diff --git a/reactos/media/inf/inf.rbuild b/reactos/media/inf/inf.rbuild
index 44d63060f05..6e3327f557f 100644
--- a/reactos/media/inf/inf.rbuild
+++ b/reactos/media/inf/inf.rbuild
@@ -14,7 +14,7 @@
 <installfile base="inf">nettcpip.inf</installfile>
 <installfile base="inf">ports.inf</installfile>
 <installfile base="inf">scsi.inf</installfile>
-<installfile base="inf">syssetup.inf</installfile>
+<installfile base="inf" root="intermediate">syssetup.inf</installfile>
 <installfile base="inf">usbport.inf</installfile>
 <installfile base="inf">usbstor.inf</installfile>
 <installfile base="inf">xboxdisp.inf</installfile>
diff --git a/reactos/tools/rbuild/installfile.cpp b/reactos/tools/rbuild/installfile.cpp
index f427b0bf96a..f048fa96088 100644
--- a/reactos/tools/rbuild/installfile.cpp
+++ b/reactos/tools/rbuild/installfile.cpp
@@ -23,8 +23,8 @@
 using std::string;
 
 InstallFile::InstallFile ( const Project& project_,
-	                       const XMLElement& installfileNode,
-	                       const string& path )
+                           const XMLElement& installfileNode,
+                           const string& path )
 	: project ( project_ ),
 	  node ( installfileNode )
 {
@@ -40,7 +40,24 @@ InstallFile::InstallFile ( const Project& project_,
 	else
 		newname = node.value;
 	name = node.value;
-	this->path = path;
+
+	att = node.GetAttribute ( "root", false );
+	if ( att != NULL)
+	{
+		if ( att->value == "intermediate" )
+			this->path = Environment::GetIntermediatePath () + sSep + path;
+		else if ( att->value == "output" )
+			this->path = Environment::GetOutputPath () + sSep + path;
+		else
+		{
+			throw InvalidAttributeValueException (
+				node.location,
+				"root",
+				att->value );
+		}
+	}
+	else
+		this->path = path;
 }
 
 InstallFile::~InstallFile ()
diff --git a/reactos/tools/rbuild/syssetupgenerator.cpp b/reactos/tools/rbuild/syssetupgenerator.cpp
index ce89155897b..acc64255901 100644
--- a/reactos/tools/rbuild/syssetupgenerator.cpp
+++ b/reactos/tools/rbuild/syssetupgenerator.cpp
@@ -39,7 +39,7 @@ SysSetupGenerator::Generate ()
 	unsigned long errorLine;
 
 	string syssetupTemplate = "media" + sSep + "inf" + sSep + "syssetup.inf.tpl";
-	string syssetup = "media" + sSep + "inf" + sSep + "syssetup.inf";
+	string syssetup = Environment::GetIntermediatePath() + sSep + "media" + sSep + "inf" + sSep + "syssetup.inf";
 
 	if ( 0 != InfHostOpenFile ( &inf, syssetupTemplate.c_str (), &errorLine ) )
 		throw new FileNotFoundException ( syssetupTemplate );