diff --git a/BUGS b/BUGS
index a4bb75c..37ade08 100644
--- a/BUGS
+++ b/BUGS
@@ -1,3 +1,7 @@
+2007/07/12:
+sometimes searching seems to save the wrong cursor position, or not overwrite
+the previously used one.
+
 2006/07/04:
 undo/redo should probably show you what is being undone (i.e. by jumping to that
 region of code).
diff --git a/mode_search.py b/mode_search.py
index 155cc8e..1646c8c 100644
--- a/mode_search.py
+++ b/mode_search.py
@@ -117,12 +117,12 @@ class InsertSearchString(method.Method):
         w.insert_string_at_cursor(self.string)
         s = w.buffer.make_string()
         if not s:
+            w.application.clear_highlighted_ranges()
             return
         else:
-            s  = w.buffer.make_string()
-            w2 = w.buffer.method.old_window
             try:
                 r  = _make_regex(w, s)
+                w2 = w.buffer.method.old_window
                 if w.buffer.method.direction == 'next':
                     search.find_next(r, w2, move=False)
                 else:
diff --git a/mode_sh.py b/mode_sh.py
index c2e7b33..1a801a0 100644
--- a/mode_sh.py
+++ b/mode_sh.py
@@ -3,31 +3,32 @@ from lex2 import Grammar, PatternRule, RegionRule
 
 class StringGrammar(Grammar):
     rules = [
-        PatternRule(name=r'escaped', pattern=r'\\.'),
-        PatternRule(name=r'variable', pattern=r"(?:^|(?<= ))[a-zA-Z_][a-zA-Z_][a-zA-Z0-9_]*(?==)"),
-        PatternRule(name=r'variable', pattern=r"\${(?:[a-zA-Z0-9_]+|\?\$)}"),
-        PatternRule(name=r"variable", pattern=r"\$[^({][a-zA-Z0-9_]*"),
-        PatternRule(name=r'variable', pattern=r"\$(?=\()"),
+        PatternRule(r'escaped', r'\\.'),
+        PatternRule(r'variable', r"\${(?:[a-zA-Z0-9_]+|\?\$)}"),
+        PatternRule(r"variable", r"\$[^({][a-zA-Z0-9_]*"),
+        PatternRule(r'variable', r"\$(?=\()"),
     ]
 
