diff --git a/IPython/Extensions/ipy_sane_defaults.py b/IPython/Extensions/ipy_sane_defaults.py
new file mode 100644
index 0000000..424a097
--- /dev/null
+++ b/IPython/Extensions/ipy_sane_defaults.py
@@ -0,0 +1,60 @@
+""" Set default options for "reasonable use" 
+
+Just import this module to get reasonable defaults for everything.
+
+These configurations used to be performed in ipythonrc (or ipythonrc.ini). 
+Therefore importing this in your config files makes ipython basically
+ignore your ipythonrc. This is *not* imported by default, you need to import 
+this manually in one of your config files.
+
+You can further override these defaults in e.g. your ipy_user_config.py,
+ipy_profile_PROFILENAME etc.
+
+"""
+
+import IPython.rlineimpl as readline
+import IPython.ipapi
+ip = IPython.ipapi.get()
+
+o = ip.options()
+
+
+o.colors = "Linux"
+o.color_info=1
+o.confirm_exit=1
+o.pprint=1
+o.multi_line_specials=1
+o.xmode="Context"
+
+
+o.prompt_in1='In [\#]: '
+o.prompt_in2 ='   .\D.: '
+o.prompt_out = 'Out[\#]: '
+o.prompts_pad_left=1
+
+o.readline_remove_delims="-/~"
+o.readline_merge_completions=1
+
+o.readline = 1
+
+rlopts = """\
+tab: complete
+"\C-l": possible-completions
+set show-all-if-ambiguous on
+"\C-o": tab-insert
+"\M-i": "    "
+"\M-o": "\d\d\d\d"
+"\M-I": "\d\d\d\d"
+"\C-r": reverse-search-history
+"\C-s": forward-search-history
+"\C-p": history-search-backward
+"\C-n": history-search-forward
+"\e[A": history-search-backward
+"\e[B": history-search-forward
+"\C-k": kill-line
+"\C-u": unix-line-discard"""
+
+for cmd in rlopts.split('\n'):
+    readline.parse_and_bind(cmd)
+    
+    
\ No newline at end of file
diff --git a/IPython/UserConfig/ipy_profile_sh.py b/IPython/UserConfig/ipy_profile_sh.py
index 227004f..610063a 100644
--- a/IPython/UserConfig/ipy_profile_sh.py
+++ b/IPython/UserConfig/ipy_profile_sh.py
@@ -13,6 +13,11 @@ compatibility)
 from IPython import ipapi
 import os,textwrap
 
+# The import below effectively obsoletes your old-style ipythonrc[.ini],
+# so consider yourself warned!
+
+import ipy_sane_defaults
+
 def main():
     ip = ipapi.get()
     o = ip.options()
@@ -26,6 +31,9 @@ def main():
         ip.ex("from path import path" )
     except ImportError:
         pass
+    
+    ip.ex('import os')
+    ip.ex("def up(): os.chdir('..')")
         
     # Get pysh-like prompt for all profiles. 
     
diff --git a/IPython/UserConfig/ipy_user_conf.py b/IPython/UserConfig/ipy_user_conf.py
index ea593ba..913fe28 100644
--- a/IPython/UserConfig/ipy_user_conf.py
+++ b/IPython/UserConfig/ipy_user_conf.py
@@ -9,57 +9,20 @@ ipython extensions you need here (see IPython/Extensions directory).
 Feel free to edit this file to customize your ipython experience.
 
 Note that as such this file does nothing, for backwards compatibility.
-To enable this config file, uncomment the call to main() at the end.
-
-Try it out!
+Consult e.g. file 'ipy_profile_sh.py' for an example of the things 
+you can do here.
 
 """
 
 # Most of your config files and extensions will probably start with this import
 
-from IPython import ipapi
-import os
-from IPython import Release
-
-import sys
-
+import IPython.ipapi
+ip = IPython.ipapi.get()
 
 def main():
-    ip = ipapi.get()
     o = ip.options()
-    # autocall to "full" mode (smart mode is default, I like full mode)
-    
-    o.autocall = 1
-    
-    # Jason Orendorff's path class is handy to have in user namespace
-    # if you are doing shell-like stuff
-    try:
-        ip.ex("from path import path" )
-    except ImportError:
-        pass
-        
-    # Get prompt with working dir
-    
-    o.prompt_in1= '\C_LightBlue[\C_LightCyan\Y1\C_LightBlue]\C_Green|\#> '
-    o.prompt_in2= '\C_Green|\C_LightGreen\D\C_Green> '
-    o.prompt_out= '<\#> '
-    
-    # I like my banner minimal.
-    o.banner = "Py %s IPy %s\n" % (sys.version.split('\n')[0],Release.version)
-    
-    # make 'd' an alias for ls -F
-    
-    ip.magic('alias d ls -F --color=auto')
-    
-    # Make available all system commands through "rehashing" immediately. 
-    # You can comment these lines out to speed up startup on very slow 
-    # machines, and to conserve a bit of memory. Note that pysh profile does this
-    # automatically
-    
-    #if os.name=='posix':
-    #    ip.magic('rehash')
-    #else:
-    #    #slightly slower, but better results esp. with Windows
-    #    ip.magic('rehashx')
+    # An example on how to set options
+    #o.autocall = 1
 
-#main()
\ No newline at end of file
+main()
+    
\ No newline at end of file
diff --git a/doc/ChangeLog b/doc/ChangeLog
index 21dc59f..fa1103a 100644
--- a/doc/ChangeLog
+++ b/doc/ChangeLog
@@ -1,6 +1,11 @@
 2006-02-15  Ville Vainio  <vivainio@gmail.com>  
 
 	* Magic.py: %Pprint works again
+	
+	* Extensions/ipy_sane_defaults.py: Provide everything provided 
+	in default ipythonrc, to make it possible to have a completely empty
+	ipythonrc (and thus completely rc-file free configuration)
+	
 
 2006-02-11  Fernando Perez  <Fernando.Perez@colorado.edu>