diff --git a/lib/walk.js b/lib/walk.js
index abd2579..f4a9b6c 100644
--- a/lib/walk.js
+++ b/lib/walk.js
@@ -77,6 +77,7 @@
     if (err) {
       stat.error = err;
       //me.emit('error', curpath, stat);
+      // TODO v3.0 (don't noop the next if there are listeners)
       me.emit('nodeError', me._wcurpath, stat, noop);
       me._wfnodegroups.errors.push(stat);
       me._wCurFileCallback();
@@ -127,6 +128,8 @@
       ;
 
     if (me._wfnodegroups.errors.length) {
+      // TODO v3.0 (don't noop the next)
+      // .errors is an array of stats with { name: name, error: error }
       me.emit('errors', me._wcurpath, me._wfnodegroups.errors, noop);
     }
     // XXX emitNodeTypes still needs refactor
@@ -154,6 +157,8 @@
   Walker.prototype._wReaddirHandler = function (err, files) {
     var fnodeGroups = TypeEmitter.createNodeGroups()
       , me = this
+      , parent
+      , child
       ;
 
     me._wfnodegroups = fnodeGroups;
@@ -165,9 +170,15 @@
       return;
     }
 
+    // TODO path.sep
+    me._wcurpath = me._wcurpath.replace(/\/$/, '');
+
     // error? not first run? => directory error
     if (!me._wfirstrun) {
+      // TODO v3.0 (don't noop the next if there are listeners)
       me.emit('directoryError', me._wcurpath, { error: err }, noop);
+      // TODO v3.0
+      //me.emit('directoryError', me._wcurpath.replace(/^(.*)\/.*$/, '$1'), { name: me._wcurpath.replace(/^.*\/(.*)/, '$1'), error: err }, noop);
       me._wReadFiles();
       return;
     }
@@ -175,15 +186,22 @@
     // error? first run? => maybe a file, maybe a true error
     me._wfirstrun = false;
 
-    // readdir failed, try stat (might be a file)
-    me._wcurpath = me._wcurpath.replace(/^.*\/$/, '');
-    fs[me._wStat](me._wcurpath, function (e, stat) {
+    // readdir failed (might be a file), try a stat on the parent 
+    parent = me._wcurpath.replace(/^(.*)\/.*$/, '$1');
+    fs[me._wStat](parent, function (e, stat) {
 
       if (stat) {
-        files = [me._wcurpath];
-        me._wcurpath = me._wcurpath.replace(files[0], '');
+        // success
+        // now try stat on this as a child of the parent directory
+        child = me._wcurpath.replace(/^.*\/(.*)$/, '$1');
+        files = [child];
+        me._wcurpath = parent;
       } else {
-        me.emit('nodeError', me._wcurpath, { error: e }, noop);
+        // TODO v3.0
+        //me.emit('directoryError', me._wcurpath.replace(/^(.*)\/.*$/, '$1'), { name: me._wcurpath.replace(/^.*\/(.*)/, '$1'), error: err }, noop);
+        // TODO v3.0 (don't noop the next)
+        // the original readdir error, not the parent stat error
+        me.emit('nodeError', me._wcurpath, { error: err }, noop);
       }
 
       me._wReadFiles();
diff --git a/package.json b/package.json
index 165a20d..d19fc16 100644
--- a/package.json
+++ b/package.json
@@ -17,7 +17,7 @@
   },
   "lib": ".",
   "main": "./lib/walk.js",
-  "version": "2.3.7",
+  "version": "2.3.8",
   "repository": {
     "url": "git://github.com/coolaj86/node-walk.git"
   },