 @@ public class StatisticsWeigher extends CompletionWeigher {
 
     @Override
     public Integer weigh(@NotNull LookupElement item) {
-      final StatisticsInfo info = getBaseStatisticsInfo(item, myLocation);
-      if (info == StatisticsInfo.EMPTY) {
+      final StatisticsInfo baseInfo = getBaseStatisticsInfo(item, myLocation);
+      if (baseInfo == StatisticsInfo.EMPTY) {
         return 0;
       }
-      int max = 0;
-      for (StatisticsInfo statisticsInfo : composeStatsWithPrefix(info, myLocation.getCompletionParameters().getLookup().itemPattern(item))) {
-        max = Math.max(max, ourStatManager.getUseCount(statisticsInfo));
+      int maxUseCount = 0;
+      int minRecency = Integer.MAX_VALUE;
+      for (StatisticsInfo eachInfo : composeStatsWithPrefix(baseInfo, myLocation.getCompletionParameters().getLookup().itemPattern(item))) {
+        maxUseCount = Math.max(maxUseCount, ourStatManager.getUseCount(eachInfo));
+        minRecency = Math.min(minRecency, ourStatManager.getLastUseRecency(eachInfo));
       }
-      return max;
+      return minRecency == Integer.MAX_VALUE ? maxUseCount : 100 - minRecency;
     }
 
   }
diff --git a/platform/platform-api/src/com/intellij/psi/statistics/StatisticsManager.java b/platform/platform-api/src/com/intellij/psi/statistics/StatisticsManager.java
index ca0a203f6484..87361ef86aad 100644
--- a/platform/platform-api/src/com/intellij/psi/statistics/StatisticsManager.java
+++ b/platform/platform-api/src/com/intellij/psi/statistics/StatisticsManager.java
@@ -46,6 +46,7 @@ public abstract class StatisticsManager implements SettingsSavingComponent {
   }
 
   public abstract int getUseCount(@NotNull StatisticsInfo info);
+  public abstract int getLastUseRecency(@NotNull StatisticsInfo info);
   public abstract void incUseCount(@NotNull StatisticsInfo info);
 
   public <T,Loc> int getUseCount(final Key<? extends Statistician<T, Loc>> key, final T element, final Loc location) {
diff --git a/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsManagerImpl.java b/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsManagerImpl.java
index 16b6967f9e4f..71a3a7933c77 100644
--- a/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsManagerImpl.java
+++ b/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsManagerImpl.java
@@ -58,6 +58,18 @@ public class StatisticsManagerImpl extends StatisticsManager {
     }
   }
 
+  @Override
+  public int getLastUseRecency(@NotNull StatisticsInfo info) {
+    if (info == StatisticsInfo.EMPTY) return 0;
+
+    String key1 = info.getContext();
+    int unitNumber = getUnitNumber(key1);
+    synchronized (LOCK) {
+      StatisticsUnit unit = getUnit(unitNumber);
+      return unit.getRecency(key1, info.getValue());
+    }
+  }
+
   public void incUseCount(@NotNull final StatisticsInfo info) {
     if (info == StatisticsInfo.EMPTY) return;
     if (ApplicationManager.getApplication().isUnitTestMode() && !myTestingStatistics) {
diff --git a/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsUnit.java b/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsUnit.java
index 5099260d1851..635a437946ff 100644
--- a/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsUnit.java
+++ b/platform/platform-impl/src/com/intellij/psi/statistics/impl/StatisticsUnit.java
@@ -33,6 +33,14 @@ class StatisticsUnit {
     myNumber = number;
   }
 
+  public int getRecency(String key1, String key2) {
+    final List<String> list = myDataMap.get(key1);
+    if (list == null) return Integer.MAX_VALUE;
+
+    int i = list.indexOf(key2);
+    return i >= 0 ? i : Integer.MAX_VALUE;
+  }
+
   public int getData(String key1, String key2) {
     final List<String> list = myDataMap.get(key1);
     if (list == null) return 0;
diff --git a/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/Configuration.java b/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/Configuration.java
index ad0b6cda2930..89f2ddad8444 100644
--- a/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/Configuration.java
+++ b/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/Configuration.java
@@ -143,15 +143,16 @@ public class Configuration implements PersistentStateComponent<Element>, Modific
       return super.getModificationCount() + myParentConfiguration.getModificationCount();
     }
 
