diff --git a/src/parser/testfiles.bad/arrow.txt b/src/parser/testfiles.bad/arrow.txt
new file mode 100644
index 0000000..e4400a5
--- /dev/null
+++ b/src/parser/testfiles.bad/arrow.txt
@@ -0,0 +1 @@
+->
diff --git a/src/parser/testfiles.bad/asdf.txt b/src/parser/testfiles.bad/asdf.txt
new file mode 100644
index 0000000..e08928b
--- /dev/null
+++ b/src/parser/testfiles.bad/asdf.txt
@@ -0,0 +1,4 @@
+(asdf=fjfj)
+{
+/foo -> $(IgnoreNone);
+}
diff --git a/src/parser/testfiles.bad/atat.txt b/src/parser/testfiles.bad/atat.txt
new file mode 100644
index 0000000..0282815
--- /dev/null
+++ b/src/parser/testfiles.bad/atat.txt
@@ -0,0 +1 @@
+@@
diff --git a/src/parser/testfiles.bad/bad-directive.txt b/src/parser/testfiles.bad/bad-directive.txt
new file mode 100644
index 0000000..87e2747
--- /dev/null
+++ b/src/parser/testfiles.bad/bad-directive.txt
@@ -0,0 +1 @@
+@@unknown fjfjfj
diff --git a/src/parser/testfiles.bad/bad-ifhost.txt b/src/parser/testfiles.bad/bad-ifhost.txt
new file mode 100644
index 0000000..6672764
--- /dev/null
+++ b/src/parser/testfiles.bad/bad-ifhost.txt
@@ -0,0 +1 @@
+@@ifhost
diff --git a/src/parser/testfiles.bad/error.txt b/src/parser/testfiles.bad/error.txt
new file mode 100644
index 0000000..179b4a5
--- /dev/null
+++ b/src/parser/testfiles.bad/error.txt
@@ -0,0 +1 @@
+@@error This should fail
diff --git a/src/parser/testfiles.bad/global-foo.txt b/src/parser/testfiles.bad/global-foo.txt
new file mode 100644
index 0000000..81cfcd6
--- /dev/null
+++ b/src/parser/testfiles.bad/global-foo.txt
@@ -0,0 +1,2 @@
+@@section GLOBAL
+/foo -> $(IgnoreNone);
diff --git a/src/parser/testfiles.bad/ignore-some.txt b/src/parser/testfiles.bad/ignore-some.txt
new file mode 100644
index 0000000..70f3d29
--- /dev/null
+++ b/src/parser/testfiles.bad/ignore-some.txt
@@ -0,0 +1 @@
+/foo -> $(IgnoreSome);
diff --git a/src/parser/testfiles.bad/incomplete-1.txt b/src/parser/testfiles.bad/incomplete-1.txt
new file mode 100644
index 0000000..0661686
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-1.txt
@@ -0,0 +1 @@
+/foo
diff --git a/src/parser/testfiles.bad/incomplete-2.txt b/src/parser/testfiles.bad/incomplete-2.txt
new file mode 100644
index 0000000..cdceccf
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-2.txt
@@ -0,0 +1 @@
+/foo ->
diff --git a/src/parser/testfiles.bad/incomplete-3.txt b/src/parser/testfiles.bad/incomplete-3.txt
new file mode 100644
index 0000000..5b7d008
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-3.txt
@@ -0,0 +1 @@
+/foo -> $(IgnoreNone)
diff --git a/src/parser/testfiles.bad/incomplete-4.txt b/src/parser/testfiles.bad/incomplete-4.txt
new file mode 100644
index 0000000..7073e76
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-4.txt
@@ -0,0 +1,2 @@
+{
+/foo -> $(IgnoreNone);
diff --git a/src/parser/testfiles.bad/incomplete-5.txt b/src/parser/testfiles.bad/incomplete-5.txt
new file mode 100644
index 0000000..533ee7f
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-5.txt
@@ -0,0 +1,2 @@
+/foo -> $(IgnoreNone);
+}
diff --git a/src/parser/testfiles.bad/incomplete-6.txt b/src/parser/testfiles.bad/incomplete-6.txt
new file mode 100644
index 0000000..ff668ee
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-6.txt
@@ -0,0 +1,4 @@
+(emailto="foo@bar
+{
+/foo -> $(IgnoreNone);
+}
diff --git a/src/parser/testfiles.bad/incomplete-7.txt b/src/parser/testfiles.bad/incomplete-7.txt
new file mode 100644
index 0000000..82df1f7
--- /dev/null
+++ b/src/parser/testfiles.bad/incomplete-7.txt
@@ -0,0 +1,4 @@
+(emailto="foo@bar"
+{
+/foo -> $(IgnoreNone);
+}
diff --git a/src/parser/testfiles.bad/relpath.txt b/src/parser/testfiles.bad/relpath.txt
new file mode 100644
index 0000000..ac86154
--- /dev/null
+++ b/src/parser/testfiles.bad/relpath.txt
@@ -0,0 +1 @@
+foo -> $(IgnoreNone);
diff --git a/src/parser/testfiles/basic.txt b/src/parser/testfiles/basic.txt
new file mode 100644
index 0000000..86c70fe
--- /dev/null
+++ b/src/parser/testfiles/basic.txt
@@ -0,0 +1,3 @@
+/foo -> +S;
+/bar -> $(IgnoreNone);
+!/baz;
diff --git a/src/parser/testfiles.bad/empty.txt b/src/parser/testfiles/empty.txt
similarity index 100%
rename from src/parser/testfiles.bad/empty.txt
rename to src/parser/testfiles/empty.txt
diff --git a/src/parser/testfiles/ifhost.txt b/src/parser/testfiles/ifhost.txt
new file mode 100644
index 0000000..4117d1c
--- /dev/null
+++ b/src/parser/testfiles/ifhost.txt
@@ -0,0 +1,6 @@
+@@ifhost localhost
+  @@print Hello World
+  /foo -> $(IgnoreNone);
+@@else
+  @@error Failed
+@@endif
diff --git a/src/parser/testfiles/variable.txt b/src/parser/testfiles/variable.txt
new file mode 100644
index 0000000..f651b03
--- /dev/null
+++ b/src/parser/testfiles/variable.txt
@@ -0,0 +1,7 @@
+@@section GLOBAL
+FOO =/foo ;
+BAR = +pinug ;
+
+@@section FS
+$(FOO) -> $(BAR);
+
diff --git a/src/test-harness/tests/createpolicy.pm b/src/test-harness/tests/createpolicy.pm
index a67632d..ecf63d5 100644
--- a/src/test-harness/tests/createpolicy.pm
+++ b/src/test-harness/tests/createpolicy.pm
@@ -12,53 +12,17 @@ BEGIN
     $description = "policy creation test";
     $testpolicydir = "$twtools::twrootdir/../../parser/testfiles";
     $badpolicydir = "$twtools::twrootdir/../../parser/testfiles.bad";
+    $twpassed = 1;
 }
 
