diff --git a/doomsday/tools/shell/shell-gui/res/shell.qrc b/doomsday/tools/shell/shell-gui/res/shell.qrc
index a84df3ff12..1bea5003ce 100644
--- a/doomsday/tools/shell/shell-gui/res/shell.qrc
+++ b/doomsday/tools/shell/shell-gui/res/shell.qrc
@@ -2,5 +2,6 @@
     <qresource prefix="/images">
         <file>shell.png</file>
         <file>shell@2x.png</file>
+        <file>toolbar_placeholder.png</file>
     </qresource>
 </RCC>
diff --git a/doomsday/tools/shell/shell-gui/res/toolbar_placeholder.png b/doomsday/tools/shell/shell-gui/res/toolbar_placeholder.png
new file mode 100644
index 0000000000..c069b1ee35
Binary files /dev/null and b/doomsday/tools/shell/shell-gui/res/toolbar_placeholder.png differ
diff --git a/doomsday/tools/shell/shell-gui/shell-gui.pro b/doomsday/tools/shell/shell-gui/shell-gui.pro
index 0cf73e10fd..0535cb3148 100644
--- a/doomsday/tools/shell/shell-gui/shell-gui.pro
+++ b/doomsday/tools/shell/shell-gui/shell-gui.pro
@@ -69,3 +69,15 @@ else {
     INSTALLS += target
     target.path = $$DENG_BIN_DIR
 }
+
+HEADERS += \
+    src/folderselection.h
+
+SOURCES += \
+    src/folderselection.cpp
+
+HEADERS += \
+    src/preferences.h
+
+SOURCES += \
+    src/preferences.cpp
diff --git a/doomsday/tools/shell/shell-gui/src/folderselection.cpp b/doomsday/tools/shell/shell-gui/src/folderselection.cpp
new file mode 100644
index 0000000000..0cfaee7180
--- /dev/null
+++ b/doomsday/tools/shell/shell-gui/src/folderselection.cpp
@@ -0,0 +1,87 @@
+/** @file folderselection.cpp  Widget for selecting a folder.
+ *
+ * @authors Copyright © 2013 Jaakko Keränen <jaakko.keranen@iki.fi>
+ *
+ * @par License
+ * GPL: http://www.gnu.org/licenses/gpl.html
+ *
+ * <small>This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by the
+ * Free Software Foundation; either version 2 of the License, or (at your
+ * option) any later version. This program is distributed in the hope that it
+ * will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty
+ * of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General
+ * Public License for more details. You should have received a copy of the GNU
+ * General Public License along with this program; if not, see:
+ * http://www.gnu.org/licenses</small>
+ */
+
+#include "folderselection.h"
+#include <QLineEdit>
+#include <QPushButton>
+#include <QHBoxLayout>
+#include <QFileDialog>
+
+DENG2_PIMPL(FolderSelection)
+{
+    QString prompt;
+    QLineEdit *edit;
+    QPushButton *button;
+
+    Instance(Public &i) : Base(i),
+        edit(0),
+        button(0)
+    {
+        /*
+        // What's up with the extra spacing?
+        QPalette pal = self.palette();
+        pal.setColor(self.backgroundRole(), Qt::red);
+        self.setPalette(pal);
+        self.setAutoFillBackground(true);
+        */
+
+        QHBoxLayout *layout = new QHBoxLayout;
+        layout->setContentsMargins(0, 0, 0, 0);
+        self.setLayout(layout);
+
+        edit = new QLineEdit;
+        edit->setMinimumWidth(280);
+        button = new QPushButton(tr("..."));
