--- a/src/core/ngx_hunk.c
+++ b/src/core/ngx_hunk.c
@@ -144,16 +144,31 @@ void ngx_chain_update_chains(ngx_chain_t
     *out = NULL;
 
     while (*busy) {
-        if ((*busy)->hunk->pos != (*busy)->hunk->last) {
+        if (ngx_hunk_size((*busy)->hunk) > 0) {
             break;
         }
+#if 0
+        if ((*busy)->hunk->type & NGX_HUNK_IN_MEMORY) {
+            if ((*busy)->hunk->pos != (*busy)->hunk->last) {
+                break;
+            }
+
+        } else {
+            if ((*busy)->hunk->file_pos != (*busy)->hunk->file_last) {
+                break;
+            }
+        }
+#endif
 
 #if (HAVE_WRITE_ZEROCOPY)
         if ((*busy)->hunk->type & NGX_HUNK_ZEROCOPY_BUSY) {
             break;
         }
 #endif
-        if (((*busy)->hunk->type & NGX_HUNK_TEMP) == 0) {
+
+        /* TODO: change to hunk->tag */
+
+        if (!((*busy)->hunk->type & NGX_HUNK_TEMP)) {
             *busy = (*busy)->next;
             continue;
         }

--- a/src/event/ngx_event_proxy.c
+++ b/src/event/ngx_event_proxy.c
@@ -12,7 +12,6 @@ ngx_inline static void ngx_add_after_par
                                                            ngx_chain_t *ce);
 
 
-
 int ngx_event_proxy(ngx_event_proxy_t *p, int do_write)
 {
     for ( ;; ) {
@@ -105,6 +104,7 @@ int ngx_event_proxy_read_upstream(ngx_ev
 
                 chain = p->free_raw_hunks;
                 p->free_raw_hunks = NULL;
+ngx_log_debug(p->log, "FREE: %08X:%d" _ chain->hunk->pos _ chain->hunk->end - chain->hunk->last);
 
             } else if (p->hunks < p->bufs.num) {
 
@@ -173,6 +173,8 @@ int ngx_event_proxy_read_upstream(ngx_ev
 
             ngx_log_debug(p->log, "recv_chain: %d" _ n);
 
+            p->free_raw_hunks = chain;
+
             if (n == NGX_ERROR) {
                 p->upstream_error = 1;
                 return NGX_ERROR;
@@ -186,15 +188,15 @@ int ngx_event_proxy_read_upstream(ngx_ev
             p->read = 1;
 
             if (n == 0) {
-                p->free_raw_hunks = chain;
                 p->upstream_eof = 1;
-
                 break;
             }
 
         }
 
-        for (ce = chain; ce && n > 0; ce = ce->next) {
+        ce = chain;
+
+        while (ce && n > 0) {
 
             ngx_remove_shadow_links(ce->hunk);
 
@@ -208,16 +210,17 @@ int ngx_event_proxy_read_upstream(ngx_ev
                 }
 
                 n -= size;
-
-                chain = ce->next;
+                ce = ce->next;
 
             } else {
+ngx_log_debug(p->log, "PART: %08X:%d:%d" _ ce->hunk->pos _ ce->hunk->last - ce->hunk->pos _ n);
                 ce->hunk->last += n;
+ngx_log_debug(p->log, "PART: %08X:%d" _ ce->hunk->pos _ ce->hunk->end - ce->hunk->last);
                 n = 0;
             }
         }
 
-        p->free_raw_hunks = chain;
+        p->free_raw_hunks = ce;
     }
 
     if ((p->upstream_eof || p->upstream_error) && p->free_raw_hunks) {
@@ -290,7 +293,8 @@ int ngx_event_proxy_write_to_downstream(
         rc = p->output_filter(p->output_ctx, out->hunk);
 
         if (rc == NGX_ERROR) {
-            /* TODO */
+            p->downstream_error = 1;
+            return NGX_ERROR;
         }
 
         ngx_chain_update_chains(&p->free, &p->busy, &out);
@@ -305,14 +309,16 @@ int ngx_event_proxy_write_to_downstream(
         /* add the free shadow raw hunks to p->free_raw_hunks */
 
         for (ce = p->free; ce; ce = ce->next) {
+ngx_log_debug(p->log, "SHADOW %08X" _ ce->hunk->shadow);
             if (ce->hunk->type & NGX_HUNK_LAST_SHADOW) {
                 h = ce->hunk->shadow;
                 /* THINK NEEDED ??? */ h->pos = h->last = h->start;
                 h->shadow = NULL;
-                ngx_alloc_ce_and_set_hunk(te, ce->hunk->shadow, p->pool,
-                                          NGX_ABORT);
+                ngx_alloc_ce_and_set_hunk(te, h, p->pool, NGX_ABORT);
                 ngx_add_after_partially_filled_hunk(&p->free_raw_hunks, te);
 
