diff --git a/.gitignore b/.gitignore
index f3d74a9a..f09c5c0a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,2 +1,22 @@
+# Generic
+
 *.pyc
 *~
+Makefile
+Makefile.in
+
+# Absolute
+
+aclocal.m4
+autom4te.cache
+config.h
+config.h.in
+config.log
+config.status
+configure
+install-sh
+missing
+py-compile
+stamp-h1
+
+sugar/__installed__.py
diff --git a/sugar/browser/AddressItem.py b/activities/browser/AddressItem.py
similarity index 100%
rename from sugar/browser/AddressItem.py
rename to activities/browser/AddressItem.py
diff --git a/sugar/browser/BrowserActivity.py b/activities/browser/BrowserActivity.py
similarity index 95%
rename from sugar/browser/BrowserActivity.py
rename to activities/browser/BrowserActivity.py
index d2eeb416..662313f9 100644
--- a/sugar/browser/BrowserActivity.py
+++ b/activities/browser/BrowserActivity.py
@@ -6,13 +6,14 @@ pygtk.require('2.0')
 import gtk
 import geckoembed
 
-from sugar.shell import activity
-from sugar.browser import NotificationBar
-from sugar.browser import NavigationToolbar
+from sugar.activity import activity
 from sugar.presence.PresenceService import PresenceService
 from sugar.p2p.model.LocalModel import LocalModel
 from sugar.p2p.model.RemoteModel import RemoteModel
 
+from NotificationBar import NotificationBar
+from NavigationToolbar import NavigationToolbar
+
 _BROWSER_ACTIVITY_TYPE = "_web_olpc._udp"
 _SERVICE_URI_TAG = "URI"
 _SERVICE_TITLE_TAG = "Title"
@@ -83,7 +84,7 @@ class BrowserActivity(activity.Activity):
 
 		vbox = gtk.VBox()
 
-		self._notif_bar = NotificationBar.NotificationBar()
+		self._notif_bar = NotificationBar()
 		vbox.pack_start(self._notif_bar, False)
 		self._notif_bar.connect('action', self.__notif_bar_action_cb)
 
@@ -94,7 +95,7 @@ class BrowserActivity(activity.Activity):
 		self.embed.show()
 		self.embed.load_address(self.uri)
 		
-		nav_toolbar = NavigationToolbar.NavigationToolbar(self)
+		nav_toolbar = NavigationToolbar(self)
 		vbox.pack_start(nav_toolbar, False)
 		nav_toolbar.show()
 
diff --git a/sugar/browser/BrowserShell.py b/activities/browser/BrowserShell.py
similarity index 96%
rename from sugar/browser/BrowserShell.py
rename to activities/browser/BrowserShell.py
index a9687724..c1e0c44c 100644
--- a/sugar/browser/BrowserShell.py
+++ b/activities/browser/BrowserShell.py
@@ -6,10 +6,10 @@ import gtk
 import gobject
 
 import sugar.env
-
-from sugar.browser.BrowserActivity import BrowserActivity
 from sugar.presence import Service
 
+from BrowserActivity import BrowserActivity
+
 class BrowserShell(dbus.service.Object):
 	def __init__(self, bus_name, object_path = '/com/redhat/Sugar/Browser'):
 		dbus.service.Object.__init__(self, bus_name, object_path)
diff --git a/sugar/browser/Makefile.am b/activities/browser/Makefile.am
similarity index 100%
rename from sugar/browser/Makefile.am
rename to activities/browser/Makefile.am
diff --git a/sugar/browser/NavigationToolbar.py b/activities/browser/NavigationToolbar.py
similarity index 96%
rename from sugar/browser/NavigationToolbar.py
rename to activities/browser/NavigationToolbar.py
index e9cc1c5b..bf8c96b1 100644
--- a/sugar/browser/NavigationToolbar.py
+++ b/activities/browser/NavigationToolbar.py
@@ -2,7 +2,7 @@ import pygtk
 pygtk.require('2.0')
 import gtk
 
