diff --git a/Global.cpp b/Global.cpp
index f1c3c62..3cc227e 100644
--- a/Global.cpp
+++ b/Global.cpp
@@ -37,24 +37,22 @@ namespace jet {
       sessions.erase(sessionId);
    }
 
-   coreutils::ZString Global::getVariable(coreutils::ZString &variable) {
+   coreutils::ZString Global::getVariable(coreutils::ZString &variable, std::map<coreutils::ZString, coreutils::MString> &variables) {
       if(variable.ifNext("$[")) {
 	 coreutils::MString name;
 	 coreutils::MString modifier;
 	 if(variable.ifNext("!")) {
-	    return variables[renderVariableName(variable, name, modifier)];
+	    renderVariableName(variable, name, modifier, variables);
+	    return variables[name];
 	 } if(variable.ifNext(":")) {
 	    // TODO: should only allow CGI variable name. Allow variable substitution.
 	 } if(variable.ifNext("@")) {
-	    // TODO: should only allow environment variables. Allow substitution.
-	 } if(variable.ifNext("$")) {
-	    return getenv(renderVariableName(variable, name, modifier).c_str());
+	    // TODO: should only allow session variables. Allow substitution.
+	 } if(variable.ifNext("%")) {
+	    renderVariableName(variable, name, modifier, variables);
+	    return getenv(name.c_str());
 	 } else {
-	    renderVariableName(variable, name, modifier);
-	    if(!variable.ifNext("]")) {
-	       std::cout << "unparsed: " << variable.unparsed() << std::endl;
-	       throw coreutils::Exception("expecting ] to close variable name.");
-	    }
+	    renderVariableName(variable, name, modifier, variables);
 	    name.split(".");
 	    if(name.getList().size() == 1)
 	      return variables[name[0]];
@@ -69,18 +67,23 @@ namespace jet {
       throw coreutils::Exception("Expecting a variable initializer ('$[' or '#[').");
    }
 
-   coreutils::MString Global::renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier) {
-      name << variable.getTokenInclude("ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789._-");
-      if(variable.ifNext("]"));
-      else if(variable.ifNext(";")) {	   
-	 modifier = renderVariableName(variable, modifier, modifier);
-      }      
-      else if(variable.startsWith("$[")) {	   
-	 name << getVariable(variable);
-      }
-      return name;
+   void Global::renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier, std::map<coreutils::ZString, coreutils::MString> &variables) {
+      while(!variable.ifNext("]")) {	       
+	 name << variable.getTokenInclude("ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789._-");
+	 if(variable.ifNext(";")) {	   
+	    renderVariableName(variable, modifier, modifier, variables);
+	    return;
+	 }      
+	 else if(variable.startsWith("$[")) {	   
+	    name << getVariable(variable, variables);	    
+	 }
+	 else if(variable.startsWith("#[")) {	   
+	    name << getVariable(variable, variables);	    
+	 }
+      }	    
+      return;
    }
-
+      
    __mysql * Global::getSession(coreutils::MString sessionId) {
       if(sessions.find(sessionId) == sessions.end())
 	throw coreutils::Exception("requested session is not available.");
diff --git a/Global.h b/Global.h
index bad9292..4b03cca 100644
--- a/Global.h
+++ b/Global.h
@@ -18,8 +18,8 @@ namespace  jet {
       bool sessionExists(coreutils::MString sessionId);
       void addSession(coreutils::MString sessionId, __mysql *mysql);
       void removeSession(coreutils::MString sessionId);
-      coreutils::ZString getVariable(coreutils::ZString &variable);
-      coreutils::MString renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier);
+      coreutils::ZString getVariable(coreutils::ZString &variable, std::map<coreutils::ZString, coreutils::MString> &variables);
+      void renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier, std::map<coreutils::ZString, coreutils::MString> &variables);
       __mysql * getSession(coreutils::MString sessionId);
       coreutils::ZString getSessionVariable(coreutils::MString &splitName);
       void outputHeaders();
diff --git a/KeywordValue.cpp b/KeywordValue.cpp
index c4c21f5..eebf8d7 100644
--- a/KeywordValue.cpp
+++ b/KeywordValue.cpp
@@ -3,10 +3,10 @@
 