+
+        layout->addWidget(edit, 1);
+        layout->addWidget(button, 0);
+    }
+};
+
+FolderSelection::FolderSelection(QString const &prompt, QWidget *parent)
+    : QWidget(parent), d(new Instance(*this))
+{
+    d->prompt = prompt;
+
+    connect(d->button, SIGNAL(clicked()), this, SLOT(selectFolder()));
+}
+
+FolderSelection::~FolderSelection()
+{
+    delete d;
+}
+
+void FolderSelection::setPath(de::NativePath const &path)
+{
+    d->edit->setText(path.toString());
+}
+
+de::NativePath FolderSelection::path() const
+{
+    return d->edit->text();
+}
+
+void FolderSelection::selectFolder()
+{
+    QString dir = QFileDialog::getExistingDirectory(0, d->prompt, d->edit->text());
+    if(!dir.isEmpty())
+    {
+        d->edit->setText(dir);
+        emit selected();
+    }
+}
diff --git a/doomsday/tools/shell/shell-gui/src/folderselection.h b/doomsday/tools/shell/shell-gui/src/folderselection.h
new file mode 100644
index 0000000000..f43308e252
--- /dev/null
+++ b/doomsday/tools/shell/shell-gui/src/folderselection.h
@@ -0,0 +1,52 @@
+/** @file folderselection.h  Widget for selecting a folder.
+ *
+ * @authors Copyright © 2013 Jaakko Keränen <jaakko.keranen@iki.fi>
+ *
+ * @par License
+ * GPL: http://www.gnu.org/licenses/gpl.html
+ *
+ * <small>This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by the
+ * Free Software Foundation; either version 2 of the License, or (at your
+ * option) any later version. This program is distributed in the hope that it
+ * will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty
+ * of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General
+ * Public License for more details. You should have received a copy of the GNU
+ * General Public License along with this program; if not, see:
+ * http://www.gnu.org/licenses</small>
+ */
+
+#ifndef FOLDERSELECTION_H
+#define FOLDERSELECTION_H
+
+#include <de/libdeng2.h>
+#include <de/NativePath>
+#include <QWidget>
+
+/**
+ * Widget for selecting a folder.
+ */
+class FolderSelection : public QWidget
+{
+    Q_OBJECT
+
+public:
+    explicit FolderSelection(QString const &prompt, QWidget *parent = 0);
+    virtual ~FolderSelection();
+
+    void setPath(de::NativePath const &path);
+
+    de::NativePath path() const;
+    
+signals:
+    void selected();
+    
+public slots:
+    void selectFolder();
+    
+private:
+    struct Instance;
+    Instance *d;
+};
+
+#endif // FOLDERSELECTION_H
diff --git a/doomsday/tools/shell/shell-gui/src/guishellapp.cpp b/doomsday/tools/shell/shell-gui/src/guishellapp.cpp
index dd6655c8c8..9aed3c9a97 100644
--- a/doomsday/tools/shell/shell-gui/src/guishellapp.cpp
+++ b/doomsday/tools/shell/shell-gui/src/guishellapp.cpp
@@ -21,6 +21,7 @@
 #include "opendialog.h"
 #include "aboutdialog.h"
 #include "localserverdialog.h"
+#include "preferences.h"
 #include <de/shell/LocalServer>
 #include <de/shell/ServerFinder>
 #include <QMenuBar>
@@ -42,6 +43,11 @@ struct GuiShellApp::Instance
 #endif
     QList<LinkWindow *> windows;
 
