diff --git a/pkgs/baseenv/baseenv-build.sh b/pkgs/baseenv/baseenv-build.sh
index 0b4c0d0fedc5..b0c7073f0ba3 100755
--- a/pkgs/baseenv/baseenv-build.sh
+++ b/pkgs/baseenv/baseenv-build.sh
@@ -9,20 +9,17 @@ sed \
  -e s^@OUT\@^$out^g \
  < $setup > $out/setup || exit 1
 
-gcc='$NIX_CC'
-
 sed \
- -e s^@GCC\@^$gcc^g \
+ -e 's^@GCC\@^$NIX_CC^g' \
  < $gccwrapper > $out/bin/gcc || exit 1
 chmod +x $out/bin/gcc || exit 1
-
-ln -s gcc $out/bin/cc
-
-gcc='$NIX_CXX'
+ln -s gcc $out/bin/cc || exit 1
 
 sed \
- -e s^@GCC\@^$gcc^g \
+ -e 's^@GCC\@^$NIX_CXX^g' \
  < $gccwrapper > $out/bin/g++ || exit 1
 chmod +x $out/bin/g++ || exit 1
+ln -s g++ $out/bin/c++ || exit 1
 
-ln -s g++ $out/bin/c++
+cp $ldwrapper $out/bin/ld || exit 1
+chmod +x $out/bin/ld || exit 1
diff --git a/pkgs/baseenv/baseenv.fix b/pkgs/baseenv/baseenv.fix
index 5efa61d08a0a..62c8c502e34c 100644
--- a/pkgs/baseenv/baseenv.fix
+++ b/pkgs/baseenv/baseenv.fix
@@ -1,8 +1,9 @@
 Package(
-  [ ("name", "stdenv-native")
+  [ ("name", "baseenv")
   , ("build", Relative("baseenv/baseenv-build.sh"))
 
   , ("setup", Relative("baseenv/setup.sh"))
   , ("gccwrapper", Relative("baseenv/gcc-wrapper.sh"))
+  , ("ldwrapper", Relative("baseenv/ld-wrapper.sh"))
   ]
 )
diff --git a/pkgs/baseenv/gcc-wrapper.sh b/pkgs/baseenv/gcc-wrapper.sh
index 9ce4167bce4a..f743c96ec2f0 100644
--- a/pkgs/baseenv/gcc-wrapper.sh
+++ b/pkgs/baseenv/gcc-wrapper.sh
@@ -6,26 +6,33 @@ justcompile=0
 for i in $@; do
     if test "$i" == "-c"; then
         justcompile=1
-    fi
-    if test "$i" == "-S"; then
+    elif test "$i" == "-S"; then
         justcompile=1
-    fi
-    if test "$i" == "-E"; then
+    elif test "$i" == "-E"; then
+        justcompile=1
+    elif test "$i" == "-E"; then
+        justcompile=1
+    elif test "$i" == "-M"; then
+        justcompile=1
+    elif test "$i" == "-MM"; then
         justcompile=1
     fi
 done
 
 IFS=" "
-extra=($NIX_CFLAGS)
+extra=($NIX_CFLAGS_COMPILE)
 if test "$justcompile" != "1"; then
-    extra=(${extra[@]} $NIX_LDFLAGS)
+    extra=(${extra[@]} $NIX_CFLAGS_LINK)
+    for i in $NIX_LDFLAGS; do
+	extra=(${extra[@]} "-Wl,$i")
+    done
     if test "$NIX_STRIP_DEBUG" == "1"; then
-	extra=(${extra[@]} -Wl,-s)
+	extra=(${extra[@]} -g0 -Wl,-s)
     fi
 fi
 
 if test "$NIX_DEBUG" == "1"; then
-  echo "extra gcc flags:" >&2
+  echo "extra flags to @GCC@:" >&2
   for i in ${extra[@]}; do
       echo "  $i" >&2
   done
diff --git a/pkgs/baseenv/setup.sh b/pkgs/baseenv/setup.sh
index 4cdd3518247b..60f71bfddf60 100644
--- a/pkgs/baseenv/setup.sh
+++ b/pkgs/baseenv/setup.sh
@@ -11,7 +11,8 @@ addtoenv()
     fi
 
     if test -d $1/lib; then
-	export NIX_LDFLAGS="-L $1/lib -Wl,-rpath,$1/lib $NIX_LDFLAGS"
+	export NIX_CFLAGS_LINK="-L$1/lib $NIX_CFLAGS_LINK"
+	export NIX_LDFLAGS="-rpath $1/lib $NIX_LDFLAGS"
     fi
 
     if test -d $1/lib/pkgconfig; then
@@ -33,7 +34,7 @@ for i in $oldenvpkgs; do
 done
 
