diff --git a/cmd/geth/main.go b/cmd/geth/main.go
index d7d4a79eee..a464633af6 100644
--- a/cmd/geth/main.go
+++ b/cmd/geth/main.go
@@ -318,6 +318,7 @@ JavaScript API. See https://github.com/ethereum/go-ethereum/wiki/Javascipt-Conso
 		utils.WhisperEnabledFlag,
 		utils.SwarmConfigPathFlag,
 		utils.SwarmSwapDisabled,
+		utils.SwarmSyncDisabled,
 		utils.SwarmPortFlag,
 		utils.SwarmAccountAddrFlag,
 		utils.ChequebookAddrFlag,
diff --git a/cmd/utils/flags.go b/cmd/utils/flags.go
index c961b5fe1b..6eae3cd037 100644
--- a/cmd/utils/flags.go
+++ b/cmd/utils/flags.go
@@ -357,6 +357,10 @@ var (
 		Name:  "bzznoswap",
 		Usage: "Swarm SWAP disabled (false)",
 	}
+	SwarmSyncDisabled = cli.BoolFlag{
+		Name:  "bzznosync",
+		Usage: "Swarm Syncing disabled (false)",
+	}
 	// ATM the url is left to the user and deployment to
 	JSpathFlag = cli.StringFlag{
 		Name:  "jspath",
@@ -788,9 +792,10 @@ func MakeSystemNode(name, version string, extra []byte, ctx *cli.Context) *node.
 		if len(bzzport) > 0 {
 			bzzconfig.Port = bzzport
 		}
-		swap := ctx.GlobalBool(SwarmSwapDisabled.Name)
+		swapEnabled := !ctx.GlobalBool(SwarmSwapDisabled.Name)
+		syncEnabled := !ctx.GlobalBool(SwarmSyncDisabled.Name)
 		if err := stack.Register(func(ctx *node.ServiceContext) (node.Service, error) {
-			return swarm.NewSwarm(ctx, bzzconfig, swap)
+			return swarm.NewSwarm(ctx, bzzconfig, swapEnabled, syncEnabled)
 		}); err != nil {
 			Fatalf("Failed to register the Swarm service: %v", err)
 		}
diff --git a/common/chequebook/api.go b/common/chequebook/api.go
index 5507682530..ee53bb0749 100644
--- a/common/chequebook/api.go
+++ b/common/chequebook/api.go
@@ -1,6 +1,7 @@
 package chequebook
 
 import (
+	"errors"
 	"math/big"
 
 	"github.com/ethereum/go-ethereum/common"
@@ -8,22 +9,44 @@ import (
 
 const Version = "1.0"
 
+var errNoChequebook = errors.New("no chequebook")
+
 type Api struct {
-	ch *Chequebook
+	chequebookf func() *Chequebook
 }
 
-func NewApi(ch *Chequebook) *Api {
+func NewApi(ch func() *Chequebook) *Api {
 	return &Api{ch}
 }
 
+func (self *Api) Balance() (string, error) {
+	ch := self.chequebookf()
+	if ch == nil {
+		return "", errNoChequebook
+	}
+	return ch.Balance().String(), nil
+}
+
 func (self *Api) Issue(beneficiary common.Address, amount *big.Int) (cheque *Cheque, err error) {
-	return self.ch.Issue(beneficiary, amount)
+	ch := self.chequebookf()
+	if ch == nil {
+		return nil, errNoChequebook
+	}
+	return ch.Issue(beneficiary, amount)
 }
 
 func (self *Api) Cash(cheque *Cheque) (txhash string, err error) {
-	return self.ch.Cash(cheque)
+	ch := self.chequebookf()
+	if ch == nil {
+		return "", errNoChequebook
+	}
+	return ch.Cash(cheque)
 }
 
 func (self *Api) Deposit(amount *big.Int) (txhash string, err error) {
-	return self.ch.Deposit(amount)
+	ch := self.chequebookf()
+	if ch == nil {
+		return "", errNoChequebook
+	}
+	return ch.Deposit(amount)
 }
diff --git a/common/chequebook/cheque.go b/common/chequebook/cheque.go
index 41c89418b0..81d4b8eaa1 100644
--- a/common/chequebook/cheque.go
+++ b/common/chequebook/cheque.go
@@ -54,6 +54,7 @@ type Backend interface {
 	Call(fromStr, toStr, valueStr, gasStr, gasPriceStr, codeStr string) (string, string, error)
 	GetTxReceipt(txhash common.Hash) *types.Receipt
 	CodeAt(address string) string
+	BalanceAt(address common.Address) string
 }
 
 // rlp serialised cheque model for use with the chequebook
@@ -165,13 +166,25 @@ func NewChequebook(path string, contract common.Address, prvKey *ecdsa.PrivateKe
 		owner:    owner,
 	}
 	if (contract != common.Address{}) {
-		glog.V(logger.Detail).Infof("[CHEQUEBOOK] new chequebook initialised from %v (owner: %v)", contract.Hex(), owner.Hex())
+		err = self.setBalanceFromBlockChain()
+		if err != nil {
+			return nil, err
+		}
+		glog.V(logger.Detail).Infof("[CHEQUEBOOK] new chequebook initialised from %v (owner: %v, balance: %s)", contract.Hex(), owner.Hex(), self.balance.String())
 	}
 	return
 }
 
+func (self *Chequebook) setBalanceFromBlockChain() error {
+	balanceString := self.backend.BalanceAt(self.contract)
+	if _, ok := self.balance.SetString(balanceString, 10); !ok {
+		return fmt.Errorf("Incorrect balance: %s", balanceString)
+	}
+	return nil
+}
+
 // LoadChequebook(path, prvKey, backend) loads a chequebook from disk (file path)
-func LoadChequebook(path string, prvKey *ecdsa.PrivateKey, backend Backend) (self *Chequebook, err error) {
+func LoadChequebook(path string, prvKey *ecdsa.PrivateKey, backend Backend, checkBalance bool) (self *Chequebook, err error) {
 	var data []byte
 	data, err = ioutil.ReadFile(path)
 	if err != nil {
@@ -184,7 +197,14 @@ func LoadChequebook(path string, prvKey *ecdsa.PrivateKey, backend Backend) (sel
 	if err != nil {
 		return nil, err
 	}
-	glog.V(logger.Detail).Infof("[CHEQUEBOOK] loaded chequebook (%s, owner: %v) initialised from %v", self.contract.Hex(), self.owner.Hex(), path)
+	if checkBalance {
+		err = self.setBalanceFromBlockChain()
+		if err != nil {
+			return nil, err
+		}
+	}
+
+	glog.V(logger.Detail).Infof("[CHEQUEBOOK] loaded chequebook (%s, owner: %v, balance: %v) initialised from %v", self.contract.Hex(), self.owner.Hex(), self.balance, path)
 
 	return
 }
diff --git a/common/chequebook/cheque_test.go b/common/chequebook/cheque_test.go
index 06d95ff380..ed4b3d42ff 100644
--- a/common/chequebook/cheque_test.go
+++ b/common/chequebook/cheque_test.go
@@ -45,6 +45,10 @@ func (b *testBackend) CodeAt(address string) string {
 	return ""
 }
 
