diff --git a/examples/camera3.php b/examples/camera3.php
index 5fddaf7e..8ae529a2 100644
--- a/examples/camera3.php
+++ b/examples/camera3.php
@@ -14,37 +14,55 @@
 
 	var game = new Phaser.Game(800, 600, Phaser.CANVAS, '', { preload: preload, create: create, update: update, render: render });
 
+	var s;
+	var s2;
+
 	function preload() {
-		game.load.image('mushroom', 'assets/sprites/mana_card.png');
+		game.load.image('card', 'assets/sprites/mana_card.png');
+		game.load.image('mushroom', 'assets/sprites/mushroom2.png');
 	}
 
 	function create() {
 
-		s = game.add.sprite(game.world.centerX, game.world.centerY, 'mushroom');
+		s = game.add.sprite(game.world.centerX, game.world.centerY, 'card');
+		s2 = game.add.sprite(100, 100, 'mushroom');
+		s2.name = 'm';
+
+		s.addChild(s2);
 
 		s.anchor.setTo(0.5, 0.5);
+		s2.anchor.setTo(0.5, 0.5);
 
 	}
 
 	function update() {
 
 		s.angle += 0.5;
+		// s2.angle += 1;
 
 		if (s.scale.x > -2)
 		{
-			s.scale.x -= 0.01;
-			s.scale.y -= 0.01;
+			// s.scale.x -= 0.01;
+			// s.scale.y -= 0.01;
 		}
 
 	}
 
 	function render() {
 
+		game.debug.renderSpriteInfo(s, 32, 32);
+		game.debug.renderSpriteInfo(s2, 32, 320);
+
 		game.debug.renderPoint(s.topLeft, 'rgb(255,0,0)');
 		game.debug.renderPoint(s.topRight, 'rgb(0,255,0)');
 		game.debug.renderPoint(s.bottomLeft, 'rgb(0,0,255)');
 		game.debug.renderPoint(s.bottomRight, 'rgb(255,0,255)');
 
+		game.debug.renderPoint(s2.topLeft, 'rgb(255,0,0)');
+		game.debug.renderPoint(s2.topRight, 'rgb(0,255,0)');
+		game.debug.renderPoint(s2.bottomLeft, 'rgb(0,0,255)');
+		game.debug.renderPoint(s2.bottomRight, 'rgb(255,0,255)');
+
 	}
 
 })();
diff --git a/src/core/World.js b/src/core/World.js
index 98d490c5..e0b170a4 100644
--- a/src/core/World.js
+++ b/src/core/World.js
@@ -51,10 +51,29 @@ Phaser.World.prototype = {
 
 		this.camera.update();
 
-		for (var child in this._container.children)
+		var displayObject = this._stage;
+
+		// once the display object hits this. we can break the loop	
+		var testObject = displayObject.last._iNext;
+		displayObject = displayObject.first;
+		
+		do	
 		{
-			this._container.children[child].update();
+			if (!displayObject.visible)
+			{
+				displayObject = displayObject.last._iNext;
+				continue;
+			}
+
+			if (displayObject['update'])
+			{
+				displayObject.update();
+			}
+			
+			//	count++
+			displayObject = displayObject._iNext;
 		}
+		while(displayObject != testObject)
 
 	},
 
diff --git a/src/gameobjects/Sprite.js b/src/gameobjects/Sprite.js
index 079b0f34..1bf11102 100644
--- a/src/gameobjects/Sprite.js
+++ b/src/gameobjects/Sprite.js
@@ -140,32 +140,13 @@ Phaser.Sprite.prototype.update = function() {
     this.position.x = this._x - (this.game.world.camera.x * this.scrollFactor.x);
     this.position.y = this._y - (this.game.world.camera.y * this.scrollFactor.y);
 
-    //  Update the edge points (sx, sy)
-    this.offset.setTo(this.x - (this.anchor.x * this.width), this.y - (this.anchor.y * this.height));
+    //  Update the edge points
+    this.offset.setTo(this._x - (this.anchor.x * this.width), this._y - (this.anchor.y * this.height));
 
