diff --git a/Makefile.am b/Makefile.am
index e0c813eb..29539863 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -9,10 +9,18 @@ EXTRA_DIST =			\
 	intltool-extract.in	\
 	intltool-merge.in	\
 	intltool-update.in	\
+	make-pot-subdirs	\
 	medit.desktop.in
 
+all-am: pot-subdirs-stamp wininstaller/medit.iss
+
+pot-subdirs-stamp: po/POTFILES.in
+	$(SHELL) $(srcdir)/make-pot-subdirs "$(srcdir)"
+CLEANFILES = pot-subdirs-stamp
+
 DIST_SUBDIRS = m4 moo tests po
-SUBDIRS = moo tests po
+# need to create pot-subdirs-stamp before it goes to po/
+SUBDIRS = moo tests . po
 
 ACLOCAL_AMFLAGS = -I $(top_srcdir)/m4
 
@@ -43,5 +51,3 @@ icontheme_DATA = moo/mooutils/pixmaps/medit.png
 # 		echo "*** GTK icon cache not updated. After install, run this:";\
 # 		echo $(update_icon_cache);					\
 # 	fi
-
-all-am: wininstaller/medit.iss
diff --git a/make-pot-subdirs b/make-pot-subdirs
new file mode 100644
index 00000000..de761707
--- /dev/null
+++ b/make-pot-subdirs
@@ -0,0 +1,10 @@
+#!/bin/sh
+
+if test "x$1" = "x"; then
+    echo usage: $0 srcdir
+    exit 1
+fi
+
+potfiles=`cat $1/po/POTFILES.in` && \
+for potfile in $potfiles; do mkdir -p `dirname $potfile`; done && \
+echo stamp > pot-subdirs-stamp
diff --git a/moo/mooapp/Makefile.am b/moo/mooapp/Makefile.am
index ff1971d0..5055896a 100644
--- a/moo/mooapp/Makefile.am
+++ b/moo/mooapp/Makefile.am
@@ -1,10 +1,3 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p glade
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 BUILT_SOURCES =			\
 	mooappabout-glade.h
 
@@ -41,7 +34,7 @@ endif
 
 XML2H = $(srcdir)/../mooutils/xml2h.sh
 mooappabout-glade.h: $(srcdir)/glade/mooappabout.glade $(XML2H)
-	sh $(XML2H) MOO_APP_ABOUT_GLADE_UI $(srcdir)/glade/mooappabout.glade > mooappabout-glade.h
+	$(SHELL) $(XML2H) MOO_APP_ABOUT_GLADE_UI $(srcdir)/glade/mooappabout.glade > mooappabout-glade.h
 
 noinst_LTLIBRARIES = libmooapp.la
 libmooapp_la_SOURCES = $(mooapp_sources)
diff --git a/moo/mooedit/Makefile.am b/moo/mooedit/Makefile.am
index 2b1e17b0..dc4034e9 100644
--- a/moo/mooedit/Makefile.am
+++ b/moo/mooedit/Makefile.am
@@ -1,10 +1,3 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p glade
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 SUBDIRS = plugins syntax
 
 mooedit_toolsdir = $(MOO_DATA_DIR)
@@ -126,31 +119,31 @@ BUILT_SOURCES =                        \
 
