diff --git a/python/src/com/jetbrains/python/PyElementTypes.java b/python/src/com/jetbrains/python/PyElementTypes.java
index 2b88d30cc69a..86040c3fa558 100644
--- a/python/src/com/jetbrains/python/PyElementTypes.java
+++ b/python/src/com/jetbrains/python/PyElementTypes.java
@@ -21,6 +21,7 @@ public interface PyElementTypes {
   PyElementType DECORATED_FUNCTION_DECLARATION = new PyElementType("DECORATED_FUNCTION_DECLARATION", PyDecoratedFunctionImpl.class);
   PyElementType ARGUMENT_LIST = new PyElementType("ARGUMENT_LIST", PyArgumentListImpl.class);
   PyElementType IMPORT_ELEMENT = new PyElementType("IMPORT_ELEMENT", PyImportElementImpl.class);
+  PyElementType STAR_IMPORT_ELEMENT = new PyElementType("STAR_IMPORT_ELEMENT", PyStarImportElementImpl.class);
   PyElementType EXCEPT_BLOCK = new PyElementType("EXCEPT_BLOCK", PyExceptBlockImpl.class);
   PyElementType PRINT_TARGET = new PyElementType("PRINT_TARGET", PyPrintTargetImpl.class);
 
diff --git a/python/src/com/jetbrains/python/parsing/StatementParsing.java b/python/src/com/jetbrains/python/parsing/StatementParsing.java
index 4e96391bfa0e..391b69ac8369 100644
--- a/python/src/com/jetbrains/python/parsing/StatementParsing.java
+++ b/python/src/com/jetbrains/python/parsing/StatementParsing.java
@@ -350,7 +350,9 @@ public class StatementParsing
         from_future = true;
       }
       if (builder.getTokenType() == PyTokenTypes.MULT) {
+        final PsiBuilder.Marker star_import_mark = builder.mark();
         builder.advanceLexer();
+        star_import_mark.done(PyElementTypes.STAR_IMPORT_ELEMENT);
       }
       else if (builder.getTokenType() == PyTokenTypes.LPAR) {
         builder.advanceLexer();
diff --git a/python/src/com/jetbrains/python/psi/NameDefiner.java b/python/src/com/jetbrains/python/psi/NameDefiner.java
new file mode 100644
index 000000000000..d330bbbc373b
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/NameDefiner.java
@@ -0,0 +1,131 @@
+package com.jetbrains.python.psi;
+
+import com.intellij.psi.PsiElement;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+import java.util.Iterator;
+import java.util.NoSuchElementException;
+
+/**
+ * PSI element that (re)defnies names in following namespace, e.g. assignment statement does.
+ * User: dcheryasov
+ * Date: Jul 3, 2008
+ */
+public interface NameDefiner extends PsiElement {
+  /**
+   * @return an iterator that iterates over defined names, in order of definition.
+   * Complex targets count, too: "(y, x[1]) = (1, 2)" return both "y" and "x[1]".
+   */
+  @NotNull
+  Iterable<PyElement> iterateNames();
+
+  /**
+   * @param the_name an unqualified name.
+   * @return an element which is defined under that name in this instance, or null. 
+   */
+  @Nullable
+  PsiElement getElementNamed(String the_name);
+
+  /**
+   * @return true if names found inside its children cannot be resolved to names defined by this statement..
+   * E.g. name <tt>a</tt> is defined in statement <tt>a = a + 1</tt> but the <tt>a</tt> on the left hand side
+   * must not resolve to the <tt>a</tt> on the right hand side.
+   */
+  boolean mustResolveOutside();
+
+
+  /**
+   * Convenience iterator wrapper; makes items cast to given type (presumably PyExpression).
+   * @param <T> class to cast to.
+   */
+  class ArrayIterable<T> implements Iterable<T> {
+    protected T[] mySource;
+    public ArrayIterable(T[] source){
+      mySource = source;
+    }
+
+    public Iterator<T> iterator() {
+      return new ArrayIter<T>(mySource);
+    }
+  }
+
+  class ArrayIter<T> implements Iterator<T> {
+
+    protected int my_index;
+    protected T[] content;
+
+    public ArrayIter(T[] content) {
+      this.content = content;
+      my_index = 0;
+    }
+
+    public boolean hasNext() {
+      return ((content != null) && (my_index < content.length));
+    }
+
+    public T next() {
+      if (hasNext()) {
+        T ret = content[my_index];
+        my_index +=  1;
+        return ret;
+      }
+      else throw new NoSuchElementException(content == null ? "Null content" : "Only got " + content.length + "items");
+    }
+
+    public void remove() {
+      throw new UnsupportedOperationException("Can't remove targets from iter");
+    }
+  }
+
+  class SingleIterable<T> implements Iterable<T> {
+
+    T content;
+    public SingleIterable(T content) {
+      this.content = content;
+    }
+
+    public Iterator<T> iterator() {
+      return new SingleIter(); 
+    }
+
+    class SingleIter implements Iterator<T> {
+
+      boolean expired;
+      SingleIter() {
+        expired = false;
+      }
+      public boolean hasNext() {
+        return !expired;
+      }
+
+      public T next() {
+        if (hasNext()) {
+          expired = true;
+          return content;
+        }
+        else throw new NoSuchElementException("Single iter expired");
+      }
+
+      public void remove() {
+        throw new UnsupportedOperationException("Can't remove targets from single iter");
+      }
+    }
+  }
+
+  class IterHelper {
+    private IterHelper() {}
+    @Nullable
+    public static PyElement findName(Iterable<PyElement> it, String name) {
+      PyElement ret = null;
+      for (PyElement elt : it) {
+        if ((elt != null) && (name.equals(elt.getName()))) {
+          ret = elt;
+          break;
+        }
+      }
+      return ret;
+    }
+  }
+
+}
diff --git a/python/src/com/jetbrains/python/psi/PyAssignmentStatement.java b/python/src/com/jetbrains/python/psi/PyAssignmentStatement.java
index 0add022c56ea..d313859dd831 100644
--- a/python/src/com/jetbrains/python/psi/PyAssignmentStatement.java
+++ b/python/src/com/jetbrains/python/psi/PyAssignmentStatement.java
@@ -25,7 +25,7 @@ import org.jetbrains.annotations.Nullable;
  * Time: 13:05:17
  * To change this template use File | Settings | File Templates.
  */
-public interface PyAssignmentStatement extends PyStatement {
+public interface PyAssignmentStatement extends PyStatement, NameDefiner {
     PyExpression[] getTargets();
     @Nullable PyExpression getAssignedValue();
 }
diff --git a/python/src/com/jetbrains/python/psi/PyClass.java b/python/src/com/jetbrains/python/psi/PyClass.java
index 0c8fb8aa8aa9..9236c343730c 100644
--- a/python/src/com/jetbrains/python/psi/PyClass.java
+++ b/python/src/com/jetbrains/python/psi/PyClass.java
@@ -30,7 +30,7 @@ import org.jetbrains.annotations.Nullable;
  * Time: 0:26:47
  * To change this template use File | Settings | File Templates.
  */
-public interface PyClass extends PsiNamedElement, PyElement, PyDocStringOwner, StubBasedPsiElement<PyClassStub> {
+public interface PyClass extends PsiNamedElement, PyElement, NameDefiner, PyDocStringOwner, StubBasedPsiElement<PyClassStub> {
   @NotNull
   PyStatementList getStatementList();
 
