diff --git a/build-system.jam b/build-system.jam
index 04e1cc978..cbe9e49dd 100755
--- a/build-system.jam
+++ b/build-system.jam
@@ -20,7 +20,7 @@ import feature ;
 import property-set ;
 import build-request ;
 import errors : error ;
-import class : new ;
+import class : xnew ;
 
 import builtin ;
 import make ;
@@ -143,7 +143,7 @@ virtual-targets = ;
 
 if $(expanded) 
 {        
-    local dr-adjuster = [ new directly-requested-properties-adjuster ] ;    
+    local dr-adjuster = [ xnew directly-requested-properties-adjuster ] ;    
     for local p in $(expanded)
     {
         $(dr-adjuster).add-requested-property-set $(p) ;
diff --git a/new/build-request.jam b/new/build-request.jam
index 8eb26c683..8c0cdc10e 100644
--- a/new/build-request.jam
+++ b/new/build-request.jam
@@ -249,11 +249,17 @@ local rule convert-command-line-element ( e )
 #
 # will cause a release version of 'b' to be compiled and linked into 'a'. The 
 # release version will be compiled without "define=MACROS".
-rule directly-requested-properties-adjuster
-{
+xclass directly-requested-properties-adjuster
+{    
     import property-set ;
-    self.empty-request-requirements = ;
-    self.all-requests = [ new property-map ] ;
+    import class : xnew ;
+    
+    rule __init__ ( )
+    {            
+        self.empty-request-requirements = ;
+        self.all-requests = [ xnew property-map ] ;
+    }        
+            
     rule add-requested-property-set ( property-set )
     {        
         local base = [ $(property-set).base ] ;
@@ -294,9 +300,6 @@ rule directly-requested-properties-adjuster
     }    
 }
 
-class directly-requested-properties-adjuster ;
-
-
 rule __test__ ( )
 {
     import assert feature ;
diff --git a/new/builtin.jam b/new/builtin.jam
index d0884d215..363237b6c 100644
--- a/new/builtin.jam
+++ b/new/builtin.jam
@@ -317,12 +317,16 @@ actions quietly piecemeal response-file-2
 }
 #####
 
-rule c-scanner ( includes * )
+xclass c-scanner : scanner 
 {
-    scanner.__init__ ;
+    import regex virtual-target path scanner ;    
     
-    import regex virtual-target path scanner ;
-    self.includes = $(includes) ;
+    rule __init__ ( includes * )
+    {
+        scanner.__init__ ;
+    
+        self.includes = $(includes) ;
+    }    
 
     rule pattern ( )
     {
@@ -370,7 +374,6 @@ rule c-scanner ( includes * )
     }        
 }
 
-class c-scanner : scanner ;
 scanner.register c-scanner : include ;
 
 type.set-scanner CPP : c-scanner ;
@@ -484,7 +487,6 @@ xclass searched-lib-generator : generator
 
 generators.register [ xnew searched-lib-generator ] ;
 
-
 xclass compile-action : action 
 {
     import sequence ;
diff --git a/new/generators.jam b/new/generators.jam
index daad224a5..6d3ae035d 100644
--- a/new/generators.jam
+++ b/new/generators.jam
@@ -252,7 +252,7 @@ xclass generator
     # - value to <toolset> feature in properties
     rule clone ( new-id : new-toolset-name )
     {
-        return [ new $(__class__) $(new-id)
+        return [ xnew $(__class__) $(new-id)
                  : $(self.source-types)
                  : $(self.target-types-and-names) 
                  : [ property.change $(self.requirements) 
diff --git a/new/project-root.jam b/new/project-root.jam
index 026dd632b..dfbaa290c 100644
--- a/new/project-root.jam
+++ b/new/project-root.jam
@@ -88,25 +88,29 @@ rule print ( )
 
 # Class encapsulating settings for a single project root.
 #
-rule project-root-object (
-    location # The root location.
-    )
+xclass project-root-object 
 {
     import path ;
-    import set ;
+    import set ;    
+    import sequence : insertion-sort ;
     
-    # The module name of the project-root.
-    self.module = project-root<$(location)> ;
+    rule __init__ (
+      location # The root location.
+    )
+    {        
+        # The module name of the project-root.
+        self.module = project-root<$(location)> ;
     
-    # The location of the project-root, as a path.
-    self.location = $(location) ;
+        # The location of the project-root, as a path.
+        self.location = $(location) ;
     
-    # The set of projects registered in this project-root.
-    self.projects = ;
-    
-    # The set of interned constants for this project-root.
-    self.constants = ;
+        # The set of projects registered in this project-root.
+        self.projects = ;
     
+        # The set of interned constants for this project-root.
+        self.constants = ;
+    }
+        
     # Accessor, the module of the project root.
     rule get-module ( )
     {
@@ -204,6 +208,24 @@ rule project-root-object (
         }
     }
     
+    # Needed to get deterministic order of output, which makes testing simpler
+    rule compare-projects ( p1 p2 )
+    {
+        local id1 = [ project.attribute $(p1) id ] ;
+        local id2 = [ project.attribute $(p2) id ] ;
+        if $(id1) < $(id2)
+        {
+            return true ;
+        }
+        else
+        {
+            if $(id1) = $(id2) && $(p1) < $(p2)
+            {
+                return true ;
+            }
+        }
+    }
+        
     # Print out info about this project root. Calls print on the
     # individual projects in this project-root.
     #
@@ -213,23 +235,6 @@ rule project-root-object (
         import print ;
         import project ;
     
-        # Needed to get deterministic order of output, which makes testing simpler
-        local rule compare-projects ( p1 p2 )
-        {
-            local id1 = [ project.attribute $(p1) id ] ;
-            local id2 = [ project.attribute $(p2) id ] ;
-            if $(id1) < $(id2)
-            {
-                return true ;
-            }
-            else
-            {
-                if $(id1) = $(id2) && $(p1) < $(p2)
-                {
-                    return true ;
-                }
-            }
-        }
     
         print.section "'"$(self.location)"'" Module for project-root is "'"$(self.module)"'" ;
         if $(self.constants)
@@ -246,7 +251,7 @@ rule project-root-object (
         if $(self.projects)
         {
             print.section Projects ;
-            local projects = [ sequence.insertion-sort $(self.projects) : compare-projects ] ;
+            local projects = [ insertion-sort $(self.projects) : compare-projects ] ;
             for local p in $(projects)
             {
                 local attributes = [ project.attributes $(p) ] ;
@@ -255,7 +260,6 @@ rule project-root-object (
         }
     }
 }
-class.class project-root-object ;
 
 # Rules callable by the user in the context of the project-root.jam of a project.
 #
diff --git a/new/project-roots.jam b/new/project-roots.jam
index 2180404f3..6aa7379ed 100755
--- a/new/project-roots.jam
+++ b/new/project-roots.jam
@@ -43,7 +43,7 @@ rule load (
     {
         # Create the project-root, and remember it.
         #
-        local root = [ class.new project-root-object $(location) ] ;
+        local root = [ class.xnew project-root-object $(location) ] ;
         modules.poke $(module-name) : .project-root : $(root) ;
         .roots += $(root) ;
         
@@ -97,24 +97,30 @@ rule print ( )
 
 # Class encapsulating settings for a single project root.
 #
-rule project-root-object (
-    location # The root location.
-    )
+xclass project-root-object 
 {
     import path ;
-    import set ;
+    import set ;    
+    import sequence ;
+    import print ;
+    import project ;
+        
+    rule __init__ (
+      location # The root location.
+    )
+    {        
+        # The module name of the project-root.
+        self.module = project-root<$(location)> ;
     
-    # The module name of the project-root.
-    self.module = project-root<$(location)> ;
+        # The location of the project-root, as a path.
+        self.location = $(location) ;
     
-    # The location of the project-root, as a path.
-    self.location = $(location) ;
+        # The set of projects registered in this project-root.
+        self.projects = ;
     
