diff --git a/rse/tests/org.eclipse.rse.tests/META-INF/MANIFEST.MF b/rse/tests/org.eclipse.rse.tests/META-INF/MANIFEST.MF
index 55bb5a0e0c2..cf3bb3d35d4 100644
--- a/rse/tests/org.eclipse.rse.tests/META-INF/MANIFEST.MF
+++ b/rse/tests/org.eclipse.rse.tests/META-INF/MANIFEST.MF
@@ -14,6 +14,7 @@ Require-Bundle: org.junit,
  org.eclipse.rse.ui,
  org.eclipse.rse.subsystems.files.core,
  org.eclipse.rse.subsystems.shells.core,
- org.eclipse.rse.tests.framework
+ org.eclipse.rse.tests.framework,
+ org.eclipse.rse.services
 Eclipse-LazyStart: true
 Bundle-RequiredExecutionEnvironment: J2SE-1.4
diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/RSECombinedTestSuite.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/RSECombinedTestSuite.java
index b47b3e3cd98..eb4b7b3a289 100644
--- a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/RSECombinedTestSuite.java
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/RSECombinedTestSuite.java
@@ -13,6 +13,7 @@ import junit.framework.Test;
 import junit.framework.TestSuite;
 
 import org.eclipse.rse.tests.core.connection.RSEConnectionTestSuite;
+import org.eclipse.rse.tests.files.RSEFileTestSuite;
 import org.eclipse.rse.tests.framework.DelegatingTestSuiteHolder;
 import org.eclipse.rse.tests.internal.RSEInternalFrameworkTestSuite;
 
@@ -49,6 +50,7 @@ public class RSECombinedTestSuite extends DelegatingTestSuiteHolder {
 		// add the single test suites to the overall one here.
 		suite.addTest(RSEInternalFrameworkTestSuite.suite());
 		suite.addTest(RSEConnectionTestSuite.suite());
+		suite.addTest(RSEFileTestSuite.suite());
 		
