diff --git a/apps/openmw/CMakeLists.txt b/apps/openmw/CMakeLists.txt
index 1873583c1c..4e4e9062d7 100644
--- a/apps/openmw/CMakeLists.txt
+++ b/apps/openmw/CMakeLists.txt
@@ -145,6 +145,7 @@ set(GAMEWORLD_HEADER
     mwworld/containerutil.hpp
     mwworld/player.hpp
     mwworld/doingphysics.hpp
+    mwworld/cellfunctors.hpp
     )
 source_group(apps\\openmw\\mwworld FILES ${GAMEWORLD} ${GAMEWORLD_HEADER})
 
@@ -206,6 +207,7 @@ set(GAMEMECHANICS_HEADER
     mwmechanics/stat.hpp
     mwmechanics/creaturestats.hpp
     mwmechanics/magiceffects.hpp
+    mwmechanics/movement.hpp
     )
 source_group(apps\\openmw\\mwmechanics FILES ${GAMEMECHANICS} ${GAMEMECHANICS_HEADER})
 
diff --git a/apps/openmw/engine.cpp b/apps/openmw/engine.cpp
index 3eaff2fe14..b78eb15820 100644
--- a/apps/openmw/engine.cpp
+++ b/apps/openmw/engine.cpp
@@ -6,6 +6,8 @@
 #include <iostream>
 #include <utility>
 
+#include <OgreVector3.h>
+
 #include "components/esm/records.hpp"
 #include <components/esm_store/cell_store.hpp>
 #include <components/misc/fileops.hpp>
@@ -158,7 +160,8 @@ bool OMW::Engine::frameStarted(const Ogre::FrameEvent& evt)
             mEnvironment.mWorld->markCellAsUnchanged();
 
         // update actors
-        mEnvironment.mMechanicsManager->update();
+        std::vector<std::pair<std::string, Ogre::Vector3> > movement;
+        mEnvironment.mMechanicsManager->update (movement);
 
         if (focusFrameCounter++ == focusUpdateFrame)
         {
@@ -179,6 +182,8 @@ bool OMW::Engine::frameStarted(const Ogre::FrameEvent& evt)
 
             focusFrameCounter = 0;
         }
+
+        mEnvironment.mWorld->doPhysics (movement, mEnvironment.mFrameDuration);
     }
     catch (const std::exception& e)
     {
@@ -388,7 +393,7 @@ void OMW::Engine::go()
     else
     {
         pos.pos[0] = pos.pos[1] = 0;
-        mEnvironment.mWorld->changeCell (mCellName, pos);
+        mEnvironment.mWorld->changeToInteriorCell (mCellName, pos);
     }
 
     // Sets up the input system
diff --git a/apps/openmw/mwclass/activator.cpp b/apps/openmw/mwclass/activator.cpp
index 6c96811d8a..7a72ddb8cf 100644
--- a/apps/openmw/mwclass/activator.cpp
+++ b/apps/openmw/mwclass/activator.cpp
@@ -23,6 +23,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/apparatus.cpp b/apps/openmw/mwclass/apparatus.cpp
index 1d4afc0960..2dbeae3605 100644
--- a/apps/openmw/mwclass/apparatus.cpp
+++ b/apps/openmw/mwclass/apparatus.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/armor.cpp b/apps/openmw/mwclass/armor.cpp
index 1217d56a69..d637956412 100644
--- a/apps/openmw/mwclass/armor.cpp
+++ b/apps/openmw/mwclass/armor.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/book.cpp b/apps/openmw/mwclass/book.cpp
index 3679eb7eea..964ccbdfe6 100644
--- a/apps/openmw/mwclass/book.cpp
+++ b/apps/openmw/mwclass/book.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/clothing.cpp b/apps/openmw/mwclass/clothing.cpp
index 07ded02640..a264f2a1cd 100644
--- a/apps/openmw/mwclass/clothing.cpp
+++ b/apps/openmw/mwclass/clothing.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/container.cpp b/apps/openmw/mwclass/container.cpp
index ea61508b8d..1da55e6f69 100644
--- a/apps/openmw/mwclass/container.cpp
+++ b/apps/openmw/mwclass/container.cpp
@@ -23,6 +23,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/creature.cpp b/apps/openmw/mwclass/creature.cpp
index 0d358441a0..8cde67671b 100644
--- a/apps/openmw/mwclass/creature.cpp
+++ b/apps/openmw/mwclass/creature.cpp
@@ -35,6 +35,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertActorPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/door.cpp b/apps/openmw/mwclass/door.cpp
index 4f294ce872..8a34d3abe5 100644
--- a/apps/openmw/mwclass/door.cpp
+++ b/apps/openmw/mwclass/door.cpp
@@ -30,6 +30,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/ingredient.cpp b/apps/openmw/mwclass/ingredient.cpp
index e4ea509f91..c88e1794b6 100644
--- a/apps/openmw/mwclass/ingredient.cpp
+++ b/apps/openmw/mwclass/ingredient.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/light.cpp b/apps/openmw/mwclass/light.cpp
index de5c06a73e..159196eb2c 100644
--- a/apps/openmw/mwclass/light.cpp
+++ b/apps/openmw/mwclass/light.cpp
@@ -31,6 +31,7 @@ namespace MWClass
             MWRender::Rendering rendering (cellRender, ref->ref);
 
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
 
             // Extract the color and convert to floating point
             const int color = ref->base->data.color;
diff --git a/apps/openmw/mwclass/lockpick.cpp b/apps/openmw/mwclass/lockpick.cpp
index 3b08ff199a..9a4b98b431 100644
--- a/apps/openmw/mwclass/lockpick.cpp
+++ b/apps/openmw/mwclass/lockpick.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/misc.cpp b/apps/openmw/mwclass/misc.cpp
index d4ffdce380..f9995b77f8 100644
--- a/apps/openmw/mwclass/misc.cpp
+++ b/apps/openmw/mwclass/misc.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/npc.cpp b/apps/openmw/mwclass/npc.cpp
index bc933b9189..4678df2221 100644
--- a/apps/openmw/mwclass/npc.cpp
+++ b/apps/openmw/mwclass/npc.cpp
@@ -256,8 +256,9 @@ namespace MWClass
         cellRender.insertMesh (headModel, Ogre::Vector3( 0, 0, 5), axis, Ogre::Radian(0), npcName + "head", neckandup, neckNumbers);
         neckandup[neckNumbers++] = npcName + "head";
         cellRender.insertMesh (hairModel, Ogre::Vector3( 0, -1, 0), axis, Ogre::Radian(0), npcName + "hair", neckandup, neckNumbers);
-        ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
 
+        cellRender.insertActorPhysics();
+        ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
     }
 
     void Npc::enable (const MWWorld::Ptr& ptr, MWWorld::Environment& environment) const
@@ -392,7 +393,8 @@ namespace MWClass
         {
             case Run:
 
-                throw std::runtime_error ("run stance not manually setable for NPCs");
+                stats.mRun = set;
+                break;
 
             case Sneak:
 
@@ -414,7 +416,10 @@ namespace MWClass
         {
             case Run:
 
-                return ignoreForce ? false : stats.mForceRun;
+                if (!ignoreForce && stats.mForceRun)
+                    return true;
+
+                return stats.mRun;
 
             case Sneak:
 
@@ -436,6 +441,35 @@ namespace MWClass
         return getStance (ptr, Run) ? 600 : 300; // TODO calculate these values from stats
     }
 
+    MWMechanics::Movement& Npc::getMovementSettings (const MWWorld::Ptr& ptr) const
+    {
+        if (!ptr.getRefData().getMovement().get())
+        {
+            boost::shared_ptr<MWMechanics::Movement> movement (
+                new MWMechanics::Movement);
+
+            ptr.getRefData().getMovement() = movement;
+        }
+
+        return *ptr.getRefData().getMovement();
+    }
+
+    Ogre::Vector3 Npc::getMovementVector (const MWWorld::Ptr& ptr) const
+    {
+        Ogre::Vector3 vector (0, 0, 0);
+
+        if (ptr.getRefData().getMovement().get())
+        {
+            vector.x = - ptr.getRefData().getMovement()->mLeftRight * 200;
+            vector.z = - ptr.getRefData().getMovement()->mForwardBackward * 200;
+
+            if (getStance (ptr, Run, false))
+                vector *= 2;
+        }
+
+        return vector;
+    }
+
     void Npc::registerSelf()
     {
         boost::shared_ptr<Class> instance (new Npc);
diff --git a/apps/openmw/mwclass/npc.hpp b/apps/openmw/mwclass/npc.hpp
index 1d9d90c4de..9f29878da4 100644
--- a/apps/openmw/mwclass/npc.hpp
+++ b/apps/openmw/mwclass/npc.hpp
@@ -56,6 +56,13 @@ namespace MWClass
             virtual float getSpeed (const MWWorld::Ptr& ptr) const;
             ///< Return movement speed.
 
