diff --git a/KREngine/kraken/KRAABB.cpp b/KREngine/kraken/KRAABB.cpp
index 319fe63..e28aced 100644
--- a/KREngine/kraken/KRAABB.cpp
+++ b/KREngine/kraken/KRAABB.cpp
@@ -279,3 +279,14 @@ bool KRAABB::intersectsRay(const KRVector3 &v1, const KRVector3 &dir) const
 {
     return true;
 }
+
+void KRAABB::encapsulate(const KRAABB & b)
+{
+    if(b.min.x < min.x) min.x = b.min.x;
+    if(b.min.y < min.y) min.y = b.min.y;
+    if(b.min.z < min.z) min.z = b.min.z;
+    
+    if(b.max.x > max.x) max.x = b.max.x;
+    if(b.max.y > max.y) max.y = b.max.y;
+    if(b.max.z > max.z) max.z = b.max.z;
+}
\ No newline at end of file
diff --git a/KREngine/kraken/KRAABB.h b/KREngine/kraken/KRAABB.h
index ca4e7b6..802dd6e 100644
--- a/KREngine/kraken/KRAABB.h
+++ b/KREngine/kraken/KRAABB.h
@@ -34,6 +34,7 @@ public:
     bool visible(const KRMat4 &matViewProjection) const;
     bool intersectsLine(const KRVector3 &v1, const KRVector3 &v2) const;
     bool intersectsRay(const KRVector3 &v1, const KRVector3 &dir) const;
+    void encapsulate(const KRAABB & b);
     
     KRAABB& operator =(const KRAABB& b);
     bool operator ==(const KRAABB& b) const;
diff --git a/KREngine/kraken/KRLODGroup.cpp b/KREngine/kraken/KRLODGroup.cpp
index a892aa7..b2fcbc7 100644
--- a/KREngine/kraken/KRLODGroup.cpp
+++ b/KREngine/kraken/KRLODGroup.cpp
@@ -13,6 +13,7 @@ KRLODGroup::KRLODGroup(KRScene &scene, std::string name) : KRNode(scene, name)
 {
     m_min_distance = 0.0f;
     m_max_distance = 0.0f;
+    m_referencePoint = KRVector3::Zero();
 }
 
 KRLODGroup::~KRLODGroup()
@@ -28,6 +29,10 @@ tinyxml2::XMLElement *KRLODGroup::saveXML( tinyxml2::XMLNode *parent)
     tinyxml2::XMLElement *e = KRNode::saveXML(parent);
     e->SetAttribute("min_distance", m_min_distance);
     e->SetAttribute("max_distance", m_max_distance);
+    
+    e->SetAttribute("reference_x", m_referencePoint.x);
+    e->SetAttribute("reference_y", m_referencePoint.y);
+    e->SetAttribute("reference_z", m_referencePoint.z);
     return e;
 }
 
@@ -44,13 +49,49 @@ void KRLODGroup::loadXML(tinyxml2::XMLElement *e)
     if(e->QueryFloatAttribute("max_distance", &m_max_distance) != tinyxml2::XML_SUCCESS) {
         m_max_distance = 0.0f;
     }
+    
+    
+    float x=0.0f, y=0.0f, z=0.0f;
+    if(e->QueryFloatAttribute("reference_x", &x) != tinyxml2::XML_SUCCESS) {
+        x = 0.0f;
+    }
+    if(e->QueryFloatAttribute("reference_y", &y) != tinyxml2::XML_SUCCESS) {
+        y = 0.0f;
+    }
+    if(e->QueryFloatAttribute("reference_z", &z) != tinyxml2::XML_SUCCESS) {
+        z = 0.0f;
+    }
+    m_referencePoint = KRVector3(x,y,z);
+}
+
+
+const KRVector3 KRLODGroup::getReferencePoint()
+{
+    return m_referencePoint;
+}
+
+void KRLODGroup::setReferencePoint(const KRVector3 &referencePoint)
+{
+    m_referencePoint = referencePoint;
+}
+
+const KRVector3 KRLODGroup::getWorldReferencePoint()
+{
+    return localToWorld(m_referencePoint);
 }
 
