diff --git a/kernel/src/main/scala/state/State.scala b/kernel/src/main/scala/state/State.scala
index 8967ed3dd8..e49ffb25d6 100644
--- a/kernel/src/main/scala/state/State.scala
+++ b/kernel/src/main/scala/state/State.scala
@@ -11,6 +11,8 @@ import org.codehaus.aspectwerkz.proxy.Uuid
 
 import scala.collection.mutable.{ArrayBuffer, HashMap}
 
+import org.multiverse.standard.manuallyinstrumented.Ref
+
 sealed abstract class TransactionalStateConfig
 abstract class PersistentStorageConfig  extends TransactionalStateConfig
 case class CassandraStorageConfig extends PersistentStorageConfig
@@ -70,10 +72,6 @@ trait Transactional {
   // FIXME: won't work across the cluster
   val uuid = Uuid.newUuid.toString
 
-  private[kernel] def begin
-  private[kernel] def commit
-  private[kernel] def rollback
-
   protected def verifyTransaction = {
     val cflowTx = TransactionManagement.threadBoundTx.get
     if (!cflowTx.isDefined) {
@@ -103,62 +101,32 @@ trait TransactionalMap[K, V] extends Transactional with scala.collection.mutable
  * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
  */
 class InMemoryTransactionalMap[K, V] extends TransactionalMap[K, V] {
-  protected[kernel] var state = new HashTrie[K, V]
-  protected[kernel] var snapshot = state
-
-  // ---- For Transactional ----
-  override def begin = snapshot = state
-  override def commit = snapshot = state
-  override def rollback = state = snapshot
+  protected[this] var ref = new TransactionalRef(new HashTrie[K, V])
 
   // ---- Overriding scala.collection.mutable.Map behavior ----
-  override def contains(key: K): Boolean = {
-    verifyTransaction
-    state.contains(key)
-  }
+  override def contains(key: K): Boolean = ref.get.contains(key)
 
-  override def clear = {
-    verifyTransaction
-    state = new HashTrie[K, V]
-  }
+  override def clear = ref.set(new HashTrie[K, V])
 
-  override def size: Int = {
-    verifyTransaction
-    state.size
-  }
+  override def size: Int = ref.get.size
 
   // ---- For scala.collection.mutable.Map ----
-  override def remove(key: K) = {
-    verifyTransaction
-    state = state - key
-  }
+  override def remove(key: K) = ref.set(ref.get - key)
 
-  override def elements: Iterator[(K, V)] = {
-//    verifyTransaction
-    state.elements
-  }
-
-  override def get(key: K): Option[V] = {
-    verifyTransaction
-    state.get(key)
-  }
+  override def elements: Iterator[(K, V)] = ref.get.elements
+ 
+  override def get(key: K): Option[V] = ref.get.get(key)
 
   override def put(key: K, value: V): Option[V] = {
-    verifyTransaction
-    val oldValue = state.get(key)
-    state = state.update(key, value)
+    val map = ref.get
+    val oldValue = map.get(key)
+    ref.set(map.update(key, value))
     oldValue
   }
 
-  override def -=(key: K) = {
-    verifyTransaction
-    remove(key)
-  }
+  override def -=(key: K) = remove(key)
 
-  override def update(key: K, value: V) = {
-    verifyTransaction
-    put(key, value)
-  }
+  override def update(key: K, value: V) = put(key, value)
 }
 
 /**
@@ -176,10 +144,9 @@ abstract class PersistentTransactionalMap[K, V] extends TransactionalMap[K, V] {
 
   def getRange(start: Int, count: Int)
 
-  // ---- For Transactional ----
-  override def begin = {}
-
-  override def rollback = changeSet.clear
+  def begin
+  def commit
+  def rollback = changeSet.clear
  
   // ---- For scala.collection.mutable.Map ----
   override def put(key: K, value: V): Option[V] = {
@@ -305,16 +272,15 @@ abstract class TransactionalVector[T] extends Transactional with RandomAccessSeq
  * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
  */
 class InMemoryTransactionalVector[T] extends TransactionalVector[T] {
-  private[kernel] var state: Vector[T] = EmptyVector
-  private[kernel] var snapshot = state
+  private[kernel] var state = new Ref[Vector[T]](EmptyVector) 
 
   def add(elem: T) = {
-    verifyTransaction
-    state = state + elem
+    state.get.set(elem) 
   }
 
   def get(index: Int): T = {
-    verifyTransaction
+
+
     state(index)
   }
 
@@ -427,55 +393,52 @@ class CassandraPersistentTransactionalVector extends PersistentTransactionalVect
  *
  * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
  */
-class TransactionalRef[T] extends Transactional {
-  private[kernel] var ref: Option[T] = None
-  private[kernel] var snapshot: Option[T] = None
+class TransactionalRef[T](elem: T) extends Transactional {
+  def this() = this(null)
 