+            virtual MWMechanics::Movement& getMovementSettings (const MWWorld::Ptr& ptr) const;
+            ///< Return desired movement.
+
+            virtual Ogre::Vector3 getMovementVector (const MWWorld::Ptr& ptr) const;
+            ///< Return desired movement vector (determined based on movement settings,
+            /// stance and stats).
+
             static void registerSelf();
     };
 }
diff --git a/apps/openmw/mwclass/potion.cpp b/apps/openmw/mwclass/potion.cpp
index e163473f75..6c9889a7b8 100644
--- a/apps/openmw/mwclass/potion.cpp
+++ b/apps/openmw/mwclass/potion.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/probe.cpp b/apps/openmw/mwclass/probe.cpp
index 9188ae9ea3..028d8b5e3e 100644
--- a/apps/openmw/mwclass/probe.cpp
+++ b/apps/openmw/mwclass/probe.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/repair.cpp b/apps/openmw/mwclass/repair.cpp
index 7b42bc95cc..b9b5036fbc 100644
--- a/apps/openmw/mwclass/repair.cpp
+++ b/apps/openmw/mwclass/repair.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/static.cpp b/apps/openmw/mwclass/static.cpp
index 33e3e0ed42..851b4d7bf9 100644
--- a/apps/openmw/mwclass/static.cpp
+++ b/apps/openmw/mwclass/static.cpp
@@ -21,6 +21,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwclass/weapon.cpp b/apps/openmw/mwclass/weapon.cpp
index 4c14e58ea9..a985a7e42f 100644
--- a/apps/openmw/mwclass/weapon.cpp
+++ b/apps/openmw/mwclass/weapon.cpp
@@ -26,6 +26,7 @@ namespace MWClass
         {
             MWRender::Rendering rendering (cellRender, ref->ref);
             cellRender.insertMesh ("meshes\\" + model);
+            cellRender.insertObjectPhysics();
             ref->mData.setHandle (rendering.end (ref->mData.isEnabled()));
         }
     }
diff --git a/apps/openmw/mwinput/inputmanager.cpp b/apps/openmw/mwinput/inputmanager.cpp
index 1cc6eca2ab..dc21680af4 100644
--- a/apps/openmw/mwinput/inputmanager.cpp
+++ b/apps/openmw/mwinput/inputmanager.cpp
@@ -41,27 +41,25 @@ namespace MWInput
 
       A_MoveLeft,       // Move player left / right
       A_MoveRight,
-      A_MoveUp,         // Move up / down
-      A_MoveDown,
       A_MoveForward,    // Forward / Backward
       A_MoveBackward,
 
       A_Activate,
 
-      A_Use,		//Use weapon, spell, etc.
+      A_Use,        //Use weapon, spell, etc.
       A_Jump,
-      A_AutoMove, 	//Toggle Auto-move forward
-      A_Rest, 		//Rest
-      A_Journal,	//Journal
-      A_Weapon,		//Draw/Sheath weapon
-      A_Spell,		//Ready/Unready Casting
-      A_AlwaysRun,	//Toggle Always Run
+      A_AutoMove,   //Toggle Auto-move forward
+      A_Rest,       //Rest
+      A_Journal,    //Journal
+      A_Weapon,     //Draw/Sheath weapon
+      A_Spell,      //Ready/Unready Casting
+      A_AlwaysRun,  //Toggle Always Run
       A_CycleSpellLeft, //cycling through spells
       A_CycleSpellRight,
       A_CycleWeaponLeft,//Cycling through weapons
       A_CycleWeaponRight,
-      A_ToggleSneak, 	//Toggles Sneak, add Push-Sneak later
-      A_ToggleWalk,	//Toggle Walking/Running
+      A_ToggleSneak,    //Toggles Sneak, add Push-Sneak later
+      A_ToggleWalk, //Toggle Walking/Running
 
       A_QuickSave,
       A_QuickLoad,
@@ -143,24 +141,19 @@ namespace MWInput
 
     void toggleAutoMove()
     {
-        if (player.getAutoMove() == false)
-        {
-            player.setAutoMove(true);
-        } else {
-            player.setAutoMove(false);
-        }
+        player.setAutoMove (!player.getAutoMove());
     }
 
     void toggleWalking()
     {
-        player.setisWalking(true);
+        player.toggleRunning();
     }
 
     // Exit program now button (which is disabled in GUI mode)
     void exitNow()
     {
-      if(!windows.isGuiMode())
-        exit.exitNow();
+        if(!windows.isGuiMode())
+            exit.exitNow();
     }
 
   public:
@@ -262,73 +255,54 @@ namespace MWInput
       poller.bind(A_MoveRight, KC_D);
       poller.bind(A_MoveForward, KC_W);
       poller.bind(A_MoveBackward, KC_S);
-
-      // Use shift and ctrl for up and down
-      poller.bind(A_MoveUp, KC_LSHIFT);
-      poller.bind(A_MoveDown, KC_LCONTROL);
     }
 
     //NOTE: Used to check for movement keys
     bool frameStarted(const Ogre::FrameEvent &evt)
     {
-      // Tell OIS to handle all input events
-      input.capture();
+        // Tell OIS to handle all input events
+        input.capture();
 
-      // Update windows/gui as a result of input events
-      // For instance this could mean opening a new window/dialog,
-      // by doing this after the input events are handled we
-      // ensure that window/gui changes appear quickly while
-      // avoiding that window/gui changes does not happen in
-      // event callbacks (which may crash)
-      windows.update();
+        // Update windows/gui as a result of input events
+        // For instance this could mean opening a new window/dialog,
+        // by doing this after the input events are handled we
+        // ensure that window/gui changes appear quickly while
+        // avoiding that window/gui changes does not happen in
+        // event callbacks (which may crash)
+        windows.update();
 
-      // Disable movement in Gui mode
-      if(windows.isGuiMode()) return true;
+        // Disable movement in Gui mode
+        if (windows.isGuiMode()) return true;
 
-      float speed = 300 * evt.timeSinceLastFrame;		//placeholder player speed?
-      //float TESTwalkSpeed = 100 * evt.timeSinceLastFrame;	//How about another?
+        // Configure player movement according to keyboard input. Actual movement will
+        // be done in the physics system.
+        if (poller.isDown(A_MoveLeft))
+        {
+            player.setAutoMove (false);
+            player.setLeftRight (1);
+        }
+        else if (poller.isDown(A_MoveRight))
+        {
+            player.setAutoMove (false);
+            player.setLeftRight (-1);
+        }
+        else
+            player.setLeftRight (0);
 
-      float moveX = 0, moveY = 0, moveZ = 0;
+        if (poller.isDown(A_MoveForward))
+        {
+            player.setAutoMove (false);
+            player.setForwardBackward (1);
+        }
+        else if (poller.isDown(A_MoveBackward))
+        {
+            player.setAutoMove (false);
+            player.setForwardBackward (-1);
+        }
+        else
+            player.setForwardBackward (0);
 