 bool KRLODGroup::getLODVisibility(const KRViewport &viewport)
 {
-    // Compare square distances as sqrt is expensive
-    float sqr_distance = (viewport.getCameraPosition() - getWorldTranslation()).sqrMagnitude();
-    return ((sqr_distance >= m_min_distance * m_min_distance || m_min_distance == 0) && (sqr_distance < m_max_distance * m_max_distance || m_max_distance == 0));
+    if(m_min_distance == 0 && m_max_distance == 0) {
+        return true;
+    } else {
+        // return (m_max_distance == 0); // FINDME, HACK - Test code to enable only the lowest LOD group
+        float lod_bias = 1.0f;
+        
+        // Compare square distances as sqrt is expensive
+        float sqr_distance = (viewport.getCameraPosition() - getWorldReferencePoint()).sqrMagnitude() * (lod_bias * lod_bias);
+        return ((sqr_distance >= m_min_distance * m_min_distance || m_min_distance == 0) && (sqr_distance < m_max_distance * m_max_distance || m_max_distance == 0));
+    }
 }
 
 void KRLODGroup::updateLODVisibility(const KRViewport &viewport)
diff --git a/KREngine/kraken/KRLODGroup.h b/KREngine/kraken/KRLODGroup.h
index f27395b..815daa8 100644
--- a/KREngine/kraken/KRLODGroup.h
+++ b/KREngine/kraken/KRLODGroup.h
@@ -28,10 +28,16 @@ public:
     void setMinDistance(float min_distance);
     void setMaxDistance(float max_distance);
     
+    const KRVector3 getReferencePoint();
+    void setReferencePoint(const KRVector3 &referencePoint);
+    
+    const KRVector3 getWorldReferencePoint();
+    
 private:
     bool getLODVisibility(const KRViewport &viewport);
     float m_min_distance;
     float m_max_distance;
+    KRVector3 m_referencePoint; // Point of reference, used for distance calculation.  Usually set to the bounding box center
 };
 
 
diff --git a/KREngine/kraken/KRMeshManager.cpp b/KREngine/kraken/KRMeshManager.cpp
index 5b553c9..40cb606 100644
--- a/KREngine/kraken/KRMeshManager.cpp
+++ b/KREngine/kraken/KRMeshManager.cpp
@@ -64,19 +64,17 @@ KRMeshManager::~KRMeshManager() {
 }
 
 KRMesh *KRMeshManager::loadModel(const char *szName, KRDataBlock *pData) {
-    
-    std::string lowerName = szName;
-    std::transform(lowerName.begin(), lowerName.end(),
-                   lowerName.begin(), ::tolower);
-    
-    
-    KRMesh *pModel = new KRMesh(*m_pContext, lowerName, pData);
+    KRMesh *pModel = new KRMesh(*m_pContext, szName, pData);
     addModel(pModel);
     return pModel;
 }
 
 void KRMeshManager::addModel(KRMesh *model) {
-    m_models.insert(std::pair<std::string, KRMesh *>(model->getLODBaseName(), model));
+    std::string lowerName = model->getLODBaseName();
+    std::transform(lowerName.begin(), lowerName.end(),
+                   lowerName.begin(), ::tolower);
+    
+    m_models.insert(std::pair<std::string, KRMesh *>(lowerName, model));
 }
 
 std::vector<KRMesh *> KRMeshManager::getModel(const char *szName) {
@@ -101,7 +99,7 @@ std::vector<KRMesh *> KRMeshManager::getModel(const char *szName) {
     return matching_models;
 }
 
-std::multimap<std::string, KRMesh *> KRMeshManager::getModels() {
+std::multimap<std::string, KRMesh *> &KRMeshManager::getModels() {
     return m_models;
 }
 
diff --git a/KREngine/kraken/KRMeshManager.h b/KREngine/kraken/KRMeshManager.h
index dbea338..22b31d8 100644
--- a/KREngine/kraken/KRMeshManager.h
+++ b/KREngine/kraken/KRMeshManager.h
@@ -57,7 +57,7 @@ public:
     void addModel(KRMesh *model);
     
     std::vector<std::string> getModelNames();
-    std::multimap<std::string, KRMesh *> getModels();
+    std::multimap<std::string, KRMesh *> &getModels();
     