+    Preferences *prefs;
+
+    Instance() : prefs(0)
+    {}
+
     ~Instance()
     {
         foreach(LinkWindow *win, windows)
@@ -87,7 +93,8 @@ GuiShellApp::GuiShellApp(int &argc, char **argv)
 
     connect(svMenu, SIGNAL(aboutToShow()), this, SLOT(updateMenu()));
 
-    // This will appear in the application menu:
+    // These will appear in the application menu:
+    menu->addAction(tr("Preferences..."), this, SLOT(showPreferences()), QKeySequence(tr("Ctrl+,")));
     menu->addAction(tr("About"), this, SLOT(aboutShell()));
 #endif
 
@@ -248,6 +255,26 @@ void GuiShellApp::aboutShell()
     AboutDialog().exec();
 }
 
+void GuiShellApp::showPreferences()
+{
+    if(!d->prefs)
+    {
+        d->prefs = new Preferences;
+        connect(d->prefs, SIGNAL(finished(int)), this, SLOT(preferencesDone()));
+        d->prefs->open();
+    }
+    else
+    {
+        d->prefs->activateWindow();
+    }
+}
+
+void GuiShellApp::preferencesDone()
+{
+    d->prefs->deleteLater();
+    d->prefs = 0;
+}
+
 void GuiShellApp::updateMenu()
 {
 #ifdef MACOSX
diff --git a/doomsday/tools/shell/shell-gui/src/guishellapp.h b/doomsday/tools/shell/shell-gui/src/guishellapp.h
index 1dccb3369a..45ac8a975b 100644
--- a/doomsday/tools/shell/shell-gui/src/guishellapp.h
+++ b/doomsday/tools/shell/shell-gui/src/guishellapp.h
@@ -48,6 +48,8 @@ public slots:
     void stopServer();
     void updateLocalServerMenu();
     void aboutShell();
+    void showPreferences();
+    void preferencesDone();
     void updateMenu();
 
 protected slots:
diff --git a/doomsday/tools/shell/shell-gui/src/linkwindow.cpp b/doomsday/tools/shell/shell-gui/src/linkwindow.cpp
index 50b09ec688..60cbe75cfd 100644
--- a/doomsday/tools/shell/shell-gui/src/linkwindow.cpp
+++ b/doomsday/tools/shell/shell-gui/src/linkwindow.cpp
@@ -149,6 +149,7 @@ LinkWindow::LinkWindow(QWidget *parent)
 
 #ifndef MACOSX
     QMenu *fileMenu = menuBar()->addMenu(tr("&File"));
+    fileMenu->addAction(tr("&Settings..."), app, SLOT(showPreferences()));
     fileMenu->addAction(tr("&Quit"), app, SLOT(quit()), QKeySequence(tr("Ctrl+Q")));
 
     // Menus are window-specific on non-Mac platforms.
@@ -201,9 +202,13 @@ LinkWindow::LinkWindow(QWidget *parent)
     statusBar()->addPermanentWidget(d->currentHost);
     statusBar()->addPermanentWidget(d->timeCounter);
 
+    QIcon icon(":/images/toolbar_placeholder.png");
+
     QToolBar *tools = addToolBar(tr("View"));
 
     d->statusButton = new QToolButton;
+    d->statusButton->setIcon(icon);
+    //d->statusButton->setToolButtonStyle(Qt::ToolButtonTextUnderIcon);
     d->statusButton->setFocusPolicy(Qt::NoFocus);
     d->statusButton->setText(tr("Status"));
     d->statusButton->setCheckable(true);
@@ -212,6 +217,8 @@ LinkWindow::LinkWindow(QWidget *parent)
     tools->addWidget(d->statusButton);
 
     d->consoleButton = new QToolButton;
+    d->consoleButton->setIcon(icon);
+    //d->consoleButton->setToolButtonStyle(Qt::ToolButtonTextUnderIcon);
     d->consoleButton->setFocusPolicy(Qt::NoFocus);
     d->consoleButton->setText(tr("Console"));
     d->consoleButton->setCheckable(true);
@@ -264,7 +271,7 @@ void LinkWindow::closeEvent(QCloseEvent *event)
         if(QMessageBox::question(
                     this,
                     tr("Close Connection?"),
-                    tr("Connection is still open. Do you want to close it?"),
+                    tr("Connection is still open. Do you want to close the window regardless?"),
                     QMessageBox::Close | QMessageBox::Cancel) == QMessageBox::Cancel)
         {
             event->ignore();
diff --git a/doomsday/tools/shell/shell-gui/src/localserverdialog.cpp b/doomsday/tools/shell/shell-gui/src/localserverdialog.cpp
index d3ddc2acc1..dab98c3bd8 100644
--- a/doomsday/tools/shell/shell-gui/src/localserverdialog.cpp
+++ b/doomsday/tools/shell/shell-gui/src/localserverdialog.cpp
@@ -17,6 +17,7 @@
  */
 
