diff --git a/hacking/test-module b/hacking/test-module
index 971b56a11c..ce31b3bffc 100755
--- a/hacking/test-module
+++ b/hacking/test-module
@@ -30,7 +30,7 @@ import sys
 import os
 import subprocess
 import traceback
-import ansible.utils
+from ansible import utils
 
 try:
     import json
@@ -70,7 +70,7 @@ try:
     print "***********************************"
     print "RAW OUTPUT"
     print out
-    results = ansible.utils.parse_json(out)
+    results = utils.parse_json(out)
     
 except:
     print "***********************************"
@@ -82,7 +82,7 @@ except:
 print "***********************************"
 print "PARSED OUTPUT"
 
-print results
+print utils.bigjson(results)
 
 sys.exit(0)
 
diff --git a/lib/ansible/playbook.py b/lib/ansible/playbook.py
index 1b8e557791..ed9452ecd6 100755
--- a/lib/ansible/playbook.py
+++ b/lib/ansible/playbook.py
@@ -207,10 +207,10 @@ class PlayBook(object):
                         if action is None:
                             raise errors.AnsibleError('action is required')
                         produced_task = task.copy()
-                        produced_task['action'] = utils.template(action, dict(item=item))
-                        produced_task['name'] = utils.template(name, dict(item=item))
+                        produced_task['action'] = utils.template(action, dict(item=item), SETUP_CACHE)
+                        produced_task['name'] = utils.template(name, dict(item=item), SETUP_CACHE)
                         if only_if:
-                            produced_task['only_if'] = utils.template(only_if, dict(item=item))
+                            produced_task['only_if'] = utils.template(only_if, dict(item=item), SETUP_CACHE)
                         new_tasks2.append(produced_task)
                 else:
                     new_tasks2.append(task)
@@ -465,7 +465,7 @@ class PlayBook(object):
                     found = False
                     sequence = []
                     for real_filename in filename:
-                        filename2 = utils.path_dwim(self.basedir, utils.template(real_filename, cache_vars))
+                        filename2 = utils.path_dwim(self.basedir, utils.template(real_filename, cache_vars, SETUP_CACHE))
                         sequence.append(filename2)
                         if os.path.exists(filename2):
                             found = True
@@ -481,7 +481,7 @@ class PlayBook(object):
                         )
 
                 else:
-                    filename2 = utils.path_dwim(self.basedir, utils.template(filename, cache_vars))
+                    filename2 = utils.path_dwim(self.basedir, utils.template(filename, cache_vars, SETUP_CACHE))
                     if not os.path.exists(filename2):
                         raise errors.AnsibleError("no file matched for vars_file import: %s" % filename2)
                     data = utils.parse_yaml_from_file(filename2)
diff --git a/lib/ansible/runner.py b/lib/ansible/runner.py
index c305126b34..c7ef3663bf 100755
--- a/lib/ansible/runner.py
+++ b/lib/ansible/runner.py
@@ -268,7 +268,7 @@ class Runner(object):
         ''' runs a module that has already been transferred '''
 
         inject = self.setup_cache.get(conn.host,{})
-        conditional = utils.double_template(self.conditional, inject)
+        conditional = utils.double_template(self.conditional, inject, self.setup_cache)
         if not eval(conditional):
             return [ utils.smjson(dict(skipped=True)), None, 'skipped' ]
 
@@ -281,7 +281,7 @@ class Runner(object):
 
         if type(args) == dict:
             args = utils.bigjson(args)
-        args = utils.template(args, inject)
+        args = utils.template(args, inject, self.setup_cache)
 
         module_name_tail = remote_module_path.split("/")[-1]
 
@@ -369,7 +369,7 @@ class Runner(object):
 
         # apply templating to source argument
         inject = self.setup_cache.get(conn.host,{})
-        source = utils.template(source, inject)
+        source = utils.template(source, inject, self.setup_cache)
 
         # transfer the file to a remote tmp location
         tmp_src = tmp + source.split('/')[-1]
@@ -456,7 +456,7 @@ class Runner(object):
 
         # apply templating to source argument so vars can be used in the path
         inject = self.setup_cache.get(conn.host,{})
-        source = utils.template(source, inject)
+        source = utils.template(source, inject, self.setup_cache)
 
         (host, ok, data, err) = (None, None, None, None)
 
@@ -491,7 +491,7 @@ class Runner(object):
         source_data = file(utils.path_dwim(self.basedir, source)).read()
         resultant = ''            
         try:
-            resultant = utils.template(source_data, inject)
+            resultant = utils.template(source_data, inject, self.setup_cache)
         except Exception, e:
             return (host, False, dict(failed=True, msg=str(e)), '')
         xfered = self._transfer_str(conn, tmp, 'source', resultant)
@@ -537,7 +537,7 @@ class Runner(object):
             return [ host, False, "FAILED: %s" % str(e), None ]
 
         cache = self.setup_cache.get(host, {})
-        module_name = utils.template(self.module_name, cache)
+        module_name = utils.template(self.module_name, cache, self.setup_cache)
 
         tmp = self._get_tmp_path(conn)
         result = None
diff --git a/lib/ansible/utils.py b/lib/ansible/utils.py
index d1bb9490e6..ac4228f2c1 100755
--- a/lib/ansible/utils.py
+++ b/lib/ansible/utils.py
@@ -33,7 +33,6 @@ except ImportError:
 from ansible import errors
 import ansible.constants as C
 
-
 ###############################################################
 # UTILITY FUNCTIONS FOR COMMAND LINE TOOLS
 ###############################################################
@@ -239,14 +238,16 @@ def varReplace(raw, vars):
 
     return ''.join(done)
 
-def template(text, vars):
+def template(text, vars, setup_cache):
     ''' run a text buffer through the templating engine '''
+    vars = vars.copy()
     text = varReplace(str(text), vars)
+    vars['hostvars'] = setup_cache
     template = jinja2.Template(text)
     return template.render(vars)
 
-def double_template(text, vars):
-    return template(template(text, vars), vars)
+def double_template(text, vars, setup_cache):
+    return template(template(text, vars, setup_cache), vars, setup_cache)
 
 def template_from_file(path, vars):
     ''' run a file through the templating engine '''