diff --git a/src/CHANGELOG b/src/CHANGELOG
index 9298cca6e..e84aa700e 100644
--- a/src/CHANGELOG
+++ b/src/CHANGELOG
@@ -622,8 +622,8 @@ ECLS 0.1a
 * SETF revised. Now it, and all accessors are implemented as macros
   with no special support from the interpreter.
 
-ECLS 0.1b
-=========
+ECLS 0.2
+========
 
 * Due to human errors, the bytecompiler shipped with 0.1a was not the
   finished version. In 0.1b we shipped a more polished files. Some of
@@ -661,6 +661,28 @@ ECLS 0.1b
   designators, i.e. (nstring-upcase "aa" :start nil :end nil) causes
   an error.
 
+ECLS 0.3
+========
+
+* Add name mangling to ECLS:
+  - In the preprocessed files (*.d) @package::symbol can be used to
+    refer to a lisp function, while @'package::symbol can be used to
+    refer to a lisp symbol. The preprocessor translates these names
+    into valid C names.
+  - Function SI::MANGLE-NAME returns the C name for a lisp symbol
+    or function, and tells whether that symbol has been defined as
+    external C function already.
+  - A new proclamation
+	(proclaim '(si::c-export-fname union))
+    advises the lisp->C translator to produce a C function with
+    mangle named (clLunion in this case), that can be directly called
+    from other translated files and from user written code.
+  - The dynamic loader can now reexport symbols from object files,
+    so that they become available to other files.
+
+* Remove variable si::*system-directory* and use logical hostname
+  "SYS:" instead.
+
 
 TODO:
 =====
diff --git a/src/bare.lsp.in b/src/bare.lsp.in
index 119faf1a5..31dba6187 100644
--- a/src/bare.lsp.in
+++ b/src/bare.lsp.in
@@ -24,10 +24,10 @@
 (load "cmp/load.lsp")
 
 ;;;
-;;; * By redefining *system-directory* ECLS will be able to
+;;; * By redefining "SYS:" ECLS will be able to
 ;;;   find headers and libraries in the build directory.
 ;;;
-(setq si::*system-directory* (namestring (sys::chdir "./")))
+(si::pathname-translations "SYS" '(("*.*" "./*.*")))
 
 ;;;
 ;;; * Add include path to not yet installed headers
diff --git a/src/c/all_symbols.d b/src/c/all_symbols.d
index 35075c002..e654e9ae0 100644
--- a/src/c/all_symbols.d
+++ b/src/c/all_symbols.d
@@ -151,7 +151,6 @@ const struct symbol_info all_symbols[] = {
 {&siVinhibit_macro_special, "*INHIBIT-MACRO-SPECIAL*", SI_SPECIAL},
 
 /* main.c */
-{&siVsystem_directory, "*SYSTEM-DIRECTORY*", SI_SPECIAL},
 {&clVfeatures, "*FEATURES*", CL_SPECIAL},
 
 /* num_rand.c */
diff --git a/src/c/cinit.d b/src/c/cinit.d
index c21bbb9cb..fa6b47b05 100644
--- a/src/c/cinit.d
+++ b/src/c/cinit.d
@@ -47,7 +47,7 @@ init_lisp_libs(void)
 	SYM_VAL(@'*package*') = system_package;
 	SYM_VAL(@'*features*') = CONS(make_keyword("ECLS-MIN"), SYM_VAL(@'*features*'));
 #ifdef RSYM
-	SYM_VAL(@'si::*symbol_table*') = make_simple_string("ecls_min.sym");
+	SYM_VAL(@'si::*symbol_table*') = make_simple_string("SYS:ecls_min.sym");
 #endif
 	make_si_function("TOP-LEVEL", @si::simple-toplevel);
 }
diff --git a/src/c/load.d b/src/c/load.d
index 8f8658b6e..af68809be 100644
--- a/src/c/load.d
+++ b/src/c/load.d
@@ -194,8 +194,7 @@ build_symbol_table()
 {
    cl_object file;
    const char *tmpfile;
-   file = namestring(@merge-pathnames(2, SYM_VAL(@'si::*symbol-table*'),
-				      SYM_VAL(@'si::*system-directory*')));
+   file = coerce_to_filename(SYM_VAL(@'si::*symbol-table*'));
    tmpfile = file->string.self;
    if (!symbol_table_built)
      if (read_special_symbols(tmpfile) < 0)
@@ -203,15 +202,6 @@ build_symbol_table()
 }
 #endif
 
-const char *
-system_directory()
-{
-  cl_object dir = SYM_VAL(@'si::*system-directory*');
-  while (type_of(dir) != t_string)
-    FEerror("The value of sys::*system-directory* is not a string, ~A", 1, dir);
-  return dir->string.self;
-}
-
 /* ---------------------------------------------------------------------- */
 #if 0
 
@@ -253,6 +243,6 @@ init_load(void)
 				CONS(Cnil, load_source));
 