diff --git a/python/src/com/jetbrains/python/psi/PyElement.java b/python/src/com/jetbrains/python/psi/PyElement.java
index 01c1b98e97b0..4368e4f3ef04 100644
--- a/python/src/com/jetbrains/python/psi/PyElement.java
+++ b/python/src/com/jetbrains/python/psi/PyElement.java
@@ -21,7 +21,24 @@ import com.intellij.psi.tree.TokenSet;
 import org.jetbrains.annotations.Nullable;
 
 public interface PyElement extends NavigatablePsiElement {
+
+  /**
+   * An empty array to return cheaply without allocating it anew.
+   */
+  PyElement[] EMPTY_ARRAY = new PyElement[0];
+
+  /**
+   * Find a parent element of specified class.
+   * @param aClass the class to look for.
+   * @param &lt;T> the class to look for and to return. (Logically the same as aClass, but Java fails to express this concisely.)
+   * @return A parent element whose class is <tt>T</tt>, if it exists, or null.
+   */
   @Nullable <T extends PyElement> T getContainingElement(Class<T> aClass);
 
+  /**
+   * Find a parent whose element type is in the set.
+   * @param tokenSet a set of element types
+   * @return A parent element whose element type belongs to tokenSet, if it exists, or null.
+   */
   @Nullable PyElement getContainingElement(TokenSet tokenSet);
 }
diff --git a/python/src/com/jetbrains/python/psi/PyExceptBlock.java b/python/src/com/jetbrains/python/psi/PyExceptBlock.java
index 1609e49c147a..afb3dba950d8 100644
--- a/python/src/com/jetbrains/python/psi/PyExceptBlock.java
+++ b/python/src/com/jetbrains/python/psi/PyExceptBlock.java
@@ -26,7 +26,7 @@ import org.jetbrains.annotations.NotNull;
  * Time: 23:37:32
  * To change this template use File | Settings | File Templates.
  */
-public interface PyExceptBlock extends PyElement {
+public interface PyExceptBlock extends PyElement, NameDefiner {
     PyExceptBlock[] EMPTY_ARRAY = new PyExceptBlock[0];
 
     @Nullable PyExpression getExceptClass();
diff --git a/python/src/com/jetbrains/python/psi/PyForStatement.java b/python/src/com/jetbrains/python/psi/PyForStatement.java
index 24689b6c9ae0..3d3922bfd3c0 100644
--- a/python/src/com/jetbrains/python/psi/PyForStatement.java
+++ b/python/src/com/jetbrains/python/psi/PyForStatement.java
@@ -26,7 +26,7 @@ import org.jetbrains.annotations.Nullable;
  * Time: 21:20:52
  * To change this template use File | Settings | File Templates.
  */
-public interface PyForStatement extends PyStatement {
+public interface PyForStatement extends PyStatement, NameDefiner {
     @NotNull PyStatementList getStatementList();
     @Nullable PyStatementList getElseStatementList();
     @Nullable PyExpression getTargetExpression();
diff --git a/python/src/com/jetbrains/python/psi/PyFunction.java b/python/src/com/jetbrains/python/psi/PyFunction.java
index f41f8722a1bc..dcff13c65cb9 100644
--- a/python/src/com/jetbrains/python/psi/PyFunction.java
+++ b/python/src/com/jetbrains/python/psi/PyFunction.java
@@ -30,7 +30,7 @@ import org.jetbrains.annotations.Nullable;
  * Time: 23:01:03
  * To change this template use File | Settings | File Templates.
  */
-public interface PyFunction extends PsiNamedElement, PyElement, PyDocStringOwner, StubBasedPsiElement<PyFunctionStub> {
+public interface PyFunction extends PsiNamedElement, PyElement, NameDefiner, PyDocStringOwner, StubBasedPsiElement<PyFunctionStub> {
   PyFunction[] EMPTY_ARRAY = new PyFunction[0];
   
   /**
diff --git a/python/src/com/jetbrains/python/psi/PyGlobalStatement.java b/python/src/com/jetbrains/python/psi/PyGlobalStatement.java
index 1fec3501684f..6d71dfabdb3a 100644
--- a/python/src/com/jetbrains/python/psi/PyGlobalStatement.java
+++ b/python/src/com/jetbrains/python/psi/PyGlobalStatement.java
@@ -25,6 +25,6 @@ import org.jetbrains.annotations.NotNull;
  * Time: 10:29:19
  * To change this template use File | Settings | File Templates.
  */
-public interface PyGlobalStatement extends PyStatement {
+public interface PyGlobalStatement extends PyStatement, NameDefiner {
     @NotNull PyReferenceExpression[] getGlobals();
 }
diff --git a/python/src/com/jetbrains/python/psi/PyImportElement.java b/python/src/com/jetbrains/python/psi/PyImportElement.java
index d8d4caeda4ce..01d906d749e2 100644
--- a/python/src/com/jetbrains/python/psi/PyImportElement.java
+++ b/python/src/com/jetbrains/python/psi/PyImportElement.java
@@ -25,7 +25,7 @@ import org.jetbrains.annotations.Nullable;
  * Time: 22:22:17
  * To change this template use File | Settings | File Templates.
  */
-public interface PyImportElement extends PyElement {
+public interface PyImportElement extends PyElement, NameDefiner {
 
   @Nullable
   PyReferenceExpression getImportReference();
diff --git a/python/src/com/jetbrains/python/psi/PyParameterList.java b/python/src/com/jetbrains/python/psi/PyParameterList.java
index 39e0b862a7ec..134908a4d902 100644
--- a/python/src/com/jetbrains/python/psi/PyParameterList.java
+++ b/python/src/com/jetbrains/python/psi/PyParameterList.java
@@ -26,6 +26,6 @@ import com.jetbrains.python.psi.stubs.PyParameterListStub;
  * Time: 23:03:11
  * To change this template use File | Settings | File Templates.
  */
-public interface PyParameterList extends PyElement, StubBasedPsiElement<PyParameterListStub> {
+public interface PyParameterList extends PyElement, StubBasedPsiElement<PyParameterListStub>, NameDefiner {
   PyParameter[] getParameters();
 }
diff --git a/python/src/com/jetbrains/python/psi/PyResolveUtil.java b/python/src/com/jetbrains/python/psi/PyResolveUtil.java
index 126bbffdb323..5c76fe3ffed1 100644
--- a/python/src/com/jetbrains/python/psi/PyResolveUtil.java
+++ b/python/src/com/jetbrains/python/psi/PyResolveUtil.java
@@ -21,7 +21,9 @@ import com.intellij.codeInsight.lookup.LookupElementFactory;
 import com.intellij.lang.ASTNode;
 import com.intellij.openapi.vfs.VirtualFile;
 import com.intellij.psi.*;
+import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.scope.PsiScopeProcessor;
+import com.jetbrains.python.PyElementTypes;
 import com.jetbrains.python.psi.impl.PyScopeProcessor;
 import com.jetbrains.python.psi.impl.ResolveImportUtil;
 import org.jetbrains.annotations.NotNull;
@@ -41,6 +43,7 @@ public class PyResolveUtil {
 
