diff --git a/bin/nuxfs b/bin/nuxfs
index 6ba33cf..8979934 100755
--- a/bin/nuxfs
+++ b/bin/nuxfs
@@ -26,7 +26,7 @@ function task.verify {
 			local cdir=$(dirname "$1")
 			MAT_TARGET=$(realpath "$cdir/$TARGET")
 			if test "$MAT_REAL" = "$MAT_TARGET"; then
-				nuxfs.warning "$1" "links to target '$2', but is using different definition."
+				nuxfs.warning "$1" "is using different definition for target '$2'"
 			else
 				nuxfs.error "$1" "links to $REAL_LINK instead of $TARGET"
 				return
@@ -51,7 +51,8 @@ function task.verify {
 	def.notexists() {
 		nuxfs.error "$1" "does not exists".
 	}
-	nuxfs.dsl.execute .nuxfs
+	nuxfs.initcfg
+	nuxfs.dsl.execute "$NUXFS_DEF" "$NUXFS_DEF_DIR" "$WORKDIR_ABSOLUTE"
 }
 
 ##  create - Creates missing files as described in nuxfs definition.
@@ -75,7 +76,8 @@ function task.create {
 		popd > /dev/null;
 	}
 
-	nuxfs.dsl.execute $SUFFIX
+	nuxfs.initcfg
+	nuxfs.dsl.execute "$NUXFS_DEF" "$NUXFS_DEF_DIR" "$WORKDIR_ABSOLUTE"
 }
 
 ##  init - Initializes a directory using template
@@ -129,3 +131,18 @@ function nuxfs.template.list {
 	done;
 	popd > /dev/null;
 }
+
+
+function nuxfs.initcfg {
+
+	WORKDIR=$(pwd);
+	NUXFS_DEF=$(nuxfs.closest $SUFFIX);
+
+	if [ "$NUXFS_DEF" = "" ]; then
+		nuxfs.error $(pwd) "No nuxfs configuration found."
+		exit 1;
+	fi;
+	NUXFS_DEF_DIR=$(dirname $NUXFS_DEF);
+	WORKDIR_RELATIVE=$(realpath "$WORKDIR" --relative-to "$NUXFS_DEF_DIR")
+	WORKDIR_ABSOLUTE=$(realpath "$WORKDIR")
+}
diff --git a/inc/nuxfs.dsl.inc.sh b/inc/nuxfs.dsl.inc.sh
index ca047ed..700b24d 100644
--- a/inc/nuxfs.dsl.inc.sh
+++ b/inc/nuxfs.dsl.inc.sh
@@ -21,20 +21,24 @@ function exec.if.function {
 function nuxfs.dsl.command {
 	CMD=$1;
 	localFile=$(nuxfs.relative "$2");
-	shift; shift;
 
-	nux.log debug  Processing $CMD "$localFile" $@;
+
+	shift; shift;
+	nux.log trace  Processing $CMD "$localFile" $@;
 
 	exec.if.function $CMD.pre def.pre "$localFile" "$@";
 
-	nux.log debug  Working file: $NC_White$localFile;
+	if [[ "$NESTED_DIR" = "$localFile"* ||  "$localFile" = "$NESTED_DIR"*  ]]; then
+		nux.log debug $localFile is affected by $NESTED_DIR;
+
 	if nuxfs.file.exists "$localFile"; then
-		nux.log debug  "File $localFile exits";
+		nux.log debug  "File $NC_White$localFile$NC_No exits";
 		exec.if.function $CMD.exists def.exists "$localFile" "$@";
 	else
-		nux.log debug  "File $localFile does not exists";
+		nux.log debug  "File $NC_White$localFile$NC_No does not exists";
 		exec.if.function $CMD.notexists def.notexists "$localFile" "$@";
   fi
+	fi
 	exec.if.function $CMD.post def.post "$localFile" "$@";
 }
 
@@ -91,11 +95,15 @@ function nuxfs.dsl.keywords {
 
 function nuxfs.dsl.execute {
   nuxfs.dsl.keywords
+	local DEF="$1";
+	local DIR="$2";
+	NESTED_DIR="$(realpath "$3")/";
+	nux.log debug "Working Directory: $DIR , Nested Directory: $NESTED_DIR"
   declare -a DIR_ARRAY
-  DIR_ARRAY[0]=.
-  if test -e "$1"; then
-		source $1;
+  DIR_ARRAY[0]=$DIR
+  if test -e "$DEF"; then
+		source "$DEF";
 	else
-		nuxfs.error "$1"  Definition file does not exists.
+		nuxfs.error "$DEF"  Definition file does not exists.
 	fi
 }
diff --git a/inc/nuxfs.inc.sh b/inc/nuxfs.inc.sh
index 47920ea..bb357dc 100644
--- a/inc/nuxfs.inc.sh
+++ b/inc/nuxfs.inc.sh
@@ -33,3 +33,16 @@ function nuxfs.dir.push {
 function nuxfs.file.exists {
 	test -e "$1" -o -h "$1";
 }
+
+function nuxfs.closest {
+  cmd=$1;
+  cdir=$(pwd);
+	nux.log trace "Searching in: " $cdir;
+	until [ -e "$cdir/$1" -o "$cdir" == "/" ]; do
+		 cdir=$(dirname "$cdir");
+		 nux.log trace "Searching in: " $cdir;
+	 done;
+	 if [ -e "$cdir/$1" ]; then
+		 echo "$cdir/$1";
+	 fi
+}