diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..d25313d
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1 @@
+config/previously.txt
\ No newline at end of file
diff --git a/README.rdoc b/README.rdoc
deleted file mode 100644
index 17a609a..0000000
--- a/README.rdoc
+++ /dev/null
@@ -1,44 +0,0 @@
-== Git Commit Notifier
-
- by Csoma Zoltan (Primalgrasp) (zoltan 'at' primalgrasp 'dot' com)
-
-Sends email commit messages splitting commits that were pushed in one
-step. Email is delivered as text or HTML with changes refined per
-word. Emails have a scanable subject containing the first sentence of
-the commit as well as the author, project and branch name.
-
-For example:
-
- [rails][master] Fix Brasilia timezone. [#1180 state:resolved]
-
-A reply-to header is added containing the author of the commit. This
-makes follow up really simple. If multiple commits are pushed at once,
-emails are numbered in chronological order:
- [rails][master][000] Added deprecated warning messages to Float#months and Float#years deprications.
- [rails][master][001] Enhance testing for fractional days and weeks. Update changelog.
-
-== Requirements
-
-- Ruby
-- RubyGems
-- diff/lcs gem
-- SMTP server or sendmail compatible mailer
-- mocha, hpricot gems for testing
-
-== Installing and Configuring
-
-Make sure the following Git settings are correct:
-- git config hooks.mailinglist (email address of the recipient, probably your mailing list address)
-- git config hooks.emailprefix (application name, used in email subject)
-- see /usr/local/share/git_commit_notifier/config/config.yml for overriding these settings
-
-Run the automated installation script:
-  sudo rake install
-
-To update already installed script, use:
-  sudo rake update
-
-See /usr/local/share/git_commit_notifier/config/config.yml for setting your SMTP server address and some other mail options.
-
-== License
-MIT License, see the file LICENSE.
diff --git a/Rakefile b/Rakefile
index f28fa79..c584fe1 100644
--- a/Rakefile
+++ b/Rakefile
@@ -10,7 +10,7 @@ desc "Run tests"
 task :test do |test|
   Rake::TestTask.new do |t|
     t.libs << "test"
-    t.test_files = FileList['git_commit_notifier/test/*.rb']
+    t.test_files = FileList['test/*.rb']
     t.verbose = true
   end
 end
@@ -24,15 +24,6 @@ task :install do |install|
   raise 'hooks directory not found for the specified project - cannot continue' unless File.exist?(hooks_dir)
   hooks_dir += '/' unless hooks_dir[-1,-1] == '/'
 
-  # load default config file
-  config = YAML::load_file('git_commit_notifier/config/config.yml')
-
-  config.merge!({'projects' =>
-                     { project_path =>
-                          { 'application_name' => '', 'recipient_address' => ''}
-                     }
-                })
-
   install_path = '/usr/local/share'
 
   install_script_files(install_path)
@@ -40,12 +31,6 @@ task :install do |install|
   execute_cmd "cp post-receive #{hooks_dir}"
   execute_cmd "chmod a+x #{hooks_dir}post-receive"
 
-  # write config file
-  config_file = "#{install_path}/git_commit_notifier/config/config.yml"
-  File.open(config_file, 'w') do |f|
-    YAML.dump(config, f)
-  end
-
   Dir.chdir(project_path)
 
   puts "Warning: no Git mailing list setting exists for your project. Please go to your project directory and set it with the git config hooks.mailinglist=you@yourdomain.com command or specify 'recipient_address' in the #{config_file} file else no emails can be sent out.\n\n"  if `git config hooks.mailinglist`.empty?
diff --git a/post-receive b/bin/post-receive
similarity index 58%
rename from post-receive
rename to bin/post-receive
index ac5533b..692ac35 100755
--- a/post-receive
+++ b/bin/post-receive
@@ -1,6 +1,8 @@
 #!/usr/bin/env ruby
 # parameters: revision1, revision 2, branch
-require '/usr/local/share/git_commit_notifier/lib/commit_hook'
+THIS_FILE = File.symlink?(__FILE__) ? File.readlink(__FILE__) : __FILE__
+$:.unshift File.join(File.dirname(THIS_FILE), "../lib")
+require "commit_hook"
 
 if ARGV[0].nil?
   param = STDIN.gets.strip.split
diff --git a/git_commit_notifier/config/config.yml b/config/email.yml.sample
similarity index 72%
rename from git_commit_notifier/config/config.yml
rename to config/email.yml.sample
index 96a2ccd..5af9d03 100644
--- a/git_commit_notifier/config/config.yml
+++ b/config/email.yml.sample
@@ -1,7 +1,4 @@
-projects:
-
-email:
-  delivery_method: sendmail # smtp or sendmail
+delivery_method: sendmail # smtp or sendmail
 