+ngx_log_debug(p->log, "RAW %08X" _ h->pos);
+
                 ce->hunk->type &= ~NGX_HUNK_LAST_SHADOW;
             }
             ce->hunk->shadow = NULL;
@@ -326,7 +332,17 @@ int ngx_event_proxy_write_to_downstream(
 
     }
 
-    if (p->upstream_done && p->in == NULL && p->out == NULL) {
+    ngx_log_debug(p->log, "STATE %d:%d:%d:%X:%X" _
+                  p->upstream_eof _
+                  p->upstream_error _
+                  p->upstream_done _
+                  p->in _
+                  p->out
+                 );
+
+    if ((p->upstream_eof || p->upstream_error || p->upstream_done)
+        && p->in == NULL && p->out == NULL)
+    {
         p->downstream_done = 1;
     }
 
@@ -365,17 +381,25 @@ static int ngx_event_proxy_write_chain_t
         ce = p->in;
 
         do {
-            size += ce->hunk->last - ce->hunk->pos;
-            if (size >= p->temp_file_write_size) {
+            if (size + ce->hunk->last - ce->hunk->pos
+                                                    >= p->temp_file_write_size)
+            {
                 break;
             }
+            size += ce->hunk->last - ce->hunk->pos;
             ce = ce->next;
 
         } while (ce);
 
-        in = ce->next;
-        last = &ce->next;
-        ce->next = NULL;
+        if (ce) {
+           in = ce->next;
+           last = &ce->next;
+           ce->next = NULL;
+
+        } else {
+           in = NULL;
+           last = &p->in;
+        }
 
     } else {
         in = NULL;

--- a/src/http/modules/proxy/ngx_http_proxy_handler.c
+++ b/src/http/modules/proxy/ngx_http_proxy_handler.c
@@ -17,8 +17,7 @@ static void ngx_http_proxy_process_upstr
 static void ngx_http_proxy_process_upstream_headers(ngx_event_t *rev);
 static ssize_t ngx_http_proxy_read_upstream_header(ngx_http_proxy_ctx_t *);
 static void ngx_http_proxy_send_response(ngx_http_proxy_ctx_t *p);
-static void ngx_http_proxy_process_upstream(ngx_event_t *rev);
-static void ngx_http_proxy_process_downstream(ngx_event_t *wev);
+static void ngx_http_proxy_process_body(ngx_event_t *ev);
 
 static int ngx_http_proxy_parse_status_line(ngx_http_proxy_ctx_t *p);
 static void ngx_http_proxy_next_upstream(ngx_http_proxy_ctx_t *p);
@@ -235,7 +234,9 @@ static ngx_chain_t *ngx_http_proxy_creat
             continue;
         }
 
-        /* TODO: delete "Keep-Alive" header */
+        if (&header[i] == r->headers_in.keep_alive) {
+            continue;
+        }
 
         h->last = ngx_cpymem(h->last, header[i].key.data, header[i].key.len);
 
@@ -741,6 +742,8 @@ static void ngx_http_proxy_send_response
 
     ep->preread_size = p->header_in->last - p->header_in->pos;
 
+    /* STUB */ ep->cachable = 0;
+
     p->event_proxy = ep;
 
 #if 0
@@ -748,83 +751,81 @@ static void ngx_http_proxy_send_response
     lcx->action = "reading an upstream";
 #endif
 
-    p->upstream.connection->read->event_handler =
-                                               ngx_http_proxy_process_upstream;
-    r->connection->write->event_handler =
-                                             ngx_http_proxy_process_downstream;
+    p->upstream.connection->read->event_handler = ngx_http_proxy_process_body;
+    r->connection->write->event_handler = ngx_http_proxy_process_body;
 
-    ngx_http_proxy_process_upstream(p->upstream.connection->read);
+    ngx_http_proxy_process_body(p->upstream.connection->read);
 
     return;
 }
 
 
-static void ngx_http_proxy_process_upstream(ngx_event_t *rev)
-{
-    ngx_connection_t      *c;
-    ngx_http_proxy_ctx_t  *p;
-
-    c = rev->data;
-    p = c->data;
-
-    ngx_log_debug(rev->log, "http proxy process upstream");
-
-    if (rev->timedout) {
-        ngx_http_proxy_close_connection(c);
-        p->upstream.connection = NULL;
-        return;
-    }
-
-    if (ngx_event_proxy(p->event_proxy, 0) == NGX_ABORT) {
-        ngx_http_proxy_finalize_request(p, 0);
-        return;
-    }
-
-    if (p->event_proxy->upstream_eof
-        || p->event_proxy->upstream_error
-        || p->event_proxy->upstream_done)
-    {
-        ngx_http_proxy_close_connection(c);
-        p->upstream.connection = NULL;
-        return;
-    }
-
-    return;
-}
-
-
-static void ngx_http_proxy_process_downstream(ngx_event_t *wev)
+static void ngx_http_proxy_process_body(ngx_event_t *ev)
 {
     ngx_connection_t      *c;
     ngx_http_request_t    *r;
     ngx_http_proxy_ctx_t  *p;
+    ngx_event_proxy_t     *ep;
 