-      //execute Automove - condition checked in function
-      player.executeAutoMove((float)evt.timeSinceLastFrame);  	//or since last frame?
-
-      //Poll and execute movement keys - will disable automove if pressed.
-      if(poller.isDown(A_MoveLeft))
-      {
-         player.setAutoMove(false);
-         moveX -= speed;
-      }
-
-      if(poller.isDown(A_MoveRight))
-      {
-          player.setAutoMove(false);
-          moveX += speed;
-      }
-
-      if(poller.isDown(A_MoveForward))
-      {
-          player.setAutoMove(false);
-          moveZ -= speed;
-      }
-
-      if(poller.isDown(A_MoveBackward))
-      {
-          player.setAutoMove(false);
-          moveZ += speed;
-      }
-
-
-      // TODO: These should be enabled for floating modes (like
-      // swimming and levitation) and disabled for everything else.
-      if(poller.isDown(A_MoveUp)) moveY += speed;
-      if(poller.isDown(A_MoveDown)) moveY -= speed;
-
-      if(moveX != 0 || moveY != 0 || moveZ != 0)
-        player.moveRel(moveX, moveY, moveZ);
-
-
-      return true;
+        return true;
     }
 
     // Switch between gui modes. Besides controlling the Gui windows
diff --git a/apps/openmw/mwmechanics/mechanicsmanager.cpp b/apps/openmw/mwmechanics/mechanicsmanager.cpp
index 05219d6aaf..df0b5616c9 100644
--- a/apps/openmw/mwmechanics/mechanicsmanager.cpp
+++ b/apps/openmw/mwmechanics/mechanicsmanager.cpp
@@ -234,11 +234,17 @@ namespace MWMechanics
 
     void MechanicsManager::removeActor (const MWWorld::Ptr& ptr)
     {
+        if (ptr==mWatched)
+            mWatched = MWWorld::Ptr();
+
         mActors.erase (ptr);
     }
 
     void MechanicsManager::dropActors (const MWWorld::Ptr::CellStore *cellStore)
     {
+        if (!mWatched.isEmpty() && mWatched.getCell()==cellStore)
+            mWatched = MWWorld::Ptr();
+
         std::set<MWWorld::Ptr>::iterator iter = mActors.begin();
 
         while (iter!=mActors.end())
@@ -255,7 +261,7 @@ namespace MWMechanics
         mWatched = ptr;
     }
 
-    void MechanicsManager::update()
+    void MechanicsManager::update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement)
     {
         if (!mWatched.isEmpty())
         {
@@ -350,6 +356,15 @@ namespace MWMechanics
 
             mEnvironment.mWindowManager->configureSkills (majorSkills, minorSkills);
         }
+
+        for (std::set<MWWorld::Ptr>::iterator iter (mActors.begin()); iter!=mActors.end();
+            ++iter)
+        {
+            Ogre::Vector3 vector = MWWorld::Class::get (*iter).getMovementVector (*iter);
+
+            if (vector!=Ogre::Vector3::ZERO)
+                movement.push_back (std::make_pair (iter->getRefData().getHandle(), vector));
+        }
     }
 
     void MechanicsManager::setPlayerName (const std::string& name)
diff --git a/apps/openmw/mwmechanics/mechanicsmanager.hpp b/apps/openmw/mwmechanics/mechanicsmanager.hpp
index 26d3621ab9..2e2192638f 100644
--- a/apps/openmw/mwmechanics/mechanicsmanager.hpp
+++ b/apps/openmw/mwmechanics/mechanicsmanager.hpp
@@ -2,12 +2,19 @@
 #define GAME_MWMECHANICS_MECHANICSMANAGER_H
 
 #include <set>
+#include <vector>
+#include <string>
 
 #include "../mwworld/ptr.hpp"
 
 #include "creaturestats.hpp"
 #include "npcstats.hpp"
 
+namespace Ogre
+{
+    class Vector3;
+}
+
 namespace MWWorld
 {
     class Environment;
@@ -53,8 +60,8 @@ namespace MWMechanics
             ///< On each update look for changes in a previously registered actor and update the
             /// GUI accordingly.
 
-            void update();
-            ///< Update actor stats
+            void update (std::vector<std::pair<std::string, Ogre::Vector3> >& movement);
+            ///< Update actor stats and store desired velocity vectors in \a movement
 
             void setPlayerName (const std::string& name);
             ///< Set player name.
diff --git a/apps/openmw/mwmechanics/movement.hpp b/apps/openmw/mwmechanics/movement.hpp
new file mode 100644
index 0000000000..a555ac010a
--- /dev/null
+++ b/apps/openmw/mwmechanics/movement.hpp
@@ -0,0 +1,16 @@
+#ifndef GAME_MWMECHANICS_MOVEMENT_H
+#define GAME_MWMECHANICS_MOVEMENT_H
+
+namespace MWMechanics
+{
+    /// Desired movement for an actor
+    struct Movement
+    {
+        signed char mLeftRight; // 1: wants to move left, -1: wants to move right
+        signed char mForwardBackward; // 1:wants to move forward, -1: wants to move backward
+
+        Movement() : mLeftRight (0), mForwardBackward (0) {}
+    };
+}
+
+#endif
diff --git a/apps/openmw/mwmechanics/npcstats.hpp b/apps/openmw/mwmechanics/npcstats.hpp
index fa0e46b1ac..aeb5f56d5b 100644
--- a/apps/openmw/mwmechanics/npcstats.hpp
+++ b/apps/openmw/mwmechanics/npcstats.hpp
@@ -21,10 +21,12 @@ namespace MWMechanics
 
         bool mForceRun;
         bool mForceSneak;
+        bool mRun;
         bool mSneak;
         bool mCombat;
 
-        NpcStats() : mForceRun (false), mForceSneak (false), mSneak (false), mCombat (false) {}
+        NpcStats() : mForceRun (false), mForceSneak (false), mRun (false), mSneak (false),
+            mCombat (false) {}
     };
 }
 
diff --git a/apps/openmw/mwrender/cellimp.hpp b/apps/openmw/mwrender/cellimp.hpp
index 91676e11c0..272bfeeab4 100644
--- a/apps/openmw/mwrender/cellimp.hpp
+++ b/apps/openmw/mwrender/cellimp.hpp
@@ -45,6 +45,9 @@ namespace MWRender
 
     virtual void scaleMesh(Ogre::Vector3 axis,  std::string sceneNodeName[], int elements) = 0;
 
+    virtual void insertObjectPhysics() = 0;
+
+    virtual void insertActorPhysics() = 0;
 
     /// insert a light related to the most recent insertBegin call.
     virtual void insertLight(float r, float g, float b, float radius) = 0;
diff --git a/apps/openmw/mwrender/exterior.cpp b/apps/openmw/mwrender/exterior.cpp
index cd2a7680d4..c1d7641b87 100644
--- a/apps/openmw/mwrender/exterior.cpp
+++ b/apps/openmw/mwrender/exterior.cpp
@@ -58,6 +58,8 @@ void ExteriorCellRender::insertBegin (ESM::CellRef &ref)
 
   // Rotates first around z, then y, then x
   mInsert->setOrientation(xr*yr*zr);
+
+    mInsertMesh.clear();
 }
 
 
@@ -81,18 +83,18 @@ void ExteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
        if(sceneParent[i] != "" && parent->getChild(sceneParent[i]))
            parent = dynamic_cast<Ogre::SceneNode*> (parent->getChild(sceneParent[i]));
         }
-     
+
      mNpcPart = parent->createChildSceneNode(sceneNodeName);
   NIFLoader::load(mesh);
   MovableObject *ent = mScene.getMgr()->createEntity(mesh);
-  
+
   mNpcPart->translate(vec);
   mNpcPart->rotate(axis, angle);
  // mNpcPart->translate(vec);
   //mNpcPart->rotate(axis, angle);
   mNpcPart->attachObject(ent);
   //mNpcPart->
-  
+
 }
 */
 void ExteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec, Ogre::Vector3 axis, Ogre::Radian angle,  std::string sceneNodeName, std::string sceneParent[], int elements)
@@ -108,7 +110,7 @@ void ExteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
        if(sceneParent[i] != "" && parent->getChild(sceneParent[i]))
            parent = dynamic_cast<Ogre::SceneNode*> (parent->getChild(sceneParent[i]));
         }
-     
+
      mNpcPart = parent->createChildSceneNode(sceneNodeName);
    MeshPtr good2 = NIFLoader::load(mesh);
 