   @NotNull
   public static String getReadableRepr(PsiElement elt) {
+    if (elt == null) return "null!";
     ASTNode node = elt.getNode();
     if (node == null) return "null";
     else {
@@ -54,35 +57,155 @@ public class PyResolveUtil {
   private PyResolveUtil() {
   }
 
+
+  /**
+   * Tries to find nearest parent that conceals nams definded inside it. Such elements are 'class' and 'def':
+   * anything defined within it does not seep to the namespace below them, but is concealed within.
+   * @param elt starting point of search.
+   * @return 'class' or 'def' element, or null if not found.
+   */
   @Nullable
-  public static PsiElement treeWalkUp(PsiScopeProcessor processor, PsiElement elt, PsiElement lastParent, PsiElement place) {
-    if (elt == null) return null;
+  public static PsiElement getConcealingParent(PsiElement elt) {
+    PsiElement top = PsiTreeUtil.getParentOfType(elt, PyClass.class, PyFunction.class);
+    return top;
+  }
 
-    PsiElement cur = elt;
+  protected static PsiElement getInnermostChildOf(PsiElement elt) {
+    PsiElement feeler = elt;
+    PsiElement seeker;
+    seeker = feeler;
+    // find innermost last child of the subtree we're in
+    while (feeler != null) {
+      seeker = feeler;
+      feeler = feeler.getLastChild();
+    }
+    return seeker;
+  }
+
+  /**
+   * Returns closest previous node of given class, as input file would have it.
+   * @param elt node from which to look for a previous atatement.
+   * @param cls class of the previous node to find.
+   * @return previous statement, or null.
+   */
+  @Nullable
+  public static <T> T getPrevNodeOf(PsiElement elt, Class<T> cls) {
+    PsiElement seeker = elt;
+    while (seeker != null) {
+      PsiElement feeler = seeker.getPrevSibling();
+      if (feeler != null) {
+        seeker = getInnermostChildOf(feeler);
+      }
+      else { // we were the first subnode
+        // find something above the parent node we've not exhausted yet
+        seeker = seeker.getParent();
+        if (seeker instanceof PyFile) return null; // all file nodes have been looked up, in vain
+      }
+      if (cls.isInstance(seeker)) return (T)seeker;
+    }
+    // here elt is null or a PsiFile is not up in the parent chain.
+    return null;
+  }
+
+  /**
+   * Crawls up the PSI tree, checking nodes as if crawling backwards through source lexemes.
+   * @param processor a visitor that says when the crawl is done and collects info.
+   * @param elt element from which we start (not checked by processor); if null, the search immediately fails. 
+   * @param fromunder if true, search not above elt, but from an [possibly imaginary] node right below elt; so elt gets analyzed, too.
+   * @return first element that the processor accepted.
+   */
+  @Nullable
+  public static PsiElement treeCrawlUp(PsiScopeProcessor processor, PsiElement elt, boolean fromunder) {
+    if (elt == null) return null; // can't find anyway.
+    PsiElement seeker = elt;
+    PsiElement cap = getConcealingParent(elt);
     do {
-      if ((processor instanceof ResolveProcessor) && !(((ResolveProcessor)processor).approve(cur))) {
-        return null;
-      }
-      /* // resolution debug tracker
-      if (cur instanceof PsiFile) System.out.println(processor.toString() + ": " + cur.toString());
-      else System.out.println(processor.toString() + ": " + _fmt_node(cur)); 
-      */
-      if (!cur.processDeclarations(processor, ResolveState.initial(), cur == elt ? lastParent : null, elt)) {
-        if (processor instanceof ResolveProcessor) {
-          return ((ResolveProcessor)processor).getResult();
+      if (fromunder) {
+        fromunder = false; // only honour fromunder once per call
+        seeker = getPrevNodeOf(getInnermostChildOf(seeker), NameDefiner.class);
+      }
+      else { // main case
+        seeker = getPrevNodeOf(seeker, NameDefiner.class);
+      }
+      // aren't we in the same defining assignment, global, etc?
+      if ((seeker != null) && ((NameDefiner)seeker).mustResolveOutside() && PsiTreeUtil.isAncestor(seeker, elt, true)
+      ) {
+        seeker = getPrevNodeOf(seeker, NameDefiner.class);
+      }
+      // maybe we're under cap
+      while (true) {
+        PsiElement local_cap = getConcealingParent(seeker);
+        if ((local_cap != null) && (local_cap != cap)) { // only look at local cap and above
+          if (local_cap instanceof NameDefiner) seeker = local_cap;
+          else seeker = getPrevNodeOf(local_cap, NameDefiner.class);
         }
+        if (local_cap == null) break; // seeker is in global context
+        if (local_cap == cap) break; // seeker is in the same context as elt
+        if ((cap != null) && PsiTreeUtil.isAncestor(local_cap, cap, true)) break; // seeker is in a context above elt's
       }
-      if (cur instanceof PsiFile) break;
-      cur = cur.getPrevSibling();
+      // maybe we're capped by a class
+      PsiElement possible_class_cap = getConcealingParent(seeker);
+      if (possible_class_cap instanceof PyClass) continue; // class implicitly qualifies things, and we're looking for unqualified.
+      // check
+      if (seeker != null) {
+        if (!processor.execute(seeker, ResolveState.initial())) {
+          if (processor instanceof ResolveProcessor) {
+            return ((ResolveProcessor)processor).getResult();
+          }
+          else return seeker; // can't point to exact element, but somewhere here
+        }
+      }
+    } while (seeker != null);
+    return null;
+  }
+
+  /**
+   * Returns treeCrawlUp(processor, elt, false). A convenience method.
+   * @see com.jetbrains.python.psi.PyResolveUtil#treeCrawlUp(PsiScopeProcessor, PsiElement, boolean)
+   */
+  @Nullable
+  public static PsiElement treeCrawlUp(PsiScopeProcessor processor, PsiElement elt) {
+    return treeCrawlUp(processor, elt, false);
+  }
+
+
+  public static class DeclRefPair {
+    public final PsiElement decl;
+    public final PsiElement ref;
+    public DeclRefPair(PsiElement decl, PsiElement ref) {
+      this.decl = decl;
+      this.ref = ref;
     }
-    while (cur != null);
+  }
 
-    if (elt == place) return null;
-
-    return treeWalkUp(processor, elt.getContext(), elt, place);
+  /**
+   * Resolves a (qualified) reference by collecting all its (left-hand) qualifiers and resolving left to right.
+   * E.g. an attemt to resolve "z" in "x.y.z" resolves x, then y in x, then z in x.y.
+   * @param target the reference to resolve.
+   * @return a list of (declaration, ref) pairs for all qualifeirs of target, with ref == target for the last element.
+   * E.g. for "x.y.z" the result is {(X, x), (Y, y), (Z, z)}, where X, Y and Z are declarations which x, y, and z refer to.
+   * When a declaration for a reference cannot be found, null is given instead.
+   * E.g. {(X, x), (Y, y), (null, z)} means that element z failed to resolve to a declaration. 
+   */
+  @NotNull
+  public static List<DeclRefPair> resolveQualified(PyReferenceExpression target) {
+    List<DeclRefPair> ret = new LinkedList<DeclRefPair>();
+    try {
+      final ASTNode[] nodes = target.getNode().getChildren(PyElementTypes.EXPRESSIONS);
+      if (nodes.length > 0) {
+        PyExpression first = (PyExpression)nodes[nodes.length-1]; // innermost child is leftmost qualifier
+        // find nearest expression that both precedes target and defines the name of first
+        // it may be a target of assignment, a parameter definition or a global definition.
+        // for this, go from target backwards.
+      }
+    }
+    catch (NullPointerException ex) {
+      ret.add(new DeclRefPair(null, target)); // on NPE, return at least a safe "dunno"
+      // TODO: log this
+    }
+    return ret;
   }
 
