--- a/src/core/ngx_connection.h
+++ b/src/core/ngx_connection.h
@@ -85,6 +85,7 @@ extern ngx_chain_t *(*ngx_write_chain_pr
                                         (ngx_connection_t *c, ngx_chain_t *in);
 
 
+ssize_t ngx_recv_chain(ngx_connection_t *c, ngx_chain_t *ce);
 ngx_chain_t *ngx_write_chain(ngx_connection_t *c, ngx_chain_t *in, off_t flush);
 
 

--- a/src/core/ngx_file.c
+++ b/src/core/ngx_file.c
@@ -28,7 +28,7 @@ int ngx_create_temp_file(ngx_file_t *fil
 
     for ( ;; ) {
         snprintf(file->name.data + path->name.len + 1 + path->len, 11,
-                 "%010d", num);
+                 "%010u", num);
 
         ngx_create_hashed_filename(file, path);
 
@@ -49,6 +49,8 @@ int ngx_create_temp_file(ngx_file_t *fil
 
         file->fd = ngx_open_tempfile(file->name.data, persistent);
 
+ngx_log_debug(file->log, "temp fd: %d" _ file->fd);
+
         if (file->fd != NGX_INVALID_FILE) {
             return NGX_OK;
         }
@@ -56,7 +58,7 @@ int ngx_create_temp_file(ngx_file_t *fil
         err = ngx_errno;
 
         if (err == NGX_EEXIST) {
-            num *= step;
+            num = (num + 1) * step;
             continue;
         }
 

--- a/src/core/ngx_hunk.h
+++ b/src/core/ngx_hunk.h
@@ -11,26 +11,27 @@
 /* hunk type */
 
 /* the hunk is in memory */
-#define NGX_HUNK_IN_MEMORY  0x0001
+#define NGX_HUNK_IN_MEMORY    0x0001
 /* the hunk's content can be changed */
-#define NGX_HUNK_TEMP       0x0002
+#define NGX_HUNK_TEMP         0x0002
 /* the hunk's content is in cache and can not be changed */
-#define NGX_HUNK_MEMORY     0x0004
+#define NGX_HUNK_MEMORY       0x0004
 /* the hunk's content is mmap()ed and can not be changed */
-#define NGX_HUNK_MMAP       0x0008
+#define NGX_HUNK_MMAP         0x0008
 
-#define NGX_HUNK_RECYCLED   0x0010
+#define NGX_HUNK_RECYCLED     0x0010
 
 /* the hunk is in file */
-#define NGX_HUNK_FILE       0x0100
+#define NGX_HUNK_FILE         0x0100
 
 /* hunk flags */
 
 /* in thread state flush means to write the hunk completely before return */
 /* in event state flush means to start to write the hunk */
-#define NGX_HUNK_FLUSH      0x1000
+#define NGX_HUNK_FLUSH        0x1000
 /* last hunk */
-#define NGX_HUNK_LAST       0x2000
+#define NGX_HUNK_LAST         0x2000
+#define NGX_HUNK_LAST_SHADOW  0x4000
 
 
 
@@ -69,7 +70,12 @@ struct ngx_chain_s {
 ngx_hunk_t *ngx_create_temp_hunk(ngx_pool_t *pool, int size,
                                  int before, int after);
 
+#define ngx_alloc_hunk(pool) ngx_palloc(pool, sizeof(ngx_hunk_t))
+#define ngx_alloc_chain_entry(pool) ngx_palloc(pool, sizeof(ngx_chain_t))
+
+/* STUB */
 #define ngx_create_chain_entry(pool) ngx_palloc(pool, sizeof(ngx_chain_t))
+/**/
 
 #define ngx_add_hunk_to_chain(chain, h, pool, error)                         \
             do {                                                             \

--- a/src/event/ngx_event.h
+++ b/src/event/ngx_event.h
@@ -178,6 +178,7 @@ typedef struct {
 
 
 #define NGX_USE_LEVEL_EVENT     0x00010000
+#define NGX_USE_AIO_EVENT       0x00020000
 
 
 /* Event filter is deleted before closing file.

--- a/src/event/ngx_event_accept.c
+++ b/src/event/ngx_event_accept.c
@@ -119,8 +119,10 @@ int ngx_event_accept(ngx_event_t *ev)
         wev->write = 1;
         rev->first = wev->first = 1;
 
-#if (HAVE_AIO_EVENT)
-        if (!(ngx_event_flags & NGX_HAVE_AIO_EVENT)) {
+#if (USE_KQUEUE)
+        wev->ready = 1;
+#else
+        if ((ngx_event_flags & NGX_USE_AIO_EVENT) == 0) {
             wev->ready = 1;
         }
 #endif