+func (b *testBackend) BalanceAt(address common.Address) string {
+	return "0"
+}
+
 func genAddr() common.Address {
 	prvKey, _ := crypto.GenerateKey()
 	return crypto.PubkeyToAddress(prvKey.PublicKey)
@@ -54,21 +58,21 @@ func TestIssueAndReceive(t *testing.T) {
 	prvKey, _ := crypto.GenerateKey()
 	sender := genAddr()
 	path := "/tmp/checkbook.json"
-	chbook, err := NewChequebook(path, sender, prvKey, nil)
+	chbook, err := NewChequebook(path, sender, prvKey, newTestBackend())
 	if err != nil {
-		t.Errorf("expected no error, got %v", err)
+		t.Fatalf("expected no error, got %v", err)
 	}
 	recipient := genAddr()
 	chbook.sent[recipient] = new(big.Int).SetUint64(42)
 	amount := common.Big1
 	ch, err := chbook.Issue(recipient, amount)
 	if err == nil {
-		t.Errorf("expected insufficient funds error, got none")
+		t.Fatalf("expected insufficient funds error, got none")
 	}
 
 	chbook.balance = new(big.Int).Set(common.Big1)
 	if chbook.Balance().Cmp(common.Big1) != 0 {
-		t.Errorf("expected: %v, got %v", "0", chbook.Balance())
+		t.Fatalf("expected: %v, got %v", "0", chbook.Balance())
 	}
 
 	ch, err = chbook.Issue(recipient, amount)
@@ -102,9 +106,9 @@ func TestCheckbookFile(t *testing.T) {
 	prvKey, _ := crypto.GenerateKey()
 	sender := genAddr()
 	path := "/tmp/checkbook.json"
-	chbook, err := NewChequebook(path, sender, prvKey, nil)
+	chbook, err := NewChequebook(path, sender, prvKey, newTestBackend())
 	if err != nil {
-		t.Errorf("expected no error, got %v", err)
+		t.Fatalf("expected no error, got %v", err)
 	}
 	recipient := genAddr()
 	chbook.sent[recipient] = new(big.Int).SetUint64(42)
@@ -112,7 +116,7 @@ func TestCheckbookFile(t *testing.T) {
 
 	chbook.Save()
 
-	chbook, err = LoadChequebook(path, prvKey, nil)
+	chbook, err = LoadChequebook(path, prvKey, newTestBackend(), false)
 	if err != nil {
 		t.Fatalf("expected no error, got %v", err)
 	}
@@ -139,12 +143,12 @@ func TestVerifyErrors(t *testing.T) {
 	sender0 := genAddr()
 	sender1 := genAddr()
 	path0 := "/tmp/checkbook0.json"
-	chbook0, err := NewChequebook(path0, sender0, prvKey, nil)
+	chbook0, err := NewChequebook(path0, sender0, prvKey, newTestBackend())
 	if err != nil {
 		t.Errorf("expected no error, got %v", err)
 	}
 	path1 := "/tmp/checkbook1.json"
-	chbook1, err := NewChequebook(path1, sender1, prvKey, nil)
+	chbook1, err := NewChequebook(path1, sender1, prvKey, newTestBackend())
 	if err != nil {
 		t.Errorf("expected no error, got %v", err)
 	}
@@ -179,7 +183,7 @@ func TestVerifyErrors(t *testing.T) {
 	}
 
 	received, err = chbox.Receive(ch1)
-	t.Log(err)
+	t.Logf("correct error: %v", err)
 	if err == nil {
 		t.Fatalf("expected receiver error, got none")
 	}
@@ -189,19 +193,19 @@ func TestVerifyErrors(t *testing.T) {
 		t.Fatalf("expected no error, got %v", err)
 	}
 	received, err = chbox.Receive(ch2)
-	t.Log(err)
+	t.Logf("correct error: %v", err)
 	if err == nil {
 		t.Fatalf("expected sender error, got none")
 	}
 
 	_, err = chbook1.Issue(recipient0, new(big.Int).SetInt64(-1))
-	t.Log(err)
+	t.Logf("correct error: %v", err)
 	if err == nil {
 		t.Fatalf("expected incorrect amount error, got none")
 	}
 
