diff --git a/reactos/ntoskrnl/include/internal/ps.h b/reactos/ntoskrnl/include/internal/ps.h
index 1933b7a7766..924061e8596 100644
--- a/reactos/ntoskrnl/include/internal/ps.h
+++ b/reactos/ntoskrnl/include/internal/ps.h
@@ -16,7 +16,7 @@
  *  along with this program; if not, write to the Free Software
  *  Foundation, Inc., 675 Mass Ave, Cambridge, MA 02139, USA.
  */
-/* $Id: ps.h,v 1.76 2004/11/27 19:41:55 hbirr Exp $
+/* $Id: ps.h,v 1.77 2004/12/05 15:42:41 weiden Exp $
  *
  * FILE:            ntoskrnl/ke/kthread.c
  * PURPOSE:         Process manager definitions
@@ -48,8 +48,6 @@ struct _EJOB;
 #define KeGetCurrentProcessorNumber() (KeGetCurrentKPCR()->ProcessorNumber)
 #endif
 
-extern HANDLE SystemProcessHandle;
-
 extern LCID PsDefaultThreadLocaleId;
 extern LCID PsDefaultSystemLocaleId;
 
diff --git a/reactos/ntoskrnl/ldr/init.c b/reactos/ntoskrnl/ldr/init.c
index 4e1bfdae759..12e0acbbf27 100644
--- a/reactos/ntoskrnl/ldr/init.c
+++ b/reactos/ntoskrnl/ldr/init.c
@@ -16,7 +16,7 @@
  *  along with this program; if not, write to the Free Software
  *  Foundation, Inc., 675 Mass Ave, Cambridge, MA 02139, USA.
  */
-/* $Id: init.c,v 1.49 2004/11/21 21:09:42 weiden Exp $
+/* $Id: init.c,v 1.50 2004/12/05 15:42:42 weiden Exp $
  *
  * PROJECT:         ReactOS kernel
  * FILE:            ntoskrnl/ldr/init.c
@@ -375,6 +375,7 @@ LdrLoadInitialProcess(PHANDLE ProcessHandle,
   ULONG ResultLength;
   PVOID ImageBaseAddress;
   ULONG InitialStack[5];
+  HANDLE SystemProcessHandle;
   NTSTATUS Status;
 
   /* Get the absolute path to smss.exe. */
@@ -404,6 +405,17 @@ LdrLoadInitialProcess(PHANDLE ProcessHandle,
       return(Status);
     }
 
+  Status = ObCreateHandle(PsGetCurrentProcess(),
+                          PsInitialSystemProcess,
+                          PROCESS_CREATE_PROCESS | PROCESS_CREATE_THREAD | PROCESS_QUERY_INFORMATION,
+                          FALSE,
+                          &SystemProcessHandle);
+  if(!NT_SUCCESS(Status))
+  {
+    DPRINT1("Failed to create a handle for the system process!\n");
+    return Status;
+  }
+
   DPRINT("Creating process\n");
   Status = NtCreateProcess(ProcessHandle,
 			   PROCESS_ALL_ACCESS,
@@ -414,6 +426,7 @@ LdrLoadInitialProcess(PHANDLE ProcessHandle,
 			   NULL,
 			   NULL);
   NtClose(SectionHandle);
+  NtClose(SystemProcessHandle);
   if (!NT_SUCCESS(Status))
     {
       DPRINT("NtCreateProcess() failed (Status %lx)\n", Status);
diff --git a/reactos/ntoskrnl/ps/process.c b/reactos/ntoskrnl/ps/process.c
index 7c6ab94bf6a..cfaed3e18c6 100644
--- a/reactos/ntoskrnl/ps/process.c
+++ b/reactos/ntoskrnl/ps/process.c
@@ -1,4 +1,4 @@
-/* $Id: process.c,v 1.157 2004/11/24 18:13:18 navaraf Exp $
+/* $Id: process.c,v 1.158 2004/12/05 15:42:42 weiden Exp $
  *
  * COPYRIGHT:         See COPYING in the top level directory
  * PROJECT:           ReactOS kernel
@@ -18,7 +18,7 @@
 /* GLOBALS ******************************************************************/
 
 PEPROCESS EXPORTED PsInitialSystemProcess = NULL;
-HANDLE SystemProcessHandle = NULL;
+PEPROCESS PsIdleProcess = NULL;
 
 POBJECT_TYPE EXPORTED PsProcessType = NULL;
 
@@ -345,12 +345,6 @@ PsInitProcessManagment(VOID)
    strcpy(PsInitialSystemProcess->ImageFileName, "SYSTEM");
 
    SepCreateSystemProcessToken(PsInitialSystemProcess);
-
-   ObCreateHandle(PsInitialSystemProcess,
-		  PsInitialSystemProcess,
-		  PROCESS_ALL_ACCESS,
-		  FALSE,
-		  &SystemProcessHandle);
 }
 
 VOID STDCALL
@@ -583,14 +577,35 @@ PsCreateSystemProcess(PHANDLE ProcessHandle,
 		      ACCESS_MASK DesiredAccess,
 		      POBJECT_ATTRIBUTES ObjectAttributes)
 {
-   return NtCreateProcess(ProcessHandle,
-			  DesiredAccess,
-			  ObjectAttributes,
-			  SystemProcessHandle,
-			  FALSE,
-			  NULL,
-			  NULL,
-			  NULL);
+   HANDLE SystemProcessHandle;
+   NTSTATUS Status;
+   
+   /* FIXME - what about security? should there be any privilege checks or something
+              security related? */
+   
+   Status = ObCreateHandle(PsGetCurrentProcess(),
+                           PsInitialSystemProcess,
+                           PROCESS_CREATE_PROCESS | PROCESS_CREATE_THREAD | PROCESS_QUERY_INFORMATION,
+                           FALSE,
+                           &SystemProcessHandle);
+   if(!NT_SUCCESS(Status))
+   {
+      DPRINT1("Failed to create a handle for the system process!\n");
+      return Status;
+   }
+   
+   Status = NtCreateProcess(ProcessHandle,
+			    DesiredAccess,
+			    ObjectAttributes,
+			    SystemProcessHandle,
+			    FALSE,
+			    NULL,
+			    NULL,
+			    NULL);
+
+   NtClose(SystemProcessHandle);
+   
+   return Status;
 }
 
 NTSTATUS STDCALL