diff --git a/py/test/pycollect.py b/py/test/pycollect.py
index 24dd5442b..0e21c4d9e 100644
--- a/py/test/pycollect.py
+++ b/py/test/pycollect.py
@@ -247,7 +247,7 @@ class FunctionMixin(PyobjMixin):
             obj = self.parent.obj 
         setup_func_or_method = getattr(obj, name, None)
         if setup_func_or_method is not None: 
-            return setup_func_or_method(self.obj) 
+            setup_func_or_method(self.obj) 
 
     def teardown(self): 
         """ perform teardown for this test function. """
@@ -345,14 +345,18 @@ class Function(FunctionMixin, py.test.collect.Item):
 
     def runtest(self):
         """ execute the given test function. """
-        if not self._deprecated_testexecution():
-            self.setupargs() # XXX move to setup() / consider funcargs plugin
-            ret = self.config.api.pytest_pyfunc_call(
-                pyfuncitem=self, args=self._args, kwargs=self.funcargs)
+        self.config.api.pytest_pyfunc_call(pyfuncitem=self, 
+            args=self._args, kwargs=self.funcargs)
 
-    def setupargs(self):
+    def setup(self):
+        super(Function, self).setup()
+        self._setupfuncargs()
+
+    def _setupfuncargs(self):
         if self._args:
-            # generator case: we don't do anything then
+            # functions yielded from a generator: we don't want
+            # to support that because we want to go here anyway: 
+            # http://bitbucket.org/hpk42/py-trunk/issue/2/next-generation-generative-tests
             pass
         else:
             # standard Python Test function/method case  
diff --git a/py/test/runner.py b/py/test/runner.py
index e89f15071..11fb01554 100644
--- a/py/test/runner.py
+++ b/py/test/runner.py
@@ -20,7 +20,8 @@ def basic_run_report(item, pdb=None):
             item.config._setupstate.prepare(item)
             try:
                 when = "execute"
-                res = item.runtest()
+                if not item._deprecated_testexecution():
+                    item.runtest()
             finally:
                 when = "teardown"
                 item.config._setupstate.teardown_exact(item)
diff --git a/py/test/testing/test_deprecated_api.py b/py/test/testing/test_deprecated_api.py
index 1c9f83302..d217c4c29 100644
--- a/py/test/testing/test_deprecated_api.py
+++ b/py/test/testing/test_deprecated_api.py
@@ -105,7 +105,7 @@ class TestCollectDeprecated:
         funcitem = modcol.collect()[0]
         assert funcitem.name == 'test_func'
         recwarn.clear()
-        funcitem.runtest()
+        funcitem._deprecated_testexecution()
         recwarn.pop(DeprecationWarning)
 
     def test_function_custom_execute(self, testdir, recwarn):
diff --git a/py/test/testing/test_funcargs.py b/py/test/testing/test_funcargs.py
index adbc47d4a..9546bce77 100644
--- a/py/test/testing/test_funcargs.py
+++ b/py/test/testing/test_funcargs.py
@@ -8,7 +8,7 @@ class TestFuncargs:
                     return 42
         """)
         item = testdir.getitem("def test_func(some): pass")
-        exc = py.test.raises(LookupError, "item.setupargs()")
+        exc = py.test.raises(LookupError, "item._setupfuncargs()")
         s = str(exc.value)
         assert s.find("xyzsomething") != -1
 
@@ -18,7 +18,7 @@ class TestFuncargs:
             def pytest_funcarg__some(self, request):
                 return request.function.__name__
         item.config.pluginmanager.register(Provider())
-        item.setupargs()
+        item._setupfuncargs()
         assert len(item.funcargs) == 1
 
     def test_funcarg_lookup_default_gets_overriden(self, testdir):
@@ -27,7 +27,7 @@ class TestFuncargs:
             def pytest_funcarg__other(self, request):
                 return request.function.__name__
         item.config.pluginmanager.register(Provider())
-        item.setupargs()
+        item._setupfuncargs()
         assert len(item.funcargs) == 1
         name, value = item.funcargs.popitem()
         assert name == "other"
@@ -41,7 +41,7 @@ class TestFuncargs:
             def pytest_funcarg__other(self, request):
                 return 42
         item.config.pluginmanager.register(Provider())
-        item.setupargs()
+        item._setupfuncargs()
         assert len(item.funcargs) == 2
         assert item.funcargs['some'] == "test_func"
         assert item.funcargs['other'] == 42
@@ -58,9 +58,9 @@ class TestFuncargs:
                 pass 
         """)
         item1, item2 = testdir.genitems([modcol])
-        item1.setupargs()
+        item1._setupfuncargs()
         assert item1.funcargs['something'] ==  "test_method"
-        item2.setupargs()
+        item2._setupfuncargs()
         assert item2.funcargs['something'] ==  "test_func"
 
 class TestRequest: