diff --git a/reactos/base/system/winlogon/sas.c b/reactos/base/system/winlogon/sas.c
index b8d17d15564..9b7483aa534 100644
--- a/reactos/base/system/winlogon/sas.c
+++ b/reactos/base/system/winlogon/sas.c
@@ -81,32 +81,202 @@ HandleLogon(
 	/* FIXME: reverting to lower privileges after creating user shell? */
 	RtlAdjustPrivilege(SE_ASSIGNPRIMARYTOKEN_PRIVILEGE, TRUE, FALSE, &Old);
 
-	return Session->Gina.Functions.WlxActivateUserShell(
+	//DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_LOADINGYOURPERSONALSETTINGS);
+	//DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_APPLYINGYOURPERSONALSETTINGS);
+
+	if (!Session->Gina.Functions.WlxActivateUserShell(
 		Session->Gina.Context,
-		L"Default",//NULL, /* FIXME */
+		L"Default",
 		NULL, /* FIXME */
-		lpEnvironment);
+		lpEnvironment))
+	{
+		return FALSE;
+	}
+	   /*if(!GinaInst->Functions->WlxActivateUserShell(GinaInst->Context,
+                                                   L"WinSta0\\Default",
+                                                   NULL,
+                                                   NULL))
+   {
+     LoadString(hAppInstance, IDS_FAILEDACTIVATEUSERSHELL, StatusMsg, 256 * sizeof(WCHAR));
+     MessageBox(0, StatusMsg, NULL, MB_ICONERROR);
+     SetEvent(hShutdownEvent);
+   }
+
+   WaitForSingleObject(hShutdownEvent, INFINITE);
+   CloseHandle(hShutdownEvent);
+
+   RemoveStatusMessage(Session);
+   */
+	return TRUE;
+}
+
+#define EWX_ACTION_MASK 0xffffffeb
+#define EWX_FLAGS_MASK  0x00000014
+
+typedef struct tagLOGOFF_SHUTDOWN_DATA
+{
+  UINT Flags;
+  PWLSESSION Session;
+} LOGOFF_SHUTDOWN_DATA, *PLOGOFF_SHUTDOWN_DATA;
+
+static DWORD WINAPI
+LogoffShutdownThread(LPVOID Parameter)
+{
+	PLOGOFF_SHUTDOWN_DATA LSData = (PLOGOFF_SHUTDOWN_DATA)Parameter;
+
+	if (!ImpersonateLoggedOnUser(LSData->Session->UserToken))
+	{
+		ERR("ImpersonateLoggedOnUser failed with error %lu\n", GetLastError());
+		return 0;
+	}
+
+	/* Close processes of the interactive user */
+	if (!ExitWindowsEx(
+		EWX_INTERNAL_KILL_USER_APPS | (LSData->Flags & EWX_FLAGS_MASK) |
+		(EWX_LOGOFF == (LSData->Flags & EWX_ACTION_MASK) ? EWX_INTERNAL_FLAG_LOGOFF : 0),
+		0))
+	{
+		ERR("Unable to kill user apps, error %lu\n", GetLastError());
+		RevertToSelf();
+		return 0;
+	}
+
+	/* FIXME: Call ExitWindowsEx() to terminate COM processes */
+
+	RevertToSelf();
+
+	return 1;
+}
+
+static NTSTATUS
+HandleLogoff(
+	IN OUT PWLSESSION Session,
+	IN UINT Flags)
+{
+	PLOGOFF_SHUTDOWN_DATA LSData;
+	HANDLE hThread;
+
+	DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_SAVEYOURSETTINGS);
+
+	/* Prepare data for logoff thread */
+	LSData = HeapAlloc(GetProcessHeap(), 0, sizeof(LOGOFF_SHUTDOWN_DATA));
+	if (!LSData)
+	{
+		ERR("Failed to allocate mem for thread data\n");
+		return STATUS_NO_MEMORY;
+	}
+	LSData->Flags = Flags;
+	LSData->Session = Session;
+
+	/* Run logoff thread */
+	hThread = CreateThread(NULL, 0, LogoffShutdownThread, (LPVOID)LSData, 0, NULL);
+	if (!hThread)
+	{
+		ERR("Unable to create shutdown thread, error %lu\n", GetLastError());
+		HeapFree(GetProcessHeap(), 0, LSData);
+		return STATUS_UNSUCCESSFUL;
+	}
+	WaitForSingleObject(hThread, INFINITE);
+	CloseHandle(hThread);
+	HeapFree(GetProcessHeap(), 0, LSData);
+
+	Session->LogonStatus = WKSTA_IS_LOGGED_OFF;
+	return STATUS_SUCCESS;
+}
+
+static INT_PTR CALLBACK
+ShutdownComputerWindowProc(
+	IN HWND hwndDlg,
+	IN UINT uMsg,
+	IN WPARAM wParam,
+	IN LPARAM lParam)
+{
+	switch (uMsg)
+	{
+		case WM_COMMAND:
+		{
+			switch (LOWORD(wParam))
+			{
+				case IDC_BTNSHTDOWNCOMPUTER:
+					EndDialog(hwndDlg, IDC_BTNSHTDOWNCOMPUTER);
+					return TRUE;
+			}
+			break;
+		}
+		case WM_INITDIALOG:
+		{
+			RemoveMenu(GetSystemMenu(hwndDlg, FALSE), SC_CLOSE, MF_BYCOMMAND);
+			SetFocus(GetDlgItem(hwndDlg, IDC_BTNSHTDOWNCOMPUTER));
+			return TRUE;
+		}
+	}
+	return FALSE;
 }
 
