diff --git a/reactos/include/tchar.h b/reactos/include/tchar.h
index 965de2eef91..9ba8463d4bc 100644
--- a/reactos/include/tchar.h
+++ b/reactos/include/tchar.h
@@ -29,9 +29,9 @@
  *  DISCLAIMED. This includes but is not limited to warranties of
  *  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.
  *
- * $Revision: 1.13 $
+ * $Revision: 1.14 $
  * $Author: navaraf $
- * $Date: 2004/08/02 02:52:31 $
+ * $Date: 2004/08/02 15:04:24 $
  *
  */
 
@@ -151,6 +151,7 @@ typedef wchar_t TCHAR;
 #define	_tcsftime	wcsftime
 #define	_tsplitpath	_wsplitpath
 #define	_tmakepath	_wmakepath
+#define	_tfopen		_wfopen
 
 #else	/* Not _UNICODE */
 
@@ -258,6 +259,7 @@ typedef char TCHAR;
 #define _tcsftime	strftime
 #define	_tsplitpath	_splitpath
 #define	_tmakepath	_makepath
+#define	_tfopen		fopen
 
 #endif	/* Not _UNICODE */
 
diff --git a/reactos/ntoskrnl/Makefile b/reactos/ntoskrnl/Makefile
index 7804097b075..451158c3c6b 100644
--- a/reactos/ntoskrnl/Makefile
+++ b/reactos/ntoskrnl/Makefile
@@ -1,4 +1,4 @@
-# $Id: Makefile,v 1.134 2004/07/23 20:03:25 chorns Exp $
+# $Id: Makefile,v 1.135 2004/08/02 15:04:24 navaraf Exp $
 #
 # ReactOS Operating System
 #
@@ -695,11 +695,12 @@ test:
 
 clean:
 	- $(RM) $(OBJECTS_PATH)/*.o cc/*.o cm/*.o dbg/*.o dbg/i386/*.o ex/*.o \
-              ex/i386/*.o inbv/*.o io/*.o ke/*.o ldr/*.o mm/*.o nt/*.o ob/*.o ps/*.o \
-              rtl/*.o rtl/i386/*.o se/*.o ke/i386/*.o mm/i386/*.o fs/*.o po/*.o \
-              lpc/*.o kd/*.o $(TARGETNAME).o junk.tmp base.tmp temp.exp \
-              $(TARGETNAME).exe $(TARGETNAME).nostrip.exe $(TARGETNAME).sym ntoskrnl.map \
-	          $(TARGETNAME).coff bugcodes.rc msg?????.bin $(DEP_FILES) \
+              ex/i386/*.o inbv/*.o io/*.o ke/*.o ldr/*.o mm/*.o nt/*.o ob/*.o \
+              ps/*.o ps/i386/*.o rtl/*.o rtl/i386/*.o se/*.o ke/i386/*.o \
+              mm/i386/*.o fs/*.o po/*.o lpc/*.o kd/*.o $(TARGETNAME).o \
+              junk.tmp base.tmp temp.exp $(TARGETNAME).exe \
+              $(TARGETNAME).nostrip.exe $(TARGETNAME).sym ntoskrnl.map \
+              $(TARGETNAME).coff bugcodes.rc msg?????.bin $(DEP_FILES) \
 	      $(TAG_OBJECTS) $(PATH_TO_TOP)/include/reactos/bugcodes.h
 
 
diff --git a/reactos/subsys/system/explorer/Makefile b/reactos/subsys/system/explorer/Makefile
index c249bdd5a86..7d388152248 100644
--- a/reactos/subsys/system/explorer/Makefile
+++ b/reactos/subsys/system/explorer/Makefile
@@ -4,188 +4,56 @@
 #  Makefile
 #
 
