diff --git a/cake/libs/config/ini_reader.php b/cake/libs/config/ini_reader.php
index 7163a47b5..e901d4e18 100644
--- a/cake/libs/config/ini_reader.php
+++ b/cake/libs/config/ini_reader.php
@@ -13,7 +13,7 @@
  * @copyright     Copyright 2005-2010, Cake Software Foundation, Inc. (http://cakefoundation.org)
  * @link          http://cakephp.org CakePHP(tm) Project
  * @package       cake
- * @subpackage    cake.cake.libs.controller.components
+ * @subpackage    cake.libs.config
  * @since         CakePHP(tm) v 2.0
  * @license       MIT License (http://www.opensource.org/licenses/mit-license.php)
  */
@@ -23,6 +23,16 @@
  * you should be aware that this class shares the same behavior, especially with
  * regards to boolean and null values.
  *
+ * In addition to the native parse_ini_file features, IniReader also allows you
+ * to create nested array structures through usage of . delimited names.  This allows
+ * you to create nested arrays structures in an ini config file. For example:
+ *
+ * `db.password = secret` would turn into `array('db' => array('password' => 'secret'))`
+ * 
+ * You can nest properties as deeply as needed using .'s.  IniReader also manipulates
+ * how the special ini values of 'yes', 'no', 'on', 'off', 'null' are handled.
+ * These values will be converted to their boolean equivalents.
+ *
  * @package cake.config
  * @see http://php.net/parse_ini_file
  */
@@ -64,9 +74,35 @@ class IniReader implements ConfigReaderInterface {
 		$filename = $this->_path . $file;
 		$contents = parse_ini_file($filename, true);
 		if (!empty($this->_section) && isset($contents[$this->_section])) {
-			$values = $contents[$this->_section];
+			$values = $this->_parseNestedValues($contents[$this->_section]);
 		} else {
-			$values = $contents;
+			$values = array();
+			foreach ($contents as $section => $attribs) {
+				$values[$section] = $this->_parseNestedValues($attribs);
+			}
+		}
+		return $values;
+	}
+
+/**
+ * parses nested values out of keys.
+ *
+ * @param array $values Values to be exploded.
+ * @return array Array of values exploded
+ */
+	protected function _parseNestedValues($values) {
+		foreach ($values as $key => $value) {
+			if ($value === '1') {
+				$value = true;
+			}
+			if ($value === '') {
+				$value = false;
+			}
+			if (strpos($key, '.') !== false) {
+				$values = Set::insert($values, $key, $value);
+			} else {
+				$values[$key] = $value;
+			}
 		}
 		return $values;
 	}
diff --git a/cake/tests/cases/libs/config/ini_reader.test.php b/cake/tests/cases/libs/config/ini_reader.test.php
index c3da7edf0..ef397dece 100644
--- a/cake/tests/cases/libs/config/ini_reader.test.php
+++ b/cake/tests/cases/libs/config/ini_reader.test.php
@@ -65,4 +65,32 @@ class IniReaderTest extends CakeTestCase {
 		$this->assertEquals('administrators', $config['groups']);
 	}
 
+/**
+ * test that names with .'s get exploded into arrays.
+ *
+ * @return void
+ */
+	function testReadingValuesWithDots() {
+		$reader = new IniReader($this->path);
+		$config = $reader->read('nested.ini');
+
+		$this->assertTrue(isset($config['database']['db']['username']));
+		$this->assertEquals('mark', $config['database']['db']['username']);
+		$this->assertEquals(3, $config['nesting']['one']['two']['three']);
+	}
+
+/**
+ * test boolean reading
+ *
+ * @return void
+ */
+	function testBooleanReading() {
+		$reader = new IniReader($this->path);
+		$config = $reader->read('nested.ini');
+		
+		$this->assertTrue($config['bools']['test_on']);
+		$this->assertTrue($config['bools']['test_yes']);
+		$this->assertFalse($config['bools']['test_no']);
+		$this->assertFalse($config['bools']['test_off']);
+	}
 }
\ No newline at end of file