Index: dll/cpl/appwiz/appwiz.h
===================================================================
--- dll/cpl/appwiz/appwiz.h	(revision 70157)
+++ dll/cpl/appwiz/appwiz.h	(working copy)
@@ -4,6 +4,7 @@
 #include <config.h>
 #include <wine/port.h>
 
+#include <stdio.h>
 #include <stdarg.h>
 
 #define WIN32_NO_STATUS
@@ -17,6 +18,7 @@
 #include <winreg.h>
 #include <winnls.h>
 #include <shlobj.h>
+#include <shlwapi.h>
 
 #include <wine/debug.h>
 WINE_DEFAULT_DEBUG_CHANNEL(appwiz);
Index: dll/cpl/appwiz/CMakeLists.txt
===================================================================
--- dll/cpl/appwiz/CMakeLists.txt	(revision 70157)
+++ dll/cpl/appwiz/CMakeLists.txt	(working copy)
@@ -22,7 +22,7 @@
 
 set_module_type(appwiz cpl UNICODE)
 target_link_libraries(appwiz uuid wine)
-add_importlibs(appwiz urlmon ole32 comctl32 advapi32 shell32 user32 msvcrt kernel32 ntdll)
+add_importlibs(appwiz urlmon ole32 comctl32 advapi32 shlwapi shell32 user32 msvcrt kernel32 ntdll)
 add_delay_importlibs(appwiz msi)
 add_pch(appwiz appwiz.h SOURCE)
 add_cd_file(TARGET appwiz DESTINATION reactos/system32 FOR all)
Index: dll/cpl/appwiz/createlink.c
===================================================================
--- dll/cpl/appwiz/createlink.c	(revision 70157)
+++ dll/cpl/appwiz/createlink.c	(working copy)
@@ -70,7 +70,7 @@
 }
 
 BOOL
-CreateShortcut(PCREATE_LINK_CONTEXT pContext)
+CreateShortcut(PCREATE_LINK_CONTEXT pContext, BOOL isUrl)
 {
     IShellLinkW *pShellLink, *pSourceShellLink;
     IPersistFile *pPersistFile;
@@ -78,6 +78,29 @@
     WCHAR Path[MAX_PATH];
     LPWSTR lpExtension;
 
+    /* Determine if the target is a URL */
+    if (isUrl)
+    {
+        FILE *hUrl;
+        WCHAR TargetPath[MAX_PATH];
+
+        /* Create the URL File */
+        hUrl = _wfopen(pContext->szLinkName, L"a+,ccs=UTF-8");
+        if (hUrl == NULL)
+            return FALSE;
+
+        wcscpy(TargetPath, L"URL=");
+        wcscat(TargetPath, pContext->szTarget);
+
+        /* Writes the content to the URL file */
+        fputws(L"[InternetShortcut]\n", hUrl);
+        fputws(TargetPath, hUrl);
+
+        fclose(hUrl);
+
+        return TRUE;
+    }
+
     /* get the extension */
     lpExtension = wcsrchr(pContext->szTarget, '.');
 
@@ -218,7 +241,7 @@
                 /// FIXME
                 /// it should also be possible to create a link to folders, shellobjects etc....
                 ///
-                if (GetFileAttributesW(pContext->szTarget) == INVALID_FILE_ATTRIBUTES)
+                if ((GetFileAttributesW(pContext->szTarget) == INVALID_FILE_ATTRIBUTES) && (!PathIsURLW(pContext->szTarget)))
                 {
                     szDesc[0] = L'\0';
                     szPath[0] = L'\0';
@@ -269,6 +292,7 @@
     LPPROPSHEETPAGEW ppsp;
     PCREATE_LINK_CONTEXT pContext;
     LPPSHNOTIFY lppsn;
+    BOOL isURL = FALSE;
 