 #include "localserverdialog.h"
+#include "folderselection.h"
 #include <de/libdeng2.h>
 #include <de/shell/DoomsdayInfo>
 #include <QVBoxLayout>
@@ -28,6 +29,7 @@
 #include <QLabel>
 #include <QFileDialog>
 #include <QSettings>
+#include "preferences.h"
 
 using namespace de;
 using namespace de::shell;
@@ -38,8 +40,7 @@ DENG2_PIMPL(LocalServerDialog)
     QComboBox *games;
     QLineEdit *port;
     QLineEdit *options;
-    QLineEdit *folder;
-    QLineEdit *iwadFolder;
+    FolderSelection *runtime;
 
     Instance(Public &i) : Base(i)
     {
@@ -68,33 +69,14 @@ DENG2_PIMPL(LocalServerDialog)
         port->setToolTip(tr("Port must be between 0 and 65535."));
         form->addRow(tr("TCP port:"), port);
 
-        folder = new QLineEdit;
-        folder->setMinimumWidth(300);
-        folder->setText(st.value("LocalServer/runtime").toString());
-        if(folder->text().isEmpty())
+        runtime = new FolderSelection(tr("Select Runtime Folder"));
+        runtime->setPath(st.value("LocalServer/runtime").toString());
+        if(runtime->path().isEmpty())
         {
-            folder->setText(DoomsdayInfo::defaultServerRuntimeFolder().toString());
+            runtime->setPath(DoomsdayInfo::defaultServerRuntimeFolder().toString());
         }
-        form->addRow(tr("Runtime folder:"), folder);
-
-        QPushButton *folderButton = new QPushButton(tr("Select Folder"));
-        connect(folderButton, SIGNAL(clicked()), &self, SLOT(pickFolder()));
-        form->addRow(0, folderButton);
-#ifdef WIN32
-        folderButton->setMaximumWidth(100);
-#endif
-
-        iwadFolder = new QLineEdit;
-        iwadFolder->setMinimumWidth(300);
-        iwadFolder->setText(st.value("LocalServer/iwad").toString());
-        form->addRow(tr("IWAD folder:"), iwadFolder);
-
-        QPushButton *iwadFolderButton = new QPushButton(tr("Select Folder"));
-        connect(iwadFolderButton, SIGNAL(clicked()), &self, SLOT(pickIwadFolder()));
-        form->addRow(0, iwadFolderButton);
-#ifdef WIN32
-        iwadFolderButton->setMaximumWidth(100);
-#endif
+        form->addRow(tr("Runtime folder:"), runtime);
+        QObject::connect(runtime, SIGNAL(selected()), &self, SLOT(validate()));
 
         options = new QLineEdit;
         options->setMinimumWidth(300);
@@ -110,7 +92,6 @@ DENG2_PIMPL(LocalServerDialog)
         QObject::connect(no, SIGNAL(clicked()), &self, SLOT(reject()));
         QObject::connect(opt, SIGNAL(clicked()), &self, SLOT(configureGameOptions()));
         yes->setDefault(true);
-        yes->setAutoDefault(true);
     }
 };
 
@@ -141,33 +122,20 @@ QString LocalServerDialog::gameMode() const
 QStringList LocalServerDialog::additionalOptions() const
 {
     QStringList opts = d->options->text().split(' ', QString::SkipEmptyParts);
-    opts << "-iwad" << d->iwadFolder->text();
-    return opts;
-}
 