 	received, err = chbox.Receive(ch0)
-	t.Log(err)
+	t.Logf("correct error: %v", err)
 	if err == nil {
 		t.Fatalf("expected incorrect amount error, got none")
 	}
@@ -365,7 +369,7 @@ func TestCash(t *testing.T) {
 	prvKey, _ := crypto.GenerateKey()
 	sender := genAddr()
 	path := "/tmp/checkbook.json"
-	chbook, err := NewChequebook(path, sender, prvKey, nil)
+	chbook, err := NewChequebook(path, sender, prvKey, newTestBackend())
 	if err != nil {
 		t.Errorf("expected no error, got %v", err)
 	}
diff --git a/rpc/javascript.go b/rpc/javascript.go
index c3f892d6f2..61a3ebda7a 100644
--- a/rpc/javascript.go
+++ b/rpc/javascript.go
@@ -527,6 +527,18 @@ web3._extend({
 			params: 1,
 			inputFormatter: [null]
 		}),
+		new web3._extend.Method({
+			name: 'syncEnabled',
+			call: 'bzz_syncEnabled',
+			params: 1,
+			inputFormatter: [null]
+		}),
+		new web3._extend.Method({
+			name: 'swapEnabled',
+			call: 'bzz_swapEnabled',
+			params: 1,
+			inputFormatter: [null]
+		}),
 		new web3._extend.Method({
 			name: 'resolve',
 			call: 'bzz_resolve',
@@ -580,12 +592,11 @@ web3._extend({
       params: 1,
       inputFormatter: [null]
     }),
-    new web3._extend.Method({
-      name: 'info',
-      call: 'chequebook_info',
-      params: 1,
-      inputFormatter: [null]
-    }),
+    new web3._extend.Property({
+			name: 'balance',
+			getter: 'chequebook_balance',
+				outputFormatter: web3._extend.utils.toDecimal
+		}),
     new web3._extend.Method({
       name: 'cash',
       call: 'chequebook_cash',
diff --git a/swarm/api/ethereum.go b/swarm/api/ethereum.go
index 1027d1e768..16032c8c4c 100644
--- a/swarm/api/ethereum.go
+++ b/swarm/api/ethereum.go
@@ -56,7 +56,7 @@ func NewEthApi(ethereum *eth.Ethereum) *ethApi {
 // Note: this is not threadsafe, only called in JS single process and tests
 func (self *ethApi) UpdateState() (wait chan *big.Int) {
 	wait = make(chan *big.Int)
-	self.state, _ = state.New(self.eth.BlockChain().GetBlockByNumber(0).Root(), self.eth.ChainDb())
+	self.state, _ = state.New(self.eth.BlockChain().CurrentBlock().Root(), self.eth.ChainDb())
 
 	go func() {
 		eventSub := self.eth.EventMux().Subscribe(core.ChainHeadEvent{})
@@ -130,6 +130,10 @@ func (self *ethApi) StorageAt(addr, storageAddr string) string {
 	return self.state.GetState(common.HexToAddress(addr), common.HexToHash(storageAddr)).Hex()
 }
 
+func (self *ethApi) BalanceAt(address common.Address) string {
+	return self.state.GetBalance(address).String()
+}
+
 func (self *ethApi) CodeAt(address string) string {
 	return common.ToHex(self.state.GetCode(common.HexToAddress(address)))
 }
diff --git a/swarm/api/testapi.go b/swarm/api/testapi.go
index 06cbd6d83a..339b623089 100644
--- a/swarm/api/testapi.go
+++ b/swarm/api/testapi.go
@@ -16,5 +16,13 @@ func NewControl(api *Api, hive *network.Hive) *Control {
 }
 
 func (self *Control) BlockNetworkRead(on bool) {
-	self.hive.BlockNetworkRead(true)
+	self.hive.BlockNetworkRead(on)
+}
+
+func (self *Control) SyncEnabled(on bool) {
+	self.hive.SyncEnabled(on)
+}
+
+func (self *Control) SwapEnabled(on bool) {
+	self.hive.SwapEnabled(on)
 }
diff --git a/swarm/cmd/swarm/gethup.sh b/swarm/cmd/swarm/gethup.sh
index 01418f4b75..ab163db323 100644
--- a/swarm/cmd/swarm/gethup.sh
+++ b/swarm/cmd/swarm/gethup.sh
@@ -13,6 +13,8 @@ shift
 # created to the latest, so that monitoring be easier with the same filename
 # TODO: use this if GETH not set
 # GETH=geth
+echo "ls -l $GETH"
+ls -l $GETH
 
 # geth CLI params       e.g., (dd=04, run=09)
 datetag=`date "+%c%y%m%d-%H%M%S"|cut -d ' ' -f 5`
@@ -21,37 +23,46 @@ log=$root/log/$id.$datetag.log     # /tmp/eth/04.09.log
 linklog=$root/log/$id.current.log     # /tmp/eth/04.09.log
 stablelog=$root/log/$id.log     # /tmp/eth/04.09.log
 password=$id            # 04
-port=345$id              # 34504
-bzzport=622$id              # 62204
-rpcport=62$id            # 6204
+port=303$id              # 34504
+bzzport=322$id              # 32204
+rpcport=32$id            # 3204
 
 mkdir -p $root/data
+mkdir -p $root/enodes
+mkdir -p $root/pids
 mkdir -p $root/log
 ln -sf "$log" "$linklog"
 # if we do not have an account, create one
 # will not prompt for password, we use the double digit instance id as passwd
 # NEVER EVER USE THESE ACCOUNTS FOR INTERACTING WITH A LIVE CHAIN
-if [ ! -d "$root/keystore/$id" ]; then
-  # echo "create an account with password $id"
-  # echo "create an account with password $id [DO NOT EVER USE THIS ON LIVE]"
-  mkdir -p $root/keystore/$id
+keystoredir="$datadir/keystore/"
+echo "KeyStore dir: $keystoredir"
+if [ ! -d "$keystoredir" ]; then
+  echo "create an account with password $id [DO NOT EVER USE THIS ON LIVE]"
+  # mkdir -p $datadir/keystore
   $GETH --datadir $datadir --password <(echo -n $id) account new >/dev/null 2>&1
-# create account with password 00, 01, ...
+      # create account with password 00, 01, ...
   # note that the account key will be stored also separately outside
   # datadir
   # this way you can safely clear the data directory and still keep your key
   # under `<rootdir>/keystore/dd
-
-  cp -R "$datadir/keystore" $root/keystore/$id
+  # LS=`ls $datadir/keystore`
+  # echo $LS
+  while [ ! -d "$keystoredir" ]; do
+    echo "."
+    ((i++))
+    if ((i>10)); then break; fi
+    sleep 1
+  done
+  echo "copying keys $datadir/keystore $root/keystore/$id"
+  mkdir -p $root/keystore/$id
+  cp -R "$datadir/keystore/" $root/keystore/$id
 fi
 
-# echo "copying keys $root/keystore/$id $datadir/keystore"
-# ls $root/keystore/$id/keystore/ $datadir/keystore
-
-# mkdir -p $datadir/keystore
+# # mkdir -p $datadir/keystore
 # if [ ! -d "$datadir/keystore" ]; then
-# echo "copying keys $root/keystore/$id $datadir/keystore"
-cp -R $root/keystore/$id/keystore/ $datadir/keystore/
+#   echo "copying keys $root/keystore/$id $datadir/keystore"
+#   cp -R $root/keystore/$id/keystore/ $datadir/keystore/
 # fi
 
