diff --git a/doc/reference/src/templating.xml b/doc/reference/src/templating.xml
index b2ab0d8a..25697f64 100644
--- a/doc/reference/src/templating.xml
+++ b/doc/reference/src/templating.xml
@@ -134,8 +134,9 @@ string mergedContent = stringWriter.ToString();</programlisting>
               <entry>
                 <para>Instructs the NVelocity engine factory to attempt use
                 NVelocity's file loader. When set to false the provided
-                <literal>SpringResourceLoader</literal> will be used (and the <literal>ResourceLoaderPath</literal>
-                property must be set)</para>
+                <literal>SpringResourceLoader</literal> will be used (and the
+                <literal>ResourceLoaderPath</literal> property must be
+                set)</para>
               </entry>
 
               <entry>no</entry>
@@ -148,7 +149,7 @@ string mergedContent = stringWriter.ToString();</programlisting>
 
               <entry>
                 <para>Instructs the NVelocity engine factory to use the
-                provided spring commons logging based logging system. See See
+                provided spring commons logging based logging system. See
                 <xref
                 linkend="templating-nvelocity-resource-logging" /></para>
               </entry>
@@ -208,12 +209,12 @@ string mergedContent = stringWriter.ToString();</programlisting>
 </programlisting>
 
       <note>
-        <para>By default spring will attempt to load resources using NVelocity's
-      file based template loading (useful for detection of template changes at
-      runtime). If this is not desirable you set the
-      <literal>prefer-file-system-access</literal> property of the factory object
-      to <literal>false</literal> which will cause the factory to utilize the supplied
-      spring resource loader.</para>
+        <para>By default spring will attempt to load resources using
+        NVelocity's file based template loading (useful for detection of
+        template changes at runtime). If this is not desirable you set the
+        <literal>prefer-file-system-access</literal> property of the factory
+        object to <literal>false</literal> which will cause the factory to
+        utilize the supplied spring resource loader.</para>
       </note>
 
       <para>Using the example above when resource loader paths are defined
@@ -435,8 +436,8 @@ string mergedTemplate = VelocityEngineUtils.MergeTemplateIntostring(velocityEngi
       file based template loading (useful for detection of template changes at
       runtime). If this is not desirable you set the
       <literal>preferFileSystemAccess</literal> property of the factory object
-      to <literal>false</literal> which will cause the factory to utilize the supplied
-      spring resource loader.</para>
+      to <literal>false</literal> which will cause the factory to utilize the
+      supplied spring resource loader.</para>
     </note>
 
     <para>To refer to a property file based configuration of the
diff --git a/src/Spring/Spring.Template.Velocity/Template/Velocity/VelocityEngineFactory.cs b/src/Spring/Spring.Template.Velocity/Template/Velocity/VelocityEngineFactory.cs
index 34dc126b..1ee39127 100644
--- a/src/Spring/Spring.Template.Velocity/Template/Velocity/VelocityEngineFactory.cs
+++ b/src/Spring/Spring.Template.Velocity/Template/Velocity/VelocityEngineFactory.cs
@@ -22,7 +22,6 @@ using System;
 using System.Collections;
 using System.Collections.Generic;
 using System.IO;
-using System.Text;
 using Common.Logging;
 using Commons.Collections;
 using NVelocity.App;
@@ -290,11 +289,12 @@ namespace Spring.Template.Velocity {
                 // Try to load via the file system, fall back to SpringResourceLoader
                 // (for hot detection of template changes, if possible).
                 IList resolvedPaths = new ArrayList();
-                foreach (string path in paths) {
-                    IResource resource = ResourceLoader.GetResource(path);
-                    resolvedPaths.Add(resource.File.FullName);
-                }
                 try {
+                    foreach (string path in paths) {
+                        IResource resource = ResourceLoader.GetResource(path);
+                        resolvedPaths.Add(resource.File.FullName);
+                    }
+
                     extendedProperties.SetProperty(RuntimeConstants.RESOURCE_LOADER, VelocityConstants.File);
                     extendedProperties.SetProperty(RuntimeConstants.FILE_RESOURCE_LOADER_PATH, 
                         StringUtils.CollectionToCommaDelimitedString(resolvedPaths));
diff --git a/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.cs b/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.cs
index 9dc9f54c..447de176 100644
--- a/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.cs
+++ b/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.cs
@@ -21,8 +21,11 @@
 #region Imports
 
 using System;
+using System.Collections.Generic;
+using System.Text;
 using NUnit.Framework;
 using NVelocity.App;
+using NVelocity.Exception;
 