 static VOID
-HandleLogoff(
+UninitializeSAS(
 	IN OUT PWLSESSION Session)
 {
-	FIXME("FIXME: HandleLogoff() unimplemented\n");
+	if (Session->SASWindow)
+	{
+		DestroyWindow(Session->SASWindow);
+		Session->SASWindow = NULL;
+	}
+	UnregisterClassW(WINLOGON_SAS_CLASS, hAppInstance);
 }
 
-static BOOL
+BOOL
 HandleShutdown(
 	IN OUT PWLSESSION Session,
 	IN DWORD wlxAction)
 {
-	FIXME("FIXME: HandleShutdown() unimplemented\n");
+	PLOGOFF_SHUTDOWN_DATA LSData;
+	HANDLE hThread;
+
+	DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_REACTOSISSHUTTINGDOWN);
+
+	/* Prepare data for shutdown thread */
+	LSData = HeapAlloc(GetProcessHeap(), 0, sizeof(LOGOFF_SHUTDOWN_DATA));
+	if (!LSData)
+	{
+		ERR("Failed to allocate mem for thread data\n");
+		return STATUS_NO_MEMORY;
+	}
+	if (wlxAction == WLX_SAS_ACTION_SHUTDOWN_POWER_OFF)
+		LSData->Flags = EWX_POWEROFF;
+	else if (wlxAction == WLX_SAS_ACTION_SHUTDOWN_REBOOT)
+		LSData->Flags = EWX_REBOOT;
+	else
+		LSData->Flags = EWX_SHUTDOWN;
+	LSData->Session = Session;
+
+	/* Run shutdown thread */
+	hThread = CreateThread(NULL, 0, LogoffShutdownThread, (LPVOID)LSData, 0, NULL);
+	if (!hThread)
+	{
+		ERR("Unable to create shutdown thread, error %lu\n", GetLastError());
+		HeapFree(GetProcessHeap(), 0, LSData);
+		return STATUS_UNSUCCESSFUL;
+	}
+	WaitForSingleObject(hThread, INFINITE);
+	CloseHandle(hThread);
+	HeapFree(GetProcessHeap(), 0, LSData);
+
+	/* Destroy SAS window */
+	UninitializeSAS(Session);
+
+	FIXME("FIXME: Call SMSS API #1\n");
 	if (wlxAction == WLX_SAS_ACTION_SHUTDOWN_REBOOT)
 		NtShutdownSystem(ShutdownReboot);
-	else if (wlxAction == WLX_SAS_ACTION_SHUTDOWN_POWER_OFF)
-		NtShutdownSystem(ShutdownPowerOff);
 	else
+	{
+		if (FALSE)
+		{
+			/* FIXME - only show this dialog if it's a shutdown and the computer doesn't support APM */
+			DialogBox(hAppInstance, MAKEINTRESOURCE(IDD_SHUTDOWNCOMPUTER), 0, ShutdownComputerWindowProc);
+		}
 		NtShutdownSystem(ShutdownNoReboot);
+	}
 	return TRUE;
 }
 
@@ -144,15 +314,19 @@ DoGenericAction(
 					break;
 				SwitchDesktop(WLSession->WinlogonDesktop);
 				Session->Gina.Functions.WlxLogoff(Session->Gina.Context);
-				HandleLogoff(Session);
-				Session->LogonStatus = WKSTA_IS_LOGGED_OFF;
-				Session->Gina.Functions.WlxDisplaySASNotice(Session->Gina.Context);
+				if (!NT_SUCCESS(HandleLogoff(Session, EWX_LOGOFF)))
+					break;
 			}
 			if (WLX_SHUTTINGDOWN(wlxAction))
 			{
 				Session->Gina.Functions.WlxShutdown(Session->Gina.Context, wlxAction);
 				HandleShutdown(Session, wlxAction);
 			}
+			else
+			{
+				RemoveStatusMessage(Session);
+				Session->Gina.Functions.WlxDisplaySASNotice(Session->Gina.Context);
+			}
 			break;
 		case WLX_SAS_ACTION_TASKLIST: /* 0x07 */
 			SwitchDesktop(WLSession->ApplicationDesktop);
@@ -247,47 +421,8 @@ UnregisterHotKeys(
 	return TRUE;
 }
 