 smtp_server:
   address: localhost
diff --git a/git_commit_notifier/lib/commit_hook.rb b/git_commit_notifier/lib/commit_hook.rb
deleted file mode 100644
index 88097ff..0000000
--- a/git_commit_notifier/lib/commit_hook.rb
+++ /dev/null
@@ -1,48 +0,0 @@
-require 'rubygems'
-require 'cgi'
-require 'net/smtp'
-require 'sha1'
-require File.dirname(__FILE__) + '/diff_to_html'
-require File.dirname(__FILE__) + '/emailer'
-require File.dirname(__FILE__) + '/git'
-
-class CommitHook
-
-  def self.run(rev1, rev2, ref_name, config_file = nil)
-
-    config = YAML.load_file(config_file || '/usr/local/share/git_commit_notifier/config/config.yml')
-    project_path = Dir.getwd
-
-    project_config = config['projects'] && config['projects'][project_path] ? config['projects'][project_path] : nil
-
-    recipient = project_config ? project_config['recipient_address'] : ''
-    recipient = Git.mailing_list_address if recipient.empty?
-
-    repo = project_config ? project_config['application_name'] : ''
-    repo = Git.prefix if repo.empty?
-    repo = 'scm' if repo.empty?
-    prefix = "[#{repo}][#{short_ref_name(ref_name)}]"
-
-    diff2html = DiffToHtml.new
-    diff2html.diff_between_revisions rev1, rev2, repo, ref_name
-    unless recipient.empty?
-      diff2html.result.reverse.each_with_index do |result, i|
-        nr = number(diff2html.result.size, i)
-        emailer = Emailer.new config, project_path, recipient, result[:commit_info][:email], result[:commit_info][:author],
-                       "#{prefix}#{nr} #{result[:commit_info][:message]}", result[:text_content], result[:html_content], rev1, rev2, ref_name
-        emailer.send
-      end
-    end
-  end
-
-  def self.number(total_entries, i)
-    return '' if total_entries <= 1
-    digits = total_entries < 10 ? 1 : 3
-    '[' + sprintf("%0#{digits}d", i) + ']'
-  end
-
-  def self.short_ref_name(ref_name)
-    ref_name.strip.split('/').last
-  end
-
-end
diff --git a/git_commit_notifier/lib/git.rb b/git_commit_notifier/lib/git.rb
deleted file mode 100644
index ced727c..0000000
--- a/git_commit_notifier/lib/git.rb
+++ /dev/null
@@ -1,17 +0,0 @@
-class Git
-  def self.show(rev)
-    `git show #{rev.strip} -w`
-  end
-
-  def self.log(rev1, rev2)
-    `git log #{rev1}..#{rev2}`.strip
-  end
-
-  def self.prefix
-    `git config hooks.emailprefix`.strip
-  end
-
-  def self.mailing_list_address
-    `git config hooks.mailinglist`.strip
-  end
-end
diff --git a/lib/commit_hook.rb b/lib/commit_hook.rb
new file mode 100644
index 0000000..1587f06
--- /dev/null
+++ b/lib/commit_hook.rb
@@ -0,0 +1,34 @@
+require 'rubygems'
+require 'cgi'
+require 'net/smtp'
+require 'sha1'
+
+require 'diff_to_html'
+require 'emailer'
+require 'git'
+
+class CommitHook
+
+  def self.run(rev1, rev2, ref_name)
+    project_path = Dir.getwd
+    recipient = Git.mailing_list_address
+    prefix = Git.repo_name
+    branch_name = (ref_name =~ /master$/i) ? "" : "/#{ref_name.split("/").last}"
+
+    diff2html = DiffToHtml.new
+    diff2html.diff_between_revisions rev1, rev2, prefix, ref_name
+    diff2html.result.reverse.each_with_index do |result, i|
+      nr = number(diff2html.result.size, i)
+      emailer = Emailer.new project_path, recipient, result[:commit_info][:email], result[:commit_info][:author],
+                     "[#{prefix}#{branch_name}]#{nr} #{result[:commit_info][:message]}", result[:text_content], result[:html_content], rev1, rev2, ref_name
+      emailer.send
+    end
+  end
+
+  def self.number(total_entries, i)
+    return '' if total_entries <= 1
+    digits = total_entries < 10 ? 1 : 3
+    '[' + sprintf("%0#{digits}d", i) + ']'
+  end
+
+end
diff --git a/git_commit_notifier/lib/diff_to_html.rb b/lib/diff_to_html.rb
similarity index 90%
rename from git_commit_notifier/lib/diff_to_html.rb
rename to lib/diff_to_html.rb
index 1b2615d..8558388 100644
--- a/git_commit_notifier/lib/diff_to_html.rb
+++ b/lib/diff_to_html.rb
@@ -239,7 +239,7 @@ def author_name_and_email(info)
   end
 
