diff --git a/reactos/subsys/smss/initpage.c b/reactos/subsys/smss/initpage.c
index 33f1cb6628e..1aa855d5457 100644
--- a/reactos/subsys/smss/initpage.c
+++ b/reactos/subsys/smss/initpage.c
@@ -28,66 +28,163 @@
 #define NDEBUG
 #include <debug.h>
 
+#define GIGABYTE (1024 * 1024 * 1024) /* One Gigabyte */
+
 static NTSTATUS STDCALL
 SmpPagingFilesQueryRoutine(PWSTR ValueName,
-			  ULONG ValueType,
-			  PVOID ValueData,
-			  ULONG ValueLength,
-			  PVOID Context,
-			  PVOID EntryContext)
+			                  ULONG ValueType,
+			                  PVOID ValueData,
+			                  ULONG ValueLength,
+			                  PVOID Context,
+			                  PVOID EntryContext)
 {
-  UNICODE_STRING FileName;
-  LARGE_INTEGER InitialSize;
-  LARGE_INTEGER MaximumSize;
-  NTSTATUS Status;
-  LPWSTR p;
+   UNICODE_STRING FileName;
+   LARGE_INTEGER InitialSize;
+   LARGE_INTEGER MaximumSize;
+   NTSTATUS Status = STATUS_SUCCESS;
+   LPWSTR p;
+   WCHAR RootDriveLetter[5];
 
-  DPRINT("ValueName '%S'  Type %lu  Length %lu\n", ValueName, ValueType, ValueLength);
-  DPRINT("ValueData '%S'\n", (PWSTR)ValueData);
 
-  if (ValueType != REG_SZ)
-    {
-      return(STATUS_SUCCESS);
-    }
+   DPRINT("ValueName '%S'  Type %lu  Length %lu\n", ValueName, ValueType, ValueLength);
+   DPRINT("ValueData '%S'\n", (PWSTR)ValueData);
 
-  /*
+   if (ValueType != REG_SZ)
+   {
+      return STATUS_INVALID_PARAMETER_2;
+   }
+
+   if (!RtlDosPathNameToNtPathName_U ((LPWSTR)ValueData,
+      &FileName,
+      NULL,
+      NULL))
+   {
+      return STATUS_OBJECT_PATH_NOT_FOUND;
+   }
+   /*
    * Format: "<path>[ <initial_size>[ <maximum_size>]]"
    */
-  if ((p = wcschr(ValueData, ' ')) != NULL)
-    {
+   if ((p = wcschr(ValueData, ' ')) != NULL)
+   {
       *p = L'\0';
       InitialSize.QuadPart = wcstoul(p + 1, &p, 0) * 256 * 4096;
       if (*p == ' ')
-	{
-	  MaximumSize.QuadPart = wcstoul(p + 1, NULL, 0) * 256 * 4096;
-	}
+      {
+         MaximumSize.QuadPart = wcstoul(p + 1, NULL, 0) * 256 * 4096;
+      }
       else
-	MaximumSize = InitialSize;
-    }
-  else
-    {
-      InitialSize.QuadPart = 50 * 4096;
-      MaximumSize.QuadPart = 80 * 4096;
-    }
+         MaximumSize = InitialSize;
+   }
 
-  if (!RtlDosPathNameToNtPathName_U ((LPWSTR)ValueData,
-				     &FileName,
-				     NULL,
-				     NULL))
-    {
-      return (STATUS_SUCCESS);
-    }
+   /* If there is only a file name or if initial and max are both 0
+      the system will pick the sizes.  10% and 20% for initial and max
+      respectivly.  There is a max of 1 gig before it doesnt make it
+      bigger. */
+   if((InitialSize.QuadPart == 0 && MaximumSize.QuadPart == 0) || p == NULL)
+   {
+      FILE_FS_SIZE_INFORMATION FileFsSize;
+      IO_STATUS_BLOCK IoStatusBlock;
+      HANDLE hFile;
+      UNICODE_STRING NtPathU;
+      LARGE_INTEGER FreeBytes;
+      OBJECT_ATTRIBUTES ObjectAttributes;
 