-#define EWX_ACTION_MASK 0xffffffeb
-#define EWX_FLAGS_MASK  0x00000014
-
-typedef struct tagLOGOFF_SHUTDOWN_DATA
-{
-  UINT Flags;
-  PWLSESSION Session;
-} LOGOFF_SHUTDOWN_DATA, *PLOGOFF_SHUTDOWN_DATA;
-
-static DWORD WINAPI
-LogoffShutdownThread(LPVOID Parameter)
-{
-	PLOGOFF_SHUTDOWN_DATA LSData = (PLOGOFF_SHUTDOWN_DATA) Parameter;
-
-	if (!ImpersonateLoggedOnUser(LSData->Session->UserToken))
-	{
-		ERR("ImpersonateLoggedOnUser failed with error %lu\n", GetLastError());
-		return 0;
-	}
-
-	/* Close processes of the interactive user */
-	if (!ExitWindowsEx(
-		EWX_INTERNAL_KILL_USER_APPS | (LSData->Flags & EWX_FLAGS_MASK) |
-		(EWX_LOGOFF == (LSData->Flags & EWX_ACTION_MASK) ? EWX_INTERNAL_FLAG_LOGOFF : 0),
-		0))
-	{
-		ERR("Unable to kill user apps, error %lu\n", GetLastError());
-		RevertToSelf();
-		return 0;
-	}
-
-	/* FIXME: Call ExitWindowsEx() to terminate COM processes */
-
-	RevertToSelf();
-
-	return 1;
-}
-
 static NTSTATUS
-CheckPrivilegeForRequestedAction(
-	IN UINT Action,
+CheckForShutdownPrivilege(
 	IN DWORD RequestingProcessId)
 {
 	HANDLE Process;
@@ -295,18 +430,7 @@ CheckPrivilegeForRequestedAction(
 	BOOL CheckResult;
 	PPRIVILEGE_SET PrivSet;
 
-	TRACE("CheckPrivilegeForRequestedAction(%u)\n", Action);
-
-	if (Action == EWX_LOGOFF)
-		/* No privilege needed to log off */
-		return STATUS_SUCCESS;
-
-	/* Check for invalid arguments */
-	if (Action != EWX_SHUTDOWN && Action != EWX_REBOOT && Action != EWX_POWEROFF)
-	{
-		ERR("Invalid exit action %u\n", Action);
-		return STATUS_INVALID_PARAMETER;
-	}
+	TRACE("CheckForShutdownPrivilege()\n");
 
 	Process = OpenProcess(PROCESS_QUERY_INFORMATION, FALSE, RequestingProcessId);
 	if (!Process)
@@ -354,71 +478,6 @@ CheckPrivilegeForRequestedAction(
 	}
 }
 