new file mode 100644
--- /dev/null
+++ b/src/event/ngx_event_proxy.c
@@ -0,0 +1,510 @@
+
+#include <ngx_event_proxy.h>
+
+
+int ngx_event_proxy_read_upstream(ngx_event_proxy_t *p)
+{
+    int           n, rc, size;
+    ngx_hunk_t   *h, *nh;
+    ngx_chain_t  *chain, *temp, *entry, *next;
+
+    p->level++;
+
+ngx_log_debug(p->log, "read upstream");
+
+    for ( ;; ) {
+
+        /* use the free hunks if they exist */
+
+        if (p->free_hunks) {
+            chain = p->free_hunks;
+            p->free_hunks = NULL;
+
+ngx_log_debug(p->log, "free hunk: %08X:%d" _ chain->hunk _
+              chain->hunk->end - chain->hunk->last);
+
+        /* allocate a new hunk if it's still allowed */
+
+        } else if (p->allocated < p->max_block_size) {
+            ngx_test_null(h,
+                          ngx_create_temp_hunk(p->pool, p->block_size, 20, 20),
+                          NGX_ERROR);
+
+            p->allocated += p->block_size;
+
+            ngx_test_null(temp, ngx_alloc_chain_entry(p->pool), NGX_ERROR);
+            temp->hunk = h;
+            temp->next = NULL;
+            chain = temp;
+
+ngx_log_debug(p->log, "new hunk: %08X" _ chain->hunk);
+
+        /* use the shadow hunks if they exist */
+
+        } else if (p->shadow_hunks) {
+            chain = p->shadow_hunks;
+            p->shadow_hunks = NULL;
+
+ngx_log_debug(p->log, "shadow hunk: %08X" _ chain->hunk);
+
+        /* if it's allowed then save the incoming hunks to a temporary file,
+           move the saved hunks to a shadow chain,
+           and add the file hunks to an outgoing chain */
+
+        } else if (p->temp_offset < p->max_temp_size) {
+            rc = ngx_event_proxy_write_chain_to_temp_file(p);
+
+ngx_log_debug(p->log, "temp offset: %d" _ p->temp_offset);
+
+            if (rc != NGX_OK) {
+                return rc;
+            }
+
+            chain = p->shadow_hunks;
+            p->shadow_hunks = NULL;
+
+ngx_log_debug(p->log, "new shadow hunk: %08X" _ chain->hunk);
+
+        /* if there're no hunks to read in then disable a level event */
+
+        } else {
+            if (ngx_event_flags & NGX_USE_LEVEL_EVENT) {
+                p->block_upstream = 1;
+            }
+
+            break;
+        }
+
+        n = ngx_recv_chain(p->upstream, chain);
+
+ngx_log_debug(p->log, "recv_chain: %d" _ n);
+
+        if (n == NGX_ERROR) {
+            p->upstream_error = 1;
+            return NGX_ERROR;
+        }
+
+        if (n == NGX_AGAIN) {
+            if (p->upstream->read->blocked) {
+                if (ngx_add_event(p->upstream->read, NGX_READ_EVENT,
+                                               NGX_LEVEL_EVENT) == NGX_ERROR) {
+                    return NGX_ERROR;
+                }
+                p->upstream->read->blocked = 0;
+            }
+
+            return NGX_AGAIN;
+        }
+
+        if (n == 0) {
+            p->free_hunks = chain;
+            p->upstream_eof = 1;
+            p->block_upstream = 0;
+            break;
+        }
+
+        /* move the full hunks to a read chain
+           and the partial filled hunk to a free chain
+           and remove the shadow links for these hunks */
+
+        for (entry = chain; entry && n > 0; entry = next) {
+            next = entry->next;
+            entry->next = NULL;
+
+            if (entry->hunk->shadow) {
+                for (h = entry->hunk->shadow;
+                     (h->type & NGX_HUNK_LAST_SHADOW) == 0;
+                     h = nh)
+                {
+                    nh = h->shadow;
+                    h->shadow = NULL;
+                    h->type &= ~(NGX_HUNK_TEMP
+                                 |NGX_HUNK_IN_MEMORY
+                                 |NGX_HUNK_RECYCLED);
+                }
+
+                h->shadow = NULL;
+                h->type &= ~(NGX_HUNK_TEMP
+                             |NGX_HUNK_IN_MEMORY
+                             |NGX_HUNK_RECYCLED
+                             |NGX_HUNK_LAST_SHADOW);
+                entry->hunk->shadow = NULL;
+            }
+
+            size = entry->hunk->end - entry->hunk->last;
+
+            if (n >= size) {
+                entry->hunk->last = entry->hunk->end;
+
+                if (p->read_hunks) {
+                    p->last_read_hunk->next = entry;
+
+                } else {
+                    p->read_hunks = entry;
+                }
+
+                p->last_read_hunk = entry;
+
+                n -= size;
+
+                /* the copy input filter */
+
+                if (p->input_filter == NULL) {
+                    ngx_test_null(h, ngx_alloc_hunk(p->pool), NGX_ERROR);
+                    ngx_memcpy(h, entry->hunk, sizeof(ngx_hunk_t));
+                    h->shadow = entry->hunk;
+                    h->type |= NGX_HUNK_LAST_SHADOW;
+
+                    ngx_test_null(temp, ngx_alloc_chain_entry(p->pool),
+                                  NGX_ERROR);
+                    temp->hunk = h;
+                    temp->next = NULL;
+
+                    if (p->in_hunks) {
+                        p->last_in_hunk->next = temp;
+
+                    } else {
+                        p->in_hunks = temp;
+                    }
+
+                    p->last_in_hunk = temp;
+                }
+
+            } else {
+                entry->hunk->last += n;
+                p->free_hunks = entry;
+
+                n = 0;
+            }
+        }
+
+ngx_log_debug(p->log, "rest chain: %08X" _ entry);
+
+        /* if the rest hunks are shadow then move them to a shadow chain
+           otherwise add them to a free chain */
+
+        if (entry) {
+            if (entry->hunk->shadow) {
+                p->shadow_hunks = entry;
+
+            } else {
+                if (p->free_hunks) {
+                    p->free_hunks->next = entry;
+
+                } else {
+                    p->free_hunks = entry;
+                }
+            }
+
+            p->block_upstream = 0;
+            break;
+        }
+
+        /* the input filter i.e. that moves HTTP/1.1 chunks
+           from a read chain to an incoming chain */
+
+        if (p->input_filter) {
+            if (p->input_filter(p) == NGX_ERROR) {
+                return NGX_ERROR;
+            }
+        }
+    }
+
+ngx_log_debug(p->log, "eof: %d block: %d" _
+              p->upstream_eof _ p->block_upstream);
+
+    /* if there's the end of upstream response then move
+       the partially filled hunk from a free chain to an incoming chain */
+
+    if (p->upstream_eof) {
+        p->upstream->read->ready = 0;
+
+        if (p->free_hunks
+            && p->free_hunks->hunk->pos < p->free_hunks->hunk->last)
+        {
+            if (p->input_filter) {
+                if (p->input_filter(p) == NGX_ERROR) {
+                    return NGX_ERROR;
+                }
+
+            } else {
+                entry = p->free_hunks;
+
+                if (p->in_hunks) {
+                    p->last_in_hunk->next = entry;
