diff --git a/commands.lua b/commands.lua
index 583d1ef..dfac9b1 100644
--- a/commands.lua
+++ b/commands.lua
@@ -64,10 +64,6 @@ function source.draw_file_navigator()
   love.graphics.rectangle('fill', 0,Menu_status_bar_height, App.screen.width, File_navigation.num_lines * Editor_state.line_height + --[[highlight padding]] 2)
   local x,y = 5, Menu_status_bar_height
   for i,filename in ipairs(File_navigation.candidates) do
-    if filename == 'source' then
-      App.color(Menu_border_color)
-      love.graphics.line(Menu_cursor-10,2, Menu_cursor-10,Menu_status_bar_height-2)
-    end
     x,y = add_file_to_menu(x,y, filename, i == File_navigation.index)
     if Menu_cursor >= App.screen.width - 5 then
       break
@@ -124,9 +120,7 @@ function add_file_to_menu(x,y, s, cursor_highlight)
   end
   button(Editor_state, 'menu', {x=x-5, y=y-2, w=width+5*2, h=Editor_state.line_height+2*2, color=colortable(color),
     onpress1 = function()
-      local candidate = guess_source(s..'.lua')
-      source.switch_to_file(candidate)
-      Show_file_navigator = false
+      navigate_to_file(s)
     end
   })
   App.color(Menu_command_color)
@@ -135,21 +129,34 @@ function add_file_to_menu(x,y, s, cursor_highlight)
   return x,y
 end
 
+function navigate_to_file(s)
+  move_candidate_to_front(s)
+  local candidate = guess_source(s..'.lua')
+  source.switch_to_file(candidate)
+  reset_file_navigator()
+end
+
+function move_candidate_to_front(s)
+  local index = array.find(File_navigation.all_candidates, s)
+  assert(index)
+  table.remove(File_navigation.all_candidates, index)
+  table.insert(File_navigation.all_candidates, 1, s)
+end
+
+function reset_file_navigator()
+  Show_file_navigator = false
+  File_navigation.index = 1
+  File_navigation.filter = ''
+  File_navigation.candidates = File_navigation.all_candidates
+end
+
 function keychord_pressed_on_file_navigator(chord, key)
   log(2, 'file navigator: '..chord)
   log(2, {name='file_navigator_state', files=File_navigation.candidates, index=File_navigation.index})
   if chord == 'escape' then
-    Show_file_navigator = false
-    File_navigation.index = 1
-    File_navigation.filter = ''
-    File_navigation.candidates = File_navigation.all_candidates
+    reset_file_navigator()
   elseif chord == 'return' then
-    local candidate = guess_source(File_navigation.candidates[File_navigation.index]..'.lua')
-    source.switch_to_file(candidate)
-    Show_file_navigator = false
-    File_navigation.index = 1
-    File_navigation.filter = ''
-    File_navigation.candidates = File_navigation.all_candidates
+    navigate_to_file(File_navigation.candidates[File_navigation.index])
   elseif chord == 'backspace' then
     local len = utf8.len(File_navigation.filter)
     local byte_offset = Text.offset(File_navigation.filter, len)
diff --git a/search.lua b/search.lua
index 83545c9..37306f8 100644
--- a/search.lua
+++ b/search.lua
@@ -21,14 +21,14 @@ end
 
 function Text.search_next(State)
   -- search current line from cursor
-  local pos = find(State.lines[State.cursor1.line].data, State.search_term, State.cursor1.pos)
+  local pos = find(State.lines[State.cursor1.line].data, State.search_term, State.cursor1.pos, --[[literal]] true)
   if pos then
     State.cursor1.pos = pos
   end
   if pos == nil then
     -- search lines below cursor
     for i=State.cursor1.line+1,#State.lines do
-      pos = find(State.lines[i].data, State.search_term)
+      pos = find(State.lines[i].data, State.search_term, --[[from start]] nil, --[[literal]] true)
       if pos then
         State.cursor1 = {line=i, pos=pos}
         break
@@ -38,7 +38,7 @@ function Text.search_next(State)
   if pos == nil then
     -- wrap around
     for i=1,State.cursor1.line-1 do
-      pos = find(State.lines[i].data, State.search_term)
+      pos = find(State.lines[i].data, State.search_term, --[[from start]] nil, --[[literal]] true)
       if pos then
         State.cursor1 = {line=i, pos=pos}
         break
@@ -47,7 +47,7 @@ function Text.search_next(State)
   end
   if pos == nil then
     -- search current line until cursor
-    pos = find(State.lines[State.cursor1.line].data, State.search_term)
+    pos = find(State.lines[State.cursor1.line].data, State.search_term, --[[from start]] nil, --[[literal]] true)
     if pos and pos < State.cursor1.pos then
       State.cursor1.pos = pos
     end
@@ -67,14 +67,14 @@ end
 
