diff --git a/wp-admin/includes/theme.php b/wp-admin/includes/theme.php
index da67051b9..de31a8c77 100644
--- a/wp-admin/includes/theme.php
+++ b/wp-admin/includes/theme.php
@@ -139,7 +139,7 @@ function get_page_templates() {
 				$name = $name[1];
 
 			if ( !empty( $name ) ) {
-				$page_templates[trim( $name )] = basename( $template );
+				$page_templates[trim( $name )] = theme_basename( $template );
 			}
 		}
 	}
diff --git a/wp-admin/theme-editor.php b/wp-admin/theme-editor.php
index d388b4677..359765b20 100644
--- a/wp-admin/theme-editor.php
+++ b/wp-admin/theme-editor.php
@@ -151,7 +151,7 @@ if ($allowed_files) :
 <?php
 	$template_mapping = array();
 	$template_dir = $themes[$theme]['Template Dir'];
-	foreach($themes[$theme]['Template Files'] as $template_file) {
+	foreach ( $themes[$theme]['Template Files'] as $template_file ) {
 		$description = trim( get_file_description($template_file) );
 		$template_show = basename($template_file);
 		$filedesc = ( $description != $template_file ) ? "$description <span class='nonessential'>($template_show)</span>" : "$description";
@@ -177,7 +177,7 @@ if ($allowed_files) :
 	<ul>
 <?php
 	$template_mapping = array();
-	foreach($themes[$theme]['Stylesheet Files'] as $style_file) {
+	foreach ( $themes[$theme]['Stylesheet Files'] as $style_file ) {
 		$description = trim( get_file_description($style_file) );
 		$style_show = basename($style_file);
 		$filedesc = ( $description != $style_file ) ? "$description <span class='nonessential'>($style_show)</span>" : "$description";
@@ -204,7 +204,7 @@ if ($allowed_files) :
 		 </div>
 	<?php if ( isset($functions ) && count($functions) ) { ?>
 		<div id="documentation">
-		<label for="docs-list">Documentation:</label>
+		<label for="docs-list"><?php _e('Documentation:') ?></label>
 		<?php echo $docs_select; ?>
 		<input type="button" class="button" value=" <?php _e( 'Lookup' ); ?> " onclick="if ( '' != jQuery('#docs-list').val() ) { window.open( 'http://api.wordpress.org/core/handbook/1.0/?function=' + escape( jQuery( '#docs-list' ).val() ) + '&locale=<?php echo urlencode( get_locale() ) ?>&version=<?php echo urlencode( $wp_version ) ?>&redirect=true'); }" />
 		</div>
diff --git a/wp-includes/theme.php b/wp-includes/theme.php
index 5f6436dc9..6752dee4d 100644
--- a/wp-includes/theme.php
+++ b/wp-includes/theme.php
@@ -372,14 +372,28 @@ function get_themes() {
 						$template_files[] = "$theme_loc/$stylesheet/$file";
 				}
 			}
+			@ $stylesheet_dir->close();
 		}
-
+		
 		$template_dir = @ dir("$theme_root/$template");
 		if ( $template_dir ) {
-			while(($file = $template_dir->read()) !== false) {
-				if ( !preg_match('|^\.+$|', $file) && preg_match('|\.php$|', $file) )
+			while ( ($file = $template_dir->read()) !== false ) {
+				if ( preg_match('|^\.+$|', $file) )
+					continue;
+				if ( preg_match('|\.php$|', $file) ) {
 					$template_files[] = "$theme_loc/$template/$file";
+				} elseif ( is_dir("$theme_root/$template/$file") ) {
+					$template_subdir = @ dir("$theme_root/$template/$file");
+					while ( ($subfile = $template_subdir->read()) !== false ) {
+						if ( preg_match('|^\.+$|', $subfile) )
+							continue;
+						if ( preg_match('|\.php$|', $subfile) )
+							$template_files[] = "$theme_loc/$template/$file/$subfile";
+					}
+					@ $template_subdir->close();
+				}
 			}
+			@ $template_dir->close(); 
 		}
 
 		$template_dir = dirname($template_files[0]);
@@ -1117,4 +1131,27 @@ function add_custom_image_header($header_callback, $admin_header_callback) {
 	add_action('admin_menu', array(&$GLOBALS['custom_image_header'], 'init'));
 }
 
+/**
+ * Get the basename of a theme.
+ *
+ * This method extracts the filename of a theme file from a path
+ *
+ * @package WordPress
+ * @subpackage Plugin
+ * @since 2.8.0
+ *
+ * @access private
+ *
+ * @param string $file The filename of a theme file
+ * @return string The filename relative to the themes folder
+ */
+function theme_basename($file) {
+	$file = str_replace('\\','/',$file); // sanitize for Win32 installs
+	$file = preg_replace('|/+|','/', $file); // remove any duplicate slash
+	$theme_dir = str_replace('\\','/', get_theme_root()); // sanitize for Win32 installs
+	$theme_dir = preg_replace('|/+|','/', $theme_dir); // remove any duplicate slash
+	$file = preg_replace('|^.*/themes/.*?/|','',$file); // get relative path from theme dir 
+	return $file;
+}
+
 ?>