diff --git a/CONTRIBUTING.markdown b/CONTRIBUTING.md
similarity index 100%
rename from CONTRIBUTING.markdown
rename to CONTRIBUTING.md
diff --git a/README.markdown b/README.md
similarity index 100%
rename from README.markdown
rename to README.md
diff --git a/composer.json b/composer.json
index ebf9541..2969d03 100644
--- a/composer.json
+++ b/composer.json
@@ -15,6 +15,9 @@
     "require": {
         "php": ">=5.2.4"
     },
+    "require-dev": {
+        "phpunit/phpunit": "*"
+    },
     "autoload": {
         "psr-0": { "Mustache": "src/" }
     }
diff --git a/src/Mustache/Autoloader.php b/src/Mustache/Autoloader.php
index df48536..2a209dd 100644
--- a/src/Mustache/Autoloader.php
+++ b/src/Mustache/Autoloader.php
@@ -25,9 +25,15 @@ class Mustache_Autoloader
     public function __construct($baseDir = null)
     {
         if ($baseDir === null) {
-            $this->baseDir = dirname(__FILE__).'/..';
+            $baseDir = dirname(__FILE__).'/..';
+        }
+
+        // realpath doesn't always work, for example, with stream URIs
+        $realDir = realpath($baseDir);
+        if (is_dir($realDir)) {
+            $this->baseDir = $realDir;
         } else {
-            $this->baseDir = rtrim($baseDir, '/');
+            $this->baseDir = $baseDir;
         }
     }
 
diff --git a/src/Mustache/Compiler.php b/src/Mustache/Compiler.php
index 437ea2c..a30e6f5 100644
--- a/src/Mustache/Compiler.php
+++ b/src/Mustache/Compiler.php
@@ -189,7 +189,7 @@ class Mustache_Compiler
                 $source = %s;
                 $buffer .= $this->mustache
                     ->loadLambda((string) call_user_func($value, $source, $this->lambdaHelper)%s)
-                    ->renderInternal($context, $indent);
+                    ->renderInternal($context);
             } elseif (!empty($value)) {
                 $values = $this->isIterable($value) ? $value : array($value);
                 foreach ($values as $value) {
diff --git a/src/Mustache/Engine.php b/src/Mustache/Engine.php
index 9869b98..5bf9c4d 100644
--- a/src/Mustache/Engine.php
+++ b/src/Mustache/Engine.php
@@ -23,7 +23,7 @@
  */
 class Mustache_Engine
 {
-    const VERSION        = '2.4.0';
+    const VERSION        = '2.4.1';
     const SPEC_VERSION   = '1.1.2';
 
     const PRAGMA_FILTERS = 'FILTERS';
diff --git a/test/Mustache/Test/FiveThree/Functional/PartialLambdaIndentTest.php b/test/Mustache/Test/FiveThree/Functional/PartialLambdaIndentTest.php
new file mode 100644
index 0000000..647905f
--- /dev/null
+++ b/test/Mustache/Test/FiveThree/Functional/PartialLambdaIndentTest.php
@@ -0,0 +1,59 @@
+<?php
+
+/*
+ * This file is part of Mustache.php.
+ *
+ * (c) 2013 Justin Hileman
+ *
+ * For the full copyright and license information, please view the LICENSE
+ * file that was distributed with this source code.
+ */
+
+/**
+ * @group lambdas
+ * @group functional
+ */
+class Mustache_Test_FiveThree_Functional_PartialLambdaIndentTest extends PHPUnit_Framework_TestCase
+{
+
+    public function testLambdasInsidePartialsAreIndentedProperly()
+    {
+        $src = <<<EOS
+<fieldset>
+  {{> input }}
+</fieldset>
+
+EOS;
+        $partial = <<<EOS
+<input placeholder="{{# _t }}Enter your name{{/ _t }}">
+
+EOS;
+
+        $expected = <<<EOS
+<fieldset>
+  <input placeholder="ENTER YOUR NAME">
+</fieldset>
+
+EOS;
+
+        $m = new Mustache_Engine(array(
+            'partials' => array('input' => $partial)
+        ));
+
+        $tpl = $m->loadTemplate($src);
+
+
+        $data = new Mustache_Test_Functional_ClassWithLambda();
+        $this->assertEquals($expected, $tpl->render($data));
+    }
+}
+
+class Mustache_Test_Functional_ClassWithLambda
+{
+    public function _t()
+    {
+        return function($val) {
+            return strtoupper($val);
+        };
+    }
+}
diff --git a/test/Mustache/Test/Loader/FilesystemLoaderTest.php b/test/Mustache/Test/Loader/FilesystemLoaderTest.php
index 3c7b2f4..3aa83fd 100644
--- a/test/Mustache/Test/Loader/FilesystemLoaderTest.php
+++ b/test/Mustache/Test/Loader/FilesystemLoaderTest.php
@@ -29,6 +29,15 @@ class Mustache_Test_Loader_FilesystemLoaderTest extends PHPUnit_Framework_TestCa
         $this->assertEquals('one contents', $loader->load('one'));
     }
 
+    public function testConstructorWithProtocol()
+    {
+        $baseDir = realpath(dirname(__FILE__).'/../../../fixtures/templates');
+
+        $loader = new Mustache_Loader_FilesystemLoader('file://' . $baseDir, array('extension' => '.ms'));
+        $this->assertEquals('alpha contents', $loader->load('alpha'));
+        $this->assertEquals('beta contents', $loader->load('beta.ms'));
+    }
+
     public function testLoadTemplates()
     {
         $baseDir = realpath(dirname(__FILE__).'/../../../fixtures/templates');