 # Add the output as an rpath.
-export NIX_LDFLAGS="-Wl,-rpath,$out/lib $NIX_LDFLAGS"
+export NIX_LDFLAGS="-rpath $out/lib $NIX_LDFLAGS"
 
 # Strip debug information by default.
 export NIX_STRIP_DEBUG=1
diff --git a/pkgs/gcc/gcc-build.sh b/pkgs/gcc/gcc-build.sh
index a6b8d87eadc3..480caf694bc5 100755
--- a/pkgs/gcc/gcc-build.sh
+++ b/pkgs/gcc/gcc-build.sh
@@ -20,7 +20,10 @@ cd build || exit 1
 ../gcc-*/configure --prefix=$out --enable-languages=c,c++ || exit 1
 
 # Patch some of the makefiles to force linking against our own glibc.
-extraflags="$NIX_CFLAGS $NIX_LDFLAGS -Wl,-s -isystem $linux/include"
+extraflags="-Wl,-s -isystem $linux/include $NIX_CFLAGS_COMPILE $NIX_CFLAGS_LINK"
+for i in $NIX_LDFLAGS; do
+    extraflags="$extraflags -Wl,$i"
+done
 
 mf=Makefile
 sed \
diff --git a/pkgs/stdenv-linux/setup-nativetools.sh b/pkgs/stdenv-linux/setup-nativetools.sh
index c1b4bc610263..f675389306d3 100644
--- a/pkgs/stdenv-linux/setup-nativetools.sh
+++ b/pkgs/stdenv-linux/setup-nativetools.sh
@@ -3,7 +3,9 @@ export SHELL=/bin/sh
 
 . @BASEENV@/setup
 
-export NIX_CFLAGS="-isystem @GLIBC@/include $NIX_CFLAGS"
-export NIX_LDFLAGS="-L@GLIBC@/lib -Wl,-dynamic-linker,@GLIBC@/lib/ld-linux.so.2,-rpath,@GLIBC@/lib $NIX_LDFLAGS"
+export NIX_CFLAGS_COMPILE="-isystem @GLIBC@/include $NIX_CFLAGS_COMPILE"
+export NIX_CFLAGS_LINK="-L@GLIBC@/lib $NIX_CFLAGS_LINK"
+export NIX_LDFLAGS="-dynamic-linker @GLIBC@/lib/ld-linux.so.2 -rpath @GLIBC@/lib $NIX_LDFLAGS"
 export NIX_CC=/usr/bin/gcc
 export NIX_CXX=/usr/bin/g++
+export NIX_LD=/usr/bin/ld
diff --git a/pkgs/stdenv-linux/setup.sh b/pkgs/stdenv-linux/setup.sh
index aa195830c533..5c7fce62feca 100644
--- a/pkgs/stdenv-linux/setup.sh
+++ b/pkgs/stdenv-linux/setup.sh
@@ -3,10 +3,12 @@ export SHELL=@SHELL@
 
 . @BASEENV@/setup
 
-export NIX_CFLAGS="-isystem @GLIBC@/include -isystem @LINUX@/include $NIX_CFLAGS"
-export NIX_LDFLAGS="-L@GLIBC@/lib -Wl,-dynamic-linker,@GLIBC@/lib/ld-linux.so.2,-rpath,@GLIBC@/lib $NIX_LDFLAGS -L@GCC@/lib -Wl,-rpath,@GCC@/lib"
+export NIX_CFLAGS_COMPILE="-isystem @GLIBC@/include -isystem @LINUX@/include $NIX_CFLAGS_COMPILE"
+export NIX_CFLAGS_LINK="-L@GLIBC@/lib -L@GCC@/lib $NIX_CFLAGS_LINK"
+export NIX_LDFLAGS="-dynamic-linker @GLIBC@/lib/ld-linux.so.2 -rpath @GLIBC@/lib -rpath @GCC@/lib $NIX_LDFLAGS"
 export NIX_CC=@CC@
 export NIX_CXX=@CXX@
+export NIX_LD=@LD@
 
