diff --git a/apps/Makefile b/apps/Makefile
index 4fa225033b..278e1c7118 100644
--- a/apps/Makefile
+++ b/apps/Makefile
@@ -107,9 +107,23 @@ $(OBJDIR)/rombox.bin : $(OBJDIR)/rombox.elf
 $(OBJDIR)/rockbox.asm: $(OBJDIR)/rockbox.bin
 	$(TOOLSDIR)/sh2d -sh1 $< > $@
 
-$(BUILDDIR)/$(BINARY) : $(OBJDIR)/rockbox.bin
+#
+# If there's a flashfile defined for this target (rockbox.ucl for Archos
+# models) Then check if the mkfirmware script fails, as then it is (likely)
+# because the image is too big and we need to create a compressed image
+# instead.
+#
+$(BUILDDIR)/$(BINARY) : $(OBJDIR)/rockbox.bin $(FLASHFILE) 
 	@echo "Build firmware file"
-	$(SILENT)$(MKFIRMWARE) $< $@
+	$(SILENT)($(MKFIRMWARE) $< $@; \
+	stat=$$?; \
+	if test -n "$(FLASHFILE)"; then \
+	  if test "$$stat" -ne 0; then \
+	    echo "Image too big, making a compressed version!"; \
+	    $(MAKE) -C $(FIRMDIR)/decompressor OBJDIR=$(BUILDDIR)/firmware/decompressor; \
+	    $(MKFIRMWARE) $(BUILDDIR)/firmware/decompressor/compressed.bin $@; \
+	  fi \
+	fi )
 
 else
 # this is a simulator build
diff --git a/firmware/decompressor/Makefile b/firmware/decompressor/Makefile
index 4136eafdb7..5e4e73912e 100644
--- a/firmware/decompressor/Makefile
+++ b/firmware/decompressor/Makefile
@@ -7,43 +7,46 @@
 # $Id$
 #
 
-CC = sh-elf-gcc
-LD = sh-elf-ld
-AR = sh-elf-ar
-AS = sh-elf-as
-OC = sh-elf-objcopy
-
-TOOLSDIR=../../tools
-OBJDIR := .
-# FIXME: get proper value from build system
-MEMORYSIZE = 2
+ifndef V
+SILENT=@
+endif
 
 LDS := link.lds
 LINKFILE = $(OBJDIR)/linkage.lds
 OBJS := $(OBJDIR)/decompressor.o $(OBJDIR)/uclimage.o $(OBJDIR)/startup.o
-
-CFLAGS = -O -W -Wall -m1 -nostdlib -ffreestanding -Wstrict-prototypes -fomit-frame-pointer -fschedule-insns
+CFLAGS = $(GCCOPTS)
 
 all: $(OBJDIR)/compressed.bin
 
 $(OBJDIR)/compressed.bin : $(OBJDIR)/compressed.elf
 	@echo "OBJCOPY "`basename $@`
-	@$(OC) -O binary $< $@
+	$(SILENT)$(OC) -O binary $< $@
 
 $(OBJDIR)/compressed.elf : $(OBJS) $(LINKFILE)
-	@echo "LD rockbox.elf"
-	@$(CC) $(GCCOPTS) -Os -nostdlib -o $@ $(OBJS) -T$(LINKFILE) -Wl,-Map,$(OBJDIR)/compressed.map
+	@echo "LD `basename $@`"
+	$(SILENT)$(CC) $(GCCOPTS) -Os -nostdlib -o $@ $(OBJS) -T$(LINKFILE) -Wl,-Map,$(OBJDIR)/compressed.map
 
 $(LINKFILE): $(LDS)
 	@echo "Build LDS file"
-	@cat $< | $(CC) -DMEMORYSIZE=$(MEMORYSIZE) $(INCLUDES) $(TARGET) $(DEFINES) -E -P $(ROMBUILD) - >$@
+	$(SILENT)cat $< | $(CC) -DMEMORYSIZE=$(MEMORYSIZE) $(INCLUDES) $(TARGET) $(DEFINES) -E -P $(ROMBUILD) - >$@
 
-$(OBJDIR)/decompressor.o : $(OBJDIR)/uclimage.h
+$(OBJDIR)/decompressor.o : decompressor.c $(OBJDIR)/uclimage.c
+	$(SILENT)mkdir -p `dirname $@`
+	@echo "CC $<"
+	$(SILENT)$(CC) $(CFLAGS) -I$(OBJDIR) -c $< -o $@
 
-$(OBJDIR)/uclimage.c : $(OBJDIR)/rockbox.ucl  $(TOOLSDIR)/ucl2src.pl
+$(OBJDIR)/startup.o : startup.S
+	$(SILENT)mkdir -p `dirname $@`
+	@echo "AS $<"
+	$(SILENT)$(CC) $(CFLAGS) -c $< -o $@
+
+$(OBJDIR)/uclimage.o : $(OBJDIR)/uclimage.c
+	$(SILENT)mkdir -p `dirname $@`
+	@echo "CC `basename $<`"
+	$(SILENT)$(CC) $(CFLAGS) -c $< -o $@
+
+$(OBJDIR)/uclimage.c : $(FLASHFILE)  $(TOOLSDIR)/ucl2src.pl
+	$(SILENT)mkdir -p `dirname $@`
 	@echo "UCL2SRC"
-	@perl -s $(TOOLSDIR)/ucl2src.pl -p=uclimage $< $@
+	$(SILENT)perl -s $(TOOLSDIR)/ucl2src.pl -p=$(OBJDIR)/uclimage $<
 
-$(OBJDIR)/uclimage.h : $(OBJDIR)/rockbox.ucl  $(TOOLSDIR)/ucl2src.pl
-	@echo "UCL2SRC"
-	@perl -s $(TOOLSDIR)/ucl2src.pl -p=uclimage $< $@