diff --git a/reactos/boot/freeldr/freeldr/windows/setupldr2.c b/reactos/boot/freeldr/freeldr/windows/setupldr2.c
index a900f495c29..ba2875ccb07 100644
--- a/reactos/boot/freeldr/freeldr/windows/setupldr2.c
+++ b/reactos/boot/freeldr/freeldr/windows/setupldr2.c
@@ -23,7 +23,205 @@
 #include <ndk/ldrtypes.h>
 #include <debug.h>
 
+// TODO: Move to .h
+VOID AllocateAndInitLPB(PLOADER_PARAMETER_BLOCK *OutLoaderBlock);
+BOOLEAN WinLdrLoadBootDrivers(PLOADER_PARAMETER_BLOCK LoaderBlock, LPSTR BootPath);
+void WinLdrSetupForNt(PLOADER_PARAMETER_BLOCK LoaderBlock,
+                      PVOID *GdtIdt,
+                      ULONG *PcrBasePage,
+                      ULONG *TssBasePage);
+VOID
+WinLdrInitializePhase1(PLOADER_PARAMETER_BLOCK LoaderBlock,
+                       PCHAR Options,
+                       PCHAR SystemPath,
+                       PCHAR BootPath,
+                       USHORT VersionToBoot);
+
+
+
+//FIXME: Do a better way to retrieve Arc disk information
+extern ULONG reactos_disk_count;
+extern ARC_DISK_SIGNATURE reactos_arc_disk_info[];
+extern char reactos_arc_strings[32][256];
+
+extern BOOLEAN UseRealHeap;
+extern ULONG LoaderPagesSpanned;
+
 VOID LoadReactOSSetup2(VOID)
 {
-}
+    CHAR  SystemPath[512], SearchPath[512];
+    CHAR  FileName[512];
+    CHAR  BootPath[512];
+    LPCSTR BootOptions;
+    PVOID NtosBase = NULL, HalBase = NULL, KdComBase = NULL;
+    BOOLEAN Status;
+    ULONG BootDevice;
+    ULONG i, ErrorLine;
+    HINF InfHandle;
+    INFCONTEXT InfContext;
+    PLOADER_PARAMETER_BLOCK LoaderBlock, LoaderBlockVA;
+    KERNEL_ENTRY_POINT KiSystemStartup;
+    PLDR_DATA_TABLE_ENTRY KernelDTE, HalDTE, KdComDTE = NULL;
+    // Mm-related things
+    PVOID GdtIdt;
+    ULONG PcrBasePage=0;
+    ULONG TssBasePage=0;
+    LPCSTR SourcePath;
+    LPCSTR SourcePaths[] =
+    {
+        "", /* Only for floppy boot */
+#if defined(_M_IX86)
+        "\\I386",
+#elif defined(_M_MPPC)
+        "\\PPC",
+#elif defined(_M_MRX000)
+        "\\MIPS",
+#endif
+        "\\reactos",
+        NULL
+    };
 
+    /* Get boot device number */
+    MachDiskGetBootDevice(&BootDevice);
+
+    /* Open 'txtsetup.sif' from any of source paths */
+    for (i = MachDiskBootingFromFloppy() ? 0 : 1; ; i++)
+    {
+        SourcePath = SourcePaths[i];
+        if (!SourcePath)
+        {
+            printf("Failed to open 'txtsetup.sif'\n");
+            return;
+        }
+        sprintf(FileName,"%s\\txtsetup.sif", SourcePath);
+        if (InfOpenFile (&InfHandle, FileName, &ErrorLine))
+            break;
+    }
+
+    /* If we didn't find it anywhere, then just use root */
+    if (!*SourcePath)
+        SourcePath = "\\";
+
+    /* Load options */
+    if (!InfFindFirstLine(InfHandle,
+                          "SetupData",
+                          "OsLoadOptions",
+                          &InfContext))
+    {
+        printf("Failed to find 'SetupData/OsLoadOptions'\n");
+        return;
+    }
+
+    if (!InfGetDataField (&InfContext, 1, &BootOptions))
+    {
+        printf("Failed to get load options\n");
+        return;
+    }
+
+    /* Save source path */
+    strcpy(BootPath, SourcePath);
+
+    SetupUiInitialize();
+    UiDrawStatusText("");
+    UiDrawStatusText("Detecting Hardware...");
+
+    /* Let user know we started loading */
+    UiDrawStatusText("Loading...");
+
+    /* Try to open system drive */
+    FsOpenBootVolume();
+
+    /* Append a backslash to the bootpath if needed */
+    if ((strlen(BootPath)==0) || BootPath[strlen(BootPath)] != '\\')
+    {