+
+                } else {
+                    p->in_hunks = entry;
+                }
+
+                p->last_in_hunk = entry;
+            }
+
+            p->free_hunks = entry->next;
+            entry->next = NULL;
+        }
+
+#if 0
+        /* free the unneeded hunks */
+
+        for (entry = p->free_hunks; entry; entry = ce->next) {
+            ngx_free_hunk(p->pool, entry->hunk);
+        }
+#endif
+
+        if (p->in_hunks) {
+            p->last_in_hunk->hunk->type |= NGX_HUNK_LAST;
+
+        } else if (p->out_hunks) {
+            p->last_out_hunk->hunk->type |= NGX_HUNK_LAST;
+        }
+    }
+
+    if (p->cachable) {
+        if (p->in_hunks) {
+            rc = ngx_event_proxy_write_chain_to_temp_file(p);
+            if (rc != NGX_OK) {
+                return rc;
+            }
+        }
+
+        if (p->out_hunks && p->client->write->ready) {
+            rc = ngx_event_proxy_write_to_client(p);
+        }
+
+    } else if ((p->out_hunks || p->in_hunks) && p->client->write->ready) {
+        rc = ngx_event_proxy_write_to_client(p);
+    }
+
+    p->level--;
+
+ngx_log_debug(p->log, "level: %d" _ p->level);
+
+    if (p->level == 0 && p->block_upstream) {
+        p->upstream->read->blocked = 1;
+        if (ngx_del_event(p->upstream->read, NGX_READ_EVENT, 0) == NGX_ERROR) {
+            return NGX_ERROR;
+        }
+
+        return NGX_AGAIN;
+    }
+
+    if (p->upstream_eof) {
+        return NGX_OK;
+    } else {
+        return NGX_AGAIN;
+    }
+}
+
+
+int ngx_event_proxy_write_to_client(ngx_event_proxy_t *p)
+{
+    int           rc;
+    ngx_hunk_t   *h;
+    ngx_chain_t  *entry;
+
+ngx_log_debug(p->log, "write to client");
+
+    h = p->busy_hunk;
+
+    for ( ;; ) {
+
+        if (h == NULL) {
+            if (p->out_hunks) {
+                entry = p->out_hunks;
+                p->out_hunks = entry->next;
+                h = entry->hunk;
+
+                if (p->shadow_hunks) {
+                    if (p->shadow_hunks->hunk == h->shadow) {
+                        p->shadow_hunks = p->shadow_hunks->next;
+                    }
+                }
+
+                entry->next = NULL;
+
+            } else if (p->cachable == 0 && p->in_hunks) {
+                entry = p->in_hunks;
+                p->in_hunks = entry->next;
+                h = entry->hunk;
+                entry->next = NULL;
+            }
+
+ngx_log_debug(p->log, "event proxy write hunk: %08X:%08X" _ h _ h->pos);
+
+            if (h == NULL) {
+                if (p->upstream->read->ready) {
+                    rc = ngx_event_proxy_read_upstream(p);
+                }
+
+                return NGX_OK;
+            }
+        }
+
+ngx_log_debug(p->log, "event proxy write: %d" _ h->last - h->pos);
+
+        rc = p->output_filter(p->output_data, h);
+
+ngx_log_debug(p->log, "event proxy: %d" _ rc);
+
+        if (rc == NGX_ERROR) {
+            return NGX_ERROR;
+        }
+
+        if (rc == NGX_AGAIN
+            || (h->type & NGX_HUNK_IN_MEMORY && h->pos < h->last)
+            || (h->type & NGX_HUNK_FILE && h->file_pos < h->file_last))
+        {
+            if (p->busy_hunk == NULL) {
+                p->busy_hunk = h;
+            }
+            return NGX_AGAIN;
+        }
+
+        p->busy_hunk = NULL;
+
+        /* if the complete hunk is the file hunk and it has a shadow hunk
+           then add a shadow hunk to a free chain */
+
+        if (h->type & NGX_HUNK_FILE) {
+            if (p->cachable == 0 && p->out_hunks == NULL) {
+                p->temp_offset = 0;
+            }
+        }
+
+        if ((h->type & NGX_HUNK_LAST_SHADOW) == 0) {
+            h = NULL;
+            continue;
+        }
+
+
+        h->shadow->shadow = NULL;
+        h = h->shadow;
+
+#if 0
+        /* free the unneeded hunk */
+
+        if (p->upstream_eof) {
+            ngx_free_hunk(p->pool, h);
+            continue;
+        }
+#endif
+
+        h->pos = h->last = h->start;
+
+        entry->hunk = h;
+
+        /* if the first hunk in a free chain is partially filled
+           then add the complete hunk after the first free hunk */
+
+        if (p->free_hunks
+            && p->free_hunks->hunk->start != p->free_hunks->hunk->last)
+        {
+            entry->next = p->free_hunks->next;
+            p->free_hunks->next = entry;
+
+        } else {
+            entry->next = p->free_hunks;
+            p->free_hunks = entry;
+        }
+
+        h = NULL;
+    }
+}
+
+
+int ngx_event_proxy_write_chain_to_temp_file(ngx_event_proxy_t *p)
+{
+    int           i, rc, size;
+    ngx_hunk_t   *h;
+    ngx_chain_t  *entry, *next, *saved_in, *saved_read;
+
+ngx_log_debug(p->log, "write to file");
+
+    if (p->temp_file->fd == NGX_INVALID_FILE) {
+        rc = ngx_create_temp_file(p->temp_file, p->temp_path, p->pool,
+                                  p->number, p->random, p->cachable);
+
+        if (rc != NGX_OK) {
+            return rc;
+        }
+
+        if (p->cachable == 0 && p->temp_file_warn) {
+            ngx_log_error(NGX_LOG_WARN, p->log, 0, p->temp_file_warn);
+        }
+    }
+
+    if (p->cachable == 0) {
+
+        entry = p->read_hunks;
+        size = 0;
+
+        do {
+            size += entry->hunk->last - entry->hunk->pos;
+            if (size >= p->file_block_size) {
+                break;
+            }
+            entry = entry->next;
+
+        } while (entry);
+
+        saved_read = entry->next;
+        entry->next = NULL;
+
+        if (saved_read) {
+            for (entry = p->in_hunks; entry->next; entry = entry->next) {
+                if (entry->next->hunk->shadow == saved_read->hunk) {
+                    break;
+                }
+            }
+            saved_in = entry->next;
+            entry->next = NULL;
+
+        } else {
+            saved_in = NULL;
+        }
+
+    } else {
+        saved_read = NULL;
+        saved_in = NULL;
+    }
+
+    if (ngx_write_chain_to_file(p->temp_file, p->in_hunks, p->temp_offset,
+                                p->pool) == NGX_ERROR) {
+        return NGX_ERROR;
+    }
+
+    for (entry = p->in_hunks; entry; entry = next) {
+        next = entry->next;
+        entry->next = NULL;
+
+        h = entry->hunk;
+        h->type |= NGX_HUNK_FILE;
+        h->file = p->temp_file;
+        h->file_pos = p->temp_offset;
+        p->temp_offset += h->last - h->pos;
+        h->file_last = p->temp_offset;
+
+ngx_log_debug(p->log, "event proxy file hunk: %08X:%08X" _ h _ h->pos);
+
+        if (entry->hunk->type & NGX_HUNK_LAST_SHADOW) {
+            entry->hunk->shadow->last = entry->hunk->shadow->pos;
+        }
+
+        if (p->out_hunks) {
+            p->last_out_hunk->next = entry;
+
+        } else {
+            p->out_hunks = entry;
+        }
+
+        p->last_out_hunk = entry;
+    }
+
+    p->shadow_hunks = p->read_hunks;
+
+    p->read_hunks = saved_read;
+    p->in_hunks = saved_in;
+
+    return NGX_OK;
+}