 class ShGrammar(Grammar):
     rules = [
-        PatternRule(name=r'function', pattern=r'[a-zA-Z_][a-zA-Z0-9_]*(?= *\(\))'),
-        PatternRule(name=r'reserved', pattern=r"(?:case|done|do|elif|else|esac|fi|for|function|if|in|select|then|until|while|time)(?![a-zA-Z0-9_=/])"),
-        PatternRule(name=r'builtin', pattern=r"(?:source|alias|bg|bind|break|builtin|cd|command|compgen|complete|declare|dirs|disown|echo|enable|eval|exec|exit|export|fc|fg|getops|hash|help|history|jobs|kill|let|local|logout|popd|printf|pushd|pwd|readonly|read|return|set|shift|shopt|suspend|test|times|trap|type|ulimit|umask|unalias|unset|wait)(?![a-zA-Z0-9_=/])"),
-        PatternRule(name=r'operator', pattern=r"(?:-eq|-ne|-gt|-lt|-ge|-le| = | != )"),
-        PatternRule(name=r'delimiter', pattern=r"[][\(\);\{\}|&><]"),
-        RegionRule(name=r'eval2', start=r'\$\(', grammar=None, end=r'\)'),
-        PatternRule(name=r'variable', pattern=r"(?:^|(?<= ))[a-zA-Z_][a-zA-Z_][a-zA-Z0-9_]*(?==)"),
-        PatternRule(name=r'variable', pattern=r"\${(?:[a-zA-Z0-9_]+|\?\$)}"),
-        PatternRule(name=r"variable", pattern=r"\$[^({][a-zA-Z0-9_]*"),
-        PatternRule(name=r'variable', pattern=r"\$(?=\()"),
-        RegionRule(name=r'eval', start='`', grammar=StringGrammar(), end='`'),
-        RegionRule(name=r'string', start="'", grammar=Grammar(), end="'"),
-        RegionRule(name=r'string', start='"', grammar=StringGrammar(), end='"'),
-        PatternRule(name=r'continuation', pattern=r'\\(?= *$)'),
-        PatternRule(name=r'comment', pattern=r'#.*$'),
-        PatternRule(name=r'bareword', pattern=r'[a-zA-Z0-9_-]+'),
+        PatternRule(r'function', r'[a-zA-Z_][a-zA-Z0-9_]*(?= *\(\))'),
+        PatternRule(r'reserved', r"(?:case|done|do|elif|else|esac|fi|for|function|if|in|select|then|until|while|time)(?![a-zA-Z0-9_=/])"),
+        PatternRule(r'builtin', r"(?:source|alias|bg|bind|break|builtin|cd|command|compgen|complete|declare|dirs|disown|echo|enable|eval|exec|exit|export|fc|fg|getops|hash|help|history|jobs|kill|let|local|logout|popd|printf|pushd|pwd|readonly|read|return|set|shift|shopt|suspend|test|times|trap|type|ulimit|umask|unalias|unset|wait)(?![a-zA-Z0-9_=/])"),
+        PatternRule(r'operator', r"(?:-eq|-ne|-gt|-lt|-ge|-le| = | != )"),
+        PatternRule(r'delimiter', r"[][\(\);\{\}|&><]"),
+        RegionRule(r'eval', '`', StringGrammar, '`'),
+        #RegionRule(r'eval2', r'\$\(', None, r'\)'),
+        RegionRule(r'eval2', r'\$\(', StringGrammar, r'\)'),
+        PatternRule(r'variable', r"(?:^|(?<= ))[a-zA-Z_][a-zA-Z_][a-zA-Z0-9_]*(?==)"),
+        PatternRule(r'variable', r"\${(?:[a-zA-Z0-9_]+|\?\$)}"),
+        PatternRule(r"variable", r"\$[^({][a-zA-Z0-9_]*"),
+        PatternRule(r'variable', r"\$(?=\()"),
+        RegionRule(r'string', "'", Grammar(), "'"),
+        RegionRule(r'string', '"', StringGrammar, '"'),
+        PatternRule(r'comment', r'#.*$'),
+        PatternRule(r'bareword', r'[a-zA-Z0-9_-]+'),
+        PatternRule(r'continuation', r'\\\n$'),
+        PatternRule(r'eol', r'\n$'),
     ]
 
 class Sh(mode2.Fundamental):
@@ -39,19 +40,27 @@ class Sh(mode2.Fundamental):
             'function':        color.build('magenta', 'default', 'bold'),
             'reserved':        color.build('magenta', 'default', 'bold'),
             'variable':        color.build('yellow', 'default', 'bold'),
+
             'delimiter':       color.build('default', 'default', 'bold'),
             'operator':        color.build('magenta', 'default', 'bold'),
-            'redirection':     color.build('blue', 'default', 'bold'),
+
             'string.start':    color.build('green', 'default'),
             'string.variable': color.build('yellow', 'default'),
             'string.null':     color.build('green', 'default'),
             'string.end':      color.build('green', 'default'),
+
             'eval.start':      color.build('cyan', 'default'),
             'eval.variable':   color.build('yellow', 'default'),
             'eval.null':       color.build('cyan', 'default'),
             'eval.end':        color.build('cyan', 'default'),
-            'eval2.start':     color.build('cyan', 'default'),
-            'eval2.end':       color.build('cyan', 'default'),
+
+            #'eval2.start':      color.build('cyan', 'default'),
+            #'eval2.end':        color.build('cyan', 'default'),
+            'eval2.start':      color.build('yellow', 'default'),
+            'eval2.variable':   color.build('yellow', 'default'),
+            'eval2.null':       color.build('cyan', 'default'),
+            'eval2.end':        color.build('yellow', 'default'),
+
             'comment':         color.build('red', 'default'),
             'continuation':    color.build('red', 'default'),
         }