diff --git a/.gitignore b/.gitignore
index 277ee86..3142bca 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,4 +3,5 @@
 /dist/
 /MANUAL
 /MANUAL.html
-/MANUAL.gz
\ No newline at end of file
+/MANUAL.gz
+/o/
\ No newline at end of file
diff --git a/.goreleaser.yaml b/.goreleaser.yaml
index d1bfb82..aa8ee4b 100644
--- a/.goreleaser.yaml
+++ b/.goreleaser.yaml
@@ -108,7 +108,7 @@ brews:
     description: "eXtractor Tool - Recursively decompress archives"
     license: MIT
     url_template: "https://github.com/Unpackerr/xt/releases/download/{{ .Tag }}/{{ .ArtifactName }}"
-    test: assert_match "xt v#{version}", shell_output("#{bin}/xt -v 2>&1", 2)
+    test: assert_match "xt v#{version}", shell_output("#{bin}/xt -v 2>&1", 0)
     install: bin.install "xt"
 
 changelog:
diff --git a/MANUAL.md b/MANUAL.md
index 8128c59..e0b877a 100644
--- a/MANUAL.md
+++ b/MANUAL.md
@@ -42,7 +42,7 @@ OPTIONS
 
 -P _password_, --password _password_  
     Provided _passwords_ are attempted against extraction of encrypted
-    rar and/or 7zip archives. The `-p` option may be provided many times.
+    rar and/or 7zip archives. The `-P` option may be provided many times.
 
 -e _.ext_, --extension _.ext_  
     Only extract archives with these extensions. Include the leading dot.
@@ -57,8 +57,9 @@ OPTIONS
     xml, json, toml and yaml. TOML is the default. See JOB FILES below.
 
 -p, --preserve-paths
-    This option determines if the archives will be extracted to their
-    parent folder. Using this flag will override the --output option.
+    Recreate the input directory hierarchy under the output directory.
+    Archives found in subfolders are extracted into matching subfolders
+    of --output. The --output option is still used as the base path.
 
 -V, --verbose
     Verbose logging prints the extracted file paths.
diff --git a/README.md b/README.md
index c7973ce..bd6fcb7 100644
--- a/README.md
+++ b/README.md
@@ -45,9 +45,7 @@ brew install golift/mugs/xt
 - After you [install go](https://go.dev/doc/install), install the `xt` app using `go install`:
 
 ```shell
-cd /tmp
-go get github.com/Unpackerr/xt
-go install github.com/Unpackerr/xt
+go install golift.io/xt@latest
 ```
 
