diff --git a/IPython/Extensions/ipy_kitcfg.py b/IPython/Extensions/ipy_kitcfg.py
new file mode 100644
index 0000000..2c135fc
--- /dev/null
+++ b/IPython/Extensions/ipy_kitcfg.py
@@ -0,0 +1,16 @@
+#import IPython.ipapi
+#ip = IPython.ipapi.get()
+
+import os
+
+def main():
+    root = os.environ.get('IPYKITROOT', None)
+    if not root:
+        print "Can't configure ipykit, IPYKITROOT should be set."
+        return
+    
+    os.environ["PATH"] = os.environ["PATH"] + ";" + root + "\\bin;"
+
+main()
+
+
diff --git a/IPython/genutils.py b/IPython/genutils.py
index 8cc5ef0..64ccca9 100644
--- a/IPython/genutils.py
+++ b/IPython/genutils.py
@@ -5,7 +5,7 @@ General purpose utilities.
 This is a grab-bag of stuff I find useful in most programs I write. Some of
 these things are also convenient when working at the command line.
 
-$Id: genutils.py 2398 2007-05-26 10:20:14Z vivainio $"""
+$Id: genutils.py 2408 2007-05-28 16:29:50Z vivainio $"""
 
 #*****************************************************************************
 #       Copyright (C) 2001-2006 Fernando Perez. <fperez@colorado.edu>
@@ -812,9 +812,11 @@ def get_home_dir():
     
     # first, check py2exe distribution root directory for _ipython.
     # This overrides all. Normally does not exist.
+    
     if '\\library.zip\\' in IPython.__file__.lower():
         root, rest = IPython.__file__.lower().split('library.zip')
-        if os.path.isdir(root + '_ipython'):
+        if isdir(root + '_ipython'):
+            os.environ["IPYKITROOT"] = root.rstrip('\\')
             return root
     
     try:
diff --git a/exesetup.py b/exesetup.py
index dee3dca..a940924 100644
--- a/exesetup.py
+++ b/exesetup.py
@@ -15,12 +15,6 @@ svn co http://ipython.scipy.org/svn/ipython/pyreadline/trunk/pyreadline
 
 - Create the distribution in 'dist' by running "python exesetup.py py2exe"
 
-- Create initial configuration by running:
-
-mkdir dist\_ipython
-touch dist/_ipython/ipythonrc.ini
-echo import ipy_profile_sh > dist/_ipython/ipy_user_conf.py
-
 - Run ipython.exe to go.
 
 """
@@ -63,20 +57,7 @@ def file_doesnt_endwith(test,endings):
     return True
 
 
-if 'setuptools' in sys.modules:
-    # setuptools config for egg building
-    egg_extra_kwds = {
-        'entry_points': {
-            'console_scripts': [
-            'ipython = IPython.ipapi:launch_new_instance',
-            'pycolor = IPython.PyColorize:main'
-            ]}
-        }
-    scriptfiles = []
-    # eggs will lack docs, examples XXX not anymore
-    #datafiles = [('lib', 'IPython/UserConfig', cfgfiles)]
-else:
-    egg_extra_kwds = {}
+egg_extra_kwds = {}
 
 # Call the setup() routine which does most of the work
 setup(name             = name,
@@ -103,5 +84,8 @@ setup(name             = name,
     **egg_extra_kwds                        
     )
 
-
-
+if not os.path.isdir("dist/_ipython"):
+    print "Creating simple _ipython dir"
+    os.mkdir("dist/_ipython")
+    open("dist/_ipython/ipythonrc.ini","w").write("# intentionally blank\n")
+    open("dist/_ipython/ipy_user_conf.py","w").write("import ipy_kitcfg\nimport ipy_profile_sh\n")