diff --git a/reactos/CREDITS b/reactos/CREDITS
index da53dcf6a7d..9184dbb2603 100644
--- a/reactos/CREDITS
+++ b/reactos/CREDITS
@@ -2,7 +2,7 @@ In no particular order
 
 Rex Jolliff (rex@lvcablemodem.com)
 Boudewijn Dekker (ariadne@xs4all.nl)
-Eric Kohl (ekohl@abo.rhein-zeitung.de)
+Eric Kohl (ekohl@rz-online.de)
 Emanuele Aliberti (ea@iol.it)
 David Welch (welch@cwcom.net)
 Iwan Fatahi (i_fatahi@hotmail.com)
diff --git a/reactos/Makefile b/reactos/Makefile
index 4a4d5a55a24..462e5d3225c 100644
--- a/reactos/Makefile
+++ b/reactos/Makefile
@@ -46,8 +46,12 @@ NET_DRIVERS = ndis tcpip tditest wshtcpip
 # ne2000
 NET_DEVICE_DRIVERS = ne2000
 
+#
+# system applications (required for startup)
+#
+SYS_APPS = shell winlogon services
 
-APPS = args hello shell test cat bench apc shm lpc thread event file gditest \
+APPS = args hello test cat bench apc shm lpc thread event file gditest \
        pteb consume dump_shared_data vmtest regtest
 #       objdir
 
@@ -57,12 +61,12 @@ NET_APPS = ping
 
 KERNEL_SERVICES = $(DEVICE_DRIVERS) $(INPUT_DRIVERS) $(FS_DRIVERS) $(NET_DRIVERS) $(NET_DEVICE_DRIVERS)
 
-all: buildno $(COMPONENTS) $(DLLS) $(SUBSYS) $(LOADERS) $(KERNEL_SERVICES) $(APPS) $(NET_APPS)
+all: buildno $(COMPONENTS) $(DLLS) $(SUBSYS) $(LOADERS) $(KERNEL_SERVICES) $(SYS_APPS) $(APPS) $(NET_APPS)
 
 .PHONY: all
 
 clean: buildno_clean $(COMPONENTS:%=%_clean) $(DLLS:%=%_clean) $(LOADERS:%=%_clean) \
-       $(KERNEL_SERVICES:%=%_clean) $(SUBSYS:%=%_clean) $(APPS:%=%_clean)
+       $(KERNEL_SERVICES:%=%_clean) $(SUBSYS:%=%_clean) $(SYS_APPS:%=%_clean) $(APPS:%=%_clean)
 
 .PHONY: clean
 
@@ -88,11 +92,11 @@ endif
 install: rcopy$(EXE_POSTFIX) rmkdir$(EXE_POSTFIX) make_install_dirs autoexec_install $(COMPONENTS:%=%_install) \
         $(DLLS:%=%_install) $(LOADERS:%=%_install) \
         $(KERNEL_SERVICES:%=%_install) $(SUBSYS:%=%_install) \
-        $(APPS:%=%_install)
+        $(SYS_APPS:%=%_install) $(APPS:%=%_install)
 
 dist: rcopy$(EXE_POSTFIX) clean_dist_dir make_dist_dirs $(COMPONENTS:%=%_dist) $(DLLS:%=%_dist) \
       $(LOADERS:%=%_dist) $(KERNEL_SERVICES:%=%_dist) $(SUBSYS:%=%_dist) \
-      $(APPS:%=%_dist)
+      $(SYS_APPS:%=%_dist) $(APPS:%=%_dist)
 
