diff --git a/Global.cpp b/Global.cpp
index 3cc227e..7f51b76 100644
--- a/Global.cpp
+++ b/Global.cpp
@@ -37,22 +37,22 @@ namespace jet {
       sessions.erase(sessionId);
    }
 
-   coreutils::ZString Global::getVariable(coreutils::ZString &variable, std::map<coreutils::ZString, coreutils::MString> &variables) {
+   coreutils::ZString Global::getVariable(coreutils::ZString &variable, std::map<coreutils::ZString, coreutils::MString> &lvariables) {
       if(variable.ifNext("$[")) {
 	 coreutils::MString name;
 	 coreutils::MString modifier;
 	 if(variable.ifNext("!")) {
-	    renderVariableName(variable, name, modifier, variables);
+	    renderVariableName(variable, name, modifier, lvariables);
 	    return variables[name];
 	 } if(variable.ifNext(":")) {
 	    // TODO: should only allow CGI variable name. Allow variable substitution.
 	 } if(variable.ifNext("@")) {
 	    // TODO: should only allow session variables. Allow substitution.
 	 } if(variable.ifNext("%")) {
-	    renderVariableName(variable, name, modifier, variables);
+	    renderVariableName(variable, name, modifier, lvariables);
 	    return getenv(name.c_str());
 	 } else {
-	    renderVariableName(variable, name, modifier, variables);
+	    renderVariableName(variable, name, modifier, lvariables);
 	    name.split(".");
 	    if(name.getList().size() == 1)
 	      return variables[name[0]];
@@ -60,25 +60,26 @@ namespace jet {
 	 }
 	 throw coreutils::Exception("expected variable name or type designator.");	 
       } if(variable.ifNext("#[")) {
-	 // TODO: this local variable type has no special naming conventions. We
-	 // just need to do nested variable substitution for the entry.
-	 
+	 coreutils::MString name;
+	 coreutils::MString modifier;
+	 renderVariableName(variable, name, modifier, lvariables);
+	 return lvariables[name];	 
       }
       throw coreutils::Exception("Expecting a variable initializer ('$[' or '#[').");
    }
 
-   void Global::renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier, std::map<coreutils::ZString, coreutils::MString> &variables) {
+   void Global::renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier, std::map<coreutils::ZString, coreutils::MString> &lvariables) {
       while(!variable.ifNext("]")) {	       
 	 name << variable.getTokenInclude("ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789._-");
 	 if(variable.ifNext(";")) {	   
-	    renderVariableName(variable, modifier, modifier, variables);
+	    renderVariableName(variable, modifier, modifier, lvariables);
 	    return;
 	 }      
 	 else if(variable.startsWith("$[")) {	   
-	    name << getVariable(variable, variables);	    
+	    name << getVariable(variable, lvariables);	    
 	 }
 	 else if(variable.startsWith("#[")) {	   
-	    name << getVariable(variable, variables);	    
+	    name << getVariable(variable, lvariables);	    
 	 }
       }	    
       return;
diff --git a/Global.h b/Global.h
index 4b03cca..fcea707 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, 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);
+      coreutils::ZString getVariable(coreutils::ZString &variable, std::map<coreutils::ZString, coreutils::MString> &lvariables);
+      void renderVariableName(coreutils::ZString &variable, coreutils::MString &name, coreutils::MString &modifier, std::map<coreutils::ZString, coreutils::MString> &lvariables);
       __mysql * getSession(coreutils::MString sessionId);
       coreutils::ZString getSessionVariable(coreutils::MString &splitName);
       void outputHeaders();
diff --git a/jet-2.0 b/jet-2.0
index b1ecff4..50831b3 100755
Binary files a/jet-2.0 and b/jet-2.0 differ
diff --git a/testjet.jet b/testjet.jet
index f1c97cf..78fbacd 100755
--- a/testjet.jet
+++ b/testjet.jet
@@ -10,7 +10,7 @@
  $[modified1]
  ---
  $[nonexistant]
- $[$HOME]
+ $[%HOME]
  <comment>
  <mysql host="barant.com" database="barant" user="barant" password="uversa1960" sessionid="1">
   <sql sessionid="1">select * from testdata</sql>