diff --git a/java/java-psi-api/src/com/intellij/psi/util/PsiTypesUtil.java b/java/java-psi-api/src/com/intellij/psi/util/PsiTypesUtil.java
index 906b576e3369..e7f6d5706b9c 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/PsiTypesUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/PsiTypesUtil.java
@@ -166,10 +166,7 @@ public class PsiTypesUtil {
           qualifierType = JavaPsiFacade.getInstance(project).getElementFactory().createType((PsiClass)parent.getPsi());
         }
       }
-      PsiElement parent = call.getParent();
-      boolean captureTopLevelWildcards = parent instanceof PsiReferenceExpression && parent.getParent() instanceof PsiMethodCallExpression ||
-                                         parent instanceof PsiExpressionList;
-      return createJavaLangClassType(methodExpression, qualifierType, captureTopLevelWildcards);
+      return createJavaLangClassType(methodExpression, qualifierType, true);
     }
     return null;
   }
diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeCompatibilityConstraint.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeCompatibilityConstraint.java
index f01c82cae769..7b76a68ab5d3 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeCompatibilityConstraint.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/graphInference/constraints/TypeCompatibilityConstraint.java
@@ -17,6 +17,7 @@ package com.intellij.psi.impl.source.resolve.graphInference.constraints;
 
 import com.intellij.psi.*;
 import com.intellij.psi.impl.source.resolve.graphInference.InferenceSession;
+import com.intellij.psi.impl.source.resolve.graphInference.InferenceVariable;
 import com.intellij.psi.util.PsiUtil;
 import com.intellij.psi.util.TypeConversionUtil;
 import org.jetbrains.annotations.NotNull;
@@ -72,7 +73,12 @@ public class TypeCompatibilityConstraint implements ConstraintFormula {
       final PsiClass sClass = sResult.getElement();
       if (tClass != null && sClass != null) {
         final PsiSubstitutor sSubstitutor = TypeConversionUtil.getClassSubstitutor(tClass, sClass, sResult.getSubstitutor());
-        if (sSubstitutor != null && PsiUtil.isRawSubstitutor(tClass, sSubstitutor)) {
+        if (sSubstitutor != null) {
+          if (PsiUtil.isRawSubstitutor(tClass, sSubstitutor)) {
+            return true;
+          }
+        }
+        else if (tClass instanceof InferenceVariable && ((PsiClassType)s).isRaw() && tClass.isInheritor(sClass, true)) {
           return true;
         }
       }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ClassLiteral.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ClassLiteral.java
index 97673a5f25ee..659f721faa69 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ClassLiteral.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/ClassLiteral.java
@@ -11,3 +11,18 @@ class Example {
       return getClass() == obj.getClass();
     }
 }
+
+class Foo<T> {
+
+    public static Class<? extends Foo<?>> fFoo(final Foo<?> foo) {
+        <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends Foo>>', required: 'java.lang.Class<? extends Foo<?>>'">Class<? extends Foo<?>> fooClass = foo.getClass();</error>
+        <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends Foo>>', required: 'java.lang.Class<? extends Foo<?>>'">fooClass = foo.getClass()</error>;
+        <error descr="Incompatible types. Found: 'java.lang.Class<? extends Foo>', required: 'java.lang.Class<? extends Foo<?>>'">return foo.getClass();</error>
+    }
+
+    public static Class<? extends Foo<? extends String>> fFoo1(final Foo<? extends String> foo) {
+        <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends Foo>>', required: 'java.lang.Class<? extends Foo<? extends java.lang.String>>'">Class<? extends Foo<? extends String>> fooClass = foo.getClass();</error>
+        <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends Foo>>', required: 'java.lang.Class<? extends Foo<? extends java.lang.String>>'">fooClass = foo.getClass()</error>;
+        <error descr="Incompatible types. Found: 'java.lang.Class<? extends Foo>', required: 'java.lang.Class<? extends Foo<? extends java.lang.String>>'">return foo.getClass();</error>
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/MultiCatch.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/MultiCatch.java
index 83b2d4976ffd..a7a73af4b45a 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/MultiCatch.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/MultiCatch.java
@@ -60,8 +60,8 @@ abstract class C {
     try { g(); }
     catch (IE1 | IE2 e) {
       Class<? extends E> clazz1 = e.getClass();
-      <error descr="Incompatible types. Found: 'java.lang.Class<? extends C.E>', required: 'java.lang.Class<? extends C.IE1>'">Class<? extends IE1> clazz2 = e.getClass();</error>
-      <error descr="Incompatible types. Found: 'java.lang.Class<? extends C.E>', required: 'java.lang.Class<? extends C.I>'">Class<? extends I> clazz3 = e.getClass();</error>
+      <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends C.E>>', required: 'java.lang.Class<? extends C.IE1>'">Class<? extends IE1> clazz2 = e.getClass();</error>
+      <error descr="Incompatible types. Found: 'java.lang.Class<capture<? extends C.E>>', required: 'java.lang.Class<? extends C.I>'">Class<? extends I> clazz3 = e.getClass();</error>
     }
 