-from sugar.browser.AddressItem import AddressItem
+from AddressItem import AddressItem
 
 class NavigationToolbar(gtk.Toolbar):
 	def __init__(self, browser):
diff --git a/sugar/browser/NotificationBar.py b/activities/browser/NotificationBar.py
similarity index 100%
rename from sugar/browser/NotificationBar.py
rename to activities/browser/NotificationBar.py
diff --git a/sugar/browser/__init__.py b/activities/browser/__init__.py
similarity index 100%
rename from sugar/browser/__init__.py
rename to activities/browser/__init__.py
diff --git a/activities/browser/browser.activity b/activities/browser/browser.activity
new file mode 100644
index 00000000..7aba61fc
--- /dev/null
+++ b/activities/browser/browser.activity
@@ -0,0 +1,2 @@
+[Activity]
+python_class = browser
diff --git a/sugar/browser/browser.py b/activities/browser/browser.py
similarity index 88%
rename from sugar/browser/browser.py
rename to activities/browser/browser.py
index b486bf36..bdfa2bd6 100755
--- a/sugar/browser/browser.py
+++ b/activities/browser/browser.py
@@ -6,9 +6,9 @@ import gtk
 import dbus
 
 import sugar.env
-
 from sugar.session.LogWriter import LogWriter
-from sugar.browser.BrowserShell import BrowserShell
+
+from BrowserShell import BrowserShell
 
 log_writer = LogWriter("Web")
 log_writer.start()
diff --git a/sugar/browser/browser.rc b/activities/browser/browser.rc
similarity index 100%
rename from sugar/browser/browser.rc
rename to activities/browser/browser.rc
diff --git a/sugar/browser/fold.png b/activities/browser/fold.png
similarity index 100%
rename from sugar/browser/fold.png
rename to activities/browser/fold.png
diff --git a/sugar/browser/unfold.png b/activities/browser/unfold.png
similarity index 100%
rename from sugar/browser/unfold.png
rename to activities/browser/unfold.png
diff --git a/configure.ac b/configure.ac
index 6ed84b9f..df8922f7 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,4 +1,4 @@
-AC_INIT([Sugar],[0.9],[],[sugar])
+AC_INIT([Sugar],[0.10],[],[sugar])
 
 AC_PREREQ([2.59])
 
@@ -17,15 +17,15 @@ AC_SUBST(PYGTK_LIBS)
 
 AC_OUTPUT([
 Makefile
+activities/browser/Makefile
 cut-n-paste/Makefile
+shell/Makefile
+shell/session/Makefile
 sugar/Makefile
 sugar/__installed__.py
-sugar/browser/Makefile
 sugar/chat/Makefile
 sugar/chat/sketchpad/Makefile
 sugar/p2p/Makefile
 sugar/p2p/model/Makefile
-sugar/shell/Makefile
-sugar/session/Makefile
 sugar/presence/Makefile
 ])
diff --git a/sugar/shell/Makefile.am b/shell/Makefile.am
similarity index 100%
rename from sugar/shell/Makefile.am
rename to shell/Makefile.am
diff --git a/sugar/shell/Owner.py b/shell/Owner.py
similarity index 100%
rename from sugar/shell/Owner.py
rename to shell/Owner.py
diff --git a/sugar/shell/PresenceWindow.py b/shell/PresenceWindow.py
similarity index 100%
rename from sugar/shell/PresenceWindow.py
rename to shell/PresenceWindow.py
diff --git a/sugar/shell/StartPage.py b/shell/StartPage.py
similarity index 97%
rename from sugar/shell/StartPage.py
rename to shell/StartPage.py
index 08219d5e..4ceeec33 100644
--- a/sugar/shell/StartPage.py
+++ b/shell/StartPage.py
@@ -7,9 +7,10 @@ import cgi
 import xml.sax.saxutils
 import gobject
 
