diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7bad8e4..e37a1d4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,19 @@
 # Changelog
 
+## 1.3.1 (2016-04-21)
+
+- A lot of refactoring to bring interactive shell experience to Windows (via winpty, which is a requirement now on Windows)
+  - `dsh update boot2docker` will now ask for a confirmation
+  - `dsh exec` (`dsh run`) can now run interactive commands (try `dsh exec top`)
+  - `dsh bash` now longer relies on `vagrant ssh -c` and thus launches much faster
+  - `dsh mysql-import` now disaplays a progress via `pv` (same as on Mac/Linux)
+- Fixed `dsh bash`regression from v1.3.0 on Mac/Linux
+- Documentation fixes and updates
+
+A full update is recommended. Please follow the updates instructions:
+https://github.com/blinkreaction/drude#updates
+
+
 ## 1.3.0 (2016-04-15)
 
 - Implement dsh drupal shortcut for Drupal Console commands
diff --git a/VERSION b/VERSION
index 589268e..6261a05 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-1.3.0
\ No newline at end of file
+1.3.1
\ No newline at end of file
diff --git a/bin/dsh b/bin/dsh
index e78ca8e..f67e2e6 100755
--- a/bin/dsh
+++ b/bin/dsh
@@ -1,6 +1,6 @@
 #!/bin/bash
 
-DSH_VERSION=1.12.11
+DSH_VERSION=1.13.0
 
 # Console colors
 red='\033[0;31m'
@@ -30,36 +30,6 @@ echo-red () { echo -e "${red}$1${NC}"; }
 echo-green () { echo -e "${green}$1${NC}"; }
 echo-yellow () { echo -e "${yellow}$1${NC}"; }
 
-# Check whether shell is interactive
-# Otherwise we are running in a non-interactive script environment
-is_tty ()
-{
-	# Override option via $DRUDE_IS_TTY (true|false) env variable.
-	if [[ $DRUDE_IS_TTY == 'true' ]]; then
-		return 0;
-	fi
-	if [[ $DRUDE_IS_TTY == 'false' ]]; then
-		return 1;
-	fi
-
-	# disable interactive shell on windows for now
-	# known Docker issue: https://github.com/docker/docker/issues/12469
-	res=$(uname | grep 'CYGWIN_NT')
-	if [[ "$res" != '' ]]; then
-		return 1;
-	fi
-
-	[[ "$(/usr/bin/tty || true)" != "not a tty" ]]
-}
-
-testing_warn ()
-{
-	if ! is_tty ; then return; fi
-	if [[ ! $B2D_BRANCH == 'master' ]] || [[ ! $DRUDE_BRANCH == 'master' ]]; then
-		echo-yellow "dsh: boot2docker - ${B2D_BRANCH}, drude - ${DRUDE_BRANCH}"
-	fi
-}
-
 # Exits dsh if previous command exited with non-zero code
 if_failed ()
 {
@@ -146,20 +116,12 @@ clean_string ()
 get_mysql_connect ()
 {
 	# Run drush forcing tty to false to avoid colored output string from drush.
-	echo "$(DRUDE_IS_TTY=false _run drush sql-connect)"
+	echo "$(DRUDE_IS_TTY=0 _run drush sql-connect)"
 }
 
 # Use this function for every docker-compose invocation.
 docker_compose ()
 {
-	# TODO: remove this
-	# if is_windows; then
-	# 	# Trim CR(\r) from the output, otherwise there will be issues passing it to the docker binary on Windows.
-	# 	docker-compose $* | tr -d '\r'
-	# else
-	# 	docker-compose $*
-	# fi
-	
 	docker-compose $*
 }
 
@@ -253,17 +215,15 @@ is_vagrant ()
 }
 
 # check that docker-compose binary exists
-is_docker_compose ()
+check_docker_compose ()
 {
 	binary_found 'docker-compose';
-	return $?
 }
 
