diff --git a/etc/Makefile b/etc/Makefile
index 0827df0c0..b0c62d4c7 100644
--- a/etc/Makefile
+++ b/etc/Makefile
@@ -1,6 +1,6 @@
 
-ETC=/etc
-USRETC=/usr/etc
+ETC=/etc/
+USRETC=/usr/etc/
 FILES1=fstab group hostname.file inet.conf motd mtab passwd profile protocols rc services termcap ttytab utmp
 FILES2=shadow
 FILES3=daily dhcptags.conf rc
@@ -12,10 +12,10 @@ clean::
 install::
 	@echo "Installing /etc and /usr/etc.."
 	mkdir -p $(ETC)
-	for f in $(FILES1); do if [ -f $(ETC)/$$f ]; then echo $$f exists; else cp $$f $(ETC); fi; done
+	for f in $(FILES1); do if [ -f $(ETC)/$$f ]; then echo $$f exists; else cp $$f $(ETC); chmod 755 $(ETC)/$$f; fi; done
 	for f in $(FILES2); do if [ -f $(ETC)/$$f ]; then echo $$f exists; else cp $$f $(ETC); chmod 600 $(ETC)/$$f; fi; done
-	for f in $(FILES3); do if [ -f $(USRETC)/$$f ]; then echo $$f exists; else cp usr/$$f $(USRETC); chmod 755 $(USRETC)/$$f; fi; done
 	@echo "Making hierarchy.."
 	./mtree.sh mtree/minix.tree
+	for f in $(FILES3); do if [ -f $(USRETC)/$$f ]; then echo $$f exists; else cp usr/$$f $(USRETC); chmod 755 $(USRETC)/$$f; fi; done
 	cd /dev && /usr/src/commands/scripts/MAKEDEV.sh std
-	(cd ast && tar cf - . ) | (cd /usr/ast && tar xf - )
+	(cd ast && tar cf - .* ) | (cd /usr/ast && tar xf - )
diff --git a/etc/hostname.file b/etc/hostname.file
index eaa95e7d0..aa6ca5db6 100755
--- a/etc/hostname.file
+++ b/etc/hostname.file
@@ -1 +1 @@
-noname
+minix
diff --git a/etc/rc b/etc/rc
index 4c4f8c927..83a943172 100755
--- a/etc/rc
+++ b/etc/rc
@@ -50,6 +50,21 @@ start)
     # Any swapspace on a device?
     test "$swap" : '/dev/' && mount -s $swap
 
+    # Are we booting from CD?
+    bootcd="`/bin/sysenv bootcd`"
+    ramname="`/bin/sysenv ramname`"
+
+    # If booting from CD, /usr has to be mounted readonly.
+    # Also, $usr won't be specified correctly in the
+    # fstab (the CD could be anywhere), so we decide
+    # where it is.
+    if [ "$bootcd" = 1 ]
+    then	
+    		usr_roflag="-r"
+    		usr="/dev/${ramname}p2"
+    		echo "Setting /usr to mount readonly from cd: $ramname -> $usr"
+    fi
+ 
     # Mount the /usr partition unless this is a single floppy Minix.
     if [ ! -d /usr/bin ]
     then
@@ -62,7 +77,7 @@ start)
 		echo "usr=/dev/$usr" >/tmp/usr'
 	    . /tmp/usr
 	fi
-	mount $usr /usr || {
+	mount $usr_roflag $usr /usr || {
 	    echo "\
 Please try to mount something else as /usr, then hit CTRL-D to continue startup.
 Mount $usr /usr failed -- Single user."
@@ -96,10 +111,12 @@ Mount $usr /usr failed -- Single user."
     # Any swapspace on a file?
     test -n "$swap" -a ! "$swap" : '/dev/' && mount -s $swap
 
-    case "`printroot -r`" in
-    /dev/ram)
-	# Remove boot-only things to make space.
-	rm -rf /boot /minix
+
+    case "`printroot -r`":$bootcd in
+    /dev/ram:)
+	# Remove boot-only things to make space,
+	# unless booting from CD, in which case we need them.
+	rm -rf /boot
     esac
 
     # Things should be alright now.
diff --git a/etc/usr/daily b/etc/usr/daily
index b0e80e23b..225f7a1db 100755
--- a/etc/usr/daily
+++ b/etc/usr/daily
@@ -20,7 +20,7 @@ then
     set -- `ls -lT $timestamp`
     test "$6 $7 $9" = "$(date '+%b %d %Y')" && exit
 fi
->$timestamp
+>$timestamp 2>/dev/null # Makes for errors when booting from CD
 
 # Remove three day old files from various tmp dirs.
 cleantmp -3 /tmp /usr/tmp /usr/preserve /usr/spool/lpd /usr/spool/at/past