 XML2H = $(srcdir)/../mooutils/xml2h.sh
 mootextgotoline-glade.h: $(srcdir)/glade/mootextgotoline.glade $(XML2H)
-	sh $(XML2H) MOO_TEXT_GOTO_LINE_GLADE_UI $(srcdir)/glade/mootextgotoline.glade \
+	$(SHELL) $(XML2H) MOO_TEXT_GOTO_LINE_GLADE_UI $(srcdir)/glade/mootextgotoline.glade \
 		> mootextgotoline-glade.h
 mootextfind-glade.h: $(srcdir)/glade/mootextfind.glade $(XML2H)
-	sh $(XML2H) MOO_TEXT_FIND_GLADE_UI $(srcdir)/glade/mootextfind.glade \
+	$(SHELL) $(XML2H) MOO_TEXT_FIND_GLADE_UI $(srcdir)/glade/mootextfind.glade \
 		> mootextfind-glade.h
 mooeditprefs-glade.h: $(srcdir)/glade/mooeditprefs.glade $(XML2H)
-	sh $(XML2H) MOO_EDIT_PREFS_GLADE_UI $(srcdir)/glade/mooeditprefs.glade \
+	$(SHELL) $(XML2H) MOO_EDIT_PREFS_GLADE_UI $(srcdir)/glade/mooeditprefs.glade \
 		> mooeditprefs-glade.h
 mooeditprogress-glade.h: $(srcdir)/glade/mooeditprogress.glade $(XML2H)
-	sh $(XML2H) MOO_EDIT_PROGRESS_GLADE_XML $(srcdir)/glade/mooeditprogress.glade \
+	$(SHELL) $(XML2H) MOO_EDIT_PROGRESS_GLADE_XML $(srcdir)/glade/mooeditprogress.glade \
 		> mooeditprogress-glade.h
 moopluginprefs-glade.h: $(srcdir)/glade/moopluginprefs.glade $(XML2H)
-	sh $(XML2H) MOO_PLUGIN_PREFS_GLADE_UI $(srcdir)/glade/moopluginprefs.glade \
+	$(SHELL) $(XML2H) MOO_PLUGIN_PREFS_GLADE_UI $(srcdir)/glade/moopluginprefs.glade \
 		> moopluginprefs-glade.h
 mooeditsavemultiple-glade.h: $(srcdir)/glade/mooeditsavemult.glade $(XML2H)
-	sh $(XML2H) MOO_EDIT_SAVE_MULTIPLE_GLADE_UI $(srcdir)/glade/mooeditsavemult.glade \
+	$(SHELL) $(XML2H) MOO_EDIT_SAVE_MULTIPLE_GLADE_UI $(srcdir)/glade/mooeditsavemult.glade \
 		> mooeditsavemultiple-glade.h
 quicksearch-glade.h: $(srcdir)/glade/quicksearch.glade $(XML2H)
-	sh $(XML2H) QUICK_SEARCH_GLADE_XML $(srcdir)/glade/quicksearch.glade \
+	$(SHELL) $(XML2H) QUICK_SEARCH_GLADE_XML $(srcdir)/glade/quicksearch.glade \
 		> quicksearch-glade.h
 statusbar-glade.h: $(srcdir)/glade/statusbar.glade $(XML2H)
-	sh $(XML2H) STATUSBAR_GLADE_XML $(srcdir)/glade/statusbar.glade \
+	$(SHELL) $(XML2H) STATUSBAR_GLADE_XML $(srcdir)/glade/statusbar.glade \
 		> statusbar-glade.h
 mooprint-glade.h: $(srcdir)/glade/mooprint.glade $(XML2H)
-	sh $(XML2H) MOO_PRINT_GLADE_XML $(srcdir)/glade/mooprint.glade \
+	$(SHELL) $(XML2H) MOO_PRINT_GLADE_XML $(srcdir)/glade/mooprint.glade \
 		> mooprint-glade.h
 
 EXTRA_DIST =				\
diff --git a/moo/mooedit/plugins/Makefile.am b/moo/mooedit/plugins/Makefile.am
index 915f0af3..9dc65cd7 100644
--- a/moo/mooedit/plugins/Makefile.am
+++ b/moo/mooedit/plugins/Makefile.am
@@ -16,7 +16,7 @@ EXTRA_DIST =			\
 
 XML2H = $(srcdir)/../../mooutils/xml2h.sh
 moofind-glade.h: moofind.glade $(XML2H)
-	sh $(XML2H) MOO_FIND_GLADE_XML $(srcdir)/moofind.glade > moofind-glade.h
+	$(SHELL) $(XML2H) MOO_FIND_GLADE_XML $(srcdir)/moofind.glade > moofind-glade.h
 
 unix_sources =			\
 	moofind.c		\
diff --git a/moo/mooedit/plugins/activestrings/Makefile.am b/moo/mooedit/plugins/activestrings/Makefile.am
index 796ce1a6..eece0b45 100644
--- a/moo/mooedit/plugins/activestrings/Makefile.am
+++ b/moo/mooedit/plugins/activestrings/Makefile.am
@@ -19,7 +19,7 @@ BUILT_SOURCES =			\
 
