diff --git a/crypto b/crypto
index e0f9891a9..93dc9200f 160000
--- a/crypto
+++ b/crypto
@@ -1 +1 @@
-Subproject commit e0f9891a91d69c042f82c1e13e48ab4c7160381d
+Subproject commit 93dc9200fa4cb6bfa3883b19f6d33fd416ca43da
diff --git a/share/debian-7_8.supp b/share/debian-7_8.supp
index 11370ba26..99eefafa4 100644
--- a/share/debian-7_8.supp
+++ b/share/debian-7_8.supp
@@ -1,3 +1,13 @@
+{
+   strcpy.S:197
+   Memcheck:Cond
+   obj:/lib/x86_64-linux-gnu/libc-2.13.so
+}
+{
+   strcpy.S:1106
+   Memcheck:Value8
+   obj:/lib/x86_64-linux-gnu/libc-2.13.so
+}
 {
    stpncpy sse3
    Memcheck:Cond
diff --git a/share/ubuntu-12_04.supp b/share/ubuntu-12_04.supp
index 504e4ae2d..bab3287ef 100644
--- a/share/ubuntu-12_04.supp
+++ b/share/ubuntu-12_04.supp
@@ -1,3 +1,8 @@
+{
+   stpncpy in strcpy-sse2-unaligned.S:1659
+   Memcheck:Value8
+   fun:__stpncpy_sse2_unaligned
+}
 # old zlib version
 {
    zlib1g-dev-1:1.2.3.4.dfsg
diff --git a/src/battle.c b/src/battle.c
index 65b2cff7b..8fb2ec252 100644
--- a/src/battle.c
+++ b/src/battle.c
@@ -228,21 +228,11 @@ static void message_faction(battle * b, faction * f, struct message *m)
 void message_all(battle * b, message * m)
 {
     bfaction *bf;
-    plane *p = rplane(b->region);
-    watcher *w;
 
     for (bf = b->factions; bf; bf = bf->next) {
         assert(bf->faction);
         message_faction(b, bf->faction, m);
     }
-    if (p)
-        for (w = p->watchers; w; w = w->next) {
-            for (bf = b->factions; bf; bf = bf->next)
-                if (bf->faction == w->faction)
-                    break;
-            if (bf == NULL)
-                message_faction(b, w->faction, m);
-        }
 }
 
 static void fbattlerecord(battle * b, faction * f, const char *s)
diff --git a/src/bind_faction.c b/src/bind_faction.c
index 03a75281a..c6b747416 100644
--- a/src/bind_faction.c
+++ b/src/bind_faction.c
@@ -392,7 +392,7 @@ static int tolua_faction_set_password(lua_State * L)
 {
     faction *self = (faction *)tolua_tousertype(L, 1, 0);
     const char * passw = tolua_tostring(L, 2, 0);
-    faction_setpassword(self, password_hash(passw, 0, PASSWORD_DEFAULT));
+    faction_setpassword(self, password_encode(passw, PASSWORD_DEFAULT));
     return 0;
 }
 
diff --git a/src/bind_unit.c b/src/bind_unit.c
index ed8eb74c3..e0b076710 100755
--- a/src/bind_unit.c
+++ b/src/bind_unit.c
@@ -153,8 +153,8 @@ static int tolua_unit_get_group(lua_State * L)
 static int tolua_unit_set_group(lua_State * L)
 {
     unit *self = (unit *)tolua_tousertype(L, 1, 0);
-    int result = join_group(self, tolua_tostring(L, 2, 0));
-    lua_pushinteger(L, result);
+    group *g = join_group(self, tolua_tostring(L, 2, 0));
+    lua_pushboolean(L, g!=NULL);
     return 1;
 }
 
diff --git a/src/buildno.h b/src/buildno.h
index 9727f88eb..3ce9dbfe7 100644
--- a/src/buildno.h
+++ b/src/buildno.h
@@ -1,3 +1,3 @@
 #define VERSION_MAJOR 3
 #define VERSION_MINOR 8
-#define VERSION_BUILD 3
+#define VERSION_BUILD 4
diff --git a/src/kernel/alliance.test.c b/src/kernel/alliance.test.c
index 98e60e943..1b708b017 100644
--- a/src/kernel/alliance.test.c
+++ b/src/kernel/alliance.test.c
@@ -4,6 +4,7 @@
 #include "alliance.h"
 #include <CuTest.h>
 #include <tests.h>
+#include <quicklist.h>
 
 #include <assert.h>
 
@@ -61,9 +62,31 @@ static void test_alliance_join(CuTest *tc) {
     test_cleanup();
 }
 
+static void test_alliance_dead_faction(CuTest *tc) {
+    faction *f, *f2;
+    alliance *al;
+
+    test_cleanup();
+    f = test_create_faction(0);
+    f2 = test_create_faction(0);
+    al = makealliance(42, "Hodor");
+    setalliance(f, al);
+    setalliance(f2, al);
+    CuAssertPtrEquals(tc, f, alliance_get_leader(al));
+    CuAssertIntEquals(tc, 2, ql_length(al->members));
+    CuAssertPtrEquals(tc, al, f->alliance);
+    destroyfaction(&factions);
+    CuAssertIntEquals(tc, 1, ql_length(al->members));
+    CuAssertPtrEquals(tc, f2, alliance_get_leader(al));
+    CuAssertPtrEquals(tc, NULL, f->alliance);
+    CuAssertTrue(tc, !f->_alive);
+    test_cleanup();
+}
+
 CuSuite *get_alliance_suite(void)
 {
     CuSuite *suite = CuSuiteNew();
+    SUITE_ADD_TEST(suite, test_alliance_dead_faction);
     SUITE_ADD_TEST(suite, test_alliance_make);
     SUITE_ADD_TEST(suite, test_alliance_join);
     return suite;
diff --git a/src/kernel/faction.c b/src/kernel/faction.c
index ac1cf69af..b52879464 100755
--- a/src/kernel/faction.c
+++ b/src/kernel/faction.c
@@ -252,7 +252,7 @@ faction *addfaction(const char *email, const char *password,
     }
 