-    public boolean replaceInjections(final List<? extends BaseInjection> newInjections,
-                                     final List<? extends BaseInjection> originalInjections) {
-      if (!originalInjections.isEmpty()) {
-        if (myParentConfiguration.replaceInjections(Collections.<BaseInjection>emptyList(), originalInjections)) {
-          myParentConfiguration.replaceInjections(newInjections, Collections.<BaseInjection>emptyList());
+    public boolean replaceInjections(List<? extends BaseInjection> newInjections,
+                                     List<? extends BaseInjection> originalInjections,
+                                     boolean forceLevel) {
+      if (!forceLevel && !originalInjections.isEmpty()) {
+        if (myParentConfiguration.replaceInjections(Collections.<BaseInjection>emptyList(), originalInjections, forceLevel)) {
+          myParentConfiguration.replaceInjections(newInjections, Collections.<BaseInjection>emptyList(), forceLevel);
           return true;
         }
       }
-      return super.replaceInjections(newInjections, originalInjections);
+      return super.replaceInjections(newInjections, originalInjections, forceLevel);
     }
   }
 
@@ -389,7 +390,7 @@ public class Configuration implements PersistentStateComponent<Element>, Modific
       importInjections(getInjections(supportId), importingInjections, originalInjections, newInjections);
     }
     if (!newInjections.isEmpty()) configurationModified();
-    replaceInjections(newInjections, originalInjections);
+    replaceInjections(newInjections, originalInjections, true);
     return newInjections.size();
   }
 
@@ -505,7 +506,7 @@ public class Configuration implements PersistentStateComponent<Element>, Modific
   }
 
   protected void replaceInjectionsWithUndoInner(final List<? extends BaseInjection> add, final List<? extends BaseInjection> remove) {
-    replaceInjections(add, remove);
+    replaceInjections(add, remove, false);
   }
 
   public static <T> void replaceInjectionsWithUndo(final Project project, final T add, final T remove,
@@ -541,8 +542,9 @@ public class Configuration implements PersistentStateComponent<Element>, Modific
     }.execute();
   }
 
-  public boolean replaceInjections(final List<? extends BaseInjection> newInjections,
-                                   final List<? extends BaseInjection> originalInjections) {
+  public boolean replaceInjections(List<? extends BaseInjection> newInjections,
+                                   List<? extends BaseInjection> originalInjections,
+                                   boolean forceLevel) {
     boolean changed = false;
     for (BaseInjection injection : originalInjections) {
       changed |= myInjections.get(injection.getSupportId()).remove(injection);
diff --git a/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/InjectionsSettingsUI.java b/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/InjectionsSettingsUI.java
index fa76551b37ac..864d7a93c19d 100644
--- a/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/InjectionsSettingsUI.java
+++ b/plugins/IntelliLang/src/org/intellij/plugins/intelliLang/InjectionsSettingsUI.java
@@ -882,7 +882,7 @@ public class InjectionsSettingsUI implements SearchableConfigurable.Parent, NonD
 
     public void apply() {
       final List<BaseInjection> injectionList = getInjectionList(injectionInfos);
-      cfg.replaceInjections(injectionList, originalInjections);
+      cfg.replaceInjections(injectionList, originalInjections, true);
       originalInjections.clear();
       originalInjections.addAll(injectionList);
       sortInjections(originalInjections);
diff --git a/plugins/spellchecker/src/com/intellij/spellchecker/english.dic b/plugins/spellchecker/src/com/intellij/spellchecker/english.dic
index 969921ac609b..5753c8e2deaf 100644
--- a/plugins/spellchecker/src/com/intellij/spellchecker/english.dic
+++ b/plugins/spellchecker/src/com/intellij/spellchecker/english.dic
@@ -108015,6 +108015,7 @@ receivership
 receivership's
 receives
 receiving
+recency
 recension
 recension's
 recent