 
@@ -63,10 +74,10 @@ else
   pattern='\[\:\:\]'
 fi
 
-# echo -n "enode for instance $id...  "
+geth="$GETH --datadir $datadir --port $port"
 
+# echo -n "enode for instance $id...  "
 if [ ! "$GETH" = "" ] && [ ! -f $root/enodes/$id.enode ]; then
-  geth="$GETH --datadir $root/data/$id --port $port"
   cmd="$geth js <(echo 'console.log(admin.nodeInfo.enode); exit();') "
   # echo $cmd '2>/dev/null |grep enode | perl -pe "s/'$pattern'/'$ip_addr'/g" | perl -pe "s/^/\"/; s/\s*$/\"/;" > '$root/enodes/$id.enode
   eval $cmd 2>/dev/null |grep enode | perl -pe "s/$pattern/$ip_addr/g" | perl -pe "s/^/\"/; s/\s*\$/\"/;" > $root/enodes/$id.enode
@@ -86,17 +97,17 @@ if [ ! -f $root/pids/$id.pid ]; then
   # - listening on port 303dd, (like 30300, 30301, ...)
   # - with the account unlocked
   # - launching json-rpc server on port 81dd (like 8100, 8101, 8102, ...)
-  BZZKEY=`$GETH --datadir=$datadir account list|head -n1|perl -ne '/([a-f0-9]{40})/ && print $1'`
+  # echo "BZZKEY=$geth account list|head -n1|perl -ne '/([a-f0-9]{40})/ && print \$1'"
+  BZZKEY=`$geth account list|head -n1|perl -ne '/([a-f0-9]{40})/ && print \$1'`
   echo -n "starting instance $id ($BZZKEY @ $datadir )..."
-  # echo "$GETH --datadir=$datadir \
-  #   --identity=$id \
-  #   --bzzaccount=$BZZKEY --bzzport=$bzzport \
-  #   --port=$port \
-  #   --unlock=$BZZKEY \
-  #   --password=<(echo -n $id) \
-  #   --rpc --rpcport=$rpcport --rpccorsdomain='*' $* \
-  #   2>&1 | tee "$stablelog" > "$log" &  # comment out if you pipe it to a tty etc.
-  # " >&2
+  echo "$geth \
+    --identity=$id \
+    --bzzaccount=$BZZKEY --bzzport=$bzzport \
+    --unlock=$BZZKEY \
+    --password=<(echo -n $id) \
+    --rpc --rpcport=$rpcport --rpccorsdomain='*' $* \
+    2>&1 | tee "$stablelog" > "$log" &  # comment out if you pipe it to a tty etc.
+  " >&2
 
   if [ -f $log ] && [ -f $root/stablelog ]; then
     cp $stablelog `cat $root/prevlog`
@@ -118,6 +129,7 @@ if [ ! -f $root/pids/$id.pid ]; then
   # echo $pid > $root/pids/$id.pid
   #echo $! > $root/pids/$id.pid
   while true; do
+    # echo $GETH --ipcpath=$datadir/geth.ipc --exec="net" attach
     $GETH --ipcpath=$datadir/geth.ipc --exec="net" attach > /dev/null 2>&1 && break
     sleep 1
     echo -n "."
diff --git a/swarm/cmd/swarm/netstatconf.sh b/swarm/cmd/swarm/netstatconf.sh
index 131c033a26..82657cc900 100644
--- a/swarm/cmd/swarm/netstatconf.sh
+++ b/swarm/cmd/swarm/netstatconf.sh
@@ -1,8 +1,8 @@
 # !/bin/bash
-# bash intelligence <destination_app_json_path> <number_of_nodes> <name_prefix> <ws_server> <ws_secret>
+# bash netstatconf.sh <number_of_nodes> <name_prefix> <ws_server> <ws_secret>
 
 # sets up a eth-net-intelligence app.json for a local ethereum network cluster of nodes
-# - <number_of_clusters> is the number of clusters
+# - <number_of_nodes> is the number of nodes in the cluster
 # - <name_prefix> is a prefix for the node names as will appear in the listing
 # - <ws_server> is the eth-netstats server
 # - <ws_secret> is the eth-netstats secret
diff --git a/swarm/cmd/swarm/swarm.sh b/swarm/cmd/swarm/swarm.sh
index d4a732d0d6..116fa7da23 100644
--- a/swarm/cmd/swarm/swarm.sh
+++ b/swarm/cmd/swarm/swarm.sh
@@ -37,31 +37,8 @@ shift
 # ip_addr=`curl ipecho.net/plain 2>/dev/null;echo `
 
 # echo "external IP: $ip_addr"
-swarmoptions='--vmdebug=false --maxpeers=20 --dev --shh=false --nodiscover --ipcexp'
-
-
-function needs {
-  id=$1
-  keyfile=$2
-  target=$3
-  dir=`dirname $3`
-  dest=$dir/down
-  mkdir -p $dest
-  file=$dest/`basename $target`
-  rm -f $file
-  echo -n "download to '$file'...waiting for root hash in '$keyfile'..."
-  while true; do
-   if [ -f $keyfile ] && [ ! -z $keyfile ]; then
-    break
-   fi
-   sleep 1
-   echo -n "."
-  done
-  key=`cat $keyfile`
-  echo " => $key"
-  download $id $key $dest && cmp --silent $file $target && echo "PASS" || echo "FAIL"
-  # && ls -l $keyfile $file $target
-}
+swarmoptions='--vmdebug=false --maxpeers=20 --dev --shh=false --nodiscover'
+tmpdir=/tmp
 
 function attach {
   id=$1
@@ -145,7 +122,6 @@ function init {
   reset all
   cluster $*
   stop all
-  sleep 5
   cluster $*
 }
 
@@ -163,7 +139,7 @@ function reset {
 function cluster {
   N=$1
   shift
-# --vmodule=netstore=6,depo=6,forwarding=6,hive=5,dpa=6,dpa=6,http=6,syncb=6,syncer=6,protocol=6,swap=6,chequebook=6
+  vmodule='--vmodule=network/*=6,syncb=6,syncer=6,protocol=6,swap=6,chequebook=6'
   echo "launching cluster of $N instances"
   # cmd="bash $srcdir/gethcluster.sh $root $network_id $N '' $swarmoptions $*"
   # echo $cmd
@@ -192,22 +168,46 @@ function cluster {
     id=`printf "%02d" $i`
     mkdir -p $dir/data/$id
     echo "launching node $i/$N ---> tail-f $dir/log/$id.log"
-    start $id $*
+    start $id $vmodule $*
   done
 }
 