     if (!password) password = itoa36(rng_int());
-    faction_setpassword(f, password_hash(password, 0, PASSWORD_DEFAULT));
+    faction_setpassword(f, password_encode(password, PASSWORD_DEFAULT));
     ADDMSG(&f->msgs, msg_message("changepasswd", "value", password));
 
     f->alliance_joindate = turn;
@@ -567,7 +567,8 @@ void faction_setbanner(faction * self, const char *banner)
 
 void faction_setpassword(faction * f, const char *pwhash)
 {
-    assert(pwhash && pwhash[0] == '$');
+    assert(pwhash);
+    // && pwhash[0] == '$');
     free(f->_password);
     f->_password = _strdup(pwhash);
 }
diff --git a/src/kernel/faction.test.c b/src/kernel/faction.test.c
index 678aaa068..19b4da883 100644
--- a/src/kernel/faction.test.c
+++ b/src/kernel/faction.test.c
@@ -108,12 +108,12 @@ static void test_addfaction(CuTest *tc) {
     CuAssertPtrEquals(tc, NULL, (void *)f->ursprung);
     CuAssertPtrEquals(tc, (void *)factions, (void *)f);
     CuAssertStrEquals(tc, "test@eressea.de", f->email);
-    CuAssertIntEquals(tc, true, checkpasswd(f, "hurrdurr"));
+    CuAssertTrue(tc, checkpasswd(f, "hurrdurr"));
     CuAssertPtrEquals(tc, (void *)lang, (void *)f->locale);
     CuAssertIntEquals(tc, 1234, f->subscription);
     CuAssertIntEquals(tc, 0, f->flags);
     CuAssertIntEquals(tc, 0, f->age);
-    CuAssertIntEquals(tc, true, faction_alive(f));
+    CuAssertTrue(tc, faction_alive(f));
     CuAssertIntEquals(tc, M_GRAY, f->magiegebiet);
     CuAssertIntEquals(tc, turn, f->lastorders);
     CuAssertPtrEquals(tc, f, findfaction(f->no));
@@ -124,10 +124,10 @@ static void test_check_passwd(CuTest *tc) {
     faction *f;
     
     f = test_create_faction(0);
-    faction_setpassword(f, password_hash("password", 0, PASSWORD_DEFAULT));
-    CuAssertIntEquals(tc, true, checkpasswd(f, "password"));
-    CuAssertIntEquals(tc, false, checkpasswd(f, "assword"));
-    CuAssertIntEquals(tc, false, checkpasswd(f, "PASSWORD"));
+    faction_setpassword(f, password_encode("password", PASSWORD_DEFAULT));
+    CuAssertTrue(tc, checkpasswd(f, "password"));
+    CuAssertTrue(tc, !checkpasswd(f, "assword"));
+    CuAssertTrue(tc, !checkpasswd(f, "PASSWORD"));
 }
 
 static void test_get_monsters(CuTest *tc) {
diff --git a/src/kernel/group.c b/src/kernel/group.c
index 9b8b368ad..fdef2b8b8 100755
--- a/src/kernel/group.c
+++ b/src/kernel/group.c
@@ -179,7 +179,7 @@ void set_group(struct unit *u, struct group *g)
     }
 }
 
-bool join_group(unit * u, const char *name)
+group *join_group(unit * u, const char *name)
 {
     group *g = NULL;
 
@@ -192,7 +192,7 @@ bool join_group(unit * u, const char *name)
     }
 
     set_group(u, g);
-    return true;
+    return g;
 }
 
 void write_groups(struct storage *store, const faction * f)
diff --git a/src/kernel/group.h b/src/kernel/group.h
index b32bed4c1..145881c00 100755
--- a/src/kernel/group.h
+++ b/src/kernel/group.h
@@ -36,7 +36,7 @@ extern "C" {
     } group;
 
     extern struct attrib_type at_group;   /* attribute for units assigned to a group */
-    extern bool join_group(struct unit *u, const char *name);
+    extern struct group *join_group(struct unit *u, const char *name);
     extern void set_group(struct unit *u, struct group *g);
     extern struct group * get_group(const struct unit *u);
     extern void free_group(struct group *g);
diff --git a/src/kernel/group.test.c b/src/kernel/group.test.c
index fa3487cb3..7daca2829 100644
--- a/src/kernel/group.test.c
+++ b/src/kernel/group.test.c
@@ -83,8 +83,8 @@ static void test_group(CuTest * tc)
     assert(r && f);
     u = test_create_unit(f, r);
     assert(u);
-    CuAssertTrue(tc, join_group(u, "hodor"));
-    CuAssertPtrNotNull(tc, (g = get_group(u)));
+    CuAssertPtrNotNull(tc, (g = join_group(u, "hodor")));
+    CuAssertPtrEquals(tc, g, get_group(u));
     CuAssertStrEquals(tc, "hodor", g->name);
     CuAssertIntEquals(tc, 1, g->members);
     set_group(u, 0);
diff --git a/src/kernel/plane.c b/src/kernel/plane.c
index 32c95f6a8..2542a053d 100644
--- a/src/kernel/plane.c
+++ b/src/kernel/plane.c
@@ -290,14 +290,3 @@ int read_plane_reference(plane ** pp, struct storage *store)
         ur_add(id, pp, resolve_plane);
     return AT_READ_OK;
 }
-
-bool is_watcher(const struct plane * p, const struct faction * f)
-{
-    struct watcher *w;
-    if (!p)
-        return false;
-    w = p->watchers;
-    while (w && w->faction != f)
-        w = w->next;
-    return (w != NULL);
-}
diff --git a/src/kernel/plane.h b/src/kernel/plane.h
index 2426c6a1a..d8ec176a9 100644
--- a/src/kernel/plane.h
+++ b/src/kernel/plane.h
@@ -23,6 +23,7 @@ extern "C" {
 #endif
 
     struct region;
+    struct faction;
     struct plane;
     struct storage;
 
@@ -43,15 +44,8 @@ extern "C" {
 #define PFL_NOMONSTERS  16384   /* no monster randenc */
 #define PFL_SEESPECIAL  32768   /* far seeing */
 
