diff --git a/.classpath b/.classpath
index 4a78265c3..5b14275ee 100644
--- a/.classpath
+++ b/.classpath
@@ -1,6 +1,7 @@
 <?xml version="1.0" encoding="UTF-8"?>
 <classpath>
 	<classpathentry kind="src" path="src/main/java"/>
+	<classpathentry kind="src" path="src/server/java"/>
 	<classpathentry kind="src" path="tests/src"/>
 	<classpathentry kind="con" path="org.eclipse.jdt.launching.JRE_CONTAINER"/>
 	<classpathentry kind="lib" path="lib/servlet-api-2.5.jar" sourcepath="lib-src/servlet-api-2.5-sources.jar"/>
@@ -22,5 +23,5 @@
 	<classpathentry kind="lib" path="lib/jython-2.5.1.jar"/>
 	<classpathentry kind="lib" path="lib/clojure-1.1.0.jar"/>
 	<classpathentry kind="lib" path="tests/lib/junit-4.8.1.jar" sourcepath="tests/lib-src/junit-4.8.1-sources.jar"/>
-	<classpathentry kind="output" path="build/classes"/>
+	<classpathentry kind="output" path="src/main/webapp/WEB-INF/classes"/>
 </classpath>
diff --git a/build.xml b/build.xml
index 951ef511a..14637ffce 100644
--- a/build.xml
+++ b/build.xml
@@ -22,13 +22,15 @@
     <property environment="env"/>
 
     <property name="src.dir" value="${basedir}/src/main/java" />
+    <property name="server.src.dir" value="${basedir}/src/server/java" />
     <property name="graphics.dir" value="${basedir}/src/graphics" />
     <property name="conf.dir" value="${basedir}/src/conf" />
     <property name="lib.dir" value="${basedir}/lib" />
     <property name="tools.dir" value="${basedir}/thirdparty" />
     <property name="tests.dir" value="${basedir}/tests" />
     
-    <property name="classes.dir" value="${build.dir}/classes" />
+    <property name="server_classes.dir" value="${build.dir}/classes" />
+    <property name="webapp_classes.dir" value="${basedir}/src/main/webapp/WEB-INF/classes" />
     <property name="tests_classes.dir" value="${tests.dir}/classes" />
     <property name="webapp.name" value="webapp" />
     <property name="webapp.dir" value="${build.dir}/${webapp.name}" />
@@ -43,19 +45,31 @@
         </fileset>
     </path>
 
+    <path id="webapp.class.path">
+        <pathelement path="${server_classes.dir}"/>
+        <path refid="class.path"/>
+    </path>
+
     <path id="tests.class.path">
         <path refid="class.path"/>
         <fileset dir="${tests.dir}/lib">
             <include name="**/*.jar" />
         </fileset>
     </path>
-            
-    <target name="build">
-        <mkdir dir="${classes.dir}" />
-        <javac srcdir="${src.dir}" destdir="${classes.dir}" debug="true" includeAntRuntime="no">
+
+    <target name="build_server">
+        <mkdir dir="${server_classes.dir}" />
+        <javac srcdir="${server.src.dir}" destdir="${server_classes.dir}" debug="true" includeAntRuntime="no">
             <classpath refid="class.path" />
         </javac>
     </target>
+            
+    <target name="build" depends="build_server">
+        <mkdir dir="${webapp_classes.dir}" />
+        <javac srcdir="${src.dir}" destdir="${webapp_classes.dir}" debug="true" includeAntRuntime="no">
+            <classpath refid="webapp.class.path" />
+        </javac>
+    </target>
 
     <target name="build_tests" depends="build">
         <mkdir dir="${tests_classes.dir}" />
@@ -65,7 +79,8 @@
     </target>
 
     <target name="jar" depends="build">
-        <jar destfile="${build.dir}/gridworks.jar" basedir="${classes.dir}"/>
+        <jar destfile="${build.dir}/gridworks.jar" basedir="${webapp_classes.dir}"/>
+        <jar destfile="${build.dir}/gridworks-server.jar" basedir="${server_classes.dir}"/>
     </target>
 