@@ -120,7 +122,7 @@ void ExteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
   mNpcPart->rotate(axis, angle);
   }
   else{
-      
+
   mNpcPart->rotate(axis, angle);
   mNpcPart->translate(vec);
   }
@@ -202,6 +204,22 @@ void ExteriorCellRender::insertMesh(const std::string &mesh)
   NIFLoader::load(mesh);
   MovableObject *ent = mScene.getMgr()->createEntity(mesh);
   mInsert->attachObject(ent);
+
+    if (mInsertMesh.empty())
+        mInsertMesh = mesh;
+}
+
+void ExteriorCellRender::insertObjectPhysics()
+{
+    if (!mInsertMesh.empty())
+        mScene.addObject (mInsert->getName(), mInsertMesh, mInsert->getOrientation(),
+            mInsert->getScale().x, mInsert->getPosition());
+}
+
+void ExteriorCellRender::insertActorPhysics()
+{
+    if (!mInsertMesh.empty())
+        mScene.addActor (mInsert->getName(), mInsertMesh, mInsert->getPosition());
 }
 
 // insert a light related to the most recent insertBegin call.
diff --git a/apps/openmw/mwrender/exterior.hpp b/apps/openmw/mwrender/exterior.hpp
index 67d41bcacd..93491f263e 100644
--- a/apps/openmw/mwrender/exterior.hpp
+++ b/apps/openmw/mwrender/exterior.hpp
@@ -54,6 +54,7 @@ namespace MWRender
     Ogre::SceneNode *mBase;
 
     Ogre::SceneNode *mInsert;
+    std::string mInsertMesh;
     Ogre::SceneNode *mNpcPart;
 
     // 0 normal, 1 more bright, 2 max
@@ -67,11 +68,15 @@ namespace MWRender
     /// insert a mesh related to the most recent insertBegin call.
     virtual void insertMesh(const std::string &mesh, Ogre::Vector3 vec,  Ogre::Vector3 axis, Ogre::Radian angle, std::string sceneNodeName, std::string sceneParent[], int elements);
     virtual void insertMesh(const std::string &mesh, Ogre::Vector3 vec, Ogre::Vector3 axis, Ogre::Radian angle, std::string sceneNodeName, std::string sceneParent[], int elements, bool translateFirst);
-    
+
     virtual void insertMesh(const std::string &mesh);
      virtual void rotateMesh(Ogre::Vector3 axis, Ogre::Radian angle,  std::string sceneNodeName[], int elements);
      virtual void scaleMesh(Ogre::Vector3 axis,  std::string sceneNodeName[], int elements);
 
+    virtual void insertObjectPhysics();
+
+    virtual void insertActorPhysics();
+
     /// insert a light related to the most recent insertBegin call.
     virtual void insertLight(float r, float g, float b, float radius);
 
@@ -85,7 +90,7 @@ namespace MWRender
     void configureFog();
 
     void setAmbientMode();
-     
+
 
   public:
 
diff --git a/apps/openmw/mwrender/interior.cpp b/apps/openmw/mwrender/interior.cpp
index 6e1f0d2973..e096b7757e 100644
--- a/apps/openmw/mwrender/interior.cpp
+++ b/apps/openmw/mwrender/interior.cpp
@@ -60,6 +60,8 @@ void InteriorCellRender::insertBegin (ESM::CellRef &ref)
 
   // Rotates first around z, then y, then x
   insert->setOrientation(xr*yr*zr);
+
+    mInsertMesh.clear();
 }
 
 // insert a mesh related to the most recent insertBegin call.
@@ -100,7 +102,7 @@ void InteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
        if(sceneParent[i] != "" && parent->getChild(sceneParent[i]))
            parent = dynamic_cast<Ogre::SceneNode*> (parent->getChild(sceneParent[i]));
         }
-     
+
      npcPart = parent->createChildSceneNode(sceneNodeName);
     //npcPart->showBoundingBox(true);
 
@@ -108,7 +110,7 @@ void InteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
 
   MovableObject *ent = scene.getMgr()->createEntity(mesh);
   //ent->extr
-    
+
     //  MovableObject *ent2 = scene.getMgr()->createEntity(bounds
         //      );
  //ent->
@@ -119,7 +121,7 @@ void InteriorCellRender::insertMesh(const std::string &mesh, Ogre::Vector3 vec,
   npcPart->rotate(axis, angle);
   }
   else{
-      
+
   npcPart->rotate(axis, angle);
   npcPart->translate(vec);
   }
@@ -185,6 +187,22 @@ void InteriorCellRender::insertMesh(const std::string &mesh)
   NIFLoader::load(mesh);
   MovableObject *ent = scene.getMgr()->createEntity(mesh);
   insert->attachObject(ent);
+
+    if (mInsertMesh.empty())
+        mInsertMesh = mesh;
+}
+
+void InteriorCellRender::insertObjectPhysics()
+{
+    if (!mInsertMesh.empty())
+        scene.addObject (insert->getName(), mInsertMesh, insert->getOrientation(),
+            insert->getScale().x, insert->getPosition());
+}
+
+void InteriorCellRender::insertActorPhysics()
+{
+    if (!mInsertMesh.empty())
+        scene.addActor (insert->getName(), mInsertMesh, insert->getPosition());
 }
 
 // insert a light related to the most recent insertBegin call.
diff --git a/apps/openmw/mwrender/interior.hpp b/apps/openmw/mwrender/interior.hpp
index a389435214..7c4b2aaf11 100644
--- a/apps/openmw/mwrender/interior.hpp
+++ b/apps/openmw/mwrender/interior.hpp
@@ -54,6 +54,7 @@ namespace MWRender
     Ogre::SceneNode *base;
 
     Ogre::SceneNode *insert;
+    std::string mInsertMesh;
     Ogre::SceneNode *npcPart;
 
     // 0 normal, 1 more bright, 2 max
@@ -69,6 +70,11 @@ namespace MWRender
     virtual void insertMesh(const std::string &mesh);
     virtual void insertMesh(const std::string &mesh, Ogre::Vector3 vec,  Ogre::Vector3 axis, Ogre::Radian angle, std::string sceneNodeName, std::string sceneParent[], int elements);
     virtual void insertMesh(const std::string &mesh, Ogre::Vector3 vec, Ogre::Vector3 axis, Ogre::Radian angle, std::string sceneNodeName, std::string sceneParent[], int elements, bool translateFirst);
+
+    virtual void insertObjectPhysics();
+
+    virtual void insertActorPhysics();
+
     /// insert a light related to the most recent insertBegin call.
     virtual void insertLight(float r, float g, float b, float radius);
 
diff --git a/apps/openmw/mwrender/mwscene.cpp b/apps/openmw/mwrender/mwscene.cpp
index 6a0920b949..1c2303ce43 100644
--- a/apps/openmw/mwrender/mwscene.cpp
+++ b/apps/openmw/mwrender/mwscene.cpp
@@ -42,7 +42,10 @@ MWScene::MWScene(OEngine::Render::OgreRenderer &_rend)
   //used to obtain ingame information of ogre objects (which are faced or selected)
   mRaySceneQuery = rend.getScene()->createRayQuery(Ray());
 
