diff --git a/res/equipment.xml b/res/equipment.xml
index 1a38ab808..a998ef712 100644
--- a/res/equipment.xml
+++ b/res/equipment.xml
@@ -32,9 +32,9 @@
   <set name="songdragon_familiar">
     <skill name="magic" level="1"/>
     <!-- spells -->
-    <spell name="flee"/>
-    <spell name="sleep"/>
-    <spell name="frighten"/>
+    <spell name="flee" level="2"/>
+    <spell name="sleep" level="7"/>
+    <spell name="frighten" level="8"/>
   </set>
 
   <set name="nymph_familiar">
@@ -48,10 +48,10 @@
     <skill name="entertainment" level="1"/>
     <skill name="perception" level="1"/>
     <!-- spells -->
-    <spell name="seduction"/>
-    <spell name="calm_monster"/>
-    <spell name="song_of_confusion"/>
-    <spell name="appeasement"/>
+    <spell name="seduction" level="6"/>
+    <spell name="calm_monster" level="6"/>
+    <spell name="song_of_confusion" level="4"/>
+    <spell name="appeasement" level="1"/>
   </set>
 
   <set name="unicorn_familiar">
@@ -59,12 +59,12 @@
     <skill name="stealth" level="1"/>
     <skill name="perception" level="1"/>
     <!-- spells -->
-    <spell name="resist_magic"/>
-    <spell name="song_of_peace"/>
-    <spell name="calm_monster"/>
-    <spell name="heroic_song"/>
-    <spell name="song_of_healing"/>
-    <spell name="appeasement"/>
+    <spell name="resist_magic" level="3"/>
+    <spell name="song_of_peace" level="12"/>
+    <spell name="calm_monster" level="6"/>
+    <spell name="heroic_song" level="5"/>
+    <spell name="song_of_healing" level="2"/>
+    <spell name="appeasement" level="1"/>
   </set>
 
   <set name="direwolf_familiar">
@@ -75,9 +75,9 @@
   <set name="ghost_familiar">
     <skill name="magic" level="1"/>
     <!-- spells -->
-    <spell name="steal_aura"/>
-    <spell name="frighten"/>
-    <spell name="summonundead"/>
+    <spell name="steal_aura" level="6"/>
+    <spell name="frighten" level="8"/>
+    <spell name="summonundead" level="6"/>
   </set>
 
   <set name="imp_familiar">
@@ -87,9 +87,9 @@
     <skill name="perception" level="1"/>
     <skill name="taxation" level="1"/>
     <!-- spells -->
-    <spell name="steal_aura"/>
-    <spell name="shapeshift"/>
-    <spell name="seduction"/>
+    <spell name="steal_aura" level="6"/>
+    <spell name="shapeshift" level="3"/>
+    <spell name="seduction" level="6"/>
   </set>
 
   <set name="dreamcat_familiar">
@@ -99,16 +99,16 @@
     <skill name="perception" level="1"/>
     <skill name="taxation" level="1"/>
     <!-- spells -->
-    <spell name="shapeshift"/>
-    <spell name="transferauratraum"/>
+    <spell name="shapeshift" level="3"/>
+    <spell name="transferauratraum" level="3"/>
   </set>
 
   <set name="fairy_familiar">
     <skill name="magic" level="1"/>
     <!-- spells -->
-    <spell name="appeasement"/>
-    <spell name="calm_monster"/>
-    <spell name="seduction"/>
+    <spell name="appeasement" level="1"/>
+    <spell name="calm_monster" level="6"/>
+    <spell name="seduction" level="6"/>
   </set>
 
