diff --git a/include/scan.mk b/include/scan.mk
index 28f526aa33..3d97a4f5c3 100644
--- a/include/scan.mk
+++ b/include/scan.mk
@@ -49,7 +49,7 @@ $(TMP_DIR)/info/.files-$(SCAN_TARGET).mk: $(FILELIST)
 
 -include $(TMP_DIR)/info/.files-$(SCAN_TARGET).mk
 
-$(TARGET_STAMP):
+$(TARGET_STAMP)::
 	( \
 		$(NO_TRACE_MAKE) $(FILELIST); \
 		MD5SUM=$$(cat $(FILELIST) | (md5sum || md5) | awk '{print $$1}'); \
diff --git a/include/toplevel.mk b/include/toplevel.mk
index 63325aa018..4e194bf50a 100644
--- a/include/toplevel.mk
+++ b/include/toplevel.mk
@@ -12,7 +12,12 @@ PREP_MK= OPENWRT_BUILD= QUIET=0
 
 include $(TOPDIR)/include/verbose.mk
 
-REVISION:=$(shell $(TOPDIR)/scripts/getver.sh)
+ifeq ($(SDK),1)
+  include $(TOPDIR)/include/version.mk
+else
+  REVISION:=$(shell $(TOPDIR)/scripts/getver.sh)
+endif
+
 OPENWRTVERSION:=$(RELEASE)$(if $(REVISION), ($(REVISION)))
 export RELEASE
 export REVISION
diff --git a/package/Makefile b/package/Makefile
index 1df4537dba..e618a90b69 100644
--- a/package/Makefile
+++ b/package/Makefile
@@ -10,9 +10,13 @@ curdir:=package
 
 -include $(TMP_DIR)/.packagedeps
 $(curdir)/builddirs:=$(sort $(package-) $(package-y) $(package-m))
-$(curdir)/builddirs-default:=. $(sort $(package-y) $(package-m))
-$(curdir)/builddirs-prereq:=. $(sort $(prereq-y) $(prereq-m))
-$(curdir)/builddirs-install:=. $(sort $(package-y))
+ifeq ($(SDK),1)
+  $(curdir)/builddirs-install:=.
+else
+  $(curdir)/builddirs-default:=. $(sort $(package-y) $(package-m))
+  $(curdir)/builddirs-prereq:=. $(sort $(prereq-y) $(prereq-m))
+  $(curdir)/builddirs-install:=. $(sort $(package-y))
+endif
 
 $(curdir)/install:=$(curdir)/install-cleanup
 
diff --git a/scripts/metadata.pm b/scripts/metadata.pm
index 917fbec079..a220231f0d 100644
--- a/scripts/metadata.pm
+++ b/scripts/metadata.pm
@@ -115,7 +115,7 @@ sub parse_package_metadata($) {
 		/^Preconfig-Default:\s*(.*?)\s*$/ and $preconfig->{default} = $1;
 	}
 	close FILE;
-	return %category;
+	return 1;
 }
 
 1;
diff --git a/target/sdk/Makefile b/target/sdk/Makefile
index a05b7c6281..05ae321616 100644
--- a/target/sdk/Makefile
+++ b/target/sdk/Makefile
@@ -15,27 +15,32 @@ PKG_CPU:=$(shell uname -m)
 
 SDK_NAME:=OpenWrt-SDK-$(BOARD)-for-$(PKG_OS)-$(PKG_CPU)
 SDK_BUILD_DIR:=$(BUILD_DIR)/$(SDK_NAME)
-EXCLUDE_DIRS:=ccache stamp
+EXCLUDE_DIRS:=*/ccache */stamp */man */share */stampfiles */info
 