-# Windows is default host environment
-ifeq ($(HOST),)
-HOST = mingw32-windows
-endif
-
-# Set up default prefix
-ifeq ($(PREFIX),)
-PREFIX = mingw32-
-endif
-
-ifeq ($(HOST),mingw32-linux)
-CC = $(PREFIX)gcc
-CXX = $(PREFIX)g++
-LINK = $(PREFIX)g++
-RC = $(PREFIX)windres
-CD_PREFIX := ./
-EXE_POSTFIX :=
-EXE_PREFIX := ./
-endif
-
-ifeq ($(HOST),mingw32-windows)
-CC = gcc
-CXX = g++
-LINK = g++
-RC = windres
-CD_PREFIX := 
-PREFIX =
-EXE_PREFIX :=
-EXE_POSTFIX := .exe
-endif
-
-PATH_TO_TOP = ../../..
-W32API_PATH = $(PATH_TO_TOP)/w32api
-TOOLS_PATH = $(PATH_TO_TOP)/tools
-
-ifndef UNICODE
-UNICODE = 1
-endif
-
-CFLAGS	= -DWIN32 -D_ROS_ -D_WIN32_IE=0x0600 -D_WIN32_WINNT=0x0501 -fexceptions -Wall -I. -I$(W32API_PATH)/include
-RCFLAGS	= -DWIN32 -D_ROS_ -D__WINDRES__ --include-dir $(W32API_PATH)/include
-LFLAGS	= -Wl,--subsystem,windows
-
-ifdef DEBUG
-CFLAGS	+= -D_DEBUG -g
-RCFLAGS	+= -D_DEBUG
-LFLAGS	+= -g
-else
-CFLAGS	+= -DNDEBUG -Os
-RCFLAGS	+= -DNDEBUG
-LFLAGS	+= -s
-endif
-
-ifeq ($(UNICODE),1)
-CFLAGS	+= -DUNICODE
-# LFLAGS+= -Wl,--entry,_wWinMain@16
-endif
-
-CXXFLAGS = $(CFLAGS)
-
-EXEC_SUFFIX = .exe
-RES_SUFFIX = .coff
-
-VPATH = shell utility taskbar desktop dialogs
-
-PROGRAM = explorer
-
-TARGET = $(PROGRAM)$(EXEC_SUFFIX)
-
-OBJECTS = \
-	startup.o \
-	shellclasses.o \
-	utility.o \
-	window.o \
-	dragdropimpl.o \
-	shellbrowserimpl.o \
+PATH_TO_TOP := ../../..
+TARGET_TYPE := program
+TARGET_APPTYPE := windows
+TARGET_NAME := explorer
+TARGET_INSTALLDIR := .
+TARGET_CFLAGS := \
+	-D__USE_W32API -DWIN32 -D_ROS_ -D_WIN32_IE=0x0600 \
+	-D_WIN32_WINNT=0x0501 -DUNICODE -fexceptions -Wall
+TARGET_CPPFLAGS := $(TARGET_CFLAGS)
+TARGET_RCFLAGS := -D__USE_W32API -DWIN32 -D_ROS_ -D__WINDRES__
+TARGET_SDKLIBS := \
+	gdi32.a comctl32.a ole32.a oleaut32.a shell32.a libexpat.a \
+	notifyhook.a ws2_32.a
+TARGET_GCCLIBS := stdc++ uuid
+TARGET_OBJECTS := \
 	explorer.o \
-	entries.o \
-	winfs.o \
-	unixfs.o \
-	shellfs.o \
-	ntobjfs.o \
-	regfs.o \
-	fatfs.o \
-	webchild.o \
-	mainframe.o \
-	filechild.o \
-	pane.o \
-	shellbrowser.o \
-	desktop.o \
-	desktopbar.o \
-	taskbar.o \
-	startmenu.o \
-	traynotify.o \
-	quicklaunch.o \
-	favorites.o \
-	searchprogram.o \
-	settings.o \
 	i386-stub-win32.o \
-	xmlstorage.o
+	desktop/desktop.o \
+	dialogs/searchprogram.o \
+	dialogs/settings.o \
+	shell/entries.o \
+	shell/fatfs.o \
+	shell/filechild.o \
+	shell/shellfs.o \
+	shell/mainframe.o \
+	shell/ntobjfs.o \
+	shell/pane.o \
+	shell/regfs.o \
+	shell/shellbrowser.o \
+	shell/startup.o \
+	shell/unixfs.o \
+	shell/webchild.o \
+	shell/winfs.o \
+	taskbar/desktopbar.o \
+	taskbar/taskbar.o \
+	taskbar/startmenu.o \
+	taskbar/traynotify.o \
+	taskbar/quicklaunch.o \
+	taskbar/favorites.o \
+	utility/shellclasses.o \
+	utility/utility.o \
+	utility/window.o \
+	utility/dragdropimpl.o \
+	utility/shellbrowserimpl.o \
+	utility/xmlstorage.o
+SUBDIRS := notifyhook
+DEP_OBJECTS := $(TARGET_OBJECTS)
 
-LIBS = gdi32 comctl32 ole32 uuid expat
-DELAYIMPORTS = oleaut32 wsock32
+include $(PATH_TO_TOP)/rules.mak
 
