diff --git a/ChangeLog b/ChangeLog
index c63dbe62b2..d754bb72ce 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -3595,3 +3595,10 @@
 	  directory that will be forthcoming.  Also rename libraries:  liblib.a -> libc.a,
 	  libulib.a -> libuc.a, libklib.a -> libkc.a, liblibxx.a ->libcxx.a.
 	  (I will probably, eventually rename libxx to libcxx for consistency)
+	* Makefile, lib/: A new, empty directory that will hold generated libraries.
+	  This simplifies the library patch calculations and lets me get rid of some
+	  bash logic.  The change is functional, but only partially complete;
+	  additional logic is needed in the arch/*/src/Makefile's as well.  Right
+	  now that logic generate multiple library paths, all pointing to the lib/
+	  directory.
+
diff --git a/Documentation/README.html b/Documentation/README.html
index 0a4cc93b0c..771c605c7e 100644
--- a/Documentation/README.html
+++ b/Documentation/README.html
@@ -236,6 +236,8 @@
  |   |       `- <a href="http://svn.code.sf.net/p/nuttx/code/trunk/nuttx/fs/nxffs/README.txt"><b><i>README.txt</i></b></a>
  |   |- graphics/
  |   |   `- <a href="http://svn.code.sf.net/p/nuttx/code/trunk/nuttx/graphics/README.txt"><b><i>README.txt</i></b></a>
+ |   |- lib/
+ |   |   `- <a href="http://svn.code.sf.net/p/nuttx/code/trunk/nuttx/lib/README.txt">README.txt</a>
  |   |- libc/
  |   |   `- <a href="http://svn.code.sf.net/p/nuttx/code/trunk/nuttx/libc/README.txt"><b><i>README.txt</i></b></a>
  |   |- libxx/
diff --git a/Makefile b/Makefile
index c1060c34f7..bb8ee0a411 100644
--- a/Makefile
+++ b/Makefile
@@ -35,7 +35,7 @@
 
 TOPDIR := ${shell pwd | sed -e 's/ /\\ /g'}
 -include ${TOPDIR}/.config
--include ${TOPDIR}/tools/Config.mk
+include ${TOPDIR}/tools/Config.mk
 -include ${TOPDIR}/Make.defs
 
 # Control build verbosity
@@ -83,7 +83,7 @@ APPDIR := ${shell if [ -r $(CONFIG_APPS_DIR)/Makefile ]; then echo "$(CONFIG_APP
 # NUTTX_ADDONS is the list of directories built into the NuttX kernel.
 # USER_ADDONS is the list of directories that will be built into the user application
 
-NUTTX_ADDONS := $(NX_DIR)
+NUTTX_ADDONS :=
 USER_ADDONS :=
 
 ifeq ($(CONFIG_NUTTX_KERNEL),y)
@@ -110,6 +110,7 @@ NONFSDIRS = sched $(ARCH_SRC) $(NUTTX_ADDONS)
 FSDIRS = fs drivers binfmt
 CONTEXTDIRS = $(APPDIR)
 USERDIRS =
+OTHERDIRS = lib
 
 ifeq ($(CONFIG_NUTTX_KERNEL),y)
 
@@ -189,7 +190,7 @@ endif
 # USERLIBS is the list of libraries used to build the final user-space
 #   application
 
-NUTTXLIBS = sched/libsched$(LIBEXT) $(ARCH_SRC)/libarch$(LIBEXT)
+NUTTXLIBS = lib/libsched$(LIBEXT) lib/libarch$(LIBEXT)
 USERLIBS =
 
 # Add libraries for syscall support.  The C library will be needed by
@@ -197,10 +198,10 @@ USERLIBS =
 # is placed in user space (only).
 
