diff --git a/runtime/syntax/eruby.vim b/runtime/syntax/eruby.vim
index 3aedc6c..f85e009 100644
--- a/runtime/syntax/eruby.vim
+++ b/runtime/syntax/eruby.vim
@@ -1,16 +1,12 @@
 " Vim syntax file
 " Language:		eRuby
-" Maintainer:		Doug Kearns <dougkearns@gmail.com>
+" Maintainer:		Tim Pope <vimNOSPAM@tpope.info>
 " Info:			$Id$
 " URL:			http://vim-ruby.rubyforge.org
 " Anon CVS:		See above site
 " Release Coordinator:	Doug Kearns <dougkearns@gmail.com>
 
-" For version 5.x: Clear all syntax items
-" For version 6.x: Quit when a syntax file was already loaded
-if version < 600
-  syntax clear
-elseif exists("b:current_syntax")
+if exists("b:current_syntax")
   finish
 endif
 
@@ -18,21 +14,51 @@
   let main_syntax = 'eruby'
 endif
 
-if version < 600
-  so <sfile>:p:h/html.vim
-  syn include @rubyTop <sfile>:p:h/ruby.vim
-else
-  runtime! syntax/html.vim
-  unlet b:current_syntax
-  syn include @rubyTop syntax/ruby.vim
+if !exists("g:eruby_default_subtype")
+  let g:eruby_default_subtype = "html"
 endif
 
+if !exists("b:eruby_subtype") && main_syntax == 'eruby'
+  let s:lines = getline(1)."\n".getline(2)."\n".getline(3)."\n".getline(4)."\n".getline(5)."\n".getline("$")
+  let b:eruby_subtype = matchstr(s:lines,'eruby_subtype=\zs\w\+')
+  if b:eruby_subtype == ''
+    let b:eruby_subtype = matchstr(substitute(expand("%:t"),'\c\%(\.erb\)\+$','',''),'\.\zs\w\+$')
+  endif
+  if b:eruby_subtype == 'rhtml'
+    let b:eruby_subtype = 'html'
+  elseif b:eruby_subtype == 'rb'
+    let b:eruby_subtype = 'ruby'
+  elseif b:eruby_subtype == 'yml'
+    let b:eruby_subtype = 'yaml'
+  elseif b:eruby_subtype == 'js'
+    let b:eruby_subtype = 'javascript'
+  elseif b:eruby_subtype == 'txt'
+    " Conventional; not a real file type
+    let b:eruby_subtype = 'text'
+  elseif b:eruby_subtype == ''
+    let b:eruby_subtype = g:eruby_default_subtype
+  endif
+endif
+
+if !exists("b:eruby_nest_level")
+  let b:eruby_nest_level = strlen(substitute(substitute(substitute(expand("%:t"),'@','','g'),'\c\.\%(erb\|rhtml\)\>','@','g'),'[^@]','','g'))
+endif
+if !b:eruby_nest_level
+  let b:eruby_nest_level = 1
+endif
+
+if exists("b:eruby_subtype") && b:eruby_subtype != ''
+  exe "runtime! syntax/".b:eruby_subtype.".vim"
+  unlet! b:current_syntax
+endif
+syn include @rubyTop syntax/ruby.vim
+
 syn cluster erubyRegions contains=erubyOneLiner,erubyBlock,erubyExpression,erubyComment
 
-syn region  erubyOneLiner   matchgroup=erubyDelimiter start="^%%\@!"    end="$"     contains=@rubyTop	     containedin=ALLBUT,@erubyRegions keepend oneline
-syn region  erubyBlock	    matchgroup=erubyDelimiter start="<%%\@!-\=" end="-\=%>" contains=@rubyTop	     containedin=ALLBUT,@erubyRegions
-syn region  erubyExpression matchgroup=erubyDelimiter start="<%="       end="-\=%>" contains=@rubyTop	     containedin=ALLBUT,@erubyRegions
-syn region  erubyComment    matchgroup=erubyDelimiter start="<%#"       end="-\=%>" contains=rubyTodo,@Spell containedin=ALLBUT,@erubyRegions keepend
+exe 'syn region  erubyOneLiner   matchgroup=erubyDelimiter start="^%\{1,'.b:eruby_nest_level.'\}%\@!"    end="$"     contains=@rubyTop	     containedin=ALLBUT,@erbRegions keepend oneline'
+exe 'syn region  erubyBlock      matchgroup=erubyDelimiter start="<%\{1,'.b:eruby_nest_level.'\}%\@!-\=" end="-\=%>" contains=@rubyTop	     containedin=ALLBUT,@erbRegions'
+exe 'syn region  erubyExpression matchgroup=erubyDelimiter start="<%\{1,'.b:eruby_nest_level.'\}="       end="-\=%>" contains=@rubyTop	     containedin=ALLBUT,@erbRegions'
+exe 'syn region  erubyComment    matchgroup=erubyDelimiter start="<%\{1,'.b:eruby_nest_level.'\}#"       end="-\=%>" contains=rubyTodo,@Spell containedin=ALLBUT,@erbRegions keepend'
 
 " Define the default highlighting.
 " For version 5.7 and earlier: only when not done already
@@ -50,7 +76,7 @@
 
   delcommand HiLink
 endif
-let b:current_syntax = "eruby"
+let b:current_syntax = 'eruby'
 
 if main_syntax == 'eruby'
   unlet main_syntax