diff --git a/configure.ac b/configure.ac
index 31ba6b0..43717ae 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,7 +1,7 @@
 #                                               -*- Autoconf -*-
 # Process this file with autoconf to produce a configure script.
 #AC_PREREQ(2.60)
-AC_INIT(lsyncd, 2.0, axkibe@gmail.com)
+AC_INIT(lsyncd, 2.0b1, axkibe@gmail.com)
 AC_CONFIG_SRCDIR([lsyncd.c])
 AC_CONFIG_HEADER([config.h])
 AM_INIT_AUTOMAKE(lsyncd, main)
diff --git a/lsyncd-conf.lua b/lsyncd-conf.lua
index ca279f0..3443c8e 100644
--- a/lsyncd-conf.lua
+++ b/lsyncd-conf.lua
@@ -1,4 +1,5 @@
 settings = {
+	logfile = "/tmp/lsyncd",
 	nodaemon,
 }
 
diff --git a/lsyncd.c b/lsyncd.c
index abe3d78..1ddeb63 100644
--- a/lsyncd.c
+++ b/lsyncd.c
@@ -26,6 +26,11 @@
 #include <lualib.h>
 #include <lauxlib.h>
 
+/**
+ * The Lua part of lsyncd.
+ */
+#define LSYNCD_RUNNER_FILE "lsyncd.lua"
+
 /**
  * The inotify file descriptor.
  */
@@ -39,6 +44,13 @@ const uint32_t standard_event_mask =
 		IN_DELETE   | IN_DELETE_SELF | IN_MOVED_FROM |
 		IN_MOVED_TO | IN_DONT_FOLLOW | IN_ONLYDIR;
 
+/**
+ * Configuration settings relevant for core.
+ */
+struct settings {
+	char * logfile;
+};
+struct settings settings = {0,};
 
 /**
  * Set to TERM or HUP in signal handler, when lsyncd should end or reset ASAP.
@@ -74,6 +86,22 @@ s_malloc(size_t size)
 	return r;
 }
 
+/**
+ * "secured" strdup.
+ */
+char *
+s_strdup(const char *src)
+{
+	char *s = strdup(src);
+	if (s == NULL) {
+		printf("Out of memory!\n");
+		exit(-1); // ERRNO
+	}
+	return s;
+}
+
+
+
 /*****************************************************************************
  * Library calls for lsyncd.lua
  * 
@@ -250,7 +278,7 @@ l_sub_dirs (lua_State *L)
 			isdir = S_ISDIR(st.st_mode);
 			free(subdir);
 		} else {
-			/* we can trust readdir */
+			/* readdir can trusted */
 			isdir = de->d_type == DT_DIR;
 		}
 		if (!isdir || !strcmp(de->d_name, ".") || !strcmp(de->d_name, "..")) {
@@ -281,10 +309,6 @@ l_terminate(lua_State *L)
 	return 0;
 }
 
-/*****************************************************************************
- * Lsyncd Core 
- ****************************************************************************/
-
 static const luaL_reg lsyncdlib[] = {
 		{"add_watch", l_add_watch},
 		{"exec",      l_exec},
@@ -295,6 +319,44 @@ static const luaL_reg lsyncdlib[] = {
 		{NULL, NULL}
 };
 
+
+/*****************************************************************************
+ * Lsyncd Core 
+ ****************************************************************************/
+
+/**
+ * Transfers the core relevant settings from lua's global "settings" into core.
+ * This saves time in normal operation instead of bothering lua all the time.
+ */
+void
+get_settings(lua_State *L)
+{
+	/* frees old settings */
+	if (settings.logfile) {
+		free(settings.logfile);
+		settings.logfile = NULL;
+	}
+	
+	/* gets settings table */
+	lua_getglobal(L, "settings");
+	if (!lua_istable(L, -1)) {
+		/* user has not specified any settings */
+		return;
+	}
+	
+	/* logfile */
+	lua_pushstring(L, "logfile");
+	lua_gettable(L, -2);
+	if (settings.logfile) {
+		free(settings.logfile);
+		settings.logfile = NULL;
+	}
+	if (lua_isstring(L, -1)) {
+		settings.logfile = s_strdup(luaL_checkstring(L, -1));
+	}
+	lua_pop(L, 1);
+}
+
 /**
  * Waits after startup for all children.
  * 
@@ -377,11 +439,9 @@ wait_startup(lua_State *L)
 			}
 		}
 	}
-
 	free(pids);
 }
 