     <target name="prepare_webapp">
@@ -74,6 +89,7 @@
         <copy todir="${webapp.dir}">
             <fileset dir="${basedir}/src/main/webapp">
                 <include name="**/*"/>
+                <exclude name="WEB-INF/classes/**"/>
             </fileset>
         </copy>
         
@@ -114,6 +130,7 @@
                 <include name="**/*.jar" />
             </jarfileset>
             <jarfilelist dir="${build.dir}" files="gridworks.jar" />
+            <jarfilelist dir="${build.dir}" files="gridworks-server.jar" />
             <resourcefileset dir="${webapp.dir}/..">
                 <include name="${webapp.name}/**" />
             </resourcefileset>
@@ -165,6 +182,7 @@
             </fileset>
         </copy>
         <copy file="${build.dir}/gridworks.jar" tofile="${windows.dir}/lib/gridworks-${version}-${revision}.jar"/>
+        <copy file="${build.dir}/gridworks-server.jar" tofile="${windows.dir}/lib/gridworks-server-${version}-${revision}.jar"/>
         <copy todir="${windows.dir}/webapp">
             <fileset dir="${webapp.dir}">
                 <include name="**"/>
@@ -195,6 +213,7 @@
         </copy>
 
         <copy file="${build.dir}/gridworks.jar" tofile="${linux.dir}/lib/gridworks-${version}-${revision}.jar"/>
+        <copy file="${build.dir}/gridworks-server.jar" tofile="${linux.dir}/lib/gridworks-server-${version}-${revision}.jar"/>
     
         <copy todir="${linux.dir}/src/main/webapp">
             <fileset dir="${webapp.dir}">
@@ -211,6 +230,8 @@
         <copy file="${basedir}/README.txt" tofile="${linux.dir}/README.txt"/>
         <copy file="${basedir}/gridworks" tofile="${linux.dir}/gridworks"/>
         
+        <echo file="${linux.dir}/.revision" append="false">${revision}</echo>
+        
         <tar longfile="gnu" compression="gzip" destfile="${dist.dir}/gridworks-${version}-${revision}.tar.gz">
            <tarfileset dir="${linux.dir}/.." filemode="755">
                <include name="${linux.name}/gridworks"/>
@@ -224,11 +245,12 @@
 
     <target name="clean">
         <delete file="${build.dir}/gridworks.jar" />
-        <delete dir="${classes.dir}" />
+        <delete dir="${server_classes.dir}" />
+        <delete dir="${webapp_classes.dir}" />
         <delete dir="${tests_classes.dir}" />
     </target>
 
-    <target name="distclean">
+    <target name="distclean" depends="clean">
         <delete dir="${build.dir}" />
         <delete dir="${dist.dir}" />
     </target>
diff --git a/gridworks b/gridworks
index b21f668b3..47fa0fab9 100755
--- a/gridworks
+++ b/gridworks
@@ -138,6 +138,8 @@ get_revision() {
         INFO=`svn info`
     elif [ -d ".git" ]; then
         INFO=`git svn info`
+    elif [ -f ".revision" ]; then
+        REVISION=`cat .revision`
     else
         error "cannot obtain revision, exiting!"
     fi
diff --git a/src/main/java/com/metaweb/gridworks/GridworksServlet.java b/src/main/java/com/metaweb/gridworks/GridworksServlet.java
index d276a43f7..e19f613cc 100644
--- a/src/main/java/com/metaweb/gridworks/GridworksServlet.java
+++ b/src/main/java/com/metaweb/gridworks/GridworksServlet.java
@@ -127,7 +127,7 @@ public class GridworksServlet extends HttpServlet {
         super.init();
         
         ProjectManager.initialize();
-        
+                
         if (_timer == null) {
             _timer = new Timer();            
         }
diff --git a/src/main/java/com/metaweb/gridworks/commands/edit/CreateProjectCommand.java b/src/main/java/com/metaweb/gridworks/commands/edit/CreateProjectCommand.java
index fe6793674..be77288c5 100644
--- a/src/main/java/com/metaweb/gridworks/commands/edit/CreateProjectCommand.java
+++ b/src/main/java/com/metaweb/gridworks/commands/edit/CreateProjectCommand.java
@@ -193,7 +193,7 @@ public class CreateProjectCommand extends Command {
                     }
                 }
             }
-            Gridworks.log("Most frequent extensions: " + exts.toString());
+            Gridworks.log("**** Most frequent extensions: " + exts.toString());
             