-import google
+from google import google
 from sugar.presence.PresenceService import PresenceService
-from sugar.browser import BrowserActivity
+
+_BROWSER_ACTIVITY_TYPE = "_web_olpc._udp"
 
 _COLUMN_TITLE = 0
 _COLUMN_ADDRESS = 1
@@ -78,7 +79,7 @@ class ActivitiesModel(gtk.ListStore):
 			return
 
 		# Only accept browser activities for now
-		if service.get_type() == BrowserActivity._BROWSER_ACTIVITY_TYPE:
+		if service.get_type() == _BROWSER_ACTIVITY_TYPE:
 			escaped_title = service.get_one_property('Title')
 			escaped_uri = service.get_one_property('URI')
 			if escaped_title and escaped_uri:
@@ -169,7 +170,7 @@ class StartPage(gtk.HBox):
 		self._pservice.connect("buddy-appeared", self._on_buddy_appeared_cb)
 		self._pservice.connect("buddy-disappeared", self._on_buddy_disappeared_cb)
 		self._pservice.start()
-		self._pservice.track_service_type(BrowserActivity._BROWSER_ACTIVITY_TYPE)
+		self._pservice.track_service_type(_BROWSER_ACTIVITY_TYPE)
 		if self._pservice.get_owner():
 			self._on_buddy_appeared_cb(self._pservice, self._pservice.get_owner())
 
diff --git a/sugar/shell/WindowManager.py b/shell/WindowManager.py
similarity index 100%
rename from sugar/shell/WindowManager.py
rename to shell/WindowManager.py
diff --git a/sugar/shell/__init__.py b/shell/__init__.py
similarity index 100%
rename from sugar/shell/__init__.py
rename to shell/__init__.py
diff --git a/cut-n-paste/GoogleSOAPFacade.py b/shell/google/GoogleSOAPFacade.py
similarity index 100%
rename from cut-n-paste/GoogleSOAPFacade.py
rename to shell/google/GoogleSOAPFacade.py
diff --git a/cut-n-paste/Makefile.am b/shell/google/Makefile.am
similarity index 62%
rename from cut-n-paste/Makefile.am
rename to shell/google/Makefile.am
index e6085547..89ba29e0 100644
--- a/cut-n-paste/Makefile.am
+++ b/shell/google/Makefile.am
@@ -1,4 +1,4 @@
-cut_n_pastedir = $(pythondir)/cut-n-paste
+cut_n_pastedir = $(datadir)/sugar
 cut_n_paste_PYTHON =		\
 	google.py		\
 	GoogleSOAPFacade.py	\
diff --git a/cut-n-paste/SOAP.py b/shell/google/SOAP.py
similarity index 100%
rename from cut-n-paste/SOAP.py
rename to shell/google/SOAP.py
diff --git a/shell/google/__init__.py b/shell/google/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/cut-n-paste/google.py b/shell/google/google.py
similarity index 100%
rename from cut-n-paste/google.py
rename to shell/google/google.py
diff --git a/sugar/session/Makefile.am b/shell/session/Makefile.am
similarity index 100%
rename from sugar/session/Makefile.am
rename to shell/session/Makefile.am
diff --git a/shell/session/__init__.py b/shell/session/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/sugar/session/session.py b/shell/session/session.py
similarity index 97%
rename from sugar/session/session.py
rename to shell/session/session.py
index ea232c01..2ddc554b 100644
--- a/sugar/session/session.py
+++ b/shell/session/session.py
@@ -6,7 +6,7 @@ import pygtk
 pygtk.require('2.0')
 import gtk
 