     try { f(); }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/UncheckedConversionWithRecursiveTypeParams.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/UncheckedConversionWithRecursiveTypeParams.java
new file mode 100644
index 000000000000..f9fc707a2924
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lambda/graphInference/UncheckedConversionWithRecursiveTypeParams.java
@@ -0,0 +1,13 @@
+
+import java.util.List;
+
+class Foo<Bazz> {
+
+  public void test(Foo parent) {
+    <error descr="Incompatible types. Found: 'java.lang.Object', required: 'Foo'">Foo foo = getElements(parent).get(0);</error>
+  }
+
+  public static <E extends Foo<E>> List<E> getElements(E parent) {
+    return null;
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
index 122e776fda9d..acec098d6a5b 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/lambda/GraphInferenceHighlightingTest.java
@@ -255,6 +255,10 @@ public class GraphInferenceHighlightingTest extends LightDaemonAnalyzerTestCase
     doTest();
   }
 
+  public void testUncheckedConversionWithRecursiveTypeParams() throws Exception {
+    doTest(false);
+  }
+
   private void doTest() throws Exception {
     doTest(false);
   }
diff --git a/platform/icons/src/icons/ide/nextStep@2x.png b/platform/icons/src/icons/ide/nextStep@2x.png
new file mode 100644
index 000000000000..8968229a6f58
Binary files /dev/null and b/platform/icons/src/icons/ide/nextStep@2x.png differ
diff --git a/platform/icons/src/icons/ide/nextStepGrayed@2x.png b/platform/icons/src/icons/ide/nextStepGrayed@2x.png
new file mode 100644
index 000000000000..12f3ee9480c0
Binary files /dev/null and b/platform/icons/src/icons/ide/nextStepGrayed@2x.png differ
diff --git a/platform/icons/src/icons/ide/nextStepInverted@2x.png b/platform/icons/src/icons/ide/nextStepInverted@2x.png
new file mode 100644
index 000000000000..ca8155765ee7
Binary files /dev/null and b/platform/icons/src/icons/ide/nextStepInverted@2x.png differ
diff --git a/platform/lang-impl/src/com/intellij/ide/impl/PatchProjectUtil.java b/platform/lang-impl/src/com/intellij/ide/impl/PatchProjectUtil.java
index 773dbff4ad9a..6c2be5072224 100644
--- a/platform/lang-impl/src/com/intellij/ide/impl/PatchProjectUtil.java
+++ b/platform/lang-impl/src/com/intellij/ide/impl/PatchProjectUtil.java
@@ -41,10 +41,50 @@ import java.util.Map;
 import java.util.Set;
 import java.util.regex.Pattern;
 
+/**
+ * Utility to patch project model by excluding folders/files from content roots.
+ * Can be used for running offline inspections (from command-line directly or in teamcity).
+ *
+ * The main logic is in the method {@link #patchProject(com.intellij.openapi.project.Project)}.
+ *
+ * @see com.intellij.codeInspection.InspectionApplication
+ */
 public class PatchProjectUtil {
   private PatchProjectUtil() {
   }
 
+  /**
+   * Excludes folders specified in patterns in the <code>idea.exclude.patterns</code> system property from the project.
+   *
+   * <p>Pattern syntax:
+   * <br>
+   *
+   * <ul>
+   *   <li><code>patterns := pattern(';'pattern)*</code>
+   *   <li><code>pattern := ('['moduleRegEx']')? directoryAntPattern</code>
+   * </ul>
+   *
+   * Where
+   * <ul>
+   *   <li> <code>moduleRegex</code> - regular expression to match module name.
+   *   <li> <code>directoryAntPattern</code> - ant-style pattern to match folder in a module.
+   *        <code>directoryAntPattern</code> considers paths <b>relative</b> to a content root of a module.
+   * </ul>
+   *
+   *
+   * <p>
+   * Example:<br>
+   * <code>
+   *   -Didea.exclude.patterns=testData/**;.reports/**;[sql]/test/*.sql;[graph]/**;[graph-openapi]/**
+   * </code>
+   * <br>
+   *
+   * In this example the <code>testData/**</code> pattern is applied to all modules
+   * and the pattern <code>/test/*.sql</code> to applied to the module <code>sql</code> only.
+   *
+   * @param project project to patch
+   * @see <a href="http://ant.apache.org/manual/dirtasks.html">http://ant.apache.org/manual/dirtasks.html</a>
+   */
   public static void patchProject(final Project project) {
     final Map<Pattern, Set<Pattern>> excludePatterns = loadPatterns("idea.exclude.patterns");
     final Map<Pattern, Set<Pattern>> includePatterns = loadPatterns("idea.include.patterns");
@@ -138,6 +178,13 @@ public class PatchProjectUtil {
     });
   }
 