 
+function needs {
+  id=$1
+  keyfile=$2
+  target=$3
+  dir=`dirname $3`
+  dest=$tmpdir/down
+  mkdir -p $dest
+  file=$dest/`basename $target`
+  rm -f $file
+  echo -n "waiting for root hash in '$keyfile'..."
+  while true; do
+   if [ -f $keyfile ] && [ ! -z $keyfile ]; then
+    break
+   fi
+   sleep 1
+   echo -n "."
+  done
+  key=`cat $keyfile|tr -d \"`
+  echo " => $key"
+  download $id $key $dest && cmp --silent $file $target && echo "PASS" || echo "FAIL"
+  # && ls -l $keyfile $file $target
+}
+
+
 function up { #port, file
   echo "Upload file '$2' to node $1... " 1>&2
   file=`basename $2`
-  key=`attach $1 "--exec 'bzz.upload(\"$2\", \"$file\")'"|tail -n1`
+  attach $1 "--exec 'bzz.upload(\"$2\", \"$file\")'"|tail -n1> /tmp/key
   # key=`bash swarm/cmd/bzzup.sh $2 86$1`
-  echo "-> $key"
-  echo -n `eval echo $key`
+  cat /tmp/key
 }
 
 function download {
   echo "download to '$3'"
+  echo attach $1 "--exec 'bzz.download(\"$2\", \"$3\")'"
   attach $1 "--exec 'bzz.download(\"$2\", \"$3\")'" > /dev/null
 }
 
@@ -234,14 +234,22 @@ function clean { #index
 }
 
 function info {
+  echo "swarm node information"
   echo "ROOTDIR: $root"
-  echo "DATADIR: $root/data/$1"
-  echo "LOGFILE: $root/log/$1.log"
+  echo "DATADIR: $root/$network_id/data/$1"
+  echo "LOGFILE: $root/$network_id/log/$1.log"
+  echo "HTTPAPI: http://localhost:32$1"
+  echo "ETHPORT: 302$1"
+  echo "RPCPORT: 322$1"
+  echo "ACCOUNT:" 0x`ls -1 $root/$network_id/data/$1/bzz`
+  echo "CHEQUEB:" `cat $root/$network_id/data/$1/bzz/*/config.json|grep Contract|awk -F\" '{print $4}'`
 }
 
 case $cmd in
   "info" )
     info $*;;
+  "clean" )
+    clean $*;;
   "needs" )
     needs $*;;
   "up" )
@@ -264,4 +272,6 @@ case $cmd in
     attach $*;;
   "log" )
     log $*;;
+  "less" )
+    less $*;;
 esac
diff --git a/swarm/cmd/swarm/test.sh b/swarm/cmd/swarm/test.sh
index 9321c581ec..30baeb278a 100644
--- a/swarm/cmd/swarm/test.sh
+++ b/swarm/cmd/swarm/test.sh
@@ -5,14 +5,12 @@ TEST_NAME=`basename $0 .sh`
 
 export SWARM_BIN=$TEST_DIR/../../cmd/swarm
 export GETH=$SWARM_BIN/../../../geth
-export NETWORKID=622$TEST_NAME
-export TMPDIR=/tmp/swarm-test
+export NETWORKID=322$TEST_NAME
+export TMPDIR=~/BZZ/swarm-test
 export DATA_ROOT=$TMPDIR/$NETWORKID
 # alias swarm='bash $SWARM_BIN/swarm.sh $DATA_ROOT $NETWORKID'
 EXTRA_ARGS=$*
 
-rm -rf $DATA_ROOT
-
 wait=1
 
 function swarm {
diff --git a/swarm/network/depo.go b/swarm/network/depo.go
index eeb50f4595..3e3a410411 100644
--- a/swarm/network/depo.go
+++ b/swarm/network/depo.go
@@ -5,9 +5,9 @@ import (
 	"encoding/binary"
 	"time"
 
-	"github.com/ethereum/go-ethereum/swarm/storage"
 	"github.com/ethereum/go-ethereum/logger"
 	"github.com/ethereum/go-ethereum/logger/glog"
+	"github.com/ethereum/go-ethereum/swarm/storage"
 )
 
 // Handler for storage/retrieval related protocol requests
@@ -51,6 +51,7 @@ func (self *Depo) HandleUnsyncedKeysMsg(req *unsyncedKeysMsgData, p *peer) error
 	if err != nil {
 		return err
 	}
+	// set peers state to persist
 	p.syncState = req.State
 	return nil
 }
diff --git a/swarm/network/forwarding.go b/swarm/network/forwarding.go
index c72fa0cc10..bc027b353e 100644
--- a/swarm/network/forwarding.go
+++ b/swarm/network/forwarding.go
@@ -42,25 +42,26 @@ var searchTimeout = 3 * time.Second
 func (self *forwarder) Retrieve(chunk *storage.Chunk) {
 	peers := self.hive.getPeers(chunk.Key, 0)
 	glog.V(logger.Detail).Infof("[BZZ] forwarder.Retrieve: %v - received %d peers from KΛÐΞMLIΛ...", chunk.Key.Log(), len(peers))
+OUT:
 	for _, p := range peers {
 		glog.V(logger.Detail).Infof("[BZZ] forwarder.Retrieve: sending retrieveRequest %v to peer [%v]", chunk.Key.Log(), p)
-		var req *retrieveRequestMsgData
-	OUT:
 		for _, recipients := range chunk.Req.Requesters {
 			for _, recipient := range recipients {
 				req := recipient.(*retrieveRequestMsgData)
 				if req.from.Addr() == p.Addr() {
-					break OUT
+					continue OUT
 				}
 			}
 		}
-		if req != nil {
-			if err := p.swap.Add(-1); err == nil {
-				p.retrieve(req)
-				break
-			} else {
-				glog.V(logger.Warn).Infof("[BZZ] forwarder.Retrieve: unable to send retrieveRequest to peer [%v]: %v", chunk.Key.Log(), err)
-			}
+		req := &retrieveRequestMsgData{
+			Key: chunk.Key,
+			Id:  generateId(),
+		}
+		if err := p.swap.Add(-1); err == nil {
+			p.retrieve(req)
+			break OUT
+		} else {
+			glog.V(logger.Warn).Infof("[BZZ] forwarder.Retrieve: unable to send retrieveRequest to peer [%v]: %v", chunk.Key.Log(), err)
 		}
 	}
 }
diff --git a/swarm/network/hive.go b/swarm/network/hive.go
index 56330d6862..88c3e350f6 100644
--- a/swarm/network/hive.go
+++ b/swarm/network/hive.go
@@ -32,8 +32,12 @@ type Hive struct {
 	path         string
 	toggle       chan bool
 	more         chan bool
-	blockRead    bool
-	blockWrite   bool
+
+	// for testing only
+	swapEnabled bool
+	syncEnabled bool
+	blockRead   bool
+	blockWrite  bool
 }
 