-    # The set of projects registered in this project-root.
-    self.projects = ;
-    
-    # The set of interned constants for this project-root.
-    self.constants = ;
+        # The set of interned constants for this project-root.
+        self.constants = ;
+    }    
     
     # Accessor, the module of the project root.
     rule get-module ( )
@@ -213,33 +219,30 @@ rule project-root-object (
         }
     }
     
+    # Needed to get deterministic order of output, which makes testing simpler
+    local rule compare-projects ( p1 p2 )
+    {
+        local id1 = [ project.attribute $(p1) id ] ;
+        local id2 = [ project.attribute $(p2) id ] ;
+        if $(id1) < $(id2)
+        {
+            return true ;
+        }
+        else
+        {
+            if $(id1) = $(id2) && $(p1) < $(p2)
+            {
+                return true ;
+            }
+        }
+    }
+    
+    
     # Print out info about this project root. Calls print on the
     # individual projects in this project-root.
     #
     rule print ( )
-    {
-        import sequence ;
-        import print ;
-        import project ;
-    
-        # Needed to get deterministic order of output, which makes testing simpler
-        local rule compare-projects ( p1 p2 )
-        {
-            local id1 = [ project.attribute $(p1) id ] ;
-            local id2 = [ project.attribute $(p2) id ] ;
-            if $(id1) < $(id2)
-            {
-                return true ;
-            }
-            else
-            {
-                if $(id1) = $(id2) && $(p1) < $(p2)
-                {
-                    return true ;
-                }
-            }
-        }
-    
+    {        
         print.section "'"$(self.location)"'" Module for project-root is "'"$(self.module)"'" ;
         if $(self.constants)
         {
@@ -264,7 +267,6 @@ rule project-root-object (
         }
     }
 }
-class.class project-root-object ;
 
 # Rules callable by the user in the context of the project-root.jam of a project.
 #
diff --git a/new/project.jam b/new/project.jam
index 74af9a763..4fe4ba6d4 100644
--- a/new/project.jam
+++ b/new/project.jam
@@ -301,7 +301,7 @@ rule initialize (
     module $(module-name)
     {          
     }    
-    $(module-name).attributes = [ new project-attributes $(location) ] ;
+    $(module-name).attributes = [ xnew project-attributes $(location) ] ;
     local attributes = $($(module-name).attributes) ;
     
     $(attributes).set source-location : $(location) : exact ;    
@@ -381,20 +381,25 @@ rule register-id ( id : module )
 #
 # The standard attributes are "id", "location", "project-root", "parent"
 # "requirements", "default-build", "source-location" and "projects-to-build".
-rule project-attributes ( location )
+xclass project-attributes 
 {
     import property ;
     import property-set ;
     import errors ;
     import path ;
-    
-    self.location = $(location) ;
-
+    import print ;
+    import sequence ;
+        
+    rule __init__ ( location )
+    {       
+        self.location = $(location) ;
+    }
+            
     # Set the named attribute from the specification given by the user.
     # The value actually set may be different.
     rule set ( attribute : specification * 
-               : exact ? # Sets value from 'specification' without any processing
-               ) 
+        : exact ? # Sets value from 'specification' without any processing
+        ) 
     {
         if $(exact)
         {
@@ -487,9 +492,6 @@ rule project-attributes ( location )
     # Prints the project attributes.
     rule print ( )
     {
-        import sequence ;
-        import print ;
-
         local id = $(self.id) ; id ?= (none) ;
         local parent = $(self.parent) ; parent ?= (none) ;
         print.section "'"$(id)"'" ;
@@ -505,8 +507,6 @@ rule project-attributes ( location )
     
 }
 
-class project-attributes ;
-
 # Returns the project-attribute instance for the specified jamfile module.
 rule attributes ( project )
 {
diff --git a/new/property-set.jam b/new/property-set.jam
index 4f85c049b..91495a122 100644
--- a/new/property-set.jam
+++ b/new/property-set.jam
@@ -3,7 +3,7 @@
 #  all copies. This software is provided "as is" without express or implied
 #  warranty, and with no claim as to its suitability for any purpose.
 
-import class : class new ;
+import class : class xnew ;
 import feature ;
 import property ;
 import sequence ;
@@ -20,43 +20,47 @@ import sequence ;
 # - several operations, like and refine and as-path are provided. They all use
 #   caching whenever possible.
 #
-local rule property-set ( raw-properties * )
+xclass property-set 
 {
     import feature ;
     import property-set ;
     import property ;
-    
-    self.raw = $(raw-properties) ;
-    
-    for local p in $(raw-properties)
-    {
-        local att = [ feature.attributes $(p:G) ] ;        
-        if incidental in $(att)
-        {
-            self.incidental += $(p) ;
-        }
-        else if free in $(att)
-        {
-            if dependency in $(att)
-            {
-                self.dependency += $(p) ;
-            }
-            else
-            {
-                self.free += $(p) ;
-            }            
-        }
-        else 
-        {
-            self.base += $(p) ;
-        }
+            
+    rule __init__ ( raw-properties * )
+    {        
+        self.raw = $(raw-properties) ;
         
-        if propagated in $(att)
+        for local p in $(raw-properties)
         {
-            self.propagated += $(p) ;
-        }                        
+            local att = [ feature.attributes $(p:G) ] ;        
+            if incidental in $(att)
+            {
+                self.incidental += $(p) ;
+            }
+            else if free in $(att)
+            {
+                if dependency in $(att)
+                {
+                    self.dependency += $(p) ;
+                }
+                else
+                {
+                    self.free += $(p) ;
+                }            
+            }
+            else 
+            {
+                self.base += $(p) ;
+            }
+            
+            if propagated in $(att)
+            {
+                self.propagated += $(p) ;
+            }                        
+        }
     }
     
+    
     # Returns Jam list of stored properties
     rule raw ( )
     {
@@ -187,8 +191,6 @@ local rule property-set ( raw-properties * )
     
 }
 
-class property-set ;
-
 # Creates new 'property-set' instance for the given raw properties,
 # or returns an already existing ones.
 rule create ( raw-properties * )
@@ -200,7 +202,7 @@ rule create ( raw-properties * )
     
     if ! $(.ps.$(key)) 
     {
-        .ps.$(key) = [ new property-set $(raw-properties) ] ;
+        .ps.$(key) = [ xnew property-set $(raw-properties) ] ;
     }
     return $(.ps.$(key)) ;    
 }
diff --git a/new/property.jam b/new/property.jam
index 602218888..7c2f04869 100644
--- a/new/property.jam
+++ b/new/property.jam
@@ -386,14 +386,17 @@ rule translate-paths ( properties * : path )
 
 # Class which maintains a property set -> string
 # mapping
-rule property-map ( )
+xclass property-map
 {
     import numbers ;
     import sequence ;
     import errors : error ;
     
-    self.next-flag = 1 ;
-
+    rule __init__ ( )
+    {        
+        self.next-flag = 1 ;
+    }
+    
     # Associate 'value' with 'properties'
     rule insert ( properties + : value )
     {
@@ -445,9 +448,6 @@ rule property-map ( )
     }      
 }
 
-class property-map ;
-
-
 local rule __test__ ( )
 {
     import errors : try catch ;
@@ -472,7 +472,7 @@ local rule __test__ ( )
     compose <variant>release : <define>NDEBUG <optimization>on ;
 
     import assert ;
-    import class : new ;
+    import class : xnew ;
     
     validate gcc gcc-3.0.1 : $(test-space) ;
     validate <toolset>gcc  <toolset>gcc-3.0.1 : $(test-space) ;
@@ -559,7 +559,7 @@ local rule __test__ ( )
     assert.result <toolset>kylix <include>a 
         : change <toolset>gcc <include>a : toolset kylix ;
 
-    pm = [ new property-map ] ;
+    pm = [ xnew property-map ] ;
     $(pm).insert <toolset>gcc : o ;
     $(pm).insert <toolset>gcc <os>NT : obj ;
     $(pm).insert <toolset>gcc <os>CYGWIN : obj ;
diff --git a/new/scanner.jam b/new/scanner.jam
index ea04c17d7..6f8cc006b 100644
--- a/new/scanner.jam
+++ b/new/scanner.jam
@@ -26,12 +26,16 @@
 #  actual targets. However, actions can also create scanners in a special
 #  way, instead of relying on just target type.
 