-  // NOTE: to be moved to more general scope
   /**
    * Tries to match two [qualified] reference expression paths; target must be a 'sublist' of source to match.
    * E.g., 'a.b.c.d' and 'a.b.c' would match, while 'a.b.c' and 'a.b.c.d' would not. Eqaully, 'a.b.c' and 'a.b.d' would not match.
@@ -109,7 +232,7 @@ public class PyResolveUtil {
 
   /**
    * Unwinds a [multi-level] qualified expression into a path, as seen in source text, i.e. outermost qualifier first.
-   * If any qualifier happens to be not a referencce expression, or expr is null, null is returned.
+   * If any qualifier happens to be not a reference expression, or expr is null, null is returned.
    * @param expr an experssion to unwind.
    * @return path as a list of ref expressions, or null.
    */
@@ -189,6 +312,14 @@ public class PyResolveUtil {
           return false;
         }
       }
+      else if (element instanceof NameDefiner) {
+        final NameDefiner definer = (NameDefiner)element;
+        PsiElement by_name = definer.getElementNamed(myName);
+        if (by_name != null) {
+          myResult = by_name;
+          return false;
+        }
+      }
 
       return true;
     }
@@ -271,6 +402,7 @@ public class PyResolveUtil {
     }
 
     public boolean execute(PsiElement element, ResolveState substitutor) {
+      // TODO: refactor to look saner; much code duplication
       if (element instanceof PsiNamedElement) {
         final PsiNamedElement psiNamedElement = (PsiNamedElement)element;
         final String name = psiNamedElement.getName();
@@ -285,6 +417,17 @@ public class PyResolveUtil {
           myVariants.put(referencedName, LookupElementFactory.getInstance().createLookupElement(element, referencedName));
         }
       }
+      else if (element instanceof NameDefiner) {
+        final NameDefiner definer = (NameDefiner)element;
+        for (PyElement expr: definer.iterateNames()) {
+          if (expr != null) { // NOTE: maybe rather have SingleIterables skip nulls outright?
+            String referencedName = expr.getName();
+            if (referencedName != null && !myVariants.containsKey(referencedName)) {
+              myVariants.put(referencedName, LookupElementFactory.getInstance().createLookupElement(element, referencedName));
+            }
+          }
+        }
+      }
 
       return true;
     }
diff --git a/python/src/com/jetbrains/python/psi/PyStarImportElement.java b/python/src/com/jetbrains/python/psi/PyStarImportElement.java
new file mode 100644
index 000000000000..1f91048da631
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/PyStarImportElement.java
@@ -0,0 +1,9 @@
+package com.jetbrains.python.psi;
+
+/**
+ * Marks the star in "from foo import *".
+ * User: dcheryasov
+ * Date: Jul 28, 2008
+ */
+public interface PyStarImportElement extends PyElement, NameDefiner {
+}
diff --git a/python/src/com/jetbrains/python/psi/impl/PyArgumentListImpl.java b/python/src/com/jetbrains/python/psi/impl/PyArgumentListImpl.java
index a9ecf9df6a1c..dcca28ac68d8 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyArgumentListImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyArgumentListImpl.java
@@ -239,4 +239,5 @@ public class PyArgumentListImpl extends PyElementImpl implements PyArgumentList
       me.removeChild(node);
     }
   }
+
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyAssignmentStatementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyAssignmentStatementImpl.java
index 90dccd5c1147..4aec75047b69 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyAssignmentStatementImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyAssignmentStatementImpl.java
@@ -18,8 +18,8 @@ package com.jetbrains.python.psi.impl;
 
 import com.intellij.lang.ASTNode;
 import com.intellij.psi.PsiElement;
-import com.intellij.psi.ResolveState;
 import com.intellij.psi.PsiErrorElement;
+import com.intellij.psi.ResolveState;
 import com.intellij.psi.scope.PsiScopeProcessor;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.jetbrains.python.PyElementTypes;
@@ -27,6 +27,9 @@ import com.jetbrains.python.psi.*;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
+import java.util.ArrayList;
+import java.util.List;
+
 /**
  * Created by IntelliJ IDEA.
  * User: yole
@@ -97,4 +100,35 @@ public class PyAssignmentStatementImpl extends PyElementImpl implements PyAssign
     }
     return true;
   }
+
+  protected static List<PyElement> _unfoldParenExprs(PyElement[] targets, List<PyElement> receiver) {
+    // NOTE: this proliferation of instanceofs is not very beautiful. Maybe rewrite using a visitor.
+    for (PyElement exp : targets) {
+      if (exp instanceof PyParenthesizedExpression) {
+        final PyParenthesizedExpression parex = (PyParenthesizedExpression)exp;
+        PyExpression cont = parex.getContainedExpression();
+        if (cont instanceof PyTupleExpression) {
+          final PyTupleExpression tupex = (PyTupleExpression)cont;
+          _unfoldParenExprs(tupex.getElements(), receiver);
+        }
+        else receiver.add(exp);
+      }
+      else receiver.add(exp);
+    }
+    return receiver;
+  }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    PyExpression[] targets = getTargets();
+    return _unfoldParenExprs(targets, new ArrayList<PyElement>(targets.length));
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return IterHelper.findName(iterateNames(), the_name);
+  }
+
+  public boolean mustResolveOutside() {
+    return true; // a = a+1 resolves 'a' outside itself.
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java b/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
index ef131e01f113..8830113e0f74 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
@@ -137,6 +137,7 @@ public class PyClassImpl extends PyPresentableElementImpl<PyClassStub> implement
 
   @NotNull
   public PyFunction[] getMethods() {
+    // TODO: gather all top-level functions, maybe within control statements
     final PyClassStub classStub = getStub();
     if (classStub != null) {
       return classStub.getChildrenByType(PyElementTypes.FUNCTION_DECLARATION, new PyFunction[0]);
@@ -211,11 +212,13 @@ public class PyClassImpl extends PyPresentableElementImpl<PyClassStub> implement
     return result.toArray(new PyTargetExpression[result.size()]);
   }
 
-  @Override
+  @Override        
   public boolean processDeclarations(@NotNull PsiScopeProcessor processor,
                                      @NotNull ResolveState substitutor,
                                      PsiElement lastParent,
-                                     @NotNull PsiElement place) {
+                                     @NotNull PsiElement place)
+  {
+    /* */
     for(PyFunction func: getMethods()) {
       if (func == lastParent) continue;
       if (!processor.execute(func, substitutor)) return false;
@@ -231,6 +234,7 @@ public class PyClassImpl extends PyPresentableElementImpl<PyClassStub> implement
     if (processor instanceof PyResolveUtil.VariantsProcessor) {
       return true;
     }
+    /**/
     return processor.execute(this, substitutor);
   }
 
