diff --git a/Makefile b/Makefile
index fbc771a2d..c4c7aa88b 100644
--- a/Makefile
+++ b/Makefile
@@ -1,7 +1,7 @@
 CC=g++
 CFLAGS=-c -Wall
 LDFLAGS=-lSDL -lSDL_ttf -lboost_system -lboost_filesystem
-SRCSOURCES=main.cpp Renderer.cpp Renderer_draw.cpp GuiComponent.cpp InputManager.cpp SystemData.cpp GameData.cpp components/GuiTitleScreen.cpp components/GuiList.cpp components/GuiGameList.cpp components/GuiInputConfig.cpp
+SRCSOURCES=main.cpp Renderer.cpp Renderer_draw.cpp GuiComponent.cpp InputManager.cpp SystemData.cpp GameData.cpp FolderData.cpp components/GuiTitleScreen.cpp components/GuiList.cpp components/GuiGameList.cpp components/GuiInputConfig.cpp
 SOURCES=$(addprefix src/,$(SRCSOURCES))
 OBJECTS=$(SOURCES:.cpp=.o)
 EXECUTABLE=emulationstation
diff --git a/src/FileData.h b/src/FileData.h
new file mode 100644
index 000000000..8a662b358
--- /dev/null
+++ b/src/FileData.h
@@ -0,0 +1,14 @@
+#ifndef _FILEDATA_H_
+#define _FILEDATA_H_
+
+#include <string>
+
+class FileData
+{
+public:
+	virtual bool isFolder() = 0;
+	virtual std::string getName() = 0;
+	virtual std::string getPath() = 0;
+};
+
+#endif
diff --git a/src/FolderData.cpp b/src/FolderData.cpp
new file mode 100644
index 000000000..fa7932654
--- /dev/null
+++ b/src/FolderData.cpp
@@ -0,0 +1,31 @@
+#include "FolderData.h"
+#include "SystemData.h"
+
+bool FolderData::isFolder() { return true; }
+std::string FolderData::getName() { return mName; }
+std::string FolderData::getPath() { return mPath; }
+unsigned int FolderData::getFileCount() { return mFileVector.size(); }
+FileData* FolderData::getFile(unsigned int i) { return mFileVector.at(i); }
+
+FolderData::FolderData(SystemData* system, std::string path, std::string name)
+{
+	mSystem = system;
+	mPath = path;
+	mName = name;
+}
+
+FolderData::~FolderData()
+{
+	for(unsigned int i = 0; i < mFileVector.size(); i++)
+	{
+		delete mFileVector.at(i);
+	}
+
+	mFileVector.clear();
+}
+
+void FolderData::pushFileData(FileData* file)
+{
+	mFileVector.push_back(file);
+}
+
diff --git a/src/FolderData.h b/src/FolderData.h
new file mode 100644
index 000000000..781046c38
--- /dev/null
+++ b/src/FolderData.h
@@ -0,0 +1,30 @@
+#ifndef _FOLDER_H_
+#define _FOLDER_H_
+
+#include "FileData.h"
+#include <vector>
+
+class SystemData;
+
+class FolderData : public FileData
+{
+public:
+	FolderData(SystemData* system, std::string path, std::string name);
+	~FolderData();
+
+	bool isFolder();
+	std::string getName();
+	std::string getPath();
+
+	unsigned int getFileCount();
+	FileData* getFile(unsigned int i);
+
+	void pushFileData(FileData* file);
+private:
+	SystemData* mSystem;
+	std::string mPath;
+	std::string mName;
+	std::vector<FileData*> mFileVector;
+};
+
+#endif
diff --git a/src/GameData.cpp b/src/GameData.cpp
index 0de2fef29..6a7e6c4e9 100644
--- a/src/GameData.cpp
+++ b/src/GameData.cpp
@@ -1,6 +1,9 @@
 #include "GameData.h"
 #include <iostream>
 
+bool GameData::isFolder() { return false; }
+std::string GameData::getName() { return mName; }
+
 GameData::GameData(SystemData* system, std::string path, std::string name)
 {
 	mSystem = system;
@@ -8,14 +11,7 @@ GameData::GameData(SystemData* system, std::string path, std::string name)
 	mName = name;
 }
 
