diff --git a/src/java/org/apache/poi/hssf/model/FormulaParser.java b/src/java/org/apache/poi/hssf/model/FormulaParser.java
index 06c28c9f5..99314bb86 100644
--- a/src/java/org/apache/poi/hssf/model/FormulaParser.java
+++ b/src/java/org/apache/poi/hssf/model/FormulaParser.java
@@ -2,7 +2,7 @@
 /* ====================================================================
  * The Apache Software License, Version 1.1
  *
- * Copyright (c) 2002 The Apache Software Foundation.  All rights
+ * Copyright (c) 2002, 2003 The Apache Software Foundation.  All rights
  * reserved.
  *
  * Redistribution and use in source and binary forms, with or without
@@ -56,12 +56,34 @@
 
 package org.apache.poi.hssf.model;
 
-import org.apache.poi.hssf.record.formula.*;
-import org.apache.poi.hssf.util.SheetReferences;
-
 import java.util.ArrayList;
+import java.util.Iterator;
+import java.util.LinkedList;
 import java.util.List;
 
+import org.apache.poi.hssf.record.formula.AbstractFunctionPtg;
+import org.apache.poi.hssf.record.formula.AddPtg;
+import org.apache.poi.hssf.record.formula.Area3DPtg;
+import org.apache.poi.hssf.record.formula.AreaPtg;
+import org.apache.poi.hssf.record.formula.AttrPtg;
+import org.apache.poi.hssf.record.formula.BoolPtg;
+import org.apache.poi.hssf.record.formula.ConcatPtg;
+import org.apache.poi.hssf.record.formula.DividePtg;
+import org.apache.poi.hssf.record.formula.EqualPtg;
+import org.apache.poi.hssf.record.formula.FuncVarPtg;
+import org.apache.poi.hssf.record.formula.IntPtg;
+import org.apache.poi.hssf.record.formula.MultiplyPtg;
+import org.apache.poi.hssf.record.formula.NumberPtg;
+import org.apache.poi.hssf.record.formula.OperationPtg;
+import org.apache.poi.hssf.record.formula.ParenthesisPtg;
+import org.apache.poi.hssf.record.formula.PowerPtg;
+import org.apache.poi.hssf.record.formula.Ptg;
+import org.apache.poi.hssf.record.formula.Ref3DPtg;
+import org.apache.poi.hssf.record.formula.ReferencePtg;
+import org.apache.poi.hssf.record.formula.StringPtg;
+import org.apache.poi.hssf.record.formula.SubtractPtg;
+import org.apache.poi.hssf.util.SheetReferences;
+
 
 /**
  * This class parses a formula string into a List of tokens in RPN order.
@@ -90,6 +112,12 @@ public class FormulaParser {
     private int formulaLength;
     
     private List tokens = new java.util.Stack();
+    
+    /**
+     * Using an unsynchronized linkedlist to implement a stack since we're not multi-threaded.
+     */
+    private List functionTokens = new LinkedList();
+    
     //private Stack tokens = new java.util.Stack();
     private List result = new ArrayList();
     private int numParen;
@@ -98,6 +126,7 @@ public class FormulaParser {
     private static char CR = '\n';
     
    private char look;              // Lookahead Character
+   private boolean inFunction = false;
    
    private Workbook book;
     
@@ -297,25 +326,140 @@ public class FormulaParser {
         }
     }
     
+    /**
+     * Adds a pointer to the last token to the latest function argument list.
+     * @param obj
+     */
+    private void addArgumentPointer() {
+		if (this.functionTokens.size() > 0) {
+			//no bounds check because this method should not be called unless a token array is setup by function()
+			List arguments = (List)this.functionTokens.get(0);
+			arguments.add(tokens.get(tokens.size()-1));
+		}
+    }
+    
     private void function(String name) {
+    	//average 2 args per function
+    	this.functionTokens.add(0, new ArrayList(2));
+    	
         Match('(');
         int numArgs = Arguments();
         Match(')');
-        tokens.add(getFunction(name,(byte)numArgs));
+                
+        Ptg functionPtg = getFunction(name,(byte)numArgs);
+        
+		tokens.add(functionPtg);
+ 
+ 		//remove what we just put in
+		this.functionTokens.remove(0);
     }
     
