diff --git a/Shorewall/functions b/Shorewall/functions
index 83c0b096b..5bc7f263d 100755
--- a/Shorewall/functions
+++ b/Shorewall/functions
@@ -185,13 +185,17 @@ mutex_off()
 # Read a file and handle "INCLUDE" directives
 #
 
-read_file() # $1 = file name
+read_file() # $1 = file name, $2 = nest count
 {
     local first rest
 
     while read first rest; do
 	if [ "x$first"  = "xINCLUDE" ]; then
-	    read_file `find_file ${rest%#*}`
+	    if [ $2 -lt 4 ]; then
+		read_file `find_file ${rest%#*}` $(($count + 1))
+	    else
+		echo "   WARNING: INCLUDE in $1 ignored (nested too deeply)" >&2
+	    fi
 	else
 	    echo "$first $rest"
 	fi
@@ -216,7 +220,7 @@ strip_file() # $1 = Base Name of the file, $2 = Full Name of File (optional)
     [ $# = 1 ] && fname=`find_file $1` || fname=$2
 
     if [ -f $fname ]; then
-	read_file $fname | cut -d'#' -f1 | grep -v '^[[:space:]]*$' > $TMP_DIR/$1
+	read_file $fname 0 | cut -d'#' -f1 | grep -v '^[[:space:]]*$' > $TMP_DIR/$1
     else
 	> $TMP_DIR/$1
     fi
diff --git a/Shorewall/releasenotes.txt b/Shorewall/releasenotes.txt
index ce7d19885..03f09a940 100755
--- a/Shorewall/releasenotes.txt
+++ b/Shorewall/releasenotes.txt
@@ -25,41 +25,44 @@ New Features:
    configuration directory if one has been specified for the command. 
 
    Examples:
-  shorewall/params.mgmt:
-  MGMT_SERVERS=1.1.1.1,2.2.2.2,3.3.3.3
-  TIME_SERVERS=4.4.4.4
-  BACKUP_SERVERS=5.5.5.5
-  ----- end params.mgmt -----
+   shorewall/params.mgmt:
+   MGMT_SERVERS=1.1.1.1,2.2.2.2,3.3.3.3
+   TIME_SERVERS=4.4.4.4
+   BACKUP_SERVERS=5.5.5.5
+   ----- end params.mgmt -----
 
 
-  shorewall/params:
-  # Shorewall 1.3 /etc/shorewall/params
-  [..]
-  #######################################
+   shorewall/params:
+   # Shorewall 1.3 /etc/shorewall/params
+   [..]
+   #######################################
 
-  INCLUDE params.mgmt    
+   INCLUDE params.mgmt    
   
-  # params unique to this host here
-  #LAST LINE - ADD YOUR ENTRIES ABOVE THIS ONE - DO NOT REMOVE
-  ----- end params -----
+   # params unique to this host here
+   #LAST LINE - ADD YOUR ENTRIES ABOVE THIS ONE - DO NOT REMOVE
+   ----- end params -----
 
 
-  shorewall/rules.mgmt:
-  ACCEPT net:$MGMT_SERVERS          $FW    tcp    22
-  ACCEPT $FW          net:$TIME_SERVERS    udp    123
-  ACCEPT $FW          net:$BACKUP_SERVERS  tcp    22
-  ----- end rules.mgmt -----
+   shorewall/rules.mgmt:
+   ACCEPT net:$MGMT_SERVERS          $FW    tcp    22
+   ACCEPT $FW          net:$TIME_SERVERS    udp    123
+   ACCEPT $FW          net:$BACKUP_SERVERS  tcp    22
+   ----- end rules.mgmt -----
 
-  shorewall/rules:
-  # Shorewall version 1.3 - Rules File
-  [..]
-  #######################################
+   shorewall/rules:
+   # Shorewall version 1.3 - Rules File
+   [..]
+   #######################################
 
-  INCLUDE rules.mgmt     
+   INCLUDE rules.mgmt     
   
-  # rules unique to this host here
-  #LAST LINE -- ADD YOUR ENTRIES BEFORE THIS ONE -- DO NOT REMOVE
-  ----- end rules -----
+   # rules unique to this host here
+   #LAST LINE -- ADD YOUR ENTRIES BEFORE THIS ONE -- DO NOT REMOVE
+   ----- end rules -----
+
+   INCLUDE's may be nested to a level of 3 -- further nested INCLUDE
+   directives are ignored.
+
 
-