@@ -246,4 +250,17 @@ public class PyClassImpl extends PyPresentableElementImpl<PyClassStub> implement
   public String toString() {
     return "PyClass: " + getName();
   }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new SingleIterable<PyElement>(this);
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return the_name.equals(getName())? this: null;
+  }
+
+  public boolean mustResolveOutside() {
+    return false;
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyExceptBlockImpl.java b/python/src/com/jetbrains/python/psi/impl/PyExceptBlockImpl.java
index fb78d624e0a6..c0c0bd9d9619 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyExceptBlockImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyExceptBlockImpl.java
@@ -17,13 +17,10 @@
 package com.jetbrains.python.psi.impl;
 
 import com.intellij.lang.ASTNode;
-import com.jetbrains.python.psi.PyElementVisitor;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import com.jetbrains.python.PyElementTypes;
-import com.jetbrains.python.psi.PyExceptBlock;
-import com.jetbrains.python.psi.PyExpression;
-import com.jetbrains.python.psi.PyStatementList;
+import com.jetbrains.python.psi.*;
 
 /**
  * Created by IntelliJ IDEA.
@@ -33,23 +30,37 @@ import com.jetbrains.python.psi.PyStatementList;
  * To change this template use File | Settings | File Templates.
  */
 public class PyExceptBlockImpl extends PyElementImpl implements PyExceptBlock {
-    public PyExceptBlockImpl(ASTNode astNode) {
-        super(astNode);
-    }
+  public PyExceptBlockImpl(ASTNode astNode) {
+      super(astNode);
+  }
 
-    @Override protected void acceptPyVisitor(PyElementVisitor pyVisitor) {
-        pyVisitor.visitPyExceptBlock(this);
-    }
+  @Override protected void acceptPyVisitor(PyElementVisitor pyVisitor) {
+      pyVisitor.visitPyExceptBlock(this);
+  }
 
-    public @Nullable PyExpression getExceptClass() {
-        return childToPsi(PyElementTypes.EXPRESSIONS, 0);
-    }
+  public @Nullable PyExpression getExceptClass() {
+      return childToPsi(PyElementTypes.EXPRESSIONS, 0);
+  }
 
-    public @Nullable PyExpression getTarget() {
-        return childToPsi(PyElementTypes.EXPRESSIONS, 1);
-    }
+  public @Nullable PyExpression getTarget() {
+      return childToPsi(PyElementTypes.EXPRESSIONS, 1);
+  }
 
-    public @NotNull PyStatementList getStatementList() {
-        return childToPsiNotNull(PyElementTypes.STATEMENT_LIST);
-    }
+  public @NotNull PyStatementList getStatementList() {
+      return childToPsiNotNull(PyElementTypes.STATEMENT_LIST);
+  }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new SingleIterable<PyElement>(getTarget());
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    PyElement target = getTarget();
+    return ((target != null) && the_name.equals(target.getName()))? target : null;
+  }
+
+  public boolean mustResolveOutside() {
+    return false; 
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyForStatementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyForStatementImpl.java
index ecc2dcda0ba5..3f1a21fb4ddf 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyForStatementImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyForStatementImpl.java
@@ -84,4 +84,21 @@ public class PyForStatementImpl extends PyElementImpl implements PyForStatement
     }
     return true;
   }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    PyExpression tgt = getTargetExpression();
+    if (tgt instanceof PyTupleExpression) {
+      return new ArrayIterable<PyElement>(((PyTupleExpression)(tgt)).getElements());
+    }
+    else return new SingleIterable<PyElement>(tgt);
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return IterHelper.findName(iterateNames(), the_name);
+  }
+
+  public boolean mustResolveOutside() {
+    return false; 
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java b/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
index 6d6ac6e21852..ae5f740c00a8 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
@@ -118,14 +118,16 @@ public class PyFunctionImpl extends PyPresentableElementImpl<PyFunctionStub> imp
   public boolean processDeclarations(@NotNull PsiScopeProcessor processor,
                                      @NotNull ResolveState substitutor,
                                      PsiElement lastParent,
-                                     @NotNull PsiElement place) {
+                                     @NotNull PsiElement place)
+  {
+    /*
     if (lastParent != null && lastParent.getParent() == this) {
       final PyParameter[] params = getParameterList().getParameters();
       for (PyParameter param : params) {
         if (!processor.execute(param, substitutor)) return false;
       }
     }
-
+    */
     return processor.execute(this, substitutor);
   }
 
@@ -150,4 +152,17 @@ public class PyFunctionImpl extends PyPresentableElementImpl<PyFunctionStub> imp
     }
     return super.getElementLocation();
   }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new SingleIterable<PyElement>(this);
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return the_name.equals(getName())? this : null;
+  }
+
+  public boolean mustResolveOutside() {
+    return false; 
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyGlobalStatementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyGlobalStatementImpl.java
index 409b30cad6cb..bcca7575d78e 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyGlobalStatementImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyGlobalStatementImpl.java
@@ -61,4 +61,17 @@ public class PyGlobalStatementImpl extends PyElementImpl implements PyGlobalStat
     }
     return true;
   }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new ArrayIterable<PyElement>(getGlobals());
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return IterHelper.findName(iterateNames(), the_name);
+  }
+
+  public boolean mustResolveOutside() {
+    return true;
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyImportElementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyImportElementImpl.java
index eb27e3bbc0f7..5e5721e60620 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyImportElementImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyImportElementImpl.java
@@ -22,10 +22,7 @@ import com.intellij.psi.ResolveState;
 import com.intellij.psi.scope.PsiScopeProcessor;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.jetbrains.python.PyElementTypes;
-import com.jetbrains.python.psi.PyImportElement;
-import com.jetbrains.python.psi.PyReferenceExpression;
-import com.jetbrains.python.psi.PyTargetExpression;
-import com.jetbrains.python.psi.PyResolveUtil;
+import com.jetbrains.python.psi.*;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -94,4 +91,43 @@ public class PyImportElementImpl extends PyElementImpl implements PyImportElemen
     return true;
   }
 