+
 ######################################################################
-# various policies
+# Try all policy files in specified directory, & verify each returns expected value
 #
-sub basic_policy
-{
-	return <<POLICY_END;
-
-/foo -> +S;
-/bar -> \$(IgnoreNone);
-!/baz;
-
-POLICY_END
-}
-
-sub variable_policy
-{
-    return <<POLICY_END;
-\@\@section GLOBAL
-FOO = /foo ;
-BAR = +pinug ;
-
-\@\@section FS
-\$(FOO) -> \$(BAR);
-
-POLICY_END
-}
-
-sub host_conditional_policy
-{
-	return <<POLICY_END;
-\@\@ifhost localhost
-\@\@print Hello World
-    /foo -> \$(IgnoreNone);
-\@\@else
-\@\@error failed
-\@\@endif
-
-POLICY_END
-}
-
-
 sub test_policy_dir
 {
     my ($policydir, $expected) = @_;
-    my $twpassed = 1;
+    # my $twpassed = 1;
 
     opendir my $dir, $policydir or return 0;
     my @files = readdir $dir;
@@ -74,69 +38,63 @@ sub test_policy_dir
 
         twtools::CreatePolicy({policy-text => "$policydir/$current_file"});
         if ( $? != $expected ) {
-            twtools::logStatus ("create-polfile with $policydir/$current_file failed, error = $?\n");
+            twtools::logStatus ("*** create-polfile with $policydir/$current_file failed, error = $?\n");
             $twpassed = 0;
         }
     }
 
+    twtools::logStatus("Done with policy dir $policydir, result = $twpassed\n");
     return $twpassed;
 }
 
