diff --git a/source/blender/render/intern/include/rayobject.h b/source/blender/render/intern/include/rayobject.h
index 2c63c8ceae9..b058f260052 100644
--- a/source/blender/render/intern/include/rayobject.h
+++ b/source/blender/render/intern/include/rayobject.h
@@ -78,9 +78,11 @@ extern "C" {
  */
 
 /* defines where coordinates of rayface primitives are stored */
-//#define RE_RAYFACE_COORDS_LOCAL
+#define RE_RAYFACE_COORDS_LOCAL
+
+//(ATM this won't work good with all types of instances)
 //#define RE_RAYFACE_COORDS_POINTER
-#define RE_RAYFACE_COORDS_VLAKREN
+//#define RE_RAYFACE_COORDS_VLAKREN
  
 typedef struct RayFace
 {
diff --git a/source/blender/render/intern/source/rayobject.c b/source/blender/render/intern/source/rayobject.c
index 5639080c406..bc98e7e0467 100644
--- a/source/blender/render/intern/source/rayobject.c
+++ b/source/blender/render/intern/source/rayobject.c
@@ -188,6 +188,7 @@ static int intersect_rayface(RayFace *face, Isect *is)
 #ifdef RE_RAYFACE_COORDS_VLAKREN
 	{
 		VlakRen	*vlr = (VlakRen*)face->face;
+		
 		VECCOPY(co1, vlr->v1->co);
 		VECCOPY(co2, vlr->v2->co);
 		if(vlr->v4)
diff --git a/source/blender/render/intern/source/rayshade.c b/source/blender/render/intern/source/rayshade.c
index a71d45b871c..fe76fa07433 100644
--- a/source/blender/render/intern/source/rayshade.c
+++ b/source/blender/render/intern/source/rayshade.c
@@ -180,6 +180,7 @@ static int is_raytraceable(Render *re, ObjectInstanceRen *obi)
 	return 0;
 }
 
+
 RayObject* makeraytree_object(Render *re, ObjectInstanceRen *obi)
 {
 	//TODO
@@ -283,6 +284,26 @@ static void makeraytree_hier(Render *re)
 	re->stats_draw(re->sdh, &re->i);
 }
 
+static int has_special_rayobject(Render *re, ObjectInstanceRen *obi)
+{
+	if( (obi->flag & R_TRANSFORMED) )
+	{
+		ObjectRen *obr = obi->obr;
+		int v, faces = 0;
+		
+		for(v=0;v<obr->totvlak;v++)
+		{
+			VlakRen *vlr = obr->vlaknodes[v>>8].vlak + (v&255);
+			if(is_raytraceable_vlr(re, vlr))
+			{
+				faces++;
+				if(faces > 4)
+					return 1;
+			}
+		}
+	}
+	return 0;
+}
 /*
  * create a single raytrace structure with all faces
  */
@@ -300,7 +321,7 @@ static void makeraytree_single(Render *re)
 		ObjectRen *obr = obi->obr;
 		obs++;
 		
-		if(obi->flag & R_TRANSFORMED)
+		if(has_special_rayobject(re, obi))
 		{
 			faces++;
 		}
@@ -326,7 +347,7 @@ static void makeraytree_single(Render *re)
 	for(obi=re->instancetable.first; obi; obi=obi->next)
 	if(is_raytraceable(re, obi))
 	{
-		if(obi->flag & R_TRANSFORMED)
+		if(has_special_rayobject(re, obi))
 		{
 			RayObject *obj = makeraytree_object(re, obi);
 			RE_rayobject_add( re->raytree, obj );
@@ -342,6 +363,15 @@ static void makeraytree_single(Render *re)
 				if(is_raytraceable_vlr(re, vlr))
 				{
 					RE_rayface_from_vlak(face, obi, vlr);
+					if((obi->flag & R_TRANSFORMED))
+					{
+						Mat4MulVecfl(obi->mat, face->v1);
+						Mat4MulVecfl(obi->mat, face->v2);
+						Mat4MulVecfl(obi->mat, face->v3);
+						if(RE_rayface_isQuad(face))
+							Mat4MulVecfl(obi->mat, face->v4);
+					}
+
 					RE_rayobject_add( raytree, RayObject_unalignRayFace(face) );
 					face++;
 				}