-import class : class new ;
+import class : class xnew ;
 import property virtual-target ;
 
 #  Base scanner class. 
-rule scanner ( )
+xclass scanner 
 {
+    rule __init__ ( )
+    {
+    }
+    
     # Returns a pattern to use for scanning
     rule pattern ( )
     {
@@ -47,8 +51,6 @@ rule scanner ( )
     }        
 }
 
-class scanner ;
-
 # Registers a new generator class, specifying a set of 
 # properties relevant to this scanner.  Ctor for that class
 # should have one parameter: list of properties.
@@ -74,7 +76,7 @@ rule get ( scanner-class : properties * )
     }    
     if ! $(scanner.$(scanner-class).$(r:J=-))
     {
-        scanner.$(scanner-class).$(r:J=-) = [ new $(scanner-class) $(r) ] ;
+        scanner.$(scanner-class).$(r:J=-) = [ xnew $(scanner-class) $(r) ] ;
     }
     return $(scanner.$(scanner-class).$(r:J=-)) ;    
 }
diff --git a/new/targets.jam b/new/targets.jam
index c591d695d..b083d41f0 100644
--- a/new/targets.jam
+++ b/new/targets.jam
@@ -983,7 +983,7 @@ xclass basic-target : abstract-target
         # is created.
         local all-targets = 
           [ sequence.transform virtual-target.traverse : $(targets) ] ; 
-        local dg = [ new subvariant-dg $(__name__) : $(build-request) 
+        local dg = [ xnew subvariant-dg $(__name__) : $(build-request) 
           : $(rproperties) : $(all-targets) ] ;
         for local v in $(all-targets)          
         {
diff --git a/new/testing.jam b/new/testing.jam
index fcb83e4db..b72ecdd2b 100644
--- a/new/testing.jam
+++ b/new/testing.jam
@@ -15,8 +15,8 @@ import toolset ;
 # lanch test programs. 
 feature.feature testing.launcher : : optional free ;
 
-xclass unit-test-target-class : basic-target
-{
+xclass unit-test-target-class : typed-target
+{    
     rule __init__ ( name : project : sources * : requirements * 
                          : default-build * )
     {
@@ -40,8 +40,6 @@ xclass unit-test-target-class : basic-target
     }   
 }
 
-class unit-test-target-class : typed-target ;
-
 toolset.flags testing.run LAUNCHER <testing.launcher> ;
 
 
diff --git a/new/type.jam b/new/type.jam
index 1c54cc665..721cef837 100644
--- a/new/type.jam
+++ b/new/type.jam
@@ -28,7 +28,7 @@ feature.feature base-target-type : : composite optional free ;
 # feature.feature main-target-type : : composite optional incidental ;
 
 # Store suffixes for generated targets
-.suffixes = [ new property-map ] ;
+.suffixes = [ xnew property-map ] ;
 
 # Registers a target type, possible derived from a 'base-type'. 
 # If 'suffixes' are provided, they given all the suffixes that mean a file is of 'type'.
diff --git a/new/utility.jam b/new/utility.jam
index 0fd45e847..f50abecf5 100644
--- a/new/utility.jam
+++ b/new/utility.jam
@@ -99,13 +99,17 @@ rule apply-default-suffix ( suffix : list * )
 local rule __test__ ( )
 {
     import assert ;
-    import class : class new ;
+    import class : xnew ;
     assert.result foo bar : ungrist <foo> <bar> ;
 
     assert.result 123 : str 123 ;
 
-    local rule test-class__ ( )
+    xclass test-class__ 
     {
+        rule __init__ ( )
+        {            
+        }
+        
         rule str ( )
         {
             return "str-test-class" ;
@@ -121,15 +125,14 @@ local rule __test__ ( )
             return "not sure" ;
         }
     }
-    class test-class__ ;
 
-    assert.result "str-test-class" : str [ new test-class__ ] ;
+    assert.result "str-test-class" : str [ xnew test-class__ ] ;
     assert.true less 1 2 ;
     assert.false less 2 1 ;
-    assert.result "yes, of course!" : less [ new test-class__ ] 1 ;
+    assert.result "yes, of course!" : less [ xnew test-class__ ] 1 ;
     assert.true equal 1 1 ;
     assert.false equal 1 2 ;
-    assert.result "not sure" : equal [ new test-class__ ] 1 ;
+    assert.result "not sure" : equal [ xnew test-class__ ] 1 ;
     
     assert.result foo.lib foo.a : apply-default-suffix .lib : foo foo.a ;
 }
diff --git a/new/virtual-target.jam b/new/virtual-target.jam
index fe54c9b32..3085b5f8d 100644
--- a/new/virtual-target.jam
+++ b/new/virtual-target.jam
@@ -921,42 +921,46 @@ local rule clone-action-template ( action from cloned-from : new-source )
     return $(cloned) ;
 }
 
-local rule subvariant-dg ( main-target # The instance of main-target class
-    : property-set                     # Properties requested for this target
-    : actual-properties                # Actual used properties
-    : virtual-targets * )
+xclass subvariant-dg 
 {
-    import sequence ;
+    import sequence ;    
     
-    self.main-target = $(main-target) ;
-    self.properties = $(property-set) ;
-    self.actual-properties = $(actual-properties) ;
-    self.virtual-targets = $(virtual-targets) ;
+    rule __init__ ( main-target # The instance of main-target class
+        : property-set                     # Properties requested for this target
+        : actual-properties                # Actual used properties
+        : virtual-targets * )
+    {        
+        self.main-target = $(main-target) ;
+        self.properties = $(property-set) ;
+        self.actual-properties = $(actual-properties) ;
+        self.virtual-targets = $(virtual-targets) ;
 
-    # Pre-compose the list of other dependency graphs, on which this one
-    # depends
-    local deps = [ $(actual-properties).dependency ] ;
-    for local d in $(deps)
-    {
-        self.other-dg += [ $(d:G=).dg ] ;
-    }
-    
-    for local t in $(virtual-targets)
-    {
-        local a = [ $(t).action ] ;
-        if $(a)
+        # Pre-compose the list of other dependency graphs, on which this one
+        # depends
+        local deps = [ $(actual-properties).dependency ] ;
+        for local d in $(deps)
         {
-            for local s in [ $(a).sources ]
+            self.other-dg += [ $(d:G=).dg ] ;
+        }
+        
+        for local t in $(virtual-targets)
+        {
+            local a = [ $(t).action ] ;
+            if $(a)
             {
-                if [ $(s).root ]
+                for local s in [ $(a).sources ]
                 {
-                    self.other-dg += [ $(s).dg ] ;
+                    if [ $(s).root ]
+                    {
+                        self.other-dg += [ $(s).dg ] ;
+                    }
                 }
             }
         }
-    }
         
-    self.other-dg = [ sequence.unique $(self.other-dg) ] ;
+        self.other-dg = [ sequence.unique $(self.other-dg) ] ;
+    }
+    
                
     rule main-target ( )
     {
@@ -992,5 +996,3 @@ local rule subvariant-dg ( main-target # The instance of main-target class
     }   
 }
 
-class subvariant-dg ;
-
diff --git a/tools/boostbook.jam b/tools/boostbook.jam
index 430d26192..4417e11d3 100644
--- a/tools/boostbook.jam
+++ b/tools/boostbook.jam
@@ -165,13 +165,16 @@ rule docbook-to-fo ( target : source : properties * )
   xslt $(target) : $(source) $(stylesheet) : $(properties) ;
 }
 