new file mode 100644
--- /dev/null
+++ b/src/event/ngx_event_proxy.h
@@ -0,0 +1,72 @@
+#ifndef _NGX_EVENT_PROXY_H_INCLUDED_
+#define _NGX_EVENT_PROXY_H_INCLUDED_
+
+
+#include <ngx_config.h>
+#include <ngx_core.h>
+#include <ngx_hunk.h>
+#include <ngx_file.h>
+#include <ngx_files.h>
+#include <ngx_connection.h>
+
+
+typedef struct ngx_event_proxy_s  ngx_event_proxy_t;
+
+typedef int (*ngx_event_proxy_input_filter_pt)(ngx_event_proxy_t *p);
+typedef int (*ngx_event_proxy_output_filter_pt)(void *data, ngx_hunk_t *hunk);
+
+
+struct ngx_event_proxy_s {
+    ngx_chain_t       *read_hunks;
+    ngx_chain_t       *last_read_hunk;
+    ngx_chain_t       *in_hunks;
+    ngx_chain_t       *last_in_hunk;
+    ngx_chain_t       *shadow_hunks;
+    ngx_chain_t       *out_hunks;
+    ngx_chain_t       *last_out_hunk;
+    ngx_chain_t       *free_hunks;
+    ngx_hunk_t        *busy_hunk;
+
+    ngx_event_proxy_input_filter_pt   input_filter;
+    void              *input_data;
+
+    ngx_event_proxy_output_filter_pt  output_filter;
+    void              *output_data;
+
+    unsigned           cachable:1;
+    unsigned           block_upstream:1;
+    unsigned           upstream_eof:1;
+    unsigned           upstream_error:1;
+    unsigned           client_eof:1;
+    unsigned           client_error:1;
+
+    int                level;
+
+    int                allocated;
+    int                block_size;
+    int                max_block_size;
+
+    off_t              temp_offset;
+    off_t              max_temp_size;
+    int                file_block_size;
+
+    ngx_connection_t  *upstream;
+    ngx_connection_t  *client;
+
+    ngx_pool_t        *pool;
+    ngx_log_t         *log;
+
+    ngx_file_t        *temp_file;
+    ngx_path_t        *temp_path;
+    int                number;
+    int                random;
+    char              *temp_file_warn;
+};
+
+
+int ngx_event_proxy_read_upstream(ngx_event_proxy_t *p);
+int ngx_event_proxy_write_to_client(ngx_event_proxy_t *p);
+int ngx_event_proxy_write_chain_to_temp_file(ngx_event_proxy_t *p);
+
+
+#endif /* _NGX_EVENT_PROXY_H_INCLUDED_ */