 const (
@@ -62,16 +66,26 @@ func NewHiveParams(path string) *HiveParams {
 	}
 }
 
-func NewHive(addr common.Hash, params *HiveParams) *Hive {
+func NewHive(addr common.Hash, params *HiveParams, swapEnabled, syncEnabled bool) *Hive {
 	kad := kademlia.New(kademlia.Address(addr), params.KadParams)
 	return &Hive{
 		callInterval: params.CallInterval,
 		kad:          kad,
 		addr:         kad.Addr(),
 		path:         params.KadDbPath,
+		swapEnabled:  swapEnabled,
+		syncEnabled:  syncEnabled,
 	}
 }
 
+func (self *Hive) SyncEnabled(on bool) {
+	self.syncEnabled = on
+}
+
+func (self *Hive) SwapEnabled(on bool) {
+	self.swapEnabled = on
+}
+
 func (self *Hive) BlockNetworkRead(on bool) {
 	self.blockRead = on
 }
diff --git a/swarm/network/messages.go b/swarm/network/messages.go
index bf11479c6f..44edceaa41 100644
--- a/swarm/network/messages.go
+++ b/swarm/network/messages.go
@@ -109,7 +109,7 @@ type retrieveRequestMsgData struct {
 	MaxSize  uint64      // maximum size of delivery accepted
 	MaxPeers uint64      // maximum number of peers returned
 	Timeout  uint64      // the longest time we are expecting a response
-	timeout  *time.Time  // [not serialied]}
+	timeout  *time.Time  // [not serialised]}
 	from     *peer       //
 }
 
@@ -234,7 +234,7 @@ peer/protocol instance when the node is registered by hive as online{
 */
 
 type syncRequestMsgData struct {
-	SyncState *syncState `rlp:"nil"`
+	SyncState *syncState `rlp:nil`
 }
 
 func (self *syncRequestMsgData) String() string {
diff --git a/swarm/network/protocol.go b/swarm/network/protocol.go
index 587148e1df..213b6ff266 100644
--- a/swarm/network/protocol.go
+++ b/swarm/network/protocol.go
@@ -78,11 +78,11 @@ type bzz struct {
 
 	swap        *swap.Swap          // swap instance for the peer connection
 	swapParams  *bzzswap.SwapParams // swap settings both local and remote
-	swapEnabled bool                // flag to switch off SWAP (will be via Caps in handshake)
+	swapEnabled bool                // flag to enable SWAP (will be set via Caps in handshake)
+	syncEnabled bool                // flag to enable SYNC (will be set via Caps in handshake)
 	syncer      *syncer             // syncer instance for the peer connection
 	syncParams  *SyncParams         // syncer params
 	syncState   *syncState          // outgoing syncronisation state (contains reference to remote peers db counter)
-	syncEnabled bool                // flag to enable syncing
 }
 
 // interface type for handler of storage/retrieval related requests coming
@@ -152,7 +152,7 @@ func run(requestDb *storage.LDBDatabase, depo StorageHandler, hive *Hive, dbacce
 		},
 		swapParams:  sp,
 		syncParams:  sy,
-		swapEnabled: true,
+		swapEnabled: hive.swapEnabled,
 		syncEnabled: true,
 	}
 
@@ -273,8 +273,6 @@ func (self *bzz) handle() error {
 		if err != nil {
 			return self.protoError(ErrDecode, "->msg %v: %v", msg, err)
 		}
-		// set peers state to persist
-		self.syncState = req.State
 
 	case deliveryRequestMsg:
 		// response to syncKeysMsg hashes filtered not existing in db
@@ -291,12 +289,14 @@ func (self *bzz) handle() error {
 
 	case paymentMsg:
 		// swap protocol message for payment, Units paid for, Cheque paid with
-		var req paymentMsgData
-		if err := msg.Decode(&req); err != nil {
-			return self.protoError(ErrDecode, "->msg %v: %v", msg, err)
+		if self.swapEnabled {
+			var req paymentMsgData
+			if err := msg.Decode(&req); err != nil {
+				return self.protoError(ErrDecode, "->msg %v: %v", msg, err)
+			}
+			glog.V(logger.Debug).Infof("[BZZ] incoming payment: %s", req.String())
+			self.swap.Receive(int(req.Units), req.Promise)
 		}
-		glog.V(logger.Debug).Infof("[BZZ] incoming payment: %s", req.String())
-		self.swap.Receive(int(req.Units), req.Promise)
 
 	default:
 		// no other message is allowed
@@ -366,10 +366,9 @@ func (self *bzz) handleStatus() (err error) {
 	self.hive.addPeer(&peer{bzz: self})
 
 	// hive sets syncstate so sync should start after node added
-	if self.syncEnabled {
-		glog.V(logger.Info).Infof("[BZZ] syncronisation request sent with %v", self.syncState)
-		self.syncRequest()
-	}
+	glog.V(logger.Info).Infof("[BZZ] syncronisation request sent with %v", self.syncState)
+	self.syncRequest()
+
 	return nil
 }
 