-rule xml-catalog-action ( target : property-set ? : catalog-entries * )
+xclass xml-catalog-action : action
 {
-  import boostbook ;
-  import print ;
-
-  action.__init__ $(target) : : generate-xml-catalog : $(property-set) ;
+    import boostbook ;
+    import print ;
 
+    rule __init__ ( target : property-set ? : catalog-entries * )
+    {
+        action.__init__ $(target) : : generate-xml-catalog : $(property-set) ;
+    }
+    
   rule actualize ( )
   {
     if ! $(self.actualized)
@@ -230,24 +233,26 @@ rule xml-catalog-action ( target : property-set ? : catalog-entries * )
   }
 }
 
-class xml-catalog-action : action ;
-
-rule boostbook-target-class ( name : project : sources * : requirements * 
-                              : default-build * : catalog-entries * )
+xclass boostbook-target-class : basic-target
 {
-  import feature ;
-  import virtual-target ;
-  import generators ;
-
-  basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
-                         : $(default-build) ;
-  self.catalog-entries = $(catalog-entries) ;
+    import feature ;
+    import virtual-target ;
+    import generators ;
+        
+    rule __init__ ( name : project : sources * : requirements * 
+                              : default-build * : catalog-entries * )
+    {
 
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
+          : $(default-build) ;
+        self.catalog-entries = $(catalog-entries) ;
+    }
+    
   rule construct ( source-targets * : property-set )
   {
     local path = [ project.attribute $(self.project) location ] ;
-    local catalog = [ new file-target catalog : XML : $(self.project) ] ;
-    $(catalog).action [ new xml-catalog-action $(catalog) : $(property-set) 
+    local catalog = [ xnew file-target catalog : XML : $(self.project) ] ;
+    $(catalog).action [ xnew xml-catalog-action $(catalog) : $(property-set) 
                                                : $(self.catalog-entries) ] ;
 
     $(catalog).set-path $(path) ;
@@ -313,14 +318,12 @@ rule boostbook-target-class ( name : project : sources * : requirements *
   }
 }
 
-class boostbook-target-class : basic-target ;
-
 rule boostbook ( target-name : sources * : requirements * : default-build * )
 { 
   local project = [ CALLER_MODULE ] ;
  
   targets.main-target-alternative 
-    [ new boostbook-target-class $(target-name) : $(project) 
+    [ xnew boostbook-target-class $(target-name) : $(project) 
         : [ targets.main-target-sources $(sources) : $(target-name) ] 
         : [ targets.main-target-requirements $(requirements) : $(project) ]
         : [ targets.main-target-default-build $(default-build) : $(project) ] 
diff --git a/tools/doxygen.jam b/tools/doxygen.jam
index 5c22d579b..d16ffc2b9 100644
--- a/tools/doxygen.jam
+++ b/tools/doxygen.jam
@@ -9,7 +9,7 @@
 #  version of Doxygen that can output a single XML file instead of a
 #  set of XML files.
 
-import class : class new ;
+import class : xnew ;
 import targets ;
 import feature ;
 import property ;
@@ -90,17 +90,21 @@ rule xml-to-boostbook ( target : source : properties * )
                  ;
 }
 
-rule doxygen-xml-target-class ( name : project : sources * : requirements *
-                                : default-build * )
+xclass doxygen-xml-target-class : basic-target
 {
-  basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
-                        : $(default-build) ;
+    rule __init__ ( name : project : sources * : requirements *
+        : default-build * )
+    {
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
+          : $(default-build) ;
+    }
+    
   
   rule construct ( source-targets * : property-set )
   {
     local target = 
-       [ new file-target $(self.name) : DOXYGEN_XML : $(self.project) ] ;
-    local a = [ new action $(target) : $(source-targets) : doxygen.extract-xml 
+       [ xnew file-target $(self.name) : DOXYGEN_XML : $(self.project) ] ;
+    local a = [ xnew action $(target) : $(source-targets) : doxygen.extract-xml 
                 : $(property-set) ] ;
     $(target).action $(a) ;
 
@@ -108,13 +112,11 @@ rule doxygen-xml-target-class ( name : project : sources * : requirements *
   }
 }
 
-class doxygen-xml-target-class : basic-target ;
-
 rule doxygen ( target-name : sources * : requirements * : default-build * )
 {
   local project = [ CALLER_MODULE ] ;
   targets.main-target-alternative
-    [ new doxygen-xml-target-class $(target-name) : $(project) : $(sources)
+    [ xnew doxygen-xml-target-class $(target-name) : $(project) : $(sources)
         : [ targets.main-target-requirements $(requirements) : $(project) ]
         : [ targets.main-target-default-build $(default-build) : $(project) ]
     ] ;
diff --git a/tools/gettext.jam b/tools/gettext.jam
index f730ba555..3a13555b4 100644
--- a/tools/gettext.jam
+++ b/tools/gettext.jam
@@ -47,7 +47,7 @@
 import targets ;
 import property-set ;
 import virtual-target ;
-import class : class new ;
+import class : class xnew ;
 import project ;
 import type ;
 import generators ;
@@ -89,7 +89,7 @@ rule update ( name : existing-translation sources + : requirements * )
     local project = [ CALLER_MODULE ] ;
     
     targets.main-target-alternative
-      [ new update-translations-class $(name) : $(project) : 
+      [ xnew update-translations-class $(name) : $(project) : 
         $(existing-translation) $(sources)
         : [ targets.main-target-requirements $(requirements) : $(project) ]        
       ] ;
@@ -115,13 +115,16 @@ feature gettext.types : : free ;
 
 generators.register-standard gettext.compile : gettext.PO : gettext.catalog ;
 
-rule update-translations-class ( name : project : sources * : requirements )
+xclass update-translations-class : basic-target
 {
-    basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements) 
-                              : $(default-build) ;
-    
-    IMPORT gettext : regex.split : $(__name__) : regex.split ;
-
+    import regex : split ;
+   
+    rule __init__ ( name : project : sources * : requirements )
+    {
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements) 
+          : $(default-build) ;
+    }
+            
     rule construct ( source-targets * : property-set )
     {
         local types = [ $(property-set).get <gettext.types> ] ;
@@ -149,13 +152,13 @@ rule update-translations-class ( name : project : sources * : requirements )
             
             if $(right-sources)
             {                                                                                        
-                local new-messages = [ new file-target $(self.name) : gettext.POT : $(self.project) ] ;
+                local new-messages = [ xnew file-target $(self.name) : gettext.POT : $(self.project) ] ;
                 local extract = 
-                  [ new action $(new-messages) : $(right-sources) : gettext.extract ] ;
+                  [ xnew action $(new-messages) : $(right-sources) : gettext.extract ] ;
                 $(new-messages).action $(extract) ;
                 
