diff --git a/bin/ansible-playbook b/bin/ansible-playbook
index ba88c066a6a..cb51720d173 100755
--- a/bin/ansible-playbook
+++ b/bin/ansible-playbook
@@ -43,6 +43,12 @@ class PlaybookCallbacks(object):
     def on_task_start(self, name, is_conditional):
         print utils.task_start_msg(name, is_conditional)
 
+    def on_setup_primary(self):
+        print "SETUP PHASE ****************************\n"
+    
+    def on_setup_secondary(self):
+        print "\nVARIABLE IMPORT PHASE ******************\n"
+
     def on_unreachable(self, host, msg):
         print "unreachable: [%s] => %s" % (host, msg)
 
@@ -52,14 +58,11 @@ class PlaybookCallbacks(object):
     def on_ok(self, host, host_result):
         print "ok: [%s]\n" % (host)
 
-    def on_setup_primary(self):
-        print "preparing nodes..."
-
-    def on_setup_secondary(self):
-        print "preparing conditional imports..."
-
     def on_import_for_host(self, host, imported_file):
-        pass
+        print "%s: importing %s" % (host, imported_file)
+
+    def on_not_import_for_host(self, host, missing_file):
+        print "%s: not importing file: %s" % (host, missing_file)
 
     def on_play_start(self, pattern):
         print "PLAY [%s] ****************************\n" % pattern
diff --git a/examples/playbooks/playbook3.yml b/examples/playbooks/playbook3.yml
index a07bb7cecc6..ed5c8eb00ad 100644
--- a/examples/playbooks/playbook3.yml
+++ b/examples/playbooks/playbook3.yml
@@ -32,7 +32,6 @@
 
      - "vars/external_vars.yml"
 
-
      - [ "vars/$facter_operatingsystem.yml", "vars/defaults.yml" ]
 
 # and this is just a regular task line from a playbook, as we're used to.
diff --git a/lib/ansible/playbook.py b/lib/ansible/playbook.py
index 2eb8297e5c3..f7d90e117bf 100755
--- a/lib/ansible/playbook.py
+++ b/lib/ansible/playbook.py
@@ -465,8 +465,12 @@ class PlayBook(object):
                                 SETUP_CACHE[host].update(data)
                                 self.callbacks.on_import_for_host(host, filename2)
                                 break
+                            else:
+                                self.callbacks.on_not_import_for_host(host, filename2)
                         if not found:
-                            raise errors.AnsibleError("no files matched for vars_files import sequence: %s" % sequence)
+                            raise errors.AnsibleError(
+                                "%s: FATAL, no files matched for vars_files import sequence: %s" % (host, sequence)
+                            )
 
                     else:
                         filename2 = utils.path_dwim(self.basedir, utils.template(filename, cache_vars))
@@ -508,6 +512,8 @@ class PlayBook(object):
             if 'failed' in host_result:
                 self.callbacks.on_failed(host, host_result)
                 self.failures[host] = 1
+            else:
+                self.callbacks.on_ok(host, host_result)
 
         # now for each result, load into the setup cache so we can
         # let runner template out future commands
diff --git a/lib/ansible/utils.py b/lib/ansible/utils.py
index 28f31dfd919..6b951812810 100755
--- a/lib/ansible/utils.py
+++ b/lib/ansible/utils.py
@@ -54,9 +54,9 @@ def smjson(result):
 
 def task_start_msg(name, conditional):
     if conditional:
-        return "NOTIFIED: [%s] **********\n" % name
+        return "\nNOTIFIED: [%s] **********\n" % name
     else:
-        return "TASK: [%s] *********\n" % name
+        return "\nTASK: [%s] *********\n" % name
 
 def regular_generic_msg(hostname, result, oneline, caption):
     ''' output on the result of a module run that is not command '''
diff --git a/test/TestPlayBook.py b/test/TestPlayBook.py
index c741c298fa1..14560d73795 100644
--- a/test/TestPlayBook.py
+++ b/test/TestPlayBook.py
@@ -35,6 +35,9 @@ class TestCallbacks(object):
     def on_import_for_host(self, host, filename):
         self.events.append([ 'import', [ host, filename ]])
 
+    def on_not_import_for_host(self, host, missing_filename):
+        pass
+
     def on_task_start(self, name, is_conditional):
         self.events.append([ 'task start', [ name, is_conditional ]])
 
@@ -63,6 +66,12 @@ class TestCallbacks(object):
     def on_dark_host(self, host, msg):
         self.events.append([ 'failed/dark', [ host, msg ]])
 
+    def on_setup_primary(self):
+        pass
+    
+    def on_setup_secondary(self):
+        pass
+
 
 class TestRunner(unittest.TestCase):