diff --git a/Dockerfile b/Dockerfile
index 36e821bd..1f0db1f9 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,11 +1,6 @@
 FROM node:6.9
 MAINTAINER Paris Kasidiaris <paris@sourcelair.com>
 
-# Install cpio, used for building
-RUN apt-get update \
-    && apt-get install -y --no-install-recommends cpio \
-    && rm -rf /var/lib/apt/lists/*
-
 # Set the working directory
 WORKDIR /usr/src/app
 
diff --git a/bin/build b/bin/build
deleted file mode 100755
index a01a1b9f..00000000
--- a/bin/build
+++ /dev/null
@@ -1,36 +0,0 @@
-#! /usr/bin/env bash
-
-set -e
-
-# $BUILD_DIR should default to "build"
-BUILD_DIR=${BUILD_DIR:=build}
-
-# Create the build directory
-mkdir -p $BUILD_DIR
-
-
-# Clean lib/* to prevent confusion if files were deleted in src/
-rm -rf lib/*
-
-# Build all TypeScript files (including tests) to lib/
-tsc
-
-# Concat all xterm.js files into a single file and output as a UMD to $BUILD_DIR/xterm.js
-browserify ./lib/xterm.js --standalone Terminal --debug --outfile ./$BUILD_DIR/xterm.js
-cat ./$BUILD_DIR/xterm.js | exorcist ./$BUILD_DIR/xterm.js.map -b ./$BUILD_DIR > ./$BUILD_DIR/xterm.temp.js
-rm ./$BUILD_DIR/xterm.js
-mv ./$BUILD_DIR/xterm.temp.js ./$BUILD_DIR/xterm.js
-
-# Resolve the chain of sourcemaps so that ./$BUILD_DIR/xterm.js.map points at ./src
-sorcery -i $BUILD_DIR/xterm.js
-
-# Copy all CSS files from src/ to $BUILD_DIR/ and lib/
-cd src
-find . -name '*.css' | cpio -pdm ../$BUILD_DIR
-find . -name '*.css' | cpio -pdm ../lib
-cd ..
-
-# Copy addons from lib/ to $BUILD_DIR/
-cd lib/addons
-find . -name '*.js' | cpio -pdm ../../$BUILD_DIR/addons
-cd ../..
diff --git a/bin/prepare-release b/bin/prepare-release
index 6bd39d3d..464e65b4 100755
--- a/bin/prepare-release
+++ b/bin/prepare-release
@@ -21,7 +21,7 @@ CURRENT_BOWER_JSON_VERSION=$(cat bower.json \
 
 # Build xterm.js into `dist`
 export BUILD_DIR=dist
-./bin/build
+npm run build
 
 # Update AUTHORS file
 sh bin/generate-authors
diff --git a/demo/app.js b/demo/app.js
index a4122ace..3439ea99 100644
--- a/demo/app.js
+++ b/demo/app.js
@@ -2,7 +2,7 @@ var express = require('express');
 var app = express();
 var expressWs = require('express-ws')(app);
 var os = require('os');
-var pty = require('pty.js');
+var pty = require('node-pty');
 
 var terminals = {},
     logs = {};
diff --git a/demo/index.html b/demo/index.html
index 285fe002..764c8442 100644
--- a/demo/index.html
+++ b/demo/index.html
@@ -16,7 +16,12 @@
         <div id="terminal-container"></div>
         <div>
           <h2>Options</h2>
-          <label><input type="checkbox" id="option-cursor-blink"> cursorBlink</label>
+          <p>
+            <label><input type="checkbox" id="option-cursor-blink"> cursorBlink</label>
+          </p>
+          <p>
+            <label>Scrollback <input type="number" id="option-scrollback" value="1000" /></label>
+          </p>
           <div>
           	<h3>Size</h3>
             <div>
diff --git a/demo/main.js b/demo/main.js
index 86fbd314..078b5c8d 100644
--- a/demo/main.js
+++ b/demo/main.js
@@ -8,7 +8,8 @@ var term,
 
 var terminalContainer = document.getElementById('terminal-container'),
     optionElements = {
-      cursorBlink: document.querySelector('#option-cursor-blink')
+      cursorBlink: document.querySelector('#option-cursor-blink'),
+      scrollback: document.querySelector('#option-scrollback')
     },
     colsElement = document.getElementById('cols'),
     rowsElement = document.getElementById('rows');
@@ -27,7 +28,12 @@ function setTerminalSize () {
 colsElement.addEventListener('change', setTerminalSize);
 rowsElement.addEventListener('change', setTerminalSize);
 