-    typedef struct watcher {
-        struct watcher *next;
-        struct faction *faction;
-        unsigned char mode;
-    } watcher;
-
     typedef struct plane {
         struct plane *next;
-        struct watcher *watchers;
         int id;
         char *name;
         int minx, maxx, miny, maxy;
@@ -76,7 +70,6 @@ extern "C" {
     struct plane *get_homeplane(void);
     extern int rel_to_abs(const struct plane *pl, const struct faction *f,
         int rel, unsigned char index);
-    extern bool is_watcher(const struct plane *p, const struct faction *f);
     extern void write_plane_reference(const plane * p, struct storage *store);
     extern int read_plane_reference(plane ** pp, struct storage *store);
     extern int plane_width(const plane * pl);
diff --git a/src/kernel/save.c b/src/kernel/save.c
index 93bd8ffc0..1619b3622 100644
--- a/src/kernel/save.c
+++ b/src/kernel/save.c
@@ -544,7 +544,8 @@ static void write_owner(struct gamedata *data, region_owner * owner)
         write_faction_reference((f && f->_alive) ? f : NULL, data->store);
         // TODO: check that destroyfaction does the right thing.
         // TODO: What happens to morale when the owner dies?
-        write_faction_reference(owner->owner, data->store);
+        f = owner->owner;
+        write_faction_reference((f && f->_alive) ? f : NULL, data->store);
     }
     else {
         WRITE_INT(data->store, -1);
@@ -766,6 +767,7 @@ void write_unit(struct gamedata *data, const unit * u)
     const race *irace = u_irace(u);
 
     write_unit_reference(u, data->store);
+    assert(u->faction->_alive);
     write_faction_reference(u->faction, data->store);
     WRITE_STR(data->store, u->_name);
     WRITE_STR(data->store, u->display ? u->display : "");
@@ -1159,6 +1161,58 @@ void write_spellbook(const struct spellbook *book, struct storage *store)
     WRITE_TOK(store, "end");
 }
 
+static char * getpasswd(int fno) {
+    const char *prefix = itoa36(fno);
+    size_t len = strlen(prefix);
+    FILE * F = fopen("passwords.txt", "r");
+    char line[80];
+    if (F) {
+        while (!feof(F)) {
+            fgets(line, sizeof(line), F);
+            if (line[len]==':' && strncmp(prefix, line, len)==0) {
+                size_t slen = strlen(line)-1;
+                assert(line[slen]=='\n');
+                line[slen] = 0;
+                fclose(F);
+                return _strdup(line+len+1);
+            }
+        }
+        fclose(F);
+    }
+    return NULL;
+}
+
+static void read_password(gamedata *data, faction *f) {
+    char name[128];
+    READ_STR(data->store, name, sizeof(name));
+    if (data->version == BADCRYPT_VERSION) {
+        char * pass = getpasswd(f->no);
+        if (pass) {
+            faction_setpassword(f, password_encode(pass, PASSWORD_DEFAULT));
+            free(pass); // TODO: remove this allocation!
+        }
+        else {
+            free(f->_password);
+            f->_password = NULL;
+        }
+    }
+    else {
+        faction_setpassword(f, (data->version >= CRYPT_VERSION) ? name : password_encode(name, PASSWORD_DEFAULT));
+    }
+}
+
+void _test_read_password(gamedata *data, faction *f) {
+    read_password(data, f);
+}
+
+static void write_password(gamedata *data, const faction *f) {
+    WRITE_TOK(data->store, (const char *)f->_password);
+}
+
+void _test_write_password(gamedata *data, const faction *f) {
+    write_password(data, f);
+}
+
 /** Reads a faction from a file.
  * This function requires no context, can be called in any state. The
  * faction may not already exist, however.
@@ -1225,8 +1279,7 @@ faction *readfaction(struct gamedata * data)
         set_email(&f->email, "");
     }
 
-    READ_STR(data->store, name, sizeof(name));
-    faction_setpassword(f, (data->version > CRYPT_VERSION) ? name : password_hash(name, 0, PASSWORD_DEFAULT));
+    read_password(data, f);
     if (data->version < NOOVERRIDE_VERSION) {
         READ_STR(data->store, 0, 0);
     }
@@ -1313,6 +1366,7 @@ void writefaction(struct gamedata *data, const faction * f)
     ally *sf;
     ursprung *ur;
 
+    assert(f->_alive);
     write_faction_reference(f, data->store);
     WRITE_INT(data->store, f->subscription);
 #if RELEASE_VERSION >= SPELL_LEVEL_VERSION
@@ -1333,7 +1387,7 @@ void writefaction(struct gamedata *data, const faction * f)
     WRITE_STR(data->store, f->name);
     WRITE_STR(data->store, f->banner);
     WRITE_STR(data->store, f->email);
-    WRITE_TOK(data->store, f->_password);
+    write_password(data, f);
     WRITE_TOK(data->store, locale_name(f->locale));
     WRITE_INT(data->store, f->lastorders);
     WRITE_INT(data->store, f->age);
@@ -1384,32 +1438,6 @@ static int cb_sb_maxlevel(spellbook_entry *sbe, void *cbdata) {
     return 0;
 }
 
-void write_watchers(storage *store, plane *pl) {
-    watcher *w = pl->watchers;
-    while (w) {
-        if (w->faction && w->faction->_alive) {
-            write_faction_reference(w->faction, store);
-            WRITE_INT(store, w->mode);
-        }
-        w = w->next;
-    }
-    write_faction_reference(NULL, store);       /* mark the end of the list */
-}
-
-void read_watchers(storage *store, plane *pl) {
-    variant fno = read_faction_reference(store);
-    while (fno.i) {
-        int n;
-        watcher *w = (watcher *)malloc(sizeof(watcher));
-        ur_add(fno, &w->faction, resolve_faction);
-        READ_INT(store, &n);
-        w->mode = (unsigned char)n;
-        w->next = pl->watchers;
-        pl->watchers = w;
-        fno = read_faction_reference(store);
-    }
-}
-
 int readgame(const char *filename, bool backup)
 {
     int n, p, nread;
@@ -1528,7 +1556,13 @@ int readgame(const char *filename, bool backup)
             }
         }
         else {
-            read_watchers(&store, pl);
+            /* WATCHERS - eliminated in February 2016, ca. turn 966 */
+            if (gdata.version < CRYPT_VERSION) {
+                variant fno;
+                do {
+                    fno = read_faction_reference(&store);
+                }  while (fno.i);
+            }
         }
         a_read(&store, &pl->attribs, pl);
         if (pl->id != 1094969858) { // Regatta
@@ -1815,7 +1849,9 @@ int writegame(const char *filename)
         WRITE_INT(&store, pl->miny);
         WRITE_INT(&store, pl->maxy);
         WRITE_INT(&store, pl->flags);
-        write_watchers(&store, pl);
+#if RELEASE_VERSION < CRYPT_VERSION
+        write_faction_reference(NULL, &store);  /* mark the end of pl->watchers (gone since T966)  */
+#endif
         a_write(&store, pl->attribs, pl);
         WRITE_SECTION(&store);
     }
diff --git a/src/kernel/save.h b/src/kernel/save.h
index ca364fc9c..cedd5befc 100644
--- a/src/kernel/save.h
+++ b/src/kernel/save.h
@@ -83,6 +83,9 @@ extern "C" {
     struct gamedata *gamedata_open(const char *filename, const char *mode);
     void gamedata_close(struct gamedata *data);
 