-static LRESULT
-HandleExitWindows(
-	IN OUT PWLSESSION Session,
-	IN DWORD RequestingProcessId,
-	IN UINT Flags)
-{
-	UINT Action;
-	PLOGOFF_SHUTDOWN_DATA LSData;
-	HANDLE hThread;
-	NTSTATUS Status;
-
-	/* Check parameters */
-	Action = Flags & EWX_ACTION_MASK;
-	if (Action != EWX_LOGOFF &&
-	    Action != EWX_SHUTDOWN &&
-	    Action != EWX_REBOOT &&
-	    Action != EWX_POWEROFF)
-	{
-		ERR("Invalid ExitWindows action 0x%x\n", Action);
-		return STATUS_INVALID_PARAMETER;
-	}
-
-	/* Check privilege */
-	Status = CheckPrivilegeForRequestedAction(Action, RequestingProcessId);
-	if (!NT_SUCCESS(Status))
-		return Status;
-
-	/* Prepare data for logoff/shutdown thread */
-	LSData = HeapAlloc(GetProcessHeap(), 0, sizeof(LOGOFF_SHUTDOWN_DATA));
-	if (!LSData)
-	{
-		ERR("Failed to allocate mem for thread data\n");
-		return STATUS_NO_MEMORY;
-	}
-	LSData->Flags = Flags;
-	LSData->Session = Session;
-
-	/* Run logoff/shutdown thread */
-	hThread = CreateThread(NULL, 0, LogoffShutdownThread, (LPVOID)LSData, 0, NULL);
-	if (!hThread)
-	{
-		ERR("Unable to create shutdown thread, error %lu\n", GetLastError());
-		HeapFree(GetProcessHeap(), 0, LSData);
-		return STATUS_UNSUCCESSFUL;
-	}
-	WaitForSingleObject(hThread, INFINITE);
-	CloseHandle(hThread);
-	HeapFree(GetProcessHeap(), 0, LSData);
-
-	Session->LogonStatus = WKSTA_IS_LOGGED_OFF;
-	if (Action == EWX_LOGOFF)
-	{
-		DispatchSAS(Session, WLX_SAS_TYPE_TIMEOUT);
-		return 1;
-	}
-
-	/* Handle shutdown */
-	FIXME("FIXME: Call ExitWindowEx in SYSTEM process context\n");
-
-	FIXME("FIXME: Call SMSS API #1\n");
-	NtShutdownSystem(ShutdownNoReboot); /* FIXME: should go in smss */
-
-	return 1;
-}
-
 static LRESULT CALLBACK
 SASWindowProc(
 	IN HWND hwndDlg,
@@ -468,24 +527,38 @@ SASWindowProc(
 		}
 		case PM_WINLOGON_EXITWINDOWS:
 		{
-			return HandleExitWindows(Session, (DWORD) wParam, (UINT) lParam);
+			UINT Flags = (UINT)lParam;
+			UINT Action = Flags & EWX_ACTION_MASK;
+			DWORD wlxAction;
+
+			/* Check parameters */
+			switch (Action)
+			{
+				case EWX_LOGOFF: wlxAction = WLX_SAS_ACTION_LOGOFF; break;
+				case EWX_SHUTDOWN: wlxAction = WLX_SAS_ACTION_SHUTDOWN; break;
+				case EWX_REBOOT: wlxAction = WLX_SAS_ACTION_SHUTDOWN_REBOOT; break;
+				case EWX_POWEROFF: wlxAction = WLX_SAS_ACTION_SHUTDOWN_POWER_OFF; break;
+				default:
+				{
+					ERR("Invalid ExitWindows action 0x%x\n", Action);
+					return STATUS_INVALID_PARAMETER;
+				}
+			}
+
+			if (WLX_SHUTTINGDOWN(wlxAction))
+			{
+				NTSTATUS Status = CheckForShutdownPrivilege((DWORD)wParam);
+				if (!NT_SUCCESS(Status))
+					return Status;
+			}
+			DoGenericAction(Session, wlxAction);
+			return 1;
 		}
 	}
 
 	return DefWindowProc(hwndDlg, uMsg, wParam, lParam);
 }
 
-static VOID
-UninitializeSAS(
-	IN OUT PWLSESSION Session)
-{
-	if (Session->SASWindow)
-	{
-		DestroyWindow(Session->SASWindow);
-		Session->SASWindow = NULL;
-	}
-}
-
 BOOL
 InitializeSAS(
 	IN OUT PWLSESSION Session)
@@ -506,10 +579,13 @@ InitializeSAS(
 	swc.lpszMenuName = NULL;
 	swc.lpszClassName = WINLOGON_SAS_CLASS;
 	swc.hIconSm = NULL;
-	RegisterClassExW(&swc); /* FIXME: check return code */
+	if (RegisterClassExW(&swc) == 0)
+	{
+		ERR("WL: Failed to register SAS window class\n");
+		return FALSE;
+	}
 
 	/* create invisible SAS window */
-	DPRINT1("Session %p\n", Session);
 	Session->SASWindow = CreateWindowExW(
 		0,
 		WINLOGON_SAS_CLASS,
@@ -520,6 +596,7 @@ InitializeSAS(
 	if (!Session->SASWindow)
 	{
 		ERR("WL: Failed to create SAS window\n");
+		UninitializeSAS(Session);
 		return FALSE;
 	}
 
diff --git a/reactos/base/system/winlogon/winlogon.c b/reactos/base/system/winlogon/winlogon.c
index d3814fef72c..ed1381c6e6d 100644
--- a/reactos/base/system/winlogon/winlogon.c
+++ b/reactos/base/system/winlogon/winlogon.c
@@ -21,104 +21,70 @@ PWLSESSION WLSession = NULL;
 
