diff --git a/dlls/Makefile.in b/dlls/Makefile.in
index 567531e512b..07a31a66fcd 100644
--- a/dlls/Makefile.in
+++ b/dlls/Makefile.in
@@ -429,7 +429,7 @@ joystick.drv$(DLLEXT): winmm/joystick/joystick.drv$(DLLEXT)
 
 kernel32.dll$(DLLEXT) comm.dll$(DLLEXT) krnl386.exe$(DLLEXT) \
   stress.dll$(DLLEXT) system.dll$(DLLEXT) toolhelp.dll$(DLLEXT) \
-  win87em.dll$(DLLEXT) windebug.dll$(DLLEXT) wprocs.dll$(DLLEXT): kernel/kernel32.dll$(DLLEXT)
+  win87em.dll$(DLLEXT) windebug.dll$(DLLEXT): kernel/kernel32.dll$(DLLEXT)
 	$(RM) $@ && $(LN_S) kernel/kernel32.dll$(DLLEXT) $@
 
 lz32.dll$(DLLEXT) lzexpand.dll$(DLLEXT): lzexpand/lz32.dll$(DLLEXT)
@@ -606,7 +606,7 @@ winearts.drv$(DLLEXT): winmm/winearts/winearts.drv$(DLLEXT)
 wineaudioio.drv$(DLLEXT): winmm/wineaudioio/wineaudioio.drv$(DLLEXT)
 	$(RM) $@ && $(LN_S) winmm/wineaudioio/wineaudioio.drv$(DLLEXT) $@
 
-winedos.dll$(DLLEXT): winedos/winedos.dll$(DLLEXT)
+winedos.dll$(DLLEXT) wprocs.dll$(DLLEXT): winedos/winedos.dll$(DLLEXT)
 	$(RM) $@ && $(LN_S) winedos/winedos.dll$(DLLEXT) $@
 
 winejack.drv$(DLLEXT): winmm/winejack/winejack.drv$(DLLEXT)
diff --git a/dlls/kernel/.cvsignore b/dlls/kernel/.cvsignore
index cf6994bc550..c1d7f27b931 100644
--- a/dlls/kernel/.cvsignore
+++ b/dlls/kernel/.cvsignore
@@ -11,4 +11,3 @@ toolhelp.spec.c
 version16.res
 win87em.spec.c
 windebug.spec.c
-wprocs.spec.c
diff --git a/dlls/kernel/Makefile.in b/dlls/kernel/Makefile.in
index 9c0a26280da..dab93d3aadd 100644
--- a/dlls/kernel/Makefile.in
+++ b/dlls/kernel/Makefile.in
@@ -5,7 +5,7 @@ SRCDIR    = @srcdir@
 VPATH     = @srcdir@
 MODULE    = kernel32.dll
 IMPORTS   = ntdll
-ALTNAMES  = krnl386.exe comm.dll stress.dll system.dll toolhelp.dll windebug.dll win87em.dll wprocs.dll
+ALTNAMES  = krnl386.exe comm.dll stress.dll system.dll toolhelp.dll windebug.dll win87em.dll
 LDIMPORTS = ntdll.dll
 EXTRALIBS = $(LIBUNICODE)
 DLLMAIN   = MAIN_KernelInit
@@ -17,8 +17,7 @@ SPEC_SRCS16 = \
 	system.spec \
 	toolhelp.spec \
 	win87em.spec \
-	windebug.spec \
-	wprocs.spec
+	windebug.spec
 