+    /* test-only functions that give access to internal implementation details (BAD) */
+    void _test_write_password(struct gamedata *data, const struct faction *f);
+    void _test_read_password(struct gamedata *data, struct faction *f);
 #ifdef __cplusplus
 }
 #endif
diff --git a/src/kernel/save.test.c b/src/kernel/save.test.c
index e7f85ad7e..de7f28084 100644
--- a/src/kernel/save.test.c
+++ b/src/kernel/save.test.c
@@ -3,11 +3,25 @@
 
 #include "save.h"
 #include "unit.h"
+#include "group.h"
+#include "ally.h"
 #include "faction.h"
+#include "plane.h"
+#include "region.h"
 #include "version.h"
+#include <triggers/changefaction.h>
+#include <triggers/createunit.h>
+#include <triggers/timeout.h>
+#include <util/attrib.h>
+#include <util/event.h>
+#include <util/base36.h>
+#include <util/password.h>
+
 #include <CuTest.h>
 #include <tests.h>
 
+#include <storage.h>
+
 #include <stdio.h>
 
 static void test_readwrite_data(CuTest * tc)
@@ -42,15 +56,17 @@ static void test_readwrite_unit(CuTest * tc)
     u = test_create_unit(f, r);
     join_path(datapath(), filename, path, sizeof(path));
 
-    data = gamedata_open(path, "w");
-    CuAssertPtrNotNull(tc, data); // TODO: intermittent test
+    data = gamedata_open(path, "wb");
+    CuAssertPtrNotNull(tc, data);
+
     write_unit(data, u);
     gamedata_close(data);
 
     free_gamedata();
     f = test_create_faction(0);
     renumber_faction(f, fno);
-    data = gamedata_open(path, "r");
+    data = gamedata_open(path, "rb");
+    CuAssertPtrNotNull(tc, data);
     u = read_unit(data);
     gamedata_close(data);
 
@@ -61,10 +77,189 @@ static void test_readwrite_unit(CuTest * tc)
     test_cleanup();
 }
 