-std::string GameData::getName()
-{
-	return mName;
-}
-
-
-
-std::string GameData::getValidPath()
+std::string GameData::getPath()
 {
 	//a quick and dirty way to insert a backslash before most characters that would mess up a bash path
 	std::string path = mPath;
diff --git a/src/GameData.h b/src/GameData.h
index 51987f250..f4d9c67b8 100644
--- a/src/GameData.h
+++ b/src/GameData.h
@@ -2,16 +2,17 @@
 #define _GAMEDATA_H_
 
 #include <string>
+#include "FileData.h"
 #include "SystemData.h"
 
-class GameData
+class GameData : public FileData
 {
 public:
 	GameData(SystemData* system, std::string path, std::string name);
 
 	std::string getName();
-	std::string getValidPath();
-
+	std::string getPath();
+	bool isFolder();
 private:
 	SystemData* mSystem;
 	std::string mPath;
diff --git a/src/InputManager.cpp b/src/InputManager.cpp
index 6c55f5f65..8350c7333 100644
--- a/src/InputManager.cpp
+++ b/src/InputManager.cpp
@@ -61,6 +61,9 @@ void InputManager::processEvent(SDL_Event* event)
 			case SDLK_RETURN:
 				button = BUTTON1;
 				break;
+			case SDLK_ESCAPE:
+				button = BUTTON2;
+				break;
 
 			default:
 				button = UNKNOWN;
diff --git a/src/SystemData.cpp b/src/SystemData.cpp
index 8ca2814bf..9bdfd5e68 100644
--- a/src/SystemData.cpp
+++ b/src/SystemData.cpp
@@ -12,15 +12,34 @@ namespace fs = boost::filesystem;
 SystemData::SystemData(std::string name, std::string startPath, std::string extension, std::string command)
 {
 	mName = name;
+
+	//expand home symbol if the startpath contains it
+	if(startPath[0] == '~')
+        {
+                startPath.erase(0, 1);
+
+                std::string home = getenv("HOME");
+                if(home.empty())
+                {
+                        std::cerr << "ERROR - System start path contains ~ but $HOME is not set!\n";
+                        return;
+                }else{
+                        startPath.insert(0, home);
+                }
+        }
+
 	mStartPath = startPath;
 	mSearchExtension = extension;
 	mLaunchCommand = command;
-	buildGameList();
+
+
+	mRootFolder = new FolderData(this, mStartPath, "Search Root");
+	populateFolder(mRootFolder);
 }
 
 SystemData::~SystemData()
 {
-	deleteGames();
+	delete mRootFolder;
 }
 
 std::string strreplace(std::string& str, std::string replace, std::string with)
@@ -30,7 +49,7 @@ std::string strreplace(std::string& str, std::string replace, std::string with)
 	return str.replace(pos, replace.length(), with.c_str(), with.length());
 }
 
-void SystemData::launchGame(unsigned int i)
+void SystemData::launchGame(GameData* game)
 {
 	std::cout << "Attempting to launch game...\n";
 
@@ -38,9 +57,8 @@ void SystemData::launchGame(unsigned int i)
 	SDL_JoystickEventState(0);
 
 	std::string command = mLaunchCommand;
-	GameData* game = mGameVector.at(i);
 
-	command = strreplace(command, "%ROM%", game->getValidPath());
+	command = strreplace(command, "%ROM%", game->getPath());
 
 	std::cout << "	" << command << "\n";
 	std::cout << "=====================================================\n";
@@ -53,74 +71,34 @@ void SystemData::launchGame(unsigned int i)
 	SDL_JoystickEventState(1);
 }
 