     switch(uMsg)
     {
@@ -301,11 +325,45 @@
             {
                 SendDlgItemMessageW(hwndDlg, IDC_SHORTCUT_NAME, WM_GETTEXT, MAX_PATH, (LPARAM)pContext->szDescription);
                 wcscat(pContext->szLinkName, pContext->szDescription);
-                wcscat(pContext->szLinkName, L".lnk");
-                if (!CreateShortcut(pContext))
+
+                /* Find out if the target location is a URL or not */
+                isURL = PathIsURLW(pContext->szTarget);
+
+                /* Determine the file extension based on if the target location is a URL or not */
+                wcscat(pContext->szLinkName, (isURL ? L".url" : L".lnk"));
+
+                /* Find out if the shortcut already exists before continuing.
+                   If so, then ask the user if they want to overwrite it. */
+                if (GetFileAttributesW(pContext->szLinkName) != INVALID_FILE_ATTRIBUTES)
                 {
-                    MessageBox(hwndDlg, _T("Failed to create shortcut"), _T("Error"), MB_ICONERROR);
+                    WCHAR szShortcutMsg[MAX_PATH], szCaption[MAX_PATH], szError[MAX_PATH + 100];
+
+                    LoadStringW(hApplet, IDS_ERROR_SHORTCUT_EXISTS, szShortcutMsg, MAX_PATH);
+                    LoadStringW(hApplet, IDS_SHORTCUT_FINISH, szCaption, MAX_PATH);
+
+                    swprintf(szError, szShortcutMsg, pContext->szLinkName);
+
+                    /* If the user does not want to overwrite the existing shortcut then just refocus 
+                       onto the shortcut name edit text box */
+                    if (MessageBoxW(hwndDlg, szError, szCaption, MB_YESNO | MB_ICONERROR) == IDNO)
+                    {
+                        SendDlgItemMessage(hwndDlg, IDC_SHORTCUT_NAME, EM_SETSEL, 0, -1);
+                        SetFocus(GetDlgItem(hwndDlg, IDC_SHORTCUT_NAME));
+                        SetWindowLongPtr(hwndDlg, DWL_MSGRESULT, PSNRET_INVALID_NOCHANGEPAGE);
+                        return -1;
+                    }
                 }
+
+                /* Try to create the shortcut */
+                if (!CreateShortcut(pContext, isURL))
+                {
+                    WCHAR szMessage[MAX_PATH], szCaption[MAX_PATH], szError[MAX_PATH];
+                    LoadStringW(hApplet, IDS_CREATE_SHORTCUT_FAILED, szMessage, MAX_PATH);
+                    LoadStringW(hApplet, IDS_CREATE_SHORTCUT, szCaption, MAX_PATH);
+                    swprintf(szError, szMessage, pContext->szTarget);
+
+                    MessageBoxW(hwndDlg, szError, szCaption, MB_OK | MB_ICONERROR);
+                }
             }
 
 
Index: dll/cpl/appwiz/lang/en-US.rc
===================================================================
--- dll/cpl/appwiz/lang/en-US.rc	(revision 70157)
+++ dll/cpl/appwiz/lang/en-US.rc	(working copy)
@@ -58,7 +58,10 @@
     IDS_CPLSYSTEMNAME "Add/Remove Programs"
     IDS_CPLSYSTEMDESCRIPTION "Sets up programs and creates shortcuts."
     IDS_CREATE_SHORTCUT "Create Shortcut"
+    IDS_CREATE_SHORTCUT_FAILED "Failed to create shortcut."
     IDS_ERROR_NOT_FOUND "The file %s was not found."
+    IDS_ERROR_SHORTCUT_EXISTS "A shorcut named %s\nalready exists in this folder. Do you want to replace it?"
+    IDS_SHORTCUT_FINISH "Select a Title for the Program"
 END
 
 STRINGTABLE
Index: dll/cpl/appwiz/resource.h
===================================================================
--- dll/cpl/appwiz/resource.h	(revision 70157)
+++ dll/cpl/appwiz/resource.h	(working copy)
@@ -25,7 +25,10 @@
 #define IDS_CPLSYSTEMNAME			1001
 #define IDS_CPLSYSTEMDESCRIPTION	2001
 #define IDS_CREATE_SHORTCUT         2021
-#define IDS_ERROR_NOT_FOUND         2022
+#define IDS_CREATE_SHORTCUT_FAILED  2022
+#define IDS_ERROR_NOT_FOUND         2023
+#define IDS_ERROR_SHORTCUT_EXISTS   2024
+#define IDS_SHORTCUT_FINISH         2025
 
 #define IDS_DOWNLOADING        14
 #define IDS_INSTALLING         15