+static void test_readwrite_dead_faction_group(CuTest *tc) {
+    faction *f, *f2;
+    unit * u;
+    group *g;
+    ally *al;
+    int fno;
+
+    test_cleanup();
+    f = test_create_faction(0);
+    fno = f->no;
+    CuAssertPtrEquals(tc, f, factions);
+    CuAssertPtrEquals(tc, 0, f->next);
+    f2 = test_create_faction(0);
+    CuAssertPtrEquals(tc, f2, factions->next);
+    u = test_create_unit(f2, test_create_region(0, 0, 0));
+    CuAssertPtrNotNull(tc, u);
+    g = join_group(u, "group");
+    CuAssertPtrNotNull(tc, g);
+    al = ally_add(&g->allies, f);
+    CuAssertPtrNotNull(tc, al);
+
+    CuAssertPtrEquals(tc, f, factions);
+    destroyfaction(&factions);
+    CuAssertTrue(tc, !f->_alive);
+    CuAssertPtrEquals(tc, f2, factions);
+    writegame("test.dat");
+    free_gamedata();
+    f = f2 = NULL;
+    readgame("test.dat", false);
+    CuAssertPtrEquals(tc, 0, findfaction(fno));
+    f2 = factions;
+    CuAssertPtrNotNull(tc, f2);
+    u = f2->units;
+    CuAssertPtrNotNull(tc, u);
+    g = get_group(u);
+    CuAssertPtrNotNull(tc, g);
+    CuAssertPtrEquals(tc, 0, g->allies);
+    test_cleanup();
+}
+
+static void test_readwrite_dead_faction_regionowner(CuTest *tc) {
+    faction *f;
+    region *r;
+
+    test_cleanup();
+    config_set("rules.region_owners", "1");
+    f = test_create_faction(0);
+    test_create_unit(f, r = test_create_region(0, 0, 0));
+    region_set_owner(r, f, turn);
+    destroyfaction(&factions);
+    CuAssertTrue(tc, !f->_alive);
+    remove_empty_units();
+    writegame("test.dat");
+    free_gamedata();
+    f = NULL;
+    readgame("test.dat", false);
+    f = factions;
+    CuAssertPtrEquals(tc, 0, f);
+    r = regions;
+    CuAssertPtrNotNull(tc, r);
+    CuAssertPtrEquals(tc, 0, region_get_owner(r));
+    test_cleanup();
+}
+
+static void test_readwrite_dead_faction_changefaction(CuTest *tc) {
+    faction *f, *f2;
+    region *r;
+    trigger *tr;
+    unit * u;
+
+    test_cleanup();
+    f = test_create_faction(0);
+    f2 = test_create_faction(0);
+    u = test_create_unit(f2, r = test_create_region(0, 0, 0));
+    tr = trigger_changefaction(u, f);
+    add_trigger(&u->attribs, "timer", trigger_timeout(10, tr));
+    CuAssertPtrNotNull(tc, a_find(u->attribs, &at_eventhandler));
+    destroyfaction(&factions);
+    CuAssertTrue(tc, !f->_alive);
+    remove_empty_units();
+    writegame("test.dat");
+    free_gamedata();
+    f = NULL;
+    readgame("test.dat", false);
+    f = factions;
+    CuAssertPtrNotNull(tc, f);
+    r = regions;
+    CuAssertPtrNotNull(tc, r);
+    u = r->units;
+    CuAssertPtrNotNull(tc, u);
+    CuAssertPtrEquals(tc, 0, a_find(u->attribs, &at_eventhandler));
+    test_cleanup();
+}
+
+static void test_readwrite_dead_faction_createunit(CuTest *tc) {
+    faction *f, *f2;
+    region *r;
+    trigger *tr;
+    unit * u;
+
+    test_cleanup();
+    f = test_create_faction(0);
+    f2 = test_create_faction(0);
+    u = test_create_unit(f2, r = test_create_region(0, 0, 0));
+    tr = trigger_createunit(r, f, f->race, 1);
+    add_trigger(&u->attribs, "timer", trigger_timeout(10, tr));
+    CuAssertPtrNotNull(tc, a_find(u->attribs, &at_eventhandler));
+    destroyfaction(&factions);
+    CuAssertTrue(tc, !f->_alive);
+    remove_empty_units();
+    writegame("test.dat");
+    free_gamedata();
+    f = NULL;
+    readgame("test.dat", false);
+    f = factions;
+    CuAssertPtrNotNull(tc, f);
+    r = regions;
+    CuAssertPtrNotNull(tc, r);
+    u = r->units;
+    CuAssertPtrNotNull(tc, u);
+    CuAssertPtrEquals(tc, 0, a_find(u->attribs, &at_eventhandler));
+    test_cleanup();
+}
+
+static void test_read_password(CuTest *tc) {
+    const char *path = "test.dat";
+    gamedata *data;
+    faction *f;
+    f = test_create_faction(0);
+    faction_setpassword(f, password_encode("secret", PASSWORD_DEFAULT));
+    data = gamedata_open(path, "wb");
+    CuAssertPtrNotNull(tc, data);
+    _test_write_password(data, f);
+    gamedata_close(data);
+    data = gamedata_open(path, "rb");
+    CuAssertPtrNotNull(tc, data);
+    _test_read_password(data, f);
+    gamedata_close(data);
+    CuAssertTrue(tc, checkpasswd(f, "secret"));
+    CuAssertIntEquals(tc, 0, remove(path));
+}
+
+static void test_read_password_external(CuTest *tc) {
+    const char *path = "test.dat", *pwfile = "passwords.txt";
+    gamedata *data;
+    faction *f;
+    FILE * F;
+
+    remove(pwfile);
+    f = test_create_faction(0);
+    faction_setpassword(f, password_encode("secret", PASSWORD_DEFAULT));
+    CuAssertPtrNotNull(tc, f->_password);
+    data = gamedata_open(path, "wb");
+    CuAssertPtrNotNull(tc, data);
+    WRITE_TOK(data->store, (const char *)f->_password);
+    WRITE_TOK(data->store, (const char *)f->_password);
+    gamedata_close(data);
+    data = gamedata_open(path, "rb");
+    CuAssertPtrNotNull(tc, data);
+    data->version = BADCRYPT_VERSION;
+    _test_read_password(data, f);
+    CuAssertPtrEquals(tc, 0, f->_password);
+    F = fopen(pwfile, "wt");
+    fprintf(F, "%s:secret\n", itoa36(f->no));
+    fclose(F);
+    _test_read_password(data, f);
+    CuAssertPtrNotNull(tc, f->_password);
+    gamedata_close(data);
+    CuAssertTrue(tc, checkpasswd(f, "secret"));
+    CuAssertIntEquals(tc, 0, remove(path));
+    CuAssertIntEquals(tc, 0, remove(pwfile));
+}
+
 CuSuite *get_save_suite(void)
 {
     CuSuite *suite = CuSuiteNew();
     SUITE_ADD_TEST(suite, test_readwrite_data);
     SUITE_ADD_TEST(suite, test_readwrite_unit);
+    SUITE_ADD_TEST(suite, test_readwrite_dead_faction_createunit);
+    SUITE_ADD_TEST(suite, test_readwrite_dead_faction_changefaction);
+    SUITE_ADD_TEST(suite, test_readwrite_dead_faction_regionowner);
+    DISABLE_TEST(suite, test_readwrite_dead_faction_group);
+    SUITE_ADD_TEST(suite, test_read_password);
+    SUITE_ADD_TEST(suite, test_read_password_external);
     return suite;
 }
diff --git a/src/kernel/version.h b/src/kernel/version.h
index c18957530..3ff4e927a 100644
--- a/src/kernel/version.h
+++ b/src/kernel/version.h
@@ -33,9 +33,10 @@
 #define SPELL_LEVEL_VERSION 348 /* f->max_spelllevel gets stored, not calculated */
 #define OWNER_3_VERSION 349 /* regions store last owner, not last alliance */
 #define ATTRIBOWNER_VERSION 350 /* all attrib_type functions know who owns the attribute */
-#define CRYPT_VERSION 351 /* passwords are encrypted */
-#define RELEASE_VERSION CRYPT_VERSION /* current datafile */
+#define BADCRYPT_VERSION 351 /* passwords are encrypted, poorly */
+#define CRYPT_VERSION 352 /* passwords are encrypted */
+#define RELEASE_VERSION ATTRIBOWNER_VERSION /* current datafile */
 #define MIN_VERSION INTPAK_VERSION      /* minimal datafile we support */
-#define MAX_VERSION RELEASE_VERSION /* change this if we can need to read the future datafile, and we can do so */
+#define MAX_VERSION BADCRYPT_VERSION /* change this if we can need to read the future datafile, and we can do so */
 
 #define STREAM_VERSION 2 /* internal encoding of binary files */
diff --git a/src/laws.c b/src/laws.c
index eb079b8ac..1e1fc33ad 100755
--- a/src/laws.c
+++ b/src/laws.c
@@ -2172,7 +2172,7 @@ int password_cmd(unit * u, struct order *ord)
         cmistake(u, ord, 283, MSG_EVENT);
         strlcpy(pwbuf, itoa36(rng_int()), sizeof(pwbuf));
     }
-    faction_setpassword(u->faction, password_hash(pwbuf, 0, PASSWORD_DEFAULT));
+    faction_setpassword(u->faction, password_encode(pwbuf, PASSWORD_DEFAULT));
     ADDMSG(&u->faction->msgs, msg_message("changepasswd",
         "value", pwbuf));
     return 0;
diff --git a/src/reports.c b/src/reports.c
index b33f5f1cb..595f92ae3 100644
--- a/src/reports.c
+++ b/src/reports.c
@@ -1385,17 +1385,9 @@ static void prepare_reports(void)
 
     for (r = regions; r; r = r->next) {
         unit *u;
-        plane *p = rplane(r);
 
         reorder_units(r);
 