+    /**
+     * Adds the size of all the ptgs after the provided index (inclusive).
+     * <p>
+     * Initially used to count a goto
+     * @param index
+     * @return int
+     */
+    private int getPtgSize(int index) {
+    	int count = 0;
+    	
+    	Iterator ptgIterator = tokens.listIterator(index);
+    	while (ptgIterator.hasNext()) {
+    		Ptg ptg = (Ptg)ptgIterator.next();
+    		count+=ptg.getSize();
+    	}
+    	
+    	return count;
+    }
+    
+    private int getPtgSize(int start, int end) {
+		int count = 0;
+    	int index = start;
+		Iterator ptgIterator = tokens.listIterator(index);
+		while (ptgIterator.hasNext() && index <= end) {
+			Ptg ptg = (Ptg)ptgIterator.next();
+			count+=ptg.getSize();
+			index++;
+		}
+    	
+		return count;
+    }
+    
+    /**
+     * Generates the variable function ptg for the formula.
+     * <p>
+     * For IF Formulas, additional PTGs are added to the tokens 
+     * @param name
+     * @param numArgs
+     * @return Ptg a null is returned if we're in an IF formula, it needs extreme manipulation and is handled in this function
+     */
     private Ptg getFunction(String name,byte numArgs) {
         Ptg retval = null;
-        //retval = new FuncVarPtg(name,numArgs);
-       if (name.equals("IF")) {
-            AttrPtg ptg = new AttrPtg();
-            ptg.setData((short)6); //sums don't care but this is what excel does.
-            ptg.setOptimizedIf(true);
-            retval = ptg;
-        } else {
-            retval = new FuncVarPtg(name,numArgs);
-        }
         
+       if (name.equals("IF")) {			
+			retval = new FuncVarPtg(AbstractFunctionPtg.ATTR_NAME, numArgs);
+			
+			//simulated pop, no bounds checking because this list better be populated by function()       	
+			List argumentPointers = (List)this.functionTokens.get(0);
+
+			
+            AttrPtg ifPtg = new AttrPtg();
+			ifPtg.setData((short)7); //mirroring excel output
+			ifPtg.setOptimizedIf(true);
+		
+            if (argumentPointers.size() != 2  && argumentPointers.size() != 3) {
+            	throw new IllegalArgumentException("["+argumentPointers.size()+"] Arguments Found - An IF formula requires 2 or 3 arguments. IF(CONDITION, TRUE_VALUE, FALSE_VALUE [OPTIONAL]");            	
+            }
+            
+            //Biffview of an IF formula record indicates the attr ptg goes after the condition ptgs and are
+            //tracked in the argument pointers
+            //The beginning first argument pointer is the last ptg of the condition
+            int ifIndex = tokens.indexOf(argumentPointers.get(0))+1;
+            tokens.add(ifIndex, ifPtg);
+             
+            //we now need a goto ptgAttr to skip to the end of the formula after a true condition
+            //the true condition is should be inserted after the last ptg in the first argument
+			 
+			int gotoIndex = tokens.indexOf(argumentPointers.get(1))+1;
+			
+			AttrPtg goto1Ptg = new AttrPtg();
+			goto1Ptg.setGoto(true);
+			
+						
+			tokens.add(gotoIndex, goto1Ptg);
+            
+            
+            if (numArgs > 2) { //only add false jump if there is a false condition
+            
+	            //second goto to skip past the function ptg
+	            AttrPtg goto2Ptg = new AttrPtg();
+	            goto2Ptg.setGoto(true);            
+	            goto2Ptg.setData((short)(retval.getSize()-1));
+				//Page 472 of the Microsoft Excel Developer's kit states that:
+				//The b(or w) field specifies the number byes (or words to skip, minus 1
+	            
+	            tokens.add(goto2Ptg); //this goes after all the arguments are defined
+            }
+            
+            //data portion of the if ptg points to the false subexpression (Page 472 of MS Excel Developer's kit)
+            //count the number of bytes after the ifPtg to the False Subexpression
+            //doesn't specify -1 in the documentation
+			ifPtg.setData((short)(getPtgSize(ifIndex+1, gotoIndex)));            
+            
+            //count all the additional (goto) ptgs but dont count itself
+			int ptgCount = this.getPtgSize(gotoIndex)-goto1Ptg.getSize()+retval.getSize();
+			if (ptgCount > (int)Short.MAX_VALUE) {
+				throw new RuntimeException("Ptg Size exceeds short when being specified for a goto ptg in an if");
+			}
+			
+			goto1Ptg.setData((short)(ptgCount-1));
+			
+        } else {
+        	
+			retval = new FuncVarPtg(name,numArgs);
+        }
+		
         return retval; 
     }
     