 ifeq ($(CONFIG_NUTTX_KERNEL),y)
-NUTTXLIBS += syscall/libstubs$(LIBEXT) libc/libkc$(LIBEXT)
-USERLIBS += syscall/libproxies$(LIBEXT) libc/libuc$(LIBEXT) mm/libmm$(LIBEXT)
+NUTTXLIBS += lib/libstubs$(LIBEXT) lib/libkc$(LIBEXT)
+USERLIBS += lib/libproxies$(LIBEXT) lib/libuc$(LIBEXT) lib/libmm$(LIBEXT)
 else
-NUTTXLIBS += mm/libmm$(LIBEXT) libc/libc$(LIBEXT)
+NUTTXLIBS += lib/libmm$(LIBEXT) lib/libc$(LIBEXT)
 endif
 
 # Add libraries for C++ support.  CXX, CXXFLAGS, and COMPILEXX must
@@ -208,9 +209,9 @@ endif
 
 ifeq ($(CONFIG_HAVE_CXX),y)
 ifeq ($(CONFIG_NUTTX_KERNEL),y)
-USERLIBS += libxx/libcxx$(LIBEXT)
+USERLIBS += lib/libcxx$(LIBEXT)
 else
-NUTTXLIBS += libxx/libcxx$(LIBEXT)
+NUTTXLIBS += lib/libcxx$(LIBEXT)
 endif
 endif
 
@@ -218,40 +219,40 @@ endif
 
 ifneq ($(APPDIR),)
 ifeq ($(CONFIG_NUTTX_KERNEL),y)
-USERLIBS += $(APPDIR)/libapps$(LIBEXT)
+USERLIBS += lib/libapps$(LIBEXT)
 else
-NUTTXLIBS += $(APPDIR)/libapps$(LIBEXT)
+NUTTXLIBS += lib/libapps$(LIBEXT)
 endif
 endif
 
 # Add libraries for network support
 
 ifeq ($(CONFIG_NET),y)
-NUTTXLIBS += net/libnet$(LIBEXT)
+NUTTXLIBS += lib/libnet$(LIBEXT)
 endif
 
 # Add libraries for file system support
 
 ifeq ($(CONFIG_NFILE_DESCRIPTORS),0)
 ifneq ($(CONFIG_NSOCKET_DESCRIPTORS),0)
-NUTTXLIBS += fs/libfs$(LIBEXT)
+NUTTXLIBS += lib/libfs$(LIBEXT)
 endif
 ifeq ($(CONFIG_NET),y)
-NUTTXLIBS += drivers/libdrivers$(LIBEXT)
+NUTTXLIBS += lib/libdrivers$(LIBEXT)
 endif
 else
-NUTTXLIBS += fs/libfs$(LIBEXT) drivers/libdrivers$(LIBEXT) binfmt/libbinfmt$(LIBEXT)
+NUTTXLIBS += lib/libfs$(LIBEXT) lib/libdrivers$(LIBEXT) lib/libbinfmt$(LIBEXT)
 endif
 
 # Add libraries for the NX graphics sub-system
 
-ifneq ($(NX_DIR),)
-NUTTXLIBS += $(NX_DIR)/libnx$(LIBEXT)
+ifeq ($(CONFIG_NX),y)
+NUTTXLIBS += lib/libgraphics$(LIBEXT)
 endif
 
-ifeq ($(CONFIG_NX),y)
-NUTTXLIBS += graphics/libgraphics$(LIBEXT)
-endif
+# LINKLIBS derives from NUTTXLIBS and is simply the same list with the subdirectory removed
+
+LINKLIBS = $(patsubst lib/,,$(NUTTXLIBS))
 