 # check that docker binary exists
-is_docker ()
+check_docker ()
 {
 	binary_found 'docker';
-	return $?
 }
 
 is_docker_running ()
@@ -297,10 +257,38 @@ is_docker_running ()
 	return $?
 }
 
+# Check whether shell is interactive
+# Otherwise we are running in a non-interactive script environment
+is_tty ()
+{
+	# Override option via $DRUDE_IS_TTY (true|false) env variable.
+	if [[ $DRUDE_IS_TTY == 1 ]]; then
+		return 0;
+	fi
+	if [[ $DRUDE_IS_TTY == 0 ]]; then
+		return 1;
+	fi
+
+	[[ "$(/usr/bin/tty || true)" != "not a tty" ]]
+}
+
+#---------------------------- Other helper functions -------------------------------
+
+testing_warn ()
+{
+	if ! is_tty; then return; fi
+	if [[ ! $B2D_BRANCH == 'master' ]] || [[ ! $DRUDE_BRANCH == 'master' ]]; then
+		echo-yellow "dsh: boot2docker - ${B2D_BRANCH}, drude - ${DRUDE_BRANCH}"
+	fi
+}
+
 #---------------------------- Control functions -------------------------------
 
 check_docker_running ()
 {
+	check_docker
+	check_docker_compose
+	check_yml
 	if ! is_docker_running; then
 		echo-red "dsh: Unable to connect to the docker daemon";
 		exit 1
@@ -341,12 +329,19 @@ is_yml_absent ()
 	return 1
 }
 
+check_yml() 
+{
+	if is_yml_absent; then
+		exit 2
+	fi
+}
+
 # Yes/no confirmation dialog with an optional message
 # @param $1 confirmation message
 _confirm ()
 {
-	# Skip checks if not a tty
-	if ! is_tty ; then return 0; fi
+	# Skip checks if not running interactively (not a tty or not on Windows)
+	if ! is_tty; then return 0; fi
 
 	while true; do
 		read -p "$1 [y/n]: " answer
@@ -533,7 +528,7 @@ bash_comp_words ()
 # Start containers
 up ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_yml
 	if is_vagrant ; then
 		if ! is_docker_running; then
 			echo-green "dsh: Starting vagrant vm..."
@@ -542,10 +537,10 @@ up ()
 		else
 			started=0
 		fi
-		if [ $started -eq 0 ] && is_docker_compose ; then
+		if [ $started -eq 0 ] ; then
 			_start_containers
 		fi
-	elif ( is_boot2docker || is_linux ) && is_docker_compose ; then
+	elif ( is_boot2docker || is_linux ) ; then
 		_start_containers
 	fi
 }
@@ -554,17 +549,13 @@ up ()
 down ()
 {
 	check_docker_running
-	if is_yml_absent ; then return 2; fi
-	if is_docker_compose ; then
-		_stop_containers $@
-	fi
+	_stop_containers $@
 }
 
 # Stop Vagrant box
 halt ()
 {
 	check_docker_running
-	if is_yml_absent ; then return 2; fi
 	if is_vagrant ; then
 		vagrant halt
 	elif ( is_boot2docker || is_linux ) ; then
@@ -576,22 +567,22 @@ halt ()
 # @param $1 container_name
 restart ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_docker_running
 	_restart_containers $*
 }
 
 # Restart Vagrant and start containers again
 reload ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_yml
 	if is_vagrant ; then
 		echo-green "dsh: Restarting vagrant vm..."
 		vagrant reload
 		started=$?
-		if [ $started -eq 0 ] && is_docker_compose ; then
+		if [ $started -eq 0 ] ; then
 			_start_containers
 		fi
-	elif ( is_boot2docker || is_linux ) && is_docker_compose ; then
+	elif ( is_boot2docker || is_linux ) ; then
 		_start_containers
 	fi
 }
@@ -605,7 +596,6 @@ status ()
 	if [[ "$1" == "-a" ]] || [[ "$1" == "--all" ]]; then
 		docker ps
 	else
-		if is_yml_absent ; then return 2; fi
 		cd $(yml_get_path)
 		docker_compose ps
 	fi
@@ -840,7 +830,7 @@ update_images ()
 update_boot2docker ()
 {
 	testing_warn
-	if ! is_tty ; then
+	if ! is_tty; then
 		echo "'update' is not allowed in a non-interactive environment."
 		return 1
 	fi
@@ -940,91 +930,97 @@ update_dsh ()
 	exit
 }
 
-# Start interactive bash in container
-# @param $1 container name (defaults to cli)
+# Start an interactive bash session in a container
+# @param $1 container name
 _bash ()
 {
-	if is_yml_absent ; then return 2; fi
-	cd $(yml_get_path)
-
 	# Interactive shell requires a tty.
 	# On Windows we assume we run interactively via winpty (console.exe).
-	if ! (is_tty || is_windows) ; then
+	if ! is_tty; then
 		echo "Interactive bash console in a non-interactive enveronment!? Nope, won't happen."
 		return 1
 	fi
 
-	if is_docker && is_docker_compose ; then
-		check_docker_running
-		local container_name
-		if [[ "$1" == "" ]]; then
-			container_name='cli'
-		else
-			container_name="$1"
-		fi
-		local container_id
-		container_id=$(get_container_id $container_name)
-		if is_windows && is_binary_found console; then
-			# Workaround - run docker via winpty (console.exe) to get a tty console in cygwin.
-			console docker exec -it $container_id bash -i
-		else
-			# Drop /cygdrive prefix if the working directory is opened as /cygdrive/<driveletter>/.. instead of /<driveletter>.. 
-			cwd=$(pwd); cwd=${cwd#/cygdrive}
-			command="cd $cwd && docker exec -it $container_id bash -i";
-			vagrant ssh -c "$command"
-		fi
-	fi
+	# Pass container name to _run
+	CONTAINER_NAME=$1 _run bash -i
 }
 
-# Run a command in the cli container in the project root
+# Run a command in the cli container changing dir to the same folder
 # @param $* command with it's params to run
-run ()
+_run ()
 {
-	if is_docker && is_docker_compose ; then
-		check_docker_running
-		cd $(yml_get_path)
-		container_id=$(get_container_id cli)
+	check_docker_running
 
-		if is_tty ; then
-			# need to use $* here to finally resolve slash-escaped string if any.
-			# passing $@ will not work properly if $@ contains slash espaped string from drush command
-			docker exec -it $container_id bash -ic "$*"
+	if [[ "$CONTAINER_NAME" == "" ]]; then CONTAINER_NAME='cli'; fi
+	container_id=$(get_container_id $CONTAINER_NAME)
+
+	# 1) $winpty_cmd
+	local winpty_cmd
+	# Running docker exec interactively on Windows requires workarounds
+	if is_windows; then
+		# Workaround - run docker exec via winpty (console.exe) to get a tty console in cygwin.
+		if is_binary_found 'console'; then
+			winpty_cmd='console'
 		else
-			docker exec $container_id bash -c "$*"
+			echo-red 'Winpty (console.exe) binary missing.'
+			echo 'Run "dsh install prerequisites" to install it.'
+			exit 1
 		fi
 	fi
-}
 
-# Run a command in the cli container changing dir to the same folder
-# @param $* command with it's params to run
-_run ()
-{
-	#get client window width for interactive sessions
-	local COLS=''
-	if is_tty ; then
-		COLS=$(tput cols)
-	fi
+	# 2) cmd
+	local cmd
 