 #
 # Build number generator
@@ -109,6 +113,23 @@ buildno_install:
 
 .PHONY: buildno buildno_clean buildno_dist buildno_install
 
+#
+# System Applications
+#
+$(SYS_APPS): %:
+	make -C apps/system/$*
+
+$(SYS_APPS:%=%_clean): %_clean:
+	make -C apps/system/$* clean
+
+$(SYS_APPS:%=%_dist): %_dist:
+	make -C apps/system/$* dist
+
+$(SYS_APPS:%=%_install): %_install:
+	make -C apps/system/$* install
+
+.PHONY: $(SYS_APPS) $(SYS_APPS:%=%_clean) $(SYS_APPS:%=%_install) $(SYS_APPS:%=%_dist)
+
 #
 # Applications
 #
diff --git a/reactos/apps/utils/shell/makefile b/reactos/apps/utils/shell/makefile
deleted file mode 100644
index 5a73007a7fc..00000000000
--- a/reactos/apps/utils/shell/makefile
+++ /dev/null
@@ -1,36 +0,0 @@
-#
-#
-#
-PATH_TO_TOP = ../..
-
-OBJECTS= shell.o
-PROGS= shell.exe
-LIBS= ../../lib/kernel32/kernel32.a ../../lib/ntdll/ntdll.a
-CLEAN_FILES= shell.o shell.exe shell.sym
-
-BASE_CFLAGS = -I../../include
-
-all: shell.exe
-
-clean: $(CLEAN_FILES:%=%_clean)
-
-$(CLEAN_FILES:%=%_clean): %_clean:
-	- $(RM) $*
-
-.phony: clean $(CLEAN_FILES:%=%_clean)
-
-install: $(PROGS:%=$(FLOPPY_DIR)/apps/%)
-
-$(PROGS:%=$(FLOPPY_DIR)/apps/%): $(FLOPPY_DIR)/apps/%: %
-	$(CP) $* $(FLOPPY_DIR)/apps/$*
-
-dist: $(PROGS:%=../../$(DIST_DIR)/apps/%)
-
-$(PROGS:%=../../$(DIST_DIR)/apps/%): ../../$(DIST_DIR)/apps/%: %
-	$(CP) $* ../../$(DIST_DIR)/apps/$*
-
-shell.exe: $(OBJECTS) $(LIBS)
-	$(CC) $(OBJECTS) $(LIBS) -lgcc -o shell.exe
-	$(NM) --numeric-sort shell.exe > shell.sym
-
-include ../../rules.mak
diff --git a/reactos/doc/DIRS b/reactos/doc/DIRS
index 38f0f3ec735..576ac4179df 100644
--- a/reactos/doc/DIRS
+++ b/reactos/doc/DIRS
@@ -1,22 +1,24 @@
 DIRECTORIES
 
