From: John Morton <jwm@plain.co.nz>

Anything that's inside the first <dtml-with...> should be operating in the context of that newly creates object, so if the second <dtml-with...> is place inside the first, that object should be created inside the first one.

I think the problem is that createInObjectManager is using the PARENTS array to find its ObjectManager, and the <dtml-with Object> statement doesn't touch that array. Thanks Bruce