-NativePath LocalServerDialog::runtimeFolder() const
-{
-    return d->folder->text();
-}
-
-void LocalServerDialog::pickFolder()
-{
-    QString dir = QFileDialog::getExistingDirectory(this,
-                                                    tr("Select Runtime Folder"),
-                                                    d->folder->text());
-    if(!dir.isEmpty()) d->folder->setText(dir);
+    Preferences prefs;
+    NativePath iwadPath = prefs.iwadFolder();
+    if(!iwadPath.isEmpty())
+    {
+        opts << "-iwad" << iwadPath.toString();
+    }
 
-    validate();
+    return opts;
 }
 
-void LocalServerDialog::pickIwadFolder()
+NativePath LocalServerDialog::runtimeFolder() const
 {
-    QString dir = QFileDialog::getExistingDirectory(this,
-                                                    tr("Select IWAD Folder"),
-                                                    d->iwadFolder->text());
-    if(!dir.isEmpty()) d->iwadFolder->setText(dir);
-
-    validate();
+    return d->runtime->path();
 }
 
 void LocalServerDialog::configureGameOptions()
@@ -179,8 +147,8 @@ void LocalServerDialog::saveState()
     QSettings st;
     st.setValue("LocalServer/gameMode", d->games->itemData(d->games->currentIndex()).toString());
     st.setValue("LocalServer/port", d->port->text().toInt());
-    st.setValue("LocalServer/runtime", d->folder->text());
-    st.setValue("LocalServer/iwad", d->iwadFolder->text());
+    st.setValue("LocalServer/runtime", d->runtime->path().toString());
+    //st.setValue("LocalServer/iwad", d->iwadFolder->text());
     st.setValue("LocalServer/options", d->options->text());
 }
 
@@ -196,9 +164,10 @@ void LocalServerDialog::validate()
         isValid = false;
     }
 
-    if(d->folder->text().isEmpty()) isValid = false;
+    if(d->runtime->path().isEmpty()) isValid = false;
 
-    if(d->iwadFolder->text().isEmpty()) isValid = false;
+    //if(d->iwadFolder->text().isEmpty()) isValid = false;
 
     d->yes->setEnabled(isValid);
+    if(isValid) d->yes->setDefault(true);
 }
diff --git a/doomsday/tools/shell/shell-gui/src/localserverdialog.h b/doomsday/tools/shell/shell-gui/src/localserverdialog.h
index 8815f01558..9cc79e5173 100644
--- a/doomsday/tools/shell/shell-gui/src/localserverdialog.h
+++ b/doomsday/tools/shell/shell-gui/src/localserverdialog.h
@@ -36,8 +36,6 @@ class LocalServerDialog : public QDialog
     de::NativePath runtimeFolder() const;
 