 # This is the name of the final target (relative to the top level directorty)
 
@@ -448,52 +449,97 @@ check_context:
 libc/libkc$(LIBEXT): context
 	$(Q) $(MAKE) -C libc TOPDIR="$(TOPDIR)" libkc$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libkc$(LIBEXT): libc/libkc$(LIBEXT)
+	$(Q) install libc/libkc$(LIBEXT) lib/libkc$(LIBEXT)
+
 sched/libsched$(LIBEXT): context
 	$(Q) $(MAKE) -C sched TOPDIR="$(TOPDIR)" libsched$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libsched$(LIBEXT): sched/libsched$(LIBEXT)
+	$(Q) install sched/libsched$(LIBEXT) lib/libsched$(LIBEXT)
+
 $(ARCH_SRC)/libarch$(LIBEXT): context
 	$(Q) $(MAKE) -C $(ARCH_SRC) TOPDIR="$(TOPDIR)" libarch$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libarch$(LIBEXT): $(ARCH_SRC)/libarch$(LIBEXT)
+	$(Q) install $(ARCH_SRC)/libarch$(LIBEXT) lib/libarch$(LIBEXT)
+
 net/libnet$(LIBEXT): context
 	$(Q) $(MAKE) -C net TOPDIR="$(TOPDIR)" libnet$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libnet$(LIBEXT): net/libnet$(LIBEXT)
+	$(Q) install net/libnet$(LIBEXT) lib/libnet$(LIBEXT)
+
 fs/libfs$(LIBEXT): context
 	$(Q) $(MAKE) -C fs TOPDIR="$(TOPDIR)" libfs$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libfs$(LIBEXT): fs/libfs$(LIBEXT)
+	$(Q) install fs/libfs$(LIBEXT) lib/libfs$(LIBEXT)
+
 drivers/libdrivers$(LIBEXT): context
 	$(Q) $(MAKE) -C drivers TOPDIR="$(TOPDIR)" libdrivers$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libdrivers$(LIBEXT): drivers/libdrivers$(LIBEXT)
+	$(Q) install drivers/libdrivers$(LIBEXT) lib/libdrivers$(LIBEXT)
+
 binfmt/libbinfmt$(LIBEXT): context
 	$(Q) $(MAKE) -C binfmt TOPDIR="$(TOPDIR)" libbinfmt$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libbinfmt$(LIBEXT): binfmt/libbinfmt$(LIBEXT)
+	$(Q) install binfmt/libbinfmt$(LIBEXT) lib/libbinfmt$(LIBEXT)
+
 graphics/libgraphics$(LIBEXT): context
 	$(Q) $(MAKE) -C graphics TOPDIR="$(TOPDIR)" libgraphics$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libgraphics$(LIBEXT): graphics/libgraphics$(LIBEXT)
+	$(Q) install graphics/libgraphics$(LIBEXT) lib/libgraphics$(LIBEXT)
+
 syscall/libstubs$(LIBEXT): context
 	$(Q) $(MAKE) -C syscall TOPDIR="$(TOPDIR)" libstubs$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libstubs$(LIBEXT): syscall/libstubs$(LIBEXT)
+	$(Q) install syscall/libstubs$(LIBEXT) lib/libstubs$(LIBEXT)
+
 # Possible user-mode builds
 
 libc/libuc$(LIBEXT): context
 	$(Q) $(MAKE) -C libc TOPDIR="$(TOPDIR)" libuc$(LIBEXT)
 
+lib/libuc$(LIBEXT): libc/libuc$(LIBEXT)
+	$(Q) install libc/libuc$(LIBEXT) lib/libuc$(LIBEXT)
+
 libxx/libcxx$(LIBEXT): context
 	$(Q) $(MAKE) -C libxx TOPDIR="$(TOPDIR)" libcxx$(LIBEXT)
 
+lib/libcxx$(LIBEXT): libxx/libcxx$(LIBEXT)
+	$(Q) install libxx/libcxx$(LIBEXT) lib/libcxx$(LIBEXT)
+
 mm/libmm$(LIBEXT): context
 	$(Q) $(MAKE) -C mm TOPDIR="$(TOPDIR)" libmm$(LIBEXT) EXTRADEFINES=$(KDEFINE)
 
+lib/libmm$(LIBEXT): mm/libmm$(LIBEXT)
+	$(Q) install mm/libmm$(LIBEXT) lib/libmm$(LIBEXT)
+
 $(APPDIR)/libapps$(LIBEXT): context
 	$(Q) $(MAKE) -C $(APPDIR) TOPDIR="$(TOPDIR)" libapps$(LIBEXT)
 