-from sugar.shell.shell import Shell
+from shell import Shell
 from sugar import env
 
 class Session:
diff --git a/sugar/shell/shell.py b/shell/shell.py
similarity index 98%
rename from sugar/shell/shell.py
rename to shell/shell.py
index 3e5450cc..18eceeba 100755
--- a/sugar/shell/shell.py
+++ b/shell/shell.py
@@ -9,13 +9,14 @@ import pango
 import gobject
 
 import sugar.util
-from sugar.session.LogWriter import LogWriter
-from sugar.shell.PresenceWindow import PresenceWindow
 from sugar.chat.ChatWindow import ChatWindow
-from sugar.shell.Owner import ShellOwner
-from sugar.shell.StartPage import StartPage
-from sugar.shell.WindowManager import WindowManager
 from sugar.chat.GroupChat import GroupChat
+from sugar.session.LogWriter import LogWriter
+
+from Owner import ShellOwner
+from StartPage import StartPage
+from WindowManager import WindowManager
+from PresenceWindow import PresenceWindow
 
 class ActivityHost(dbus.service.Object):
 
diff --git a/sugar/sugar b/shell/sugar
similarity index 80%
rename from sugar/sugar
rename to shell/sugar
index 1ec9a6a9..ccfdd002 100755
--- a/sugar/sugar
+++ b/shell/sugar
@@ -56,19 +56,15 @@ if not os.environ.has_key("SUGAR_NICK_NAME"):
 	os.environ['SUGAR_NICK_NAME'] = nick
 	os.environ['SUGAR_USER_DIR'] = os.path.expanduser('~/.sugar')
 
-curdir = os.path.dirname(__file__)
-if curdir == '.':
-	basedir = os.path.dirname(os.getcwd())
-else:
-	basedir = os.path.dirname(curdir)
 
-if os.path.isfile(os.path.join(curdir, '__uninstalled__.py')):
-	if basedir == '':
-		print 'Running sugar from current directory...'
-	else:
-		print 'Running sugar from ' + basedir + ' ...'
+curdir = os.path.abspath(os.path.dirname(__file__))
+basedir = os.path.dirname(curdir)
+
+if os.path.isfile(os.path.join(basedir, 'sugar/__uninstalled__.py')):
+	print 'Running sugar from ' + basedir + ' ...'
 	add_to_python_path(basedir)
-	add_to_python_path(os.path.join(basedir, 'cut-n-paste'))
+	add_to_python_path(os.path.join(basedir, 'shell'))
+	add_to_python_path(os.path.join(basedir, 'activities/browser'))
 else:
 	print 'Running the installed sugar...'
 	
@@ -76,7 +72,7 @@ add_to_python_path(os.path.expanduser('~/.sugar/activities'))
 
 print 'Redirecting output to the console, press ctrl+d to open it.'
 	
-from sugar.session.session import Session
+from session.session import Session
 
 session = Session()
 session.start()
diff --git a/sugar/__uninstalled__.py b/sugar/__uninstalled__.py
index 4813b164..286a7357 100644
--- a/sugar/__uninstalled__.py
+++ b/sugar/__uninstalled__.py
@@ -1,5 +1,5 @@
 import os
 
 data_basedir = os.path.dirname(os.path.dirname(__file__))
-data_dirs = [ 'sugar/browser', 'sugar/chat' ]
+data_dirs = [ 'activities/browser' ]
 activities_dir = ''
diff --git a/sugar/activity/__init__.py b/sugar/activity/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/sugar/shell/activity.py b/sugar/activity/activity.py
similarity index 100%
rename from sugar/shell/activity.py
rename to sugar/activity/activity.py
diff --git a/sugar/browser/browser.activity b/sugar/browser/browser.activity
deleted file mode 100644
index bc120b76..00000000
--- a/sugar/browser/browser.activity
+++ /dev/null
@@ -1,2 +0,0 @@
-[Activity]
-python_class = sugar/browser/browser
diff --git a/sugar/p2p/model/Makefile.am b/sugar/p2p/model/Makefile.am
index aa113c88..29253451 100644
--- a/sugar/p2p/model/Makefile.am
+++ b/sugar/p2p/model/Makefile.am
@@ -3,5 +3,4 @@ sugar_PYTHON =			\
 	__init__.py		\
 	AbstractModel.py	\
 	LocalModel.py		\
-	RemoteModel.py		\
-	Store.py
+	RemoteModel.py