diff --git a/dlls/kernel/Makefile.in b/dlls/kernel/Makefile.in
index 19232c6591d..1be34a6a15a 100644
--- a/dlls/kernel/Makefile.in
+++ b/dlls/kernel/Makefile.in
@@ -47,7 +47,8 @@ C_SRCS = \
 	wowthunk.c
 
 C_SRCS16 = \
-	registry16.c
+	registry16.c \
+	system.c
 
 RC_SRCS = kernel.rc
 
diff --git a/misc/system.c b/dlls/kernel/system.c
similarity index 100%
rename from misc/system.c
rename to dlls/kernel/system.c
diff --git a/dlls/ntdll/Makefile.in b/dlls/ntdll/Makefile.in
index ca430062400..5c7dcf691ba 100644
--- a/dlls/ntdll/Makefile.in
+++ b/dlls/ntdll/Makefile.in
@@ -38,7 +38,6 @@ C_SRCS = \
 	$(TOPOBJDIR)/misc/main.c \
 	$(TOPOBJDIR)/misc/options.c \
 	$(TOPOBJDIR)/misc/registry.c \
-	$(TOPOBJDIR)/misc/system.c \
 	$(TOPOBJDIR)/misc/version.c \
 	$(TOPOBJDIR)/msdos/dosmem.c \
 	$(TOPOBJDIR)/msdos/dpmi.c \
diff --git a/memory/instr.c b/memory/instr.c
index 7aef4a2b0ed..4beb0fb342e 100644
--- a/memory/instr.c
+++ b/memory/instr.c
@@ -59,6 +59,19 @@ inline static void *get_stack( CONTEXT86 *context )
     return wine_ldt_get_ptr( context->SegSs, context->Esp );
 }
 
+
+/***********************************************************************
+ *           timer_thread
+ */
+static DWORD CALLBACK timer_thread( void *dummy )
+{
+    for (;;)
+    {
+        Sleep(55);
+        DOSMEM_Tick( 0 );
+    }
+}
+
 /***********************************************************************
  *           INSTR_ReplaceSelector
  *
@@ -86,9 +99,13 @@ static BOOL INSTR_ReplaceSelector( CONTEXT86 *context, WORD *sel )
 
     if (*sel == 0x40)
     {
+#if 0  /* hack until this is moved to kernel */
         static WORD sys_timer = 0;
         if (!sys_timer)
             sys_timer = CreateSystemTimer( 55, DOSMEM_Tick );
+#endif
+        static HANDLE sys_thread;
+        if (!sys_thread) sys_thread = CreateThread( NULL, 0, timer_thread, NULL, 0, NULL );
         *sel = DOSMEM_BiosDataSeg;
         return TRUE;
     }