   <set name="owl_familiar">
diff --git a/src/kernel.vcxproj b/src/kernel.vcxproj
index 6db6ea17b..78a213902 100644
--- a/src/kernel.vcxproj
+++ b/src/kernel.vcxproj
@@ -101,6 +101,7 @@
     <ClCompile Include="kernel\connection.c" />
     <ClCompile Include="kernel\curse.c" />
     <ClCompile Include="kernel\equipment.c" />
+    <ClCompile Include="kernel\equipment_test.c" />
     <ClCompile Include="kernel\faction.c" />
     <ClCompile Include="kernel\group.c" />
     <ClCompile Include="kernel\item.c" />
diff --git a/src/kernel.vcxproj.filters b/src/kernel.vcxproj.filters
index f09da757a..906d6566d 100644
--- a/src/kernel.vcxproj.filters
+++ b/src/kernel.vcxproj.filters
@@ -319,6 +319,9 @@
     <ClCompile Include="kernel\spellbook_test.c">
       <Filter>kernel</Filter>
     </ClCompile>
+    <ClCompile Include="kernel\equipment_test.c">
+      <Filter>kernel</Filter>
+    </ClCompile>
   </ItemGroup>
   <ItemGroup>
     <ClInclude Include="kernel\alchemy.h">
diff --git a/src/kernel/equipment.c b/src/kernel/equipment.c
index 740bf7703..44e275ce6 100644
--- a/src/kernel/equipment.c
+++ b/src/kernel/equipment.c
@@ -23,7 +23,9 @@ OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
 /* kernel includes */
 #include "item.h"
 #include "unit.h"
+#include "faction.h"
 #include "race.h"
+#include "spellbook.h"
 
 /* util includes */
 #include <util/quicklist.h>
@@ -43,13 +45,9 @@ equipment *create_equipment(const char *eqname)
     struct equipment *eq = *eqp;
     int i = eq ? strcmp(eq->name, eqname) : 1;
     if (i > 0) {
-      eq = malloc(sizeof(equipment));
+      eq = (equipment *)calloc(1, sizeof(equipment));
       eq->name = strdup(eqname);
       eq->next = *eqp;
-      eq->items = NULL;
-      eq->spells = NULL;
-      eq->subsets = NULL;
-      eq->callback = NULL;
       memset(eq->skills, 0, sizeof(eq->skills));
       *eqp = eq;
       break;
@@ -85,10 +83,13 @@ void equipment_setskill(equipment * eq, skill_t sk, const char *value)
   }
 }
 
-void equipment_addspell(equipment * eq, spell * sp)
+void equipment_addspell(equipment * eq, spell * sp, int level)
 {
-  if (eq != NULL) {
-    ql_set_insert(&eq->spells, sp);
+  if (eq) {
+    if (!eq->spellbook) {
+      eq->spellbook = create_spellbook(0);
+    }
+    spellbook_add(eq->spellbook, sp, level);
   }
 }
 
@@ -140,16 +141,18 @@ void equip_unit_mask(struct unit *u, const struct equipment *eq, int mask)
     }
 
     if (mask & EQUIP_SPELLS) {
-      quicklist *ql = eq->spells;
-      if (ql) {
-        int qi;
+      if (eq->spellbook) {
         sc_mage *m = get_mage(u);
+        quicklist * ql = eq->spellbook->spells;
+        int qi;
 
-        assert(m || !"trying to equip spells on a non-mage!");
+        if (!m) {
+          m = create_mage(u, u->faction?u->faction->magiegebiet:M_GRAY);
+        }
         for (qi = 0; ql; ql_advance(&ql, &qi, 1)) {
-          spell *sp = (spell *) ql_get(ql, qi);
-          add_spell(&m->spells, sp);
-          add_spellname(m, sp);
+          spellbook_entry *sbe = (spellbook_entry *) ql_get(ql, qi);
+          add_spell(&m->spells, sbe->sp);
+          add_spellname(m, sbe->sp);
         }
       }
     }
diff --git a/src/kernel/equipment.h b/src/kernel/equipment.h
index eae6a23c9..c6fd146c6 100644
--- a/src/kernel/equipment.h
+++ b/src/kernel/equipment.h
@@ -43,7 +43,7 @@ extern "C" {
     char *name;
     struct itemdata *items;
     char *skills[MAXSKILLS];
-    struct quicklist *spells;
+    struct spellbook *spellbook;
     struct subset *subsets;
     struct equipment *next;
     void (*callback) (const struct equipment *, struct unit *);
@@ -56,7 +56,7 @@ extern "C" {
     const struct item_type *itype, const char *value);
   extern void equipment_setskill(struct equipment *eq, skill_t sk,
     const char *value);
-  extern void equipment_addspell(struct equipment *eq, struct spell *sp);
+  extern void equipment_addspell(struct equipment *eq, struct spell *sp, int level);
   extern void equipment_setcallback(struct equipment *eq,
     void (*callback) (const struct equipment *, struct unit *));
 