-	if is_yml_absent ; then return 2; fi
-	if is_docker && is_docker_compose ; then
-		local path=$(get_current_relative_path)
-		local cd=''
+	local cdir
+	# Only chdir to the same dir in cli container
+	# RUN_NO_CDIR can be used to override this (used in mysql_import)
+	if [[ $CONTAINER_NAME == "cli" ]] && [[ $RUN_NO_CDIR != 1 ]]; then
+		local path
+		path=$(get_current_relative_path)
 		if [[ "$path" != "$(pwd)" ]] && [[ "$path" != "" ]] ; then
-			# if we're not outside project folder
-			cd="cd $path &&"
+			# we're inside docroot
+			cdir="cd $path &&"
 		fi
 		if [[ "$path" == "" ]] ; then
-			# if we're on project folder level (outside docroot)
-			cd="cd docroot &&"
+			# we're on project folder level (outside docroot)
+			cdir="cd docroot &&"
+		fi
+	fi
+
+	local columns
+	if is_tty ; then
+		columns="export COLUMNS=$(tput cols) &&"
+	fi
+
+	cmd="$cdir $columns"
+
+	# 3) convert array of parameters into escaped string
+	# Escape spaces that are "spaces" and not parameter delimeters (i.e. param1 param2\ with\ spaces param3)
+	if [[ $2 != "" ]]; then
+		cmd="$cmd "$(printf " %q" "$@")
+	# Do not escape spaces if there is only one parameter (e.g. dsh run "ls -la | grep txt")
+	else
+		cmd="$cmd $@"
+	fi
+	
+	# 4) execute
+	if is_tty ; then
+		# interactive
+		if [[ $1 == "" ]]; then
+			$winpty_cmd docker exec -it $container_id bash -i
+		else
+			$winpty_cmd docker exec -it $container_id bash -ic "$cmd"
 		fi
-		run "$cd export COLUMNS=$COLS && $@"
+	else
+		# non-interactive
+		docker exec $container_id bash -c "$cmd"
 	fi
 }
 
 # start interactive mysql shell
 mysql ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_docker_running
 	if ! get_drush_path; then return; fi
 	_run $(get_mysql_connect)" -A" # -A option to speed up mysql load
 }
@@ -1033,7 +1029,7 @@ mysql ()
 # @param $1 filename of backup file. Should be inside project root
 mysql_import ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_docker_running
 	if ! get_drush_path; then return; fi
 
 	local confirm=1
@@ -1060,9 +1056,7 @@ mysql_import ()
 		_confirm "[!] This will drop the existing database. Continue?"
 	fi
 
-	check_docker_running
-
-	_run drush sql-drop -y
+	#_run drush sql-drop -y
 	local sql_connect
 	sql_connect=$(get_mysql_connect)
 	echo "Importing $filename into the database..."
@@ -1072,26 +1066,26 @@ mysql_import ()
 		# Check if we have a gzipped dump and treat it differently.
 		if [[ $filename == *.gz ]]; then
 			file_size=$(gzip -l $1 | sed -n 2p | awk '{print $2}')
-			run "zcat ./$pathdiff/$filename | pv --size $file_size | "$sql_connect
+			RUN_NO_CDIR=1 _run "zcat ./$pathdiff/$filename | pv --size $file_size | $sql_connect"
 		else
-			run "pv ./$pathdiff/$filename | "$sql_connect
+			RUN_NO_CDIR=1 _run "pv ./$pathdiff/$filename | $sql_connect"
 		fi
 	else
 		# Check if we have a gzipped dump and treat it differently.
 		if [[ $filename == *.gz ]]; then
-			run "zcat ./$pathdiff/$filename | "$sql_connect
+			RUN_NO_CDIR=1 _run "zcat ./$pathdiff/$filename | $sql_connect"
 		else
-			run "cat ./$pathdiff/$filename | "$sql_connect
+			RUN_NO_CDIR=1 _run "cat ./$pathdiff/$filename | $sql_connect"
 		fi
 	fi
 
 	# Check if import succeded or not and print results.
 	if [ $? -eq 0 ]; then
 		echo-green "dsh: mysql-import finished";
-		_notify "Dsh" "Mysql import finished"
+		if is_tty; then _notify "Dsh" "Mysql import finished"; fi
 	else
 		echo-red "dsh: mysql-import failed";
-		_notify "Dsh" "Mysql import failed!"
+		if is_tty; then _notify "Dsh" "Mysql import failed!"; fi
 	fi
 }
 