-        if (p) {
-            watcher *w = p->watchers;
-            for (; w; w = w->next) {
-                faction_add_seen(w->faction, r, w->mode);
-            }
-        }
-
         /* Region owner get always the Lighthouse report */
         if (bt_lighthouse && config_token("rules.region_owner_pay_building", bt_lighthouse->_name)) {
             for (b = rbuildings(r); b; b = b->next) {
@@ -1464,8 +1456,6 @@ static region *lastregion(faction * f)
 
     /* we continue from the best region and look for travelthru etc. */
     for (r = f->last->next; r; r = r->next) {
-        plane *p = rplane(r);
-
         /* search the region for travelthru-attributes: */
         if (fval(r, RF_TRAVELUNIT)) {
             travelthru_map(r, cb_set_last, f);
@@ -1474,9 +1464,6 @@ static region *lastregion(faction * f)
             continue;
         if (check_leuchtturm(r, f))
             f->last = r;
-        if (p && is_watcher(p, f)) {
-            f->last = r;
-        }
     }
     return f->last->next;
 #else
diff --git a/src/tests.c b/src/tests.c
index b8508b4cc..b52759489 100644
--- a/src/tests.c
+++ b/src/tests.c
@@ -5,6 +5,7 @@
 #include "prefix.h"
 
 #include <kernel/config.h>
+#include <kernel/plane.h>
 #include <kernel/region.h>
 #include <kernel/terrain.h>
 #include <kernel/item.h>
@@ -47,7 +48,7 @@ struct region *test_create_region(int x, int y, const terrain_type *terrain)
 {
     region *r = findregion(x, y);
     if (!r) {
-        r = new_region(x, y, NULL, 0);
+        r = new_region(x, y, findplane(x, y), 0);
     }
     if (!terrain) {
         terrain_type *t = get_or_create_terrain("plain");
diff --git a/src/triggers/changefaction.c b/src/triggers/changefaction.c
index eb212b769..47eee5874 100644
--- a/src/triggers/changefaction.c
+++ b/src/triggers/changefaction.c
@@ -79,14 +79,20 @@ static void changefaction_write(const trigger * t, struct storage *store)
 {
     changefaction_data *td = (changefaction_data *)t->data.v;
     write_unit_reference(td->unit, store);
-    write_faction_reference(td->faction, store);
+    write_faction_reference(td->faction->_alive ? td->faction : NULL, store);
 }
 
 static int changefaction_read(trigger * t, struct storage *store)
 {
+    variant var;
     changefaction_data *td = (changefaction_data *)t->data.v;
     read_reference(&td->unit, store, read_unit_reference, resolve_unit);
-    read_reference(&td->faction, store, read_faction_reference, resolve_faction);
+    var = read_faction_reference(store);
+    if (var.i == 0) {
+        return AT_READ_FAIL;
+    }
+    ur_add(var, &td->faction, resolve_faction);
+    // read_reference(&td->faction, store, read_faction_reference, resolve_faction);
     return AT_READ_OK;
 }
 
diff --git a/src/triggers/createunit.c b/src/triggers/createunit.c
index 642e598f0..ef79d4300 100644
--- a/src/triggers/createunit.c
+++ b/src/triggers/createunit.c
@@ -82,7 +82,7 @@ static int createunit_handle(trigger * t, void *data)
 static void createunit_write(const trigger * t, struct storage *store)
 {
     createunit_data *td = (createunit_data *)t->data.v;
-    write_faction_reference(td->f, store);
+    write_faction_reference(td->f->_alive ? td->f : NULL, store);
     write_region_reference(td->r, store);
     write_race_reference(td->race, store);
     WRITE_INT(store, td->number);
@@ -91,21 +91,27 @@ static void createunit_write(const trigger * t, struct storage *store)
 static int createunit_read(trigger * t, struct storage *store)
 {
     createunit_data *td = (createunit_data *)t->data.v;
+    variant var;
+    int result = AT_READ_OK;
 
-    int uc =
-        read_reference(&td->f, store, read_faction_reference, resolve_faction);
-    int rc =
-        read_reference(&td->r, store, read_region_reference,
+    var = read_faction_reference(store);
+    if (var.i > 0) {
+        td->f = findfaction(var.i);
+        if (!td->f) {
+            ur_add(var, &td->f, resolve_faction);
+        }
+    }
+    else {
+        result = AT_READ_FAIL;
+    }
+    read_reference(&td->r, store, read_region_reference,
         RESOLVE_REGION(global.data_version));
     td->race = (const struct race *)read_race_reference(store).v;
-
-    if (uc == 0 && rc == 0) {
-        if (!td->f || !td->r)
-            return AT_READ_FAIL;
+    if (!td->race) {
+        result = AT_READ_FAIL;
     }
     READ_INT(store, &td->number);
-
-    return AT_READ_OK;
+    return result;
 }
 
 trigger_type tt_createunit = {
diff --git a/src/util/gamedata.test.c b/src/util/gamedata.test.c
new file mode 100644
index 000000000..b28066b97
--- /dev/null
+++ b/src/util/gamedata.test.c
@@ -0,0 +1,25 @@
+#include <platform.h>
+#include "gamedata.h"
+
+#include <CuTest.h>
+#include <tests.h>
+#include <stdio.h>
+
+static void test_gamedata(CuTest * tc)
+{
+    gamedata *data;
+    data = gamedata_open("test.dat", "wb", 0);
+    CuAssertPtrNotNull(tc, data);
+    gamedata_close(data);
+    data = gamedata_open("test.dat", "rb", 0);
+    CuAssertPtrNotNull(tc, data);
+    gamedata_close(data);
+    CuAssertIntEquals(tc, 0, remove("test.dat"));
+}
+
+CuSuite *get_gamedata_suite(void)
+{
+    CuSuite *suite = CuSuiteNew();
+    SUITE_ADD_TEST(suite, test_gamedata);
+    return suite;
+}
diff --git a/src/util/password.c b/src/util/password.c
index 271cedf6d..c7850eec8 100644
--- a/src/util/password.c
+++ b/src/util/password.c
@@ -2,7 +2,9 @@
 #include "password.h"
 