-system           : compiled versions of the various system components and
-                   libraries
-ntoskrnl         : kernel source
-ntoskrnl/hal     : hardware abstraction layer source
-ntoskrnl/mm      : memory managment subsystem source
-ntoskrnl/io      : IO manager subsystem source
-ntoskrnl/ke      : kernel source
+apps             : applications (base directory)
+apps/net         : network applications
+apps/system      : system applications (required for startup)
+doc              : documentation
 include          : win32 headers
 include/internal : kernel private header files
 include/ntdll    : system library private header files
 include/kernel32 : system library private header files
 include/ddk      : header files for modules
-lib/ntdll        : NT dll source
+lib/advapi32     : advapi32 source
 lib/kernel32     : kernel32 source
-doc              : documentation
+lib/ntdll        : NT dll source
 loaders/dos      : DOS based loader
 loaders/boot     : boot loader
+ntoskrnl         : kernel source
+ntoskrnl/hal     : hardware abstraction layer source
+ntoskrnl/mm      : memory managment subsystem source
+ntoskrnl/io      : IO manager subsystem source
+ntoskrnl/ke      : kernel source
 services         : various services (device drivers, filesystems etc)
 services/dd      : device drivers
 services/fs      : file systems
diff --git a/reactos/drivers/services/makefile b/reactos/drivers/services/makefile
deleted file mode 100644
index dce70a074ff..00000000000
--- a/reactos/drivers/services/makefile
+++ /dev/null
@@ -1,55 +0,0 @@
-# $Id: makefile,v 1.3 2000/11/20 19:59:13 ekohl Exp $
-#
-# CSRSS: Client/server runtime subsystem
-#
-# ReactOS Operating System
-#
-TARGET = services
-
-BASE_CFLAGS = -I../../include -I.
-
-OBJECTS = 
-
-LIBS = ../../lib/ntdll/ntdll.a
-
-all: $(TARGET).exe
-
-.phony: all
-
-clean:
-	- $(RM) api/*.o
-	- $(RM) sbapi/*.o
-	- $(RM) *.o
-	- $(RM) $(TARGET).exe
-	- $(RM) $(TARGET).sym
-	- $(RM) $(TARGET).coff
-
-.phony: clean
-
-$(TARGET).coff: $(TARGET).rc
-	$(RC) $(TARGET).rc $(TARGET).coff
-
-$(TARGET).exe: $(OBJECTS) $(LIBS)
-	$(LD) \
-		$(OBJECTS) \
-		$(LIBS) \
-		-o $(TARGET).exe \
-		--subsystem native
-	$(NM) --numeric-sort $(TARGET).exe > $(TARGET).sym
-
-
-install: $(FLOPPY_DIR)/subsys/$(TARGET).exe
-
-$(FLOPPY_DIR)/subsys/$(TARGET).exe: $(TARGET).exe
-	$(CP) $(TARGET).exe $(FLOPPY_DIR)/subsys/$(TARGET).exe
-
-
-dist: $(DIST_DIR)/subsys/$(TARGET).exe
-
-$(DIST_DIR)/subsys/$(TARGET).exe: $(TARGET).exe
-	$(CP) $(TARGET).exe ../../$(DIST_DIR)/subsys/$(TARGET).exe
-
-
-include ../../rules.mak
-
-# EOF
diff --git a/reactos/drivers/services/services.c b/reactos/drivers/services/services.c
deleted file mode 100644
index 61527cc1a29..00000000000
--- a/reactos/drivers/services/services.c
+++ /dev/null
@@ -1,77 +0,0 @@
-/* $Id: services.c,v 1.1 2000/03/26 22:00:09 dwelch Exp $
- *
- * service control manager
- * 
- * ReactOS Operating System
- * 
- * --------------------------------------------------------------------
- *
- * This software 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 software 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
- * Library General Public License for more details.
- *
- * You should have received a copy of the GNU General Public License
- * along with this software; see the file COPYING.LIB. If not, write
- * to the Free Software Foundation, Inc., 675 Mass Ave, Cambridge,
- * MA 02139, USA.  
- *
- */
-
-#include <ddk/ntddk.h>
-#include <ntdll/rtl.h>
-#include <services/services.h>
-
-VOID ServicesInitialization(VOID)
-{
-   