-optionElements.cursorBlink.addEventListener('change', createTerminal);
+optionElements.cursorBlink.addEventListener('change', function () {
+  term.setOption('cursorBlink', optionElements.cursorBlink.checked);
+});
+optionElements.scrollback.addEventListener('change', function () {
+  terminal.setOption('scrollback', parseInt(optionElements.scrollback.value, 10));
+});
 
 createTerminal();
 
@@ -37,7 +43,8 @@ function createTerminal() {
     terminalContainer.removeChild(terminalContainer.children[0]);
   }
   term = new Terminal({
-    cursorBlink: optionElements.cursorBlink.checked
+    cursorBlink: optionElements.cursorBlink.checked,
+    scrollback: parseInt(optionElements.scrollback.value, 10)
   });
   term.on('resize', function (size) {
     if (!pid) {
@@ -78,7 +85,6 @@ function createTerminal() {
   });
 }
 
-
 function runRealTerminal() {
   term.attach(socket);
   term._initialized = true;
diff --git a/gulpfile.js b/gulpfile.js
new file mode 100644
index 00000000..144b8831
--- /dev/null
+++ b/gulpfile.js
@@ -0,0 +1,87 @@
+const browserify = require('browserify');
+const buffer = require('vinyl-buffer');
+const fs = require('fs-extra');
+const gulp = require('gulp');
+const merge = require('merge-stream');
+const sorcery = require('sorcery');
+const source = require('vinyl-source-stream');
+const sourcemaps = require('gulp-sourcemaps');
+const ts = require('gulp-typescript');
+const tsify = require('tsify');
+
+
+let buildDir = process.env.BUILD_DIR || 'build';
+
+
+/**
+ * Compile TypeScript sources to JavaScript files and create a source map file for each TypeScript
+ * file compiled.
+ */
+gulp.task('tsc', function () {
+  // Remove the lib/ directory to prevent confusion if files were deleted in src/
+  fs.emptyDirSync('lib');
+
+  // Build all TypeScript files (including tests) to lib/, based on the configuration defined in
+  // `tsconfig.json`.
+  let tsProject = ts.createProject('tsconfig.json');
+  let tsResult = tsProject.src().pipe(sourcemaps.init()).pipe(tsProject());
+  let tsc = tsResult.js.pipe(sourcemaps.write('.', {includeContent: false, sourceRoot: ''})).pipe(gulp.dest('lib'));
+
+  // Copy all addons from src/ to lib/
+  let copyAddons = gulp.src('src/addons/**/*').pipe(gulp.dest('lib/addons'));
+
+  // Copy stylesheets from src/ to lib/
+  let copyStylesheets = gulp.src('src/**/*.css').pipe(gulp.dest('lib'));
+
+  return merge(tsc, copyAddons, copyStylesheets);
+});
+
+/**
+ * Bundle JavaScript files produced by the `tsc` task, into a single file named `xterm.js` with
+ * Browserify.
+ */
+gulp.task('browserify', ['tsc'], function() {
+  // Ensure that the build directory exists
+  fs.ensureDirSync(buildDir);
+
+  let browserifyOptions = {
+    basedir: buildDir,
+    debug: true,
+    entries: ['../lib/xterm.js'],
+    standalone: 'Terminal',
+    cache: {},
+    packageCache: {}
+  };
+  let bundleStream = browserify(browserifyOptions)
+        .plugin(tsify)
+        .bundle()
+        .pipe(source('xterm.js'))
+        .pipe(buffer())
+        .pipe(sourcemaps.init({loadMaps: true, sourceRoot: '..'}))
+        .pipe(sourcemaps.write('./'))
+        .pipe(gulp.dest(buildDir));
+
+  // Copy all add-ons from lib/ to buildDir
+  let copyAddons = gulp.src('lib/addons/**/*').pipe(gulp.dest(`${buildDir}/addons`));
+
+  // Copy stylesheets from src/ to lib/
+  let copyStylesheets = gulp.src('lib/**/*.css').pipe(gulp.dest(buildDir));
+
+  return merge(bundleStream, copyAddons, copyStylesheets);
+});
+
+
+/**
+ * Use `sorcery` to resolve the source map chain and point back to the TypeScript files.
+ * (Without this task the source maps produced for the JavaScript bundle points into the
+ * compiled JavaScript files in lib/).
+ */
+gulp.task('sorcery', ['browserify'], function () {
+  var chain = sorcery.loadSync(`${buildDir}/xterm.js`);
+  var map = chain.apply();
+  chain.writeSync();
+});
+
+gulp.task('build', ['sorcery']);
+
+gulp.task('default', ['build']);
diff --git a/package.json b/package.json
index 734bb6fb..67eb824d 100644
--- a/package.json
+++ b/package.json
@@ -38,18 +38,26 @@
     "browserify": "^13.1.0",
     "chai": "3.5.0",
     "docdash": "0.4.0",
-    "exorcist": "^0.4.0",
     "express": "4.13.4",
     "express-ws": "2.0.0-rc.1",
+    "fs-extra": "^1.0.0",
     "glob": "^7.0.5",
+    "gulp": "^3.9.1",
+    "gulp-cli": "^1.2.2",
+    "gulp-sourcemaps": "1.9.1",
+    "gulp-typescript": "^3.1.3",
     "jsdoc": "3.4.3",
+    "merge-stream": "^1.0.1",
     "mocha": "2.5.3",
+    "node-pty": "^0.4.1",
     "nodemon": "1.10.2",
-    "pty.js": "0.3.1",
     "sleep": "^3.0.1",
     "sorcery": "^0.10.0",
+    "tsify": "^3.0.0",
     "tslint": "^4.0.2",
-    "typescript": "^2.0.3"
+    "typescript": "^2.0.3",
+    "vinyl-buffer": "^1.0.0",
+    "vinyl-source-stream": "^1.1.0"
   },
   "scripts": {
     "prestart": "npm run build",
@@ -58,7 +66,7 @@
     "lint": "tslint src/**/*.ts",
     "test": "mocha --recursive ./lib",
     "build:docs": "jsdoc -c jsdoc.json",
-    "build": "./bin/build",
+    "build": "gulp build",
     "prepublish": "npm run build"
   }
 }
diff --git a/src/test/escape-sequences-test.js b/src/test/escape-sequences-test.js
index e9183ccf..6c64b562 100644
--- a/src/test/escape-sequences-test.js
+++ b/src/test/escape-sequences-test.js
@@ -1,6 +1,6 @@
 var glob = require('glob');
 var fs = require('fs');
-var pty = require('pty.js');
+var pty = require('node-pty');
 var sleep = require('sleep');
 var Terminal = require('../xterm');
 
