diff --git a/IP.pm b/IP.pm
index e8c119e..1119f9e 100644
--- a/IP.pm
+++ b/IP.pm
@@ -139,7 +139,7 @@
 				#############################################
 
 
-our $VERSION = '3.06';
+our $VERSION = '3.07';
 
 # Preloaded methods go here.
 
@@ -177,14 +177,14 @@
 
     my $a = $ip->{addr};
     my $m = $ip->{mask};
+    my $b = $ip->{bits};
 
     my $hp = "$a" & ~"$m";
     my $np = "$a" & "$m";
 
-    vec($hp, 0, 32) += $const;
+    vec($hp, 0, $b) += $const;
 
-    return _fnew NetAddr::IP [ "$np" | ("$hp" & ~"$m"), 
-			       $ip->{mask}, $ip->{bits}];
+    return _fnew NetAddr::IP [ "$np" | ("$hp" & ~"$m"), $m, $b];
 }
 
 sub minus {
@@ -253,6 +253,9 @@
     }
     elsif ($mask =~ m/^loopback$/i) {
 	vec($bmask, 0, 8) = 255;
+	vec($bmask, 1, 8) = 0;
+	vec($bmask, 2, 8) = 0;
+	vec($bmask, 3, 8) = 0;
     }
     elsif ($mask =~ m/^(\d+)\.(\d+)\.(\d+)\.(\d+)$/) {
 	vec($bmask, 0, 8) = $1;
@@ -528,8 +531,12 @@
     my $self	= shift;
     my $a = $self->{addr};
     my $m = $self->{mask};
+    my $c = '';
 
-    return [ "$a" | ~ "$m", $self->{mask}, $self->{bits} ];
+    vec($c, 0, $self->{bits}) = _ones $self->{bits};
+    vec($c, 0, $self->{bits}) ^= vec($m, 0, $self->{bits});
+
+    return [ "$a" | ~ "$m" | $c, $self->{mask}, $self->{bits} ];
 }
 
 				# This will become an lvalue later
@@ -587,7 +594,7 @@
     return $self->addr if $mask == 32;
 
     my @faddr = split (/\./, $self->first->addr);
-    my @laddr = split (/\./, ($self->last - 1)->addr);
+    my @laddr = split (/\./, $self->last->addr);
 
     return do_prefix $mask, \@faddr, \@laddr;
 }
@@ -600,7 +607,7 @@
     return $self->addr if $mask == 32;
 
     my @faddr = split (/\./, $self->first->addr);
-    my @laddr = split (/\./, $self->last->addr);
+    my @laddr = split (/\./, $self->broadcast->addr);
 
     return do_prefix $mask, \@faddr, \@laddr;
 }
@@ -821,32 +828,16 @@
 
 sub first ($) {
     my $self	= shift;
-    my $bits 	= $self->{bits};
-    my $a 	= $self->{addr};
-    my $m 	= $self->{mask};
 
-    my $h 	= '';
-    my $addr	= '';
-
-    vec($h, 0, $bits) = 0x1;	# Turn on just the first bit
-
-    return $self->_fnew([ ("$a" & "$m") | "$h", 
-			  $self->{mask}, $bits ]);
+    return $self->network + 1;
 }
 
 sub last ($) {
     my $self	= shift;
-    my $bits 	= $self->{bits};
-    my $a 	= $self->{addr};
-    my $m 	= $self->{mask};
 
-    my $h 	= '';
-    my $addr	= '';
+    return $self if $self->masklen == $self->{bits};
 
-    vec($h, 0, $bits) = _ones $bits;
-
-    return $self->_fnew([ ("$a" & "$m") | ("$h" & ~"$m"), 
-			  $self->{mask}, $bits ]);
+    return $self->broadcast - 1;
 }
 
 				# XXX - The constant below should be
@@ -1430,6 +1421,20 @@
 
 =back
 
+=item 3.07
+
+=over
+
+=item *
+
+Sami Pohto pointed out a bug with C<-E<gt>last()>. This was fixed.
+
+=item *
+
+A small bug related to parsing of 'localhost' was fixed.
+
+=back
+
 =back
 
 =head1 AUTHOR
diff --git a/MANIFEST b/MANIFEST
index 21c526a..4c344b8 100644
--- a/MANIFEST
+++ b/MANIFEST
@@ -9,6 +9,7 @@
 t/relops.t
 t/v4-snew.t
 t/v4-cnew.t
+t/v4-last.t
 t/over-qq.t
 t/masklen.t
 t/v4-base.t
diff --git a/t/v4-first.t b/t/v4-first.t
index 08c4902..accf0d6 100644
--- a/t/v4-first.t
+++ b/t/v4-first.t
@@ -1,9 +1,9 @@
 use NetAddr::IP;
 
 my $nets = {
-    '10.0.0.16'		=> [ 24, '10.0.0.1', '10.0.0.255'],
-    '10.128.0.1'	=> [ 8, '10.0.0.1', '10.255.255.255'],
-    '10.0.0.5'		=> [ 30, '10.0.0.5', '10.0.0.7' ],
+    '10.0.0.16'		=> [ 24, '10.0.0.1', '10.0.0.254'],
+    '10.128.0.1'	=> [ 8, '10.0.0.1', '10.255.255.254'],
+    '10.0.0.5'		=> [ 30, '10.0.0.5', '10.0.0.6' ],
 };
 
 $| = 1;
diff --git a/t/v4-last.t b/t/v4-last.t
new file mode 100644
index 0000000..55fb627
--- /dev/null
+++ b/t/v4-last.t
@@ -0,0 +1,32 @@
+use NetAddr::IP;
+
+my %w = ('default'	=> [ '255.255.255.254', '0.0.0.0' ],
+	 'loopback'	=> [ '127.255.255.254', '255.0.0.0' ],
+	 '127.0.0.1/8'	=> [ '127.255.255.254', '255.0.0.0' ],
+	 '10.'		=> [ '10.255.255.254', '255.0.0.0' ],
+	 '10.10.10/24'	=> [ '10.10.10.254', '255.255.255.0' ],
+	 );
+
+$| = 1;
+
+print '1..', (2 * scalar keys %w), "\n";
+
+my $count = 1;
+
+for my $a (keys %w) {
+    my $ip = NetAddr::IP->new($a)->last;
+
+    if ($ip->addr eq $w{$a}->[0]) {
+	print "ok ", $count++, "\n";
+    }
+    else {
+	print "not ok ", $count++, "\n";
+    }
+
+    if ($ip->mask eq $w{$a}->[1]) {
+	print "ok ", $count++, "\n";
+    }
+    else {
+	print "not ok ", $count++, "\n";
+    }
+}
diff --git a/t/v4-snew.t b/t/v4-snew.t
index 0fe5049..92f9094 100644
--- a/t/v4-snew.t
+++ b/t/v4-snew.t
@@ -12,6 +12,9 @@
 	 '0-63'		=> [ '0.0.0.0', '192.0.0.0' ],
 	 '128-191'	=> [ '128.0.0.0', '192.0.0.0' ],
 	 '10.128.0-127'	=> [ '10.128.0.0', '255.255.128.0' ],
+	 '10.10.10/24'	=> [ '10.10.10.0', '255.255.255.0' ],
+	 '10.10/16'	=> [ '10.10.0.0', '255.255.0.0' ],
+	 '10.10.10'	=> [ '10.10.0.10', '255.255.255.255' ],
 	 );
 
 $| = 1;