-}
-
-/* Native process' entry point */
-
-VOID NtProcessStartup(PPEB Peb)
-{
-   OBJECT_ATTRIBUTES ObjectAttributes;
-   HANDLE ServicesInitEvent;
-   UNICODE_STRING UnicodeString;
-   NTSTATUS Status;
-   
-   DisplayString(L"Service Control Manager\n");
-   
-   RtlInitUnicodeString(&UnicodeString,
-			L"\\ServicesInitDone");
-   InitializeObjectAttributes(&ObjectAttributes,
-			      &UnicodeString,
-			      EVENT_ALL_ACCESS,
-			      0,
-			      NULL);
-   Status = NtOpenEvent(&ServicesInitEvent,
-			EVENT_ALL_ACCESS,
-			&ObjectAttributes);
-   if (!NT_SUCCESS(Status))
-     {
-	DbgPrint("SERVICES: Failed to open notification event\n");
-     }
-   
-   Status = ServicesInitialization ();
-   
-   if (!NT_SUCCESS(Status))
-     {
-	DisplayString( L"SERVICES: Subsystem failed to initialize.\n" );
-	
-	NtTerminateProcess(NtCurrentProcess(), Status);
-     }
-
-   
-   DisplayString( L"CSR: Subsystem initialized.\n" );
-
-   NtSetEvent(ServicesInitEvent, NULL);
-   NtTerminateThread(NtCurrentThread(), STATUS_SUCCESS);
-}
-
-/* EOF */
diff --git a/reactos/services/winlogon/init.c b/reactos/services/winlogon/init.c
deleted file mode 100644
index 40868f85f16..00000000000
--- a/reactos/services/winlogon/init.c
+++ /dev/null
@@ -1,23 +0,0 @@
-/* $Id: init.c,v 1.2 1999/07/17 23:10:29 ea Exp $
- *
- * reactos/services/winlogon/init.c
- *
- */
-#include <windows.h>
-
-BOOL
-Initialize(VOID)
-{
-	/* SERVICES CONTROLLER */
-	NtCreateProcess(
-		L"\\\\??\\C:\\reactos\\system\\services.exe"
-		);
-	/* LOCAL SECURITY AUTORITY SUBSYSTEM */
-	NtCreateProcess(
-		L"\\\\??\\C:\\reactos\\system\\lsass.exe"
-		);
-	return TRUE;
-}
-
-
-/* EOF */
diff --git a/reactos/services/winlogon/makefile b/reactos/services/winlogon/makefile
deleted file mode 100644
index 4b0fefde5ad..00000000000
--- a/reactos/services/winlogon/makefile
+++ /dev/null
@@ -1,37 +0,0 @@
-# $Id: makefile,v 1.3 2000/08/12 19:33:23 dwelch Exp $
-#
-# Logon/login Application
-#
-# ReactOS Operating System
-#
-TARGET = winlogon
-
-BASE_CFLAGS = -I../../include
-
-OBJECTS = winlogon.o $(TARGET).coff
-
-LIBS = -lkernel32 ../../lib/ntdll/ntdll.a
-
-all: $(TARGET).exe
-
-.phony: all
-
-clean:
-	- $(RM) $(TARGET).o
-	- $(RM) $(TARGET).exe
-	- $(RM) $(TARGET).sym
-	- $(RM) $(TARGET).coff
-
-.phony: clean
-
-$(TARGET).coff: $(TARGET).rc
-	$(RC) $(TARGET).rc $(TARGET).coff
-
-$(TARGET).exe: $(OBJECTS)
-	$(CC) \
-		$(OBJECTS) \
-		$(LIBS) \
-		-o $(TARGET).exe 
-	$(NM) --numeric-sort $(TARGET).exe > $(TARGET).sym
-
-include ../../rules.mak
diff --git a/reactos/subsys/system/services/makefile b/reactos/subsys/system/services/makefile
new file mode 100644
index 00000000000..2e56c5a1400
--- /dev/null
+++ b/reactos/subsys/system/services/makefile
@@ -0,0 +1,45 @@
+# $Id: makefile,v 1.1 2000/12/05 02:38:08 ekohl Exp $
+#
+# Services: Service control manager (SCM)
+#
+# ReactOS Operating System
+#
+TARGET = services
+PROGS = services.exe
+
+PATH_TO_TOP = ../../..
+
+OBJECTS = services.o services.coff
+LIBS = ../../../lib/kernel32/kernel32.a ../../../lib/ntdll/ntdll.a
+CLEAN_FILES = services.o services.coff services.exe services.sym
+
+BASE_CFLAGS = -I../../../include
+
+all: services.exe
+
+$(TARGET).coff: $(TARGET).rc
+	$(RC) $(TARGET).rc $(TARGET).coff
+
+$(TARGET).exe: $(OBJECTS) $(LIBS)
+	$(CC) $(OBJECTS) $(LIBS) -o $(TARGET).exe
+	$(NM) --numeric-sort $(TARGET).exe > $(TARGET).sym
+
+clean: $(CLEAN_FILES:%=%_clean)
+
+$(CLEAN_FILES:%=%_clean): %_clean:
+	- $(RM) $*
+
+.phony: clean $(CLEAN_FILES:%=%_clean)
+
+install: $(PROGS:%=$(FLOPPY_DIR)/apps/%)
+