+  /**
+   * Parses patterns for exclude items.
+   *
+   * @param propertyKey system property key for pattern
+   * @return A map in the form <code>ModulePattern -> DirectoryPattern*</code>.
+   *         ModulePattern may be null (meaning that a directory pattern is applied to all modules).
+   */
   public static Map<Pattern, Set<Pattern>> loadPatterns(@NonNls String propertyKey) {
     final Map<Pattern, Set<Pattern>> result = new HashMap<Pattern, Set<Pattern>>();
     final String patterns = System.getProperty(propertyKey);
diff --git a/platform/util/src/com/intellij/util/text/ImmutableText.java b/platform/util/src/com/intellij/util/text/ImmutableText.java
index b883aeb0a185..b18a8b8306b0 100644
--- a/platform/util/src/com/intellij/util/text/ImmutableText.java
+++ b/platform/util/src/com/intellij/util/text/ImmutableText.java
@@ -437,7 +437,7 @@ public final class ImmutableText extends ImmutableCharSequence implements CharAr
       if (start == 0 && end == length()) {
         return this;
       }
-      return createLeafNode(subSequence(start, end));
+      return createLeafNode(new CharArrayCharSequence(data, start, end));
     }
 
     @NotNull
diff --git a/xml/xml-psi-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/TypeOrElementOrAttributeReference.java b/xml/xml-psi-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/TypeOrElementOrAttributeReference.java
index 47a77fef37a9..89f2a61197c9 100644
--- a/xml/xml-psi-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/TypeOrElementOrAttributeReference.java
+++ b/xml/xml-psi-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/TypeOrElementOrAttributeReference.java
@@ -334,16 +334,16 @@ public class TypeOrElementOrAttributeReference implements PsiReference {
       final XmlNSDescriptor nsDescriptor = tag.getNSDescriptor(namespace, true);
 
       if (nsDescriptor instanceof XmlNSDescriptorImpl) {
-        processNamespace(namespace, processor, nsDescriptor, tagNames);
+        processNamespace(namespace, processor, (XmlNSDescriptorImpl)nsDescriptor, tagNames);
       }
     }
 
     XmlNSDescriptor nsDescriptor = (XmlNSDescriptor)document.getMetaData();
-    if (nsDescriptor != null) {
+    if (nsDescriptor instanceof XmlNSDescriptorImpl) {
       processNamespace(
         ourNamespace,
         processor,
-        nsDescriptor,
+        (XmlNSDescriptorImpl)nsDescriptor,
         tagNames
       );
     }
@@ -353,13 +353,12 @@ public class TypeOrElementOrAttributeReference implements PsiReference {
 
   private static void processNamespace(final String namespace,
                                 final CompletionProcessor processor,
-                                final XmlNSDescriptor nsDescriptor,
+                                final XmlNSDescriptorImpl nsDescriptor,
                                 final String[] tagNames) {
     processor.namespace = namespace;
 
-    final XmlNSDescriptorImpl xmlNSDescriptor = ((XmlNSDescriptorImpl)nsDescriptor);
     XmlNSDescriptorImpl.processTagsInNamespace(
-      xmlNSDescriptor.getTag(),
+      nsDescriptor.getTag(),
       tagNames,
       processor
     );
diff --git a/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlElementDescriptorImpl.java b/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlElementDescriptorImpl.java
index 49d3c4c12245..6f996852ef8c 100644
--- a/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlElementDescriptorImpl.java
+++ b/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlElementDescriptorImpl.java
@@ -117,11 +117,10 @@ public class XmlElementDescriptorImpl extends XsdEnumerationDescriptor<XmlTag>
   public String getNamespace(){
     String name = getName();
     if (name == null) return XmlUtil.EMPTY_URI;
-    final XmlNSDescriptorImpl xmlNSDescriptor = (XmlNSDescriptorImpl)getNSDescriptor();
-    if (xmlNSDescriptor == null || myDescriptorTag == null) return XmlUtil.EMPTY_URI;
+    if (getNSDescriptor() == null || myDescriptorTag == null) return XmlUtil.EMPTY_URI;
     final String namespacePrefix = XmlUtil.findPrefixByQualifiedName(name);
     return namespacePrefix.isEmpty() ?
-           xmlNSDescriptor.getDefaultNamespace() :
+           getDefaultNamespace() :
            myDescriptorTag.getNamespaceByPrefix(namespacePrefix);
   }
 