--- a/src/http/modules/proxy/ngx_http_event_proxy_handler.c
+++ b/src/http/modules/proxy/ngx_http_event_proxy_handler.c
@@ -7,6 +7,7 @@
 #include <ngx_inet.h>
 #include <ngx_conf_file.h>
 #include <ngx_event_write.h>
+#include <ngx_event_proxy.h>
 
 #include <ngx_http.h>
 #include <ngx_http_config.h>
@@ -15,6 +16,11 @@
 #include <ngx_http_event_proxy_handler.h>
 
 
+/* STUB */
+typedef struct {
+    int   dummy;
+} ngx_cache_header_t;
+
 static int ngx_http_proxy_handler(ngx_http_request_t *r);
 
 static ngx_chain_t *ngx_http_proxy_create_request(ngx_http_proxy_ctx_t *p);
@@ -30,8 +36,8 @@ static int ngx_http_proxy_process_upstre
 static int ngx_http_proxy_process_upstream_headers(ngx_http_proxy_ctx_t *p);
 static int ngx_http_proxy_process_upstream_header_line(ngx_http_proxy_ctx_t *p);
 
-
-static int ngx_http_proxy_write_upstream_body(ngx_event_t *wev);
+static int ngx_http_proxy_read_upstream_body(ngx_http_proxy_ctx_t *p);
+static int ngx_http_proxy_write_upstream_body(ngx_http_proxy_ctx_t *p);
 
 
 static int ngx_http_proxy_read_response_body(ngx_event_t *ev);
@@ -715,7 +721,11 @@ static int ngx_http_proxy_init_upstream(
     r = p->request;
 
     ngx_test_null(p->header_in,
-                  ngx_create_temp_hunk(r->pool, p->lcf->header_size, 0, 0),
+                  ngx_create_temp_hunk(r->pool,
+                                       p->lcf->header_size
+                                                  - sizeof(ngx_cache_header_t),
+                                       sizeof(ngx_cache_header_t),
+                                       0),
                   NGX_ERROR);
 
     p->header_in->type = NGX_HUNK_MEMORY|NGX_HUNK_IN_MEMORY;
@@ -748,7 +758,9 @@ static int ngx_http_proxy_read_upstream_
     int                  i, n, rc;
     ngx_event_t         *rev;
     ngx_table_elt_t     *ch, *ph;
+    ngx_event_proxy_t   *ep;
     ngx_http_request_t  *r;
+    ngx_http_proxy_log_ctx_t   *lcx;
 
     rev = p->connection->read;
 
@@ -833,10 +845,53 @@ static int ngx_http_proxy_read_upstream_
 
         rc = ngx_http_send_header(r);
 
+#if 1
+        rc = ngx_http_output_filter(r, p->header_in);
+
+        ngx_test_null(ep, ngx_pcalloc(r->pool, sizeof(ngx_event_proxy_t)),
+                      NGX_ERROR);
+
+        ep->output_filter = (ngx_event_proxy_output_filter_pt)
+                                                        ngx_http_output_filter;
+        ep->output_data = r;
+        ep->block_size = p->lcf->block_size;
+        ep->max_block_size = p->lcf->max_block_size;
+        ep->file_block_size = p->lcf->file_block_size;
+        ep->upstream = p->connection;
+        ep->client = r->connection;
+        ep->pool = r->pool;
+        ep->log = p->log;
+        ep->temp_path = p->lcf->temp_path;
+
+        ngx_test_null(ep->temp_file, ngx_palloc(r->pool, sizeof(ngx_file_t)),
+                      NGX_ERROR);
+        ep->temp_file->fd = NGX_INVALID_FILE;
+        ep->temp_file->log = p->log;
+
+        ep->number = 10;
+        ep->random = 5;
+
+        ep->max_temp_size = 6000;
+        ep->temp_file_warn = "an upstream response is buffered "
+                             "to a temporary file";
+
+        p->event_proxy = ep;
+
+        lcx = p->log->data;
+        lcx->action = "reading an upstream";
+
+        p->state_read_upstream_handler = ngx_http_proxy_read_upstream_body;
+        p->state_write_upstream_handler = ngx_http_proxy_write_upstream_body;
+
+        ngx_http_proxy_read_upstream_body(p);
+#endif
+
+#if 0
         /* STUB */
         p->header_in->type |= NGX_HUNK_LAST;
         rc = ngx_http_output_filter(r, p->header_in);
         ngx_http_proxy_finalize_request(p, NGX_OK);
+#endif
 
         /* STUB */ return NGX_DONE;
     }
@@ -1030,11 +1085,32 @@ static int ngx_http_proxy_process_upstre
 }
 