+$(PROGS:%=$(FLOPPY_DIR)/apps/%): $(FLOPPY_DIR)/apps/%: %
+	$(CP) $* $(FLOPPY_DIR)/apps/$*
+
+dist: $(PROGS:%=../../../$(DIST_DIR)/apps/%)
+
+$(PROGS:%=../../../$(DIST_DIR)/apps/%): ../../../$(DIST_DIR)/apps/%: %
+	$(CP) $* ../../../$(DIST_DIR)/apps/$*
+
+
+include $(PATH_TO_TOP)/rules.mak
diff --git a/reactos/subsys/system/services/services.c b/reactos/subsys/system/services/services.c
new file mode 100644
index 00000000000..0509b9d6b59
--- /dev/null
+++ b/reactos/subsys/system/services/services.c
@@ -0,0 +1,134 @@
+/* $Id: services.c,v 1.1 2000/12/05 02:38:08 ekohl Exp $
+ *
+ * service control manager
+ * 
+ * ReactOS Operating System
+ * 
+ * --------------------------------------------------------------------
+ *
+ * This software 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 software 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
+ * Library General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this software; see the file COPYING.LIB. If not, write
+ * to the Free Software Foundation, Inc., 675 Mass Ave, Cambridge,
+ * MA 02139, USA.  
+ *
+ */
+
+/* NOTE:
+ * - Services.exe is NOT a native application, it is a GUI app.
+ */
+
+/* INCLUDES *****************************************************************/
+
+#define NTOS_MODE_USER
+#include <ntos.h>
+#include <windows.h>
+
+#include <services/services.h>
+
+/* GLOBALS ******************************************************************/
+
+HANDLE OutputHandle;
+
+
+/* FUNCTIONS *****************************************************************/
+
+void PrintString (char* fmt,...)
+{
+   char buffer[512];
+   va_list ap;
+
+   va_start(ap, fmt);
+   vsprintf(buffer, fmt, ap);
+   va_end(ap);
+
+   WriteConsoleA(OutputHandle, buffer, strlen(buffer), NULL, NULL);
+}
+
+
+BOOL ScmCreateStartEvent(PHANDLE StartEvent)
+{
+   HANDLE hEvent;
+
+   hEvent = CreateEvent(NULL,
+			TRUE,
+			FALSE,
+			_T("SvcctrlStartEvent_A3725DX"));
+   if (hEvent == NULL)
+     {
+	if (GetLastError() == ERROR_ALREADY_EXISTS)
+	  {
+	     hEvent = OpenEvent(EVENT_ALL_ACCESS,
+				FALSE,
+				_T("SvcctrlStartEvent_A3725DX"));
+	     if (hEvent == NULL)
+	       {
+		  return FALSE;
+	       }
+	  }
+	else
+	  {
+	     return FALSE;
+	  }
+     }
+
+   *StartEvent = hEvent;
+
+   return TRUE;
+}
+
+
+//int main (int argc, char *argv[])
+int STDCALL
+WinMain(HINSTANCE hInstance,
+	HINSTANCE hPrevInstance,
+	LPSTR lpCmdLine,
+	int nShowCmd)
+{
+   HANDLE hScmStartEvent;
+   
+   AllocConsole();
+   OutputHandle = GetStdHandle(STD_OUTPUT_HANDLE);
+   
+   PrintString("Service Control Manager\n");
+   
+   /* Create start event */
+   if (!ScmCreateStartEvent(&hScmStartEvent))
+     {
+	PrintString("SERVICES: Failed to create start event\n");
+	ExitThread(0);
+     }
+   
+
+
+
+   /* FIXME: more initialization */
+
+
+
+   
+   PrintString("SERVICES: Initialized.\n");
+
+   /* Signal start event */
+   SetEvent(hScmStartEvent);
+
+
+   /* FIXME: more to do ? */
+
+
+   PrintString("SERVICES: Running.\n");
+
+   ExitThread (0);
+   return 0;
+}
+
+/* EOF */
diff --git a/reactos/drivers/services/services.rc b/reactos/subsys/system/services/services.rc
similarity index 75%
rename from reactos/drivers/services/services.rc
rename to reactos/subsys/system/services/services.rc
index c2ecd4d2f60..6870571831f 100644
--- a/reactos/drivers/services/services.rc
+++ b/reactos/subsys/system/services/services.rc
@@ -1,5 +1,5 @@
-#include "../../include/defines.h"
-#include "../../include/reactos/resource.h"
+#include "../../../include/defines.h"
+#include "../../../include/reactos/resource.h"
 