 protected slots:
-    void pickFolder();
-    void pickIwadFolder();
     void configureGameOptions();
     void saveState();
     void validate();
diff --git a/doomsday/tools/shell/shell-gui/src/preferences.cpp b/doomsday/tools/shell/shell-gui/src/preferences.cpp
new file mode 100644
index 0000000000..bb8049f68a
--- /dev/null
+++ b/doomsday/tools/shell/shell-gui/src/preferences.cpp
@@ -0,0 +1,90 @@
+#include "preferences.h"
+#include "folderselection.h"
+#include <de/libdeng2.h>
+#include <QCheckBox>
+#include <QFormLayout>
+#include <QSettings>
+#include <QDialogButtonBox>
+#include <QPushButton>
+#include <QGroupBox>
+
+DENG2_PIMPL(Preferences)
+{
+    QCheckBox *useDefaultIwad;
+    FolderSelection *iwadFolder;
+
+    Instance(Public &i) : Base(i)
+    {
+        QSettings st;
+
+        self.setWindowTitle(tr("Preferences"));
+
+        QVBoxLayout *mainLayout = new QVBoxLayout;
+        self.setLayout(mainLayout);
+
+        mainLayout->addStretch(1);
+
+        QGroupBox *group = new QGroupBox(tr("IWAD Folder"));
+        mainLayout->addWidget(group);
+
+        useDefaultIwad = new QCheckBox(tr("Use Doomsday's configured IWAD folder"));
+        useDefaultIwad->setChecked(st.value("Preferences/defaultIwad", true).toBool());
+        useDefaultIwad->setToolTip(tr("Doomsday's IWAD folder can be configured using "
+                               "configuration files or environment variables."));
+
+        iwadFolder = new FolderSelection(tr("Select IWAD Folder"));
+        iwadFolder->setPath(st.value("Preferences/iwadFolder").toString());
+
+        QVBoxLayout *bl = new QVBoxLayout;
+        bl->addWidget(useDefaultIwad);
+        bl->addWidget(iwadFolder);
+        group->setLayout(bl);
+
+        mainLayout->addStretch(1);
+
+        // Buttons.
+        QDialogButtonBox *bbox = new QDialogButtonBox;
+        mainLayout->addWidget(bbox);
+        QPushButton *yes = bbox->addButton(tr("&OK"), QDialogButtonBox::YesRole);
+        QPushButton *no = bbox->addButton(tr("&Cancel"), QDialogButtonBox::RejectRole);
+        QPushButton *act = bbox->addButton(tr("&Apply"), QDialogButtonBox::ActionRole);
+        QObject::connect(yes, SIGNAL(clicked()), &self, SLOT(accept()));
+        QObject::connect(no, SIGNAL(clicked()), &self, SLOT(reject()));
+        QObject::connect(act, SIGNAL(clicked()), &self, SLOT(saveState()));
+        yes->setDefault(true);
+    }
+};
+
+Preferences::Preferences(QWidget *parent) :
+    QDialog(parent), d(new Instance(*this))
+{
+    connect(d->useDefaultIwad, SIGNAL(toggled(bool)), this, SLOT(validate()));
+    connect(this, SIGNAL(accepted()), this, SLOT(saveState()));
+    validate();
+}
+
+Preferences::~Preferences()
+{
+    delete d;
+}
+
+de::NativePath Preferences::iwadFolder() const
+{
+    if(!d->useDefaultIwad->isChecked())
+    {
+        return d->iwadFolder->path();
+    }
+    return "";
+}
+
+void Preferences::saveState()
+{
+    QSettings st;
+    st.setValue("Preferences/defaultIwad", d->useDefaultIwad->isChecked());
+    st.setValue("Preferences/iwadFolder", iwadFolder().toString());
+}
+
+void Preferences::validate()
+{
+    d->iwadFolder->setDisabled(d->useDefaultIwad->isChecked());
+}
diff --git a/doomsday/tools/shell/shell-gui/src/preferences.h b/doomsday/tools/shell/shell-gui/src/preferences.h
new file mode 100644
index 0000000000..66c80b8e34
--- /dev/null
+++ b/doomsday/tools/shell/shell-gui/src/preferences.h
@@ -0,0 +1,46 @@
+/** @file preferences.h  Widget for user preferences.
+ *
+ * @authors Copyright © 2013 Jaakko Keränen <jaakko.keranen@iki.fi>
+ *
+ * @par License
+ * GPL: http://www.gnu.org/licenses/gpl.html
+ *
+ * <small>This program is free software; you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by the
+ * Free Software Foundation; either version 2 of the License, or (at your
+ * option) any later version. This program is distributed in the hope that it
+ * will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty
+ * of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General
+ * Public License for more details. You should have received a copy of the GNU
+ * General Public License along with this program; if not, see:
+ * http://www.gnu.org/licenses</small>
+ */
+
+#ifndef PREFERENCES_H
+#define PREFERENCES_H
+
+#include <QDialog>
+#include <de/NativePath>
+
+class Preferences : public QDialog
+{
+    Q_OBJECT
+
+public:
+    explicit Preferences(QWidget *parent = 0);
+    ~Preferences();
+    
+    de::NativePath iwadFolder() const;
+
+signals:
+    
+public slots:
+    void saveState();
+    void validate();
+    
+private:
+    struct Instance;
+    Instance *d;
+};
+
+#endif // PREFERENCES_H