diff --git a/src/kernel/equipment_test.c b/src/kernel/equipment_test.c
new file mode 100644
index 000000000..d376ee644
--- /dev/null
+++ b/src/kernel/equipment_test.c
@@ -0,0 +1,56 @@
+#include <platform.h>
+
+#include <kernel/types.h>
+#include <kernel/equipment.h>
+#include <kernel/item.h>
+#include <kernel/unit.h>
+#include <kernel/magic.h>
+#include <kernel/skill.h>
+#include <kernel/spell.h>
+
+#include <util/quicklist.h>
+
+#include <cutest/CuTest.h>
+#include <tests.h>
+
+void test_equipment(CuTest * tc)
+{
+  equipment * eq;
+  unit * u;
+  const item_type * it_horses;
+  const char * names[] = {"horse", "horse_p"};
+  spell *sp;
+  sc_mage * mage;
+  
+  test_cleanup();
+  skill_enabled[SK_MAGIC] = 1;
+  it_horses = test_create_itemtype(names);
+  CuAssertPtrNotNull(tc, it_horses);
+  sp = create_spell("testspell", 0);
+  CuAssertPtrNotNull(tc, sp);
+
+  CuAssertPtrEquals(tc, 0, get_equipment("herpderp"));
+  eq = create_equipment("herpderp");
+  CuAssertPtrEquals(tc, eq, get_equipment("herpderp"));
+
+  equipment_setitem(eq, it_horses, "1");
+  equipment_setskill(eq, SK_MAGIC, "5");
+  equipment_addspell(eq, sp, 1);
+
+  u = test_create_unit(0, 0);
+  equip_unit_mask(u, eq, EQUIP_ALL);
+  CuAssertIntEquals(tc, 1, i_get(u->items, it_horses));
+  CuAssertIntEquals(tc, 5, get_level(u, SK_MAGIC));
+
+  mage = get_mage(u);
+  CuAssertPtrNotNull(tc, mage);
+  CuAssertPtrNotNull(tc, mage->spells);
+  CuAssertTrue(tc, u_hasspell(mage, sp));
+}
+
+CuSuite *get_equipment_suite(void)
+{
+  CuSuite *suite = CuSuiteNew();
+  SUITE_ADD_TEST(suite, test_equipment);
+  return suite;
+}
diff --git a/src/kernel/unit.c b/src/kernel/unit.c
index e7844bd38..d868627ea 100644
--- a/src/kernel/unit.c
+++ b/src/kernel/unit.c
@@ -1103,22 +1103,13 @@ void set_number(unit * u, int count)
   assert(count >= 0);
   assert(count <= UNIT_MAXSIZE);
 
-#ifndef NDEBUG
-  assert(u->faction || count == 0);
-#endif
-
   if (count == 0) {
     u->flags &= ~(UFL_HERO);
   }
-  if (u->faction) {
-    if (playerrace(u->race)) {
-      u->faction->num_people += count - u->number;
-    }
-    u->number = (unsigned short)count;
-  } else if (u->number > 0) {
-    assert
-      (!"why doesn't this unit have a faction? this will fuck up num_people");
+  if (u->faction && playerrace(u->race)) {
+    u->faction->num_people += count - u->number;
   }
+  u->number = (unsigned short)count;
 }
 