@@ -451,6 +595,8 @@ public class FormulaParser {
             if (look == '*') Multiply();
             if (look == '/') Divide();
         }
+        addArgumentPointer();
+        
     }
     
     
diff --git a/src/java/org/apache/poi/hssf/record/formula/AbstractFunctionPtg.java b/src/java/org/apache/poi/hssf/record/formula/AbstractFunctionPtg.java
index 17004fbe7..6dcb7ef0f 100644
--- a/src/java/org/apache/poi/hssf/record/formula/AbstractFunctionPtg.java
+++ b/src/java/org/apache/poi/hssf/record/formula/AbstractFunctionPtg.java
@@ -1,3 +1,56 @@
+/* ====================================================================
+ * The Apache Software License, Version 1.1
+ *
+ * Copyright (c) 2002, 2003 The Apache Software Foundation.  All rights
+ * reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions
+ * are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright
+ *    notice, this list of conditions and the following disclaimer.
+ *
+ * 2. Redistributions in binary form must reproduce the above copyright
+ *    notice, this list of conditions and the following disclaimer in
+ *    the documentation and/or other materials provided with the
+ *    distribution.
+ *
+ * 3. The end-user documentation included with the redistribution,
+ *    if any, must include the following acknowledgment:
+ *       "This product includes software developed by the
+ *        Apache Software Foundation (http://www.apache.org/)."
+ *    Alternately, this acknowledgment may appear in the software itself,
+ *    if and wherever such third-party acknowledgments normally appear.
+ *
+ * 4. The names "Apache" and "Apache Software Foundation" and
+ *    "Apache POI" must not be used to endorse or promote products
+ *    derived from this software without prior written permission. For
+ *    written permission, please contact apache@apache.org.
+ *
+ * 5. Products derived from this software may not be called "Apache",
+ *    "Apache POI", nor may "Apache" appear in their name, without
+ *    prior written permission of the Apache Software Foundation.
+ *
+ * THIS SOFTWARE IS PROVIDED ``AS IS'' AND ANY EXPRESSED OR IMPLIED
+ * WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
+ * OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE APACHE SOFTWARE FOUNDATION OR
+ * ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ * SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ * LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF
+ * USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND
+ * ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY,
+ * OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT
+ * OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF
+ * SUCH DAMAGE.
+ * ====================================================================
+ *
+ * This software consists of voluntary contributions made by many
+ * individuals on behalf of the Apache Software Foundation.  For more
+ * information on the Apache Software Foundation, please see
+ * <http://www.apache.org/>.
+ */
 package org.apache.poi.hssf.record.formula;
 