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    PyElement ret = getAsName();
+    if (ret == null) {
+      List<PyReferenceExpression> unwound_path = PyResolveUtil.unwindRefPath(getImportReference());
+      if ((unwound_path != null) && (unwound_path.size() > 0)) ret = unwound_path.get(0); 
+    }
+    return new SingleIterable<PyElement>(ret);
+  }
+
+  public PsiElement getElementNamed(final String the_name) {
+    PyElement named_elt = IterHelper.findName(iterateNames(), the_name);
+    if (named_elt != null) {
+      PsiElement from_elt = null;
+      PyReferenceExpression import_ref = getImportReference(); // import what?
+      if (import_ref == null) return null; 
+      String import_ref_name = import_ref.getName();
+      if (import_ref_name == null) return null; // no imported name
+      /*
+      PyFromImportStatement import_from_stmt = PsiTreeUtil.getParentOfType(this, PyFromImportStatement.class);
+      if (import_from_stmt != null) {
+        PyReferenceExpression from_src = import_from_stmt.getImportSource();
+        if (from_src != null) {
+          //return ResolveImportUtil.resolvePythonImport2(from_src, import_ref_name);
+          return ResolveImportUtil.resolveImportReference(import_ref);
+        }
+      }
+      // else return ResolveImportUtil.resolvePythonImport2(import_ref, null);
+      else return ResolveImportUtil.resolveImportReference(import_ref);
+      */
+      return ResolveImportUtil.resolveImportReference(import_ref);
+    }
+    // no element of this name
+    return null;
+  }
+
+  public boolean mustResolveOutside() {
+    return true; // formally
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyParameterListImpl.java b/python/src/com/jetbrains/python/psi/impl/PyParameterListImpl.java
index 737f714ddd95..439c5e6b5871 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyParameterListImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyParameterListImpl.java
@@ -18,10 +18,9 @@ package com.jetbrains.python.psi.impl;
 
 import com.intellij.lang.ASTNode;
 import com.jetbrains.python.PyElementTypes;
-import com.jetbrains.python.psi.PyElementVisitor;
-import com.jetbrains.python.psi.PyParameter;
-import com.jetbrains.python.psi.PyParameterList;
+import com.jetbrains.python.psi.*;
 import com.jetbrains.python.psi.stubs.PyParameterListStub;
+import org.jetbrains.annotations.NotNull;
 
 /**
  * Created by IntelliJ IDEA.
@@ -47,4 +46,17 @@ public class PyParameterListImpl extends PyBaseElementImpl<PyParameterListStub>
   public PyParameter[] getParameters() {
     return getStubOrPsiChildren(PyElementTypes.FORMAL_PARAMETER, new PyParameter[0]);
   }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new ArrayIterable<PyElement>(getParameters());
+  }
+
+  public PyElement getElementNamed(final String the_name) {
+    return IterHelper.findName(iterateNames(), the_name);
+  }
+
+  public boolean mustResolveOutside() {
+    return false;  // we don't exactly have children to resolve, but if we did...
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyReferenceExpressionImpl.java b/python/src/com/jetbrains/python/psi/impl/PyReferenceExpressionImpl.java
index a1e6d3f7ecd4..5e732bf8241e 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyReferenceExpressionImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyReferenceExpressionImpl.java
@@ -36,7 +36,9 @@ import com.jetbrains.python.psi.types.PyType;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
-import java.util.*;
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.List;
 
 /**
  * Created by IntelliJ IDEA.
@@ -95,6 +97,13 @@ public class PyReferenceExpressionImpl extends PyElementImpl implements PyRefere
     return getNode().findChildByType(PyTokenTypes.IDENTIFIER);
   }
 
+  @Nullable
+  @Override
+  public String getName() {
+    return getReferencedName();
+  }
+
+
   /**
    * Resolves reference to the most obvious point.
    * Imported module names: to module file (or directory for a qualifier). 
@@ -119,6 +128,7 @@ public class PyReferenceExpressionImpl extends PyElementImpl implements PyRefere
           If we ever need to exactly tell a dir from __init__.py, that logic has to change. 
           */ 
         }
+        else return null; // dir without __init__.py does not resolve
       }
       return target;
     }
@@ -132,7 +142,39 @@ public class PyReferenceExpressionImpl extends PyElementImpl implements PyRefere
       return null;
     }
 
-    return PyResolveUtil.treeWalkUp(new PyResolveUtil.ResolveProcessor(referencedName), this, this, null);
+    // here we have an unqualified expr. it may be defined:
+    // ...in current file
+    //PsiElement ret = PyResolveUtil.treeWalkUp(new PyResolveUtil.ResolveProcessor(referencedName), this, this, null);
+    PsiElement ret = PyResolveUtil.treeCrawlUp(new PyResolveUtil.ResolveProcessor(referencedName), this);
+    if (ret == null) {
+      // ...as a part of current module
+      PyType otype = PyBuiltinCache.getInstance(this.getProject()).getObjectType(); // "object" as a closest kin to "module"
+      ret = otype.resolveMember(getName());
+    }
+    if (ret == null) {
+      // ...as a builtin symbol
+      PyFile bfile = PyBuiltinCache.getInstance(this.getProject()).getBuiltinsFile();
+      ret = PyResolveUtil.treeCrawlUp(new PyResolveUtil.ResolveProcessor(referencedName), bfile, true); 
+    }
+    if (ret == null) {
+      // if we're under a cap, an external object that we want to use might be also defined below us.
+      // look through all contexts, closest first.
+      PsiElement our_cap = PyResolveUtil.getConcealingParent(this);
+      PyResolveUtil.ResolveProcessor proc = new PyResolveUtil.ResolveProcessor(referencedName); // reusable till first hit
+      if (our_cap != null) {
+        PsiElement cap = our_cap;
+        while (true) {
+          cap = PyResolveUtil.getConcealingParent(cap);
+          if (cap == null) cap = this.getContainingFile();
+          ret = PyResolveUtil.treeCrawlUp(proc, cap, true);
+          if ((ret != null) && !PsiTreeUtil.isAncestor(our_cap, ret, true)) {
+            break;
+          }
+          if (cap instanceof PsiFile) break; // file level, can't try more
+        }
+      }
+    }
+    return ret;
   }
 
   /**
@@ -213,8 +255,13 @@ public class PyReferenceExpressionImpl extends PyElementImpl implements PyRefere
       return new Object[0];
     }
 
+    if (PsiTreeUtil.getParentOfType(this, PyImportElement.class) != null) {
+      // complete to possible modules
+      return ResolveImportUtil.suggestImportVariants(this);
+    }
+
     final PyResolveUtil.VariantsProcessor processor = new PyResolveUtil.VariantsProcessor();
-    PyResolveUtil.treeWalkUp(processor, this, this, null);
+    PyResolveUtil.treeCrawlUp(processor, this);
     return processor.getResult();
   }
 
@@ -262,6 +309,7 @@ public class PyReferenceExpressionImpl extends PyElementImpl implements PyRefere
   }
 
   private boolean isBuiltInConstant() {
+    // TODO: generalize
     String name = getReferencedName();
     return PyNames.NONE.equals(name) || "True".equals(name) || "False".equals(name);
   }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyStarImportElementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyStarImportElementImpl.java
new file mode 100644
index 000000000000..c7892d3411c0
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/impl/PyStarImportElementImpl.java
@@ -0,0 +1,43 @@
+package com.jetbrains.python.psi.impl;
+
+import com.jetbrains.python.psi.PyStarImportElement;
+import com.jetbrains.python.psi.PyElement;
+import com.jetbrains.python.psi.PyFromImportStatement;
+import com.jetbrains.python.psi.PyReferenceExpression;
+import com.intellij.psi.PsiElement;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.lang.ASTNode;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+/**
+ * Simplest PyStarImportElement possible. 
+ * User: dcheryasov
+ * Date: Jul 28, 2008
+ */
+public class PyStarImportElementImpl extends PyElementImpl implements PyStarImportElement {
+
+  public PyStarImportElementImpl(ASTNode astNode) {
+    super(astNode);
+  }
+
+  @NotNull
+  public Iterable<PyElement> iterateNames() {
+    return new ArrayIterable<PyElement>(PyElement.EMPTY_ARRAY);
+  }
+
+  @Nullable
+  public PsiElement getElementNamed(final String the_name) {
+    PyFromImportStatement import_from_stmt = PsiTreeUtil.getParentOfType(this, PyFromImportStatement.class);
+    if (import_from_stmt != null) {
+      PyReferenceExpression from_src = import_from_stmt.getImportSource();
+      // XXX won't work in Jython. Use resolvePythonImport with a mock reference
+      return ResolveImportUtil.resolvePythonImport2(from_src, the_name);
+    }
+    else return null;
+  }
+
+  public boolean mustResolveOutside() {
+    return true; // we don't have children, but... 
+  }
+}
diff --git a/python/src/com/jetbrains/python/psi/impl/ResolveImportUtil.java b/python/src/com/jetbrains/python/psi/impl/ResolveImportUtil.java
index 832ce6daa77d..c650c42818af 100644
--- a/python/src/com/jetbrains/python/psi/impl/ResolveImportUtil.java
+++ b/python/src/com/jetbrains/python/psi/impl/ResolveImportUtil.java
@@ -12,6 +12,10 @@ import com.intellij.psi.PsiManager;
 import com.jetbrains.python.psi.*;
 import org.jetbrains.annotations.Nullable;
 