@@ -382,9 +381,10 @@ func (self *bzz) sync(state *syncState) error {
 	cnt := self.dbAccess.counter()
 	remoteaddr := self.remoteAddr.Addr
 	start, stop := self.hive.kad.KeyRange(remoteaddr)
+
+	// an explicitly received nil syncstate disables syncronisation
 	if state == nil {
-		state = newSyncState(start, stop, cnt)
-		glog.V(logger.Warn).Infof("[BZZ] peer %08x provided no sync state, setting up full sync: %v\n", remoteaddr[:4], state)
+		self.syncEnabled = false
 	} else {
 		state.synced = make(chan bool)
 		state.SessionAt = cnt
@@ -399,7 +399,7 @@ func (self *bzz) sync(state *syncState) error {
 		storage.Key(remoteaddr[:]),
 		self.dbAccess,
 		self.unsyncedKeys, self.store,
-		self.syncParams, state,
+		self.syncParams, state, func() bool { return self.syncEnabled },
 	)
 	if err != nil {
 		return self.protoError(ErrSync, "%v", err)
@@ -448,8 +448,9 @@ func (self *bzz) store(req *storeRequestMsgData) error {
 }
 
 func (self *bzz) syncRequest() error {
-	req := &syncRequestMsgData{
-		SyncState: self.syncState,
+	req := &syncRequestMsgData{}
+	if self.hive.syncEnabled {
+		req.SyncState = self.syncState
 	}
 	return self.send(syncRequestMsg, req)
 }
diff --git a/swarm/network/syncer.go b/swarm/network/syncer.go
index 4a06655950..6a80995a90 100644
--- a/swarm/network/syncer.go
+++ b/swarm/network/syncer.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"path/filepath"
 
-	"github.com/ethereum/go-ethereum/common/kademlia"
 	"github.com/ethereum/go-ethereum/logger"
 	"github.com/ethereum/go-ethereum/logger/glog"
 	"github.com/ethereum/go-ethereum/swarm/storage"
@@ -133,6 +132,7 @@ func NewSyncParams(bzzdir string) *SyncParams {
 // syncer is the agent that manages content distribution/storage replication/chunk storeRequest forwarding
 type syncer struct {
 	*SyncParams                     // sync parameters
+	syncF           func() bool     // if syncing is needed
 	key             storage.Key     // remote peers address key
 	state           *syncState      // sync state for our dbStore
 	syncStates      chan *syncState // different stages of sync
@@ -165,6 +165,7 @@ func newSyncer(
 	store func(*storeRequestMsgData) error,
 	params *SyncParams,
 	state *syncState,
+	syncF func() bool,
 ) (*syncer, error) {
 
 	syncBufferSize := params.SyncBufferSize
@@ -172,6 +173,7 @@ func newSyncer(
 	dbBatchSize := params.RequestDbBatchSize
 
 	self := &syncer{
+		syncF:           syncF,
 		key:             remotekey,
 		dbAccess:        dbAccess,
 		syncStates:      make(chan *syncState, 20),
@@ -191,35 +193,19 @@ func newSyncer(
 		// initialise a syncdb instance for each priority queue
 		self.queues[i] = newSyncDb(db, remotekey, uint(i), syncBufferSize, dbBatchSize, self.deliver(uint(i)))
 	}
-	self.state = state
 	glog.V(logger.Info).Infof("[BZZ] syncer started: %v", state)
 	// launch chunk delivery service
 	go self.syncDeliveries()
 	// launch sync task manager
-	go self.sync()
+	if self.syncF() {
+		go self.sync()
+	}
 	// process unsynced keys to broadcast
 	go self.syncUnsyncedKeys()
 
 	return self, nil
 }
 
-// newSyncState returns a default sync state given local and remote
-// addresses and db count
-func newSyncState(start, stop kademlia.Address, count uint64) *syncState {
-	// -> (] keyrange for db iterator -- interval open from the left
-	// storage count range --- interval open from the right
-	return &syncState{
-		DbSyncState: &storage.DbSyncState{
-			Start: storage.Key(start[:]),
-			Stop:  storage.Key(stop[:]),
-			First: 0,
-			Last:  count,
-		},
-		SessionAt: count,
-		synced:    make(chan bool),
-	}
-}
-
 // metadata serialisation
 func encodeSync(state *syncState) (*json.RawMessage, error) {
 	data, err := json.MarshalIndent(state, "", " ")
@@ -238,7 +224,7 @@ func decodeSync(meta *json.RawMessage) (*syncState, error) {
 	if len(data) == 0 {
 		return nil, fmt.Errorf("unable to deserialise sync state from <nil>")
 	}
-	state := newSyncState(kademlia.Address{}, kademlia.Address{}, 0)
+	state := &syncState{}
 	err := json.Unmarshal(data, state)
 	return state, err
 }
@@ -625,10 +611,12 @@ func (self *syncer) addRequest(req interface{}, ty int) {
 
 	priority := self.SyncPriorities[ty]
 	// sync mode for this type ON
-	if self.SyncModes[ty] {
-		self.addKey(req, priority, self.quit)
-	} else {
-		self.addDelivery(req, priority, self.quit)
+	if self.syncF() || ty == DeliverReq {
+		if self.SyncModes[ty] {
+			self.addKey(req, priority, self.quit)
+		} else {
+			self.addDelivery(req, priority, self.quit)
+		}
 	}
 }
 
diff --git a/swarm/services/swap/swap.go b/swarm/services/swap/swap.go
index cc44e263c2..5bd343efc6 100644
--- a/swarm/services/swap/swap.go
+++ b/swarm/services/swap/swap.go
@@ -254,7 +254,7 @@ func (self *SwapParams) newChequebookFromContract(path string, backend chequeboo
 	}
 
 	chbookpath := filepath.Join(path, "chequebooks", hexkey+".json")
-	self.chbook, err = chequebook.LoadChequebook(chbookpath, self.privateKey, backend)
+	self.chbook, err = chequebook.LoadChequebook(chbookpath, self.privateKey, backend, true)
 
 	if err != nil {
 		self.chbook, err = chequebook.NewChequebook(chbookpath, self.Contract, self.privateKey, backend)
diff --git a/swarm/swarm.go b/swarm/swarm.go
index 13e862ddc9..645f9a986e 100644
--- a/swarm/swarm.go
+++ b/swarm/swarm.go
@@ -43,7 +43,7 @@ type Swarm struct {
 