 /* FUNCTIONS *****************************************************************/
 
-static INT_PTR CALLBACK
-ShutdownComputerWindowProc(
-	IN HWND hwndDlg,
-	IN UINT uMsg,
-	IN WPARAM wParam,
-	IN LPARAM lParam)
-{
-	switch (uMsg)
-	{
-		case WM_COMMAND:
-		{
-			switch (LOWORD(wParam))
-			{
-				case IDC_BTNSHTDOWNCOMPUTER:
-					EndDialog(hwndDlg, IDC_BTNSHTDOWNCOMPUTER);
-					return TRUE;
-			}
-			break;
-		}
-		case WM_INITDIALOG:
-		{
-			RemoveMenu(GetSystemMenu(hwndDlg, FALSE), SC_CLOSE, MF_BYCOMMAND);
-			SetFocus(GetDlgItem(hwndDlg, IDC_BTNSHTDOWNCOMPUTER));
-			return TRUE;
-		}
-	}
-	return FALSE;
-}
-
 static BOOL
 StartServicesManager(VOID)
 {
-   HANDLE ServicesInitEvent;
-   BOOLEAN Result;
-   STARTUPINFOW StartupInfo;
-   PROCESS_INFORMATION ProcessInformation;
-   DWORD Count;
-   WCHAR ServiceString[] = L"services.exe";
+	HANDLE ServicesInitEvent;
+	STARTUPINFOW StartupInfo;
+	PROCESS_INFORMATION ProcessInformation;
+	DWORD Count;
+	LPCWSTR ServiceString = L"services.exe";
+	BOOL res;
 
-   /* Start the service control manager (services.exe) */
+	/* Start the service control manager (services.exe) */
+	StartupInfo.cb = sizeof(StartupInfo);
+	StartupInfo.lpReserved = NULL;
+	StartupInfo.lpDesktop = NULL;
+	StartupInfo.lpTitle = NULL;
+	StartupInfo.dwFlags = 0;
+	StartupInfo.cbReserved2 = 0;
+	StartupInfo.lpReserved2 = 0;
 
-   StartupInfo.cb = sizeof(StartupInfo);
-   StartupInfo.lpReserved = NULL;
-   StartupInfo.lpDesktop = NULL;
-   StartupInfo.lpTitle = NULL;
-   StartupInfo.dwFlags = 0;
-   StartupInfo.cbReserved2 = 0;
-   StartupInfo.lpReserved2 = 0;
+	TRACE("WL: Creating new process - %S\n", ServiceString);
 
-#if 0
-   DPRINT1(L"WL: Creating new process - \"services.exe\".\n");
-#endif
+	res = CreateProcessW(
+		ServiceString,
+		NULL,
+		NULL,
+		NULL,
+		FALSE,
+		DETACHED_PROCESS,
+		NULL,
+		NULL,
+		&StartupInfo,
+		&ProcessInformation);
+	if (!res)
+	{
+		ERR("WL: Failed to execute services (error %lu)\n", GetLastError());
+		return FALSE;
+	}
 
-   Result = CreateProcessW(NULL,
-                          ServiceString,
-                          NULL,
-                          NULL,
-                          FALSE,
-                          DETACHED_PROCESS,
-                          NULL,
-                          NULL,
-                          &StartupInfo,
-                          &ProcessInformation);
-   if (!Result)
-     {
-        DPRINT1("WL: Failed to execute services\n");
-        return FALSE;
-     }
+	/* Wait for event creation (by SCM) for max. 20 seconds */
+	for (Count = 0; Count < 20; Count++)
+	{
+		Sleep(1000);
 
-   /* wait for event creation (by SCM) for max. 20 seconds */
-   for (Count = 0; Count < 20; Count++)
-     {
-        Sleep(1000);
+		TRACE("WL: Attempting to open event \"SvcctrlStartEvent_A3725DX\"\n");
+		ServicesInitEvent = OpenEventW(
+			EVENT_ALL_ACCESS, //SYNCHRONIZE,
+			FALSE,
+			L"SvcctrlStartEvent_A3725DX");
+		if (ServicesInitEvent)
+			break;
+	}
 
-        DPRINT("WL: Attempting to open event \"SvcctrlStartEvent_A3725DX\"\n");
-        ServicesInitEvent = OpenEventW(EVENT_ALL_ACCESS, //SYNCHRONIZE,
-                                      FALSE,
-                                      L"SvcctrlStartEvent_A3725DX");
-        if (ServicesInitEvent != NULL)
-          {
-             break;
-          }
-     }
+	if (!ServicesInitEvent)
+	{
+		ERR("WL: Failed to open event \"SvcctrlStartEvent_A3725DX\"\n");
+		return FALSE;
+	}
 