-.PHONY: all depends implib clean install dist bootcd depends
-
-all: buildno.h $(TARGET)
-
-docu: doxy-footer.html
-	doxygen Doxyfile
-
-full-docu: docu
-	-cmd /c start /b /low /wait hhc doxy-doc\html\index.hhp
-	cmd /c move /y doxy-doc\html\index.chm ros-explorer.chm
-	doxygen Doxyfile-all
-	-cmd /c start /b /low /wait hhc doxy-doc\html\index.hhp
-	cmd /c move /y doxy-doc\html\index.chm ros-explorer-full.chm
-
-doxy-footer.html: ever
-	updatefooter
-
-ever:
-
-buildno.h: ../../../include/reactos/buildno.h
-	$(CD_PREFIX)updatebuildno
-
-$(TARGET): $(OBJECTS) $(PROGRAM)$(RES_SUFFIX) notifyhook.dll
-	$(LINK) $(LFLAGS) -o $@ $^ $(addprefix -l,$(LIBS)) $(addprefix -l,$(DELAYIMPORTS)) -L$(PATH_TO_TOP)/dk/w32/lib
-
-explorer$(RES_SUFFIX): $(PROGRAM)_intres.rc res/*.bmp res/*.ico
-	$(RC) $(RCFLAGS) -o $@ $(PROGRAM)_intres.rc
-
-notifyhook.dll: notifyhook/notifyhook.c notifyhook/notifyhook.h
-	$(CC) -D_WIN32_IE=0x0600 -Wall -D_NOTIFYHOOK_IMPL -Os -s notifyhook/notifyhook.c -shared -o $@
-
-clean:
-	$(TOOLS_PATH)/rdel $(TARGET) $(OBJECTS) $(PROGRAM)$(RES_SUFFIX) $(DEP_FILES) buildno.h notifyhook.dll
-
-LIVECD_DIR=$(PATH_TO_TOP)/../livecd/disk
-
-ifeq ($(LIVECD_INSTALL),yes)
-INSTALL_DIR=$(LIVECD_DIR)/reactos
-else
-# Use environment var ROS_INSTALL to override default install dir
-ifeq ($(ROS_INSTALL),)
-ifeq ($(HOST),mingw32-windows)
-INSTALL_DIR = C:/reactos
-else
-INSTALL_DIR = $(PATH_TO_TOP)/reactos
-endif
-else
-INSTALL_DIR = $(ROS_INSTALL)
-endif
-endif
-
-implib:
-
-install:
-	-$(TOOLS_PATH)/rcopy $(TARGET) $(INSTALL_DIR)/$(TARGET)
-	-$(TOOLS_PATH)/rcopy notifyhook.dll $(INSTALL_DIR)/system32/notifyhook.dll
-
-bootcd:
-
-
-# dependency scanning
-
-DEP_FILTERED := $(filter-out $(DEP_EXCLUDE_FILTER), $(OBJECTS:.o=.d))
-DEP_FILES := $(join $(dir $(DEP_FILTERED)), $(addprefix ., $(notdir $(DEP_FILTERED))))
-
-ifneq ($(MAKECMDGOALS),clean)
--include $(DEP_FILES)
-endif
-
-ifeq ($(HOST),mingw32-windows)
-DEPENDS_EXE := ..\..\..\tools\depends
-else
-DEPENDS_EXE := $(TOOLS_PATH)/depends
-endif
-
-.%.d: %.c $(PATH_TO_TOP)/tools/depends$(EXE_POSTFIX)
-	$(CC) $(CFLAGS) -M $< | $(DEPENDS_EXE) $(@D) $@
-
-.%.d: %.cpp $(PATH_TO_TOP)/tools/depends$(EXE_POSTFIX)
-	$(CC) $(CFLAGS) -M $< | $(DEPENDS_EXE) $(@D) $@
+include $(TOOLS_PATH)/helper.mk
 
+include $(TOOLS_PATH)/depend.mk
diff --git a/reactos/subsys/system/explorer/desktop/desktop.cpp b/reactos/subsys/system/explorer/desktop/desktop.cpp
index 094d8c33e38..178db3715a7 100644
--- a/reactos/subsys/system/explorer/desktop/desktop.cpp
+++ b/reactos/subsys/system/explorer/desktop/desktop.cpp
@@ -306,7 +306,11 @@ void BackgroundWindow::DrawDesktopBkgnd(HDC hdc)
 		rect.right = rect.left + 250;
 		rect.bottom = rect.top + 40;
 
-	#include "../buildno.h"
+#ifdef _ROS_
+#include <reactos/buildno.h>
+#else
+#include "../buildno.h"
+#endif
 		static const LPCTSTR BkgndText = TEXT("ReactOS ")TEXT(KERNEL_VERSION_STR)TEXT(" Explorer\nby Martin Fuchs");
 
