diff --git a/reactos/dll/win32/kernel32/misc/dllmain.c b/reactos/dll/win32/kernel32/misc/dllmain.c
index e91c44f4a7e..6f27b58a648 100644
--- a/reactos/dll/win32/kernel32/misc/dllmain.c
+++ b/reactos/dll/win32/kernel32/misc/dllmain.c
@@ -66,10 +66,7 @@ OpenBaseDirectory(PHANDLE DirHandle)
 {
     OBJECT_ATTRIBUTES ObjectAttributes;
     UNICODE_STRING Name = RTL_CONSTANT_STRING(L"\\BaseNamedObjects");
-    UNICODE_STRING SymName = RTL_CONSTANT_STRING(L"Local");
-    UNICODE_STRING SymName2 = RTL_CONSTANT_STRING(L"Global");
     NTSTATUS Status;
-    HANDLE SymHandle;
 
     InitializeObjectAttributes(&ObjectAttributes,
                                &Name,
@@ -83,44 +80,7 @@ OpenBaseDirectory(PHANDLE DirHandle)
                                    &ObjectAttributes);
     if (!NT_SUCCESS(Status))
     {
-        /* FIXME: It's not our job to create the BNO directory, csr does it */
-        Status = NtCreateDirectoryObject(DirHandle,
-                                         DIRECTORY_ALL_ACCESS,
-                                         &ObjectAttributes);
-        if (!NT_SUCCESS(Status))
-        {
-            DPRINT1("NtCreateDirectoryObject() failed\n");
-        }
-
-        /* Create the "local" Symbolic Link. FIXME: CSR should do this */
-        InitializeObjectAttributes(&ObjectAttributes,
-                                   &SymName,
-                                   OBJ_CASE_INSENSITIVE,
-                                   *DirHandle,
-                                   NULL);
-        Status = NtCreateSymbolicLinkObject(&SymHandle,
-                                            SYMBOLIC_LINK_ALL_ACCESS,
-                                            &ObjectAttributes,
-                                            &Name);
-        if (!NT_SUCCESS(Status))
-        {
-            DPRINT1("NtCreateSymbolicLinkObject() failed\n");
-        }
-
-        /* Create the "global" Symbolic Link. FIXME: CSR should do this */
-        InitializeObjectAttributes(&ObjectAttributes,
-                                   &SymName2,
-                                   OBJ_CASE_INSENSITIVE,
-                                   *DirHandle,
-                                   NULL);
-        Status = NtCreateSymbolicLinkObject(&SymHandle,
-                                            SYMBOLIC_LINK_ALL_ACCESS,
-                                            &ObjectAttributes,
-                                            &Name);
-        if (!NT_SUCCESS(Status))
-        {
-            DPRINT1("NtCreateSymbolicLinkObject() failed\n");
-        }
+        return Status;
     }
 
     DPRINT("Opened BNO: %lx\n", *DirHandle);
diff --git a/reactos/subsystems/win32/csrss/init.c b/reactos/subsystems/win32/csrss/init.c
index 03d28112d94..010574536a9 100644
--- a/reactos/subsystems/win32/csrss/init.c
+++ b/reactos/subsystems/win32/csrss/init.c
@@ -339,6 +339,73 @@ CsrpCreateListenPort (IN     LPWSTR  Name,
 
 /* === INIT ROUTINES === */
 
+/**********************************************************************
+ * CsrpCreateBNODirectory/3
+ *
+ * These used to be part of kernel32 startup, but that clearly wasn't a good
+ * idea, as races were definately possible.  These are moved (as in the 
+ * previous fixmes).
+ */
+static NTSTATUS
+CsrpCreateBNODirectory (int argc, char ** argv, char ** envp)
+{
+    NTSTATUS Status;
+    OBJECT_ATTRIBUTES ObjectAttributes;
+    UNICODE_STRING Name = RTL_CONSTANT_STRING(L"\\BaseNamedObjects");
+    UNICODE_STRING SymName = RTL_CONSTANT_STRING(L"Local");
+    UNICODE_STRING SymName2 = RTL_CONSTANT_STRING(L"Global");
+    HANDLE DirHandle, SymHandle;
+
+    /* Seems like a good place to create these objects which are needed by
+     * win32 processes */
+    InitializeObjectAttributes(&ObjectAttributes,
+                               &Name,
+                               OBJ_CASE_INSENSITIVE,
+                               NULL,
+                               NULL);
+
+    Status = NtCreateDirectoryObject(&DirHandle,
+                                     DIRECTORY_ALL_ACCESS,
+                                     &ObjectAttributes);
+    if (!NT_SUCCESS(Status))
+    {
+        DPRINT1("NtCreateDirectoryObject() failed %08x\n", Status);
+    }
+
+    /* Create the "local" Symbolic Link. 
+     * FIXME: CSR should do this -- Fixed */
+    InitializeObjectAttributes(&ObjectAttributes,
+                               &SymName,
+                               OBJ_CASE_INSENSITIVE,
+                               DirHandle,
+                               NULL);
+    Status = NtCreateSymbolicLinkObject(&SymHandle,
+                                        SYMBOLIC_LINK_ALL_ACCESS,
+                                        &ObjectAttributes,
+                                        &Name);
+    if (!NT_SUCCESS(Status))
+    {
+        DPRINT1("NtCreateDirectoryObject() failed %08x\n", Status);
+    }
+    
+    /* Create the "global" Symbolic Link. */
+    InitializeObjectAttributes(&ObjectAttributes,
+                               &SymName2,
+                               OBJ_CASE_INSENSITIVE,
+                               DirHandle,
+                               NULL);
+    Status = NtCreateSymbolicLinkObject(&SymHandle,
+                                        SYMBOLIC_LINK_ALL_ACCESS,
+                                        &ObjectAttributes,
+                                        &Name);
+    if (!NT_SUCCESS(Status))
+    {
+        DPRINT1("NtCreateDirectoryObject() failed %08x\n", Status);
+    }
+
+    return Status;
+}
+
 /**********************************************************************
  * CsrpCreateHeap/3
  */
@@ -623,6 +690,7 @@ struct {
 	CSR_INIT_ROUTINE EntryPoint;
 	PCHAR ErrorMessage;
 } InitRoutine [] = {
+        {TRUE, CsrpCreateBNODirectory,   "create base named objects directory"},
 	{TRUE, CsrpCreateCallbackPort,   "create the callback port \\Windows\\SbApiPort"},
 	{TRUE, CsrpRegisterSubsystem,    "register with SM"},
 	{TRUE, CsrpCreateHeap,           "create the CSR heap"},