-                local r = [ new notfile-target $(self.name) : $(self.project) ] ;
-                local a = [ new action $(r) : $(source-targets[1]) $(new-messages) 
+                local r = [ xnew notfile-target $(self.name) : $(self.project) ] ;
+                local a = [ xnew action $(r) : $(source-targets[1]) $(new-messages) 
                   : gettext.update-po-dispatch ] ;
                 $(r).action $(a) ;
                 .constructed = [ virtual-target.register $(r) ] ;
@@ -172,7 +175,6 @@ rule update-translations-class ( name : project : sources * : requirements )
     {        
     }
 }
-class update-translations-class : basic-target ;
 
 flags gettext.extract KEYWORD <gettext.keyword> ;
 actions extract
diff --git a/v2/build-system.jam b/v2/build-system.jam
index 04e1cc978..cbe9e49dd 100755
--- a/v2/build-system.jam
+++ b/v2/build-system.jam
@@ -20,7 +20,7 @@ import feature ;
 import property-set ;
 import build-request ;
 import errors : error ;
-import class : new ;
+import class : xnew ;
 
 import builtin ;
 import make ;
@@ -143,7 +143,7 @@ virtual-targets = ;
 
 if $(expanded) 
 {        
-    local dr-adjuster = [ new directly-requested-properties-adjuster ] ;    
+    local dr-adjuster = [ xnew directly-requested-properties-adjuster ] ;    
     for local p in $(expanded)
     {
         $(dr-adjuster).add-requested-property-set $(p) ;
diff --git a/v2/build/build-request.jam b/v2/build/build-request.jam
index 8eb26c683..8c0cdc10e 100644
--- a/v2/build/build-request.jam
+++ b/v2/build/build-request.jam
@@ -249,11 +249,17 @@ local rule convert-command-line-element ( e )
 #
 # will cause a release version of 'b' to be compiled and linked into 'a'. The 
 # release version will be compiled without "define=MACROS".
-rule directly-requested-properties-adjuster
-{
+xclass directly-requested-properties-adjuster
+{    
     import property-set ;
-    self.empty-request-requirements = ;
-    self.all-requests = [ new property-map ] ;
+    import class : xnew ;
+    
+    rule __init__ ( )
+    {            
+        self.empty-request-requirements = ;
+        self.all-requests = [ xnew property-map ] ;
+    }        
+            
     rule add-requested-property-set ( property-set )
     {        
         local base = [ $(property-set).base ] ;
@@ -294,9 +300,6 @@ rule directly-requested-properties-adjuster
     }    
 }
 
-class directly-requested-properties-adjuster ;
-
-
 rule __test__ ( )
 {
     import assert feature ;
diff --git a/v2/build/generators.jam b/v2/build/generators.jam
index daad224a5..6d3ae035d 100644
--- a/v2/build/generators.jam
+++ b/v2/build/generators.jam
@@ -252,7 +252,7 @@ xclass generator
     # - value to <toolset> feature in properties
     rule clone ( new-id : new-toolset-name )
     {
-        return [ new $(__class__) $(new-id)
+        return [ xnew $(__class__) $(new-id)
                  : $(self.source-types)
                  : $(self.target-types-and-names) 
                  : [ property.change $(self.requirements) 
diff --git a/v2/build/project-roots.jam b/v2/build/project-roots.jam
index 2180404f3..6aa7379ed 100755
--- a/v2/build/project-roots.jam
+++ b/v2/build/project-roots.jam
@@ -43,7 +43,7 @@ rule load (
     {
         # Create the project-root, and remember it.
         #
-        local root = [ class.new project-root-object $(location) ] ;
+        local root = [ class.xnew project-root-object $(location) ] ;
         modules.poke $(module-name) : .project-root : $(root) ;
         .roots += $(root) ;
         
@@ -97,24 +97,30 @@ rule print ( )
 
 # Class encapsulating settings for a single project root.
 #
-rule project-root-object (
-    location # The root location.
-    )
+xclass project-root-object 
 {
     import path ;
-    import set ;
+    import set ;    
+    import sequence ;
+    import print ;
+    import project ;
+        
+    rule __init__ (
+      location # The root location.
+    )
+    {        
+        # The module name of the project-root.
+        self.module = project-root<$(location)> ;
     
-    # The module name of the project-root.
-    self.module = project-root<$(location)> ;
+        # The location of the project-root, as a path.
+        self.location = $(location) ;
     
-    # The location of the project-root, as a path.
-    self.location = $(location) ;
+        # The set of projects registered in this project-root.
+        self.projects = ;
     
-    # The set of projects registered in this project-root.
-    self.projects = ;
-    
-    # The set of interned constants for this project-root.
-    self.constants = ;
+        # The set of interned constants for this project-root.
+        self.constants = ;
+    }    
     
     # Accessor, the module of the project root.
     rule get-module ( )
@@ -213,33 +219,30 @@ rule project-root-object (
         }
     }
     
+    # Needed to get deterministic order of output, which makes testing simpler
+    local rule compare-projects ( p1 p2 )
+    {
+        local id1 = [ project.attribute $(p1) id ] ;
+        local id2 = [ project.attribute $(p2) id ] ;
+        if $(id1) < $(id2)
+        {
+            return true ;
+        }
+        else
+        {
+            if $(id1) = $(id2) && $(p1) < $(p2)
+            {
+                return true ;
+            }
+        }
+    }
+    
+    
     # Print out info about this project root. Calls print on the
     # individual projects in this project-root.
     #
     rule print ( )
-    {
-        import sequence ;
-        import print ;
-        import project ;
-    
-        # Needed to get deterministic order of output, which makes testing simpler
-        local rule compare-projects ( p1 p2 )
-        {
-            local id1 = [ project.attribute $(p1) id ] ;
-            local id2 = [ project.attribute $(p2) id ] ;
-            if $(id1) < $(id2)
-            {
-                return true ;
-            }
-            else
-            {
-                if $(id1) = $(id2) && $(p1) < $(p2)
-                {
-                    return true ;
-                }
-            }
-        }
-    
+    {        
         print.section "'"$(self.location)"'" Module for project-root is "'"$(self.module)"'" ;
         if $(self.constants)
         {
@@ -264,7 +267,6 @@ rule project-root-object (
         }
     }
 }
-class.class project-root-object ;
 
 # Rules callable by the user in the context of the project-root.jam of a project.
 #
diff --git a/v2/build/project.jam b/v2/build/project.jam
index 74af9a763..4fe4ba6d4 100644
--- a/v2/build/project.jam
+++ b/v2/build/project.jam
@@ -301,7 +301,7 @@ rule initialize (
     module $(module-name)
     {          
     }    
-    $(module-name).attributes = [ new project-attributes $(location) ] ;
+    $(module-name).attributes = [ xnew project-attributes $(location) ] ;
     local attributes = $($(module-name).attributes) ;
     
     $(attributes).set source-location : $(location) : exact ;    
@@ -381,20 +381,25 @@ rule register-id ( id : module )
 #
 # The standard attributes are "id", "location", "project-root", "parent"
 # "requirements", "default-build", "source-location" and "projects-to-build".
-rule project-attributes ( location )
+xclass project-attributes 
 {
     import property ;
     import property-set ;
     import errors ;
     import path ;
-    
-    self.location = $(location) ;
-
+    import print ;
+    import sequence ;
+        
+    rule __init__ ( location )
+    {       
+        self.location = $(location) ;
+    }
+            
     # Set the named attribute from the specification given by the user.
     # The value actually set may be different.
     rule set ( attribute : specification * 
-               : exact ? # Sets value from 'specification' without any processing
-               ) 
+        : exact ? # Sets value from 'specification' without any processing
+        ) 
     {
         if $(exact)
         {
@@ -487,9 +492,6 @@ rule project-attributes ( location )
     # Prints the project attributes.
     rule print ( )
     {
-        import sequence ;
-        import print ;
-
         local id = $(self.id) ; id ?= (none) ;
         local parent = $(self.parent) ; parent ?= (none) ;
         print.section "'"$(id)"'" ;
@@ -505,8 +507,6 @@ rule project-attributes ( location )
     
 }
 
-class project-attributes ;
-
 # Returns the project-attribute instance for the specified jamfile module.
 rule attributes ( project )
 {
diff --git a/v2/build/property-set.jam b/v2/build/property-set.jam
index 4f85c049b..91495a122 100644
--- a/v2/build/property-set.jam
+++ b/v2/build/property-set.jam
@@ -3,7 +3,7 @@
 #  all copies. This software is provided "as is" without express or implied
 #  warranty, and with no claim as to its suitability for any purpose.
 