-void SystemData::deleteGames()
+void SystemData::populateFolder(FolderData* folder)
 {
-	for(unsigned int i = 0; i < mGameVector.size(); i++)
+	std::string folderPath = folder->getPath();
+	if(!fs::is_directory(folderPath))
 	{
-		delete mGameVector.at(i);
-	}
-
-	mGameVector.clear();
-}
-
-void SystemData::buildGameList()
-{
-	std::cout << "System " << mName << " building game list...\n";
-
-	deleteGames();
-
-	//expand home symbol if necessary
-	if(mStartPath[0] == '~')
-	{
-		mStartPath.erase(0, 1);
-
-		std::string home = getenv("HOME");
-		if(home.empty())
-		{
-			std::cerr << "ERROR - System start path contains ~ but $HOME is not set!\n";
-			return;
-		}else{
-			mStartPath.insert(0, home);
-		}
-	}
-
-	if(!fs::is_directory(mStartPath))
-	{
-		std::cout << "Error - system \"" << mName << "\"'s start path does not exist!\n";
+		std::cerr << "Error - folder with path \"" << folderPath << "\" is not a directory!\n";
 		return;
 	}
 
-	for(fs::recursive_directory_iterator end, dir(mStartPath); dir != end; ++dir)
+	for(fs::directory_iterator end, dir(folderPath); dir != end; ++dir)
 	{
-		//std::cout << "File found: " << *dir << "\n";
+		fs::path filePath = (*dir).path();
 
-		fs::path path = (*dir).path();
-
-		if(fs::is_directory(path))
-			continue;
-
-		std::string name = path.stem().string();
-		std::string extension = path.extension().string();
-
-		if(extension == mSearchExtension)
+		if(fs::is_directory(filePath))
 		{
-			mGameVector.push_back(new GameData(this, path.string(), name));
-			std::cout << "	Added game \"" << name << "\"\n";
+			FolderData* newFolder = new FolderData(this, filePath.string(), filePath.stem().string());
+			populateFolder(newFolder);
+			folder->pushFileData(newFolder);
+		}else{
+			if(filePath.extension().string() == mSearchExtension)
+			{
+				GameData* newGame = new GameData(this, filePath.string(), filePath.stem().string());
+				folder->pushFileData(newGame);
+			}
 		}
 	}
-
-	std::cout << "...done! Found " << mGameVector.size() << " games.\n";
 }
 
-unsigned int SystemData::getGameCount()
-{
-	return mGameVector.size();
-}
-
-GameData* SystemData::getGame(unsigned int i)
-{
-	return mGameVector.at(i);
-}
 
 std::string SystemData::getName()
 {
@@ -252,3 +230,8 @@ std::string SystemData::getConfigPath()
 
 	return(home + "/.es_systems.cfg");
 }
+
+FolderData* SystemData::getRootFolder()
+{
+	return mRootFolder;
+}
diff --git a/src/SystemData.h b/src/SystemData.h
index c52463e89..c8926339b 100644
--- a/src/SystemData.h
+++ b/src/SystemData.h
@@ -3,6 +3,7 @@
 
 #include <vector>
 #include <string>
+#include "FolderData.h"
 
 class GameData;
 
@@ -12,12 +13,10 @@ public:
 	SystemData(std::string name, std::string startPath, std::string extension, std::string command);
 	~SystemData();
 
-	unsigned int getGameCount();
-	GameData* getGame(unsigned int i);
+	FolderData* getRootFolder();
 	std::string getName();
 
-	void buildGameList();
-	void launchGame(unsigned int i);
+	void launchGame(GameData* game);
 	static void deleteSystems();
 	static void loadConfig();
 	static void writeExampleConfig();
@@ -30,9 +29,9 @@ private:
 	std::string mSearchExtension;
 	std::string mLaunchCommand;
 
-	std::vector<GameData*> mGameVector;
+	void populateFolder(FolderData* folder);
 
-	void deleteGames();
+	FolderData* mRootFolder;
 };
 
 #endif
diff --git a/src/components/GuiGameList.cpp b/src/components/GuiGameList.cpp
index 0d1ae5434..0f74d0f51 100644
--- a/src/components/GuiGameList.cpp
+++ b/src/components/GuiGameList.cpp
@@ -40,6 +40,11 @@ void GuiGameList::setSystemId(int id)
 	mSystemId = id;
 	mSystem = SystemData::sSystemVector.at(mSystemId);
 
+	//clear the folder stack (I can't look up the proper method right now)
+	while(mFolderStack.size()){ mFolderStack.pop(); }
+
+	mFolder = mSystem->getRootFolder();
+
 	updateList();
 }
 
