diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/META-INF/MANIFEST.MF b/build/org.eclipse.cdt.managedbuilder.gnu.ui/META-INF/MANIFEST.MF
index dbc9a92a231..477227262a2 100644
--- a/build/org.eclipse.cdt.managedbuilder.gnu.ui/META-INF/MANIFEST.MF
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/META-INF/MANIFEST.MF
@@ -10,5 +10,6 @@ Export-Package: org.eclipse.cdt.managedbuilder.gnu.cygwin,
  org.eclipse.cdt.managedbuilder.gnu.ui
 Require-Bundle: org.eclipse.core.runtime;bundle-version="[3.2.0,4.0.0)",
  org.eclipse.cdt.managedbuilder.core;bundle-version="[4.0.0,5.0.0)",
- org.eclipse.cdt.core;bundle-version="[4.0.0,5.0.0)"
+ org.eclipse.cdt.core;bundle-version="[4.0.0,5.0.0)",
+ org.eclipse.core.resources
 Eclipse-LazyStart: true
diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/plugin.xml b/build/org.eclipse.cdt.managedbuilder.gnu.ui/plugin.xml
index 718809c62f8..5eb820fa302 100644
--- a/build/org.eclipse.cdt.managedbuilder.gnu.ui/plugin.xml
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/plugin.xml
@@ -3792,5 +3792,15 @@
             <toolChain id="cdt.managedbuild.toolchain.gnu.solaris.base"/>
       </template>
 </extension>
+<extension
+      point="org.eclipse.cdt.core.templateProcessTypes">
+   <processType
+         name="SimpleGNUMakefileGenerator"
+         processRunner="org.eclipse.cdt.managedbuilder.gnu.templates.SimpleMakefileGenerator">
+      <simple
+            name="projectName">
+      </simple>
+   </processType>
+</extension>
 