-import class : class new ;
+import class : class xnew ;
 import feature ;
 import property ;
 import sequence ;
@@ -20,43 +20,47 @@ import sequence ;
 # - several operations, like and refine and as-path are provided. They all use
 #   caching whenever possible.
 #
-local rule property-set ( raw-properties * )
+xclass property-set 
 {
     import feature ;
     import property-set ;
     import property ;
-    
-    self.raw = $(raw-properties) ;
-    
-    for local p in $(raw-properties)
-    {
-        local att = [ feature.attributes $(p:G) ] ;        
-        if incidental in $(att)
-        {
-            self.incidental += $(p) ;
-        }
-        else if free in $(att)
-        {
-            if dependency in $(att)
-            {
-                self.dependency += $(p) ;
-            }
-            else
-            {
-                self.free += $(p) ;
-            }            
-        }
-        else 
-        {
-            self.base += $(p) ;
-        }
+            
+    rule __init__ ( raw-properties * )
+    {        
+        self.raw = $(raw-properties) ;
         
-        if propagated in $(att)
+        for local p in $(raw-properties)
         {
-            self.propagated += $(p) ;
-        }                        
+            local att = [ feature.attributes $(p:G) ] ;        
+            if incidental in $(att)
+            {
+                self.incidental += $(p) ;
+            }
+            else if free in $(att)
+            {
+                if dependency in $(att)
+                {
+                    self.dependency += $(p) ;
+                }
+                else
+                {
+                    self.free += $(p) ;
+                }            
+            }
+            else 
+            {
+                self.base += $(p) ;
+            }
+            
+            if propagated in $(att)
+            {
+                self.propagated += $(p) ;
+            }                        
+        }
     }
     
+    
     # Returns Jam list of stored properties
     rule raw ( )
     {
@@ -187,8 +191,6 @@ local rule property-set ( raw-properties * )
     
 }
 
-class property-set ;
-
 # Creates new 'property-set' instance for the given raw properties,
 # or returns an already existing ones.
 rule create ( raw-properties * )
@@ -200,7 +202,7 @@ rule create ( raw-properties * )
     
     if ! $(.ps.$(key)) 
     {
-        .ps.$(key) = [ new property-set $(raw-properties) ] ;
+        .ps.$(key) = [ xnew property-set $(raw-properties) ] ;
     }
     return $(.ps.$(key)) ;    
 }
diff --git a/v2/build/property.jam b/v2/build/property.jam
index 602218888..7c2f04869 100644
--- a/v2/build/property.jam
+++ b/v2/build/property.jam
@@ -386,14 +386,17 @@ rule translate-paths ( properties * : path )
 
 # Class which maintains a property set -> string
 # mapping
-rule property-map ( )
+xclass property-map
 {
     import numbers ;
     import sequence ;
     import errors : error ;
     
-    self.next-flag = 1 ;
-
+    rule __init__ ( )
+    {        
+        self.next-flag = 1 ;
+    }
+    
     # Associate 'value' with 'properties'
     rule insert ( properties + : value )
     {
@@ -445,9 +448,6 @@ rule property-map ( )
     }      
 }
 
-class property-map ;
-
-
 local rule __test__ ( )
 {
     import errors : try catch ;
@@ -472,7 +472,7 @@ local rule __test__ ( )
     compose <variant>release : <define>NDEBUG <optimization>on ;
 
     import assert ;
-    import class : new ;
+    import class : xnew ;
     
     validate gcc gcc-3.0.1 : $(test-space) ;
     validate <toolset>gcc  <toolset>gcc-3.0.1 : $(test-space) ;
@@ -559,7 +559,7 @@ local rule __test__ ( )
     assert.result <toolset>kylix <include>a 
         : change <toolset>gcc <include>a : toolset kylix ;
 
-    pm = [ new property-map ] ;
+    pm = [ xnew property-map ] ;
     $(pm).insert <toolset>gcc : o ;
     $(pm).insert <toolset>gcc <os>NT : obj ;
     $(pm).insert <toolset>gcc <os>CYGWIN : obj ;
diff --git a/v2/build/scanner.jam b/v2/build/scanner.jam
index ea04c17d7..6f8cc006b 100644
--- a/v2/build/scanner.jam
+++ b/v2/build/scanner.jam
@@ -26,12 +26,16 @@
 #  actual targets. However, actions can also create scanners in a special
 #  way, instead of relying on just target type.
 
-import class : class new ;
+import class : class xnew ;
 import property virtual-target ;
 
 #  Base scanner class. 
-rule scanner ( )
+xclass scanner 
 {
+    rule __init__ ( )
+    {
+    }
+    
     # Returns a pattern to use for scanning
     rule pattern ( )
     {
@@ -47,8 +51,6 @@ rule scanner ( )
     }        
 }
 
-class scanner ;
-
 # Registers a new generator class, specifying a set of 
 # properties relevant to this scanner.  Ctor for that class
 # should have one parameter: list of properties.
@@ -74,7 +76,7 @@ rule get ( scanner-class : properties * )
     }    
     if ! $(scanner.$(scanner-class).$(r:J=-))
     {
-        scanner.$(scanner-class).$(r:J=-) = [ new $(scanner-class) $(r) ] ;
+        scanner.$(scanner-class).$(r:J=-) = [ xnew $(scanner-class) $(r) ] ;
     }
     return $(scanner.$(scanner-class).$(r:J=-)) ;    
 }
diff --git a/v2/build/targets.jam b/v2/build/targets.jam
index c591d695d..b083d41f0 100644
--- a/v2/build/targets.jam
+++ b/v2/build/targets.jam
@@ -983,7 +983,7 @@ xclass basic-target : abstract-target
         # is created.
         local all-targets = 
           [ sequence.transform virtual-target.traverse : $(targets) ] ; 
-        local dg = [ new subvariant-dg $(__name__) : $(build-request) 
+        local dg = [ xnew subvariant-dg $(__name__) : $(build-request) 
           : $(rproperties) : $(all-targets) ] ;
         for local v in $(all-targets)          
         {
diff --git a/v2/build/type.jam b/v2/build/type.jam
index 1c54cc665..721cef837 100644
--- a/v2/build/type.jam
+++ b/v2/build/type.jam
@@ -28,7 +28,7 @@ feature.feature base-target-type : : composite optional free ;
 # feature.feature main-target-type : : composite optional incidental ;
 
 # Store suffixes for generated targets
-.suffixes = [ new property-map ] ;
+.suffixes = [ xnew property-map ] ;
 
 # Registers a target type, possible derived from a 'base-type'. 
 # If 'suffixes' are provided, they given all the suffixes that mean a file is of 'type'.
diff --git a/v2/build/virtual-target.jam b/v2/build/virtual-target.jam
index fe54c9b32..3085b5f8d 100644
--- a/v2/build/virtual-target.jam
+++ b/v2/build/virtual-target.jam
@@ -921,42 +921,46 @@ local rule clone-action-template ( action from cloned-from : new-source )
     return $(cloned) ;
 }
 
-local rule subvariant-dg ( main-target # The instance of main-target class
-    : property-set                     # Properties requested for this target
-    : actual-properties                # Actual used properties
-    : virtual-targets * )
+xclass subvariant-dg 
 {
-    import sequence ;
+    import sequence ;    
     
-    self.main-target = $(main-target) ;
-    self.properties = $(property-set) ;
-    self.actual-properties = $(actual-properties) ;
-    self.virtual-targets = $(virtual-targets) ;
+    rule __init__ ( main-target # The instance of main-target class
+        : property-set                     # Properties requested for this target
+        : actual-properties                # Actual used properties
+        : virtual-targets * )
+    {        
+        self.main-target = $(main-target) ;
+        self.properties = $(property-set) ;
+        self.actual-properties = $(actual-properties) ;
+        self.virtual-targets = $(virtual-targets) ;
 