@@ -52,10 +57,29 @@ void GuiGameList::onRender()
 
 void GuiGameList::onInput(InputManager::InputButton button, bool keyDown)
 {
-	if(button == InputManager::BUTTON1 && mSystem->getGameCount() > 0)
+	if(button == InputManager::BUTTON1 && mFolder->getFileCount() > 0)
 	{
 		if(!keyDown)
-			mSystem->launchGame(mList->getSelection());
+		{
+			FileData* file = (FileData*)mList->getSelectedObject();
+			if(file->isFolder())
+			{
+				//set current directory to this or something
+				mFolderStack.push(mFolder);
+				mFolder = (FolderData*)file;
+				updateList();
+			}else{
+				mSystem->launchGame((GameData*)file);
+			}
+		}
+	}
+
+	//std::cout << "mFolderStack.size(): " << mFolderStack.size() << "\n";
+	if(button == InputManager::BUTTON2 && keyDown && mFolderStack.size())
+	{
+		mFolder = mFolderStack.top();
+		mFolderStack.pop();
+		updateList();
 	}
 
 	if(button == InputManager::RIGHT && keyDown)
@@ -72,10 +96,13 @@ void GuiGameList::updateList()
 {
 	mList->clear();
 
-	for(unsigned int i = 0; i < mSystem->getGameCount(); i++)
+	for(unsigned int i = 0; i < mFolder->getFileCount(); i++)
 	{
-		GameData* game = mSystem->getGame(i);
+		FileData* file = mFolder->getFile(i);
 
-		mList->addObject(game->getName(), game);
+		if(file->isFolder())
+			mList->addObject(file->getName(), file, 0x00C000);
+		else
+			mList->addObject(file->getName(), file);
 	}
 }
diff --git a/src/components/GuiGameList.h b/src/components/GuiGameList.h
index ddc78d1eb..c15d6cbd9 100644
--- a/src/components/GuiGameList.h
+++ b/src/components/GuiGameList.h
@@ -4,8 +4,10 @@
 #include "../GuiComponent.h"
 #include "GuiList.h"
 #include <string>
+#include <stack>
 #include "../SystemData.h"
 #include "../GameData.h"
+#include "../FolderData.h"
 
 class GuiGameList : GuiComponent
 {
@@ -18,8 +20,11 @@ public:
 
 	void onRender();
 	void onInput(InputManager::InputButton button, bool keyDown);
+
 private:
 	SystemData* mSystem;
+	FolderData* mFolder;
+	std::stack<FolderData*> mFolderStack;
 	int mSystemId;
 	GuiList* mList;
 };
diff --git a/src/components/GuiInputConfig.cpp b/src/components/GuiInputConfig.cpp
index 65191be20..a1889a1d4 100644
--- a/src/components/GuiInputConfig.cpp
+++ b/src/components/GuiInputConfig.cpp
@@ -4,8 +4,8 @@
 #include <fstream>
 
 std::string GuiInputConfig::sConfigPath = "./input.cfg";
-std::string GuiInputConfig::sInputs[] = { "UNKNOWN", "UP", "DOWN", "LEFT", "RIGHT", "BUTTON1", "BUTTON2" }; //must be same order as InputManager::InputButton enum
-int GuiInputConfig::sInputCount = 6;
+std::string GuiInputConfig::sInputs[] = { "UNKNOWN", "UP", "DOWN", "LEFT", "RIGHT", "BUTTON1 (Accept)", "BUTTON2 (Back)" }; //must be same order as InputManager::InputButton enum
+int GuiInputConfig::sInputCount = 7;
 
 GuiInputConfig::GuiInputConfig()
 {
diff --git a/src/components/GuiList.cpp b/src/components/GuiList.cpp
index 2a9597539..485170060 100644
--- a/src/components/GuiList.cpp
+++ b/src/components/GuiList.cpp
@@ -23,27 +23,27 @@ void GuiList::onRender()
 	int screenCount = (Renderer::getScreenHeight() - cutoff) / entrySize;
 	screenCount -= 1;
 