 #endregion
 
@@ -53,6 +56,14 @@ namespace Spring.Template.Velocity.Tests.Template.Velocity {
             VelocityEngine velocityEngine = appContext.GetObject("fileBasedVelocityEngine") as VelocityEngine;
             Assert.IsNotNull(velocityEngine, "velocityEngine is null");
             AssertMergedValue(velocityEngine, "Template/Velocity/SimpleTemplate.vm");
+
+            try {
+                VelocityEngineUtils.MergeTemplateIntoString(velocityEngine, "NoneExistingFile", Encoding.UTF8.WebName, model);
+                throw new TestException(
+                    "Merge using non existing file should throw exception");
+            } catch (Exception ex) {
+                Assert.IsTrue(ex is VelocityException, "Illegal merge should throw VelocityException");
+            }
         }
 
         /// <summary>
@@ -75,6 +86,18 @@ namespace Spring.Template.Velocity.Tests.Template.Velocity {
                 appContext.GetObject("pathBasedVelocityEngine") as VelocityEngine;
             Assert.IsNotNull(velocityEngine, "velocityEngine is null");
             AssertMergedValue(velocityEngine, "SimpleTemplate.vm");
+        }  
+        
+        /// <summary>
+        /// Test using definition of ResourceLoaderPath (file-based configuration) falling back from velocity
+        /// file-base to spring-based (prefer-file-system-access one but resource path is string compliant)
+        /// </summary>
+        [Test]
+        public void TestMergeUsingResourceLoaderPathFallback() {
+            VelocityEngine velocityEngine =
+                appContext.GetObject("springFallbackVelocityEngine") as VelocityEngine;
+            Assert.IsNotNull(velocityEngine, "velocityEngine is null");
+            AssertMergedValue(velocityEngine, "SimpleTemplate.vm");
         }
 
         /// <summary>
@@ -99,6 +122,7 @@ namespace Spring.Template.Velocity.Tests.Template.Velocity {
             AssertMergedValue(velocityEngine, "SimpleTemplate.vm");
         }
 
+
         /// <summary>
         /// Test using invalid configuration
         /// </summary>
@@ -114,6 +138,41 @@ namespace Spring.Template.Velocity.Tests.Template.Velocity {
             } catch (ArgumentException) {
                 Assert.IsNull(velocityEngine, "velocityEngine should be null");
             }
+
+            // no resource loader with spring
+            velocityEngineFactory = new VelocityEngineFactory();
+            velocityEngineFactory.ResourceLoader = null;
+            velocityEngineFactory.PreferFileSystemAccess = false;
+            try {
+                velocityEngineFactory.CreateVelocityEngine();
+                throw new TestException(
+                    "Should not be able to construct VelocityEngineFactory with null ResourceLoader");
+            } catch (ArgumentException) {
+                Assert.IsNull(velocityEngine, "velocityEngine should be null");
+            }
+
+            // no resource loader path with spring
+            velocityEngineFactory = new VelocityEngineFactory();
+            velocityEngineFactory.ResourceLoaderPaths = new List<string>();
+            velocityEngineFactory.PreferFileSystemAccess = false;
+            try {
+                velocityEngineFactory.CreateVelocityEngine();
+                throw new TestException(
+                    "Should not be able to construct VelocityEngineFactory with empty resource loader path list");
+            } catch (ArgumentException) {
+                Assert.IsNull(velocityEngine, "velocityEngine should be null");
+            }
         }
+
+        [Test]
+        public void TestLogging(){
+            VelocityEngine velocityEngine = new VelocityEngineFactoryObject().CreateVelocityEngine();
+            velocityEngine.Info("test");
+            velocityEngine.Debug("test");
+            velocityEngine.Warn("test");
+            velocityEngine.Error("test");
+        }
+
+
     }
 }
\ No newline at end of file
diff --git a/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.xml b/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.xml
index ad7bb506..dd108bdf 100644
--- a/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.xml
+++ b/test/Spring/Spring.Template.Velocity.Tests/Template/Velocity/VelocityEngineFactoryObjectTests.xml
@@ -66,6 +66,12 @@
         -->
     </object>
 
+    <!-- Spring based defualt file fallback to spring definition -->
+    <object id="springFallbackVelocityEngine" type="Spring.Template.Velocity.VelocityEngineFactoryObject, Spring.Template.Velocity" >
+        <property name="ResourceLoaderPath " value="assembly://Spring.Template.Velocity.Tests/Spring.Template.Velocity.Tests.Template.Velocity/" />
+    </object>
+
+
     <!-- Configuration comes from a properties file -->
     <object id="propertiesFileBasedVelocityEngine" type="Spring.Template.Velocity.VelocityEngineFactoryObject, Spring.Template.Velocity" >
         <property name="ConfigLocation " value="file://Template/Velocity/config.properties" />