 LANGUAGE LANG_ENGLISH, SUBLANG_ENGLISH_US
 
@@ -21,11 +21,11 @@ BEGIN
         BLOCK "040904b0"
         BEGIN
             VALUE "CompanyName",	RES_STR_COMPANY_NAME
-            VALUE "FileDescription",	"Client/Server Runtime Process\0"
+            VALUE "FileDescription",	"Service Control Manager\0"
             VALUE "FileVersion",	RES_STR_FILE_VERSION
-            VALUE "InternalName",	"CSRSs and CSRSrv\0"
+            VALUE "InternalName",	"Services\0"
             VALUE "LegalCopyright",	RES_STR_LEGAL_COPYRIGHT
-            VALUE "OriginalFilename",	"CSRSs.exe and CSRSrv.dll\0"
+            VALUE "OriginalFilename",	"Services.exe\0"
             VALUE "ProductName",	RES_STR_PRODUCT_NAME
             VALUE "ProductVersion",	RES_STR_PRODUCT_VERSION
         END
diff --git a/reactos/subsys/system/shell/makefile b/reactos/subsys/system/shell/makefile
new file mode 100644
index 00000000000..0674ff853d4
--- /dev/null
+++ b/reactos/subsys/system/shell/makefile
@@ -0,0 +1,45 @@
+# $Id: makefile,v 1.1 2000/12/05 02:38:08 ekohl Exp $
+#
+# Shell: Simple shell application
+#
+# ReactOS Operating System
+#
+TARGET = shell
+PROGS = shell.exe
+
+PATH_TO_TOP = ../../..
+
+OBJECTS= shell.o shell.coff
+LIBS= ../../../lib/kernel32/kernel32.a ../../../lib/ntdll/ntdll.a
+CLEAN_FILES= shell.o shell.coff shell.exe shell.sym
+
+BASE_CFLAGS = -I../../../include
+
+all: shell.exe
+
+$(TARGET).coff: $(TARGET).rc
+	$(RC) $(TARGET).rc $(TARGET).coff
+
+shell.exe: $(OBJECTS) $(LIBS)
+	$(CC) $(OBJECTS) $(LIBS) -lgcc -o shell.exe
+	$(NM) --numeric-sort shell.exe > shell.sym
+
+clean: $(CLEAN_FILES:%=%_clean)
+
+$(CLEAN_FILES:%=%_clean): %_clean:
+	- $(RM) $*
+
+.phony: clean $(CLEAN_FILES:%=%_clean)
+
+install: $(PROGS:%=$(FLOPPY_DIR)/apps/%)
+
+$(PROGS:%=$(FLOPPY_DIR)/apps/%): $(FLOPPY_DIR)/apps/%: %
+	$(CP) $* $(FLOPPY_DIR)/apps/$*
+
+dist: $(PROGS:%=../../../$(DIST_DIR)/apps/%)
+
+$(PROGS:%=../../../$(DIST_DIR)/apps/%): ../../../$(DIST_DIR)/apps/%: %
+	$(CP) $* ../../../$(DIST_DIR)/apps/$*
+
+
+include $(PATH_TO_TOP)/rules.mak
diff --git a/reactos/apps/utils/shell/shell.c b/reactos/subsys/system/shell/shell.c
similarity index 99%
rename from reactos/apps/utils/shell/shell.c
rename to reactos/subsys/system/shell/shell.c
index e6dfa9a3603..8cdc6b8ab8a 100644
--- a/reactos/apps/utils/shell/shell.c
+++ b/reactos/subsys/system/shell/shell.c
@@ -1,4 +1,4 @@
-/* $Id: shell.c,v 1.41 2000/07/11 04:40:00 phreak Exp $
+/* $Id: shell.c,v 1.1 2000/12/05 02:38:08 ekohl Exp $
  *
  * PROJECT    : ReactOS Operating System
  * DESCRIPTION: ReactOS' Native Shell
diff --git a/reactos/subsys/system/shell/shell.rc b/reactos/subsys/system/shell/shell.rc
new file mode 100644
index 00000000000..0982e26a88b
--- /dev/null
+++ b/reactos/subsys/system/shell/shell.rc
@@ -0,0 +1,38 @@
+#include "../../../include/defines.h"
+#include "../../../include/reactos/resource.h"
+
+LANGUAGE LANG_ENGLISH, SUBLANG_ENGLISH_US
+
+VS_VERSION_INFO VERSIONINFO