-    // var sx = s.x - offsetX;
-    // var sy = s.y - offsetY;
-
-    //  top left
     this.getLocalPosition(this.topLeft, this.offset.x, this.offset.y);
-    // var p1 = getLocalPosition(sx, sy, s);
-
-    //  top right
     this.getLocalPosition(this.topRight, this.offset.x + this.width, this.offset.y);
-    // var p2 = getLocalPosition(sx + s.width, sy, s);
-
-    //  bottom left
     this.getLocalPosition(this.bottomLeft, this.offset.x, this.offset.y + this.height);
-    // var p3 = getLocalPosition(sx, sy + s.height, s);
-
-    //  bottom right
     this.getLocalPosition(this.bottomRight, this.offset.x + this.width, this.offset.y + this.height);
-    // var p4 = getLocalPosition(sx + s.width, sy + s.height, s);
-
-    // p1.add(s.x, s.y);
-    // p2.add(s.x, s.y);
-    // p3.add(s.x, s.y);
-    // p4.add(s.x, s.y);
 
     // this.checkBounds();
 
@@ -185,9 +166,8 @@ Phaser.Sprite.prototype.getLocalPosition = function(p, x, y) {
 
     this._id = 1 / (this._a00 * this._a11 + this._a01 * -this._a10);
 
-    p.x = (this._a11 * this._id * x + -this._a01 * this._id * y + (this._a12 * this._a01 - this._a02 * this._a11) * this._id) * this.scale.x;
-    p.y = (this._a00 * this._id * y + -this._a10 * this._id * x + (-this._a12 * this._a00 + this._a02 * this._a10) * this._id) * this.scale.y;
-    p.add(this.x, this.y);
+    p.x = ((this._a11 * this._id * x + -this._a01 * this._id * y + (this._a12 * this._a01 - this._a02 * this._a11) * this._id) * this.scale.x) + this.x;
+    p.y = ((this._a00 * this._id * y + -this._a10 * this._id * x + (-this._a12 * this._a00 + this._a02 * this._a10) * this._id) * this.scale.y) + this.y;
 
     return p;
 
diff --git a/src/utils/Debug.js b/src/utils/Debug.js
index c3ee17a0..eb7aeadf 100644
--- a/src/utils/Debug.js
+++ b/src/utils/Debug.js
@@ -272,7 +272,7 @@ Phaser.Utils.Debug.prototype = {
         this.start(x, y, color);
 
         this.line('Sprite: ' + ' (' + sprite.width + ' x ' + sprite.height + ') anchor: ' + sprite.anchor.x + ' x ' + sprite.anchor.y);
-        // this.line('x: ' + sprite.x.toFixed(1) + ' y: ' + sprite.y.toFixed(1) + ' rotation: ' + sprite.rotation.toFixed(1));
+        this.line('x: ' + sprite.x.toFixed(1) + ' y: ' + sprite.y.toFixed(1) + ' rotation: ' + sprite.rotation.toFixed(1));
         // this.line('wx: ' + sprite.worldView.x + ' wy: ' + sprite.worldView.y + ' ww: ' + sprite.worldView.width.toFixed(1) + ' wh: ' + sprite.worldView.height.toFixed(1) + ' wb: ' + sprite.worldView.bottom + ' wr: ' + sprite.worldView.right);
         // this.line('sx: ' + sprite.scale.x.toFixed(1) + ' sy: ' + sprite.scale.y.toFixed(1));
 
@@ -288,8 +288,8 @@ Phaser.Utils.Debug.prototype = {
         this.line('scale y: ' + sprite.worldTransform[4]);
         this.line('tx: ' + sprite.worldTransform[2]);
         this.line('ty: ' + sprite.worldTransform[5]);
-        this.line('skew x: ' + sprite.worldTransform[1]);
-        this.line('skew y: ' + sprite.worldTransform[3]);
+        this.line('skew x: ' + sprite.worldTransform[3]);
+        this.line('skew y: ' + sprite.worldTransform[1]);
 
         // this.line('tx: ' + sprite.texture.width.toFixed(1) + ' ty: ' + sprite.texture.height.toFixed(1));
         // this.line('center x: ' + sprite.transform.center.x + ' y: ' + sprite.transform.center.y);