+        strcat(BootPath, "\\");
+    }
+
+    /* Construct the system path */
+    MachDiskGetBootPath(SystemPath, sizeof(SystemPath));
+    strcat(SystemPath, SourcePath);
+
+    DPRINTM(DPRINT_WINDOWS,"SystemRoot: '%s', SystemPath: '%s'\n", BootPath, SystemPath);
+
+    /* Allocate and minimalistic-initialize LPB */
+    AllocateAndInitLPB(&LoaderBlock);
+
+    /* Detect hardware */
+    UseRealHeap = TRUE;
+    LoaderBlock->ConfigurationRoot = MachHwDetect();
+
+    /* Load kernel */
+    strcpy(FileName, BootPath);
+    strcat(FileName, "NTOSKRNL.EXE");
+    Status = WinLdrLoadImage(FileName, LoaderSystemCode, &NtosBase);
+    DPRINTM(DPRINT_WINDOWS, "Ntos loaded with status %d at %p\n", Status, NtosBase);
+
+    /* Load HAL */
+    strcpy(FileName, BootPath);
+    strcat(FileName, "HAL.DLL");
+    Status = WinLdrLoadImage(FileName, LoaderHalCode, &HalBase);
+    DPRINTM(DPRINT_WINDOWS, "HAL loaded with status %d at %p\n", Status, HalBase);
+
+    /* Load kernel-debugger support dll */
+    strcpy(FileName, BootPath);
+    strcat(FileName, "KDCOM.DLL");
+    Status = WinLdrLoadImage(FileName, LoaderBootDriver, &KdComBase);
+    DPRINTM(DPRINT_WINDOWS, "KdCom loaded with status %d at %p\n", Status, KdComBase);
+
+    /* Allocate data table entries for above-loaded modules */
+    WinLdrAllocateDataTableEntry(LoaderBlock, "ntoskrnl.exe",
+        "NTOSKRNL.EXE", NtosBase, &KernelDTE);
+    WinLdrAllocateDataTableEntry(LoaderBlock, "hal.dll",
+        "HAL.DLL", HalBase, &HalDTE);
+    WinLdrAllocateDataTableEntry(LoaderBlock, "kdcom.dll",
+        "KDCOM.DLL", KdComBase, &KdComDTE);
+
+    /* Load all referenced DLLs for kernel, HAL and kdcom.dll */
+    strcpy(SearchPath, BootPath);
+    WinLdrScanImportDescriptorTable(LoaderBlock, SearchPath, KernelDTE);
+    WinLdrScanImportDescriptorTable(LoaderBlock, SearchPath, HalDTE);
+    if (KdComDTE)
+        WinLdrScanImportDescriptorTable(LoaderBlock, SearchPath, KdComDTE);
+
+    /* Load Hive, and then NLS data, OEM font, and prepare boot drivers list */
+    //Status = WinLdrLoadAndScanSystemHive(LoaderBlock, BootPath);
+    DPRINTM(DPRINT_WINDOWS, "SYSTEM hive loaded and scanned with status %d\n", Status);
+
+    /* Load boot drivers */
+    //Status = WinLdrLoadBootDrivers(LoaderBlock, BootPath);
+    DPRINTM(DPRINT_WINDOWS, "Boot drivers loaded with status %d\n", Status);
+
+    /* Alloc PCR, TSS, do magic things with the GDT/IDT */
+    WinLdrSetupForNt(LoaderBlock, &GdtIdt, &PcrBasePage, &TssBasePage);
+
+    /* Initialize Phase 1 - no drivers loading anymore */
+    WinLdrInitializePhase1(LoaderBlock, (PCHAR)BootOptions, SystemPath, BootPath, _WIN32_WINNT_WS03);
+
+    /* Save entry-point pointer and Loader block VAs */
+    KiSystemStartup = (KERNEL_ENTRY_POINT)KernelDTE->EntryPoint;
+    LoaderBlockVA = PaToVa(LoaderBlock);
+
+    /* "Stop all motors", change videomode */
+    MachPrepareForReactOS(FALSE);
+
+    /* Debugging... */
+    //DumpMemoryAllocMap();
+
+    /* Turn on paging mode of CPU*/
+    WinLdrTurnOnPaging(LoaderBlock, PcrBasePage, TssBasePage, GdtIdt);
+
+    /* Save final value of LoaderPagesSpanned */
+    LoaderBlock->Extension->LoaderPagesSpanned = LoaderPagesSpanned;
+
+    DPRINTM(DPRINT_WINDOWS, "Hello from paged mode, KiSystemStartup %p, LoaderBlockVA %p!\n",
+        KiSystemStartup, LoaderBlockVA);
+
+    //WinLdrpDumpMemoryDescriptors(LoaderBlockVA);
+    //WinLdrpDumpBootDriver(LoaderBlockVA);
+    //WinLdrpDumpArcDisks(LoaderBlockVA);
+
+    /* Pass control */
+    (*KiSystemStartup)(LoaderBlockVA);
+
+    return;
+}