 boolean learn_skill(unit * u, skill_t sk, double chance)
@@ -1415,15 +1406,22 @@ void name_unit(unit * u)
     }
   } else {
     char name[32];
-    static const char * prefix[MAXLOCALES];
-    int i = locale_index(u->faction->locale);
-    if (!prefix[i]) {
-      prefix[i] = LOC(u->faction->locale, "unitdefault");
+    const char * result;
+    const struct locale * lang = u->faction ? u->faction->locale : default_locale;
+    if (lang) {
+      static const char * prefix[MAXLOCALES];
+      int i = locale_index(lang);
       if (!prefix[i]) {
-        prefix[i] = parameters[P_UNIT];
+        prefix[i] = LOC(lang, "unitdefault");
+        if (!prefix[i]) {
+          prefix[i] = parameters[P_UNIT];
+        }
       }
+      result = prefix[i];
+    } else {
+      result = parameters[P_UNIT];
     }
-    snprintf(name, sizeof(name), "%s %s", prefix[i], itoa36(u->no));
+    snprintf(name, sizeof(name), "%s %s", result, itoa36(u->no));
     unit_setname(u, name);
   }
 }
@@ -1436,17 +1434,19 @@ void name_unit(unit * u)
 unit *create_unit(region * r, faction * f, int number, const struct race *urace,
   int id, const char *dname, unit * creator)
 {
-  unit *u = calloc(1, sizeof(unit));
+  unit *u = (unit *)calloc(1, sizeof(unit));
 
   assert(urace);
-  assert(f->alive);
-  u_setfaction(u, f);
+  if (f) {
+    assert(f->alive);
+    u_setfaction(u, f);
 
-  if (f->locale) {
-    order *deford = default_order(f->locale);
-    if (deford) {
-      set_order(&u->thisorder, NULL);
-      addlist(&u->orders, deford);
+    if (f->locale) {
+      order *deford = default_order(f->locale);
+      if (deford) {
+        set_order(&u->thisorder, NULL);
+        addlist(&u->orders, deford);
+      }
     }
   }
   u_seteffstealth(u, -1);
@@ -1473,8 +1473,6 @@ unit *create_unit(region * r, faction * f, int number, const struct race *urace,
   } else {
     u->name = strdup(dname);
   }
-  if (count_unit(u))
-    f->no_units++;
 
   if (creator) {
     attrib *a;
diff --git a/src/kernel/xmlreader.c b/src/kernel/xmlreader.c
index 008c6a4d1..232ed917d 100644
--- a/src/kernel/xmlreader.c
+++ b/src/kernel/xmlreader.c
@@ -1314,7 +1314,8 @@ static void add_spells(equipment * eq, xmlNodeSetPtr nsetItems)
       if (!sp) {
         log_error("no spell '%s' in school '%s' for equipment-set '%s'\n", (const char *)propValue, magic_school[mtype], eq->name);
       } else {
-        equipment_addspell(eq, sp);
+        int level = xml_ivalue(node, "level", sp->level);
+        equipment_addspell(eq, sp, level);
       }
       xmlFree(propValue);
     }
@@ -1438,7 +1439,7 @@ static int parse_equipment(xmlDocPtr doc)
         xmlXPathFreeObject(xpathResult);
 
         xpathResult = xmlXPathEvalExpression(BAD_CAST "spell", xpath);
-        assert(!eq->spells);
+        assert(!eq->spellbook);
         add_spells(eq, xpathResult->nodesetval);
         xmlXPathFreeObject(xpathResult);
 
diff --git a/src/tests.c b/src/tests.c
index a78268590..e2ef1df7c 100644
--- a/src/tests.c
+++ b/src/tests.c
@@ -17,6 +17,7 @@
 #include <kernel/spell_test.c>
 #include <kernel/curse_test.c>
 #include <kernel/battle_test.c>
+#include <kernel/equipment_test.c>
 #include <kernel/reports_test.c>
 #include <kernel/spellbook_test.c>
 #include <gamecode/laws_test.c>
@@ -51,6 +52,7 @@ int RunAllTests(void)
   CuSuiteAddSuite(suite, get_umlaut_suite());
   /* kernel */
   CuSuiteAddSuite(suite, get_curse_suite());
+  CuSuiteAddSuite(suite, get_equipment_suite());
   CuSuiteAddSuite(suite, get_item_suite());
   CuSuiteAddSuite(suite, get_magic_suite());
   CuSuiteAddSuite(suite, get_move_suite());
@@ -101,7 +103,7 @@ struct faction *test_create_faction(const struct race *rc)
 
 struct unit *test_create_unit(struct faction *f, struct region *r)
 {
-  unit *u = create_unit(r, f, 1, f->race, 0, 0, 0);
+  unit *u = create_unit(r, f, 1, f?f->race:rc_find("human"), 0, 0, 0);
   return u;
 }