             
         } else if (fileName.endsWith(".zip")) {
diff --git a/src/main/java/com/metaweb/gridworks/Configurations.java b/src/server/java/com/metaweb/gridworks/Configurations.java
similarity index 100%
rename from src/main/java/com/metaweb/gridworks/Configurations.java
rename to src/server/java/com/metaweb/gridworks/Configurations.java
diff --git a/src/main/java/com/metaweb/gridworks/Gridworks.java b/src/server/java/com/metaweb/gridworks/Gridworks.java
similarity index 95%
rename from src/main/java/com/metaweb/gridworks/Gridworks.java
rename to src/server/java/com/metaweb/gridworks/Gridworks.java
index 395222092..93c2c3f6d 100644
--- a/src/main/java/com/metaweb/gridworks/Gridworks.java
+++ b/src/server/java/com/metaweb/gridworks/Gridworks.java
@@ -139,7 +139,6 @@ class GridworksServer extends Server {
         this.addConnector(connector);
 
         final File contextRoot = new File(Configurations.get("gridworks.webapp","webapp"));
-        final File classRoot = new File(Configurations.get("gridworks.classes","build/classes"));
         final String contextPath = Configurations.get("gridworks.context_path","/");
 
         File webXml = new File(contextRoot, "WEB-INF/web.xml");
@@ -159,7 +158,7 @@ class GridworksServer extends Server {
 
         // Enable context autoreloading
         if (Configurations.getBoolean("gridworks.autoreloading",false)) {
-            scanForUpdates(contextRoot, classRoot, context);
+            scanForUpdates(contextRoot, context);
         }
         
         this.start();
@@ -178,14 +177,13 @@ class GridworksServer extends Server {
         }
     }
         
-    private void scanForUpdates(final File contextRoot, final File classRoot, final WebAppContext context) {
+    private void scanForUpdates(final File contextRoot, final WebAppContext context) {
         List<File> scanList = new ArrayList<File>();
 
         scanList.add(new File(contextRoot, "WEB-INF/web.xml"));
-        findFiles(".class", new File(contextRoot, "WEB-INF"), scanList);
-        findFiles(".class", classRoot, scanList);
+        findFiles(".class", new File(contextRoot, "WEB-INF/classes"), scanList);
 
-        Gridworks.info("Starting autoreloading scanner... [class dir: " + classRoot.getAbsolutePath() + "]");
+        Gridworks.info("Starting autoreloading scanner... ");
 
         Scanner scanner = new Scanner();
         scanner.setScanInterval(Configurations.getInteger("gridworks.scanner.period",1));
diff --git a/src/main/java/com/metaweb/util/logging/IndentingLayout.java b/src/server/java/com/metaweb/util/logging/IndentingLayout.java
similarity index 100%
rename from src/main/java/com/metaweb/util/logging/IndentingLayout.java
rename to src/server/java/com/metaweb/util/logging/IndentingLayout.java
diff --git a/src/main/java/com/metaweb/util/signal/SignalHandler.java b/src/server/java/com/metaweb/util/signal/SignalHandler.java
similarity index 100%
rename from src/main/java/com/metaweb/util/signal/SignalHandler.java
rename to src/server/java/com/metaweb/util/signal/SignalHandler.java
diff --git a/src/main/java/com/metaweb/util/signal/SignalHandlerWrapper.java b/src/server/java/com/metaweb/util/signal/SignalHandlerWrapper.java
similarity index 100%
rename from src/main/java/com/metaweb/util/signal/SignalHandlerWrapper.java
rename to src/server/java/com/metaweb/util/signal/SignalHandlerWrapper.java
diff --git a/src/main/java/com/metaweb/util/threads/ThreadPoolExecutorAdapter.java b/src/server/java/com/metaweb/util/threads/ThreadPoolExecutorAdapter.java
similarity index 100%
rename from src/main/java/com/metaweb/util/threads/ThreadPoolExecutorAdapter.java
rename to src/server/java/com/metaweb/util/threads/ThreadPoolExecutorAdapter.java