diff --git a/reactos/subsys/system/reactos/.cvsignore b/reactos/subsys/system/reactos/.cvsignore
new file mode 100644
index 00000000000..5d0597a452b
--- /dev/null
+++ b/reactos/subsys/system/reactos/.cvsignore
@@ -0,0 +1,7 @@
+*.a
+*.o
+*.d
+*.exe
+*.coff
+*.sym
+*.map
\ No newline at end of file
diff --git a/reactos/subsys/system/reactos/De.rc b/reactos/subsys/system/reactos/De.rc
new file mode 100644
index 00000000000..9480b04c001
--- /dev/null
+++ b/reactos/subsys/system/reactos/De.rc
@@ -0,0 +1,14 @@
+/* $Id: De.rc,v 1.1 2004/12/24 17:16:43 ekohl Exp $ */
+
+LANGUAGE LANG_GERMAN, SUBLANG_GERMAN
+
+/* String Tables */
+
+STRINGTABLE DISCARDABLE 
+BEGIN
+    IDS_CAPTION  "ReactOS Setup"
+    IDS_TEXT     "ReactOS kann nicht direct von dieser CD installiert werden!\n\n"\
+                 "Bitte starten Sie Ihren Computer mit dieser CD um ReactOS zu installieren."
+END
+
+/* EOF */
diff --git a/reactos/subsys/system/reactos/En.rc b/reactos/subsys/system/reactos/En.rc
new file mode 100644
index 00000000000..c2734d8e0ae
--- /dev/null
+++ b/reactos/subsys/system/reactos/En.rc
@@ -0,0 +1,13 @@
+/* $Id: En.rc,v 1.1 2004/12/24 17:16:43 ekohl Exp $ */
+
+LANGUAGE LANG_ENGLISH, SUBLANG_ENGLISH_US
+
+/* String Tables */
+STRINGTABLE DISCARDABLE 
+BEGIN
+    IDS_CAPTION  "ReactOS Setup"
+    IDS_TEXT     "You cannot install ReactOS directly from this CD!\n\n"\
+                 "Please restart your computer from this CD in order to install ReactOS."
+END
+
+/* EOF */
diff --git a/reactos/subsys/system/reactos/Makefile b/reactos/subsys/system/reactos/Makefile
new file mode 100644
index 00000000000..8634186d50f
--- /dev/null
+++ b/reactos/subsys/system/reactos/Makefile
@@ -0,0 +1,19 @@
+# $Id: Makefile,v 1.1 2004/12/24 17:16:43 ekohl Exp $
+
+PATH_TO_TOP = ../../..
+
+TARGET_TYPE = program
+
+TARGET_APPTYPE = windows
+
+TARGET_NAME = reactos
+
+TARGET_CFLAGS = -Wall -Werror -D_WIN32_IE=0x0501 -D_WIN32_WINNT=0x0501 -D__USE_W32API
+
+TARGET_SDKLIBS = kernel32.a gdi32.a user32.a
+
+TARGET_OBJECTS = reactos.o
+
+include $(PATH_TO_TOP)/rules.mak
+
+include $(TOOLS_PATH)/helper.mk
diff --git a/reactos/subsys/system/reactos/reactos.c b/reactos/subsys/system/reactos/reactos.c
new file mode 100644
index 00000000000..d4e422c213b
--- /dev/null
+++ b/reactos/subsys/system/reactos/reactos.c
@@ -0,0 +1,71 @@
+/*
+ *  ReactOS applications
+ *  Copyright (C) 2004 ReactOS Team
+ *
+ *  This program is free software; you can redistribute it and/or modify
+ *  it under the terms of the GNU General Public License as published by
+ *  the Free Software Foundation; either version 2 of the License, or
+ *  (at your option) any later version.
+ *
+ *  This program is distributed in the hope that it will be useful,
+ *  but WITHOUT ANY WARRANTY; without even the implied warranty of
+ *  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ *  GNU General Public License for more details.
+ *
+ *  You should have received a copy of the GNU General Public License
+ *  along with this program; if not, write to the Free Software
+ *  Foundation, Inc., 675 Mass Ave, Cambridge, MA 02139, USA.
+ */
+/* $Id: reactos.c,v 1.1 2004/12/24 17:16:43 ekohl Exp $
+ *
+ * COPYRIGHT:   See COPYING in the top level directory
+ * PROJECT:     ReactOS GUI first stage setup application
+ * FILE:        subsys/system/reactos/reactos.c
+ * PROGRAMMERS: Eric Kohl
+ */
+
+#include <windows.h>
+#include <tchar.h>
+
+#include "resource.h"
+
+
+/* GLOBALS ******************************************************************/
+
+TCHAR szCaption[256];
+TCHAR szText[256];
+
+HINSTANCE hInstance;
+
+
+/* FUNCTIONS ****************************************************************/
+
+int WINAPI
+WinMain(HINSTANCE hInst,
+	HINSTANCE hPrevInstance,
+	LPSTR lpszCmdLine,
+	int nCmdShow)
+{
+  hInstance = hInst;
+
+  if (!LoadString(hInstance,
+                  IDS_CAPTION,
+                  szCaption,
+                  256))
+    return 0;
+
+  if (!LoadString(hInstance,
+                  IDS_TEXT,
+                  szText,
+                  256))
+    return 0;
+
+  MessageBox(NULL,
+	     szText,
+	     szCaption,
+	     MB_OK | MB_ICONINFORMATION);
+
+  return 0;
+}
+
+/* EOF */
diff --git a/reactos/subsys/system/reactos/reactos.rc b/reactos/subsys/system/reactos/reactos.rc
new file mode 100644
index 00000000000..0284691bd12
--- /dev/null
+++ b/reactos/subsys/system/reactos/reactos.rc
@@ -0,0 +1,22 @@
+/* $Id: reactos.rc,v 1.1 2004/12/24 17:16:43 ekohl Exp $ */
+
+#include <defines.h>
+#include "resource.h"
+
+#define REACTOS_STR_FILE_DESCRIPTION	"ReactOS Setup\0"
+#define REACTOS_STR_INTERNAL_NAME	"reactos\0"
+#define REACTOS_STR_ORIGINAL_FILENAME	"reactos.exe\0"
+#include <reactos/version.rc>
+
+
+LANGUAGE LANG_NEUTRAL, SUBLANG_NEUTRAL
+
+/* Icons */
+IDI_MAIN ICON "res/reactos.ico"
+
+
+/* Language-specific resources */
+#include "De.rc"
+#include "En.rc"
+
+/* EOF */
diff --git a/reactos/subsys/system/reactos/res/reactos.ico b/reactos/subsys/system/reactos/res/reactos.ico
new file mode 100644
index 00000000000..fffc2801755
Binary files /dev/null and b/reactos/subsys/system/reactos/res/reactos.ico differ
diff --git a/reactos/subsys/system/reactos/resource.h b/reactos/subsys/system/reactos/resource.h
new file mode 100644
index 00000000000..ffb9c7a9b1d
--- /dev/null
+++ b/reactos/subsys/system/reactos/resource.h
@@ -0,0 +1,5 @@
+
+#define IDS_CAPTION   1000
+#define IDS_TEXT      1001
+
+#define IDI_MAIN      3000