diff --git a/LambdaINet.cabal b/LambdaINet.cabal
--- a/LambdaINet.cabal
+++ b/LambdaINet.cabal
@@ -1,5 +1,5 @@
 name:          LambdaINet
-version:       0.1.0
+version:       0.1.1
 homepage:      not available
 maintainer:    Paul H. Liu <paul@thev.net>
 cabal-version: >= 1.6
diff --git a/README b/README
--- a/README
+++ b/README
@@ -9,6 +9,10 @@
 Lambdascope, Workshop on Algebra and Logic on Programming Systems (ALPS),
 Kyoto, April 10th 2004
 
+CHANGES
+=======
+
+*   Mon Sep 14 EDT 2009 - fix the bug with app function, bump version to 0.1.1.
 
 USAGE
 =====
diff --git a/src/Main.lhs b/src/Main.lhs
--- a/src/Main.lhs
+++ b/src/Main.lhs
@@ -272,16 +272,15 @@
 > f = Abs (VFunc 1 "f" Z)
 
 > t2 = church 2
-> t2' = App (App t2 f) x
+> t2' = App (App (church 2) f) x --App (App (Abs (Abs (App (S Z) (App (S Z) Z))))  f) x
 
 > t4 = App (Abs (App Z Z)) t2
 > t4' = App (App t4 f) x
 
 > church n = Abs (Abs (app n (S Z) Z))
 
-> app n f x = App (Abs (app' n f x)) f 
-> app' 0 f x = x
-> app' n f x = App Z (app (n - 1) Z x)
+> app 0 f x = x
+> app n f x = App f (app (n - 1) f x)
 
 > double = Abs (App (VFunc 2 "+" (App id Z)) Z)
 >   where id = Abs Z