diff --git a/src/test/test.js b/src/test/test.js
index 7c716b2a..4f9342e5 100644
--- a/src/test/test.js
+++ b/src/test/test.js
@@ -23,6 +23,11 @@ describe('xterm.js', function() {
       xterm.writeBuffer.push(data);
       xterm.innerWrite();
     };
+    xterm.element = {
+      classList: {
+        toggle: function(){}
+      }
+    };
   });
 
   describe('getOption', function() {
diff --git a/src/xterm.css b/src/xterm.css
index 3f4f4bbe..4ef61fdf 100644
--- a/src/xterm.css
+++ b/src/xterm.css
@@ -82,11 +82,11 @@
     background-color: transparent;
 }
 
-.terminal.focus .terminal-cursor.blinking {
-    animation: blink-cursor 1.2s infinite step-end;
+.terminal.focus.xterm-cursor-blink .terminal-cursor {
+    animation: cursor-blink 1.2s infinite step-end;
 }
 
-@keyframes blink-cursor {
+@keyframes cursor-blink {
     0% {
         background-color: #fff;
         color: #000;
diff --git a/src/xterm.js b/src/xterm.js
index b3ecdf8d..40de418a 100644
--- a/src/xterm.js
+++ b/src/xterm.js
@@ -10,15 +10,15 @@
  * @license MIT
  */
 