   def first_sentence(message_array)
-    msg = message_array.join("\n").split(/(\.\s)|\n/).first.to_s.strip
+    msg = message_array.first.to_s.strip
     return message_array.first if msg.empty? || msg =~ /^Merge\:/
     msg
   end
@@ -247,14 +247,31 @@ def first_sentence(message_array)
   def diff_between_revisions(rev1, rev2, repo, branch)
     @result = []
     if rev1 == rev2
-      commits = [[rev1]]
+      commits = [rev1]
+    elsif rev1 =~ /^0+$/
+      # creating a new remote branch
+      commits = Git.branch_commits(branch)
+    elsif rev2 =~ /^0+$/
+      # deleting an existing remote branch
+      commits = []
     else
       log = Git.log(rev1, rev2)
-      commits = log.scan /commit\s([a-f0-9]+)/
+      commits = log.scan(/^commit\s([a-f0-9]+)/).map{|match| match[0]}
     end
 
+    if defined?(Test::Unit)
+      previous_list = []
+    else
+      previous_file = (defined?(THIS_FILE) && THIS_FILE) ? File.join(File.dirname(THIS_FILE), "../config/previously.txt") : "/tmp/previously.txt"
+      previous_list = (File.read(previous_file).to_a.map {|sha| sha.chomp!} if File.exist?(previous_file)) || []
+    end
+
+    commits.reject!{|c| c.find{|sha| previous_list.include?(sha)} }
+    current_list = (previous_list + commits.flatten).last(1000)
+    File.open(previous_file, "w"){|f| f << current_list.join("\n") } unless current_list.empty? || defined?(Test::Unit)
+
     commits.each_with_index do |commit, i|
-      raw_diff = Git.show(commit[0])
+      raw_diff = Git.show(commit)
       raise "git show output is empty" if raw_diff.empty?
       @last_raw = raw_diff
 
diff --git a/git_commit_notifier/lib/emailer.rb b/lib/emailer.rb
similarity index 64%
rename from git_commit_notifier/lib/emailer.rb
rename to lib/emailer.rb
index 0fff8b4..2913ec0 100644
--- a/git_commit_notifier/lib/emailer.rb
+++ b/lib/emailer.rb
@@ -1,19 +1,24 @@
 require 'yaml'
+require 'erb'
 
 class Emailer
 
-  def initialize(config, project_path, recipient, from_address, from_alias, subject, text_message, html_message, old_rev, new_rev, ref_name)
-    @config = config
+  def initialize(project_path, recipient, from_address, from_alias, subject, text_message, html_diff, old_rev, new_rev, ref_name)
+    config_file = File.join(File.dirname(THIS_FILE), '../config/email.yml')
+    @config = YAML::load_file(config_file) if File.exist?(config_file)
+    @config ||= {}
     @project_path = project_path
     @recipient = recipient
     @from_address = from_address
     @from_alias = from_alias
     @subject = subject
     @text_message = text_message
-    @html_message = format_html(html_message)
     @ref_name = ref_name
     @old_rev = old_rev
     @new_rev = new_rev
+
+    template = File.join(File.dirname(__FILE__), '/../template/email.html.erb')
+    @html_message = ERB.new(File.read(template)).result(binding)
   end
 
   def boundary
@@ -23,28 +28,12 @@ def boundary
     @boundary = Digest::SHA1.hexdigest(seed)
   end
 
-  def format_html(html_diff)
-<<EOF
-<html><head>
-<style>#{read_css}
-</style>
-</head>
-<body>
-#{html_diff}
-</body>
-</html>
-EOF
-  end
-
-  def read_css
-    out = ''
-    File.open(File.dirname(__FILE__) + '/../stylesheets/styles.css').each { |line|
-      out += line
-    }
-    out
+  def stylesheet_string
+    stylesheet = File.join(File.dirname(__FILE__), '/../template/styles.css')
+    File.read(stylesheet)
   end
 