 XML2H = $(srcdir)/../../../mooutils/xml2h.sh
 as-plugin-glade.h: as-plugin.glade $(XML2H)
-	sh $(XML2H) AS_PLUGIN_GLADE_UI $(srcdir)/as-plugin.glade > as-plugin-glade.h
+	$(SHELL) $(XML2H) AS_PLUGIN_GLADE_UI $(srcdir)/as-plugin.glade > as-plugin-glade.h
 
 noinst_LTLIBRARIES = libastrings.la
 libastrings_la_SOURCES = $(astrings_sources)
diff --git a/moo/mooedit/plugins/fileselector/Makefile.am b/moo/mooedit/plugins/fileselector/Makefile.am
index 689c7be8..b0d5d061 100644
--- a/moo/mooedit/plugins/fileselector/Makefile.am
+++ b/moo/mooedit/plugins/fileselector/Makefile.am
@@ -15,9 +15,9 @@ BUILT_SOURCES =				\
 
 XML2H = $(srcdir)/../../../mooutils/xml2h.sh
 moofileselector-glade.h: moofileselector.glade $(XML2H)
-	sh $(XML2H) MOO_FILE_SELECTOR_GLADE_XML $(srcdir)/moofileselector.glade > moofileselector-glade.h
+	$(SHELL) $(XML2H) MOO_FILE_SELECTOR_GLADE_XML $(srcdir)/moofileselector.glade > moofileselector-glade.h
 moofileselector-prefs-glade.h: moofileselector-prefs.glade $(XML2H)
-	sh $(XML2H) MOO_FILE_SELECTOR_PREFS_GLADE_XML $(srcdir)/moofileselector-prefs.glade > moofileselector-prefs-glade.h
+	$(SHELL) $(XML2H) MOO_FILE_SELECTOR_PREFS_GLADE_XML $(srcdir)/moofileselector-prefs.glade > moofileselector-prefs-glade.h
 
 noinst_LTLIBRARIES = libfileselector.la
 libfileselector_la_SOURCES = $(fileselector_sources)
diff --git a/moo/moofileview/Makefile.am b/moo/moofileview/Makefile.am
index 6efa9a9c..a3f68a02 100644
--- a/moo/moofileview/Makefile.am
+++ b/moo/moofileview/Makefile.am
@@ -1,10 +1,3 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p glade
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 moofileview_headers =	        \
 	moofileview.h
 
@@ -69,15 +62,15 @@ symlink.h: $(moofileview_pixmaps)
 XML2H = $(srcdir)/../mooutils/xml2h.sh
 
 moofileview-ui.h: $(srcdir)/moofileview-ui.xml $(XML2H)
-	sh $(XML2H) MOO_FILE_VIEW_UI $(srcdir)/moofileview-ui.xml > moofileview-ui.h
+	$(SHELL) $(XML2H) MOO_FILE_VIEW_UI $(srcdir)/moofileview-ui.xml > moofileview-ui.h
 moofileprops-glade.h: $(srcdir)/glade/moofileprops.glade $(XML2H)
-	sh $(XML2H) MOO_FILE_PROPS_GLADE_UI $(srcdir)/glade/moofileprops.glade > moofileprops-glade.h
+	$(SHELL) $(XML2H) MOO_FILE_PROPS_GLADE_UI $(srcdir)/glade/moofileprops.glade > moofileprops-glade.h
 moocreatefolder-glade.h: $(srcdir)/glade/moocreatefolder.glade $(XML2H)
-	sh $(XML2H) MOO_CREATE_FOLDER_GLADE_UI $(srcdir)/glade/moocreatefolder.glade > moocreatefolder-glade.h
+	$(SHELL) $(XML2H) MOO_CREATE_FOLDER_GLADE_UI $(srcdir)/glade/moocreatefolder.glade > moocreatefolder-glade.h
 moobookmarkmgr-glade.h: $(srcdir)/glade/bookmark_editor.glade $(XML2H)
-	sh $(XML2H) MOO_BOOKMARK_MGR_GLADE_UI $(srcdir)/glade/bookmark_editor.glade > moobookmarkmgr-glade.h
+	$(SHELL) $(XML2H) MOO_BOOKMARK_MGR_GLADE_UI $(srcdir)/glade/bookmark_editor.glade > moobookmarkmgr-glade.h
 moofileviewdrop-glade.h: $(srcdir)/glade/drop.glade $(XML2H)
-	sh $(XML2H) MOO_FILE_VIEW_DROP_GLADE_UI $(srcdir)/glade/drop.glade > moofileviewdrop-glade.h
+	$(SHELL) $(XML2H) MOO_FILE_VIEW_DROP_GLADE_UI $(srcdir)/glade/drop.glade > moofileviewdrop-glade.h
 