-   if (ServicesInitEvent == NULL)
-     {
-        DPRINT1("WL: Failed to open event \"SvcctrlStartEvent_A3725DX\"\n");
-        return FALSE;
-     }
+	/* Wait for event signalization */
+	WaitForSingleObject(ServicesInitEvent, INFINITE);
+	CloseHandle(ServicesInitEvent);
+	TRACE("WL: StartServicesManager() done.\n");
 
-   /* wait for event signalization */
-   DPRINT("WL: Waiting forever on event handle: %x\n", ServicesInitEvent);
-   WaitForSingleObject(ServicesInitEvent, INFINITE);
-   DPRINT("WL: Closing event object \"SvcctrlStartEvent_A3725DX\"\n");
-   CloseHandle(ServicesInitEvent);
-   DPRINT("WL: StartServicesManager() Done.\n");
-
-   return TRUE;
+	return TRUE;
 }
 
 static BOOL
@@ -428,7 +394,7 @@ DoBrokenLogonUser(
 }
 #endif
 
-static BOOL
+BOOL
 DisplayStatusMessage(
 	IN PWLSESSION Session,
 	IN HDESK hDesktop,
@@ -436,6 +402,9 @@ DisplayStatusMessage(
 {
 	WCHAR StatusMsg[MAX_PATH];
 
+	if (Session->Gina.Version < WLX_VERSION_1_3)
+		return TRUE;
+
 	if (Session->SuppressStatus)
 		return TRUE;
 
@@ -445,66 +414,14 @@ DisplayStatusMessage(
 	return Session->Gina.Functions.WlxDisplayStatusMessage(Session->Gina.Context, hDesktop, 0, NULL, StatusMsg);
 }
 
-static VOID
-SessionLoop(
-	IN OUT PWLSESSION Session)
+BOOL
+RemoveStatusMessage(
+	IN PWLSESSION Session)
 {
-	//WCHAR StatusMsg[256];
-	//HANDLE hShutdownEvent;
-	MSG Msg;
+	if (Session->Gina.Version < WLX_VERSION_1_3)
+		return TRUE;
 
-	Session->LogonStatus = WKSTA_IS_LOGGED_OFF;
-	RemoveStatusMessage(Session);
-	DispatchSAS(Session, WLX_SAS_TYPE_TIMEOUT);
-
-	/* Message loop for the SAS window */
-	while (GetMessage(&Msg, WLSession->SASWindow, 0, 0))
-	{
-		TranslateMessage(&Msg);
-		DispatchMessage(&Msg);
-	}
-
-	/* Don't go there! */
-
-   /*
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_PREPARENETWORKCONNECTIONS);
-   Sleep(150);
-
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_APPLYINGCOMPUTERSETTINGS);
-   Sleep(150);
-
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_LOADINGYOURPERSONALSETTINGS);
-   Sleep(150);
-
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_APPLYINGYOURPERSONALSETTINGS);
-   Sleep(150);
-
-   RemoveStatusMessage(Session);
-
-   if(!GinaInst->Functions->WlxActivateUserShell(GinaInst->Context,
-                                                   L"WinSta0\\Default",
-                                                   NULL,
-                                                   NULL))
-   {
-     LoadString(hAppInstance, IDS_FAILEDACTIVATEUSERSHELL, StatusMsg, 256 * sizeof(WCHAR));
-     MessageBox(0, StatusMsg, NULL, MB_ICONERROR);
-     SetEvent(hShutdownEvent);
-   }
-
-   WaitForSingleObject(hShutdownEvent, INFINITE);
-   CloseHandle(hShutdownEvent);
-
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_SAVEYOURSETTINGS);
-
-   Sleep(150);
-
-   GinaInst->Functions->WlxShutdown(GinaInst->Context, WLX_SAS_ACTION_SHUTDOWN);
-   DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_REACTOSISSHUTTINGDOWN);
-
-   Sleep(250);
-
-   RemoveStatusMessage(Session);
-   */
+	return Session->Gina.Functions.WlxRemoveStatusMessage(Session->Gina.Context);
 }
 
 static INT_PTR CALLBACK
@@ -565,20 +482,24 @@ WinMain(
 	ULONG AuthenticationPackage;
 	NTSTATUS Status;
 #endif
+	MSG Msg;
 
 	hAppInstance = hInstance;
 
 	if (!RegisterLogonProcess(GetCurrentProcessId(), TRUE))
 	{
 		ERR("WL: Could not register logon process\n");
+		HandleShutdown(NULL, WLX_SAS_ACTION_SHUTDOWN_POWER_OFF);
 		NtShutdownSystem(ShutdownNoReboot);
 		ExitProcess(0);
 		return 0;
 	}
 