-  mPlayer = new MWRender::Player (getCamera());
+    Ogre::SceneNode *playerNode = mwRoot->createChildSceneNode();
+    playerNode->attachObject (getCamera());
+
+    mPlayer = new MWRender::Player (getCamera(), playerNode->getName());
 }
 
 MWScene::~MWScene()
@@ -99,16 +102,24 @@ std::pair<std::string, float> MWScene::getFacedHandle (MWWorld::World& world)
     return std::pair<std::string, float>(handle, distance);
 }
 
-void MWScene::doPhysics (float duration, MWWorld::World& world)
+void MWScene::doPhysics (float duration, MWWorld::World& world,
+    const std::vector<std::pair<std::string, Ogre::Vector3> >& actors)
 {
     // stop changes to world from being reported back to the physics system
     MWWorld::DoingPhysics scopeGuard;
 
-}
+    // move object directly for now -> TODO replace with physics
+    for (std::vector<std::pair<std::string, Ogre::Vector3> >::const_iterator iter (actors.begin());
+        iter!=actors.end(); ++iter)
+    {
+        MWWorld::Ptr ptr = world.getPtrViaHandle (iter->first);
 
-void MWScene::setMovement (const std::vector<std::string, Ogre::Vector3>& actors)
-{
+        Ogre::SceneNode *sceneNode = rend.getScene()->getSceneNode (iter->first);
 
+        Ogre::Vector3 newPos = sceneNode->getPosition() + sceneNode->getOrientation() * iter->second;
+
+        world.moveObject (ptr, newPos.x, newPos.y, newPos.z);
+    }
 }
 
 void MWScene::addObject (const std::string& handle, const std::string& mesh,
@@ -128,8 +139,9 @@ void MWScene::removeObject (const std::string& handle)
 
 }
 
-void MWScene::moveObject (const std::string& handle, const Ogre::Vector3& position)
+void MWScene::moveObject (const std::string& handle, const Ogre::Vector3& position, bool updatePhysics)
 {
+    rend.getScene()->getSceneNode (handle)->setPosition (position);
 
 }
 
diff --git a/apps/openmw/mwrender/mwscene.hpp b/apps/openmw/mwrender/mwscene.hpp
index e408738af7..e974e0342e 100644
--- a/apps/openmw/mwrender/mwscene.hpp
+++ b/apps/openmw/mwrender/mwscene.hpp
@@ -5,6 +5,7 @@
 #include <openengine/ogre/renderer.hpp>
 
 #include <vector>
+#include <string>
 
 namespace Ogre
 {
@@ -60,11 +61,8 @@ namespace MWRender
         std::pair<std::string, float> getFacedHandle (MWWorld::World& world);
 
         /// Run physics simulation and modify \a world accordingly.
-        void doPhysics (float duration, MWWorld::World& world);
-
-        /// Inform phyiscs system about desired velocity vectors for actors
-        /// (in Morrowind coordinates).
-        void setMovement (const std::vector<std::string, Ogre::Vector3>& actors);
+        void doPhysics (float duration, MWWorld::World& world,
+            const std::vector<std::pair<std::string, Ogre::Vector3> >& actors);
 
         /// Add object to physics system.
         void addObject (const std::string& handle, const std::string& mesh,
@@ -78,7 +76,7 @@ namespace MWRender
         void removeObject (const std::string& handle);
 
         /// Move object.
-        void moveObject (const std::string& handle, const Ogre::Vector3& position);
+        void moveObject (const std::string& handle, const Ogre::Vector3& position, bool updatePhysics);
 
         /// Change object's orientation.
         void rotateObject (const std::string& handle, const Ogre::Quaternion& rotation);
diff --git a/apps/openmw/mwrender/player.cpp b/apps/openmw/mwrender/player.cpp
index badc77bdaa..7dcaeee096 100644
--- a/apps/openmw/mwrender/player.cpp
+++ b/apps/openmw/mwrender/player.cpp
@@ -3,6 +3,7 @@
 
 namespace MWRender
 {
-    Player::Player (Ogre::Camera *camera) : mCamera (camera)
+    Player::Player (Ogre::Camera *camera, const std::string& handle)
+    : mCamera (camera), mHandle (handle)
     {}
 }
diff --git a/apps/openmw/mwrender/player.hpp b/apps/openmw/mwrender/player.hpp
index a8f8d24fec..f2d8191162 100644
--- a/apps/openmw/mwrender/player.hpp
+++ b/apps/openmw/mwrender/player.hpp
@@ -1,6 +1,8 @@
 #ifndef GAME_MWRENDER_PLAYER_H
 #define GAME_MWRENDER_PLAYER_H
 
+#include <iostream>
+
 namespace Ogre
 {
     class Camera;
@@ -12,12 +14,15 @@ namespace MWRender
     class Player
     {
         Ogre::Camera *mCamera;
+        std::string mHandle;
 
             public:
 
-                Player (Ogre::Camera *camera);
+                Player (Ogre::Camera *camera, const std::string& handle);
 
                 Ogre::Camera *getCamera() { return mCamera; }
+
+                std::string getHandle() const { return mHandle; }
     };
 }
 
diff --git a/apps/openmw/mwscript/cellextensions.cpp b/apps/openmw/mwscript/cellextensions.cpp
index 4d30254693..a84de3edd7 100644
--- a/apps/openmw/mwscript/cellextensions.cpp
+++ b/apps/openmw/mwscript/cellextensions.cpp
@@ -53,7 +53,7 @@ namespace MWScript
                     else
                     {
                         pos.pos[0] = pos.pos[1] = 0;
-                        context.getWorld().changeCell (cell, pos);
+                        context.getWorld().changeToInteriorCell (cell, pos);
                     }
                 }
         };
diff --git a/apps/openmw/mwworld/actionteleport.cpp b/apps/openmw/mwworld/actionteleport.cpp
index 3db2948184..207e2c50e9 100644
--- a/apps/openmw/mwworld/actionteleport.cpp
+++ b/apps/openmw/mwworld/actionteleport.cpp
@@ -16,6 +16,6 @@ namespace MWWorld
         if (mCellName.empty())
             environment.mWorld->changeToExteriorCell (mPosition);
         else
-            environment.mWorld->changeCell (mCellName, mPosition);
+            environment.mWorld->changeToInteriorCell (mCellName, mPosition);
     }
 }
diff --git a/apps/openmw/mwworld/cellfunctors.hpp b/apps/openmw/mwworld/cellfunctors.hpp
new file mode 100644
index 0000000000..5ff801f01c
--- /dev/null
+++ b/apps/openmw/mwworld/cellfunctors.hpp
@@ -0,0 +1,31 @@
+#ifndef GAME_MWWORLD_CELLFUNCTORS_H
+#define GAME_MWWORLD_CELLFUNCTORS_H
+
+#include <vector>
+#include <string>
+
+#include "refdata.hpp"
+
+namespace ESM
+{
+    class CellRef;
+}
+
+namespace MWWorld
+{
+    /// List all (Ogre-)handles.
+    struct ListHandles
+    {
+        std::vector<std::string> mHandles;
+
+        bool operator() (ESM::CellRef& ref, RefData& data)
+        {
+            std::string handle = data.getHandle();
+            if (!handle.empty())
+                mHandles.push_back (handle);
+            return true;
+        }
+    };
+}
+
+#endif
diff --git a/apps/openmw/mwworld/class.cpp b/apps/openmw/mwworld/class.cpp
index 837b3b2942..670cf90b20 100644
--- a/apps/openmw/mwworld/class.cpp
+++ b/apps/openmw/mwworld/class.cpp
@@ -3,6 +3,8 @@
 
 #include <stdexcept>
 
+#include <OgreVector3.h>
+
 #include "ptr.hpp"
 #include "nullaction.hpp"
 
@@ -112,6 +114,16 @@ namespace MWWorld
         return 0;
     }
 
+    MWMechanics::Movement& Class::getMovementSettings (const Ptr& ptr) const
+    {
+        throw std::runtime_error ("movement settings not supported by class");
+    }
+
+    Ogre::Vector3 Class::getMovementVector (const Ptr& ptr) const
+    {
+        return Ogre::Vector3 (0, 0, 0);
+    }
+
     const Class& Class::get (const std::string& key)
     {
         std::map<std::string, boost::shared_ptr<Class> >::const_iterator iter = sClasses.find (key);
diff --git a/apps/openmw/mwworld/class.hpp b/apps/openmw/mwworld/class.hpp
index 51c727aad7..8ad9ba58fe 100644
--- a/apps/openmw/mwworld/class.hpp
+++ b/apps/openmw/mwworld/class.hpp
@@ -10,6 +10,11 @@
 #include "containerstore.hpp"
 #include "refdata.hpp"
 
+namespace Ogre
+{
+    class Vector3;
+}
+
 namespace MWRender
 {
     class CellRenderImp;
@@ -19,6 +24,7 @@ namespace MWMechanics
 {
     struct CreatureStats;
     struct NpcStats;
+    struct Movement;
 }
 
 namespace MWWorld
@@ -126,6 +132,13 @@ namespace MWWorld
             virtual float getSpeed (const Ptr& ptr) const;
             ///< Return movement speed.
 