+import java.util.ArrayList;
+import java.util.Iterator;
+import java.util.List;
+
 /**
  * @author yole
  */
@@ -24,80 +28,101 @@ public class ResolveImportUtil {
   private ResolveImportUtil() {
   }
 
+  /**
+   * Resolves a reference in an import statement into whatever object it refers to.
+   * @param importRef a reference within an import element.
+   * @return the object importRef refers to, or null. 
+   */
   @Nullable
   static PsiElement resolveImportReference(final PyReferenceExpression importRef) {
+    if (importRef == null) return null; // fail fast
     final String referencedName = importRef.getReferencedName();
     if (referencedName == null) return null;
 
-    PsiElement importFrom = null;
-
+    PyReferenceExpression source = null;
     if (importRef.getParent() instanceof PyImportElement) {
       PyImportElement parent = (PyImportElement) importRef.getParent();
       if (parent.getParent() instanceof PyFromImportStatement) {
         PyFromImportStatement stmt = (PyFromImportStatement) parent.getParent();
-        final PyReferenceExpression source = stmt.getImportSource();
+        source =  stmt.getImportSource();
         if (source == null) return null;
-        importFrom = resolveImportReference(source);
       }
     }
 
-    PsiElement result = resolvePythonImport(importRef, importFrom, referencedName);
+    PsiElement result;
+    if (source != null) {
+      result = resolvePythonImport2(source, referencedName);
+    }
+    else result = resolvePythonImport2(importRef, null);
     if (result != null) {
       return result;
     }
-    return resolveForeignImport(importRef, importFrom);
+    return resolveForeignImport(importRef, resolveImportReference(source));
   }
 
+  /**
+   * Resolves either <tt>import foo</tt> or <tt>from foo import bar</tt>.
+   * @param importRef refers to the name of the module being imported (the <tt>foo</tt>).
+   * @param referencedName the name imported from the module (the <tt>bar</tt> in <tt>import from</tt>), or null (for just <tt>import foo</tt>).
+   * @return element the name resolves to, or null.
+   */
   @Nullable
-  private static PsiElement resolvePythonImport(final PyReferenceExpression importRef, final PsiElement importFrom,
-                                                final String referencedName) {
+  public static PsiElement resolvePythonImport2(final PyReferenceExpression importRef, final String referencedName) {
+    final String the_name = referencedName != null? referencedName : importRef.getName();
+    PsiFile containing_file = importRef.getContainingFile();
     /*
-    True resolve order is:
-    - local modules,
-    - builtins? (check),
-    - modules from sys.path (aka SdkOrderEntries).
-    (http://docs.python.org/ref/import.html)
-    */
-    // TODO: assume some things like sys to be only from __builtins__
-    // TODO: rewrite entirely imitating Python import process: global module table, under-initialisation, etc.
-
-    // qualified imports resolve their children    
     final PyExpression qualifier = importRef.getQualifier();
     if (qualifier instanceof PyReferenceExpression) {
+      // resolve qualifier (all of them, recursively)
       PsiElement qualifierElement = ((PyReferenceExpression) qualifier).resolve();
       if (qualifierElement == null) return null;
-      return resolveChild(qualifierElement, referencedName, importRef);
+      //
+      return resolveChild(qualifierElement, the_name, containing_file);
+    }
+    */
+    PsiElement last_resolved = null;
+    List<PyReferenceExpression> ref_path = PyResolveUtil.unwindRefPath(importRef);
+    Iterator<PyReferenceExpression> it = ref_path.iterator();
+    if (ref_path.size() > 1) { // it was a qualified name
+      if (it.hasNext()) {
+        last_resolved = it.next().resolve(); // our topmost qualifier, not ourselves for certain
+      }
+      else return null; // topmost qualifier not found
+      while (it.hasNext()) {
+        last_resolved =  resolveChild(last_resolved, it.next().getName(), containing_file);
+        if (last_resolved == null) return null; // anything in the chain unresolved means that the whole chain fails
+      }
+      if (referencedName != null) {
+        return resolveChild(last_resolved, referencedName, containing_file);
+      }
+      else return last_resolved;
     }
 
-    if (importFrom != null) {
-      return resolveChild(importFrom, referencedName, importRef);
+    // non-qualified name
+    if (referencedName != null) {
+      return resolveChild(importRef.resolve(), referencedName, containing_file);
+      // the importRef.resolve() does not recurse infinitely because we're asked to resolve referencedName, not importRef itself  
     }
-    
     // unqualified import can be found:
     // in the same dir
     final PsiFile pfile = importRef.getContainingFile();
     if (pfile != null) {
       PsiDirectory pdir = pfile.getContainingDirectory();
       if (pdir != null) {
-        PsiElement elt = resolveChild(pdir, referencedName, importRef);
+        PsiElement elt = resolveChild(pdir, the_name, null);
         if (elt != null) return elt;
       }
-      
-    } 
-    
+
+    }
+
     // .. or in SDK roots
     final Module module = ModuleUtil.findModuleForPsiElement(importRef);
     if (module != null) {
       RootPolicy<PsiElement> resolvePolicy = new RootPolicy<PsiElement>() {
-        /*         
-        public PsiElement visitModuleSourceOrderEntry(final ModuleSourceOrderEntry moduleOrderEntry, final PsiElement value) {
-          if (value != null) return value;
-          return resolveInRoots(moduleOrderEntry.getRootModel().getContentRoots(), referencedName, importRef);
-        }
-        */
+        @Nullable
         public PsiElement visitJdkOrderEntry(final JdkOrderEntry jdkOrderEntry, final PsiElement value) {
           if (value != null) return value;
-          return resolveInRoots(jdkOrderEntry.getRootFiles(OrderRootType.SOURCES), referencedName, importRef);
+          return resolveInRoots(jdkOrderEntry.getRootFiles(OrderRootType.SOURCES), the_name, importRef);
         }
       };
       return ModuleRootManager.getInstance(module).processOrder(resolvePolicy, null);
@@ -108,17 +133,19 @@ public class ResolveImportUtil {
               importRef.getContainingFile().getVirtualFile()
           )
         ) {
-          PsiElement elt = resolveInRoots(entry.getFiles(OrderRootType.CLASSES), referencedName, importRef);
+          PsiElement elt = resolveInRoots(entry.getFiles(OrderRootType.CLASSES), the_name, importRef);
           if (elt != null) return elt;
         }
       }
       catch (NullPointerException ex) {
-        return null;
+        return null; // any cut corners migt result in an NPE; resolution fails, but not the IDE.
       }
     }
-    return null; // normally unreachable
+    return null; // not resolved by any means
   }
 