+lib/libapps$(LIBEXT): $(APPDIR)/libapps$(LIBEXT)
+	$(Q) install $(APPDIR)/libapps$(LIBEXT) lib/libapps$(LIBEXT)
+
 syscall/libproxies$(LIBEXT): context
 	$(Q) $(MAKE) -C syscall TOPDIR="$(TOPDIR)" libproxies$(LIBEXT)
 
+lib/libproxies$(LIBEXT): syscall/libproxies$(LIBEXT)
+	$(Q) install syscall/libproxies$(LIBEXT) lib/libproxies$(LIBEXT)
+
 # Possible non-kernel builds
 
 libc/libc$(LIBEXT): context
 	$(Q) $(MAKE) -C libc TOPDIR="$(TOPDIR)" libc$(LIBEXT)
 
+lib/libc$(LIBEXT): libc/libc$(LIBEXT)
+	$(Q) install libc/libc$(LIBEXT) lib/libc$(LIBEXT)
+
 # pass1 and pass2
 #
 # If the 2 pass build option is selected, then this pass1 target is
diff --git a/README.txt b/README.txt
index c6138d1fdd..528b7897e5 100644
--- a/README.txt
+++ b/README.txt
@@ -842,6 +842,8 @@ nuttx
  |       `- README.txt
  |- graphics/
  |   `- README.txt
+ |- lib/
+ |   `- README.txt
  |- libc/
  |   `- README.txt
  |- libxx/
diff --git a/lib/Makefile b/lib/Makefile
new file mode 100644
index 0000000000..d4e24124a0
--- /dev/null
+++ b/lib/Makefile
@@ -0,0 +1,45 @@
+############################################################################
+# lib/Makefile
+#
+#   Copyright (C) 2012 Gregory Nutt. All rights reserved.
+#   Author: Gregory Nutt <gnutt@nuttx.org>
+#
+# Redistribution and use in source and binary forms, with or without
+# modification, are permitted provided that the following conditions
+# are met:
+#
+# 1. Redistributions of source code must retain the above copyright
+#    notice, this list of conditions and the following disclaimer.
+# 2. Redistributions in binary form must reproduce the above copyright
+#    notice, this list of conditions and the following disclaimer in
+#    the documentation and/or other materials provided with the
+#    distribution.
+# 3. Neither the name NuttX nor the names of its contributors may be
+#    used to endorse or promote products derived from this software
+#    without specific prior written permission.
+#
+# THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+# "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+# LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
+# FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE
+# COPYRIGHT OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT,
+# INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING,
+# BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS
+# OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED
+# AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT
+# LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN
+# ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE
+# POSSIBILITY OF SUCH DAMAGE.
+#
+###########################################################################
+
+-include $(TOPDIR)/Make.defs
+
+all:
+
+depend:
+
+clean:
+	@rm -f *$(LIBEXT)
+
+distclean: clean
diff --git a/lib/README.txt b/lib/README.txt
new file mode 100644
index 0000000000..f742b9a243
--- /dev/null
+++ b/lib/README.txt
@@ -0,0 +1,6 @@
+lib/ README File
+================
+
+This directory is reserved for libraries generated during the NuttX build process
+
+
diff --git a/libc/Makefile b/libc/Makefile
index 318816ba71..da582cdae1 100644
--- a/libc/Makefile
+++ b/libc/Makefile
@@ -78,7 +78,7 @@ $(AOBJS): %$(OBJEXT): %.S
 $(COBJS): %$(OBJEXT): %.c
 	$(call COMPILE, $<, $@)
 
-$(BIN):	$(OBJS)
+$(BIN): $(OBJS)
 	@( for obj in $(OBJS) ; do \
 		$(call ARCHIVE, $@, $${obj}); \
 	done ; )