-	WLSession = (PWLSESSION)HeapAlloc(GetProcessHeap(), HEAP_ZERO_MEMORY, sizeof(WLSESSION));
+	WLSession = (PWLSESSION)HeapAlloc(GetProcessHeap(), 0, sizeof(WLSESSION));
+	ZeroMemory(WLSession, sizeof(WLSESSION));
 	if (!WLSession)
 	{
+		ERR("WL: Could not allocate memory for winlogon instance\n");
 		NtRaiseHardError(STATUS_SYSTEM_PROCESS_TERMINATED, 0, 0, 0, 0, 0);
 		ExitProcess(1);
 		return 1;
@@ -587,6 +508,7 @@ WinMain(
 
 	if (!CreateWindowStationAndDesktops(WLSession))
 	{
+		ERR("WL: Could not create window station and desktops\n");
 		NtRaiseHardError(STATUS_SYSTEM_PROCESS_TERMINATED, 0, 0, 0, 0, 0);
 		ExitProcess(1);
 		return 1;
@@ -596,9 +518,9 @@ WinMain(
 	if (!StartServicesManager())
 	{
 		ERR("WL: Could not start services.exe\n");
-		NtShutdownSystem(ShutdownNoReboot);
-		ExitProcess(0);
-		return 0;
+		NtRaiseHardError(STATUS_SYSTEM_PROCESS_TERMINATED, 0, 0, 0, 0, 0);
+		ExitProcess(1);
+		return 1;
 	}
 
 	/* Check for pending setup */
@@ -610,7 +532,7 @@ WinMain(
 		SwitchDesktop(WLSession->ApplicationDesktop);
 		RunSetup();
 
-		NtShutdownSystem(ShutdownReboot);
+		HandleShutdown(WLSession, WLX_SAS_ACTION_SHUTDOWN_REBOOT);
 		ExitProcess(0);
 		return 0;
 	}
@@ -618,6 +540,8 @@ WinMain(
 	if (!StartLsass())
 	{
 		DPRINT1("WL: Failed to start lsass.exe service (error %lu)\n", GetLastError());
+		NtRaiseHardError(STATUS_SYSTEM_PROCESS_TERMINATED, 0, 0, 0, 0, 0);
+		ExitProcess(1);
 		return 1;
 	}
 
@@ -626,9 +550,9 @@ WinMain(
 	{
 		ERR("WL: Failed to initialize Gina\n");
 		DialogBoxParam(hAppInstance, MAKEINTRESOURCE(IDD_GINALOADFAILED), 0, GinaLoadFailedWindowProc, (LPARAM)L"");
-		NtShutdownSystem(ShutdownReboot);
-		ExitProcess(0);
-		return 0;
+		HandleShutdown(WLSession, WLX_SAS_ACTION_SHUTDOWN_REBOOT);
+		ExitProcess(1);
+		return 1;
 	}
 
 	DisplayStatusMessage(WLSession, WLSession->WinlogonDesktop, IDS_REACTOSISSTARTINGUP);
@@ -673,30 +597,22 @@ WinMain(
 		return 2;
 	}
 
-	/* Main loop */
-	SessionLoop(WLSession);
+	//DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_PREPARENETWORKCONNECTIONS);
+	//DisplayStatusMessage(Session, Session->WinlogonDesktop, IDS_APPLYINGCOMPUTERSETTINGS);
 
-   /* FIXME - Flush disks and registry, ... */
+	/* Display logged out screen */
+	WLSession->LogonStatus = WKSTA_IS_LOGGED_OFF;
+	RemoveStatusMessage(WLSession);
+	DispatchSAS(WLSession, WLX_SAS_TYPE_TIMEOUT);
 
-   if(WLSession->LogonStatus == 0)
-   {
-     /* FIXME - only show this dialog if it's a shutdown and the computer doesn't support APM */
-     switch(DialogBox(hInstance, MAKEINTRESOURCE(IDD_SHUTDOWNCOMPUTER), 0, ShutdownComputerWindowProc))
-     {
-       case IDC_BTNSHTDOWNCOMPUTER:
-         NtShutdownSystem(ShutdownReboot);
-         break;
-       default:
-         NtShutdownSystem(ShutdownNoReboot);
-         break;
-     }
-     ExitProcess(0);
-   }
-   else
-   {
-     DPRINT1("WL: LogonStatus != LOGON_SHUTDOWN!!!\n");
-     ExitProcess(0);
-   }
+	/* Message loop for the SAS window */
+	while (GetMessage(&Msg, WLSession->SASWindow, 0, 0))
+	{
+		TranslateMessage(&Msg);
+		DispatchMessage(&Msg);
+	}
 