+
+
   @Nullable
   private static PsiElement resolveForeignImport(final PyReferenceExpression importRef, final PsiElement importFrom) {
     for(PyImportResolver resolver: Extensions.getExtensions(PyImportResolver.EP_NAME)) {
@@ -163,18 +190,18 @@ public class ResolveImportUtil {
   }
 
   /**
-  Tries to find referencedName under the parent element. Used to reesolve any names that look imported.
+  Tries to find referencedName under the parent element. Used to resolve any names that look imported.
   Parent might happen to be a PyFile(__init__.py), then it is treated <i>both</i> as a file and as ist base dir.
   For details of this ugly magic, see {@link com.jetbrains.python.psi.impl.PyReferenceExpressionImpl#resolve()}.
-  @param parent element under which to look for referenced name.
-  @param referencedName which name to look for.
-  @param importRef import reference which resolution led to this call.
+   @param parent element under which to look for referenced name.
+    * @param referencedName which name to look for.
+   * @param containingFile
   @return the element the referencedName resolves to, or null.
   @todo: Honor module's __all__ value.
   @todo: Honor package's __path__ value (hard).
   */
   @Nullable
-  public static PsiElement resolveChild(final PsiElement parent, final String referencedName, final PyReferenceExpression importRef) {
+  public static PsiElement resolveChild(final PsiElement parent, final String referencedName, final PsiFile containingFile) {
     PsiDirectory dir = null;
     PsiElement ret = null;
     PyResolveUtil.ResolveProcessor processor = null;
@@ -190,7 +217,8 @@ public class ResolveImportUtil {
         */
         // look for name in the file:
         processor = new PyResolveUtil.ResolveProcessor(referencedName);
-        ret = PyResolveUtil.treeWalkUp(processor, parent, null, importRef);
+        //ret = PyResolveUtil.treeWalkUp(processor, parent, null, importRef);
+        ret = PyResolveUtil.treeCrawlUp(processor, parent, true);
         if (ret != null) return ret;
       }
       else { // the file was a fake __init__.py covering a reference to dir
@@ -207,13 +235,46 @@ public class ResolveImportUtil {
       if (subdir != null) return subdir;
       else { // not a subdir, not a file; could be a name in parent/__init__.py
         final PsiFile initPy = dir.findFile(INIT_PY);
-        if ((importRef != null) && (initPy == importRef.getContainingFile())) return ret; // don't dive into the file we're in
+        if (initPy == containingFile) return ret; // don't dive into the file we're in
         if (initPy != null) {
           if (processor == null) processor = new PyResolveUtil.ResolveProcessor(referencedName); // should not normally happen 
-          return PyResolveUtil.treeWalkUp(processor, initPy, null, importRef);
+          return PyResolveUtil.treeCrawlUp(processor, initPy, true);//PyResolveUtil.treeWalkUp(processor, initPy, null, importRef);
         }
       }
     }
     return ret;
   }
+
+
+  /**
+   * Finds reasonable names to import to complete a patrial name.
+   * @param partial_ref reference containing the partial name.
+   * @return an array of names ready for gtVariants().
+   */
+  public static String[] suggestImportVariants(PyReferenceExpression partial_ref) {
+    List<String> variants = new ArrayList<String>();
+    String prefix_u = partial_ref.getNode().getText().toUpperCase(); // we try case-insensitively
+    //
+    // look at current dir
+    final VirtualFile pfile = partial_ref.getContainingFile().getVirtualFile();
+    if (pfile != null) {
+      VirtualFile pdir = pfile.getParent();
+      _siftDir(pdir, prefix_u, variants, pfile) ;
+    }
+    // look in SDK
+    // TODO: implement, reusing resolver code
+    return variants.toArray(new String[variants.size()]); 
+  }
+
+   static void _siftDir(VirtualFile pdir, String prefix, List<String> variants, VirtualFile pfile) {
+     if (pdir != null) {
+       for (VirtualFile a_file : pdir.getChildren()) {
+         // TODO: check extensions, chack subdirs with __init__.py
+         if ((a_file != pfile) && (a_file.getName().toUpperCase().startsWith(prefix))) {
+           variants.add(a_file.getName());
+         }
+       }
+     }
+   }
+
 }
diff --git a/python/src/com/jetbrains/python/validation/StringConstantAnnotator.java b/python/src/com/jetbrains/python/validation/StringConstantAnnotator.java
index ed9161e057ea..392c71571e84 100644
--- a/python/src/com/jetbrains/python/validation/StringConstantAnnotator.java
+++ b/python/src/com/jetbrains/python/validation/StringConstantAnnotator.java
@@ -10,7 +10,7 @@ import com.jetbrains.python.psi.PyStringLiteralExpression;
  */
 public class StringConstantAnnotator extends PyAnnotator {
   public static final String MISSING_Q = "Missing closing quote";
-  public static final String PREMATURE_Q = "Premature closing quote";
+  //public static final String PREMATURE_Q = "Premature closing quote";
   public void visitPyStringLiteralExpression(final PyStringLiteralExpression node) {
     String s = node.getText();
     String msg = "";
@@ -34,11 +34,15 @@ public class StringConstantAnnotator extends PyAnnotator {
         char c = s.charAt(index);
         if (esc) esc = false;
         else {
-          if (c  == first_quote) { // impossible with current lexer, but who knows :)
+          if (c != first_quote) {
+            if (c  == '\\') esc = true;
+          }
+          /*
+          else { // impossible with current lexer, but who knows :)
             msg = PREMATURE_Q + " [" + first_quote  + "]";
             ok = false;
           }
-          else if (c  == '\\') esc = true;
+          */
         }
         index += 1;
       }
diff --git a/python/testData/resolve/LookAhead.py b/python/testData/resolve/LookAhead.py
index 42b460ea43fd..293dd3fee90d 100644
--- a/python/testData/resolve/LookAhead.py
+++ b/python/testData/resolve/LookAhead.py
@@ -1,5 +1,4 @@
-g<ref>gg("q")
+def f():
+  return f<ref>oo
 
-def f(q): pass
-
-ggg = f
+foo = 1
\ No newline at end of file
diff --git a/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/__init__.py b/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/__init__.py
index e69de29bb2d1..e076cfbb59a6 100644
--- a/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/__init__.py
+++ b/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/__init__.py
@@ -0,0 +1 @@
+# obligatory
diff --git a/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/child/__init__.py b/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/child/__init__.py
new file mode 100644
index 000000000000..e076cfbb59a6
--- /dev/null
+++ b/python/testData/resolve/multiFile/fromQualifiedPackageImportFile/mypackage/child/__init__.py
@@ -0,0 +1 @@
+# obligatory