-import { CompositionHelper } from './CompositionHelper.js';
-import { EventEmitter } from './EventEmitter.js';
-import { Viewport } from './Viewport.js';
-import { rightClickHandler, pasteHandler, copyHandler } from './handlers/Clipboard.js';
-import { CircularList } from './utils/CircularList.js';
+import { CompositionHelper } from './CompositionHelper';
+import { EventEmitter } from './EventEmitter';
+import { Viewport } from './Viewport';
+import { rightClickHandler, pasteHandler, copyHandler } from './handlers/Clipboard';
+import { CircularList } from './utils/CircularList';
 import { C0 } from './EscapeSequences';
 import { InputHandler } from './InputHandler';
 import { Parser } from './Parser';
-import { CharMeasure } from './utils/CharMeasure.js';
+import { CharMeasure } from './utils/CharMeasure';
 import * as Browser from './utils/Browser';
 import * as Keyboard from './utils/Keyboard';
 import { CHARSETS } from './Charsets';
@@ -410,8 +410,29 @@ Terminal.prototype.setOption = function(key, value) {
   if (!(key in Terminal.defaults)) {
     throw new Error('No option with key "' + key + '"');
   }
+  switch (key) {
+    case 'scrollback':
+      if (this.options[key] !== value) {
+        if (this.lines.length > value) {
+          const amountToTrim = this.lines.length - value;
+          const needsRefresh = (this.ydisp - amountToTrim < 0);
+          this.lines.trimStart(amountToTrim);
+          this.ybase = Math.max(this.ybase - amountToTrim, 0);
+          this.ydisp = Math.max(this.ydisp - amountToTrim, 0);
+          if (needsRefresh) {
+            this.refresh(0, this.rows - 1);
+          }
+        }
+        this.lines.maxLength = value;
+        this.viewport.syncScrollArea();
+      }
+      break;
+  }
   this[key] = value;
   this.options[key] = value;
+  switch (key) {
+    case 'cursorBlink': this.element.classList.toggle('xterm-cursor-blink', value); break;
+  }
 };
 
 /**
@@ -509,7 +530,11 @@ Terminal.bindKeys = function(term) {
     term.keyPress(ev);
   }, true);
 
-  on(term.element, 'keyup', term.focus.bind(term));
+  on(term.element, 'keyup', function(ev) {
+    if (!wasMondifierKeyOnlyEvent(ev)) {
+      term.focus(term);
+    }
+  }, true);
 
   on(term.textarea, 'keydown', function(ev) {
     term.keyDown(ev);
@@ -568,6 +593,7 @@ Terminal.prototype.open = function(parent) {
   this.element.classList.add('terminal');
   this.element.classList.add('xterm');
   this.element.classList.add('xterm-theme-' + this.theme);
+  this.element.classList.toggle('xterm-cursor-blink', this.options.cursorBlink);
 
   this.element.style.height
   this.element.setAttribute('tabindex', 0);
@@ -619,7 +645,7 @@ Terminal.prototype.open = function(parent) {
   }
   this.parent.appendChild(this.element);
 
-  this.charMeasure = new CharMeasure(this.rowContainer);
+  this.charMeasure = new CharMeasure(this.helperContainer);
   this.charMeasure.on('charsizechanged', function () {
     self.updateCharSizeCSS();
   });
@@ -1144,6 +1170,10 @@ Terminal.prototype.refresh = function(start, end) {
     row = y + this.ydisp;
 
     line = this.lines.get(row);
+    if (!line || !this.children[y]) {
+      // Continue if the line is not available, this means a resize is currently in progress
+      continue;
+    }
     out = '';
 
     if (this.y === y - (this.ybase - this.ydisp)
@@ -1158,6 +1188,10 @@ Terminal.prototype.refresh = function(start, end) {
     i = 0;
 
     for (; i < width; i++) {
+      if (!line[i]) {
+        // Continue if the character is not available, this means a resize is currently in progress
+        continue;
+      }
       data = line[i][0];
       ch = line[i][1];
       ch_width = line[i][2];
@@ -1172,11 +1206,7 @@ Terminal.prototype.refresh = function(start, end) {
         }
         if (data !== this.defAttr) {
           if (data === -1) {
-            out += '<span class="reverse-video terminal-cursor';
-            if (this.cursorBlink) {
-              out += ' blinking';
-            }
-            out += '">';
+            out += '<span class="reverse-video terminal-cursor">';
           } else {
             var classNames = [];
 
@@ -2441,6 +2471,12 @@ function each(obj, iter, con) {
   }
 }
 
+function wasMondifierKeyOnlyEvent(ev) {
+  return ev.keyCode === 16 || // Shift
+    ev.keyCode === 17 || // Ctrl
+    ev.keyCode === 18; // Alt
+}
+
 function keys(obj) {
   if (Object.keys) return Object.keys(obj);
   var key, keys = [];
diff --git a/tsconfig.json b/tsconfig.json
index f4a5a1b2..f5a7d66c 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -7,13 +7,17 @@
     "outDir": "lib",
     "sourceMap": true
   },
+  "include": [
+    "src/**/*"
+  ],
   "exclude": [
-    "addons",
+    "src/addons/**/*",
     "build",
     "demo",
     "dist",
     "out",
     "test",
-    "node_modules"
+    "node_modules",
+    "docs"
   ]
 }