 all: compile
 
 $(BIN_DIR)/$(SDK_NAME).tar.bz2: clean
 	mkdir -p $(SDK_BUILD_DIR)/dl $(SDK_BUILD_DIR)/package
 	$(CP) $(INCLUDE_DIR) $(SCRIPT_DIR) $(TOPDIR)/docs $(SDK_BUILD_DIR)/
-	$(TAR) -cf - -C $(TOPDIR) --exclude="$(EXCLUDE_DIRS)" staging_dir/$(ARCH) | \
+	$(TAR) -cf - -C $(TOPDIR) $(foreach exclude,$(EXCLUDE_DIRS),--exclude="$(exclude)") --exclude="staging_dir/$(ARCH)" staging_dir | \
 		$(TAR) -xf - -C $(SDK_BUILD_DIR)
-	(cd $(SDK_BUILD_DIR)/staging_dir/$(ARCH); \
-		rm -rf info man share stampfiles; \
-		cd usr; \
-		rm -rf doc info man share; \
-	)
-	$(CP) $(TOPDIR)/rules.mk $(TOPDIR)/.config $(SDK_BUILD_DIR)/
-	$(CP) $(TOPDIR)/package/Makefile $(SDK_BUILD_DIR)/package/
-	$(CP) ./files/Makefile $(SDK_BUILD_DIR)/
-	$(CP) ./files/README.SDK $(SDK_BUILD_DIR)/
-	$(CP) ./files/package/rules.mk $(SDK_BUILD_DIR)/package/
-	echo OPENWRTVERSION:="$(OPENWRTVERSION)" > $(SDK_BUILD_DIR)/.version.mk
-	rm -rf $(SDK_BUILD_DIR)/staging_dir/$(ARCH)/{ccache,stamp}
+	mkdir -p $(SDK_BUILD_DIR)/target/linux
+	$(CP) $(GENERIC_PLATFORM_DIR) $(PLATFORM_DIR) $(SDK_BUILD_DIR)/target/linux/
+	rm -rf \
+		$(SDK_BUILD_DIR)/target/linux/*/files \
+		$(SDK_BUILD_DIR)/target/linux/*/patches
+	$(CP) \
+		$(TOPDIR)/rules.mk \
+		$(TOPDIR)/.config \
+		./files/Makefile \
+		./files/README.SDK \
+		$(SDK_BUILD_DIR)/
+	$(CP) \
+		./files/package/rules.mk \
+		$(TOPDIR)/package/Makefile \
+		$(SDK_BUILD_DIR)/package/
+	echo REVISION:="$(REVISION)" > $(SDK_BUILD_DIR)/include/version.mk
+	find $(SDK_BUILD_DIR) -name .git | $(XARGS) rm -rf
 	find $(SDK_BUILD_DIR) -name .svn | $(XARGS) rm -rf
 	find $(SDK_BUILD_DIR) -name CVS | $(XARGS) rm -rf
 	(cd $(BUILD_DIR); \
diff --git a/target/sdk/files/Makefile b/target/sdk/files/Makefile
index 8b054b447f..f1e0eadbea 100644
--- a/target/sdk/files/Makefile
+++ b/target/sdk/files/Makefile
@@ -1,89 +1,54 @@
 # Makefile for OpenWrt
 #
-# Copyright (C) 2006 by Felix Fietkau <openwrt@nbd.name>
+# Copyright (C) 2007 OpenWrt.org
 #
-# This program is free software; you can redistribute it and/or modify
-# it under the terms of the GNU General Public License as published by
-# the Free Software Foundation; either version 2 of the License, or
-# (at your option) any later version.
-#
-# This program is distributed in the hope that it will be useful,
-# but WITHOUT ANY WARRANTY; without even the implied warranty of
-# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU
-# General Public License for more details.
-#
-# You should have received a copy of the GNU General Public License
-# along with this program; if not, write to the Free Software
-# Foundation, Inc., 59 Temple Place, Suite 330, Boston, MA 02111-1307 USA
+# This is free software, licensed under the GNU General Public License v2.
+# See /LICENSE for more information.
 #
 
-RELEASE:=Kamikaze
-#VERSION:=2.0 # uncomment for final release
+TOPDIR:=${CURDIR}
+LC_ALL:=C
+LANG:=C
+SDK:=1
+export TOPDIR LC_ALL LANG SDK
 
-#--------------------------------------------------------------
-# Just run 'make menuconfig', configure stuff, then run 'make'.
-# You shouldn't need to mess with anything beyond this point...
-#--------------------------------------------------------------
-TOPDIR=${shell pwd}
-export TOPDIR
+world:
 
-DEVELOPER=1
-export DEVELOPER
+include $(TOPDIR)/include/host.mk
 
-SDK=1
-export SDK
+ifneq ($(OPENWRT_BUILD),1)
+  override OPENWRT_BUILD=1
+  export OPENWRT_BUILD
+  include $(TOPDIR)/include/debug.mk
+  include $(TOPDIR)/include/depends.mk
+  include $(TOPDIR)/include/toplevel.mk
+else
+  include rules.mk
+  include $(INCLUDE_DIR)/depends.mk
+  include $(INCLUDE_DIR)/subdir.mk
+  include package/Makefile
 