 #include <md5.h>
+#include <crypt_blowfish.h>
 #include <mtrand.h>
+#include <drepper.h>
 
 #include <assert.h>
 #include <string.h>
@@ -25,73 +27,104 @@
   } while (0)
 
 
-char *password_gensalt(void) {
-    static char salt[SALTLEN + 1];
+char *password_gensalt(char *salt, size_t salt_len) {
+    size_t buflen = salt_len-1;
     char *cp = salt;
-    int buflen = SALTLEN;
     while (buflen) {
         unsigned long ul = genrand_int32() & (unsigned long)time(0);
-        b64_from_24bit((char)(ul & 0xFF), (char)((ul>>8)&0xff), (char)((ul>>16)&0xFF), 4);
+        b64_from_24bit((char)(ul & 0xFF), (char)((ul >> 8) & 0xff), (char)((ul >> 16) & 0xFF), 4);
     }
-    salt[SALTLEN] = 0;
+    salt[salt_len-1] = 0;
     return salt;
 }
 
-static const char * password_hash_i(const char * passwd, const char *salt, int algo, char *result, size_t len) {
-    assert(passwd);
-    if (!salt) {
-        salt = password_gensalt();
-    }
-    if (algo==PASSWORD_PLAIN) {
-        _snprintf(result, len, "$0$%s$%s", salt, passwd);
-    }
-    else if (algo == PASSWORD_MD5) {
-        return md5_crypt_r(passwd, salt, result, len);
-    }
-    else if (algo == PASSWORD_APACHE_MD5) {
-        apr_md5_encode(passwd, salt, result, len);
+static bool password_is_implemented(int algo) {
+    return algo == PASSWORD_PLAINTEXT || algo == PASSWORD_BCRYPT || algo == PASSWORD_NOCRYPT || algo == PASSWORD_MD5 || algo == PASSWORD_APACHE_MD5;
+}
+
+static const char * password_hash_i(const char * passwd, const char *input, int algo, char *result, size_t len) {
+    if (algo == PASSWORD_BCRYPT) {
+        char salt[MAXSALTLEN];
+        char setting[40];
+        if (!input) {
+            input = password_gensalt(salt, MAXSALTLEN);
+        }
+        if (_crypt_gensalt_blowfish_rn("$2y$", 5, input, strlen(input), setting, sizeof(setting)) == NULL) {
+            return NULL;
+        }
+        if (_crypt_blowfish_rn(passwd, setting, result, len) == NULL) {
+            return NULL;
+        }
         return result;
     }
-    else {
-        return NULL;
+    else if (algo == PASSWORD_PLAINTEXT) {
+        _snprintf(result, len, "%s", passwd);
+        return result;
     }
-    return result;
+    else if (algo == PASSWORD_NOCRYPT) {
+        _snprintf(result, len, "$0$%s", passwd);
+        return result;
+    }
+    else if (password_is_implemented(algo)) {
+        char salt[MAXSALTLEN];
+        assert(passwd);
+        if (input) {
+            const char * dol = strchr(input, '$');
+            size_t salt_len;
+            if (dol) {
+                assert(dol > input && dol[0] == '$');
+                salt_len = dol - input;
+            }
+            else {
+                salt_len = strlen(input);
+            }
+            assert(salt_len < MAXSALTLEN);
+            memcpy(salt, input, salt_len);
+            salt[salt_len] = 0;
+        } else {
+            input = password_gensalt(salt, sizeof(salt));
+        }
+        if (algo == PASSWORD_MD5) {
+            return md5_crypt_r(passwd, input, result, len);
+        }
+        else if (algo == PASSWORD_APACHE_MD5) {
+            apr_md5_encode(passwd, input, result, len);
+            return result;
+        }
+    }
+    return NULL;
 }
 
-const char * password_hash(const char * passwd, const char * salt, int algo) {
+const char * password_encode(const char * passwd, int algo) {
     static char result[64]; // TODO: static result buffers are bad mojo!
     if (algo < 0) algo = PASSWORD_DEFAULT;
-    return password_hash_i(passwd, salt, algo, result, sizeof(result));
-}
-
-static bool password_is_implemented(int algo) {
-    return algo==PASSWORD_PLAIN || algo==PASSWORD_MD5 || algo==PASSWORD_APACHE_MD5;
+    return password_hash_i(passwd, 0, algo, result, sizeof(result));
 }
 
 int password_verify(const char * pwhash, const char * passwd) {
-    char salt[MAXSALTLEN+1];
     char hash[64];
-    size_t len;
-    int algo;
+    int algo = PASSWORD_PLAINTEXT;
     char *pos;
-    const char *dol, *result;
+    const char *result;
     assert(passwd);
     assert(pwhash);
-    assert(pwhash[0] == '$');
-    algo = pwhash[1];
-    pos = strchr(pwhash+2, '$');
-    assert(pos && pos[0] == '$');
-    ++pos;
-    dol = strchr(pos, '$');
-    assert(dol>pos && dol[0] == '$');
-    len = dol - pos;
-    assert(len <= MAXSALTLEN);
-    strncpy(salt, pos, len);
-    salt[len] = 0;
-    result = password_hash_i(passwd, salt, algo, hash, sizeof(hash));
+    if (pwhash[0] == '$') {
+        algo = pwhash[1];
+    }
     if (!password_is_implemented(algo)) {
         return VERIFY_UNKNOWN;
     }
+    if (algo == PASSWORD_PLAINTEXT) {
+        return (strcmp(passwd, pwhash) == 0) ? VERIFY_OK : VERIFY_FAIL;
+    } else if (algo == PASSWORD_BCRYPT) {
+        char sample[200];
+        _crypt_blowfish_rn(passwd, pwhash, sample, sizeof(sample));
+        return (strcmp(sample, pwhash) == 0) ? VERIFY_OK : VERIFY_FAIL;
+    }
+    pos = strchr(pwhash+2, '$');
+    assert(pos && pos[0] == '$');
+    pos = strchr(pos, '$')+1;
+    result = password_hash_i(passwd, pos, algo, hash, sizeof(hash));
     if (strcmp(pwhash, result) == 0) {
         return VERIFY_OK;
     }
diff --git a/src/util/password.h b/src/util/password.h
index 0bdd9d4ff..fe84716d7 100644
--- a/src/util/password.h
+++ b/src/util/password.h
@@ -1,15 +1,16 @@
 #pragma once
 
