diff --git a/reactos/lib/userenv/desktop.c b/reactos/lib/userenv/desktop.c
index 70a9fb6352f..0655be3c881 100644
--- a/reactos/lib/userenv/desktop.c
+++ b/reactos/lib/userenv/desktop.c
@@ -1,4 +1,4 @@
-/* $Id: desktop.c,v 1.1 2004/04/29 14:41:26 ekohl Exp $
+/* $Id: desktop.c,v 1.2 2004/05/01 11:55:01 ekohl Exp $
  *
  * COPYRIGHT:       See COPYING in the top level directory
  * PROJECT:         ReactOS system libraries
@@ -71,6 +71,60 @@ GetDesktopPath (BOOL bCommonPath,
 }
 
 
+static BOOL
+GetProgramsPath (BOOL bCommonPath,
+		 LPWSTR lpProgramsPath)
+{
+  WCHAR szPath[MAX_PATH];
+  DWORD dwLength;
+  DWORD dwType;
+  HKEY hKey;
+
+  DPRINT ("GetProgramsPath() called\n");
+
+  if (RegOpenKeyExW (HKEY_CURRENT_USER,
+		     L"Software\\Microsoft\\Windows\\CurrentVersion\\Explorer\\User Shell Folders",
+		     0,
+		     KEY_ALL_ACCESS,
+		     &hKey))
+    {
+      DPRINT1 ("RegOpenKeyExW() failed\n");
+      return FALSE;
+    }
+
+  dwLength = MAX_PATH * sizeof(WCHAR);
+  if (RegQueryValueExW (hKey,
+			bCommonPath ? L"Common Programs" : L"Programs",
+			0,
+			&dwType,
+			(LPBYTE)szPath,
+			&dwLength))
+    {
+      DPRINT1 ("RegQueryValueExW() failed\n");
+      RegCloseKey (hKey);
+      return FALSE;
+    }
+
+  RegCloseKey (hKey);
+
+  if (dwType == REG_EXPAND_SZ)
+    {
+      ExpandEnvironmentStringsW (szPath,
+				 lpProgramsPath,
+				 MAX_PATH);
+    }
+  else
+    {
+      wcscpy (lpProgramsPath,
+	      szPath);
+    }
+
+  DPRINT ("GetProgramsPath() done\n");
+
+  return TRUE;
+}
+
+
 BOOL WINAPI
 AddDesktopItemA (BOOL bCommonItem,
 		 LPCSTR lpItemName,
@@ -243,4 +297,47 @@ DeleteDesktopItemW (BOOL bCommonItem,
   return DeleteFile (szLinkPath);
 }
 
+
+BOOL WINAPI
+CreateGroupA (LPCSTR lpGroupName,
+	      BOOL bCommonGroup)
+{
+  DPRINT1 ("CreateGroupA() not implemented!\n");
+  return FALSE;
+}
+
+
+BOOL WINAPI
+CreateGroupW (LPCWSTR lpGroupName,
+	      BOOL bCommonGroup)
+{
+  WCHAR szGroupPath[MAX_PATH];
+
+  DPRINT ("CreateGroupW() called\n");
+
+  if (lpGroupName == NULL || *lpGroupName == 0)
+    return TRUE;
+
+  if (!GetProgramsPath (bCommonGroup, szGroupPath))
+    {
+      DPRINT1 ("GetProgramsPath() failed\n");
+      return FALSE;
+    }
+  DPRINT ("Programs path: '%S'\n", szGroupPath);
+
+  wcscat (szGroupPath, L"\\");
+  wcscat (szGroupPath, lpGroupName);
+  DPRINT ("Group path: '%S'\n", szGroupPath);
+
+  /* FIXME: Create nested directories */
+  if (!CreateDirectory (szGroupPath, NULL))
+    return FALSE;
+
+  /* FIXME: Notify the shell */
+
+  DPRINT ("CreateGroupW() done\n");
+
+  return TRUE;
+}
+
 /* EOF */
diff --git a/reactos/lib/userenv/environment.c b/reactos/lib/userenv/environment.c
index e77be56f261..c65962b6e71 100644
--- a/reactos/lib/userenv/environment.c
+++ b/reactos/lib/userenv/environment.c
@@ -1,4 +1,4 @@
-/* $Id: environment.c,v 1.2 2004/03/24 16:00:01 ekohl Exp $
+/* $Id: environment.c,v 1.3 2004/05/01 11:55:01 ekohl Exp $
  *
  * COPYRIGHT:       See COPYING in the top level directory
  * PROJECT:         ReactOS system libraries
@@ -270,6 +270,16 @@ CreateEnvironmentBlock (LPVOID *lpEnvironment,
       return FALSE;
     }
 