-export IS_TTY=$(shell tty -s && echo 1 || echo 0)
-include $(TOPDIR)/include/verbose.mk
-
-all: world
-
-define stamp
-tmp/info/.stamp-$(1)-$(shell ls $(2)/*/Makefile $(5) | (md5sum || md5) 2>/dev/null | cut -d' ' -f1)
-endef
-
-STAMP=$(call stamp,packageinfo,package)
-
-$(STAMP):
-	@mkdir -p tmp/info
-	@rm -f tmp/info/.stamp-packageinfo*
+$(package/stamp-compile): $(BUILD_DIR)/.prepared
+$(BUILD_DIR)/.prepared: Makefile
+	@mkdir -p $$(dirname $@)
+	@mkdir -p bin/packages
 	@touch $@
 
-define filedep
-$(foreach FILE,$(shell ls package/*/Makefile),
-tmp/.packageinfo: $(FILE)
-$(FILE):
-	@true
-)
-endef
-
-$(eval $(filedep))
-
-tmp/.packageinfo: $(STAMP)
-	@echo -n Collecting package info... 
-	@$(NO_TRACE_MAKE) -s -f include/scan.mk SCAN_TARGET="packageinfo" SCAN_DIR="package" SCAN_NAME="package" SCAN_DEPS=""
-
-package/%: FORCE
-	@$(NO_TRACE_MAKE) -s tmp/.packageinfo
-	$(MAKE) -C package $(patsubst package/%,%,$@) SDK=1
-
-download: FORCE
-	$(MAKE) package/download
-
-world: FORCE
-	$(MAKE) package/compile
-	-( \
-		cd package; \
-		for configfile in `find . -maxdepth 2 -name Config.in` ; do \
-			$(MAKE) compile -C `dirname $$configfile` ; \
-		done \
-	)
-
 clean: FORCE
-	rm -rf build_* bin
+	rm -rf $(BUILD_DIR) $(BIN_DIR)
 
-distclean: clean
-	rm -rf dl .pkg*
+dirclean: clean
+	rm -rf $(TMP_DIR)
 
-.PHONY: FORCE
-FORCE:
+# check prerequisites before starting to build
+prereq: $(package/stamp-prereq) ;
+
+world: prepare $(package/stamp-compile) FORCE
+	@for configfile in `find package -maxdepth 2 -name Config.in` ; do \
+		$(MAKE) compile -C `dirname $$configfile`; \
+	done
+	@$(MAKE) package/index
+
+.PHONY: clean dirclean prereq prepare world
+
+endif
diff --git a/target/sdk/files/package/rules.mk b/target/sdk/files/package/rules.mk
index 43bdcc8709..7adb2e3797 100644
--- a/target/sdk/files/package/rules.mk
+++ b/target/sdk/files/package/rules.mk
@@ -1,7 +1,13 @@
 # invoke ipkg with configuration in $(STAGING_DIR)/etc/ipkg.conf 
-IPKG := IPKG_INSTROOT=$(TARGET_DIR) IPKG_CONF_DIR=$(IPKG_CONF) $(SCRIPT_DIR)/ipkg -force-defaults -force-depends
+IPKG := IPKG_INSTROOT=$(TARGET_DIR) IPKG_CONF_DIR=$(STAGING_DIR)/etc $(SCRIPT_DIR)/ipkg -force-defaults -force-depends
 IPKG_STATE_DIR := $(TARGET_DIR)/usr/lib/ipkg
 
+# invoke ipkg-build with some default options
+IPKG_BUILD := PATH="$(TARGET_PATH)" ipkg-build -c -o root -g root
+
+# where to build (and put) .ipk packages
+IPKG_TARGET_DIR := $(PACKAGE_DIR)
+
 ifneq ($(DUMP),)
 dump:
 .PHONY: dump
@@ -15,7 +21,7 @@ INFO_$(1):=$(IPKG_STATE_DIR)/info/$(2).list
 ifneq ($(BR2_PACKAGE_$(1)),)
 compile-targets: $$(IPKG_$(1))
 endif
-ifneq ($(DEVELOPER),)
+ifneq ($(DEVELOPER)$(SDK),)
 compile-targets: $$(IPKG_$(1))
 endif
 ifeq ($(BR2_PACKAGE_$(1)),y)