-#define PASSWORD_PLAIN  '0'
+#define PASSWORD_PLAINTEXT 0
+#define PASSWORD_NOCRYPT '0'
 #define PASSWORD_MD5 '1'
 #define PASSWORD_BCRYPT '2' // not implemented
 #define PASSWORD_APACHE_MD5 'a'
 #define PASSWORD_SHA256 '5' // not implemented
 #define PASSWORD_SHA512 '6' // not implemented
-#define PASSWORD_DEFAULT PASSWORD_APACHE_MD5
+#define PASSWORD_DEFAULT PASSWORD_PLAINTEXT
 
 #define VERIFY_OK 0 // password matches hash
 #define VERIFY_FAIL 1 // password is wrong
 #define VERIFY_UNKNOWN 2 // hashing algorithm not supported
 int password_verify(const char *hash, const char *passwd);
-const char * password_hash(const char *passwd, const char *salt, int algo);
+const char * password_encode(const char *passwd, int algo);
diff --git a/src/util/password.test.c b/src/util/password.test.c
index b4f4005da..3df2d2ed8 100644
--- a/src/util/password.test.c
+++ b/src/util/password.test.c
@@ -1,25 +1,43 @@
 #include <platform.h>
-#include <CuTest.h>
 #include "password.h"
+#include <CuTest.h>
+#include <string.h>
 
 static void test_passwords(CuTest *tc) {
-    const char *hash;
+    const char *hash, *expect;
 
-    hash = password_hash("Hodor", "FqQLkl8g", PASSWORD_APACHE_MD5);
+    expect = "$apr1$FqQLkl8g$.icQqaDJpim4BVy.Ho5660";
+    CuAssertIntEquals(tc, VERIFY_OK, password_verify(expect, "Hodor"));
+    hash = password_encode("Hodor", PASSWORD_APACHE_MD5);
     CuAssertPtrNotNull(tc, hash);
-    CuAssertStrEquals(tc, "$apr1$FqQLkl8g$.icQqaDJpim4BVy.Ho5660", hash);
-    CuAssertIntEquals(tc, VERIFY_OK, password_verify(hash, "Hodor"));
+    CuAssertIntEquals(tc, 0, strncmp(hash, expect, 6));
 
-    hash = password_hash("jollygood", "ZouUn04i", PASSWORD_MD5);
+    expect = "$1$ZouUn04i$yNnT1Oy8azJ5V.UM9ppP5/";
+    CuAssertIntEquals(tc, VERIFY_OK, password_verify(expect, "jollygood"));
+    hash = password_encode("jollygood", PASSWORD_MD5);
     CuAssertPtrNotNull(tc, hash);
-    CuAssertStrEquals(tc, "$1$ZouUn04i$yNnT1Oy8azJ5V.UM9ppP5/", hash);
-    CuAssertIntEquals(tc, VERIFY_OK, password_verify(hash, "jollygood"));
+    CuAssertIntEquals(tc, 0, strncmp(hash, expect, 3));
 
-    hash = password_hash("password", "hodor", PASSWORD_PLAIN);
+    expect = "password";
+    hash = password_encode("password", PASSWORD_PLAINTEXT);
     CuAssertPtrNotNull(tc, hash);
-    CuAssertStrEquals(tc, "$0$hodor$password", hash);
-    CuAssertIntEquals(tc, VERIFY_OK, password_verify(hash, "password"));
-    CuAssertIntEquals(tc, VERIFY_FAIL, password_verify(hash, "arseword"));
+    CuAssertStrEquals(tc, hash, expect);
+    CuAssertIntEquals(tc, VERIFY_OK, password_verify(expect, "password"));
+    CuAssertIntEquals(tc, VERIFY_FAIL, password_verify(expect, "arseword"));
+
+    expect = "$0$password";
+    hash = password_encode("password", PASSWORD_NOCRYPT);
+    CuAssertPtrNotNull(tc, hash);
+    CuAssertStrEquals(tc, hash, expect);
+    CuAssertIntEquals(tc, VERIFY_OK, password_verify(expect, "password"));
+    CuAssertIntEquals(tc, VERIFY_FAIL, password_verify(expect, "arseword"));
+
+    expect = "$2y$05$RJ8qAhu.foXyJLdc2eHTLOaK4MDYn3/v4HtOVCq0Plv2yxcrEB7Wm";
+    CuAssertIntEquals(tc, VERIFY_OK, password_verify(expect, "Hodor"));
+    hash = password_encode("Hodor", PASSWORD_BCRYPT);
+    CuAssertPtrNotNull(tc, hash);
+    CuAssertIntEquals(tc, 0, strncmp(hash, expect, 7));
+
     CuAssertIntEquals(tc, VERIFY_UNKNOWN, password_verify("$9$saltyfish$password", "password"));
 }
 
diff --git a/tests/write-reports.sh b/tests/write-reports.sh
index c87059854..2183b17dd 100755
--- a/tests/write-reports.sh
+++ b/tests/write-reports.sh
@@ -25,7 +25,7 @@ TESTS=../Debug/eressea/test_eressea
 SERVER=../Debug/eressea/eressea
 if [ -n "$VALGRIND" ]; then
 SUPP=../share/ubuntu-12_04.supp
-VALGRIND="$VALGRIND --suppressions=$SUPP --error-exitcode=1 --leak-check=no"
+VALGRIND="$VALGRIND --track-origins=yes --gen-suppressions=all --suppressions=$SUPP --error-exitcode=1 --leak-check=no"
 fi
 echo "running $TESTS"
 $VALGRIND $TESTS