@@ -1099,7 +1093,7 @@ mysql_import ()
 # @param $1 type of cache to clean (all, css-js, ...)
 clear_cache ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_docker_running
 	#if ! get_drush_path; then return; fi
 	local type='all'
 	if [[ ! "$1" == "" ]]; then
@@ -1113,7 +1107,7 @@ clear_cache ()
 # @param $* arguments and params passed to Behat
 behat ()
 {
-	if is_yml_absent ; then return 2; fi
+	check_docker_running
 	local params=''
 	local path='tests/behat'
 	for i in "$@"; do
@@ -1170,11 +1164,11 @@ exec_url ()
 # @param $1 $2... container names
 remove ()
 {
+	check_docker_running
 	if [[ $1 == "" ]]; then
 		_confirm "[!] This will delete all project containers including the DB one. You will have to re-import DB.";
 	fi
 
-	if is_yml_absent ; then return 2; fi
 	if is_vagrant ; then
 		if ! is_docker_running; then
 			echo-green "dsh: Starting vagrant vm..."
@@ -1184,10 +1178,10 @@ remove ()
 			started=0
 		fi
 
-		if [ $started -eq 0 ] && is_docker_compose ; then
+		if [ $started -eq 0 ] ; then
 			_remove_containers $*
 		fi
-	elif ( is_boot2docker || is_linux ) && is_docker_compose ; then
+	elif ( is_boot2docker || is_linux ) ; then
 		_remove_containers $*
 	fi
 }
@@ -1286,7 +1280,7 @@ case $1 in
 		if [[ "$1" == "prerequisites" ]]; then
 			install_prerequisites
 		elif [[ "$1" == "boot2docker" ]]; then
-			update_boot2docker
+			update_boot2docker $*
 		elif [[ "$1" == "images" ]]; then
 			update_images
 		elif [[ "$1" == "dsh" ]]; then
@@ -1304,11 +1298,11 @@ case $1 in
 		;;
 	exec)
 		shift
-		_run "$*"
+		_run "$@"
 		;;
 	run)
 		shift
-		_run "$*"
+		_run "$@"
 		;;
 	mysql)
 		mysql
@@ -1330,9 +1324,7 @@ case $1 in
 		if [[ $1 == "" ]]; then
 			_run drush
 		else
-			# slash escape space-delimited parameters for safe passing between functions
-			cmd=$(printf " %q" "$@")
-			_run drush $cmd
+			_run drush "$@"
 		fi
 		;;
 	drupal)
@@ -1340,9 +1332,7 @@ case $1 in
 		if [[ "$1" == "" ]]; then
 			_run drupal
 		else
-			# slash escape space-delimited parameters for safe passing between functions
-			cmd=$(printf " %q" "$@")
-			_run drupal $cmd
+			_run drupal "$@"
 		fi
 		;;
 	behat)
diff --git a/docs/directory-structure.md b/docs/directory-structure.md
index c6795e3..77ce8a9 100644
--- a/docs/directory-structure.md
+++ b/docs/directory-structure.md
@@ -1,13 +1,13 @@
 # Directory structure
 
-Drude enforces a directory structure where you have an arbitrary located and named `projects` folder.  
-All your projects go into subfolders under the `projects` folder.  
+Drude enforces a directory structure where all your projects go into subfolders under the main `<projects>` folder.  
+The `<projects>` folder can be arbitrarily located and named. It is best to put it on the fastest drive you have.
 
-`dsh` will install the necessary boot2docker-vagrant VM files (`Vagrantfile` and `vagrant.yml`) into the `projects` folder.
+`dsh` will install the necessary boot2docker-vagrant VM files (`Vagrantfile` and `vagrant.yml`) into the `<projects>` folder.
 
 ```
 + ...
- - projects
+ - <projects>
  |--- drupal-site
  |      docker-compose.yml
  |      docroot
diff --git a/docs/drude-env-setup.md b/docs/drude-env-setup.md
index 489e7bc..bbc1505 100644
--- a/docs/drude-env-setup.md
+++ b/docs/drude-env-setup.md
@@ -54,7 +54,7 @@ Babun should be installed and run **as a regular user (do not use admin command
     dsh install boot2docker
     ```
     
-    On Mac and Widnows you should see two files created in the `projects` folder:
+    On Mac and Windows you should see two files created in the `projects` folder:
     
     ```
     Vagrantfile