+  /* Set 'ALLUSERSPROFILE' variable */
+  Length = MAX_PATH;
+  if (GetAllUsersProfileDirectoryW (Buffer,
+				    &Length))
+    {
+      SetUserEnvironmentVariable (lpEnvironment,
+				  L"ALLUSERSPROFILE",
+				  Buffer);
+    }
+
   /* Set 'USERPROFILE' variable */
   Length = MAX_PATH;
   if (GetUserProfileDirectoryW (hToken,
diff --git a/reactos/lib/userenv/userenv.def b/reactos/lib/userenv/userenv.def
index 4c52e97a033..544305f2aa2 100644
--- a/reactos/lib/userenv/userenv.def
+++ b/reactos/lib/userenv/userenv.def
@@ -1,6 +1,8 @@
 LIBRARY userenv.dll
 EXPORTS
 InitializeProfiles@0 @100 NONAME
+CreateGroupA@8 @101 NONAME
+CreateGroupW@8 @102 NONAME
 CreateUserProfileA@8 @109 NONAME
 CreateUserProfileW@8 @110 NONAME
 AddDesktopItemA@32 @113 NONAME
diff --git a/reactos/lib/userenv/userenv.edf b/reactos/lib/userenv/userenv.edf
index 20a0169c053..df109f85fe7 100644
--- a/reactos/lib/userenv/userenv.edf
+++ b/reactos/lib/userenv/userenv.edf
@@ -1,6 +1,8 @@
 LIBRARY userenv.dll
 EXPORTS
 InitializeProfiles=InitializeProfiles@0 @100 NONAME
+CreateGroupA=CreateGroupA@8 @101 NONAME
+CreateGroupW=CreateGroupW@8 @102 NONAME
 CreateUserProfileA=CreateUserProfileA@8 @109 NONAME
 CreateUserProfileW=CreateUserProfileW@8 @110 NONAME
 AddDesktopItemA=AddDesktopItemA@32 @113 NONAME
diff --git a/reactos/w32api/include/userenv.h b/reactos/w32api/include/userenv.h
index 3328758fe6c..d228d679d9a 100644
--- a/reactos/w32api/include/userenv.h
+++ b/reactos/w32api/include/userenv.h
@@ -44,6 +44,8 @@ BOOL WINAPI AddDesktopItemA (BOOL, LPCSTR, LPCSTR, LPCSTR, INT, LPCSTR, WORD, IN
 BOOL WINAPI AddDesktopItemW (BOOL, LPCWSTR, LPCWSTR, LPCWSTR, INT, LPCWSTR, WORD, INT);
 BOOL WINAPI DeleteDesktopItemA (BOOL, LPCSTR);
 BOOL WINAPI DeleteDesktopItemW (BOOL, LPCWSTR);
+BOOL WINAPI CreateGroupA (LPCSTR, BOOL);
+BOOL WINAPI CreateGroupW (LPCWSTR, BOOL);
 /* end private */
 BOOL WINAPI LoadUserProfileA (HANDLE, LPPROFILEINFOA);
 BOOL WINAPI LoadUserProfileW (HANDLE, LPPROFILEINFOW);
@@ -68,6 +70,7 @@ typedef LPPROFILEINFOW LPPROFILEINFO;
 #define CreateUserProfile  CreateUserProfileW
 #define AddDesktopItem  AddDesktopItemW
 #define DeleteDesktopItem  DeleteDesktopItemW
+#define CreateGroup  CreateGroupW
 /* end private */
 #define LoadUserProfile  LoadUserProfileW
 #define GetAllUsersProfileDirectory  GetAllUsersProfileDirectoryW
@@ -81,6 +84,7 @@ typedef LPPROFILEINFOA LPPROFILEINFO;
 #define CreateUserProfile  CreateUserProfileA
 #define AddDesktopItem  AddDesktopItemA
 #define DeleteDesktopItem  DeleteDesktopItemA
+#define CreateGroup  CreateGroupA
 /* end private */
 #define LoadUserProfile  LoadUserProfileA
 #define GetAllUsersProfileDirectory  GetAllUsersProfileDirectoryA