+	FILEVERSION	RES_UINT_FV_MAJOR,RES_UINT_FV_MINOR,RES_UINT_FV_REVISION,RES_UINT_FV_BUILD
+	PRODUCTVERSION	RES_UINT_PV_MAJOR,RES_UINT_PV_MINOR,RES_UINT_PV_REVISION,RES_UINT_PV_BUILD	
+	FILEFLAGSMASK	0x3fL
+#ifdef _DEBUG
+	FILEFLAGS	0x1L
+#else
+	FILEFLAGS	0x0L
+#endif
+	FILEOS		0x40004L
+	FILETYPE	0x2L
+	FILESUBTYPE	0x0L
+BEGIN
+    BLOCK "StringFileInfo"
+    BEGIN
+        BLOCK "040904b0"
+        BEGIN
+            VALUE "CompanyName",	RES_STR_COMPANY_NAME
+            VALUE "FileDescription",	"ReactOS Simple Shell\0"
+            VALUE "FileVersion",	RES_STR_FILE_VERSION
+            VALUE "InternalName",	"shell\0"
+            VALUE "LegalCopyright",	RES_STR_LEGAL_COPYRIGHT
+            VALUE "OriginalFilename",	"shell.exe\0"
+            VALUE "ProductName",	RES_STR_PRODUCT_NAME
+            VALUE "ProductVersion",	RES_STR_PRODUCT_VERSION
+        END
+    END
+    BLOCK "VarFileInfo"
+    BEGIN
+        VALUE "Translation", 0x409, 1200
+    END
+END
+
diff --git a/reactos/subsys/system/winlogon/makefile b/reactos/subsys/system/winlogon/makefile
new file mode 100644
index 00000000000..7d08e44b6af
--- /dev/null
+++ b/reactos/subsys/system/winlogon/makefile
@@ -0,0 +1,58 @@
+# $Id: makefile,v 1.1 2000/12/05 02:38:08 ekohl Exp $
+#
+# Logon/login Application
+#
+# ReactOS Operating System
+#
+TARGET = winlogon
+PROGS = winlogon.exe
+
+PATH_TO_TOP = ../../..
+
+BASE_CFLAGS = -I../../include
+
+OBJECTS = winlogon.o $(TARGET).coff
+
+LIBS = ../../../lib/kernel32/kernel32.a ../../../lib/ntdll/ntdll.a
+
+all: $(TARGET).exe
+
+.phony: all
+
+clean:
+	- $(RM) *.o
+	- $(RM) $(TARGET).exe
+	- $(RM) $(TARGET).sym
+	- $(RM) $(TARGET).coff
+
+.phony: clean
+
+$(TARGET).coff: $(TARGET).rc
+	$(RC) $(TARGET).rc $(TARGET).coff
+
+$(TARGET).exe: $(OBJECTS)
+	$(CC) \
+		$(OBJECTS) \
+		$(LIBS) \
+		-o $(TARGET).exe 
+	$(NM) --numeric-sort $(TARGET).exe > $(TARGET).sym
+
+clean: $(CLEAN_FILES:%=%_clean)
+
+$(CLEAN_FILES:%=%_clean): %_clean:
+	- $(RM) $*
+
+.phony: clean $(CLEAN_FILES:%=%_clean)
+
+install: $(PROGS:%=$(FLOPPY_DIR)/apps/%)
+
+$(PROGS:%=$(FLOPPY_DIR)/apps/%): $(FLOPPY_DIR)/apps/%: %
+	$(CP) $* $(FLOPPY_DIR)/apps/$*
+
+dist: $(PROGS:%=../../../$(DIST_DIR)/apps/%)
+
+$(PROGS:%=../../../$(DIST_DIR)/apps/%): ../../../$(DIST_DIR)/apps/%: %
+	$(CP) $* ../../../$(DIST_DIR)/apps/$*
+
+
+include $(PATH_TO_TOP)/rules.mak
diff --git a/reactos/services/winlogon/winlogon.c b/reactos/subsys/system/winlogon/winlogon.c
similarity index 93%
rename from reactos/services/winlogon/winlogon.c
rename to reactos/subsys/system/winlogon/winlogon.c
index c69d41a30f9..ddd5da85c59 100644
--- a/reactos/services/winlogon/winlogon.c
+++ b/reactos/subsys/system/winlogon/winlogon.c
@@ -1,4 +1,4 @@
-/* $Id: winlogon.c,v 1.6 2000/08/12 19:33:23 dwelch Exp $
+/* $Id: winlogon.c,v 1.1 2000/12/05 02:38:08 ekohl Exp $
  * 
  * COPYRIGHT:       See COPYING in the top level directory
  * PROJECT:         ReactOS kernel
@@ -31,9 +31,9 @@ BOOLEAN StartServices(VOID)
    PROCESS_INFORMATION ProcessInformation;
    