 function Text.search_previous(State)
   -- search current line before cursor
-  local pos = rfind(State.lines[State.cursor1.line].data, State.search_term, State.cursor1.pos-1)
+  local pos = rfind(State.lines[State.cursor1.line].data, State.search_term, State.cursor1.pos-1, --[[literal]] true)
   if pos then
     State.cursor1.pos = pos
   end
   if pos == nil then
     -- search lines above cursor
     for i=State.cursor1.line-1,1,-1 do
-      pos = rfind(State.lines[i].data, State.search_term)
+      pos = rfind(State.lines[i].data, State.search_term, --[[from end]] nil, --[[literal]] true)
       if pos then
         State.cursor1 = {line=i, pos=pos}
         break
@@ -84,7 +84,7 @@ function Text.search_previous(State)
   if pos == nil then
     -- wrap around
     for i=#State.lines,State.cursor1.line+1,-1 do
-      pos = rfind(State.lines[i].data, State.search_term)
+      pos = rfind(State.lines[i].data, State.search_term, --[[from end]] nil, --[[literal]] true)
       if pos then
         State.cursor1 = {line=i, pos=pos}
         break
@@ -93,7 +93,7 @@ function Text.search_previous(State)
   end
   if pos == nil then
     -- search current line after cursor
-    pos = rfind(State.lines[State.cursor1.line].data, State.search_term)
+    pos = rfind(State.lines[State.cursor1.line].data, State.search_term, --[[from end]] nil, --[[literal]] true)
     if pos and pos > State.cursor1.pos then
       State.cursor1.pos = pos
     end
diff --git a/source.lua b/source.lua
index c763994..4047f38 100644
--- a/source.lua
+++ b/source.lua
@@ -45,6 +45,7 @@ function source.initialize_globals()
     },
     index = 1,
     filter = '',
+    cursors = {},  -- filename to cursor1, screen_top1
   }
   File_navigation.candidates = File_navigation.all_candidates  -- modified with filter
 
@@ -71,7 +72,7 @@ function source.initialize()
     source.initialize_default_settings()
   end
 
-  source.initialize_edit_side{'run.lua'}
+  source.initialize_edit_side()
   source.initialize_log_browser_side()
 
   Menu_status_bar_height = 5 + Editor_state.line_height + 5
@@ -82,20 +83,15 @@ end
 
 -- environment for a mutable file of bifolded text
 -- TODO: some initialization is also happening in load_settings/initialize_default_settings. Clean that up.
-function source.initialize_edit_side(arg)
-  if #arg > 0 then
-    Editor_state.filename = arg[1]
-    load_from_disk(Editor_state)
-    Text.redraw_all(Editor_state)
+function source.initialize_edit_side()
+  load_from_disk(Editor_state)
+  Text.redraw_all(Editor_state)
+  if File_navigation.cursors[Editor_state.filename] then
+    Editor_state.screen_top1 = File_navigation.cursors[Editor_state.filename].screen_top1
+    Editor_state.cursor1 = File_navigation.cursors[Editor_state.filename].cursor1
+  else
     Editor_state.screen_top1 = {line=1, pos=1}
     Editor_state.cursor1 = {line=1, pos=1}
-  else
-    load_from_disk(Editor_state)
-    Text.redraw_all(Editor_state)
-  end
-
-  if #arg > 1 then
-    print('ignoring commandline args after '..arg[1])
   end
 
   -- We currently start out with side B collapsed.
@@ -138,8 +134,16 @@ function source.load_settings()
   end
   Editor_state = edit.initialize_state(Margin_top, Margin_left, right, settings.font_height, math.floor(settings.font_height*1.3))
   Editor_state.filename = settings.filename
-  Editor_state.screen_top1 = settings.screen_top
-  Editor_state.cursor1 = settings.cursor
+  Editor_state.filename = basename(Editor_state.filename)  -- migrate settings that used full paths; we now support only relative paths within the app
+  if settings.cursors then
+    File_navigation.cursors = settings.cursors
+    Editor_state.screen_top1 = File_navigation.cursors[Editor_state.filename].screen_top1
+    Editor_state.cursor1 = File_navigation.cursors[Editor_state.filename].cursor1
+  else
+    -- migrate old settings
+    Editor_state.screen_top1 = {line=1, pos=1}
+    Editor_state.cursor1 = {line=1, pos=1}
+  end
 end
 
