diff --git a/Gruntfile.js b/Gruntfile.js
index 7a03657..a0a7089 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -30,33 +30,31 @@ module.exports = function(grunt) {
 
     // Configuration to be run (and then tested).
     ssi: {
-      options: {
-        baseDir: 'test/fixtures/html/',
-      },
+      options: {},
       default_options: {
         options: {},
         files: [{
           expand: true,
-          cwd: 'test/fixtures',
-          src: ['html/**/*.html'],
-          dest: '.tmp/',
-          ext: '.html',
+          src: ['html/*'],
         }],
       },
       custom_options: {
         options: {
           cacheDir: '',
+
         },
         files: [{
           expand: true,
           cwd: 'test/fixtures',
           src: ['html/**/*.html'],
           dest: '.tmp/',
-          ext: '.html',
+
         }],
       },
       test_default: {
-        options: {},
+        options: {
+          baseDir: 'test/fixtures/html/',
+        },
         files: [{
           expand: true,
           cwd: 'test/fixtures',
diff --git a/html/includes/deep/deeper/level2.inc b/html/includes/deep/deeper/level2.inc
deleted file mode 100644
index 1a029d5..0000000
--- a/html/includes/deep/deeper/level2.inc
+++ /dev/null
@@ -1 +0,0 @@
-Level 2 Include<br />
diff --git a/html/includes/deep/deeper/level3.inc b/html/includes/deep/deeper/level3.inc
new file mode 100644
index 0000000..86c8ec6
--- /dev/null
+++ b/html/includes/deep/deeper/level3.inc
@@ -0,0 +1 @@
+		Level 3
\ No newline at end of file
diff --git a/html/includes/deep/level2.inc b/html/includes/deep/level2.inc
new file mode 100644
index 0000000..aff9988
--- /dev/null
+++ b/html/includes/deep/level2.inc
@@ -0,0 +1,2 @@
+	Level 2 
+		<!--#include file="deeper/level3.inc" -->
\ No newline at end of file
diff --git a/html/includes/deep/virtual0.inc b/html/includes/deep/virtual0.inc
new file mode 100644
index 0000000..8eec6d4
--- /dev/null
+++ b/html/includes/deep/virtual0.inc
@@ -0,0 +1,2 @@
+	Virtual 0
+	<!--#include virtual="levels.html" -->
\ No newline at end of file
diff --git a/html/includes/level1.inc b/html/includes/level1.inc
new file mode 100644
index 0000000..4a5632c
--- /dev/null
+++ b/html/includes/level1.inc
@@ -0,0 +1,2 @@
+Level 1
+	<!--#include file="deep/level2.inc" -->
\ No newline at end of file
diff --git a/html/level0.inc b/html/level0.inc
new file mode 100644
index 0000000..959b1ff
--- /dev/null
+++ b/html/level0.inc
@@ -0,0 +1,2 @@
+Level 0
+	<!--#include file="includes/level1.inc" -->
\ No newline at end of file
diff --git a/html/levels.html b/html/levels.html
new file mode 100644
index 0000000..7aa8af5
--- /dev/null
+++ b/html/levels.html
@@ -0,0 +1,2 @@
+Start File
+<!--#include file="level0.inc" -->
\ No newline at end of file
diff --git a/html/virtual.html b/html/virtual.html
new file mode 100644
index 0000000..e27e5d1
--- /dev/null
+++ b/html/virtual.html
@@ -0,0 +1,2 @@
+Virtual Start
+<!--#include virtual="includes/deep/virtual0.inc" -->
\ No newline at end of file
diff --git a/tasks/ssi.js b/tasks/ssi.js
index c2d0362..5908564 100644
--- a/tasks/ssi.js
+++ b/tasks/ssi.js
@@ -25,7 +25,7 @@ module.exports = function(grunt) {
       cache: false,
       ext: '.html',
       encoding: 'utf8',
-      baseDir: process.cwd(),
+      baseDir: 'html',
     };
 
     var options = this.options(defaults);
@@ -45,7 +45,7 @@ module.exports = function(grunt) {
       // Concat specified files.
       var src = f.src.filter(function(filepath) {
         // Warn on and remove invalid source files (if nonull was set).
-        if (!grunt.file.exists(filepath)) {
+        if (!grunt.file.exists(filepath) || grunt.file.isDir(filepath)) {
           grunt.log.warn('Source file "' + filepath + '" not found.');
           return false;
         } else {
@@ -53,9 +53,11 @@ module.exports = function(grunt) {
         }
       }).forEach(function(filepath) {
 
+        grunt.log.writeln('File to process: ' + f.src + ' - ' + filepath + ' dest: ' + f.dest);
+
         var data = ssi.processFile(filepath, options.cache);
 
-        var dest = f.dest; // + path.sep + path.basename(filepath, path.extname(filepath)) + options.ext;
+        var dest = f.dest ? f.dest : path.join('output', filepath); // + path.sep + path.basename(filepath, path.extname(filepath)) + options.ext;
 
         grunt.file.write(dest, data);
         grunt.log.writeln('File "' + dest + '" created.');