A shell written in Emacs Lisp by John Wiegley. Apart from being an amazing hack, this is actually useful. Rather than run a shell process under Emacs, you can run eshell. Now the shell can access various Emacs objects. Imagine being able to run a command with redirection not to files, but to buffers! Or command completion based on the entire contents of your Emacs session (OK, any shell running in Emacs can do this). Plans for the future are even more ambitious: "bookmarks" of the current "state" of the shell (e.g. directory stack, environment, maybe a few more things), letting you perform some level of undo).

Worth a try. Runs on any reasonably modern Emacs (v.20.1 and up), and reported to run on more modern XEmacsen (v.21.x and up).

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