diff --git a/clite/core.js b/clite/core.js
index 2329495..0bb92f5 100644
--- a/clite/core.js
+++ b/clite/core.js
@@ -186,6 +186,33 @@ var clite = {
 				return true;
 			}
 
+			function defaultConfig() {
+				// /etc/env contains the default environment variables
+				vfsapi.mkFile('/etc/env');
+				var n = vfsapi.getNode('/etc/env');
+				if (!n) {
+					clite.log.write('environment failure');
+					return false;
+				}
+				n.data.content = `
+PATH=/bin
+`;
+				n.perms = '-rw-r--r--';
+				// /etc/passwd contains user account details
+				vfsapi.mkFile('/etc/passwd');
+				var n = vfsapi.getNode('/etc/passwd');
+				if (!n) {
+					clite.log.write('access config failure');
+					return false;
+				}
+				n.data.content = `
+root:x:0:0:root:/root:/bin/sh
+guest:x:1:1:guest:/usr/home/guest:/bin/sh
+`;
+				// TODO: check cookies for a local user
+				n.perms = '-rw-r--r--';
+			}
+
 			function init1() {
 				clite.log.write('CLIte Version '+clite.state.version);
 				// setup vfs
@@ -256,6 +283,9 @@ data/about.txt:/usr/share/site/about:0:0:-rw-rw-r--`;
 					fn.data.content = null;
 				}
 				clite.io.close(fd);
+				// populate /etc (mostly for environment)
+				clite.log.write('Populating /etc');
+				defaultConfig();
 				// populate /dev (data/filesys.txt is /dev/wfs already)
 				clite.log.write('Populating /dev');
 				defaultDevices();
@@ -422,7 +452,7 @@ clite.user = {
 			groups:[],
 			env:{
 				HOME:'/',
-				USER:udata.name,
+				USER:this.name,
 			}
 		};
 		clite.user.getUID = function() {
@@ -438,21 +468,64 @@ clite.user = {
 				return true;
 			return false;
 		}
-		function setLogin(user,uid,gid,groups) {
-			udata.name = user;
-			udata.uid = uid;
-			udata.gid = gid;
-			udata.groups = groups;
-			udata.env.HOME = '/usr/home/'+user;
-			udata.env.PWD = udata.env.HOME;
-			udata.env.USER = udata.name;
-			clite.shell.env.HOME = '/usr/home/'+user;
-			clite.shell.env.PWD = '/usr/home/'+user;
-			clite.shell.env.USER = user;
-			clite.shell.prompt.generate();
+		function setLogin(uid) {
+			var found = false;
+
+			var n = vfs.getFile('/etc/passwd');
+			if (!n)
+				return false;
+			var lines = n.split('\n');
+			lines.forEach(function(line) {
+				if (found)
+					return;
+				if (line[0] == '#')
+					return;
+				var sects = line.split(':');
+				// 0 username
+				// 1 null
+				// 2 uid
+				// 3 gid
+				// 4 real name
+				// 5 home dir
+				// 6 shell
+				if (sects.length != 7)
+					return;
+				if (parseInt(sects[2]) != uid)
+					return;
+				found = true;
+				udata.name = sects[0];
+				udata.uid = uid;
+				udata.gid = parseInt(sects[3]);
+				udata.env.HOME = sects[5];
+				udata.env.SHELL = sects[6];
+				udata.env.USER = udata.name;
+				udata.env.PWD = udata.env.HOME;
+			});
+
+			if (!found)
+				return false;
+
+			n = vfs.getFile('/etc/env');
+			if (!n)
+				return false;
+			lines = n.split('\n');
+			lines.forEach(function(line) {
+				if (line[0] == '#')
+					return;
+				var sects = line.split('=');
+				if (sects.length != 2)
+					return;
+				udata.env[sects[0].trim()] = sects[1].trim();
+			});
+
+			// TODO: read in data from /etc/groups
+			udata.groups = [];
+
 			clite.user.hasLogin = function() {
 				return true;
 			}
+
+			return true;
 		}
 		clite.user.genGuest = function() {
 			clite.term.clear();
@@ -464,8 +537,14 @@ clite.user = {
 				n.gid = 1;
 			}
 			vfs.mkLink('/usr/home/guest/web','/usr/share/site');
-			setLogin('guest',1,1,[]);
-			clite.term.events.refocus();
+
+			setLogin(1);
+
+			// should really have init/getty exec the shell with the env data etc
+			clite.shell.init();
+		}
+		clite.user.getEnv = function() {
+			return structuredClone(udata.env);
 		}
 		return false;
 	},
@@ -481,6 +560,9 @@ clite.user = {
 	hasLogin:function() { // check if we're in a user session
 		return false;
 	},
+	getEnv:function() { // get the current environment (variables)
+		return {};
+	},
 	genGuest:null
 };
 
@@ -1295,6 +1377,11 @@ clite.shell = {
 			clite.shell.reading.buff = e.target.value;
 		}
 	},
+	init:function() {
+		clite.shell.env = clite.user.getEnv();
+		clite.shell.prompt.generate();
+		clite.term.events.refocus();
+	},
 	exit:function(pid,v) {
 		if (pid > -1)
 			clite.proc.exit(pid);
@@ -1497,12 +1584,7 @@ clite.shell = {
 			return;
 		clite.shell.history.setCurrent(c+add);
 	},
-	env:{
-		USER:'root',
-		PWD:'/',
-		HOME:'/',
-		PATH:'/bin'
-	},
+	env:{},
 	macro:{
 		clear:function(args,io) {
 			clite.term.clear();
@@ -1824,7 +1906,7 @@ clite.lib = {
 			clite.shell.exit(pid,v);
 		}
 		clite.core.execSafeAsync(function() {
-			call(Object.create(env),io);
+			call(structuredClone(env),io);
 		});
 		return pid;
 	},