 export NIX_LIBC_INCLUDES="@GLIBC@/include"
 export NIX_LIBC_LIBS="@GLIBC@/lib"
diff --git a/pkgs/stdenv-linux/stdenv-build.sh b/pkgs/stdenv-linux/stdenv-build.sh
index c73f08ea6ce1..437707f74126 100755
--- a/pkgs/stdenv-linux/stdenv-build.sh
+++ b/pkgs/stdenv-linux/stdenv-build.sh
@@ -6,7 +6,7 @@ mkdir $out || exit 1
 
 p=
 first=1
-for i in $tools; do
+for i in $tools $gcc $binutils $shell; do
     if test "$first" == 1; then
 	first=
     else
@@ -17,6 +17,7 @@ done
 
 cc=$gcc/bin/gcc
 cxx=$gcc/bin/g++
+ld=$binutils/bin/ld
 shell=$shell/bin/sh
 
 echo "########## $p"
@@ -27,6 +28,7 @@ sed \
  -e s^@GCC\@^$gcc^g \
  -e s^@CC\@^$cc^g \
  -e s^@CXX\@^$cxx^g \
+ -e s^@LD\@^$ld^g \
  -e s^@BASEENV\@^$baseenv^g \
  -e s^@PATH\@^$p^g \
  -e s^@SHELL\@^$shell^g \
diff --git a/pkgs/stdenv-linux/stdenv-nativetools-build.sh b/pkgs/stdenv-linux/stdenv-nativetools-build.sh
index 4b1d6d2d6820..16ac884f7e1e 100755
--- a/pkgs/stdenv-linux/stdenv-nativetools-build.sh
+++ b/pkgs/stdenv-linux/stdenv-nativetools-build.sh
@@ -6,9 +6,5 @@ mkdir $out || exit 1
 
 sed \
  -e s^@GLIBC\@^$glibc^g \
- -e s^@CC\@^$cc^g \
- -e s^@CXX\@^$cxx^g \
  -e s^@BASEENV\@^$baseenv^g \
- -e s^@PATH\@^$p^g \
- -e s^@SHELL\@^$shell^g \
  < $setup > $out/setup || exit 1
diff --git a/pkgs/stdenv-linux/stdenv-nativetools.fix b/pkgs/stdenv-linux/stdenv-nativetools.fix
index 5e1187b9d36c..28a7f8095398 100644
--- a/pkgs/stdenv-linux/stdenv-nativetools.fix
+++ b/pkgs/stdenv-linux/stdenv-nativetools.fix
@@ -1,5 +1,5 @@
 Package(
-  [ ("name", "stdenv-linux")
+  [ ("name", "stdenv-nativetools")
   , ("build", Relative("stdenv-linux/stdenv-nativetools-build.sh"))
 
   , ("setup", Relative("stdenv-linux/setup-nativetools.sh"))
diff --git a/pkgs/stdenv-linux/stdenv.fix b/pkgs/stdenv-linux/stdenv.fix
index eea9541c5e29..75457300baf6 100644
--- a/pkgs/stdenv-linux/stdenv.fix
+++ b/pkgs/stdenv-linux/stdenv.fix
@@ -18,11 +18,11 @@ Package(
       , IncludeFix("gzip/gzip.fix")
       , IncludeFix("bzip2/bzip2.fix")
       , IncludeFix("gnumake/gnumake.fix")
-      , IncludeFix("binutils/binutils.fix")
       , IncludeFix("bash/bash.fix")
       ])
 
   , ("gcc", IncludeFix("gcc/gcc.fix"))
+  , ("binutils", IncludeFix("binutils/binutils.fix"))
   , ("shell", IncludeFix("bash/bash.fix"))
   ]
 )