diff --git a/trunk/yolanda/controllers/upload.py b/trunk/yolanda/controllers/upload.py
index bb2b8cd..12c252f 100644
--- a/trunk/yolanda/controllers/upload.py
+++ b/trunk/yolanda/controllers/upload.py
@@ -21,6 +21,7 @@ class UploadController(BaseController):
             return "not a valid video"
         
         #check if file is duplicate
+        upload.file.seek(0)
         sha256 = hashlib.sha256(upload.file.read(1024*1024)).hexdigest()
         
         if model.Video.query.filter_by(sha256=sha256).count():
@@ -29,13 +30,17 @@ class UploadController(BaseController):
         video = model.Video(title=request.params['title'],sha256=sha256)
         model.session.commit()
         
-        permanent_file = open(os.path.join(config['cache.dir'], str(video.id)), 'w')
+        temp_file = open(os.path.join(config['cache.dir'], str(video.id)), 'w')
         upload.file.seek(0)
-        u.copyfileobj(upload.file, permanent_file)
+        u.copyfileobj(upload.file, temp_file)
         upload.file.close()
-        permanent_file.close()
+        temp_file.close()
         
-        videoencode = encode.Encode(os.path.join(config['cache.dir'], str(video.id)))
+        #here begins the later daemon's work
+        videoencode = encode.Encode(
+            os.path.join(config['cache.dir'], str(video.id)),
+            os.path.join(config['pylons.paths']['static_files'], "videos", str(video.id)))
         videoencode.run()
+        os.unlink(os.path.join(config['cache.dir'], str(video.id)))
         
         return 'Successfully uploaded: %s'%video.query.all()
diff --git a/trunk/yolanda/lib/gstreamer/encode.py b/trunk/yolanda/lib/gstreamer/encode.py
index d08c2b5..dd1d1bb 100644
--- a/trunk/yolanda/lib/gstreamer/encode.py
+++ b/trunk/yolanda/lib/gstreamer/encode.py
@@ -36,7 +36,7 @@ class Encode:
     def _build_pipeline(self):
         self.player = gst.Pipeline("player")
         source = gst.element_factory_make("filesrc", "file-source")
-        source.set_property("location", self.filename)
+        source.set_property("location", self.source)
         decodebin = gst.element_factory_make("decodebin", "decodebin")
         decodebin.connect("pad-added", self.decodebin_callback)
         audioconvert = gst.element_factory_make("audioconvert", "audioconvert")
@@ -61,7 +61,7 @@ class Encode:
         queuev = gst.element_factory_make("queue", "queuev")
         muxer = gst.element_factory_make("oggmux", "muxer")
         filesink = gst.element_factory_make("filesink", "filesink")
-        filesink.set_property("location", self.filename+".ogg")
+        filesink.set_property("location", self.destination)
         
         self.player.add(source, decodebin, ffmpeg, muxer, filesink, videorate,
             videoscale, audioconvert, vorbisenc, theoraenc, queuea, queuev,
@@ -80,11 +80,12 @@ class Encode:
         bus.connect("message", self.on_message)
         self.player.set_state(gst.STATE_PLAYING)
     
-    def __init__(self, filename, videoquality=16, quick=True, sharpness=2,
+    def __init__(self, source, destination, videoquality=16, quick=True, sharpness=2,
                  video=True, audio=True, audioquality=0.1):
-        if not os.path.isfile(filename):
+        if not os.path.isfile(source):
             raise IOError, "cannot read file"
-        self.filename = filename
+        self.source = source
+        self.destination = destination
         if not video and not audio:
             raise AttributeError, "must contain video or audio"
         self.video = bool(video)
@@ -132,7 +133,7 @@ def main(args):
         print 'usage: %s file' % args[0]
         return 2
 
-    encode = Encode(args[1])
+    encode = Encode(args[1], args[1]+".ogg")
     encode.run()
 
 if __name__ == '__main__':