diff --git a/compiler.rb b/compiler.rb
index 8f37a94..615651f 100644
--- a/compiler.rb
+++ b/compiler.rb
@@ -1,9 +1,3 @@
-# TODO: Make compilation two-phase:
-=begin
-Phase one will accept an array of tokens and update the tables accordingly.
-Phase two wil take the data from the tables and do the actual compilation.
-=end
-
 $types=[:int,:void]
 $functable={}
 $cfunc=nil
@@ -17,15 +11,58 @@ class String
   end
 end
 
+def is_var(var)
+  return false if var.class!=Symbol
+  vartable=$functable[$cfunc][:vars]
+  argtable=$functable[$cfunc][:args]
+  if vartable.include? var or argtable.include? var
+    return true
+  else
+    return false
+  end
+end
+
 def get_index(var)
   vartable=$functable[$cfunc][:vars]
+  argtable=$functable[$cfunc][:args]
   if vartable.include? var
-    return vartable.find_index(var)
+    return vartable.find_index(var),"local"
   else
+    if argtable.include? var
+      return argtable.find_index(var),"argument"
+    end
     raise CompilationError,"No such variable #{var}"
   end
 end
 
+def push(obj)
+  if obj.class == Symbol
+    index,segment=get_index(obj)
+    $outfile.puts "push #{segment} #{index}"
+  elsif obj.class == String
+    if obj.is_integer?
+      $outfile.puts "push constant #{obj.to_i}"
+    elsif is_var(obj.to_sym)
+      index,segment=get_index(obj.to_sym)
+      $outfile.puts "push #{segment} #{index}"
+    else
+      raise CompilationError, "Cannot push #{obj}, is not a variable or a number."
+    end
+  elsif obj.is_a? Numeric
+    $outfile.puts "push constant #{obj}"
+  else
+    raise CompilationError, "Cannot push #{obj}, is not a variable or a number."
+  end
+end
+
+def pop(var)
+  if var.class != Symbol and !is_var(var)
+    raise CompilationError, "Cannot push #{var}, is not a variable."
+  end
+  index,segment=get_index(var)
+  $outfile.puts "pop #{segment} #{index}"
+end
+
 def tokenize_line(line)
   split_line=line.split(" ")
   cmd=split_line.shift.to_sym
@@ -33,61 +70,109 @@ def tokenize_line(line)
   if $types.include? cmd
     if /(\w+)\((.*)\) \{/.match(split_line.join(" "))
       tokens.push(:func)
+      tokens.push(cmd)
       tokens.push($1.to_sym)
-      tokens.push($2)
+      args=[]
+      $2.split(",").each do |arg|
+        temp=arg.split(" ")
+        args.push(temp[1].to_sym)
+      end
+      tokens.push(args)
     else
       tokens.push(:newvar)
       tokens.push(cmd)
       tokens.push(split_line[0].to_sym)
     end
   else
+    if /(\w+)\((.*)\)/.match(cmd)
+      tokens.push(:call)
+      tokens.push($1.to_sym)
+      args=[]
+      $2.split(",").each do |arg|
+        args.push(arg.to_sym)
+      end
+      tokens.push(args)
+    end
     if split_line[0] == "="
       tokens.push(:assignment)
-      tokens.push(cmd.to_sym)
+      tokens.push(cmd)
       tokens.push(split_line[1])
     end
     if cmd == "}"
       tokens.push(:endfunc)
     end
+    if cmd == :return
+      tokens.push(:return)
+      tokens.push(split_line[0])
+    end
   end
   return tokens
 end
 
 def phase_one(tokens)
   if $cfunc==nil and tokens[0] != :func
-    raise CompilationError, "Code must be inside a fuction"
+    raise CompilationError, "Code must be inside a fuction, for line #{tokens}"
   end
   case tokens[0]
   when :func
-    $functable[tokens[1]]={:vars=>[],:code=>[]}
-    $cfunc=tokens[1]
+    $functable[tokens[2]]={:vars=>[],:code=>[], :type=>tokens[1], :args=>tokens[3]}
+    $cfunc=tokens[2]
   when :endfunc
     $cfunc=nil
   when :newvar
     $functable[$cfunc][:vars].push(tokens[2])
   else
-    $functable[$cfunc][:code].push(tokens)
+    $functable[$cfunc][:code].push(tokens) if tokens != []
   end
 end
 
 def phase_two
   $functable.each do |func,info|
+    $cfunc=func
     vars=info[:vars]
     $outfile.puts "function Main.#{func.to_s} #{vars.length}"
     info[:code].each do |line|
-      #puts "Parsing line #{line}"
-        action=line.shift
-        case action
-        when :assignment
-          index=get_index(line[0])
-          if line[1].is_integer?
-            $outfile.puts "push constant #{line[1].to_i}"
-            $outfile.puts "pop local #{index}"
+      action=line.shift
+      case action
+      when :assignment
+        if line[1].is_integer? or is_var(line[1])
+          push(line[1])
+        else
+          parsed_line=tokenize_line(line[1])
+          parsed_line=[""] if parsed_line==nil
+          if parsed_line[0]==:call
+            parsed_line[2].each do |arg|
+              push(arg)
+            end
+            nargs=$functable[parsed_line[1]][:args].length
+            $outfile.puts "call Main.#{parsed_line[1]} #{nargs}"
           else
-            index1=get_index(line[1])
-            $outfile.puts "push local #{index1}"
+            if line[1].include? "+"
+              operand=line[1].split("+")
+              op="add"
+            end
+            if line[1].include? "-"
+              operand=line[1].split("-")
+              op="sub"
+            end
+            push(operand[0])
+            push(operand[1])
+            $outfile.puts(op)
           end
         end
+        pop(line[0])
+      when :call
+        line[1].each do |arg|
+          push(arg)
+        end
+        nargs=$functable[line[0]][:args].length
+        $outfile.puts "call Main.#{line[0]} #{nargs}"
+      when :return
+        push(line[0])
+      end
+    end
+    if info[:type]==:void
+      push(0)
     end
     $outfile.puts "return"
     $outfile.puts(" ")
@@ -102,17 +187,36 @@ def write_init
   sysfile.puts("goto halt")
   sysfile.puts(" ")
 end
+
 if !File.exists? "vmprog"
   Dir.mkdir("vmprog")
+  write_init()
 end
+
 Dir.chdir("vmprog")
+
 $outfile=File.new("Main.vm","w")
-write_init()
-phase_one(tokenize_line("int main() {"))
-phase_one(tokenize_line("int x"))
-phase_one(tokenize_line("x = 10"))
-phase_one(tokenize_line("int y"))
-phase_one(tokenize_line("y = 10"))
-phase_one(tokenize_line("}"))
+
+prog=<<-END
+void main() {
+int x
+x = 10
+int y
+y = x+17
+int z
+z = testfunc(y)
+}
+int testfunc(int c) {
+int x
+x = c-7
+return x
+}
+END
+
+prog.each_line do |line|
+  phase_one(tokenize_line(line))
+end
+
 puts $functable
-phase_two
+
+phase_two()
diff --git a/vmprog/Main.vm b/vmprog/Main.vm
index a94296a..5cefd83 100644
--- a/vmprog/Main.vm
+++ b/vmprog/Main.vm
@@ -1,7 +1,21 @@
-function Main.main 2
+function Main.main 3
 push constant 10
 pop local 0
-push constant 10
+push local 0
+push constant 17
+add
 pop local 1
+push local 1
+call Main.testfunc 1
+pop local 2
+push constant 0
+return
+ 
+function Main.testfunc 1
+push argument 0
+push constant 7
+sub
+pop local 0
+push local 0
 return