    ServicesInitEvent = CreateEvent(NULL,
-				TRUE,
-				FALSE,
-		                "\\ServicesInitDone");				
+				   TRUE,
+				   FALSE,
+				   "\\ServicesInitDone");
    
    if (ServicesInitEvent == NULL)
      {
@@ -85,7 +85,7 @@ BOOLEAN StartLsass(VOID)
    LsassInitEvent = CreateEvent(NULL,
 				TRUE,
 				FALSE,
-				"\\LsassInitDone");				
+				"\\LsassInitDone");
    
    if (LsassInitEvent == NULL)
      {
@@ -160,9 +160,9 @@ VOID DoLoginUser(PCHAR Name, PCHAR Password)
 }
 
 int STDCALL
-WinMain(HINSTANCE hInstance, 
+WinMain(HINSTANCE hInstance,
 	HINSTANCE hPrevInstance,
-	LPSTR lpCmdLine, 
+	LPSTR lpCmdLine,
 	int nShowCmd)
 {
 #if 0
@@ -173,7 +173,7 @@ WinMain(HINSTANCE hInstance,
 #endif
    CHAR LoginPrompt[] = "login:";
    CHAR PasswordPrompt[] = "password:";
-   ULONG Result;
+   DWORD Result;
    CHAR LoginName[255];
    CHAR Password[255];
    ULONG i;
@@ -182,9 +182,10 @@ WinMain(HINSTANCE hInstance,
     * FIXME: Create WindowStations here. At the moment lsass and services
     * share ours
     */
-   
+#if 0
    StartLsass();
    StartServices();
+#endif
    
    /* FIXME: What name does the real WinLogon use? */
 #if 0
@@ -206,7 +207,8 @@ WinMain(HINSTANCE hInstance,
 	/* Display login prompt */
 	WriteConsole(GetStdHandle(STD_OUTPUT_HANDLE),
 		     LoginPrompt,
-		     wcslen(LoginPrompt),
+//		     wcslen(LoginPrompt),
+		     strlen(LoginPrompt),
 		     &Result,
 		     NULL);
 	i = 0;
@@ -224,7 +226,8 @@ WinMain(HINSTANCE hInstance,
 	/* Display password prompt */
 	WriteConsole(GetStdHandle(STD_OUTPUT_HANDLE),
 		     PasswordPrompt,
-		     wcslen(PasswordPrompt),
+//		     wcslen(PasswordPrompt),
+		     strlen(PasswordPrompt),
 		     &Result,
 		     NULL);
 	i = 0;
diff --git a/reactos/services/winlogon/winlogon.rc b/reactos/subsys/system/winlogon/winlogon.rc
similarity index 92%
rename from reactos/services/winlogon/winlogon.rc
rename to reactos/subsys/system/winlogon/winlogon.rc
index 698f2e93585..35e4b1de2fb 100644
--- a/reactos/services/winlogon/winlogon.rc
+++ b/reactos/subsys/system/winlogon/winlogon.rc
@@ -1,5 +1,5 @@
-#include "../../include/defines.h"
-#include "../../include/reactos/resource.h"
+#include "../../../include/defines.h"
+#include "../../../include/reactos/resource.h"
 
 LANGUAGE LANG_ENGLISH, SUBLANG_ENGLISH_US