 [releases]: https://github.com/Unpackerr/xt/releases
diff --git a/pkg/xt/filemode_test.go b/pkg/xt/filemode_test.go
new file mode 100644
index 0000000..cc22cc9
--- /dev/null
+++ b/pkg/xt/filemode_test.go
@@ -0,0 +1,71 @@
+package xt //nolint:testpackage
+
+import (
+	"bytes"
+	"os"
+	"testing"
+)
+
+func TestFileModeUnmarshalText(t *testing.T) {
+	t.Parallel()
+
+	tests := []struct {
+		name    string
+		input   string
+		want    os.FileMode
+		wantErr bool
+	}{
+		{name: "unquoted", input: "644", want: 0o644},
+		{name: "leading zero", input: "0644", want: 0o644},
+		{name: "double quoted", input: `"0755"`, want: 0o755},
+		{name: "single quoted", input: "'0755'", want: 0o755},
+		{name: "padded", input: "  0644  ", want: 0o644},
+		{name: "invalid letters", input: "abc", wantErr: true},
+		{name: "invalid octal", input: "999", wantErr: true},
+		{name: "empty", input: "", wantErr: true},
+	}
+
+	for _, test := range tests {
+		t.Run(test.name, func(t *testing.T) {
+			t.Parallel()
+
+			var mode FileMode
+
+			err := mode.UnmarshalText([]byte(test.input))
+			if test.wantErr {
+				if err == nil {
+					t.Fatal("expected error")
+				}
+
+				return
+			}
+
+			if err != nil {
+				t.Fatal(err)
+			}
+
+			if mode.Mode() != test.want {
+				t.Fatalf("mode = %o, want %o", mode.Mode(), test.want)
+			}
+		})
+	}
+}
+
+func TestFileModeMarshalAndString(t *testing.T) {
+	t.Parallel()
+
+	mode := FileMode(0o644)
+
+	got, err := mode.MarshalText()
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if !bytes.Equal(got, []byte("0644")) {
+		t.Fatalf("MarshalText = %q", got)
+	}
+
+	if mode.String() != "0644" {
+		t.Fatalf("String = %q", mode.String())
+	}
+}
diff --git a/pkg/xt/job_test.go b/pkg/xt/job_test.go
new file mode 100644
index 0000000..60aa39d
--- /dev/null
+++ b/pkg/xt/job_test.go
@@ -0,0 +1,99 @@
+package xt //nolint:testpackage
+
+import (
+	"os"
+	"path/filepath"
+	"strings"
+	"testing"
+)
+
+func TestParseJobs(t *testing.T) {
+	t.Parallel()
+
+	dir := t.TempDir()
+
+	tomlPath := filepath.Join(dir, "job.toml")
+	writeFile(t, tomlPath, "paths = ['/tmp/a']\noutput = '.'\npreserve_paths = true\n")
+
+	jsonPath := filepath.Join(dir, "job.json")
+	writeFile(t, jsonPath, `{"paths":["/tmp/b"],"output":".","squashRoot":true}`)
+
+	yamlPath := filepath.Join(dir, "job.yaml")
+	writeFile(t, yamlPath, "paths:\n  - /tmp/c\noutput: .\nverbose: true\n")
+
+	jobs, err := ParseJobs([]string{tomlPath, jsonPath, yamlPath})
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if len(jobs) != 3 {
+		t.Fatalf("len(jobs) = %d", len(jobs))
+	}
+
+	if jobs[0].Paths[0] != "/tmp/a" || !jobs[0].Preserve || jobs[0].Output != "." {
+		t.Fatalf("toml job = %+v", jobs[0])
+	}
+
+	if jobs[1].Paths[0] != "/tmp/b" || !jobs[1].SquashRoot {
+		t.Fatalf("json job = %+v", jobs[1])
+	}
+
+	if jobs[2].Paths[0] != "/tmp/c" || !jobs[2].Verbose {
+		t.Fatalf("yaml job = %+v", jobs[2])
+	}
+}
+
+func TestParseJobsMissingFile(t *testing.T) {
+	t.Parallel()
+
+	_, err := ParseJobs([]string{filepath.Join(t.TempDir(), "missing.toml")})
+	if err == nil {
+		t.Fatal("expected error for missing job file")
+	}
+
+	if !strings.Contains(err.Error(), "bad job file") {
+		t.Fatalf("error = %v", err)
+	}
+}
+
+func TestFixModesAndString(t *testing.T) {
+	t.Parallel()
+
+	job := &Job{Paths: []string{"a"}, Output: "/out"}
+	job.fixModes()
+
+	if job.FileMode.Mode() != 0o644 {
+		t.Fatalf("FileMode = %o", job.FileMode.Mode())
+	}
+
+	if job.DirMode.Mode() != 0o755 {
+		t.Fatalf("DirMode = %o", job.DirMode.Mode())
+	}
+
+	job.FileMode = 0o600
+	job.DirMode = 0o700
+	job.fixModes()
+
+	if job.FileMode.Mode() != 0o600 || job.DirMode.Mode() != 0o700 {
+		t.Fatal("fixModes overwrote non-zero modes")
+	}
+
+	got := job.String()
+	if !strings.Contains(got, "1 path,") || !strings.Contains(got, "f/d-mode:0600/0700") {
+		t.Fatalf("String = %q", got)
+	}
+
+	job.Paths = []string{"a", "b"}
+	if !strings.Contains(job.String(), "2 paths,") {
+		t.Fatalf("plural String = %q", job.String())
+	}
+}
+
+func writeFile(t *testing.T, path, body string) {
+	t.Helper()
+
+	err := os.WriteFile(path, []byte(body), 0o600)
+	if err != nil {
+		t.Fatal(err)
+	}
+}
diff --git a/pkg/xt/xt.go b/pkg/xt/xt.go
index 063e892..447a724 100644
--- a/pkg/xt/xt.go
+++ b/pkg/xt/xt.go
@@ -110,10 +110,14 @@ func (j *Job) processArchive(folder, archive string) (string, uint64, []string,
 