 		BkMode bkMode(hdc, TRANSPARENT);
diff --git a/reactos/subsys/system/explorer/notifyhook/Makefile b/reactos/subsys/system/explorer/notifyhook/Makefile
new file mode 100644
index 00000000000..7ebfc4ab764
--- /dev/null
+++ b/reactos/subsys/system/explorer/notifyhook/Makefile
@@ -0,0 +1,10 @@
+PATH_TO_TOP := ../../../..
+TARGET_TYPE := dynlink
+TARGET_NAME := notifyhook
+TARGET_CFLAGS := -D__USE_W32API -D_WIN32_IE=0x0600 -Wall -D_NOTIFYHOOK_IMPL
+TARGET_NORC := yes
+TARGET_DEFONLY := yes
+TARGET_OBJECTS := notifyhook.o
+
+include $(PATH_TO_TOP)/rules.mak
+include $(TOOLS_PATH)/helper.mk
diff --git a/reactos/subsys/system/explorer/notifyhook/notifyhook.def b/reactos/subsys/system/explorer/notifyhook/notifyhook.def
new file mode 100644
index 00000000000..ffbd2254c38
--- /dev/null
+++ b/reactos/subsys/system/explorer/notifyhook/notifyhook.def
@@ -0,0 +1,5 @@
+EXPORTS
+DeinstallNotifyHook
+GetWindowModulePath
+GetWindowModulePathCopyData
+InstallNotifyHook
diff --git a/reactos/tools/helper.mk b/reactos/tools/helper.mk
index e188f95fac9..bd2eef91776 100644
--- a/reactos/tools/helper.mk
+++ b/reactos/tools/helper.mk
@@ -1,4 +1,4 @@
-# $Id: helper.mk,v 1.72 2004/08/01 23:27:56 navaraf Exp $
+# $Id: helper.mk,v 1.73 2004/08/02 15:04:24 navaraf Exp $
 #
 # Helper makefile for ReactOS modules
 # Variables this makefile accepts:
@@ -51,8 +51,6 @@
 #   $TARGET_BOOTSTRAP_NAME = Name on the installation medium (optional)
 #   $TARGET_REGTESTS   = This module has regression tests (no,yes) (optional)
 #   $TARGET_BUILDENV_TEST = Build this test to be run in the build environment (no,yes) (optional)
-#   $WINE_MODE         = Compile using WINE headers (no,yes) (optional)
-#   $WINE_RC           = Name of .rc file for WINE modules (optional)
 #   $SUBDIRS           = Subdirs in which to run make (optional)
 
 include $(PATH_TO_TOP)/config
@@ -122,14 +120,8 @@ ifeq ($(TARGET_TYPE),program)
   MK_DEFENTRY := _DEFINE_TARGET_APPTYPE
   MK_DDKLIBS :=
   MK_SDKLIBS :=
-ifneq ($(WINE_MODE),yes)
   MK_CFLAGS := -I.
   MK_CPPFLAGS := -I.
-else
-  MK_CFLAGS := -I$(PATH_TO_TOP)/include/wine
-  MK_CPPFLAGS := -I$(PATH_TO_TOP)/include/wine
-  MK_RCFLAGS := --include-dir $(PATH_TO_TOP)/include/wine --include-dir $(WINE_INCLUDE)
-endif
   MK_IMPLIB := no
   MK_IMPLIBONLY := no
   MK_IMPLIBDEFPATH :=
@@ -137,11 +129,7 @@ endif
   MK_INSTALLDIR := bin
   MK_BOOTCDDIR := system32
   MK_DISTDIR := apps
-ifeq ($(WINE_RC),)
   MK_RES_BASE := $(TARGET_NAME)
-else
-  MK_RES_BASE := $(WINE_RC)
-endif
 endif
 
 ifeq ($(TARGET_TYPE),proglib)
@@ -170,14 +158,8 @@ ifeq ($(TARGET_TYPE),dynlink)
   MK_DEFENTRY := _DllMain@12
   MK_DDKLIBS :=
   MK_SDKLIBS :=
-ifneq ($(WINE_MODE),yes)
   MK_CFLAGS := -I.
   MK_CPPFLAGS := -I.
-else
-  MK_CFLAGS := -I$(PATH_TO_TOP)/include/wine -I. -I$(WINE_INCLUDE)
-  MK_CPPFLAGS := -I$(PATH_TO_TOP)/include/wine -I. -I$(WINE_INCLUDE)
-  MK_RCFLAGS := --include-dir $(PATH_TO_TOP)/include/wine --include-dir $(WINE_INCLUDE)
-endif
   MK_IMPLIB := yes
   MK_IMPLIBONLY := no
   MK_IMPLIBDEFPATH := $(SDK_PATH_LIB)
@@ -185,11 +167,7 @@ endif
   MK_INSTALLDIR := system32
   MK_BOOTCDDIR := system32
   MK_DISTDIR := dlls
-ifeq ($(WINE_RC),)
   MK_RES_BASE := $(TARGET_NAME)
-else
-  MK_RES_BASE := $(WINE_RC)
-endif
 endif
 
 ifeq ($(TARGET_TYPE),library)
@@ -223,6 +201,7 @@ ifeq ($(TARGET_TYPE),kmlibrary)
   MK_IMPLIBDEFPATH := $(DDK_PATH_LIB)
   #MK_IMPLIB_EXT :=
 endif
+
 ifeq ($(TARGET_TYPE),driver_library)
   MK_MODE := kernel
   MK_EXETYPE := dll