 import org.apache.poi.util.BinaryTree;
@@ -13,7 +66,9 @@ import java.util.Stack;
  * @author Andrew C. Oliver (acoliver at apache dot org)
  */
 public abstract class AbstractFunctionPtg extends OperationPtg {
-    
+	//constant used allow a ptgAttr to be mapped properly for its functionPtg
+	public static final String ATTR_NAME = "specialflag";
+	    
     private final static int  SIZE = 4;    
     
     private static BinaryTree map = produceHash(); 
diff --git a/src/java/org/apache/poi/hssf/record/formula/AttrPtg.java b/src/java/org/apache/poi/hssf/record/formula/AttrPtg.java
index b87e25069..bd7ede88f 100644
--- a/src/java/org/apache/poi/hssf/record/formula/AttrPtg.java
+++ b/src/java/org/apache/poi/hssf/record/formula/AttrPtg.java
@@ -2,7 +2,7 @@
 /* ====================================================================
  * The Apache Software License, Version 1.1
  *
- * Copyright (c) 2002 The Apache Software Foundation.  All rights
+ * Copyright (c) 2002, 2003 The Apache Software Foundation.  All rights
  * reserved.
  *
  * Redistribution and use in source and binary forms, with or without
@@ -144,6 +144,14 @@ public class AttrPtg
         field_1_options=optiIf.setByteBoolean(field_1_options,bif);
     }
 
+	/**
+	 * Flags this ptg as a goto/jump 
+	 * @param isGoto
+	 */
+	public void setGoto(boolean isGoto) {
+		field_1_options=optGoto.setByteBoolean(field_1_options, isGoto);
+	}
+	
     // lets hope no one uses this anymore
     public boolean isBaxcel()
     {
diff --git a/src/testcases/org/apache/poi/hssf/model/TestFormulaParser.java b/src/testcases/org/apache/poi/hssf/model/TestFormulaParser.java
index 833eabd8b..6c82ec76f 100644
--- a/src/testcases/org/apache/poi/hssf/model/TestFormulaParser.java
+++ b/src/testcases/org/apache/poi/hssf/model/TestFormulaParser.java
@@ -1,3 +1,56 @@
+/* ====================================================================
+ * The Apache Software License, Version 1.1
+ *
+ * Copyright (c) 2002, 2003 The Apache Software Foundation.  All rights
+ * reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions
+ * are met:
+ *
+ * 1. Redistributions of source code must retain the above copyright
+ *    notice, this list of conditions and the following disclaimer.
+ *
+ * 2. Redistributions in binary form must reproduce the above copyright
+ *    notice, this list of conditions and the following disclaimer in
+ *    the documentation and/or other materials provided with the
+ *    distribution.
+ *
+ * 3. The end-user documentation included with the redistribution,
+ *    if any, must include the following acknowledgment:
+ *       "This product includes software developed by the
+ *        Apache Software Foundation (http://www.apache.org/)."
+ *    Alternately, this acknowledgment may appear in the software itself,
+ *    if and wherever such third-party acknowledgments normally appear.
+ *
+ * 4. The names "Apache" and "Apache Software Foundation" and
+ *    "Apache POI" must not be used to endorse or promote products
+ *    derived from this software without prior written permission. For
+ *    written permission, please contact apache@apache.org.
+ *
+ * 5. Products derived from this software may not be called "Apache",
+ *    "Apache POI", nor may "Apache" appear in their name, without
+ *    prior written permission of the Apache Software Foundation.
+ *
+ * THIS SOFTWARE IS PROVIDED ``AS IS'' AND ANY EXPRESSED OR IMPLIED
+ * WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
+ * OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
+ * DISCLAIMED.  IN NO EVENT SHALL THE APACHE SOFTWARE FOUNDATION OR
+ * ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ * SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ * LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF
+ * USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND
+ * ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY,
+ * OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT
+ * OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF
+ * SUCH DAMAGE.
+ * ====================================================================
+ *
+ * This software consists of voluntary contributions made by many
+ * individuals on behalf of the Apache Software Foundation.  For more
+ * information on the Apache Software Foundation, please see
+ * <http://www.apache.org/>.
+ */
 package org.apache.poi.hssf.model;
 
 import junit.framework.TestCase;
@@ -80,20 +133,95 @@ public class TestFormulaParser extends TestCase {
         FormulaParser fp = new FormulaParser(yn, null);
         fp.parse();
         Ptg[] asts = fp.getRPNPtg();
-        assertEquals(4, asts.length);
+        assertEquals(7, asts.length);
 