 C_SRCS = \
 	$(TOPOBJDIR)/ole/ole2nls.c \
diff --git a/dlls/ntdll/Makefile.in b/dlls/ntdll/Makefile.in
index d3ddadcef5b..286a87a2310 100644
--- a/dlls/ntdll/Makefile.in
+++ b/dlls/ntdll/Makefile.in
@@ -46,7 +46,6 @@ C_SRCS = \
 	$(TOPOBJDIR)/msdos/int21.c \
 	$(TOPOBJDIR)/msdos/ioports.c \
 	$(TOPOBJDIR)/msdos/ppdev.c \
-	$(TOPOBJDIR)/msdos/vxd.c \
 	$(TOPOBJDIR)/relay32/builtin32.c \
 	$(TOPOBJDIR)/relay32/relay386.c \
 	$(TOPOBJDIR)/relay32/snoop.c \
diff --git a/dlls/winedos/.cvsignore b/dlls/winedos/.cvsignore
index f01abb627ac..2a32b262e2e 100644
--- a/dlls/winedos/.cvsignore
+++ b/dlls/winedos/.cvsignore
@@ -3,3 +3,4 @@ winedos.dll.dbg.c
 winedos.spec.c
 winedos.spec.def
 winedos16.spec.c
+wprocs.spec.c
diff --git a/dlls/winedos/Makefile.in b/dlls/winedos/Makefile.in
index 9668723248b..ecf0172da8d 100644
--- a/dlls/winedos/Makefile.in
+++ b/dlls/winedos/Makefile.in
@@ -4,11 +4,14 @@ SRCDIR    = @srcdir@
 VPATH     = @srcdir@
 MODULE    = winedos.dll
 IMPORTS   = user32 advapi32 kernel32 ntdll
+ALTNAMES  = wprocs.dll
 EXTRALIBS = $(LIBUNICODE)
 
 LDDLLFLAGS = @LDDLLFLAGS@
 SYMBOLFILE = $(MODULE).tmp.o
 
+SPEC_SRCS16 = wprocs.spec
+
 C_SRCS = \
 	devices.c \
 	dma.c \
@@ -46,6 +49,7 @@ C_SRCS = \
 	relay.c \
 	soundblaster.c \
 	vga.c \
+	vxd.c \
 	xms.c
 
 @MAKE_DLL_RULES@
diff --git a/msdos/vxd.c b/dlls/winedos/vxd.c
similarity index 98%
rename from msdos/vxd.c
rename to dlls/winedos/vxd.c
index a1581fa79c3..e4f91fca2bf 100644
--- a/msdos/vxd.c
+++ b/dlls/winedos/vxd.c
@@ -395,14 +395,29 @@ void WINAPI VXD_Timer( CONTEXT86 *context )
     }
 }
 
+
+/***********************************************************************
+ *           timer_thread
+ */
+static DWORD CALLBACK timer_thread( void *arg )
+{
+    DWORD *system_time = arg;
+
+    for (;;)
+    {
+        *system_time = GetTickCount();
+        Sleep( 55 );
+    }
+}
+
+
 /***********************************************************************
  *           VXD_TimerAPI (WPROCS.1490)
  */
-static DWORD System_Time = 0;
-static WORD  System_Time_Selector = 0;
-static void  System_Time_Tick( WORD timer ) { System_Time += 55; }
 void WINAPI VXD_TimerAPI ( CONTEXT86 *context )
 {
+    static WORD System_Time_Selector;
+
     unsigned service = AX_reg(context);
 
     TRACE("[%04x] TimerAPI\n", (UINT16)service);
@@ -417,10 +432,10 @@ void WINAPI VXD_TimerAPI ( CONTEXT86 *context )
     case 0x0009: /* get system time selector */
         if ( !System_Time_Selector )
         {
-            System_Time_Selector = SELECTOR_AllocBlock( &System_Time, sizeof(DWORD), WINE_LDT_FLAGS_DATA );
-            CreateSystemTimer( 55, System_Time_Tick );
+            HANDLE16 handle = GlobalAlloc16( GMEM_FIXED, sizeof(DWORD) );
+            System_Time_Selector = handle | 7;
+            CloseHandle( CreateThread( NULL, 0, timer_thread, GlobalLock16(handle), 0, NULL ) );
         }
-
         SET_AX( context, System_Time_Selector );
         RESET_CFLAG(context);
         break;
diff --git a/dlls/kernel/wprocs.spec b/dlls/winedos/wprocs.spec
similarity index 100%
rename from dlls/kernel/wprocs.spec
rename to dlls/winedos/wprocs.spec