 #ifdef RSYM
-  SYM_VAL(@'si::*symbol-table*') = make_simple_string("ecl.sym");
+  SYM_VAL(@'si::*symbol-table*') = make_simple_string("SYS:ecls.sym");
 #endif
 }
diff --git a/src/c/main.d b/src/c/main.d
index dfbfb31fd..9a24ae04b 100644
--- a/src/c/main.d
+++ b/src/c/main.d
@@ -44,7 +44,6 @@ int data_start = (int)&data_start;
 /******************************* EXPORTS ******************************/
 
 cl_object clVfeatures;
-cl_object @'si::*system-directory*';
 const char *ecl_self;
 
 /******************************* ------- ******************************/
@@ -196,8 +195,6 @@ init_main(void)
 
 	make_ordinary("LISP-IMPLEMENTATION-VERSION");
 
-	SYM_VAL(@'si::*system-directory*') = make_simple_string("./");
-
 	{ cl_object features;
 	  features =
 	    CONS(make_keyword("ECLS"),
diff --git a/src/c/pathname.d b/src/c/pathname.d
index ecf552069..6e9b74c6f 100644
--- a/src/c/pathname.d
+++ b/src/c/pathname.d
@@ -1181,6 +1181,10 @@ translate_logical_pathname(cl_object source)
 void
 init_pathname(void)
 {
+	register_root(&pathname_translations);
 	SYM_VAL(@'*default-pathname-defaults*') =
 	  make_pathname(Cnil, Cnil, Cnil, Cnil, Cnil, Cnil);
+	@si::pathname-translations(2,make_simple_string("SYS"),
+				   list(1,list(2,make_simple_string("*.*"),
+					       make_simple_string("./*.*"))));
 }
diff --git a/src/clx/defsys.lsp.in b/src/clx/defsys.lsp.in
index ab9bf375a..e11de9b0c 100644
--- a/src/clx/defsys.lsp.in
+++ b/src/clx/defsys.lsp.in
@@ -58,7 +58,7 @@
 					    display)         (display))))
 ;;
  :source-directory "@srcdir@/"
- :fasl-directory "./"
- :library-directory "../")
+ :fasl-directory "@builddir@/clx/"
+ :library-directory "@builddir@/")
 ;;
 ;;; ----------------------------------------------------------------------
diff --git a/src/cmp/cmpmain.lsp b/src/cmp/cmpmain.lsp
index 9210ab78e..545cb83a4 100644
--- a/src/cmp/cmpmain.lsp
+++ b/src/cmp/cmpmain.lsp
@@ -84,12 +84,12 @@ init_~A(cl_object)
    (format nil
 	   *ld-format*
 	   *cc* (namestring o-pathname)
-	   (namestring sys::*system-directory*)
+	   (namestring (translate-logical-pathname "SYS:"))
 	   options *ld-flags*)))
 
 (defun rsym (name)
   (let ((output (make-pathname :name (pathname-name name) :type "sym"))
-	(rsym (make-pathname :name "rsym" :defaults sys::*system-directory*)))
+	(rsym (translate-logical-pathname "SYS:rsym")))
     (cond ((not (probe-file rsym))
 	   (error "rsym executable not found"))
 	  ((not (probe-file name))
@@ -124,7 +124,7 @@ init_lisp_libs(void)
 	       (error "compiler::build-ecls wrong argument ~A" item))))
       (format c-file "
 #ifdef RSYM
-	SYM_VAL(siVsymbol_table) = make_simple_string(\"~A.sym\");
+	SYM_VAL(siVsymbol_table) = make_simple_string(\"SYS:~A.sym\");
 #endif
 	return;~%}~%" name))
     (compiler-cc c-name o-name)
@@ -468,7 +468,7 @@ Cannot compile ~a."
    (format nil
 	   *cc-format*
 	   *cc* *cc-flags* (>= *speed* 2) *cc-optimize*
-	   (namestring sys::*system-directory*)
+	   (namestring (translate-logical-pathname "SYS:"))
 	   (namestring c-pathname)
 	   (namestring o-pathname))
 ; Since the SUN4 assembler loops with big files, you might want to use this:
diff --git a/src/compile.lsp.in b/src/compile.lsp.in
index b140d43e1..4252297d5 100644
--- a/src/compile.lsp.in
+++ b/src/compile.lsp.in
@@ -11,7 +11,7 @@
 (proclaim '(optimize (safety 2) (space 3)))
 (sbt::operate-on-system lsp :library)
 (sbt::operate-on-system lsp :load)
-(setq si::*system-directory* (namestring (sys::chdir "./")))
+(si::pathname-translations "SYS" '(("*.*" "./*.*")))
 (setq compiler::*cc-flags* (concatenate 'string compiler::*cc-flags* " -I@srcdir@/h -I@srcdir@/gmp -I@builddir@/h"))
 
