diff --git a/reactos/tools/rbuild/exception.cpp b/reactos/tools/rbuild/exception.cpp
new file mode 100644
index 00000000000..ec5a833645a
--- /dev/null
+++ b/reactos/tools/rbuild/exception.cpp
@@ -0,0 +1,50 @@
+#ifdef _MSC_VER
+#pragma warning ( disable : 4786 ) // identifier was truncated to '255' characters in the debug information
+#endif//_MSC_VER
+
+#include <stdarg.h>
+#include "rbuild.h"
+
+Exception::Exception()
+{
+}
+
+Exception::Exception(string message)
+{
+	Message = message;
+}
+
+Exception::Exception(const char* format,
+                     ...)
+{
+	va_list args;
+	va_start(args,
+	         format);
+	Message = ssvprintf(format,
+	                    args);
+	va_end(args);
+}
+
+void Exception::SetMessage(const char* message,
+                           va_list args)
+{
+	Message = ssvprintf(message,
+	                    args);
+}
+
+
+FileNotFoundException::FileNotFoundException(string filename)
+	: Exception ( "File '%s' not found.", filename.c_str() )
+{
+	Filename = filename;
+}
+
+
+InvalidBuildFileException::InvalidBuildFileException(const char* message,
+                                                     ...)
+{
+	va_list args;
+	va_start( args, message);
+	SetMessage(message, args);
+	va_end(args);
+}
diff --git a/reactos/tools/rbuild/exception.h b/reactos/tools/rbuild/exception.h
new file mode 100644
index 00000000000..94a47e8cc48
--- /dev/null
+++ b/reactos/tools/rbuild/exception.h
@@ -0,0 +1,37 @@
+#ifndef __EXCEPTION_H
+#define __EXCEPTION_H
+
+#include <string>
+
+using std::string;
+
+class Exception
+{
+public:
+	Exception(string message);
+	Exception(const char* format,
+	          ...);
+	string Message;
+protected:
+	Exception();
+	void SetMessage(const char* message,
+	                va_list args);
+};
+
+
+class FileNotFoundException : public Exception
+{
+public:
+	FileNotFoundException(string filename);
+	string Filename;
+};
+
+
+class InvalidBuildFileException : public Exception
+{
+public:
+	InvalidBuildFileException(const char* message,
+	                          ...);
+};
+
+#endif /* __EXCEPTION_H */
diff --git a/reactos/tools/rbuild/makefile b/reactos/tools/rbuild/makefile
index 1d94f5babd9..8a0ae32ff24 100644
--- a/reactos/tools/rbuild/makefile
+++ b/reactos/tools/rbuild/makefile
@@ -4,7 +4,12 @@ TARGET = rbuild$(EXE_POSTFIX)
 
 all: $(TARGET)
 
-BASE_OBJECTS = xml.o project.o module.o
+BASE_OBJECTS = \
+	exception.o \
+	module.o \
+	project.o \
+	ssprintf.o \
+	xml.o
 
 OBJECTS = $(BASE_OBJECTS) rbuild.o
 
diff --git a/reactos/tools/rbuild/project.cpp b/reactos/tools/rbuild/project.cpp
index bfd60363753..abc6d14a2ce 100644
--- a/reactos/tools/rbuild/project.cpp
+++ b/reactos/tools/rbuild/project.cpp
@@ -7,12 +7,44 @@
 using std::string;
 using std::vector;
 
+Project::Project(string filename)
+{
+	if ( !xmlfile.open ( filename ) )
+		throw FileNotFoundException ( filename );
+	ReadXml();
+}
+
 Project::~Project()
 {
 	for ( size_t i = 0; i < modules.size(); i++ )
 		delete modules[i];
 }
 
+void Project::ReadXml()
+{
+	Path path;
+	bool projectFound = false;
+	do
+	{
+		XMLElement* head = XMLParse ( xmlfile, path );
+		if ( !head )
+			throw InvalidBuildFileException ( "Document contains no 'project' tag." );
+
+		if ( head->name == "!--" )
+			continue; // ignore comments
+
+		if ( head->name != "project" )
+		{
+			throw InvalidBuildFileException ( "Expected 'project', got '%s'.",
+			                                  head->name.c_str());
+		}
+
+		this->ProcessXML ( *head, "." );
+		delete head;
+		projectFound = true;
+	} while (!projectFound);
+}
+
 void
 Project::ProcessXML ( const XMLElement& e, const string& path )
 {
diff --git a/reactos/tools/rbuild/rbuild.cpp b/reactos/tools/rbuild/rbuild.cpp
index 87004d2299e..51fff9beb77 100644
--- a/reactos/tools/rbuild/rbuild.cpp
+++ b/reactos/tools/rbuild/rbuild.cpp
@@ -17,40 +17,17 @@ main ( int argc, char** argv )
 {
 	InitWorkingDirectory();
 
-	XMLFile f;
-	Path path;
-	string xml_file ( "ReactOS.xml" );
-	if ( !f.open ( xml_file ) )
+	try
 	{
-		printf ( "couldn't open ReactOS.xml!\n" );
-		return -1;
-	}
-
-	vector<string> xml_dependencies;
-	xml_dependencies.push_back ( xml_file );
-	for ( ;; )
-	{
-		XMLElement* head = XMLParse ( f, path );
-		if ( !head )
-			break; // end of file
-
-		if ( head->name == "!--" )
-			continue; // ignore comments
-
-		if ( head->name != "project" )
-		{
-			printf ( "error: expecting 'project', got '%s'\n", head->name.c_str() );
-			continue;
-		}
-
-		Project* proj = new Project;
-		proj->ProcessXML ( *head, "." );
+		string projectFilename ( "ReactOS.xml" );
+		Project* project = new Project( projectFilename );
 
+		Path path;
 		// REM TODO FIXME actually do something with Project object...
-		printf ( "Found %d modules:\n", proj->modules.size() );
-		for ( size_t i = 0; i < proj->modules.size(); i++ )
+		printf ( "Found %d modules:\n", project->modules.size() );
+		for ( size_t i = 0; i < project->modules.size(); i++ )
 		{
-			Module& m = *proj->modules[i];
+			Module& m = *project->modules[i];
 			printf ( "\t%s in folder: %s\n",
 			         m.name.c_str(),
 			         m.path.c_str() );
@@ -74,10 +51,14 @@ main ( int argc, char** argv )
 				printf ( "\t\t%s\n", m.files[j]->name.c_str() );
 			}
 		}
+	
+		delete project;
 
-		delete proj;
-		delete head;
+		return 0;
+	}
+	catch (Exception& ex)
+	{
+		printf ( ex.Message.c_str() );
+		return 1;
 	}
-
-	return 0;
 }
diff --git a/reactos/tools/rbuild/rbuild.h b/reactos/tools/rbuild/rbuild.h
index d50dcaa362d..e133017a631 100644
--- a/reactos/tools/rbuild/rbuild.h
+++ b/reactos/tools/rbuild/rbuild.h
@@ -1,10 +1,11 @@
 #ifndef __RBUILD_H
 #define __RBUILD_H
 
-#include "XML.h"
-
 #include <string>
 #include <vector>
+#include "ssprintf.h"
+#include "exception.h"
+#include "XML.h"
 
 class Project;
 class Module;
@@ -16,8 +17,12 @@ public:
 	std::string name;
 	std::vector<Module*> modules;
 
-	~Project();
+	Project ( string filename );
+	~Project ();
 	void ProcessXML ( const XMLElement& e, const std::string& path );
+private:
+	void ReadXml ();
+	XMLFile xmlfile;
 };
 
 class Module