diff --git a/config/functions b/config/functions
index c7bb854ba8..dad3e96545 100644
--- a/config/functions
+++ b/config/functions
@@ -92,7 +92,16 @@ add_user() {
   mkdir -p ${INSTALL}/etc
   touch ${INSTALL}/etc/passwd
   if [ -z "`grep "$1:" ${INSTALL}/etc/passwd`" ]; then
-    echo "$1:$2:$3:$4:$5:$6:$7" >> ${INSTALL}/etc/passwd
+    echo "$1:x:$3:$4:$5:$6:$7" >> ${INSTALL}/etc/passwd
+  fi
+
+  touch ${INSTALL}/etc/shadow
+  PASSWORD="$2"
+  if [ "$PASSWORD" = "x" ]; then
+    PASSWORD="*"
+  fi
+  if [ -z "`grep "$1:" ${INSTALL}/etc/shadow`" ]; then
+    echo "$1:$PASSWORD:::::::" >> ${INSTALL}/etc/shadow
   fi
 }
 
diff --git a/packages/sysutils/busybox/config/busybox.conf b/packages/sysutils/busybox/config/busybox.conf
index 7bbe59f996..278abe0024 100644
--- a/packages/sysutils/busybox/config/busybox.conf
+++ b/packages/sysutils/busybox/config/busybox.conf
@@ -1,7 +1,7 @@
 #
 # Automatically generated make config: don't edit
 # Busybox version: 1.18.5
-# Sat Aug  6 19:21:09 2011
+# Sun Aug  7 23:33:27 2011
 #
 CONFIG_HAVE_DOT_CONFIG=y
 
@@ -432,9 +432,9 @@ CONFIG_INIT_TERMINAL_TYPE=""
 #
 # CONFIG_ADD_SHELL is not set
 # CONFIG_REMOVE_SHELL is not set
-# CONFIG_FEATURE_SHADOWPASSWDS is not set
+CONFIG_FEATURE_SHADOWPASSWDS=y
 CONFIG_USE_BB_PWD_GRP=y
-# CONFIG_USE_BB_SHADOW is not set
+CONFIG_USE_BB_SHADOW=y
 CONFIG_USE_BB_CRYPT=y
 CONFIG_USE_BB_CRYPT_SHA=y
 # CONFIG_ADDUSER is not set
diff --git a/packages/sysutils/busybox/install b/packages/sysutils/busybox/install
index 495e6ff12a..8cd9fde3a5 100755
--- a/packages/sysutils/busybox/install
+++ b/packages/sysutils/busybox/install
@@ -45,6 +45,7 @@ USER_PWD="`$ROOT/$TOOLCHAIN/bin/cryptpw -m sha512 $USER_PASSWORD`"
   mkdir -p $INSTALL/etc
     cp $PKG_DIR/config/profile $INSTALL/etc
     cp $PKG_DIR/config/httpd.conf $INSTALL/etc
+    echo "chmod 000 $INSTALL/etc/shadow" >> $FAKEROOT_SCRIPT
 
   # /etc/fstab is needed by...
     touch $INSTALL/etc/fstab