 	// If preserving the file hierarchy: set the output directory to the same path as the input file.
 	if j.Preserve {
-		// Remove input path prefix from fileName,
-		// append fileName.Dir to job.Output,
-		// extract file into job.Output/file(sub)Folder(s).
-		file.OutputDir = filepath.Join(j.Output, filepath.Dir(strings.TrimPrefix(archive, folder)))
+		// Rel(search folder, archive) then join that directory onto job.Output.
+		// TrimPrefix leaves a leading separator, and Join treats that as absolute.
+		rel, err := filepath.Rel(folder, archive)
+		if err != nil {
+			rel = strings.TrimPrefix(archive, folder)
+		}
+
+		file.OutputDir = filepath.Join(j.Output, filepath.Dir(rel))
 	}
 
 	start := time.Now()
diff --git a/pkg/xt/xt_test.go b/pkg/xt/xt_test.go
index de14134..94f9e54 100644
--- a/pkg/xt/xt_test.go
+++ b/pkg/xt/xt_test.go
@@ -4,6 +4,7 @@ import (
 	"archive/zip"
 	"os"
 	"path/filepath"
+	"slices"
 	"testing"
 	"time"
 )
@@ -89,6 +90,122 @@ func TestExtractZip(t *testing.T) {
 	}
 }
 
+func TestGetArchivesFileVsDir(t *testing.T) {
+	t.Parallel()
+
+	dir := t.TempDir()
+	zipPath := filepath.Join(dir, "sample.zip")
+	createTestZip(t, zipPath, "hello.txt", "hello")
+
+	job := &Job{Paths: []string{zipPath}}
+	got := job.getArchives()
+
+	if got.Count() != 1 || len(got[zipPath]) != 1 || got[zipPath][0] != zipPath {
+		t.Fatalf("file archives = %#v", got)
+	}
+
+	job = &Job{Paths: []string{dir}}
+	got = job.getArchives()
+
+	if got.Count() != 1 || !slices.Contains(got[dir], zipPath) {
+		t.Fatalf("dir archives = %#v", got)
+	}
+}
+
+func TestGetArchivesIncludeExclude(t *testing.T) {
+	t.Parallel()
+
+	dir := t.TempDir()
+	zipPath := filepath.Join(dir, "sample.zip")
+	isoPath := filepath.Join(dir, "sample.iso")
+	createTestZip(t, zipPath, "hello.txt", "hello")
+	writeFile(t, isoPath, "not-an-iso")
+
+	included := (&Job{Paths: []string{dir}, Include: []string{".zip"}}).getArchives()
+	if included.Count() != 1 || !slices.Contains(included[dir], zipPath) {
+		t.Fatalf("include .zip = %#v", included)
+	}
+
+	if slices.Contains(included[dir], isoPath) {
+		t.Fatalf("include .zip should skip iso: %#v", included)
+	}
+
+	excluded := (&Job{Paths: []string{dir}, Exclude: []string{".zip"}}).getArchives()
+	if slices.Contains(excluded[dir], zipPath) {
+		t.Fatalf("exclude .zip still found zip: %#v", excluded)
+	}
+
+	if excluded.Count() != 1 || !slices.Contains(excluded[dir], isoPath) {
+		t.Fatalf("exclude .zip = %#v", excluded)
+	}
+}
+
+func TestGetArchivesMissingPath(t *testing.T) {
+	t.Parallel()
+
+	got := (&Job{Paths: []string{filepath.Join(t.TempDir(), "missing")}}).getArchives()
+	if got.Count() != 0 {
+		t.Fatalf("missing path archives = %#v", got)
+	}
+}
+
+func TestExtractPreservePaths(t *testing.T) {
+	t.Parallel()
+
+	root := t.TempDir()
+	nested := filepath.Join(root, "nested")
+
+	err := os.MkdirAll(nested, 0o750)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	createTestZip(t, filepath.Join(nested, "sample.zip"), "hello.txt", "hello world")
+
+	out := filepath.Join(root, "out")
+	Extract(&Job{Paths: []string{root}, Output: out, Preserve: true})
+
+	got, err := os.ReadFile(filepath.Join(out, "nested", "hello.txt")) //nolint:gosec
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if string(got) != "hello world" {
+		t.Fatalf("extracted content = %q", got)
+	}
+}
+
+func TestExtractSquashRoot(t *testing.T) {
+	t.Parallel()
+
+	dir := t.TempDir()
+	zipPath := filepath.Join(dir, "sample.zip")
+	createTestZip(t, zipPath, "root/hello.txt", "squashed")
+
+	out := filepath.Join(dir, "out")
+
+	err := os.MkdirAll(out, 0o750)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	Extract(&Job{Paths: []string{zipPath}, Output: out, SquashRoot: true})
+
+	got, err := os.ReadFile(filepath.Join(out, "hello.txt")) //nolint:gosec
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	if string(got) != "squashed" {
+		t.Fatalf("extracted content = %q", got)
+	}
+
+	_, err = os.Stat(filepath.Join(out, "root"))
+	if !os.IsNotExist(err) {
+		t.Fatalf("squash left root folder: %v", err)
+	}
+}
+
 func createTestZip(t *testing.T, zipPath, name, body string) {
 	t.Helper()