@@ -192,7 +191,7 @@ public class XmlElementDescriptorImpl extends XsdEnumerationDescriptor<XmlTag>
       if (substAttr != null) {
         final String namespacePrefix = XmlUtil.findPrefixByQualifiedName(substAttr);
         final String namespace = namespacePrefix.isEmpty() ?
-                                 ((XmlNSDescriptorImpl)getNSDescriptor()).getDefaultNamespace() :
+                                 getDefaultNamespace() :
                                  myDescriptorTag.getNamespaceByPrefix(namespacePrefix);
         final String local = XmlUtil.findLocalNameByQualifiedName(substAttr);
         final XmlElementDescriptorImpl originalElement = (XmlElementDescriptorImpl)((XmlNSDescriptorImpl)getNSDescriptor()).getElementDescriptor(local, namespace);
@@ -335,9 +334,8 @@ public class XmlElementDescriptorImpl extends XsdEnumerationDescriptor<XmlTag>
   private XmlAttributeDescriptor getAttributeDescriptorImpl(final String attributeName, XmlTag context) {
     final String localName = XmlUtil.findLocalNameByQualifiedName(attributeName);
     final String namespacePrefix = XmlUtil.findPrefixByQualifiedName(attributeName);
-    final XmlNSDescriptorImpl xmlNSDescriptor = (XmlNSDescriptorImpl)getNSDescriptor();
     final String namespace = namespacePrefix.isEmpty() ?
-                             ((xmlNSDescriptor != null)?xmlNSDescriptor.getDefaultNamespace():"") :
+                             getDefaultNamespace() :
                              context.getNamespaceByPrefix(namespacePrefix);
 
     XmlAttributeDescriptor attribute = getAttribute(localName, namespace, context, attributeName);
@@ -364,6 +362,11 @@ public class XmlElementDescriptorImpl extends XsdEnumerationDescriptor<XmlTag>
     return attribute;
   }
 
+  private String getDefaultNamespace() {
+    XmlNSDescriptor nsDescriptor = getNSDescriptor();
+    return nsDescriptor instanceof XmlNSDescriptorImpl ? ((XmlNSDescriptorImpl)nsDescriptor).getDefaultNamespace() : "";
+  }
+
   @Override
   public XmlAttributeDescriptor getAttributeDescriptor(XmlAttribute attribute){
     return getAttributeDescriptorImpl(attribute.getName(),attribute.getParent());
@@ -410,7 +413,7 @@ public class XmlElementDescriptorImpl extends XsdEnumerationDescriptor<XmlTag>
       final String localName = XmlUtil.findLocalNameByQualifiedName(name);
       final String namespacePrefix = XmlUtil.findPrefixByQualifiedName(name);
       final String namespace = namespacePrefix.isEmpty() ?
-                               ((XmlNSDescriptorImpl)getNSDescriptor()).getDefaultNamespace() :
+                               getDefaultNamespace() :
                                myDescriptorTag.getNamespaceByPrefix(namespacePrefix);
     return getElementDescriptor(localName, namespace, null, name);
   }
diff --git a/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlNSDescriptorImpl.java b/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlNSDescriptorImpl.java
index 17c6f1ab37ae..820c0a992859 100644
--- a/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlNSDescriptorImpl.java
+++ b/xml/xml-psi-impl/src/com/intellij/xml/impl/schema/XmlNSDescriptorImpl.java
@@ -477,10 +477,10 @@ public class XmlNSDescriptorImpl implements XmlNSDescriptorEx,Validator<XmlDocum
   private XmlAttributeDescriptor getAttributeImpl(String localName, String namespace, @Nullable Set<XmlTag> visited) {
     if (myTag == null) return null;
 
-    XmlNSDescriptorImpl nsDescriptor = (XmlNSDescriptorImpl)myTag.getNSDescriptor(namespace, true);
+    XmlNSDescriptor nsDescriptor = myTag.getNSDescriptor(namespace, true);
 
-    if (nsDescriptor != this && nsDescriptor != null) {
-      return nsDescriptor.getAttributeImpl(
+    if (nsDescriptor != this && nsDescriptor instanceof XmlNSDescriptorImpl) {
+      return ((XmlNSDescriptorImpl)nsDescriptor).getAttributeImpl(
         localName,
         namespace,
         visited