+            virtual MWMechanics::Movement& getMovementSettings (const Ptr& ptr) const;
+            ///< Return desired movement.
+
+            virtual Ogre::Vector3 getMovementVector (const Ptr& ptr) const;
+            ///< Return desired movement vector (determined based on movement settings,
+            /// stance and stats).
+
             static const Class& get (const std::string& key);
             ///< If there is no class for this \a key, an exception is thrown.
 
diff --git a/apps/openmw/mwworld/doingphysics.cpp b/apps/openmw/mwworld/doingphysics.cpp
index 63c6244e99..27fb27c576 100644
--- a/apps/openmw/mwworld/doingphysics.cpp
+++ b/apps/openmw/mwworld/doingphysics.cpp
@@ -4,6 +4,7 @@
 namespace MWWorld
 {
     int DoingPhysics::sCounter = 0;
+    int DoingPhysics::sSuppress = 0;
 
     DoingPhysics::DoingPhysics()
     {
@@ -17,6 +18,16 @@ namespace MWWorld
 
     bool DoingPhysics::isDoingPhysics()
     {
-        return sCounter>0;
+        return sCounter>0 || sSuppress>0;
+    }
+
+    SuppressDoingPhysics::SuppressDoingPhysics()
+    {
+        ++DoingPhysics::sSuppress;
+    }
+
+    SuppressDoingPhysics::~SuppressDoingPhysics()
+    {
+        --DoingPhysics::sSuppress;
     }
 }
diff --git a/apps/openmw/mwworld/doingphysics.hpp b/apps/openmw/mwworld/doingphysics.hpp
index 7ea2b0f418..d38e4bb15d 100644
--- a/apps/openmw/mwworld/doingphysics.hpp
+++ b/apps/openmw/mwworld/doingphysics.hpp
@@ -3,10 +3,13 @@
 
 namespace MWWorld
 {
-    ///< Scope guard for blocking physics updates during physics simulation.
+    class SuppressDoingPhysics;
+
+    /// Scope guard for blocking physics updates during physics simulation.
     class DoingPhysics
     {
             static int sCounter;
+            static int sSuppress;
 
         private:
 
@@ -20,6 +23,23 @@ namespace MWWorld
             ~DoingPhysics();
 
             static bool isDoingPhysics();
+
+        friend  class SuppressDoingPhysics;
+    };
+
+    /// Scope guard for temporarily lifting the block issues by DoingPhysics
+    class SuppressDoingPhysics
+    {
+        private:
+
+            SuppressDoingPhysics (const SuppressDoingPhysics&);
+            SuppressDoingPhysics& operator= (const SuppressDoingPhysics&);
+
+        public:
+
+            SuppressDoingPhysics();
+
+            ~SuppressDoingPhysics();
     };
 }
 
diff --git a/apps/openmw/mwworld/player.cpp b/apps/openmw/mwworld/player.cpp
index b0805269dd..c4b17f48fd 100644
--- a/apps/openmw/mwworld/player.cpp
+++ b/apps/openmw/mwworld/player.cpp
@@ -4,20 +4,21 @@
 #include "../mwrender/player.hpp"
 
 #include "world.hpp"
+#include "class.hpp"
 
 namespace MWWorld
 {
     Player::Player (MWRender::Player *renderer, const ESM::NPC *player, MWWorld::World& world) :
-      mCellStore (0), mRenderer (renderer), mWorld (world), mClass (0), mCollisionMode (true)
+      mCellStore (0), mRenderer (renderer), mWorld (world), mClass (0), mCollisionMode (true),
+      mAutoMove (false), mForwardBackward (0)
     {
         mPlayer.base = player;
         mName = player->name;
         mMale = !(player->flags & ESM::NPC::Female);
         mRace = player->race;
         mPlayer.ref.pos.pos[0] = mPlayer.ref.pos.pos[1] = mPlayer.ref.pos.pos[2] = 0;
+        mPlayer.mData.setHandle (renderer->getHandle());
         mClass = new ESM::Class (*world.getStore().classes.find (player->cls));
-	mAutoMove = false;
-	misWalking = false;
     }
 
     Player::~Player()
@@ -64,4 +65,45 @@ namespace MWWorld
         mClass = new_class;
     }
 
+    void Player::setAutoMove (bool enable)
+    {
+        MWWorld::Ptr ptr = getPlayer();
+
+        mAutoMove = enable;
+
+        int value = mForwardBackward;
+
+        if (mAutoMove)
+            value = 1;
+
+        MWWorld::Class::get (ptr).getMovementSettings (ptr).mForwardBackward = value;
+    }
+
+    void Player::setLeftRight (int value)
+    {
+        MWWorld::Ptr ptr = getPlayer();
+
+        MWWorld::Class::get (ptr).getMovementSettings (ptr).mLeftRight = value;
+    }
+
+    void Player::setForwardBackward (int value)
+    {
+        MWWorld::Ptr ptr = getPlayer();
+
+        mForwardBackward = value;
+
+        if (mAutoMove)
+            value = 1;
+
+        MWWorld::Class::get (ptr).getMovementSettings (ptr).mForwardBackward = value;
+    }
+
+    void Player::toggleRunning()
+    {
+        MWWorld::Ptr ptr = getPlayer();
+
+        bool running = MWWorld::Class::get (ptr).getStance (ptr, MWWorld::Class::Run, true);
+
+        MWWorld::Class::get (ptr).setStance (ptr, MWWorld::Class::Run, !running);
+    }
 }
diff --git a/apps/openmw/mwworld/player.hpp b/apps/openmw/mwworld/player.hpp
index 5174c2d33d..1b28baf9b9 100644
--- a/apps/openmw/mwworld/player.hpp
+++ b/apps/openmw/mwworld/player.hpp
@@ -30,9 +30,8 @@ namespace MWWorld
         std::string mBirthsign;
         ESM::Class *mClass;
         bool mCollisionMode;
-
         bool mAutoMove;
-        bool misWalking;//Testing...
+        int mForwardBackward;
 
     public:
 
@@ -117,33 +116,13 @@ namespace MWWorld
             return mAutoMove;
         }
 
-        void setAutoMove(bool setMe)
-        {
-            mAutoMove = setMe;
-        }
+        void setAutoMove (bool enable);
 
-//NOTE: we don't have speed being calculated yet, so for now this function only requires a frame duration.
-/// <param name="duration">float value representing time since last call</param>
-        void executeAutoMove(float duration)
-        {
-            float X_Val =  0.0f;
-            float Y_Val = 0.0f;
-            float Z_Val = 300.0f * duration * -1.0f;
-            if (mAutoMove == true)
-            {
-                moveRel(X_Val, Y_Val, Z_Val);
-            }
-        }
+        void setLeftRight (int value);
 