     
     void bindVBO(GLvoid *data, GLsizeiptr size, GLvoid *index_data, GLsizeiptr index_data_size, bool enable_vertex, bool enable_normal, bool enable_tangent, bool enable_uva, bool enable_uvb, bool enable_bone_indexes, bool enable_bone_weights, bool static_vbo);
diff --git a/KREngine/kraken/KRNode.cpp b/KREngine/kraken/KRNode.cpp
index f7d51f3..7c83aee 100644
--- a/KREngine/kraken/KRNode.cpp
+++ b/KREngine/kraken/KRNode.cpp
@@ -193,7 +193,7 @@ const KRVector3 &KRNode::getInitialLocalRotation() {
 }
 
 const KRVector3 KRNode::getWorldTranslation() {
-    return KRMat4::Dot(getModelMatrix(), KRVector3::Zero());
+    return localToWorld(KRVector3::Zero());
 }
 
 const KRVector3 KRNode::getWorldScale() {
@@ -278,7 +278,20 @@ KRScene &KRNode::getScene() {
 }
 
 KRAABB KRNode::getBounds() {
-    return KRAABB::Infinite();
+    KRAABB bounds = KRAABB::Infinite();
+
+    bool first_child = true;
+    for(std::vector<KRNode *>::iterator itr=m_childNodes.begin(); itr < m_childNodes.end(); ++itr) {
+        KRNode *child = (*itr);
+        if(first_child) {
+            first_child = false;
+            bounds = child->getBounds();
+        } else {
+            bounds.encapsulate(child->getBounds());
+        }
+    }
+
+    return bounds;
 }
 
 void KRNode::invalidateModelMatrix()
@@ -475,3 +488,13 @@ bool KRNode::lodIsVisible()
 {
     return m_lod_visible;
 }
+
+const KRVector3 KRNode::localToWorld(const KRVector3 &local_point)
+{
+    return KRMat4::Dot(getModelMatrix(), local_point);
+}
+
+const KRVector3 KRNode::worldToLocal(const KRVector3 &world_point)
+{
+    return KRMat4::Dot(getInverseModelMatrix(), world_point);
+}
diff --git a/KREngine/kraken/KRNode.h b/KREngine/kraken/KRNode.h
index de40593..9787f81 100644
--- a/KREngine/kraken/KRNode.h
+++ b/KREngine/kraken/KRNode.h
@@ -71,6 +71,9 @@ public:
     const KRVector3 getWorldScale();
     const KRVector3 getWorldRotation();
     
+    const KRVector3 localToWorld(const KRVector3 &local_point);
+    const KRVector3 worldToLocal(const KRVector3 &world_point);
+    
     void setWorldTranslation(const KRVector3 &v);
     void setWorldScale(const KRVector3 &v);
     void setWorldRotation(const KRVector3 &v);
diff --git a/KREngine/kraken/KRRenderSettings.cpp b/KREngine/kraken/KRRenderSettings.cpp
index a619387..6d7f93d 100644
--- a/KREngine/kraken/KRRenderSettings.cpp
+++ b/KREngine/kraken/KRRenderSettings.cpp
@@ -26,7 +26,7 @@ KRRenderSettings::KRRenderSettings()
     bEnableSpecular = true;
     bEnableLightMap = true;
     bDebugSuperShiny = false;
-    bEnableDeferredLighting = true;
+    bEnableDeferredLighting = false;
     
     ambient_intensity = KRVector3::Zero();
     light_intensity = KRVector3::One();
diff --git a/KREngine/kraken/KRResource+fbx.cpp b/KREngine/kraken/KRResource+fbx.cpp
index 94fcbbd..97f0d26 100644
--- a/KREngine/kraken/KRResource+fbx.cpp
+++ b/KREngine/kraken/KRResource+fbx.cpp
@@ -95,17 +95,7 @@ std::vector<KRResource *> KRResource::LoadFbx(KRContext &context, const std::str
     if(pNode) {
         pNode->ResetPivotSetAndConvertAnimation();
     }
-    
-    // ----====---- Import Scene Graph Nodes ----====----
-    printf("\nLoading scene graph...\n");
-    if(pNode)
-    {
-        for(int i = 0; i < pNode->GetChildCount(); i++)
-        {
-            LoadNode(pFbxScene, pScene->getRootNode(), resources, pGeometryConverter, pNode->GetChild(i));
-        }
-    }
-    
+        
     // ----====---- Import Animation Layers ----====----
     printf("\nLoading animations...\n");
     int animation_count = pFbxScene->GetSrcObjectCount<FbxAnimStack>();
@@ -162,10 +152,24 @@ std::vector<KRResource *> KRResource::LoadFbx(KRContext &context, const std::str
         context.loadResource(file_name);
     }
     