 
+static int ngx_http_proxy_read_upstream_body(ngx_http_proxy_ctx_t *p)
+{
+    int  rc;
+
+    rc = ngx_event_proxy_read_upstream(p->event_proxy);
+    if (rc == NGX_OK) {
+        rc = ngx_event_close_connection(p->connection->read);
+    }
+
+    return rc;
+}
+
+
+static int ngx_http_proxy_write_upstream_body(ngx_http_proxy_ctx_t *p)
+{
+    return ngx_event_proxy_write_to_client(p->event_proxy);
+}
+
+
+#if 0
 static int ngx_http_proxy_read_upstream_body(ngx_event_t *rev)
 {
-    int                    rc, n, size;
+    int                    rc, n, size, eof;
     ngx_hunk_t            *h;
-    ngx_chain_t           *chain, chain_entry, *ce, *te;
+    ngx_chain_t           *chain, *ce, *tce;
+    ngx_event_t           *wev;
     ngx_connection_t      *c;
     ngx_http_request_t    *r;
     ngx_http_proxy_ctx_t  *p;
@@ -1044,13 +1120,14 @@ static int ngx_http_proxy_read_upstream_
     p = (ngx_http_proxy_ctx_t *)
                          ngx_http_get_module_ctx(r, ngx_http_proxy_module_ctx);
 
-    chain_entry.next = NULL;
+    eof = 0;
 
     for ( ;; ) {
 
 #if (USE_KQUEUE)
 
         if (ev->eof && ev->available == 0) {
+            eof = 1;
             break;
         }
 
@@ -1059,82 +1136,59 @@ static int ngx_http_proxy_read_upstream_
         if (ngx_event_type == NGX_HAVE_KQUEUE_EVENT
             && ev->eof && ev->available == 0)
         {
+            eof = 1;
             break;
         }
 
 #endif
 
+        /* use the free hunks if they exist */
+
         if (p->free_hunks) {
             chain = p->free_hunks;
             p->free_hunks = NULL;
 
+        /* allocate a new hunk if it's still allowed */
+
         } else if (p->allocated < p->lcf->max_block_size) {
             ngx_test_null(h,
                           ngx_create_temp_hunk(r->pool, p->block_size, 50, 50),
                           NGX_ERROR);
 
             p->allocated += p->block_size;
-            chain_entry.hunk = h;
-            chain = &chain_entry;
+
+            ngx_test_null(tce, ngx_create_chain_entry(r->pool), NGX_ERROR);
+            tce->hunk = h;
+            tce->next = NULL;
+            chain = tce;
+
+        /* use the shadow hunks if they exist */
+
+        } else if (p->shadow_hunks) {
+            chain = p->shadow_hunks;
+            p->shadow_hunks = NULL;
+
+        /* write all the incoming hunks or the first hunk only
+           to a temporary file and convert them to the shadow hunks */
 
         } else {
-            if (p->temp_file->fd == NGX_INVALID_FILE) {
-                rc = ngx_create_temp_file(p->temp_file, p->lcf->temp_path,
-                                          r->pool, 0, 2, r->cachable);
-
+            if (r->cachable) {
+                rc = ngx_http_proxy_write_chain_to_temp_file(p);
                 if (rc != NGX_OK) {
                     return rc;
                 }
 
-                if (p->lcf->temp_file_warn) {
-                    ngx_log_error(NGX_LOG_WARN, p->log, 0,
-                                  "an upstream response is buffered "
-                                  "to a temporary file");
+            } else {
+                tce = p->in_hunks->next;
+                p->in_hunks->next = NULL;
+
+                rc = ngx_http_proxy_write_chain_to_temp_file(p);
+                if (rc != NGX_OK) {
+                    p->in_hunks = tce;
+                    return rc;
                 }
-            }
-
-            n = ngx_write_chain_to_file(p->temp_file, p->in_hunks,
-                                        p->temp_offset, r->pool);
-
-            if (n == NGX_ERROR) {
-                return NGX_ERROR;
-            }
-
-            for (ce = p->in_hunks; ce; ce = ce->next) {
-                ngx_test_null(h, ngx_pcalloc(r->pool, sizeof(ngx_hunk_t)),
-                              NGX_ERROR);
-
-                h->type = NGX_HUNK_FILE
-                          |NGX_HUNK_TEMP|NGX_HUNK_IN_MEMORY|NGX_HUNK_RECYCLED;
-
-                ce->hunk->shadow = h;
-                h->shadow = ce->hunk;
-
-                h->file_pos = p->temp_offset;
-                p->temp_offset += ce->hunk->last - ce->hunk->pos;
-                h->file_last = p->temp_offset;
-
-                h->file->fd = p->temp_file->fd;
-                h->file->log = p->log;
-
-                h->pos = ce->hunk->pos;
-                h->last = ce->hunk->last;
-                h->start = ce->hunk->start;
-                h->end = ce->hunk->end;
-                h->pre_start = ce->hunk->pre_start;
-                h->post_end = ce->hunk->post_end;
-
-                ngx_test_null(te, ngx_create_chain_entry(r->pool), NGX_ERROR);
-                te->hunk = h;
-                te->next = NULL;
-
-                if (p->last_out_hunk) {
-                    p->last_out_hunk->next = te;
-                    p->last_out_hunk = te;
-
-                } else {
-                    p->last_out_hunk = te;
-                }
+
+                p->in_hunks = tce;
             }
         }
 
@@ -1149,20 +1203,21 @@ static int ngx_http_proxy_read_upstream_
         }
 
         if (n == 0) {
+            eof = 1;
             break;
         }
 
         for (ce = chain; ce && n > 0; ce = ce->next) {
-            ngx_test_null(te, ngx_create_chain_entry(r->pool), NGX_ERROR);
-            te->hunk = ce->hunk;
-            te->next = NULL;
+            ngx_test_null(tce, ngx_create_chain_entry(r->pool), NGX_ERROR);
+            tce->hunk = ce->hunk;
+            tce->next = NULL;
 
             if (p->last_in_hunk) {
-                p->last_in_hunk->next = te;
-                p->last_in_hunk = te;
+                p->last_in_hunk->next = tce;
+                p->last_in_hunk = tce;
 