-  override def begin = if (ref.isDefined) snapshot = Some(ref.get)
+  private[kernel] val ref = new Ref[T](elem)
 
-  override def commit = if (ref.isDefined) snapshot = Some(ref.get)
-
-  override def rollback = if (snapshot.isDefined) ref = Some(snapshot.get)
-
-  def swap(elem: T) = {
-    verifyTransaction
-    ref = Some(elem)
-  }
+  def swap(elem: T) = ref.set(elem)
 
   def get: Option[T] = {
-    verifyTransaction
-    ref
+    if (ref.isNull) None
+    else Some(ref.get)
   }
 
   def getOrElse(default: => T): T = {
-    verifyTransaction
-    ref.getOrElse(default)
+    if (ref.isNull) default
+    else ref.get
   }
 
-  def isDefined: Boolean = {
-    verifyTransaction
-    ref.isDefined
-  }
+  def isDefined: Boolean = !ref.isNull)
 }
 
-class CassandraPersistentTransactionalRef extends TransactionalRef[AnyRef] {
-  override def commit = if (ref.isDefined) {
+/**
+ * Implements a transactional reference.
+ *
+ * Not thread-safe, but should only be using from within an Actor, e.g. one single thread at a time.
+ *
+ * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
+ */
+class CassandraPersistentTransactionalRef extends TransactionalRef[String] {
+  def commit = if (isDefined) {
     CassandraStorage.insertRefStorageFor(uuid, ref.get)
-    ref = None 
+    ref.clear
   }
 
-  override def rollback = ref = None
+  def rollback = ref.clear
 
   override def get: Option[AnyRef] = {
     verifyTransaction
-    CassandraStorage.getRefStorageFor(uuid)
+    if (isDefined) super.get
+    else CassandraStorage.getRefStorageFor(uuid)
   }
 
   override def isDefined: Boolean = get.isDefined
 
   override def getOrElse(default: => AnyRef): AnyRef = {
     val ref = get
-    if (ref.isDefined) ref
+    if (ref.isDefined) ref.get
     else default
   }
-}
\ No newline at end of file
+}
diff --git a/kernel/src/main/scala/stm/Transaction.scala b/kernel/src/main/scala/stm/Transaction.scala
index b72eb7c2b2..32aefa8a13 100644
--- a/kernel/src/main/scala/stm/Transaction.scala
+++ b/kernel/src/main/scala/stm/Transaction.scala
@@ -4,9 +4,176 @@
 