         BoolPtg flag  = (BoolPtg) asts[0];
-        StringPtg y = (StringPtg) asts[1];
-        StringPtg n = (StringPtg) asts[2];
-        AttrPtg funif = (AttrPtg) asts[3];
+		AttrPtg funif = (AttrPtg) asts[1];
+        StringPtg y = (StringPtg) asts[2];
+		AttrPtg goto1 = (AttrPtg) asts[3];
+        StringPtg n = (StringPtg) asts[4];
+
 
         assertEquals(true, flag.getValue());
         assertEquals("Y", y.getValue());
         assertEquals("N", n.getValue());
         assertEquals("IF", funif.toFormulaString(new SheetReferences()));
+        assertTrue("Goto ptg exists", goto1.isGoto());
     }
 
+	public void testSimpleIf() throws Exception {
+		final String simpleif = "IF(1=1,0,1)";
+		FormulaParser fp = new FormulaParser(simpleif, null);
+		fp.parse();
+		Ptg[] asts = fp.getRPNPtg();
+		assertEquals(9, asts.length);
+		
+		IntPtg op1 = (IntPtg) asts[0];
+		IntPtg op2 = (IntPtg) asts[1];
+		EqualPtg eq = (EqualPtg) asts[2];		
+		AttrPtg ifPtg = (AttrPtg) asts[3];
+		IntPtg res1 = (IntPtg) asts[4];
+				
+		AttrPtg ptgGoto= (AttrPtg) asts[5];		
+		assertEquals("Goto 1 Length", (short)10, ptgGoto.getData());
+		
+		IntPtg res2 = (IntPtg) asts[6];		
+		AttrPtg ptgGoto2 = (AttrPtg) asts[7];		
+		assertEquals("Goto 2 Length", (short)3, ptgGoto2.getData());
+		
+		assertEquals("If FALSE offset", (short)7, ifPtg.getData());
+		
+		FuncVarPtg funcPtg = (FuncVarPtg)asts[8];
+		
+		
+	}
     