             } else {
-                p->last_in_hunk = te;
+                p->last_in_hunk = tce;
             }
 
             size = ce->hunk->end - ce->hunk->last;
@@ -1196,20 +1251,101 @@ static int ngx_http_proxy_read_upstream_
             ce->next = p->free_hunks;
             p->free_hunks = ce;
             break;
-
-            return NGX_OK;
         }
     }
 
-    if (p->out_hunks && p->request->connection->write->ready) {
-        return
-             ngx_http_proxy_write_upstream_body(p->request->connection->write);
+    wev = p->request->connection->write;
+
+    if (r->cachable) {
+        if (p->in_hunks) {
+            rc = ngx_http_proxy_write_chain_to_temp_file(p);
+            if (rc != NGX_OK) {
+                return rc;
+            }
+        }
+
+        if (p->out_hunks && wev->ready) {
+            return ngx_http_proxy_write_upstream_body(wev);
+        }
+
+    } else {
+        if ((p->out_hunks || p->in_hunks) && wev->ready) {
+            return ngx_http_proxy_write_upstream_body(wev);
+        }
     }
 
     return NGX_OK;
 }
 
 
+static int ngx_http_proxy_write_chain_to_temp_file(ngx_http_proxy_ctx_t *p)
+{
+    int           i, rc;
+    ngx_hunk_t   *h;
+    ngx_chain_t  *ce, *tce;
+
+    if (p->temp_file->fd == NGX_INVALID_FILE) {
+        rc = ngx_create_temp_file(p->temp_file, p->lcf->temp_path,
+                                  p->request->pool,
+                                  0, 2,
+                                  p->request->cachable);
+
+        if (rc != NGX_OK) {
+            return rc;
+        }
+
+        if (p->lcf->temp_file_warn) {
+            ngx_log_error(NGX_LOG_WARN, p->log, 0,
+                          "an upstream response is buffered "
+                          "to a temporary file");
+        }
+    }
+
+    if (ngx_write_chain_to_file(p->temp_file, p->in_hunks,
+                              p->temp_offset, p->request->pool) == NGX_ERROR) {
+        return NGX_ERROR;
+    }
+
+    for (ce = p->in_hunks; ce; ce = ce->next) {
+        ngx_test_null(h, ngx_pcalloc(p->request->pool, sizeof(ngx_hunk_t)),
+                      NGX_ERROR);
+
+        h->type = NGX_HUNK_FILE
+                  |NGX_HUNK_TEMP|NGX_HUNK_IN_MEMORY|NGX_HUNK_RECYCLED;
+
+        ce->hunk->shadow = h;
+        h->shadow = ce->hunk;
+
+        h->file_pos = p->temp_offset;
+        p->temp_offset += ce->hunk->last - ce->hunk->pos;
+        h->file_last = p->temp_offset;
+
+        h->file->fd = p->temp_file->fd;
+        h->file->log = p->log;
+
+        h->pos = ce->hunk->pos;
+        h->last = ce->hunk->last;
+        h->start = ce->hunk->start;
+        h->end = ce->hunk->end;
+        h->pre_start = ce->hunk->pre_start;
+        h->post_end = ce->hunk->post_end;
+
+        ngx_test_null(tce, ngx_create_chain_entry(p->request->pool), NGX_ERROR);
+        tce->hunk = h;
+        tce->next = NULL;
+
+        if (p->last_out_hunk) {
+            p->last_out_hunk->next = tce;
+            p->last_out_hunk = tce;
+
+        } else {
+            p->last_out_hunk = tce;
+        }
+    }
+
+    return NGX_OK;
+}
+
 static int ngx_http_proxy_write_upstream_body(ngx_event_t *wev)
 {
     int                    rc;
@@ -1256,7 +1392,7 @@ static int ngx_http_proxy_write_upstream
 }
 
 
-
+#endif
 
 
 
@@ -1628,7 +1764,8 @@ static void *ngx_http_proxy_create_loc_c
     conf->read_timeout = 10000;
     conf->header_size = 1024;
     conf->block_size = 4096;
-    conf->max_block_size = 32768;
+    conf->max_block_size = 4096 * 3;
+    conf->file_block_size = 4096;
 
     ngx_test_null(conf->temp_path, ngx_pcalloc(pool, sizeof(ngx_path_t)), NULL);
 

--- a/src/http/modules/proxy/ngx_http_event_proxy_handler.h
+++ b/src/http/modules/proxy/ngx_http_event_proxy_handler.h
@@ -4,6 +4,7 @@
 
 #include <ngx_config.h>
 #include <ngx_array.h>
+#include <ngx_event_proxy.h>
 #include <ngx_http.h>
 
 
@@ -70,6 +71,7 @@ typedef struct {
 
     int   block_size;
     int   max_block_size;
+    int   file_block_size;
 
     ngx_path_t  *temp_path;
     int   temp_file_warn;
@@ -94,9 +96,13 @@ typedef struct {
 typedef struct ngx_http_proxy_ctx_s  ngx_http_proxy_ctx_t;
 
 struct ngx_http_proxy_ctx_s {
+    ngx_event_proxy_t  *event_proxy;
+
     ngx_chain_t   *in_hunks;
     ngx_chain_t   *last_in_hunk;
 
