diff --git a/src/Orchard.Tests/Environment/Configuration/AppDataFolderTests.cs b/src/Orchard.Tests/Environment/Configuration/AppDataFolderTests.cs
index c6797050b..d2895ed73 100644
--- a/src/Orchard.Tests/Environment/Configuration/AppDataFolderTests.cs
+++ b/src/Orchard.Tests/Environment/Configuration/AppDataFolderTests.cs
@@ -19,6 +19,7 @@ namespace Orchard.Tests.Environment.Configuration {
             Directory.CreateDirectory(Path.Combine(_tempFolder, "alpha"));
             File.WriteAllText(Path.Combine(_tempFolder, "alpha\\beta.txt"), "beta-content");
             File.WriteAllText(Path.Combine(_tempFolder, "alpha\\gamma.txt"), "gamma-content");
+            Directory.CreateDirectory(Path.Combine(_tempFolder, "alpha\\omega"));
 
             _appDataFolder = new AppDataFolder();
             _appDataFolder.SetBasePath(_tempFolder);
@@ -49,5 +50,32 @@ namespace Orchard.Tests.Environment.Configuration {
             Assert.That(physicalPath, Is.EqualTo(Path.Combine(_tempFolder, "delta\\epsilon.txt")));
         }
 
+        [Test]
+        public void ListSubdirectoriesShouldContainFullSubpath() {
+            var files = _appDataFolder.ListDirectories("alpha");
+            Assert.That(files.Count(), Is.EqualTo(1));
+            Assert.That(files, Has.Some.EqualTo("alpha\\omega"));
+        }
+
+        [Test]
+        public void ListSubdirectoriesShouldWorkInRoot() {
+            var files = _appDataFolder.ListDirectories("");
+            Assert.That(files.Count(), Is.EqualTo(1));
+            Assert.That(files, Has.Some.EqualTo("alpha"));
+        }
+
+
+        [Test]
+        public void NonExistantFolderShouldListDirectoriesAsEmptyCollection() {
+            var files = _appDataFolder.ListDirectories("delta");
+            Assert.That(files.Count(), Is.EqualTo(0));
+        }
+
+        [Test]
+        public void CreateFileWillCauseDirectoryToBeCreated() {
+            Assert.That(Directory.Exists(Path.Combine(_tempFolder, "alpha\\omega\\foo")), Is.False);
+            _appDataFolder.CreateFile("alpha\\omega\\foo\\bar.txt", "quux");
+            Assert.That(Directory.Exists(Path.Combine(_tempFolder, "alpha\\omega\\foo")), Is.True);
+        }
     }
 }
diff --git a/src/Orchard.Web/Modules/Orchard.Setup/Controllers/SetupController.cs b/src/Orchard.Web/Modules/Orchard.Setup/Controllers/SetupController.cs
index ab462a375..200bafb14 100644
--- a/src/Orchard.Web/Modules/Orchard.Setup/Controllers/SetupController.cs
+++ b/src/Orchard.Web/Modules/Orchard.Setup/Controllers/SetupController.cs
@@ -62,7 +62,7 @@ namespace Orchard.Setup.Controllers {
 
             try {
                 var shellSettings = new ShellSettings {
-                    Name = "default",
+                    Name = "Default",
                     DataProvider = model.DatabaseOptions ? "SQLite" : "SqlServer",
                     DataConnectionString = model.DatabaseConnectionString
                 };
diff --git a/src/Orchard/Environment/Configuration/AppDataFolder.cs b/src/Orchard/Environment/Configuration/AppDataFolder.cs
index 13fdea458..fd235f784 100644
--- a/src/Orchard/Environment/Configuration/AppDataFolder.cs
+++ b/src/Orchard/Environment/Configuration/AppDataFolder.cs
@@ -12,6 +12,7 @@ namespace Orchard.Environment.Configuration {
     /// </summary>
     public interface IAppDataFolder {
         IEnumerable<string> ListFiles(string path);
+        IEnumerable<string> ListDirectories(string path);
 
         void CreateFile(string path, string content);
         void DeleteFile(string path);
@@ -36,7 +37,11 @@ namespace Orchard.Environment.Configuration {
         }
 
         public void CreateFile(string path, string content) {
-            File.WriteAllText(Path.Combine(_basePath, path), content);
+            var filePath = Path.Combine(_basePath, path);
+            var folderPath = Path.GetDirectoryName(filePath);
+            if (!Directory.Exists(folderPath))
+                Directory.CreateDirectory(folderPath);
+            File.WriteAllText(filePath, content);
         }
 
         public void DeleteFile(string path) {
@@ -56,6 +61,19 @@ namespace Orchard.Environment.Configuration {
             });
         }
 
+        public IEnumerable<string> ListDirectories(string path) {
+            var directoryPath = Path.Combine(_basePath, path);
+            if (!Directory.Exists(directoryPath))
+                return Enumerable.Empty<string>();
+
+            var files = Directory.GetDirectories(directoryPath);
+
+            return files.Select(file => {
+                var fileName = Path.GetFileName(file);
+                return Path.Combine(path, fileName);
+            });
+        }
+
         public string CreateDirectory(string path) {
             var directory = Path.Combine(_basePath, path);
             if (!Directory.Exists(directory))
diff --git a/src/Orchard/Environment/Configuration/ShellSettingsLoader.cs b/src/Orchard/Environment/Configuration/ShellSettingsLoader.cs
index 88fc36830..7fabb3d71 100644
--- a/src/Orchard/Environment/Configuration/ShellSettingsLoader.cs
+++ b/src/Orchard/Environment/Configuration/ShellSettingsLoader.cs
@@ -32,9 +32,8 @@ namespace Orchard.Environment.Configuration {
             if (string.IsNullOrEmpty(settings.Name))
                 throw new ArgumentException(T("Settings \"Name\" is not set.").ToString());
 
-
-            var filePath = Path.Combine("Sites", settings.Name + ".txt");
-            _appDataFolder.CreateFile(filePath, ComposeSettings(settings));
+            var settingsFile = Path.Combine(Path.Combine("Sites", settings.Name), "Settings.txt");
+            _appDataFolder.CreateFile(settingsFile, ComposeSettings(settings));
         }
 
         IEnumerable<IShellSettings> LoadSettings() {
@@ -44,11 +43,10 @@ namespace Orchard.Environment.Configuration {
         }
 
         IEnumerable<YamlDocument> LoadFiles() {
-            var filePaths = _appDataFolder.ListFiles("Sites")
-                .Where(path => path.EndsWith(".txt", StringComparison.InvariantCultureIgnoreCase));
+            var sitePaths = _appDataFolder.ListDirectories("Sites");
 
-            foreach (var filePath in filePaths) {
-                var yamlStream = YamlParser.Load(_appDataFolder.MapPath(filePath));
+            foreach (var sitePath in sitePaths) {
+                var yamlStream = YamlParser.Load(_appDataFolder.MapPath(Path.Combine(sitePath, "Settings.txt")));
                 yield return yamlStream.Documents.Single();
             }
         }