 namespace jet {
 
-   KeywordValue::KeywordValue(coreutils::ZString data, Global &global) : MString() {
+   KeywordValue::KeywordValue(coreutils::ZString data, Global &global, std::map<coreutils::ZString, coreutils::MString> &variables) : MString() {
       while(!data.eod()) {
-	 if(data.startsWith("$[")) {
-	    write(global.getVariable(data));
+	 if(data.startsWith("$[") || data.startsWith("#[")) {
+	    write(global.getVariable(data, variables));
 	 } else {
 	    write(data.charAt(0));
 	    data.nextChar();
diff --git a/KeywordValue.h b/KeywordValue.h
index 3b98484..0fb0d71 100644
--- a/KeywordValue.h
+++ b/KeywordValue.h
@@ -13,7 +13,7 @@ namespace  jet {
    class KeywordValue : public coreutils::MString {
 
     public:
-      KeywordValue(coreutils::ZString data, Global &global);
+      KeywordValue(coreutils::ZString data, Global &global, std::map<coreutils::ZString, coreutils::MString> &variables);
       virtual ~KeywordValue();
    };
 
diff --git a/Tag.cpp b/Tag.cpp
index 923a588..296ed1f 100644
--- a/Tag.cpp
+++ b/Tag.cpp
@@ -46,7 +46,7 @@ namespace jet {
 		 if(!finished) {
 		    coreutils::ZString keywordName = in.getTokenInclude("ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_");
 		    if(in.ifNext("=\"")) {
-		       variables[keywordName] = KeywordValue(in.getTokenExclude("\""), global);
+		       variables[keywordName] = KeywordValue(in.getTokenExclude("\""), global, variables);
 		    }
 		    if(!in.ifNext("\"")) {}
 		 }
@@ -163,14 +163,8 @@ namespace jet {
 	       out.write(in.charAt(0));
 	       in.nextChar();
 	    }  
-	 } else if(in.ifNext("#[")) {
-	    coreutils::MString varName = in.getTokenInclude("ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_");
-	    if(in.ifNext("]")) 
-	      out.write(variables[varName]);
-	    else
-	      throw coreutils::Exception("Local variable name has a syntax error.");
-	 } else if(in.startsWith("$[")) {	    
-	    out.write(global.getVariable(in));
+	 } else if(in.startsWith("$[") || in.startsWith("#[")) {	    
+	    out.write(global.getVariable(in, variables));
 	 } else {
 	    out.write(in.charAt(0));
 	    in.nextChar();
diff --git a/jet-2.0 b/jet-2.0
index 6e6b7e6..b1ecff4 100755
Binary files a/jet-2.0 and b/jet-2.0 differ
diff --git a/testjet.jet b/testjet.jet
index e9b98d0..f1c97cf 100755
--- a/testjet.jet
+++ b/testjet.jet
@@ -5,9 +5,9 @@
  <html>
  ---
  <set name="modified1" value="ABCD" />
- $[modified1;TOHEX]
+ $[modified1]
  <set name="tohex" value="TOHEX" />
- $[modified1;$[tohex]]
+ $[modified1]
  ---
  $[nonexistant]
  $[$HOME]
diff --git a/testvar.jet b/testvar.jet
new file mode 100755
index 0000000..69d8a7e
--- /dev/null
+++ b/testvar.jet
@@ -0,0 +1,16 @@
+#!./jet-2.0
+<jet filterblanklines="true" trimlines="true">
+<set name="ix" value="1" />
+<set name="letterx" value="x" />
+<set name="var1" value="this is a test" />
+<set name="1var1" value="This is another test" />
+<set name="var1var" value="Yet another test" />
+<set name="var11" value="it seems to work." />
+$[$[ix]var$[ix]]
+$[var$[ix]]
+$[var$[ix]var]
+$[var$[i$[letterx]]var]
+$[letterx;TOHEX]
+$[var$[i$[letterx]]$[ix]]
+$[var$[i$[letterx]]$[i$[letterx]]]
+</jet>