-
 /**
  * Main
  */
@@ -398,20 +458,37 @@ main(int argc, char *argv[])
 	lua_setglobal(L, "lysncd");
 
 	if (luaL_loadfile(L, "lsyncd.lua")) {
-		printf("error loading lsyncd.lua: %s\n", lua_tostring(L, -1));
+		printf("error loading '%s': %s\n", 
+		       LSYNCD_RUNNER_FILE, lua_tostring(L, -1));
 		return -1; // ERRNO
 	}
 	if (lua_pcall(L, 0, LUA_MULTRET, 0)) {
-		printf("error running lsyncd.lua: %s\n", lua_tostring(L, -1));
+		printf("error preparing '%s': %s\n", 
+		       LSYNCD_RUNNER_FILE, lua_tostring(L, -1));
 		return -1; // ERRNO
 	}
-	
+
+	{
+		/* checks version match between runner/core */
+		const char *lversion;
+		lua_getglobal(L, "lsyncd_version");
+		lversion = luaL_checkstring(L, -1);
+		lua_pop(L, 1);
+		if (strcmp(lversion, PACKAGE_VERSION)) {
+			printf("Version mismatch '%s' is '%s', but core is '%s'\n",
+			       LSYNCD_RUNNER_FILE,
+			       lversion,
+			       PACKAGE_VERSION);
+			return -1; // ERRNO
+		}
+	}
+
 	if (luaL_loadfile(L, "lsyncd-conf.lua")) {
-		printf("error loading lsyncd-conf.lua: %s\n", lua_tostring(L, -1));
+		printf("error load lsyncd-conf.lua: %s\n", lua_tostring(L, -1));
 		return -1; // ERRNO
 	}
 	if (lua_pcall(L, 0, LUA_MULTRET, 0)) {
-		printf("error running lsyncd-conf.lua: %s\n", lua_tostring(L, -1));
+		printf("error prep lsyncd-conf.lua: %s\n", lua_tostring(L, -1));
 		return -1; // ERRNO
 	}
 
@@ -426,13 +503,21 @@ main(int argc, char *argv[])
 	/* lua code will set configuration and add watches */
 	lua_getglobal(L, "lsyncd_initialize");
 	lua_call(L, 0, 0);
+
+	/* load core settings into core */
+	get_settings(L);
 	
 	/* startup */
 	/* lua code will perform startup calls like recursive rsync */
 	lua_getglobal(L, "startup");
 	lua_call(L, 0, 1);
+	/* wait for children spawned at startup */
 	wait_startup(L);
 
+	/* enter normal operation */
+	lua_getglobal(L, "normalop");
+	lua_call(L, 0, 1);
+
 	/* cleanup */
 	close(inotify_fd);
 	lua_close(L);
diff --git a/lsyncd.lua b/lsyncd.lua
index c2c7eb9..30cd2ef 100644
--- a/lsyncd.lua
+++ b/lsyncd.lua
@@ -2,17 +2,21 @@
 -- lsyncd runner implemented in LUA
 ------------------------------------------------------------------------------
 
+----
+-- Core will exit if version ids mismatch.
+lsyncd_version = "2.0b1"
+
 ----
 -- Table of all directories to watch.
-local origins = {}
+origins = {}
 
 ----
 -- all targets
-local targets = {}
+targets = {}
 
 -----
 -- all watches
-local watches = {}
+watches = {}
 
 ----
 -- Adds watches for a directory including all subdirectories.
@@ -21,7 +25,6 @@ local watches = {}
 -- @param target
 --
 local function attend_dir(origin, path, target)
-	print("attending dir", origin, "+", path, "->", target.path);
 	-- actual dir = origin + path 
 	local op = origin .. path
 	-- register watch and receive watch descriptor
@@ -54,10 +57,8 @@ end
 -- Called from core on init or restart after user configuration.
 -- 
 function lsyncd_initialize()
-	print("--- INIT ---")
 	local i, o
 	for i, o in ipairs(origins) do
-		print("Handling ", o.source, "->" , o.targetpath)
 		-- resolves source to be an absolute path
 		local src = lsyncd.real_dir(o.source)
 		if src == nil then
@@ -100,12 +101,11 @@ end
 -- "startup". (and yet may still call default startup)
 --
 function default_startup()
-	print("--- STARTUP ---")
+	print("--- startup ---")
 	local pids = { }
 	for i, o in ipairs(origins) do
-		print("/usr/bin/rsync", "-ltrs", o.source, o.targetpath)
+		print("initialize recursive rsync: " .. o.source .. " -> " .. o.targetpath)
 		pid = lsyncd.exec("/usr/bin/rsync", "-ltrs", o.source, o.targetpath)
-		print("started ", pid)
 		table.insert(pids, pid)
 	end
 	return pids
@@ -123,7 +123,6 @@ startup = default_startup
 -- finished/ok.
 --
 function default_startup_returned(pid, exitcode)
-	print("startup_returned ", pid, exitcode);
 	if exitcode ~= 0 then
 		print("Startup process", pid, " failed")
 		lsyncd.terminate(-1) -- ERRNO
@@ -132,3 +131,16 @@ function default_startup_returned(pid, exitcode)
 end
 startup_returned = default_startup_returned
 
+-----
+-- Called by core after startup phase when finished waiting for 
+-- children spawned at startup.
+--
+function default_normalop()
+	print("--- Entering normal operation with " .. #watches .. " monitored directories ---")
+end
+normalop = default_normalop
+
+----
+-- other functions the user might want to use
+exec = lsyncd.exec
+