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A version of WRF-ARW using a 0.444-km nested grid and very fine vertical resolution is run daily and verified against special local wind observations on a network of 10-m towers in the Nittany Valley of Pennsylvania. Evaluations conducted in autumn 2007 and early summer 2008 show considerably smaller errors on the sub-kilometer grid compared to a coarser 1.333-km grid. Errors are also reduced when near-surface vertical resolution is increased, up to using as many as 10 layers below 50 m above ground level (AGL). Scale decompositions indicate that the mesoscale wind variations are predicted well in the deterministic sense, while statistical characteristics of the higher-frequency sub-mesoscale variability may be predictable for at least some cases. Evidence from WRF indicates the chief sources of near-surface wind variance in the SBL are terrain-induced drainage and transient internal gravity waves in the flow aloft. These lead to meandering-wind patterns in the SBL, which are revealed both in parcel trajectories and in plume predictions calculated using the HPAC-SCIPUFF dispersion model.