-    # Pre-compose the list of other dependency graphs, on which this one
-    # depends
-    local deps = [ $(actual-properties).dependency ] ;
-    for local d in $(deps)
-    {
-        self.other-dg += [ $(d:G=).dg ] ;
-    }
-    
-    for local t in $(virtual-targets)
-    {
-        local a = [ $(t).action ] ;
-        if $(a)
+        # Pre-compose the list of other dependency graphs, on which this one
+        # depends
+        local deps = [ $(actual-properties).dependency ] ;
+        for local d in $(deps)
         {
-            for local s in [ $(a).sources ]
+            self.other-dg += [ $(d:G=).dg ] ;
+        }
+        
+        for local t in $(virtual-targets)
+        {
+            local a = [ $(t).action ] ;
+            if $(a)
             {
-                if [ $(s).root ]
+                for local s in [ $(a).sources ]
                 {
-                    self.other-dg += [ $(s).dg ] ;
+                    if [ $(s).root ]
+                    {
+                        self.other-dg += [ $(s).dg ] ;
+                    }
                 }
             }
         }
-    }
         
-    self.other-dg = [ sequence.unique $(self.other-dg) ] ;
+        self.other-dg = [ sequence.unique $(self.other-dg) ] ;
+    }
+    
                
     rule main-target ( )
     {
@@ -992,5 +996,3 @@ local rule subvariant-dg ( main-target # The instance of main-target class
     }   
 }
 
-class subvariant-dg ;
-
diff --git a/v2/project-root.jam b/v2/project-root.jam
index 026dd632b..dfbaa290c 100644
--- a/v2/project-root.jam
+++ b/v2/project-root.jam
@@ -88,25 +88,29 @@ rule print ( )
 
 # Class encapsulating settings for a single project root.
 #
-rule project-root-object (
-    location # The root location.
-    )
+xclass project-root-object 
 {
     import path ;
-    import set ;
+    import set ;    
+    import sequence : insertion-sort ;
     
-    # The module name of the project-root.
-    self.module = project-root<$(location)> ;
+    rule __init__ (
+      location # The root location.
+    )
+    {        
+        # The module name of the project-root.
+        self.module = project-root<$(location)> ;
     
-    # The location of the project-root, as a path.
-    self.location = $(location) ;
+        # The location of the project-root, as a path.
+        self.location = $(location) ;
     
-    # The set of projects registered in this project-root.
-    self.projects = ;
-    
-    # The set of interned constants for this project-root.
-    self.constants = ;
+        # The set of projects registered in this project-root.
+        self.projects = ;
     
+        # The set of interned constants for this project-root.
+        self.constants = ;
+    }
+        
     # Accessor, the module of the project root.
     rule get-module ( )
     {
@@ -204,6 +208,24 @@ rule project-root-object (
         }
     }
     
+    # Needed to get deterministic order of output, which makes testing simpler
+    rule compare-projects ( p1 p2 )
+    {
+        local id1 = [ project.attribute $(p1) id ] ;
+        local id2 = [ project.attribute $(p2) id ] ;
+        if $(id1) < $(id2)
+        {
+            return true ;
+        }
+        else
+        {
+            if $(id1) = $(id2) && $(p1) < $(p2)
+            {
+                return true ;
+            }
+        }
+    }
+        
     # Print out info about this project root. Calls print on the
     # individual projects in this project-root.
     #
@@ -213,23 +235,6 @@ rule project-root-object (
         import print ;
         import project ;
     
-        # Needed to get deterministic order of output, which makes testing simpler
-        local rule compare-projects ( p1 p2 )
-        {
-            local id1 = [ project.attribute $(p1) id ] ;
-            local id2 = [ project.attribute $(p2) id ] ;
-            if $(id1) < $(id2)
-            {
-                return true ;
-            }
-            else
-            {
-                if $(id1) = $(id2) && $(p1) < $(p2)
-                {
-                    return true ;
-                }
-            }
-        }
     
         print.section "'"$(self.location)"'" Module for project-root is "'"$(self.module)"'" ;
         if $(self.constants)
@@ -246,7 +251,7 @@ rule project-root-object (
         if $(self.projects)
         {
             print.section Projects ;
-            local projects = [ sequence.insertion-sort $(self.projects) : compare-projects ] ;
+            local projects = [ insertion-sort $(self.projects) : compare-projects ] ;
             for local p in $(projects)
             {
                 local attributes = [ project.attributes $(p) ] ;
@@ -255,7 +260,6 @@ rule project-root-object (
         }
     }
 }
-class.class project-root-object ;
 
 # Rules callable by the user in the context of the project-root.jam of a project.
 #
diff --git a/v2/tools/boostbook.jam b/v2/tools/boostbook.jam
index 430d26192..4417e11d3 100644
--- a/v2/tools/boostbook.jam
+++ b/v2/tools/boostbook.jam
@@ -165,13 +165,16 @@ rule docbook-to-fo ( target : source : properties * )
   xslt $(target) : $(source) $(stylesheet) : $(properties) ;
 }
 
-rule xml-catalog-action ( target : property-set ? : catalog-entries * )
+xclass xml-catalog-action : action
 {
-  import boostbook ;
-  import print ;
-
-  action.__init__ $(target) : : generate-xml-catalog : $(property-set) ;
+    import boostbook ;
+    import print ;
 
+    rule __init__ ( target : property-set ? : catalog-entries * )
+    {
+        action.__init__ $(target) : : generate-xml-catalog : $(property-set) ;
+    }
+    
   rule actualize ( )
   {
     if ! $(self.actualized)
@@ -230,24 +233,26 @@ rule xml-catalog-action ( target : property-set ? : catalog-entries * )
   }
 }
 
-class xml-catalog-action : action ;
-
-rule boostbook-target-class ( name : project : sources * : requirements * 
-                              : default-build * : catalog-entries * )
+xclass boostbook-target-class : basic-target
 {
-  import feature ;
-  import virtual-target ;
-  import generators ;
-
-  basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
-                         : $(default-build) ;
-  self.catalog-entries = $(catalog-entries) ;
+    import feature ;
+    import virtual-target ;
+    import generators ;
+        
+    rule __init__ ( name : project : sources * : requirements * 
+                              : default-build * : catalog-entries * )
+    {
 
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
+          : $(default-build) ;
+        self.catalog-entries = $(catalog-entries) ;
+    }
+    
   rule construct ( source-targets * : property-set )
   {
     local path = [ project.attribute $(self.project) location ] ;
-    local catalog = [ new file-target catalog : XML : $(self.project) ] ;
-    $(catalog).action [ new xml-catalog-action $(catalog) : $(property-set) 
+    local catalog = [ xnew file-target catalog : XML : $(self.project) ] ;
+    $(catalog).action [ xnew xml-catalog-action $(catalog) : $(property-set) 
                                                : $(self.catalog-entries) ] ;
 
     $(catalog).set-path $(path) ;
@@ -313,14 +318,12 @@ rule boostbook-target-class ( name : project : sources * : requirements *
   }
 }
 
-class boostbook-target-class : basic-target ;
-
 rule boostbook ( target-name : sources * : requirements * : default-build * )
 { 
   local project = [ CALLER_MODULE ] ;
  
   targets.main-target-alternative 
-    [ new boostbook-target-class $(target-name) : $(project) 
+    [ xnew boostbook-target-class $(target-name) : $(project) 
         : [ targets.main-target-sources $(sources) : $(target-name) ] 
         : [ targets.main-target-requirements $(requirements) : $(project) ]
         : [ targets.main-target-default-build $(default-build) : $(project) ] 
diff --git a/v2/tools/builtin.jam b/v2/tools/builtin.jam
index d0884d215..363237b6c 100644
--- a/v2/tools/builtin.jam
+++ b/v2/tools/builtin.jam
@@ -317,12 +317,16 @@ actions quietly piecemeal response-file-2
 }
 #####
 
-rule c-scanner ( includes * )
+xclass c-scanner : scanner 
 {
-    scanner.__init__ ;
+    import regex virtual-target path scanner ;    
     
-    import regex virtual-target path scanner ;
-    self.includes = $(includes) ;
+    rule __init__ ( includes * )
+    {
+        scanner.__init__ ;
+    
+        self.includes = $(includes) ;
+    }    
 
     rule pattern ( )
     {
@@ -370,7 +374,6 @@ rule c-scanner ( includes * )
     }        
 }
 
-class c-scanner : scanner ;
 scanner.register c-scanner : include ;
 
 type.set-scanner CPP : c-scanner ;
@@ -484,7 +487,6 @@ xclass searched-lib-generator : generator
 
 generators.register [ xnew searched-lib-generator ] ;
 
-
 xclass compile-action : action 
 {
     import sequence ;
diff --git a/v2/tools/doxygen.jam b/v2/tools/doxygen.jam
index 5c22d579b..d16ffc2b9 100644
--- a/v2/tools/doxygen.jam
+++ b/v2/tools/doxygen.jam
@@ -9,7 +9,7 @@
 #  version of Doxygen that can output a single XML file instead of a
 #  set of XML files.
 
-import class : class new ;
+import class : xnew ;
 import targets ;
 import feature ;
 import property ;
@@ -90,17 +90,21 @@ rule xml-to-boostbook ( target : source : properties * )
                  ;
 }
 
-rule doxygen-xml-target-class ( name : project : sources * : requirements *
-                                : default-build * )
+xclass doxygen-xml-target-class : basic-target
 {
-  basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
-                        : $(default-build) ;
+    rule __init__ ( name : project : sources * : requirements *
+        : default-build * )
+    {
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements)
+          : $(default-build) ;
+    }
+    
   
   rule construct ( source-targets * : property-set )
   {
     local target = 
-       [ new file-target $(self.name) : DOXYGEN_XML : $(self.project) ] ;
-    local a = [ new action $(target) : $(source-targets) : doxygen.extract-xml 
+       [ xnew file-target $(self.name) : DOXYGEN_XML : $(self.project) ] ;
+    local a = [ xnew action $(target) : $(source-targets) : doxygen.extract-xml 
                 : $(property-set) ] ;
     $(target).action $(a) ;
 
@@ -108,13 +112,11 @@ rule doxygen-xml-target-class ( name : project : sources * : requirements *
   }
 }
 
-class doxygen-xml-target-class : basic-target ;
-
 rule doxygen ( target-name : sources * : requirements * : default-build * )
 {
   local project = [ CALLER_MODULE ] ;
   targets.main-target-alternative
-    [ new doxygen-xml-target-class $(target-name) : $(project) : $(sources)
+    [ xnew doxygen-xml-target-class $(target-name) : $(project) : $(sources)
         : [ targets.main-target-requirements $(requirements) : $(project) ]
         : [ targets.main-target-default-build $(default-build) : $(project) ]
     ] ;
diff --git a/v2/tools/gettext.jam b/v2/tools/gettext.jam
index f730ba555..3a13555b4 100644
--- a/v2/tools/gettext.jam
+++ b/v2/tools/gettext.jam
@@ -47,7 +47,7 @@
 import targets ;
 import property-set ;
 import virtual-target ;
-import class : class new ;
+import class : class xnew ;
 import project ;
 import type ;
 import generators ;
@@ -89,7 +89,7 @@ rule update ( name : existing-translation sources + : requirements * )
     local project = [ CALLER_MODULE ] ;
     
     targets.main-target-alternative
-      [ new update-translations-class $(name) : $(project) : 
+      [ xnew update-translations-class $(name) : $(project) : 
         $(existing-translation) $(sources)
         : [ targets.main-target-requirements $(requirements) : $(project) ]        
       ] ;
@@ -115,13 +115,16 @@ feature gettext.types : : free ;
 
 generators.register-standard gettext.compile : gettext.PO : gettext.catalog ;
 
-rule update-translations-class ( name : project : sources * : requirements )
+xclass update-translations-class : basic-target
 {
-    basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements) 
-                              : $(default-build) ;
-    
-    IMPORT gettext : regex.split : $(__name__) : regex.split ;
-
+    import regex : split ;
+   
+    rule __init__ ( name : project : sources * : requirements )
+    {
+        basic-target.__init__ $(name) : $(project) : $(sources) : $(requirements) 
+          : $(default-build) ;
+    }
+            
     rule construct ( source-targets * : property-set )
     {
         local types = [ $(property-set).get <gettext.types> ] ;
@@ -149,13 +152,13 @@ rule update-translations-class ( name : project : sources * : requirements )
             
             if $(right-sources)
             {                                                                                        
-                local new-messages = [ new file-target $(self.name) : gettext.POT : $(self.project) ] ;
+                local new-messages = [ xnew file-target $(self.name) : gettext.POT : $(self.project) ] ;
                 local extract = 
-                  [ new action $(new-messages) : $(right-sources) : gettext.extract ] ;
+                  [ xnew action $(new-messages) : $(right-sources) : gettext.extract ] ;
                 $(new-messages).action $(extract) ;
                 
-                local r = [ new notfile-target $(self.name) : $(self.project) ] ;
-                local a = [ new action $(r) : $(source-targets[1]) $(new-messages) 
+                local r = [ xnew notfile-target $(self.name) : $(self.project) ] ;
+                local a = [ xnew action $(r) : $(source-targets[1]) $(new-messages) 
                   : gettext.update-po-dispatch ] ;
                 $(r).action $(a) ;
                 .constructed = [ virtual-target.register $(r) ] ;
@@ -172,7 +175,6 @@ rule update-translations-class ( name : project : sources * : requirements )
     {        
     }
 }
-class update-translations-class : basic-target ;
 
 flags gettext.extract KEYWORD <gettext.keyword> ;
 actions extract
diff --git a/v2/tools/testing.jam b/v2/tools/testing.jam
index fcb83e4db..b72ecdd2b 100644
--- a/v2/tools/testing.jam
+++ b/v2/tools/testing.jam
@@ -15,8 +15,8 @@ import toolset ;
 # lanch test programs. 
 feature.feature testing.launcher : : optional free ;
 
-xclass unit-test-target-class : basic-target
-{
+xclass unit-test-target-class : typed-target
+{    
     rule __init__ ( name : project : sources * : requirements * 
                          : default-build * )
     {
@@ -40,8 +40,6 @@ xclass unit-test-target-class : basic-target
     }   
 }
 
-class unit-test-target-class : typed-target ;
-
 toolset.flags testing.run LAUNCHER <testing.launcher> ;
 
 
diff --git a/v2/util/utility.jam b/v2/util/utility.jam
index 0fd45e847..f50abecf5 100644
--- a/v2/util/utility.jam
+++ b/v2/util/utility.jam
@@ -99,13 +99,17 @@ rule apply-default-suffix ( suffix : list * )
 local rule __test__ ( )
 {
     import assert ;
-    import class : class new ;
+    import class : xnew ;
     assert.result foo bar : ungrist <foo> <bar> ;
 
     assert.result 123 : str 123 ;
 
-    local rule test-class__ ( )
+    xclass test-class__ 
     {
+        rule __init__ ( )
+        {            
+        }
+        
         rule str ( )
         {
             return "str-test-class" ;
@@ -121,15 +125,14 @@ local rule __test__ ( )
             return "not sure" ;
         }
     }
-    class test-class__ ;
 
-    assert.result "str-test-class" : str [ new test-class__ ] ;
+    assert.result "str-test-class" : str [ xnew test-class__ ] ;
     assert.true less 1 2 ;
     assert.false less 2 1 ;
-    assert.result "yes, of course!" : less [ new test-class__ ] 1 ;
+    assert.result "yes, of course!" : less [ xnew test-class__ ] 1 ;
     assert.true equal 1 1 ;
     assert.false equal 1 2 ;
-    assert.result "not sure" : equal [ new test-class__ ] 1 ;
+    assert.result "not sure" : equal [ xnew test-class__ ] 1 ;
     
     assert.result foo.lib foo.a : apply-default-suffix .lib : foo foo.a ;
 }