-  def perform_delivery_smtp(content,smtp_settings)
+  def perform_delivery_smtp(content, smtp_settings)
     settings = { }
     %w(address port domain user_name password authentication).each do |key|
       val = smtp_settings[key].to_s.empty? ? nil : smtp_settings[key]
@@ -60,13 +49,14 @@ def perform_delivery_smtp(content,smtp_settings)
     end
   end
 
-  def perform_delivery_sendmail(content, sendmail_settings)
-    args = '-i -t '
-    args += sendmail_settings['arguments'].to_s
-    IO.popen("#{sendmail_settings['location']} #{args}","w+") do |f|
-      content.each do |line|
-        f.puts line
-      end
+  def perform_delivery_sendmail(content, options = nil)
+    sendmail_settings = {
+      'location' => "/usr/sbin/sendmail",
+      'arguments' => "-i -t"
+    }.merge(options || {})
+    command = "#{sendmail_settings['location']} #{sendmail_settings['arguments']}"
+    IO.popen(command, "w+") do |f|
+      f.write(content.join("\n"))
       f.flush
     end
   end
@@ -77,6 +67,7 @@ def send
         "Reply-To: #{from}",
         "To: #{@recipient}",
         "Subject: #{@subject}",
+				"X-Mailer: git-commit-notifier",
         "X-Git-Refname: #{@ref_name}",
         "X-Git-Oldrev: #{@old_rev}",
         "X-Git-Newrev: #{@new_rev}",
@@ -93,10 +84,17 @@ def send
         "Content-Disposition: inline\n\n\n",
         @html_message,
         "--#{boundary}--"]
-    if @config['email']['delivery_method'] == 'smtp'
+
+    if @recipient.empty?
+      puts content.join("\n")
+      return
+    end
+
+    if @config['delivery_method'] == 'smtp'
       perform_delivery_smtp(content, @config['smtp_server'])
     else
       perform_delivery_sendmail(content, @config['sendmail_options'])
     end
   end
+
 end
diff --git a/lib/git.rb b/lib/git.rb
new file mode 100644
index 0000000..e315412
--- /dev/null
+++ b/lib/git.rb
@@ -0,0 +1,35 @@
+class Git
+  def self.show(rev)
+    `git show #{rev.strip} -w`
+  end
+
+  def self.log(rev1, rev2)
+    `git log #{rev1}..#{rev2}`.strip
+  end
+
+  def self.branch_commits(treeish)
+    args = Git.branch_heads - [Git.branch_head(treeish)]
+    args.map! {|tree| "^#{tree}"}
+    args << treeish
+    `git rev-list #{args.join(' ')}`.to_a.map{|commit| commit.chomp}
+  end
+
+  def self.branch_heads
+    `git rev-parse --branches`.to_a.map{|head| head.chomp}
+  end
+
+  def self.branch_head(treeish)
+    `git rev-parse #{treeish}`.strip
+  end
+
+  def self.repo_name
+    git_prefix = `git config hooks.emailprefix`.strip
+    return git_prefix unless git_prefix.empty?
+    dir_name = `pwd`.chomp.split("/").last.gsub(/\.git$/, '')
+    return "#{dir_name}"
+  end
+
+  def self.mailing_list_address
+    `git config hooks.mailinglist`.strip
+  end
+end
diff --git a/git_commit_notifier/lib/result_processor.rb b/lib/result_processor.rb
similarity index 100%
rename from git_commit_notifier/lib/result_processor.rb
rename to lib/result_processor.rb
diff --git a/template/email.html.erb b/template/email.html.erb
new file mode 100644
index 0000000..7798796
--- /dev/null
+++ b/template/email.html.erb
@@ -0,0 +1,9 @@
+<html><head>
+<style>
+  <%= stylesheet_string %>
+</style>
+</head>
+<body>
+  <%= html_diff %>
+</body>
+</html>
diff --git a/git_commit_notifier/stylesheets/styles.css b/template/styles.css
similarity index 96%
rename from git_commit_notifier/stylesheets/styles.css
rename to template/styles.css
index 390a4e3..bc60c4b 100644
--- a/git_commit_notifier/stylesheets/styles.css
+++ b/template/styles.css
@@ -1,4 +1,4 @@
-* {font-size:12px;}
+* {font-size:11px;}
 h2 {font-family:Verdana;font-size:12px;background-color: #bbb; font-weight: bold; line-height:25px; margin-bottom:2px; padding-left:5px}
 table {width:100%;border-collapse:collapse}
 .r {background-color: #fdd;}
diff --git a/git_commit_notifier/test/commit_hook_test.rb b/test/commit_hook_test.rb
similarity index 89%
rename from git_commit_notifier/test/commit_hook_test.rb
rename to test/commit_hook_test.rb
index de7fb9d..be712f1 100644
--- a/git_commit_notifier/test/commit_hook_test.rb
+++ b/test/commit_hook_test.rb
@@ -17,7 +17,6 @@ def test_hook
     emailer = mock('Emailer')
     Emailer.expects(:new).times(4).returns(emailer) # 4 commit, one email for each of them
     emailer.expects(:send).times(4)
-    config_file = File.dirname(__FILE__) + '/../config/config.yml'
-    CommitHook.run REVISIONS.first, REVISIONS.last, 'refs/heads/master', config_file
+    CommitHook.run REVISIONS.first, REVISIONS.last, 'refs/heads/master'
   end
 end
diff --git a/git_commit_notifier/test/diff_to_html_test.rb b/test/diff_to_html_test.rb
similarity index 97%
rename from git_commit_notifier/test/diff_to_html_test.rb
rename to test/diff_to_html_test.rb
index d2140ba..9a9acbe 100644
--- a/git_commit_notifier/test/diff_to_html_test.rb
+++ b/test/diff_to_html_test.rb
@@ -68,7 +68,7 @@ def test_single_commit
     diff = DiffToHtml.new
     diff.diff_between_revisions REVISIONS.first, REVISIONS.first, 'testproject', 'master'
     assert_equal 1, diff.result.size # single result for a single commit
-    assert_equal 'Allow use of :path_prefix and :name_prefix outside of namespaced routes', diff.result.first[:commit_info][:message]
+    assert_equal 'Allow use of :path_prefix and :name_prefix outside of namespaced routes. [#1188 state:resolved]', diff.result.first[:commit_info][:message]
     assert_equal 'Tom Stuart', diff.result.first[:commit_info][:author]
     assert_equal 'tom@experthuman.com', diff.result.first[:commit_info][:email]
 