+    // ----====---- Import Scene Graph Nodes ----====----
+    printf("\nLoading scene graph...\n");
+    if(pNode)
+    {
+        for(int i = 0; i < pNode->GetChildCount(); i++)
+        {
+            LoadNode(pFbxScene, pScene->getRootNode(), resources, pGeometryConverter, pNode->GetChild(i));
+        }
+    }
+    
     for(std::map<std::string, KRTexture *>::iterator texture_itr = context.getTextureManager()->getTextures().begin(); texture_itr != context.getTextureManager()->getTextures().end(); texture_itr++) {
         resources.push_back((*texture_itr).second);
     }
     
+    for(std::map<std::string, KRMesh *>::iterator mesh_itr = context.getModelManager()->getModels().begin(); mesh_itr != context.getModelManager()->getModels().end(); mesh_itr++) {
+        resources.push_back((*mesh_itr).second);
+    }
+    
     DestroySdkObjects(lSdkManager);
     
     // Compress textures to PVR format
@@ -727,7 +731,6 @@ void LoadNode(KFbxScene* pFbxScene, KRNode *parent_node, std::vector<KRResource
 //    printf("        Local Rotation:         %f %f %f\n", local_rotation[0], local_rotation[1], local_rotation[2]);
 //    printf("        Local Scaling:          %f %f %f\n", local_scale[0], local_scale[1], local_scale[2]);
     
-    
     KFbxNodeAttribute::EType attribute_type = (pNode->GetNodeAttribute()->GetAttributeType());
     if(attribute_type == KFbxNodeAttribute::eLODGroup) {
         std::string name = GetFbxObjectName(pNode);
@@ -741,6 +744,8 @@ void LoadNode(KFbxScene* pFbxScene, KRNode *parent_node, std::vector<KRResource
             group_min_distance = fbx_lod_group->MinDistance.Get();
             group_max_distance = fbx_lod_group->MinDistance.Get();
         }
+        
+        KRVector3 reference_point;
         // Create a lod_group node for each fbx child node
         int child_count = pNode->GetChildCount();
         for(int i = 0; i < child_count; i++)
@@ -792,6 +797,13 @@ void LoadNode(KFbxScene* pFbxScene, KRNode *parent_node, std::vector<KRResource
             parent_node->addChild(new_node);
             
             LoadNode(pFbxScene, new_node, resources, pGeometryConverter, pNode->GetChild(i));
+            
+            if(i == 0) {
+                // Calculate reference point using the bounding box center from the highest quality LOD level
+                reference_point = new_node->getBounds().center();
+            }
+            
+            new_node->setReferencePoint(new_node->worldToLocal(reference_point));
         }
     } else {
         KRNode *new_node = NULL;
@@ -1279,7 +1291,8 @@ void LoadMesh(KRContext &context, std::vector<KRResource *> &resources, FbxGeome
     
     KRMesh *new_mesh = new KRMesh(context, pSourceMesh->GetNode()->GetName());
     new_mesh->LoadData(vertices, uva, uvb, normals, tangents, submesh_starts, submesh_lengths, material_names, bone_names, bone_indexes, bone_weights,KRMesh::KRENGINE_MODEL_FORMAT_TRIANGLES);
-    resources.push_back(new_mesh);
+    
+    context.getModelManager()->addModel(new_mesh);
 }
 
 KRNode *LoadMesh(KRNode *parent_node, std::vector<KRResource *> &resources, FbxGeometryConverter *pGeometryConverter, KFbxNode* pNode) {
diff --git a/KREngine/kraken/KRScene.cpp b/KREngine/kraken/KRScene.cpp
index 87aec87..9dfea53 100644
--- a/KREngine/kraken/KRScene.cpp
+++ b/KREngine/kraken/KRScene.cpp
@@ -489,3 +489,4 @@ bool KRScene::rayCast(const KRVector3 &v0, const KRVector3 &dir, KRHitInfo &hiti
 {
     return m_nodeTree.rayCast(v0, dir, hitinfo, layer_mask);
 }
+