 </plugin>
diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/templates/SimpleMakefileGenerator.java b/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/templates/SimpleMakefileGenerator.java
new file mode 100644
index 00000000000..d52c72855e8
--- /dev/null
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/src/org/eclipse/cdt/managedbuilder/gnu/templates/SimpleMakefileGenerator.java
@@ -0,0 +1,117 @@
+/**********************************************************************
+ * Copyright (c) 2007 QNX Software Systems 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: 
+ *     QNX Software Systems - Initial API and implementation
+ **********************************************************************/
+
+package org.eclipse.cdt.managedbuilder.gnu.templates;
+
+import java.io.ByteArrayInputStream;
+import java.io.IOException;
+import java.io.InputStream;
+import java.net.URL;
+import java.util.HashMap;
+import java.util.Iterator;
+import java.util.Map;
+
+import org.eclipse.cdt.core.templateengine.TemplateCore;
+import org.eclipse.cdt.core.templateengine.TemplateEngineHelper;
+import org.eclipse.cdt.core.templateengine.process.ProcessArgument;
+import org.eclipse.cdt.core.templateengine.process.ProcessFailureException;
+import org.eclipse.cdt.core.templateengine.process.ProcessHelper;
+import org.eclipse.cdt.core.templateengine.process.ProcessRunner;
+import org.eclipse.cdt.core.templateengine.process.processes.Messages;
+import org.eclipse.core.resources.IFile;
+import org.eclipse.core.resources.IProject;
+import org.eclipse.core.resources.IResource;
+import org.eclipse.core.resources.ResourcesPlugin;
+import org.eclipse.core.runtime.CoreException;
+import org.eclipse.core.runtime.IProgressMonitor;
+import org.eclipse.core.runtime.IStatus;
+import org.eclipse.core.runtime.Platform;
+
+/**
+ * @author Doug Schaefer
+ *
+ * TODO - this is necessitated because the default macro format for
+ * the template engine is $( and ) which is the same as make macros.
+ * This replaces that with something more make friendly.
+ * 
+ * But at the end of they day, we need a real macro replacement engine
+ * like JET, or something...
+ */
+public class SimpleMakefileGenerator extends ProcessRunner {
+
+	private static final String MAKEFILE = "Makefile"; //$NON-NLS-1$
+	public void process(TemplateCore template, ProcessArgument[] args,
+			String processId, IProgressMonitor monitor)
+			throws ProcessFailureException {
+		String projectName = args[0].getSimpleValue();
+
+		IProject projectHandle = ResourcesPlugin.getWorkspace().getRoot().getProject(projectName);
+		URL path;
+		try {
+			path = TemplateEngineHelper.getTemplateResourceURLRelativeToTemplate(template, MAKEFILE);
+			if (path == null) {
+				throw new ProcessFailureException(getProcessMessage(processId, IStatus.ERROR, Messages.getString("AddFile.0") + MAKEFILE)); //$NON-NLS-1$
+			}
+		} catch (IOException e1) {
+			throw new ProcessFailureException(getProcessMessage(processId, IStatus.ERROR, Messages.getString("AddFile.1") + MAKEFILE)); //$NON-NLS-1$
+		}
+		
+		InputStream contents = null;
+		String fileContents;
+		try {
+			fileContents = ProcessHelper.readFromFile(path);
+		} catch (IOException e) {
+			throw new ProcessFailureException(getProcessMessage(processId, IStatus.ERROR, Messages.getString("AddFile.2") + MAKEFILE)); //$NON-NLS-1$
+		}
+		
+		Map macros = new HashMap(template.getValueStore());
+		if (Platform.getOS().equals(Platform.OS_WIN32))
+			macros.put("exe", ".exe");
+		
+		fileContents = replaceMacros(fileContents, macros);
+		contents = new ByteArrayInputStream(fileContents.getBytes());
+
+		try {
+			IFile iFile = projectHandle.getFile(MAKEFILE);
+			if (!iFile.getParent().exists()) {
+				ProcessHelper.mkdirs(projectHandle, projectHandle.getFolder(iFile.getParent().getProjectRelativePath()));
+			}
+			iFile.create(contents, true, null);
+			iFile.refreshLocal(IResource.DEPTH_ONE, null);
+			projectHandle.refreshLocal(IResource.DEPTH_INFINITE, null);
+		} catch (CoreException e) {
+			throw new ProcessFailureException(getProcessMessage(processId, IStatus.ERROR, Messages.getString("AddFile.4") + e.getMessage()), e); //$NON-NLS-1$
+		}
+	}
+
+	private static final String START = "{{";
+	private static final String END = "}}";
+	
+	private String replaceMacros(String fileContents, Map valueStore) {
+		StringBuffer buffer = new StringBuffer(fileContents);
+		for (Iterator i = valueStore.keySet().iterator(); i.hasNext();) {
+			String key = (String)i.next();
+			String pattern = START + key +END;
+			if (!fileContents.contains(pattern))
+				// Not used
+				continue;
+			
+			// replace
+			int len = pattern.length();
+			int pos = 0;
+			while ((pos = buffer.indexOf(pattern, pos)) >= 0) {
+				buffer.replace(pos, pos + len, (String)valueStore.get(key));
+				pos += len;
+			}
+		}
+		return buffer.toString();
+	}
+}
diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/src/Basename.cpp b/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/Basename.cpp
similarity index 100%
rename from build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/src/Basename.cpp
rename to build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/Basename.cpp
diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/Makefile b/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/Makefile
new file mode 100644
index 00000000000..7114ef1e1cf
--- /dev/null
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/Makefile
@@ -0,0 +1,16 @@
+CFLAGS =	-O2 -g -Wall -fmessage-length=0
+CXXFLAGS =	-O2 -g -Wall -fmessage-length=0
+
+OBJS =		{{baseName}}.o
+
+LIBS =
+
+TARGET =	{{baseName}}{{exe}}
+
+$(TARGET):	$(OBJS)
+	$(CC) -o $(TARGET) $(OBJS) $(LIBS)
+
+all:	$(TARGET)
+
+clean:
+	rm -f $(OBJS) $(TARGET)
diff --git a/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/template.xml b/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/template.xml
index e319bd80b1f..d5c845b7b18 100644
--- a/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/template.xml
+++ b/build/org.eclipse.cdt.managedbuilder.gnu.ui/templates/projecttemplates/MakefileHelloWorldCCProject/template.xml
@@ -30,29 +30,18 @@
 			persist="true"/>
 	</property-group>
 	
-	<!--process type="org.eclipse.cdt.managedbuilder.core.NewManagedProject">
-		<simple name="name" value="$(projectName)" /> 
-		<simple name="artifactExtension" value="exe" /> 
-		<simple name="isCProject" value="true" /> 
-	</process-->
-
-	<process type="org.eclipse.cdt.core.CreateSourceFolder">
-		<simple name="projectName" value="$(projectName)"/>
-		<simple name="path" value="src"/>
-	</process>
-
 	<process type="org.eclipse.cdt.core.AddFiles">
 		<simple name="projectName" value="$(projectName)"/>
 		<complex-array name="files">
 			<element>
-				<simple name="source" value="src/Basename.cpp"/>
-				<simple name="target" value="src/$(projectName).cpp"/>
+				<simple name="source" value="Basename.cpp"/>
+				<simple name="target" value="$(projectName).cpp"/>
 				<simple name="replaceable" value="true"/>
 			</element>
 		</complex-array>
 	</process>
 	
-	<process type="org.eclipse.cdt.managedbuilder.core.GenerateMakefileWithBuildDescription">
+	<process type="org.eclipse.cdt.managedbuilder.gnu.ui.SimpleGNUMakefileGenerator">
 		<simple name="projectName" value="$(projectName)"/>
 	</process>