-	if((int)mNameVector.size() >= screenCount)
+	if((int)mRowVector.size() >= screenCount)
 	{
 		startEntry = mSelection - (screenCount * 0.5);
 		if(startEntry < 0)
 			startEntry = 0;
-		if(startEntry >= (int)mNameVector.size() - screenCount)
-			startEntry = mNameVector.size() - screenCount;
+		if(startEntry >= (int)mRowVector.size() - screenCount)
+			startEntry = mRowVector.size() - screenCount;
 	}
 
 	int y = cutoff;
 	int color =  0xFF0000;
 
-	if(mNameVector.size() == 0)
+	if(mRowVector.size() == 0)
 	{
 		Renderer::drawCenteredText("The list is empty.", y, color);
 		return;
 	}
 
 	int listCutoff = startEntry + screenCount;
-	if(listCutoff > (int)mNameVector.size())
-		listCutoff = mNameVector.size();
+	if(listCutoff > (int)mRowVector.size())
+		listCutoff = mRowVector.size();
 
 	for(int i = startEntry; i < listCutoff; i++)
 	{
@@ -52,14 +52,15 @@ void GuiList::onRender()
 			Renderer::drawRect(0, y, Renderer::getScreenWidth(), 52, 0x000000);
 		}
 
-		Renderer::drawCenteredText(mNameVector.at((unsigned int)i), y, color);
+		ListRow row = mRowVector.at((unsigned int)i);
+		Renderer::drawCenteredText(row.name, y, row.color);
 		y += 40;
 	}
 }
 
 void GuiList::onInput(InputManager::InputButton button, bool keyDown)
 {
-	if(mNameVector.size() > 0 && keyDown)
+	if(mRowVector.size() > 0 && keyDown)
 	{
 		if(button == InputManager::DOWN)
 			mSelection++;
@@ -68,34 +69,33 @@ void GuiList::onInput(InputManager::InputButton button, bool keyDown)
 			mSelection--;
 
 		if(mSelection < 0)
-			mSelection += mNameVector.size();
+			mSelection += mRowVector.size();
 
-		if(mSelection >= (int)mNameVector.size())
-			mSelection -= mNameVector.size();
+		if(mSelection >= (int)mRowVector.size())
+			mSelection -= mRowVector.size();
 	}
 }
 
-void GuiList::addObject(std::string name, void* obj)
+void GuiList::addObject(std::string name, void* obj, int color)
 {
-	mNameVector.push_back(name);
-	mPointerVector.push_back(obj);
+	ListRow row = {name, obj, color};
+	mRowVector.push_back(row);
 }
 
 void GuiList::clear()
 {
-	mNameVector.clear();
-	mPointerVector.clear();
+	mRowVector.clear();
 	mSelection = 0;
 }
 
 std::string GuiList::getSelectedName()
 {
-	return mNameVector.at(mSelection);
+	return mRowVector.at(mSelection).name;
 }
 
 void* GuiList::getSelectedObject()
 {
-	return mPointerVector.at(mSelection);
+	return mRowVector.at(mSelection).object;
 }
 
 int GuiList::getSelection()
diff --git a/src/components/GuiList.h b/src/components/GuiList.h
index ef313d52b..e52e09788 100644
--- a/src/components/GuiList.h
+++ b/src/components/GuiList.h
@@ -7,6 +7,14 @@
 #include <vector>
 #include <string>
 
+struct ListRow
+{
+	std::string name;
+	void* object;
+	int color;
+};
+
+//this should really be a template
 class GuiList : public GuiComponent
 {
 public:
@@ -16,15 +24,14 @@ public:
 	void onRender();
 	void onInput(InputManager::InputButton button, bool keyDown);
 
-	void addObject(std::string name, void* obj);
+	void addObject(std::string name, void* obj, int color = 0xFF0000);
 	void clear();
 
 	std::string getSelectedName();
 	void* getSelectedObject();
 	int getSelection();
 private:
-	std::vector<std::string> mNameVector;
-	std::vector<void*> mPointerVector;
+	std::vector<ListRow> mRowVector;
 	int mSelection;
 };