-   return 0;
+	/* We never go there */
+
+	return 0;
 }
diff --git a/reactos/base/system/winlogon/winlogon.h b/reactos/base/system/winlogon/winlogon.h
index 1d5814f479b..15a1d2d714b 100644
--- a/reactos/base/system/winlogon/winlogon.h
+++ b/reactos/base/system/winlogon/winlogon.h
@@ -71,7 +71,7 @@ typedef BOOL (WINAPI * PFWLXREMOVESTATUSMESSAGE) (PVOID);
 typedef struct _GINAFUNCTIONS
 {
 	/* Functions always available for a valid GINA */
-	PFWLXNEGOTIATE            WlxNegotiate;
+	PFWLXNEGOTIATE            WlxNegotiate; /* optional */
 	PFWLXINITIALIZE           WlxInitialize;
 
 	/* Functions available if WlxVersion >= WLX_VERSION_1_0 (MS Windows 3.5.0) */
@@ -87,15 +87,15 @@ typedef struct _GINAFUNCTIONS
 	PFWLXSHUTDOWN             WlxShutdown;
 
 	/* Functions available if WlxVersion >= WLX_VERSION_1_1 (MS Windows 3.5.1) */
-	PFWLXSCREENSAVERNOTIFY    WlxScreenSaverNotify;
-	PFWLXSTARTAPPLICATION     WlxStartApplication;
+	PFWLXSCREENSAVERNOTIFY    WlxScreenSaverNotify; /* optional, not called ATM */
+	PFWLXSTARTAPPLICATION     WlxStartApplication; /* optional, not called ATM */
 
 	/* Functions available if WlxVersion >= WLX_VERSION_1_2 (MS Windows NT 4.0) */
 
 	/* Functions available if WlxVersion >= WLX_VERSION_1_3 (MS Windows 2000) */
-	PFWLXNETWORKPROVIDERLOAD  WlxNetworkProviderLoad;
+	PFWLXNETWORKPROVIDERLOAD  WlxNetworkProviderLoad; /* not called ATM */
 	PFWLXDISPLAYSTATUSMESSAGE WlxDisplayStatusMessage;
-	PFWLXGETSTATUSMESSAGE     WlxGetStatusMessage;
+	PFWLXGETSTATUSMESSAGE     WlxGetStatusMessage; /* doesn't need to be called */
 	PFWLXREMOVESTATUSMESSAGE  WlxRemoveStatusMessage;
 
 	/* Functions available if WlxVersion >= WLX_VERSION_1_4 (MS Windows XP) */
@@ -111,6 +111,7 @@ typedef struct _GINAINSTANCE
 } GINAINSTANCE, *PGINAINSTANCE;
 
 /* FIXME: put in an enum */
+/* See http://msdn.microsoft.com/library/default.asp?url=/library/en-us/secauthn/security/winlogon_states.asp */
 #define WKSTA_IS_LOGGED_OFF 0
 #define WKSTA_IS_LOGGED_ON  1
 #define WKSTA_IS_LOCKED     2
@@ -157,11 +158,6 @@ extern PWLSESSION WLSession;
    ((Status) == WLX_SAS_ACTION_SHUTDOWN_HIBERNATE) \
   )
 
-#define RemoveStatusMessage(Session) \
-  Session->Gina.Functions.WlxRemoveStatusMessage(Session->Gina.Context);
-#define DisplaySASNotice(Session) \
-  Session->Gina.Functions.WlxDisplaySASNotice(Session->Gina.Context);
-
 /* user32 */
 BOOL WINAPI
 UpdatePerUserSystemParameters(DWORD dwUnknown,
@@ -176,6 +172,17 @@ BOOL
 InitializeSAS(
 	IN OUT PWLSESSION Session);
 
+/* winlogon.c */
+BOOL
+DisplayStatusMessage(
+	IN PWLSESSION Session,
+	IN HDESK hDesktop,
+	IN UINT ResourceId);
+
+BOOL
+RemoveStatusMessage(
+	IN PWLSESSION Session);
+
 /* wlx.c */
 BOOL
 GinaInit(
@@ -184,6 +191,11 @@ BOOL
 CreateWindowStationAndDesktops(
 	IN OUT PWLSESSION Session);
 
+BOOL
+HandleShutdown(
+	IN OUT PWLSESSION Session,
+	IN DWORD wlxAction);
+
 VOID WINAPI WlxUseCtrlAltDel(HANDLE hWlx);
 VOID WINAPI WlxSetContextPointer(HANDLE hWlx, PVOID pWlxContext);
 VOID WINAPI WlxSasNotify(HANDLE hWlx, DWORD dwSasType);