+	/**
+	 * Make sure the ptgs are generated properly with two functions embedded
+	 *
+	 */
+	public void testNestedFunctionIf() {
+		String function = "IF(A1=B1,AVERAGE(A1:B1),AVERAGE(A2:B2))";
+
+		FormulaParser fp = new FormulaParser(function, null);
+		fp.parse();
+		Ptg[] asts = fp.getRPNPtg();
+		assertEquals("11 Ptgs expected", 11, asts.length);
+
+		assertTrue("IF Attr set correctly", (asts[3] instanceof AttrPtg));
+		AttrPtg ifFunc = (AttrPtg)asts[3];
+		assertTrue("It is not an if", ifFunc.isOptimizedIf());
+		
+		assertTrue("Average Function set correctly", (asts[5] instanceof FuncVarPtg));
+		
+				    	
+	}
+	
+	public void testIfSingleCondition(){
+		String function = "IF(1=1,10)";
+
+		FormulaParser fp = new FormulaParser(function, null);
+		fp.parse();
+		Ptg[] asts = fp.getRPNPtg();
+		assertEquals("7 Ptgs expected", 7, asts.length);
+
+		assertTrue("IF Attr set correctly", (asts[3] instanceof AttrPtg));
+		AttrPtg ifFunc = (AttrPtg)asts[3];
+		assertTrue("It is not an if", ifFunc.isOptimizedIf());
+		
+		assertTrue("Single Value is not an IntPtg", (asts[4] instanceof IntPtg));
+		IntPtg intPtg = (IntPtg)asts[4];
+		assertEquals("Result", (short)10, intPtg.getValue());
+		
+		assertTrue("Ptg is not a Variable Function", (asts[6] instanceof FuncVarPtg));
+		FuncVarPtg funcPtg = (FuncVarPtg)asts[6];
+		assertEquals("Arguments", 2, funcPtg.getNumberOfOperands());
+		
+						
+		
+		
+	}
+	    
      public static void main(String [] args) {
         System.out.println("Testing org.apache.poi.hssf.record.formula.FormulaParser");
         junit.textui.TestRunner.run(TestFormulaParser.class);
diff --git a/src/testcases/org/apache/poi/hssf/usermodel/TestFormulas.java b/src/testcases/org/apache/poi/hssf/usermodel/TestFormulas.java
index 0df72a734..bab97e1d2 100644
--- a/src/testcases/org/apache/poi/hssf/usermodel/TestFormulas.java
+++ b/src/testcases/org/apache/poi/hssf/usermodel/TestFormulas.java
@@ -2,7 +2,7 @@
 /* ====================================================================
  * The Apache Software License, Version 1.1
  *
- * Copyright (c) 2002 The Apache Software Foundation.  All rights
+ * Copyright (c) 2002, 2003 The Apache Software Foundation.  All rights
  * reserved.
  *
  * Redistribution and use in source and binary forms, with or without
@@ -894,7 +894,7 @@ extends TestCase {
             
     }
 
-/*    
+    
     public void testIfFormulas()
         throws java.io.IOException
     {
@@ -935,9 +935,56 @@ extends TestCase {
             assertTrue("expected: IF(A3=A1,\"A1\",\"A2\") got "+c.getCellFormula(), ("IF(A3=A1,\"A1\",\"A2\")").equals(c.getCellFormula()));
             //c = r.getCell((short)1);
             //assertTrue("expected: A!A1+A!B1 got: "+c.getCellFormula(), ("A!A1+A!B1").equals(c.getCellFormula()));
-            in.close(); 
+            in.close();
+            
+		File simpleIf = File.createTempFile("testSimpleIfFormulaWrite",".xls");
+		out    = new FileOutputStream(simpleIf);
+		wb     = new HSSFWorkbook();
+		s      = wb.createSheet("Sheet1");
+		r      = null;
+		c      = null;
+		r = s.createRow((short)0);
+		c=r.createCell((short)0); c.setCellFormula("IF(1=1,0,1)");
+            
+		wb.write(out);
+		out.close();
+		assertTrue("file exists", simpleIf.exists());
+			
+		assertTrue("length of simpleIf file is zero", (simpleIf.length()>0));
+			
+		File nestedIf = File.createTempFile("testNestedIfFormula",".xls");
+		out    = new FileOutputStream(nestedIf);
+		wb     = new HSSFWorkbook();
+		s      = wb.createSheet("Sheet1");
+		r      = null;
+		c      = null;
+		r = s.createRow((short)0);
+		c=r.createCell((short)0);
+		c.setCellValue(1);
+
+		c=r.createCell((short)1);
+		c.setCellValue(3);
+
+			
+		HSSFCell formulaCell=r.createCell((short)3); 
+
+		r = s.createRow((short)1);
+		c=r.createCell((short)0);
+		c.setCellValue(3);
+
+		c=r.createCell((short)1);
+		c.setCellValue(7);
+
+		formulaCell.setCellFormula("IF(A1=B1,AVERAGE(A1:B1),AVERAGE(A2:B2))");
+
+            
+		wb.write(out);
+		out.close();
+		assertTrue("file exists", nestedIf.exists());
+			
+		assertTrue("length of nestedIf file is zero", (nestedIf.length()>0));             
     }
-*/
+
     
     public static void main(String [] args) {
         System.out