-        bool getisWalking()
-        {
-            return misWalking;
-        }
+        void setForwardBackward (int value);
 
-        void setisWalking(bool setMe)
-        {
-            misWalking = setMe;
-        }
+        void toggleRunning();
     };
 }
 #endif
diff --git a/apps/openmw/mwworld/refdata.hpp b/apps/openmw/mwworld/refdata.hpp
index a8cf3aed80..a9613248e6 100644
--- a/apps/openmw/mwworld/refdata.hpp
+++ b/apps/openmw/mwworld/refdata.hpp
@@ -9,6 +9,7 @@
 
 #include "../mwmechanics/creaturestats.hpp"
 #include "../mwmechanics/npcstats.hpp"
+#include "../mwmechanics/movement.hpp"
 
 #include "containerstore.hpp"
 
@@ -36,6 +37,7 @@ namespace MWWorld
             // are never copied outside of container operations.
             boost::shared_ptr<MWMechanics::CreatureStats> mCreatureStats;
             boost::shared_ptr<MWMechanics::NpcStats> mNpcStats;
+            boost::shared_ptr<MWMechanics::Movement> mMovement;
 
             boost::shared_ptr<ContainerStore<RefData> > mContainerStore;
 
@@ -102,6 +104,11 @@ namespace MWWorld
                 return mNpcStats;
             }
 
+            boost::shared_ptr<MWMechanics::Movement>& getMovement()
+            {
+                return mMovement;
+            }
+
             boost::shared_ptr<ContainerStore<RefData> >& getContainerStore()
             {
                 return mContainerStore;
diff --git a/apps/openmw/mwworld/world.cpp b/apps/openmw/mwworld/world.cpp
index 52547adc25..44a16aee71 100644
--- a/apps/openmw/mwworld/world.cpp
+++ b/apps/openmw/mwworld/world.cpp
@@ -22,6 +22,7 @@
 #include "refdata.hpp"
 #include "globals.hpp"
 #include "doingphysics.hpp"
+#include "cellfunctors.hpp"
 
 namespace
 {
@@ -271,6 +272,15 @@ namespace MWWorld
 
     void World::unloadCell (CellRenderCollection::iterator iter)
     {
+        ListHandles functor;
+        iter->first->forEach (functor);
+
+        { // silence annoying g++ warning
+            for (std::vector<std::string>::const_iterator iter (functor.mHandles.begin());
+                iter!=functor.mHandles.end(); ++iter)
+                mScene.removeObject (*iter);
+        }
+
         removeScripts (iter->first);
         mEnvironment.mMechanicsManager->dropActors (iter->first);
         iter->second->destroy();
@@ -295,9 +305,12 @@ namespace MWWorld
         }
     }
 
-    void World::playerCellChange (Ptr::CellStore *cell, const ESM::Position& position)
+    void World::playerCellChange (Ptr::CellStore *cell, const ESM::Position& position,
+        bool adjustPlayerPos)
     {
-        mPlayer->setPos (position.pos[0], position.pos[1], position.pos[2], true);
+        if (adjustPlayerPos)
+            mPlayer->setPos (position.pos[0], position.pos[1], position.pos[2], true);
+
         mPlayer->setCell (cell);
         // TODO orientation
 
@@ -316,8 +329,87 @@ namespace MWWorld
         }
     }
 
+    void World::changeCell (int X, int Y, const ESM::Position& position, bool adjustPlayerPos)
+    {
+        SuppressDoingPhysics scopeGuard;
+
+        // remove active
+        mEnvironment.mMechanicsManager->removeActor (mPlayer->getPlayer());
+
+        CellRenderCollection::iterator active = mActiveCells.begin();
+
+        while (active!=mActiveCells.end())
+        {
+            if (!(active->first->cell->data.flags & ESM::Cell::Interior))
+            {
+                if (std::abs (X-active->first->cell->data.gridX)<=1 &&
+                    std::abs (Y-active->first->cell->data.gridY)<=1)
+                {
+                    // keep cells within the new 3x3 grid
+                    ++active;
+                    continue;
+                }
+            }
+
+            unloadCell (active++);
+        }
+
+        // Load cells
+        for (int x=X-1; x<=X+1; ++x)
+            for (int y=Y-1; y<=Y+1; ++y)
+            {
+                CellRenderCollection::iterator iter = mActiveCells.begin();
+
+                while (iter!=mActiveCells.end())
+                {
+                    assert (!(iter->first->cell->data.flags & ESM::Cell::Interior));
+
+                    if (x==iter->first->cell->data.gridX &&
+                        y==iter->first->cell->data.gridY)
+                        break;
+
+                    ++iter;
+                }
+
+                if (iter==mActiveCells.end())
+                {
+                    mExteriors[std::make_pair (x, y)].loadExt (x, y, mStore, mEsm);
+                    Ptr::CellStore *cell = &mExteriors[std::make_pair (x, y)];
+
+                    loadCell (cell, new MWRender::ExteriorCellRender (*cell, mEnvironment, mScene));
+                }
+            }
+
+        // find current cell
+        CellRenderCollection::iterator iter = mActiveCells.begin();
+
+        while (iter!=mActiveCells.end())
+        {
+            assert (!(iter->first->cell->data.flags & ESM::Cell::Interior));
+
+            if (X==iter->first->cell->data.gridX &&
+                Y==iter->first->cell->data.gridY)
+                break;
+
+            ++iter;
+        }
+
+        assert (iter!=mActiveCells.end());
+
+        mCurrentCell = iter->first;
+
+        // adjust player
+        playerCellChange (&mExteriors[std::make_pair (X, Y)], position, adjustPlayerPos);
+
+        // Sky system
+        adjustSky();
+
+        mCellChanged = true;
+    }
+
     World::World (OEngine::Render::OgreRenderer& renderer, const boost::filesystem::path& dataDir,
-        const std::string& master, const boost::filesystem::path& resDir, bool newGame, Environment& environment)
+        const std::string& master, const boost::filesystem::path& resDir,
+        bool newGame, Environment& environment)
     : mSkyManager (0), mScene (renderer), mPlayer (0), mCurrentCell (0), mGlobalVariables (0),
       mSky (false), mCellChanged (false), mEnvironment (environment)
     {
@@ -331,6 +423,7 @@ namespace MWWorld
         mStore.load (mEsm);
 
         mPlayer = new MWWorld::Player (mScene.getPlayer(), mStore.npcs.find ("player"), *this);
+        mScene.addActor (mPlayer->getPlayer().getRefData().getHandle(), "", Ogre::Vector3 (0, 0, 0));
 
         // global variables
         mGlobalVariables = new Globals (mStore);
@@ -418,7 +511,8 @@ namespace MWWorld
 
     Ptr World::getPtrViaHandle (const std::string& handle)
     {
-        // TODO player
+        if (mPlayer->getPlayer().getRefData().getHandle()==handle)
+            return mPlayer->getPlayer();
 
         for (CellRenderCollection::iterator iter (mActiveCells.begin());
             iter!=mActiveCells.end(); ++iter)
@@ -587,8 +681,10 @@ namespace MWWorld
         return mGlobalVariables->getInt ("timescale");
     }
 
-    void World::changeCell (const std::string& cellName, const ESM::Position& position)
+    void World::changeToInteriorCell (const std::string& cellName, const ESM::Position& position)
     {
+        SuppressDoingPhysics scopeGuard;
+
         // remove active
         CellRenderCollection::iterator active = mActiveCells.begin();
 
@@ -614,89 +710,14 @@ namespace MWWorld
         //currentRegion->name = "";
     }
 