 package se.scalablesolutions.akka.kernel.stm
 
-import java.util.concurrent.atomic.{AtomicInteger, AtomicLong}
 import kernel.state.Transactional
 import kernel.util.Logging
+
+import org.multiverse.api.Transaction
+import org.multiverse.standard.DefaultStm
+import org.multiverse.utils.GlobalStmInstance
+import org.multiverse.utils.TransactionThreadLocal._
+
+
+/**
+ * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
+ */
+object STM {
+  val stm = new DefaultStm
+  GlobalStmInstance.set(stm)
+  setThreadLocalTransaction(null)
+}
+
+
+    
+/**
+ * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
+ */
+@serializable class Transaction extends Logging {
+  log.debug("Creating a new transaction with id [%s]", id)
+
+
+  @volatile private[this] var status: TransactionStatus = TransactionStatus.New
+
+  private[this] val transactionalItems = new ChangeSet
+
+  private[this] var participants: List[String] = Nil
+  private[this] var precommitted: List[String] = Nil
+
+  private[this] val depth = new AtomicInteger(0)
+  
+  def increment = synchronized { depth.incrementAndGet }
+  def decrement = synchronized { depth.decrementAndGet }
+  def isTopLevel = synchronized { depth.get == 0 }
+  
+  def register(transactional: Transactional) = synchronized {
+    ensureIsActiveOrNew
+    transactionalItems + transactional
+  }
+
+  def begin(participant: String) = synchronized {
+    ensureIsActiveOrNew
+    if (status == TransactionStatus.New) log.debug("TX BEGIN - Server with UUID [%s] is starting NEW transaction [%s]", participant, toString)
+    else log.debug("Server [%s] is participating in transaction", participant)
+    participants ::= participant
+    status = TransactionStatus.Active
+  }
+
+  def precommit(participant: String) = synchronized {
+    if (status == TransactionStatus.Active) {
+      log.debug("TX PRECOMMIT - Pre-committing transaction [%s] for server with UUID [%s]", toString, participant)
+      precommitted ::= participant
+    }
+  }
+
+  def commit(participant: String): Boolean = synchronized {
+    if (status == TransactionStatus.Active) {
+      log.debug("TX COMMIT - Committing transaction [%s] for server with UUID [%s]", toString, participant)
+      val haveAllPreCommitted =
+        if (participants.size == precommitted.size) {{
+          for (part <- participants) yield {
+            if (precommitted.exists(_ == part)) true
+            else false
+          }}.exists(_ == true)
+        } else false
+      if (haveAllPreCommitted) {
+        transactionalItems.items.foreach(_.commit)
+        status = TransactionStatus.Completed
+        reset
+        true
+      } else false
+    } else {
+      reset
+      true
+    }
+  }
+
+  def rollback(participant: String) = synchronized {
+    ensureIsActiveOrAborted
+    log.debug("TX ROLLBACK - Server with UUID [%s] has initiated transaction rollback for [%s]", participant, toString)
+    transactionalItems.items.foreach(_.rollback)
+    status = TransactionStatus.Aborted
+    reset
+  }
+
+  def rollbackForRescheduling(participant: String) = synchronized {
+    ensureIsActiveOrAborted
+    log.debug("TX ROLLBACK for recheduling - Server with UUID [%s] has initiated transaction rollback for [%s]", participant, toString)
+    transactionalItems.items.foreach(_.rollback)
+    reset
+  }
+
+  def join(participant: String) = synchronized {
+    ensureIsActive
+    log.debug("TX JOIN - Server with UUID [%s] is joining transaction [%s]" , participant, toString)
+    participants ::= participant
+  }
+
+  def isNew = status == TransactionStatus.New
+  def isActive = status == TransactionStatus.Active
+  def isCompleted = status == TransactionStatus.Completed
+  def isAborted = status == TransactionStatus.Aborted
+
+  private def reset = {
+    transactionalItems.clear
+    participants = Nil
+    precommitted = Nil    
+  }
+  
+  private def ensureIsActive = if (status != TransactionStatus.Active)
+    throw new IllegalStateException("Expected ACTIVE transaction - current status [" + status + "]: " + toString)
+
+  private def ensureIsActiveOrAborted = if (!(status == TransactionStatus.Active || status == TransactionStatus.Aborted))
+    throw new IllegalStateException("Expected ACTIVE or ABORTED transaction - current status [" + status + "]: " + toString)
+
+  private def ensureIsActiveOrNew = if (!(status == TransactionStatus.Active || status == TransactionStatus.New))
+    throw new IllegalStateException("Expected ACTIVE or NEW transaction - current status [" + status + "]: " + toString)
+
+  // For reinitialize transaction after sending it over the wire 
+  private[kernel] def reinit = synchronized {
+    import net.lag.logging.{Logger, Level}
+    if (log == null) {
+      log = Logger.get(this.getClass.getName)
+      log.setLevel(Level.ALL)
+    }
+  }
+
+  override def equals(that: Any): Boolean = synchronized {
+    that != null && 
+    that.isInstanceOf[Transaction] && 
+    that.asInstanceOf[Transaction].id == this.id
+  }
+ 
+  override def hashCode(): Int = id.toInt
+ 
+  override def toString(): String = synchronized { 
+    "Transaction[" + id + ", " + status + "]"
+  }
+}
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
 
 @serializable sealed abstract class TransactionStatus
 object TransactionStatus {
@@ -20,18 +187,17 @@ object TransactionStatus {
  * Represents a snapshot of the current invocation.
  *
  * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
- */
 object TransactionIdFactory {
   // FIXME: will not work in distributed env
   private val currentId = new AtomicLong(0L)
   def newId = currentId.getAndIncrement
 }
+ */
 
 /**
  * Represents a snapshot of the current invocation.
  *
  * @author <a href="http://jonasboner.com">Jonas Bon&#233;r</a>
- */
 @serializable class Transaction extends Logging {
   val id = TransactionIdFactory.newId
 
@@ -154,3 +320,4 @@ object TransactionIdFactory {
     "Transaction[" + id + ", " + status + "]"
   }
 }
+ */