-  DPRINT("SMSS: Created paging file %wZ with size %dKB\n",
-	 &FileName, InitialSize.QuadPart / 1024);
-  Status = NtCreatePagingFile(&FileName,
-			      &InitialSize,
-			      &MaximumSize,
-			      0);
+      DPRINT("System managed pagefile...\n");
+      /* Make sure the path that is given for the file actually has the drive in it.
+         At this point if there is not file name, no sizes will be set therefore no page
+         file will be created */
+      if (wcslen(((PWSTR)ValueData)) > 2 && 
+          ((PWSTR)ValueData)[1] == L':' && 
+          ((PWSTR)ValueData)[2] == L'\\')
+      {
+         /* copy the drive letter, the colon and the slash,
+            tack a null on the end */
+         p = ((PWSTR)ValueData);
+         wcsncpy(RootDriveLetter,p,3);
+         wcscat(RootDriveLetter,L"\0");
+         DPRINT("At least X:\\...%S\n",RootDriveLetter);
 
-  RtlFreeUnicodeString(&FileName);
+         if (!RtlDosPathNameToNtPathName_U((LPWSTR)RootDriveLetter,
+                                           &NtPathU,
+                                           NULL,
+                                           NULL))
+         {
+            DPRINT("Invalid path\n");
+            return STATUS_OBJECT_PATH_NOT_FOUND;
+         }
 
-  return(STATUS_SUCCESS);
+         InitializeObjectAttributes(&ObjectAttributes,
+                                    &NtPathU,
+                                    FILE_READ_ATTRIBUTES,
+                                    NULL,
+                                    NULL);
+
+         /* Get a handle to the root to find the free space on the drive */
+         Status = NtCreateFile (&hFile,
+                                FILE_GENERIC_READ,
+                                &ObjectAttributes,
+                                &IoStatusBlock,
+                                NULL,
+                                0,
+                                FILE_SHARE_READ,
+                                FILE_OPEN,
+                                0,
+                                NULL,
+                                0);
+
+         RtlFreeUnicodeString(&NtPathU);
+
+         if (!NT_SUCCESS(Status))
+         {
+             DPRINT ("Invalid handle\n");
+             return Status;
+         }
+
+         Status = NtQueryVolumeInformationFile(hFile,
+                                               &IoStatusBlock,
+                                               &FileFsSize,
+                                               sizeof(FILE_FS_SIZE_INFORMATION),
+                                               FileFsSizeInformation);
+
+         FreeBytes.QuadPart = FileFsSize.BytesPerSector * 
+                              FileFsSize.SectorsPerAllocationUnit * 
+                              FileFsSize.AvailableAllocationUnits.QuadPart;
+
+         DPRINT ("Free:%d\n",FreeBytes.QuadPart);
+
+         /* Set by percentage */
+         InitialSize.QuadPart = FreeBytes.QuadPart / 10;
+         MaximumSize.QuadPart = FreeBytes.QuadPart / 5;
+
+         /* The page file is more then a gig, size it down */
+         if (InitialSize.QuadPart > GIGABYTE)
+         {
+             InitialSize.QuadPart = GIGABYTE;
+             MaximumSize.QuadPart = GIGABYTE;
+         }
+
+         ZwClose(hFile);
+      }
+      else
+      {
+         /* No page file will be created, 
+            but we return succes because that 
+            is what the setting wants */
+         return (STATUS_SUCCESS);
+      }
+   }
+
+   DPRINT("SMSS: Created paging file %wZ with size %dKB\n",
+          &FileName, InitialSize.QuadPart / 1024);
+
+   Status = NtCreatePagingFile(&FileName,
+                               &InitialSize,
+                               &MaximumSize,
+                               0);
+
+   RtlFreeUnicodeString(&FileName);
+
+   return Status;
 }