diff --git a/reactos/dll/win32/itss/CMakeLists.txt b/reactos/dll/win32/itss/CMakeLists.txt
index ad719e6e7f6..eb5ca6a20a0 100644
--- a/reactos/dll/win32/itss/CMakeLists.txt
+++ b/reactos/dll/win32/itss/CMakeLists.txt
@@ -11,30 +11,11 @@ list(APPEND SOURCE
     moniker.c
     protocol.c
     storage.c
-    #${REACTOS_BINARY_DIR}/include/reactos/wine/itss_i.c
     ${CMAKE_CURRENT_BINARY_DIR}/itss_stubs.c
     ${CMAKE_CURRENT_BINARY_DIR}/itss.def)
 
-add_library(itss SHARED
-    ${SOURCE}
-    rsrc.rc)
-
+add_library(itss SHARED ${SOURCE} rsrc.rc)
 set_module_type(itss win32dll)
 target_link_libraries(itss uuid wine)
-
-if(NOT MSVC)
-    # FIXME: http://www.cmake.org/Bug/view.php?id=12998
-    #allow_warnings(itss)
-    set_source_files_properties(${SOURCE} PROPERTIES COMPILE_FLAGS "-Wno-error")
-endif()
-
-add_importlibs(itss
-    urlmon
-    shlwapi
-    ole32
-    msvcrt
-    kernel32
-    ntdll)
-
-add_dependencies(itss wineheaders)
+add_importlibs(itss urlmon shlwapi ole32 msvcrt kernel32 ntdll)
 add_cd_file(TARGET itss DESTINATION reactos/system32 FOR all)
diff --git a/reactos/dll/win32/itss/chm_lib.c b/reactos/dll/win32/itss/chm_lib.c
index 22ba6e8a6a8..1c14442e6b6 100644
--- a/reactos/dll/win32/itss/chm_lib.c
+++ b/reactos/dll/win32/itss/chm_lib.c
@@ -835,7 +835,7 @@ struct chmFile *chm_dup(struct chmFile *oldHandle)
     struct chmFile *newHandle=NULL;
 
     newHandle = HeapAlloc(GetProcessHeap(), 0, sizeof(struct chmFile));
-    memcpy(newHandle, oldHandle, sizeof(struct chmFile));
+    *newHandle = *oldHandle;
 
     /* duplicate fd handle */
     DuplicateHandle(GetCurrentProcess(), oldHandle->fd,
diff --git a/reactos/dll/win32/itss/itss.c b/reactos/dll/win32/itss/itss.c
index de76cdc2171..49658ef189f 100644
--- a/reactos/dll/win32/itss/itss.c
+++ b/reactos/dll/win32/itss/itss.c
@@ -62,8 +62,6 @@ BOOL WINAPI DllMain(HINSTANCE hInstDLL, DWORD fdwReason, LPVOID lpv)
         DisableThreadLibraryCalls(hInstDLL);
         hInst = hInstDLL;
         break;
-    case DLL_PROCESS_DETACH:
-        break;
     }
     return TRUE;
 }
@@ -200,8 +198,8 @@ static HRESULT WINAPI ITStorageImpl_QueryInterface(
     if (IsEqualGUID(riid, &IID_IUnknown)
 	|| IsEqualGUID(riid, &IID_IITStorage))
     {
-	IClassFactory_AddRef(iface);
-	*ppvObject = This;
+	IITStorage_AddRef(iface);
+	*ppvObject = iface;
 	return S_OK;
     }
 
diff --git a/reactos/dll/win32/itss/moniker.c b/reactos/dll/win32/itss/moniker.c
index f45e9385df1..a9e33d33de5 100644
--- a/reactos/dll/win32/itss/moniker.c
+++ b/reactos/dll/win32/itss/moniker.c
@@ -69,8 +69,8 @@ static HRESULT WINAPI ITS_IMonikerImpl_QueryInterface(
     if (IsEqualGUID(riid, &IID_IUnknown)
 	|| IsEqualGUID(riid, &IID_IParseDisplayName))
     {
-	IClassFactory_AddRef(iface);
-	*ppvObject = This;
+	IMoniker_AddRef(iface);
+	*ppvObject = iface;
 	return S_OK;
     }
 
@@ -358,7 +358,7 @@ static HRESULT ITS_IMoniker_create( IMoniker **ppObj, LPCWSTR name, DWORD n )
     DWORD sz;
 
     /* szFile[1] has space for one character already */
-    sz = sizeof(ITS_IMonikerImpl) + strlenW( name )*sizeof(WCHAR);
+    sz = FIELD_OFFSET( ITS_IMonikerImpl, szFile[strlenW( name ) + 1] );
 
     itsmon = HeapAlloc( GetProcessHeap(), 0, sz );
     itsmon->IMoniker_iface.lpVtbl = &ITS_IMonikerImpl_Vtbl;
@@ -399,8 +399,8 @@ static HRESULT WINAPI ITS_IParseDisplayNameImpl_QueryInterface(
     if (IsEqualGUID(riid, &IID_IUnknown)
 	|| IsEqualGUID(riid, &IID_IParseDisplayName))
     {
-	IClassFactory_AddRef(iface);
-	*ppvObject = This;
+	IParseDisplayName_AddRef(iface);
+	*ppvObject = iface;
 	return S_OK;
     }
 
diff --git a/reactos/dll/win32/itss/protocol.c b/reactos/dll/win32/itss/protocol.c
index dca3858c457..6426b4c727e 100644
--- a/reactos/dll/win32/itss/protocol.c
+++ b/reactos/dll/win32/itss/protocol.c
@@ -138,6 +138,55 @@ static LPCWSTR skip_schema(LPCWSTR url)
     return NULL;
 }
 