-    c = wev->data;
-    r = c->data;
-    p = ngx_http_get_module_ctx(r, ngx_http_proxy_module);
- 
-    ngx_log_debug(wev->log, "http proxy process downstream");
+    c = ev->data;
+
+    if (ev->write) {
+        ngx_log_debug(ev->log, "http proxy process downstream");
+        r = c->data;
+        p = ngx_http_get_module_ctx(r, ngx_http_proxy_module);
+
+    } else {
+        ngx_log_debug(ev->log, "http proxy process upstream");
+        p = c->data;
+        r = p->request;
+    }
+
+    ep = p->event_proxy;
+
+    if (ev->timedout) {
+        if (ev->write) {
+            ep->downstream_error = 1;
+
+        } else {
+            ep->upstream_error = 1;
+        }
 
-    if (wev->timedout) {
-        ngx_http_close_connection(c);
+    } else {
+        if (ngx_event_proxy(ep, ev->write) == NGX_ABORT) {
+            ngx_http_proxy_finalize_request(p, 0);
+            return;
+        }
+    }
+
+    if (p->upstream.connection) {
+        if (ep->upstream_done) {
+            /* TODO: update cache */
+
+        } else if (ep->upstream_eof) {
+            /* TODO: check length & update cache */
+        }
+
+        if (ep->upstream_done || ep->upstream_eof || ep->upstream_error) {
+            ngx_http_proxy_close_connection(c);
+            p->upstream.connection = NULL;
+        }
+    }
+
+    if (ep->downstream_done) {
+        ngx_log_debug(ev->log, "http proxy downstream done");
+        ngx_http_proxy_finalize_request(p, r->main ? 0 : ngx_http_send_last(r));
         return;
     }
 
-    if (ngx_event_proxy(p->event_proxy, 1) == NGX_ABORT) {
-        ngx_http_proxy_finalize_request(p, 0);
-        return;
-    }
-
-    if (p->event_proxy->downstream_done) {
-ngx_log_debug(wev->log, "http proxy downstream done");
-        ngx_http_proxy_finalize_request(p, r->main ? 0:
-                                           ngx_http_send_last(p->request));
-        return;
-    }
-
-    if (p->event_proxy->downstream_error) {
-        ngx_http_close_connection(c);
-        return;
+    if (ep->downstream_error) {
+        if (!p->cachable && p->upstream.connection) {
+            ngx_http_proxy_close_connection(c);
+            p->upstream.connection = NULL;
+        }
+ 
+        if (p->upstream.connection == NULL) {
+            ngx_http_close_connection(c);
+        }
     }
 
     return;
@@ -1151,7 +1152,7 @@ static void *ngx_http_proxy_create_loc_c
     conf->bufs.num = 10;
     conf->bufs.size = 4096;
     conf->max_busy_len = 8192 + 4096;
-    conf->max_temp_file_size = 4096 * 5;
+    conf->max_temp_file_size = 4096 * 6;
     conf->temp_file_write_size = 4096 * 2;
 
     ngx_test_null(conf->temp_path, ngx_pcalloc(cf->pool, sizeof(ngx_path_t)),

--- a/src/http/modules/proxy/ngx_http_proxy_handler.h
+++ b/src/http/modules/proxy/ngx_http_proxy_handler.h
@@ -77,6 +77,7 @@ struct ngx_http_proxy_ctx_s {
     ngx_event_proxy_t          *event_proxy;
 
     unsigned                    accel:1;
+    unsigned                    cachable:1;
     unsigned                    fatal_error:1;
     unsigned                    header_sent:1;
 

--- a/src/http/ngx_http_request.c
+++ b/src/http/ngx_http_request.c
@@ -59,6 +59,7 @@ static ngx_http_header_t headers_in[] = 
 #endif
 
     { ngx_string("User-Agent"), offsetof(ngx_http_headers_in_t, user_agent) },
+    { ngx_string("Keep-Alive"), offsetof(ngx_http_headers_in_t, keep_alive) },
 
     { ngx_null_string, 0 }
 };

--- a/src/http/ngx_http_request.h
+++ b/src/http/ngx_http_request.h
@@ -75,6 +75,7 @@ typedef struct {
     ngx_table_elt_t  *accept_encoding;
 
     ngx_table_elt_t  *user_agent;
+    ngx_table_elt_t  *keep_alive;
 
     ngx_table_t      *headers;
 } ngx_http_headers_in_t;

--- a/src/os/unix/ngx_readv_chain.c
+++ b/src/os/unix/ngx_readv_chain.c
@@ -21,7 +21,7 @@ ssize_t ngx_readv_chain(ngx_connection_t
 
     while (entry) {
         ngx_test_null(iov, ngx_push_array(&io), NGX_ERROR);
-        iov->iov_base = entry->hunk->pos;
+        iov->iov_base = entry->hunk->last;
         iov->iov_len = entry->hunk->end - entry->hunk->last;
         entry = entry->next;
     }