diff --git a/git_commit_notifier/test/fixtures/git_log b/test/fixtures/git_log
similarity index 100%
rename from git_commit_notifier/test/fixtures/git_log
rename to test/fixtures/git_log
diff --git a/git_commit_notifier/test/fixtures/git_show_51b986619d88f7ba98be7d271188785cbbb541a0 b/test/fixtures/git_show_51b986619d88f7ba98be7d271188785cbbb541a0
similarity index 100%
rename from git_commit_notifier/test/fixtures/git_show_51b986619d88f7ba98be7d271188785cbbb541a0
rename to test/fixtures/git_show_51b986619d88f7ba98be7d271188785cbbb541a0
diff --git a/git_commit_notifier/test/fixtures/git_show_a4629e707d80a5769f7a71ca6ed9471015e14dc9 b/test/fixtures/git_show_a4629e707d80a5769f7a71ca6ed9471015e14dc9
similarity index 100%
rename from git_commit_notifier/test/fixtures/git_show_a4629e707d80a5769f7a71ca6ed9471015e14dc9
rename to test/fixtures/git_show_a4629e707d80a5769f7a71ca6ed9471015e14dc9
diff --git a/git_commit_notifier/test/fixtures/git_show_dce6ade4cdc2833b53bd600ef10f9bce83c7102d b/test/fixtures/git_show_dce6ade4cdc2833b53bd600ef10f9bce83c7102d
similarity index 100%
rename from git_commit_notifier/test/fixtures/git_show_dce6ade4cdc2833b53bd600ef10f9bce83c7102d
rename to test/fixtures/git_show_dce6ade4cdc2833b53bd600ef10f9bce83c7102d
diff --git a/git_commit_notifier/test/fixtures/git_show_e28ad77bba0574241e6eb64dfd0c1291b221effe b/test/fixtures/git_show_e28ad77bba0574241e6eb64dfd0c1291b221effe
similarity index 100%
rename from git_commit_notifier/test/fixtures/git_show_e28ad77bba0574241e6eb64dfd0c1291b221effe
rename to test/fixtures/git_show_e28ad77bba0574241e6eb64dfd0c1291b221effe
diff --git a/git_commit_notifier/test/result_processor_test.rb b/test/result_processor_test.rb
similarity index 100%
rename from git_commit_notifier/test/result_processor_test.rb
rename to test/result_processor_test.rb
diff --git a/git_commit_notifier/test/test_helper.rb b/test/test_helper.rb
similarity index 100%
rename from git_commit_notifier/test/test_helper.rb
rename to test/test_helper.rb