-    void World::changeCell (int X, int Y, const ESM::Position& position)
-    {
-        // remove active
-        CellRenderCollection::iterator active = mActiveCells.begin();
-
-        while (active!=mActiveCells.end())
-        {
-            if (!(active->first->cell->data.flags & ESM::Cell::Interior))
-            {
-                if (std::abs (X-active->first->cell->data.gridX)<=1 &&
-                    std::abs (Y-active->first->cell->data.gridY)<=1)
-                {
-                    // keep cells within the new 3x3 grid
-                    ++active;
-                    continue;
-                }
-            }
-
-            unloadCell (active++);
-        }
-
-        // Load cells
-        for (int x=X-1; x<=X+1; ++x)
-            for (int y=Y-1; y<=Y+1; ++y)
-            {
-                CellRenderCollection::iterator iter = mActiveCells.begin();
-
-                while (iter!=mActiveCells.end())
-                {
-                    assert (!(iter->first->cell->data.flags & ESM::Cell::Interior));
-
-                    if (x==iter->first->cell->data.gridX &&
-                        y==iter->first->cell->data.gridY)
-                        break;
-
-                    ++iter;
-                }
-
-                if (iter==mActiveCells.end())
-                {
-                    mExteriors[std::make_pair (x, y)].loadExt (x, y, mStore, mEsm);
-                    Ptr::CellStore *cell = &mExteriors[std::make_pair (x, y)];
-
-                    loadCell (cell, new MWRender::ExteriorCellRender (*cell, mEnvironment, mScene));
-                }
-            }
-
-        // find current cell
-        CellRenderCollection::iterator iter = mActiveCells.begin();
-
-        while (iter!=mActiveCells.end())
-        {
-            assert (!(iter->first->cell->data.flags & ESM::Cell::Interior));
-
-            if (X==iter->first->cell->data.gridX &&
-                Y==iter->first->cell->data.gridY)
-                break;
-
-            ++iter;
-        }
-
-        assert (iter!=mActiveCells.end());
-
-        mCurrentCell = iter->first;
-
-        // adjust player
-        playerCellChange (&mExteriors[std::make_pair (X, Y)], position);
-
-        // Sky system
-        adjustSky();
-
-        mCellChanged = true;
-    }
-
-
- void World::changeToExteriorCell (const ESM::Position& position)
+    void World::changeToExteriorCell (const ESM::Position& position)
     {
         int x = 0;
         int y = 0;
 
         positionToIndex (position.pos[0], position.pos[1], x, y);
 
-        changeCell (x, y, position);
+        changeCell (x, y, position, true);
     }
 
     const ESM::Cell *World::getExterior (const std::string& cellName) const
@@ -722,6 +743,7 @@ namespace MWWorld
 
         return 0;
     }
+
     void World::markCellAsUnchanged()
     {
         mCellChanged = false;
@@ -781,15 +803,16 @@ namespace MWWorld
 
                     if (mCurrentCell->cell->data.gridX!=cellX || mCurrentCell->cell->data.gridY!=cellY)
                     {
-                        changeCell (cellX, cellY, mPlayer->getPlayer().getCellRef().pos);
-
-                        if (!DoingPhysics::isDoingPhysics())
-                            mScene.moveObject (ptr.getRefData().getHandle(), Ogre::Vector3 (x, y, z));
+                        changeCell (cellX, cellY, mPlayer->getPlayer().getCellRef().pos, false);
                     }
+
                 }
             }
         }
 
+        mScene.moveObject (ptr.getRefData().getHandle(), Ogre::Vector3 (x, y, z),
+            !DoingPhysics::isDoingPhysics());
+
         // TODO cell change for non-player ref
     }
 
@@ -821,4 +844,10 @@ namespace MWWorld
         if (y<0)
             --cellY;
     }
+
+    void World::doPhysics (const std::vector<std::pair<std::string, Ogre::Vector3> >& actors,
+        float duration)
+    {
+        mScene.doPhysics (duration, *this, actors);
+    }
 }
diff --git a/apps/openmw/mwworld/world.hpp b/apps/openmw/mwworld/world.hpp
index ce66a63d7e..15b6df233b 100644
--- a/apps/openmw/mwworld/world.hpp
+++ b/apps/openmw/mwworld/world.hpp
@@ -14,6 +14,11 @@
 #include "ptr.hpp"
 #include "globals.hpp"
 
+namespace Ogre
+{
+    class Vector3;
+}
+
 namespace ESM
 {
     struct Position;
@@ -83,14 +88,19 @@ namespace MWWorld
 
             void loadCell (Ptr::CellStore *cell, MWRender::CellRender *render);
 
-            void playerCellChange (Ptr::CellStore *cell, const ESM::Position& position);
+            void playerCellChange (Ptr::CellStore *cell, const ESM::Position& position,
+                bool adjustPlayerPos = true);
 
             void adjustSky();
 
+            void changeCell (int X, int Y, const ESM::Position& position, bool adjustPlayerPos);
+            ///< Move from exterior to interior or from interior cell to a different
+            /// interior cell.
         public:
 
            World (OEngine::Render::OgreRenderer& renderer, const boost::filesystem::path& dataDir,
-                const std::string& master, const boost::filesystem::path& resDir, bool newGame, Environment& environment);
+                const std::string& master, const boost::filesystem::path& resDir, bool newGame,
+                Environment& environment);
 
             ~World();
 
@@ -138,12 +148,11 @@ namespace MWWorld
 
             float getTimeScaleFactor() const;
 
-            void changeCell (const std::string& cellName, const ESM::Position& position);
-            ///< works only for interior cells currently.
-
-            void changeCell (int X, int Y, const ESM::Position& position);
+            void changeToInteriorCell (const std::string& cellName, const ESM::Position& position);
+            ///< Move to interior cell.
 
             void changeToExteriorCell (const ESM::Position& position);
+            ///< Move to exterior cell.
 
             const ESM::Cell *getExterior (const std::string& cellName) const;
             ///< Return a cell matching the given name or a 0-pointer, if there is no such cell.
@@ -162,6 +171,10 @@ namespace MWWorld
 
             void positionToIndex (float x, float y, int &cellX, int &cellY) const;
             ///< Convert position to cell numbers
+
+            void doPhysics (const std::vector<std::pair<std::string, Ogre::Vector3> >& actors,
+                float duration);
+            ///< Run physics simulation and modify \a world accordingly.
     };
 }
 
diff --git a/components/esm_store/cell_store.hpp b/components/esm_store/cell_store.hpp
index 6acd81dcec..43860dff38 100644
--- a/components/esm_store/cell_store.hpp
+++ b/components/esm_store/cell_store.hpp
@@ -133,7 +133,48 @@ namespace ESMS
         loadRefs(store, esm);
     }
 
+    /// Call functor (ref) for each reference. functor must return a bool. Returning
+    /// false will abort the iteration.
+    /// \return Iteration completed?
+    template<class Functor>
+    bool forEach (Functor& functor)
+    {
+        return
+            forEachImp (functor, activators) &&
+            forEachImp (functor, potions) &&
+            forEachImp (functor, appas) &&
+            forEachImp (functor, armors) &&
+            forEachImp (functor, books) &&
+            forEachImp (functor, clothes) &&
+            forEachImp (functor, containers) &&
+            forEachImp (functor, creatures) &&
+            forEachImp (functor, doors) &&
+            forEachImp (functor, ingreds) &&
+            forEachImp (functor, creatureLists) &&
+            forEachImp (functor, itemLists) &&
+            forEachImp (functor, lights) &&
+            forEachImp (functor, lockpicks) &&
+            forEachImp (functor, miscItems) &&
+            forEachImp (functor, npcs) &&
+            forEachImp (functor, probes) &&
+            forEachImp (functor, repairs) &&
+            forEachImp (functor, statics) &&
+            forEachImp (functor, weapons);
+    }
+
   private:
+
+    template<class Functor, class List>
+    bool forEachImp (Functor& functor, List& list)
+    {
+        for (typename List::List::iterator iter (list.list.begin()); iter!=list.list.end();
+            ++iter)
+            if (!functor (iter->ref, iter->mData))
+                return false;
+
+        return true;
+    }
+
     void loadRefs(const ESMStore &store, ESMReader &esm)
     {
       assert (cell);