 
-
 ######################################################################
 #
 # Run the test.
 #
 sub run
 {
-    my $twpassed = 1;
+    my $out = 1;
 
+
+    # First try a bunch of policies that are supposed to succeed
+    #
     twtools::logStatus("*** Beginning policy creation test\n");
-    printf("%-30s", "-- $description");
-
-    twtools::GeneratePolicyFile( basic_policy() );
-    if ( $? != 0 ) {
-        twtools::logStatus("basic create-polfile failed, error = $?\n");
-        $twpassed = 0;
-    }
-
-    twtools::GeneratePolicyFile( variable_policy() );
-    if ( $? != 0 ) {
-        twtools::logStatus("create-polfile with variables failed, error = $?\n");
-        $twpassed = 0;
-    }
-
-    twtools::GeneratePolicyFile( host_conditional_policy() );
-    if ( $? != 0 ) {
-        twtools::logStatus("create-polfile with ifhost conditional failed, error = $?\n");
-        $twpassed = 0;
-    }
+    printf("%-30s", "-- policy creation test");
 
     test_policy_dir( "$testpolicydir", 0 );
-    if ( $? != 0 ) {
-        $twpassed = 0;
-    }
-
-    test_policy_dir( "$badpolicydir", 1 );
-    if ( $? != 0 ) {
-        $twpassed = 0;
-    }
-
-    #########################################################
-    #
-    # See if the tests all succeeded...
-    #
     if ($twpassed) {
         ++$twtools::twpassedtests;
         print "PASSED\n";
-        return 1;
     }
     else {
         ++$twtools::twfailedtests;
         print "*FAILED*\n";
-        return 0;
+        $out = 0;
     }
+
+
+    # Now try some bad policies
+    #
+    twtools::logStatus("*** Beginning bad policy rejection test\n");
+    printf("%-30s", "-- bad policy rejection test");
+
+    $twpassed = 1;
+    ++$twtools::twtotaltests;
+
+    test_policy_dir( "$badpolicydir", 256 );
+    if ($twpassed) {
+        ++$twtools::twpassedtests;
+        print "PASSED\n";
+    }
+    else {
+        ++$twtools::twfailedtests;
+        print "*FAILED*\n";
+        $out = 0;
+    }
+
+
+    return $out;
 }
 
 
diff --git a/src/test-harness/tests/dbupdate.pm b/src/test-harness/tests/dbupdate.pm
index 22efe5c..e536b4a 100644
--- a/src/test-harness/tests/dbupdate.pm
+++ b/src/test-harness/tests/dbupdate.pm
@@ -142,7 +142,7 @@ sub PrepareForTest
 # 
 sub RunBasicTest
 {
-        twtools::logStatus("*** Beginning dbupdate.basic test\n");
+    twtools::logStatus("*** Beginning dbupdate.basic test\n");
 	printf("%-30s", "-- dbupdate.basic test");
 
 	PrepareForTest();
diff --git a/src/test-harness/twtools.pm b/src/test-harness/twtools.pm
index b04c633..8950e06 100644
--- a/src/test-harness/twtools.pm
+++ b/src/test-harness/twtools.pm
@@ -273,7 +273,7 @@ sub GeneratePolicyFile {
 
     print "generating policy file...\n" if $verbose;
 
-    logStatus(`$twrootdir/bin/twadmin -m P -c $twrootdir/$twcfgloc -Q $twsitepass -p $twrootdir/$twpolfileloc $twrootdir/$twpolicyloc`);
+    logStatus(`$twrootdir/bin/twadmin -m P -c $twrootdir/$twcfgloc -Q $twsitepass -p $twrootdir/$twpolfileloc $twrootdir/$twpolicyloc 2>&1`);
 
     return ($? == 0);
 }
@@ -291,7 +291,7 @@ sub CreatePolicy {
 
     print "generating policy file...\n" if $verbose;
 
-    logStatus(`$twrootdir/bin/twadmin -m P -c $twrootdir/$twcfgloc -Q $twsitepass -p $twrootdir/$twpolfileloc $params{policy-text}`);
+    logStatus(`$twrootdir/bin/twadmin -m P -c $twrootdir/$twcfgloc -Q $twsitepass -p $twrootdir/$twpolfileloc $params{policy-text} 2>&1`);
 
     return ($? == 0);
 }