 // creates a new swarm service instance
 // implements node.Service
-func NewSwarm(stack *node.ServiceContext, config *api.Config, swapEnabled bool) (self *Swarm, err error) {
+func NewSwarm(stack *node.ServiceContext, config *api.Config, swapEnabled, syncEnabled bool) (self *Swarm, err error) {
 
 	if bytes.Equal(common.FromHex(config.PublicKey), storage.ZeroKey) {
 		return nil, fmt.Errorf("empty public key")
@@ -77,6 +77,8 @@ func NewSwarm(stack *node.ServiceContext, config *api.Config, swapEnabled bool)
 	self.hive = network.NewHive(
 		common.HexToHash(self.config.BzzKey), // key to hive (kademlia base address)
 		config.HiveParams,                    // configuration parameters
+		swapEnabled,                          // SWAP enabled
+		syncEnabled,                          // syncronisation enabled
 	)
 	glog.V(logger.Debug).Infof("[BZZ] Set up swarm network with Kademlia hive")
 
@@ -110,12 +112,15 @@ func NewSwarm(stack *node.ServiceContext, config *api.Config, swapEnabled bool)
 	glog.V(logger.Debug).Infof("[BZZ] -> Web3 virtual server API")
 
 	// set chequebook
+
 	if swapEnabled {
 		err = self.SetChequebook(backend)
 		if err != nil {
 			return nil, fmt.Errorf("Unable to set chequebook for SWAP: %v", err)
 		}
-		glog.V(logger.Debug).Infof("[BZZ] -> cheque book for SWAP")
+		glog.V(logger.Debug).Infof("[BZZ] -> cheque book for SWAP: %v", self.config.Swap.Chequebook())
+	} else {
+		glog.V(logger.Debug).Infof("[BZZ] SWAP disabled: no cheque book set")
 	}
 	return self, nil
 }
@@ -206,7 +211,7 @@ func (self *Swarm) APIs() []rpc.API {
 		rpc.API{Namespace, Version, api.NewControl(self.api, self.hive), false},
 		// rpc.API{Namespace, Version, api.NewAdmin(self), false},
 		// TODO: external apis exposed
-		rpc.API{"chequebook", chequebook.Version, chequebook.NewApi(self.config.Swap.Chequebook()), true},
+		rpc.API{"chequebook", chequebook.Version, chequebook.NewApi(self.config.Swap.Chequebook), true},
 	}
 }
 
diff --git a/swarm/test/swap/00.sh b/swarm/test/swap/00.sh
new file mode 100644
index 0000000000..9685915205
--- /dev/null
+++ b/swarm/test/swap/00.sh
@@ -0,0 +1,29 @@
+#!/bin/bash
+echo "TEST swap/00:"
+echo " two nodes that do not sync and do not have any funds"
+echo " cannot retrieve content from each other"
+
+dir=`dirname $0`
+source $dir/../../cmd/swarm/test.sh
+
+FILE_00=/tmp/1K.0
+randomfile 1 > $FILE_00
+ls -l $FILE_00
+mininginterval=50
+key=/tmp/key
+
+swarm init 2
+sleep $wait
+swarm attach 00 -exec "'bzz.noSync(true)'"
+swarm attach 01 -exec "'bzz.noSync(true)'"
+swarm up 00 $FILE_00|tail -n1 > $key
+swarm needs 00 $key $FILE_00
+swarm needs 01 $key $FILE_00 | tail -1| grep -ql "PASS" && echo "FAIL" || echo "PASS <3"
+
+FILE_01=/tmp/1K.1
+randomfile 1 > $FILE_01
+swarm up 01 $FILE_01|tail -1 > $key
+swarm needs 01 $key $FILE_01
+swarm needs 00 $key $FILE_01 | tail -1| grep -ql "PASS" && echo "FAIL" || echo "PASS <3"
+
+swarm stop all
\ No newline at end of file
diff --git a/swarm/test/swap/01.sh b/swarm/test/swap/01.sh
new file mode 100644
index 0000000000..d77a56b68f
--- /dev/null
+++ b/swarm/test/swap/01.sh
@@ -0,0 +1,62 @@
+echo "TEST swap/01:"
+echo " two nodes that do not sync but have enough funds"
+echo " after syncing, can retrieve content from each other"
+
+dir=`dirname $0`
+source $dir/../../cmd/swarm/test.sh
+
+file=/tmp/test.file
+mininginterval=120
+key=/tmp/key
+logargs="--verbosity=0 --vmodule='miner/*=0,swarm/services/*=6,swarm/swarm=6,common/chequebook/*=6,swarm/network/depo=6,swarm/network/forwarding=6'"
+# logargs='--verbosity=6'
+
+
+# swarm init 2 --mine --bzznosync $logargs
+# swarm stop all
+
+swarm start 00 --mine --bzznosync $logargs
+swarm start 01 --mine --bzznosync $logargs
+
+# echo "Mining some ether..."
+# sleep $mininginterval
+
+swarm attach 00 -exec "'eth.getBalance(eth.accounts[0])'"
+swarm attach 01 -exec "'eth.getBalance(eth.accounts[0])'"
+swarm attach 00 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+swarm attach 01 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+swarm attach 00 -exec "'chequebook.balance'"
+swarm attach 01 -exec "'chequebook.balance'"
+
+randomfile 10 > $file
+swarm up 00 $file|tail -n1 > $key
+swarm needs 01 $key $file
+swarm info 01
+
+swarm attach 00 -exec "'eth.getBalance(eth.accounts[0])'"
+swarm attach 01 -exec "'eth.getBalance(eth.accounts[0])'"
+swarm attach 00 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+swarm attach 01 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+swarm attach 00 -exec "'chequebook.balance'"
+swarm attach 01 -exec "'chequebook.balance'"
+
+# randomfile 20 > $file
+# swarm up 01 $file|tail -n1 > $key
+# swarm needs 00 $key $file
+
+# swarm attach 00 -exec "'eth.getBalance(eth.accounts[0])'"
+# swarm attach 01 -exec "'eth.getBalance(eth.accounts[0])'"
+# swarm attach 00 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+# swarm attach 01 -exec "'eth.getBalance(bzz.info().Swap.Contract)'"
+# swarm attach 00 -exec "'chequebook.balance'"
+# swarm attach 01 -exec "'chequebook.balance'"
+
+# randomfile 10 > $file
+# swarm up 00 $file|tail -n1 > $key
+# swarm needs 01 $key $file | tail -1| grep -ql "PASS" && echo "FAIL" || echo "PASS <3"
+
+# randomfile 10 > $file
+# swarm up 01 $file|tail -n1 > $key
+# swarm needs 00 $key $file | tail -1| grep -ql "PASS" && echo "FAIL" || echo "PASS <3"
+
+swarm stop all