 
 EXTRA_DIST =				\
diff --git a/moo/moopython/plugins/pyproject/Makefile.am b/moo/moopython/plugins/pyproject/Makefile.am
index 598a6d2d..a8cbb423 100644
--- a/moo/moopython/plugins/pyproject/Makefile.am
+++ b/moo/moopython/plugins/pyproject/Makefile.am
@@ -1,16 +1,7 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p projects/cproj
-	mkdir -p projects/ltxproj
-	mkdir -p mprj/config
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 ini_in_files = project-plugin.ini.desktop.in
 @MOO_INTLTOOL_INI_RULE@
 ini_files = $(ini_in_files:.ini.desktop.in=.ini)
-CLEANFILES += $(ini_files)
+CLEANFILES = $(ini_files)
 
 inidir = $(MOO_LIB_DIR)/plugins
 ini_DATA =				\
diff --git a/moo/moopython/pygtk/Makefile.am b/moo/moopython/pygtk/Makefile.am
index d70864de..f12e9c78 100644
--- a/moo/moopython/pygtk/Makefile.am
+++ b/moo/moopython/pygtk/Makefile.am
@@ -131,15 +131,15 @@ mooapp-pygtk.c: mooapp-pygtk.defs mooapp-pygtk.override $(codegen_files)
 
 PY2H = $(srcdir)/../../mooutils/py2h.sh
 moo-mod.h: $(srcdir)/moo-mod.py $(PY2H)
-	sh $(PY2H) MOO_PY $(srcdir)/moo-mod.py > moo-mod.h
+	$(SHELL) $(PY2H) MOO_PY $(srcdir)/moo-mod.py > moo-mod.h
 mooedit-mod.h: $(srcdir)/mooedit-mod.py $(PY2H)
-	sh $(PY2H) MOO_EDIT_PY $(srcdir)/mooedit-mod.py > mooedit-mod.h
+	$(SHELL) $(PY2H) MOO_EDIT_PY $(srcdir)/mooedit-mod.py > mooedit-mod.h
 mooapp-mod.h: mooapp-mod.py $(PY2H)
-	sh $(PY2H) MOO_APP_PY $(srcdir)/mooapp-mod.py > mooapp-mod.h
+	$(SHELL) $(PY2H) MOO_APP_PY $(srcdir)/mooapp-mod.py > mooapp-mod.h
 mooutils-mod.h: mooutils-mod.py $(PY2H)
-	sh $(PY2H) MOO_UTILS_PY $(srcdir)/mooutils-mod.py > mooutils-mod.h
+	$(SHELL) $(PY2H) MOO_UTILS_PY $(srcdir)/mooutils-mod.py > mooutils-mod.h
 mooterm-mod.h: mooterm-mod.py $(PY2H)
-	sh $(PY2H) MOO_TERM_PY $(srcdir)/mooterm-mod.py > mooterm-mod.h
+	$(SHELL) $(PY2H) MOO_TERM_PY $(srcdir)/mooterm-mod.py > mooterm-mod.h
 
 
 if MOO_OS_UNIX
diff --git a/moo/mooterm/Makefile.am b/moo/mooterm/Makefile.am
index 346a725c..774a161a 100644
--- a/moo/mooterm/Makefile.am
+++ b/moo/mooterm/Makefile.am
@@ -1,10 +1,3 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p glade
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 mooterm_include_headers =	       \
 	mooterm.h                      \
 	mootermwindow.h                \
@@ -76,7 +69,7 @@ mootermparser_yacc: mootermparser-yacc.y
 
 XML2H = $(srcdir)/../mooutils/xml2h.sh
 mootermprefs-glade.h: glade/mootermprefs.glade $(XML2H)
-	sh $(XML2H) MOO_TERM_PREFS_GLADE_UI $(srcdir)/glade/mootermprefs.glade \
+	$(SHELL) $(XML2H) MOO_TERM_PREFS_GLADE_UI $(srcdir)/glade/mootermprefs.glade \
 		> mootermprefs-glade.h
 