+    ngx_chain_t   *shadow_hunks;
+
     ngx_chain_t   *out_hunks;
     ngx_chain_t   *last_out_hunk;
 

--- a/src/http/ngx_http_core_module.c
+++ b/src/http/ngx_http_core_module.c
@@ -674,6 +674,8 @@ static char *ngx_server_block(ngx_conf_t
             }
         }
 
+ngx_log_debug(cf->pool->log, "main merge");
+
         if (module->merge_loc_conf) {
             if (module->merge_loc_conf(cf->pool,
                                        prev->loc_conf[module->index],
@@ -682,6 +684,8 @@ static char *ngx_server_block(ngx_conf_t
                 return NGX_CONF_ERROR;
             }
 
+ngx_log_debug(cf->pool->log, "server merge");
+
             for (j = 0; j < scf->locations.nelts; j++) {
                 if (module->merge_loc_conf(cf->pool,
                                       ctx->loc_conf[module->index],
@@ -690,6 +694,7 @@ static char *ngx_server_block(ngx_conf_t
                     return NGX_CONF_ERROR;
                 }
             }
+ngx_log_debug(cf->pool->log, "server merge done");
         }
     }
 

--- a/src/http/ngx_http_output_filter.c
+++ b/src/http/ngx_http_output_filter.c
@@ -265,7 +265,7 @@ static int ngx_http_output_filter_copy_h
             src->file_pos += n;
         }
 
-        if (src->type & NGX_HUNK_LAST && src->pos == src->last) {
+        if ((src->type & NGX_HUNK_LAST) && src->pos == src->last) {
             dst->type |= NGX_HUNK_LAST;
         }
 
@@ -294,7 +294,7 @@ static int ngx_http_output_filter_copy_h
         src->file_pos += n;
         dst->last += n;
 
-        if (src->type & NGX_HUNK_LAST && src->file_pos == src->file_last) {
+        if ((src->type & NGX_HUNK_LAST) && src->file_pos == src->file_last) {
             dst->type |= NGX_HUNK_LAST;
         }
     }

--- a/src/http/ngx_http_write_filter.c
+++ b/src/http/ngx_http_write_filter.c
@@ -122,8 +122,9 @@ int ngx_http_write_filter(ngx_http_reque
                                              ngx_http_write_filter_module_ctx);
 
 #if (NGX_DEBUG_WRITE_FILTER)
-    ngx_log_debug(r->connection->log, "write filter: last:%d flush:%d" _
-                  last _ flush);
+    ngx_log_debug(r->connection->log,
+                  "write filter: last:%d flush:%qd size:%qd" _
+                  last _ flush _ size);
 #endif
 
     /* avoid the output if there is no last hunk, no flush point and
@@ -164,6 +165,8 @@ static void *ngx_http_write_filter_creat
 
     conf->buffer_output = NGX_CONF_UNSET;
 
+ngx_log_debug(pool->log, "write conf %08X %08X" _ conf _ conf->buffer_output);
+
     return conf;
 }
 
@@ -178,6 +181,8 @@ static char *ngx_http_write_filter_merge
 
     ngx_conf_size_merge(conf->buffer_output, prev->buffer_output, 1460);
 
+ngx_log_debug(pool->log, "write merge %08X %08X %08X" _ prev _ conf _ conf->buffer_output);
+
     return NULL;
 }
 

--- a/src/os/unix/ngx_files.c
+++ b/src/os/unix/ngx_files.c
@@ -11,7 +11,8 @@ ssize_t ngx_read_file(ngx_file_t *file, 
 {
     ssize_t n;
 
-    ngx_log_debug(file->log, "read: %x, %d, %qd" _ buf _ size _ offset);
+    ngx_log_debug(file->log, "read: %d, %x, %d, %qd" _
+                  file->fd _ buf _ size _ offset);
 
     n = pread(file->fd, buf, size, offset);
 

--- a/src/os/unix/ngx_files.h
+++ b/src/os/unix/ngx_files.h
@@ -22,7 +22,7 @@
 #define ngx_close_file_n         "close()"
 
 #define ngx_open_tempfile(name, persistent)                                 \
-                                 open(name, O_CREAT|O_EXCL|O_WRONLY, 0600)
+                                 open(name, O_CREAT|O_EXCL|O_RDWR, 0600)
 #define ngx_open_tempfile_n      "open()"
 
 ssize_t ngx_read_file(ngx_file_t *file, char *buf, size_t size, off_t offset);

--- a/src/os/unix/ngx_recv_chain.c
+++ b/src/os/unix/ngx_recv_chain.c
@@ -18,10 +18,12 @@ ssize_t ngx_recv_chain(ngx_connection_t 
     while (ce) {
         ngx_test_null(iov, ngx_push_array(&io), NGX_ERROR);
         iov->iov_base = ce->hunk->pos;
-        iov->iov_len = ce->hunk->last - ce->hunk->pos;
+        iov->iov_len = ce->hunk->end - ce->hunk->last;
         ce = ce->next;
     }
 
+ngx_log_debug(c->log, "recv: %d:%d" _ io.nelts _ iov->iov_len);
+
     n = readv(c->fd, (struct iovec *) io.elts, io.nelts);
 
     ngx_destroy_array(&io);
@@ -29,6 +31,7 @@ ssize_t ngx_recv_chain(ngx_connection_t 
     if (n == -1) {
         c->read->ready = 0;
 
+        err = ngx_errno;
         if (err == NGX_EAGAIN) {
             ngx_log_error(NGX_LOG_INFO, c->log, err, "readv() returned EAGAIN");
             return NGX_AGAIN;