+/* Adopted from urlmon */
+static void remove_dot_segments(WCHAR *path) {
+    const WCHAR *in = path;
+    WCHAR *out = path;
+
+    while(1) {
+        /* Move the first path segment in the input buffer to the end of
+         * the output buffer, and any subsequent characters up to, including
+         * the next "/" character (if any) or the end of the input buffer.
+         */
+        while(*in != '/') {
+            if(!(*out++ = *in++))
+                return;
+        }
+
+        *out++ = *in++;
+
+        while(*in) {
+            if(*in != '.')
+                break;
+
+            /* Handle ending "/." */
+            if(!in[1]) {
+                ++in;
+                break;
+            }
+
+            /* Handle "/./" */
+            if(in[1] == '/') {
+                in += 2;
+                continue;
+            }
+
+            /* If we don't have "/../" or ending "/.." */
+            if(in[1] != '.' || (in[2] && in[2] != '/'))
+                break;
+
+            in += *in ? 3 : 2;
+
+            /* Find the slash preceding out pointer and move out pointer to it */
+            if(out > path+1 && *--out == '/')
+                --out;
+            while(out > path && *(--out) != '/');
+            if(*out == '/')
+                ++out;
+        }
+    }
+}
+
 static HRESULT report_result(IInternetProtocolSink *sink, HRESULT hres)
 {
     IInternetProtocolSink_ReportResult(sink, hres, 0, NULL);
@@ -219,6 +268,8 @@ static HRESULT WINAPI ITSProtocol_Start(IInternetProtocol *iface, LPCWSTR szUrl,
             *p = '/';
     }
 
+    remove_dot_segments(object_name);
+
     TRACE("Resolving %s\n", debugstr_w(object_name));
 
     memset(&chm_object, 0, sizeof(chm_object));
@@ -422,7 +473,9 @@ static HRESULT WINAPI ITSProtocolInfo_CombineUrl(IInternetProtocolInfo *iface,
     if(strchrW(pwzRelativeUrl, ':'))
         return STG_E_INVALIDNAME;
 
-    if(pwzRelativeUrl[0] != '/') {
+    if(pwzRelativeUrl[0] == '#') {
+        base_end += strlenW(base_end);
+    }else if(pwzRelativeUrl[0] != '/') {
         ptr = strrchrW(base_end, '/');
         if(ptr)
             base_end = ptr+1;
diff --git a/reactos/dll/win32/itss/storage.c b/reactos/dll/win32/itss/storage.c
index be72428a4dd..08aeeb0d24c 100644
--- a/reactos/dll/win32/itss/storage.c
+++ b/reactos/dll/win32/itss/storage.c
@@ -620,13 +620,11 @@ static HRESULT ITSS_create_chm_storage(
       struct chmFile *chmfile, const WCHAR *dir, IStorage** ppstgOpen )
 {
     ITSS_IStorageImpl *stg;
-    DWORD len;
 
     TRACE("%p %s\n", chmfile, debugstr_w( dir ) );
 
-    len = strlenW( dir ) + 1;
-    stg = HeapAlloc( GetProcessHeap(), 0, 
-                     sizeof (ITSS_IStorageImpl) + len*sizeof(WCHAR) );
+    stg = HeapAlloc( GetProcessHeap(), 0,
+                     FIELD_OFFSET( ITSS_IStorageImpl, dir[strlenW( dir ) + 1] ));
     stg->IStorage_iface.lpVtbl = &ITSS_IStorageImpl_Vtbl;
     stg->ref = 1;
     stg->chmfile = chmfile;
diff --git a/reactos/media/doc/README.WINE b/reactos/media/doc/README.WINE
index 3ea1ceaf909..985c1b7a3f7 100644
--- a/reactos/media/doc/README.WINE
+++ b/reactos/media/doc/README.WINE
@@ -90,7 +90,7 @@ reactos/dll/win32/initpki         # Synced to Wine-1.7.1
 reactos/dll/win32/inseng          # Synced to Wine-1.7.1
 reactos/dll/win32/iphlpapi        # Out of sync
 reactos/dll/win32/itircl          # Synced to Wine-1.7.1
-reactos/dll/win32/itss            # Synced to Wine-1.5.4
+reactos/dll/win32/itss            # Synced to Wine-1.7.1
 reactos/dll/win32/jscript         # Synced to Wine-1.5.26
 reactos/dll/win32/loadperf        # Synced to Wine-1.5.19
 reactos/dll/win32/localspl        # Synced to Wine-1.5.26