 
@@ -107,7 +100,7 @@ if MOO_OS_CYGWIN
 noinst_PROGRAMS = termhelper
 termhelper_SOURCES = $(termhelper_sources)
 nodist_termhelper_SOURCES = termhelper_res.res
-CLEANFILES += termhelper_res.res
+CLEANFILES = termhelper_res.res
 termhelper_CFLAGS =                         \
     -I$(top_builddir)                       \
     -I$(top_srcdir)                         \
@@ -121,5 +114,5 @@ termhelper_LDADD = termhelper_res.res
 else
 termhelper_res.res: termhelper_res.rc
 	touch termhelper_res.res
-CLEANFILES += termhelper_res.res
+CLEANFILES = termhelper_res.res
 endif
diff --git a/moo/mooutils/Makefile.am b/moo/mooutils/Makefile.am
index 018a91b8..53c13541 100644
--- a/moo/mooutils/Makefile.am
+++ b/moo/mooutils/Makefile.am
@@ -1,10 +1,3 @@
-# make intltool happy
-all-am: subdirs-stamp
-subdirs-stamp:
-	mkdir -p glade
-	echo stamp > subdirs-stamp
-CLEANFILES = subdirs-stamp
-
 DIST_SUBDIRS = pcre xdgmime
 
 subdirs =
@@ -137,7 +130,7 @@ endif
 nodist_mooutils_sources =		\
 	moomarshals.c			\
 	moomarshals.h
-CLEANFILES +=				\
+CLEANFILES =				\
 	moomarshals.c			\
 	moomarshals.h
 
@@ -178,13 +171,13 @@ moomarshals.h: moomarshals.list
 
 XML2H = $(srcdir)/xml2h.sh
 mooaccelbutton-glade.h: $(srcdir)/glade/accelbutton.glade $(XML2H)
-	sh $(XML2H) MOO_ACCEL_BUTTON_GLADE_UI \
+	$(SHELL) $(XML2H) MOO_ACCEL_BUTTON_GLADE_UI \
 	   $(srcdir)/glade/accelbutton.glade > mooaccelbutton-glade.h
 mooaccelprefs-glade.h: $(srcdir)/glade/accelprefs.glade $(XML2H)
-	sh $(XML2H) MOO_ACCEL_PREFS_GLADE_UI \
+	$(SHELL) $(XML2H) MOO_ACCEL_PREFS_GLADE_UI \
 	   $(srcdir)/glade/accelprefs.glade > mooaccelprefs-glade.h
 moologwindow-glade.h: $(srcdir)/glade/moologwindow.glade $(XML2H)
-	sh $(XML2H) MOO_LOG_WINDOW_GLADE_UI \
+	$(SHELL) $(XML2H) MOO_LOG_WINDOW_GLADE_UI \
 	   $(srcdir)/glade/moologwindow.glade > moologwindow-glade.h
 
 mooutils_pixmaps =			\
diff --git a/po/POTFILES.in b/po/POTFILES.in
index 2ff08763..c48081df 100644
--- a/po/POTFILES.in
+++ b/po/POTFILES.in
@@ -1,4 +1,3 @@
-[encoding: UTF-8]
 medit.desktop.in
 tests/medit-ui.xml
 
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 4a28b794..ac58d0d0 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -22,11 +22,12 @@ EXTRA_DIST =		\
 
 BUILT_SOURCES = medit-ui.h THANKS.h
 
-medit-ui.h: medit-ui.xml
-	sh $(srcdir)/../moo/mooutils/xml2h.sh MEDIT_UI $(srcdir)/medit-ui.xml > medit-ui.h.tmp && \
+XML2H = $(srcdir)/../moo/mooutils/xml2h.sh
+medit-ui.h: medit-ui.xml $(XML2H)
+	$(SHELL) $(XML2H) MEDIT_UI $(srcdir)/medit-ui.xml > medit-ui.h.tmp && \
 	mv medit-ui.h.tmp medit-ui.h
-THANKS.h: ../THANKS
-	sh $(srcdir)/../moo/mooutils/xml2h.sh THANKS $(srcdir)/../THANKS > THANKS.h
+THANKS.h: ../THANKS $(XML2H)
+	$(SHELL) $(XML2H) THANKS $(srcdir)/../THANKS > THANKS.h
 
 # medit-app.c is not in BUILT_SOURCES, so the target must use absolute path to it
 $(srcdir)/medit-app.c: medit-app.opag medit-ui.h