 #ifndef RUNTIME
diff --git a/src/compile_rest.lsp.in b/src/compile_rest.lsp.in
index 082507454..81fee2591 100644
--- a/src/compile_rest.lsp.in
+++ b/src/compile_rest.lsp.in
@@ -5,12 +5,8 @@
 ;;; * Learn where we come from and where we go to
 ;;;
 (in-package "SYSTEM")
-(*make-special '*ecls-srcdir*) ; defparameter is missing
-(*make-special '*ecls-builddir*)
-(setq *ecls-srcdir* #P"@srcdir@/")
-(setq *ecls-builddir* (sys::chdir *ecls-srcdir*))
-(setq *system-directory* *ecls-builddir*)
-(setq compiler::*cc-flags* (concatenate 'string compiler::*cc-flags* " -I@srcdir@/h -I@srcdir@/gmp "))
+(si::pathname-translations "SYS" '(("*.*" "./*.*")))
+(setq compiler::*cc-flags* (concatenate 'string compiler::*cc-flags* " -I@srcdir@/h -I@srcdir@/gmp -I@builddir@/h"))
 
 ;;;
 ;;; * Load system builder tool
@@ -34,11 +30,9 @@
 ;;; * Compile and link MIT CLX extensions
 ;;;
 (push :clx-ansi-common-lisp *features*)
-(sys::chdir (merge-pathnames "clx/" sys::*ecls-builddir*))
 (load "defsys.lsp")
 (sbt::operate-on-system clx :library)
 
-(sys::chdir sys::*ecls-builddir*)
 (compiler::build-ecls "eclx"
 #ifndef RUNTIME
 	   'cmp
diff --git a/src/h/external.h b/src/h/external.h
index 9bd5af8fa..0aa685305 100644
--- a/src/h/external.h
+++ b/src/h/external.h
@@ -448,7 +448,6 @@ extern void init_list(void);
 extern void init_load(void);
 extern void load_until_tag(cl_object stream, cl_object end_tag);
 extern void build_symbol_table();
-extern const char *system_directory();
 
 /* lwp.c */
 #ifdef THREADS
diff --git a/src/h/lisp_external.h b/src/h/lisp_external.h
index b29c983f9..7f43cc524 100644
--- a/src/h/lisp_external.h
+++ b/src/h/lisp_external.h
@@ -480,7 +480,6 @@ extern cl_object clLmacroexpand_1 _ARGS((int narg, cl_object form, ...));
 /* main.c */
 
 extern cl_object clVfeatures;
-extern cl_object siVsystem_directory;
 extern cl_object clLquit _ARGS((int narg, ...));
 extern cl_object siLargc _ARGS((int narg));
 extern cl_object siLargv _ARGS((int narg, cl_object index));
diff --git a/src/lsp/autoload.lsp b/src/lsp/autoload.lsp
index 65b6e31e8..46ad9942f 100644
--- a/src/lsp/autoload.lsp
+++ b/src/lsp/autoload.lsp
@@ -51,13 +51,13 @@
                (unless (sys::specialp var) (return nil)))))
 
 (defun compile-file (&rest args)
-  (load (merge-pathnames sys:*system-directory* "compiler"))
+  (load "SYS:compiler")
   (apply 'compile-file args))
 (defun compile (&rest args)
-  (load (merge-pathnames sys:*system-directory* "compiler"))
+  (load "SYS:compiler")
   (apply 'compile args))
 (defun disassemble (&rest args)
-  (load (merge-pathnames sys:*system-directory* "compiler"))
+  (load "SYS:compiler")
   (apply 'disassemble args))
 )
 
diff --git a/src/lsp/config.lsp.in b/src/lsp/config.lsp.in
index 117826f01..47f44fd72 100644
--- a/src/lsp/config.lsp.in
+++ b/src/lsp/config.lsp.in
@@ -34,4 +34,4 @@
 ;; * Set configuration pathnames. Notice the trailing slash!
 ;;   Otherwise it would not be a directory.
 ;;
-(setq sys:*system-directory* "@libdir@/")
+(si::pathname-translations "SYS" '(("*.*" "@libdir@/*.*")))
diff --git a/src/lsp/describe.lsp b/src/lsp/describe.lsp
index db05db70d..97d7631b0 100644
--- a/src/lsp/describe.lsp
+++ b/src/lsp/describe.lsp
@@ -541,7 +541,7 @@ q (or Q):             quits the inspection.~%~
   ;; where F means Function, V Variable and T Type.
   ;;
   (let* ((name (symbol-name symbol))
-	 (path (merge-pathnames *system-directory* "help.doc"))
+	 (path "SYS:help.doc")
 	 (pos 0))
 
     (labels ((bin-search (file start end &aux (delta 0) (middle 0) sym)
diff --git a/src/lsp/top.lsp b/src/lsp/top.lsp
index 8e880a78d..a8ee6f6ae 100644
--- a/src/lsp/top.lsp
+++ b/src/lsp/top.lsp
@@ -354,7 +354,8 @@
        (incf i)
        (if (= i argc)
 	   (error "Missing directory")
-	   (setq *system-directory* (argv i))))
+	   (setf (logical-pathname-translations "SYS")
+		 `(("SYS:*.*" ,(concatenate (argv i) "*.*"))))))
       ((string= "-compile" (argv i))
        (incf i)
        (if (= i argc)