 		return suite;
 	}
diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/FileServiceTest.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/FileServiceTest.java
new file mode 100644
index 00000000000..e695851356e
--- /dev/null
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/FileServiceTest.java
@@ -0,0 +1,133 @@
+/*******************************************************************************
+ * Copyright (c) 2006 Wind River Systems, Inc. and others.
+ * All rights reserved. This program and the accompanying materials 
+ * are made available under the terms of the Eclipse Public License v1.0 
+ * which accompanies this distribution, and is available at 
+ * http://www.eclipse.org/legal/epl-v10.html 
+ * 
+ * Contributors: 
+ * Martin Oberhuber (Wind River) - initial API and implementation
+ *******************************************************************************/
+package org.eclipse.rse.tests.files;
+
+import java.io.File;
+import java.io.IOException;
+
+import org.eclipse.core.runtime.IProgressMonitor;
+import org.eclipse.core.runtime.NullProgressMonitor;
+import org.eclipse.rse.core.model.IHost;
+import org.eclipse.rse.core.model.ISystemRegistry;
+import org.eclipse.rse.core.subsystems.ISubSystem;
+import org.eclipse.rse.model.SystemStartHere;
+import org.eclipse.rse.services.clientserver.messages.SystemMessageException;
+import org.eclipse.rse.services.files.IFileService;
+import org.eclipse.rse.services.files.IHostFile;
+import org.eclipse.rse.subsystems.files.core.servicesubsystem.IFileServiceSubSystem;
+import org.eclipse.rse.tests.core.connection.RSEBaseConnectionTestCase;
+
+public class FileServiceTest extends RSEBaseConnectionTestCase {
+
+	private IFileServiceSubSystem fss;
+	private IFileService fs;
+	private File tempDir;
+	private String tempDirPath;
+	private IProgressMonitor mon = new NullProgressMonitor();
+	
+	public void setUp() {
+		IHost localHost = getLocalSystemConnection();
+		ISystemRegistry sr = SystemStartHere.getSystemRegistry(); 
+		ISubSystem[] ss = sr.getServiceSubSystems(IFileService.class, localHost);
+		for (int i=0; i<ss.length; i++) {
+			if (ss[i] instanceof IFileServiceSubSystem) {
+				fss = (IFileServiceSubSystem)ss[i];
+				fs = fss.getFileService();
+			}
+		}
+		try {
+			 tempDir = File.createTempFile("rsetest","dir"); //$NON-NLS-1$ //$NON-NLS-2$
+			 assertTrue(tempDir.delete());
+			 assertTrue(tempDir.mkdir());
+			 tempDirPath = tempDir.getAbsolutePath();
+		} catch(IOException ioe) {
+			assertTrue("Exception creating temp dir", false); //$NON-NLS-1$
+		}
+	}
+	
+	public void tearDown() {
+		try {
+			fs.delete(mon, tempDir.getParent(), tempDir.getName());
+		} catch(SystemMessageException msg) {
+			assertFalse("Exception: "+msg.getLocalizedMessage(), true); //$NON-NLS-1$
+		}
+	}
+	
+	public boolean isWindows() {
+		String systemTypeId = fss.getHost().getSystemType(); 
+		if (systemTypeId.equals("Local")) { //$NON-NLS-1$
+			return System.getProperty("os.name").toLowerCase().startsWith("win"); //$NON-NLS-1$ //$NON-NLS-2$
+		}
+		return systemTypeId.toLowerCase().startsWith("windows"); //$NON-NLS-1$
+	}
+	
+	public String getTestFileName() {
+		//Return a filename for testing that exposes all characters valid on the file system
+		if (!isWindows()) {
+			//UNIX
+			return "a !@#${a}\"\' file%^&*()?_ =[]+-';:,.|<>"; //$NON-NLS-1$
+		}
+		//Fallback: Windows
+		return "a !@#${a}' file%^&()_ =[]+-;,."; //$NON-NLS-1$
+	}
+	
+	public void testCaseSensitive() {
+		if (isWindows()) {
+			assertFalse(fss.getSubSystemConfiguration().isCaseSensitive());
+			assertFalse(fss.isCaseSensitive());
+			assertFalse(fs.isCaseSensitive()); //FAIL due to bug 168586
+		} else {
+			assertTrue(fss.getSubSystemConfiguration().isCaseSensitive());
+			assertTrue(fss.isCaseSensitive());
+			assertTrue(fs.isCaseSensitive());
+		}
+	}
+	
+	public void testCreateFile() throws SystemMessageException {
+		String testName = getTestFileName();
+		IHostFile hf = fs.createFile(mon, tempDirPath, testName);
+		assertTrue(hf.exists());
+		assertTrue(hf.canRead());
+		assertTrue(hf.canWrite());
+		assertEquals(hf.getName(), testName);
+		
+		File theFile = new File(tempDir, testName); 
+		assertTrue(theFile.exists());
+	}
+	
+	public void testCreateCaseSensitive() throws SystemMessageException {
+		String testName = getTestFileName();
+		String testName2 = testName.toUpperCase();
+		IHostFile hf = fs.createFile(mon, tempDirPath, testName);
+		if (fss.isCaseSensitive()) {
+			//UNIX: uppercase version must be distinct
+			IHostFile hf2 = fs.getFile(mon, tempDirPath, testName2);
+			assertFalse(hf2.exists());
+			hf2 = fs.createFolder(mon, tempDirPath, testName2);
+			assertTrue(hf2.exists());
+			assertTrue(hf2.isDirectory());
+		} else {
+			//Windows: uppercase version must be the same
+			IHostFile hf2 = fs.getFile(mon, tempDirPath, testName2);
+			assertTrue(hf2.exists());
+			try {
+				hf2 = fs.createFolder(mon, tempDirPath, testName2);
+			} catch(SystemMessageException e) {
+				assertNotNull(e);
+			}
+			assertTrue(hf2.exists());
+			assertFalse(hf2.isDirectory());
+			assertEquals(hf.getModifiedDate(), hf2.getModifiedDate());
+			assertEquals(hf.getSize(), hf2.getSize());
+		}
+	}
+
+}
diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/RSEFileTestSuite.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/RSEFileTestSuite.java
new file mode 100644
index 00000000000..ffcdbb10db4
--- /dev/null
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/files/RSEFileTestSuite.java
@@ -0,0 +1,55 @@
+/*******************************************************************************
+ * Copyright (c) 2006 Wind River Systems, Inc. and others.
+ * All rights reserved. This program and the accompanying materials 
+ * are made available under the terms of the Eclipse Public License v1.0 
+ * which accompanies this distribution, and is available at 
+ * http://www.eclipse.org/legal/epl-v10.html 
+ * 
+ * Contributors: 
+ * Martin Oberhuber (Wind River) - initial API and implementation
+ *******************************************************************************/
+package org.eclipse.rse.tests.files;
+
+import junit.framework.Test;
+import junit.framework.TestSuite;
+
+import org.eclipse.rse.tests.framework.DelegatingTestSuiteHolder;
+
+public class RSEFileTestSuite extends DelegatingTestSuiteHolder {
+	/**
+	 * Standard Java application main method. Allows to launch the test
+	 * suite from outside as part of nightly runs, headless runs or other.
+	 * <p><b>Note:</b> Use only <code>junit.textui.TestRunner</code> here as
+	 * it is explicitly supposed to output the test output to the shell the
+	 * test suite has been launched from.
+	 * <p>
+	 * @param args The standard Java application command line parameters passed in.
+	 */
+	public static void main(String[] args) {
+		junit.textui.TestRunner.run(suite());
+	}
+
+	/**
+	 * Combine all test into a suite and returns the test suite instance.
+	 * <p>
+	 * <b>Note: This method must be always called <i><code>suite</code></i> ! Otherwise
+	 * the JUnit plug-in test launcher will fail to detect this class!</b>
+	 * <p>
+	 * @return The test suite instance.
+	 */
+	public static Test suite() {
+		TestSuite suite = new TestSuite("RSE File Test Suite"); //$NON-NLS-1$
+		// add the single test suites to the overall one here.
+		suite.addTestSuite(FileServiceTest.class);
+		
+		return suite;
+	}
+	
+	/* (non-Javadoc)
+	 * @see org.eclipse.rse.tests.framework.AbstractTestSuiteHolder#getTestSuite()
+	 */
+	public TestSuite getTestSuite() {
+		return (TestSuite)RSEFileTestSuite.suite();
+	}
+
+}