 function source.set_window_position_from_settings(settings)
@@ -153,6 +157,7 @@ function source.initialize_default_settings()
   local em = App.newText(love.graphics.getFont(), 'm')
   source.initialize_window_geometry(App.width(em))
   Editor_state = edit.initialize_state(Margin_top, Margin_left, App.screen.width-Margin_right)
+  Editor_state.filename = 'run.lua'
   Editor_state.font_height = font_height
   Editor_state.line_height = math.floor(font_height*1.3)
   Editor_state.em = em
@@ -214,12 +219,19 @@ function source.switch_to_file(filename)
   if Editor_state.next_save then
     save_to_disk(Editor_state)
   end
+  -- save cursor position
+  File_navigation.cursors[Editor_state.filename] = {cursor1=Editor_state.cursor1, screen_top1=Editor_state.screen_top1}
   -- clear the slate for the new file
   Editor_state.filename = filename
   load_from_disk(Editor_state)
   Text.redraw_all(Editor_state)
-  Editor_state.screen_top1 = {line=1, pos=1}
-  Editor_state.cursor1 = {line=1, pos=1}
+  if File_navigation.cursors[filename] then
+    Editor_state.screen_top1 = File_navigation.cursors[filename].screen_top1
+    Editor_state.cursor1 = File_navigation.cursors[filename].cursor1
+  else
+    Editor_state.screen_top1 = {line=1, pos=1}
+    Editor_state.cursor1 = {line=1, pos=1}
+  end
 end
 
 function source.draw()
@@ -260,17 +272,14 @@ function source.settings()
 --?     print('reading source window position')
     Settings.source.x, Settings.source.y, Settings.source.displayindex = App.screen.position()
   end
-  local filename = Editor_state.filename
-  if is_relative_path(filename) then
-    filename = love.filesystem.getWorkingDirectory()..'/'..filename  -- '/' should work even on Windows
-  end
 --?   print('saving source settings', Settings.source.x, Settings.source.y, Settings.source.displayindex)
+  File_navigation.cursors[Editor_state.filename] = {cursor1=Editor_state.cursor1, screen_top1=Editor_state.screen_top1}
   return {
     x=Settings.source.x, y=Settings.source.y, displayindex=Settings.source.displayindex,
     width=App.screen.width, height=App.screen.height,
     font_height=Editor_state.font_height,
-    filename=filename,
-    screen_top=Editor_state.screen_top1, cursor=Editor_state.cursor1,
+    filename=Editor_state.filename,
+    cursors=File_navigation.cursors,
     show_log_browser_side=Show_log_browser_side,
     focus=Focus,
   }
@@ -281,6 +290,11 @@ function source.mouse_pressed(x,y, mouse_button)
 --?   print('mouse click', x, y)
 --?   print(Editor_state.left, Editor_state.right)
 --?   print(Log_browser_state.left, Log_browser_state.right)
+  if Show_file_navigator and y < Menu_status_bar_height + File_navigation.num_lines * Editor_state.line_height then
+    -- send click to buttons
+    edit.mouse_pressed(Editor_state, x,y, mouse_button)
+    return
+  end
   if x < Editor_state.right + Margin_right then
 --?     print('click on edit side')
     if Focus ~= 'edit' then
diff --git a/source_file.lua b/source_file.lua
index 8dd8832..54624b9 100644
--- a/source_file.lua
+++ b/source_file.lua
@@ -216,3 +216,39 @@ end
 function is_relative_path(path)
   return not is_absolute_path(path)
 end
+
+function dirname(path)
+  local os_path_separator = package.config:sub(1,1)
+  if os_path_separator == '/' then
+    -- POSIX systems permit backslashes in filenames
+    return path:match('.*/') or './'
+  elseif os_path_separator == '\\' then
+    return path:match('.*[/\\]') or './'
+  else
+    error('What OS is this? LÖVE reports that the path separator is "'..os_path_separator..'"')
+  end
+end
+
+function test_dirname()
+  check_eq(dirname('a/b'), 'a/', 'F - test_dirname')
+  check_eq(dirname('x'), './', 'F - test_dirname/current')
+end
+
+function basename(path)
+  local os_path_separator = package.config:sub(1,1)
+  if os_path_separator == '/' then
+    -- POSIX systems permit backslashes in filenames
+    return string.gsub(path, ".*/(.*)", "%1")
+  elseif os_path_separator == '\\' then
+    return string.gsub(path, ".*[/\\](.*)", "%1")
+  else
+    error('What OS is this? LÖVE reports that the path separator is "'..os_path_separator..'"')
+  end
+end
+
+function empty(h)
+  for _,_ in pairs(h) do
+    return false
+  end
+  return true
+end