diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index 4137ec1c77..5dd6d5aa56 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -17,6 +17,22 @@
    past entries belonging to author(s): Viktor Szakats.
 */
 
+2009-07-11 16:55 UTC+0200 Przemyslaw Czerpak (druzus/at/priv.onet.pl)
+  * harbour/external/sqlite3/Makefile
+    * set SQLITE_OS_OTHER for all DOS builds
+
+  * harbour/config/dos/watcom.cf
+  * harbour/config/win/watcom.cf
+    * modified to work with *nix like shells so it can be used in cross build
+      environment
+
+    Now in my Linux box I can create Windows, DOS and OS2 harbour builds
+    using OpenWatcom 1.8 and native Linux binaries. Final Windows executables
+    works correctly. DOS one doesn't and it's probably problem with
+    OpenWatcom Linux linker and DOS DPMI stubs - I'll check it yet.
+    I cannot tested generated OS2 executable files. If someone has
+    OS2 and can try to run it then I can send them to him for test.
+
 2009-07-11 16:48 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
   * make_gnu.bat
     + Minor adjustment to support OS/2 cross-builds.
diff --git a/harbour/config/dos/watcom.cf b/harbour/config/dos/watcom.cf
index 5f8ebb274d..d908850839 100644
--- a/harbour/config/dos/watcom.cf
+++ b/harbour/config/dos/watcom.cf
@@ -17,16 +17,6 @@ EXE_EXT = .exe
 LIB_PREF =
 LIB_EXT = .lib
 
-ifeq ($(SHLVL),)
-   ECHO=@echo.
-   DSEP=$(subst /,\,\)
-else
-   ECHO=echo
-   DSEP=$(subst /,\,\\)
-endif
-
-$(HB_ARCHITECTURE)_$(HB_COMPILER)_GRANDP = $(subst /,\,$(GRANDP))
-
 ifeq ($(HB_BUILD_MODE),c)
 CC = wcc386
 endif
@@ -77,18 +67,18 @@ CPPFLAGS =
 # Note: The empty line directly before 'endef' HAVE TO exist!
 # It causes that the 'echo' command is separated by LF
 define link_file
-$(ECHO) FILE $(subst /,$(DSEP),$(subst \,/,$(file))) >> __link__.tmp
+@echo FILE $(file) >> __link__.tmp
 
 endef
 
 #Note: The empty line directly before 'endef' HAVE TO exist!
 define link_lib
-$(ECHO) LIB $(subst /,$(DSEP),$(subst \,/,$(lib))) >> __link__.tmp
+@echo LIB $(lib) >> __link__.tmp
 
 endef
 
 define link_exe_file
-$(ECHO) $(subst /,$(DSEP),$(subst \,/,$(LDFLAGS))) NAME $@ > __link__.tmp
+@echo $(LDFLAGS) NAME $@ > __link__.tmp
 $(foreach file, $(^F), $(link_file))
 $(foreach lib, $(HB_USER_LIBS), $(link_lib))
 $(foreach lib, $(LINKLIBS), $(link_lib))
@@ -138,17 +128,16 @@ LD_RULE = $(link_exe_file) $(HB_USER_LDFLAGS)
 
 #Note: The empty line below HAVE TO exist!
 define lib_object
-$(ECHO) -+$(subst /,$(DSEP),$(subst \,/,$(file))) >> __lib__.tmp
+@echo -+$(file) >> __lib__.tmp
 
 endef
 
 define create_library
-$(ECHO) $(subst /,$(DSEP),$(subst \,/,$(LIB_DIR)))$(DSEP)$@ > __lib__.tmp
+@echo $(LIB_DIR)/$@ > __lib__.tmp
 $(foreach file, $(^F), $(lib_object))
 $(AR) $(ARFLAGS) @__lib__.tmp
 endef
 
-
 AR = wlib
 ARFLAGS = -p=64 -c -n $(HB_USER_AFLAGS)
 AR_RULE = $(create_library)
@@ -158,9 +147,6 @@ export DOS4G=quiet
 
 include $(TOP)$(ROOT)config/rules.cf
 
-HB := $(subst /,$(DSEP),$(subst \,/,$(HB)))
-HB_FLAGS := $(subst /,$(DSEP),$(subst \,/,$(HB_FLAGS)))
-
 # work arround to DOS command line size limit
 export HARBOURCMD := $(HB_FLAGS)
 HB_FLAGS =
diff --git a/harbour/config/win/watcom.cf b/harbour/config/win/watcom.cf
index 022ea445d4..cafc71c4c3 100644
--- a/harbour/config/win/watcom.cf
+++ b/harbour/config/win/watcom.cf
@@ -62,9 +62,11 @@ ifeq ($(HB_BUILD_DEBUG),yes)
 CPPFLAGS += -d2
 endif
 
+ifeq ($(SHLVL),) # NT Shell
 ifeq ($(CC),wcc386)
 CC_RULE = $(CC) $(subst /,\,$(CPPFLAGS)) $(subst /,\,$(CFLAGS)) $(HB_CDBG) $(subst /,\,$(HB_USER_CFLAGS)) $(HB_CDYNLIB) $(subst /,\,$(CC_IN)) $(subst /,\,$<) $(CC_OUT)$(<F:.c=$(OBJ_EXT))
 endif
+endif
 
 # Note: The empty line directly before 'endef' HAVE TO exist!
 # It causes that the 'echo' command is separated by LF
diff --git a/harbour/external/sqlite3/Makefile b/harbour/external/sqlite3/Makefile
index 70d1ff4756..d88b84cc82 100644
--- a/harbour/external/sqlite3/Makefile
+++ b/harbour/external/sqlite3/Makefile
@@ -8,9 +8,9 @@ HB_BUILD_MODE = c
 ifeq ($(HB_ARCHITECTURE),wce)
 HB_USER_CFLAGS += -D_WIN32_WCE
 endif
-ifeq ($(HB_COMPILER),djgpp)
-# DJGPP isn't correctly recognized by SQLite, so we're forcing
-# the next best available option. This will cause missing
+ifeq ($(HB_ARCHITECTURE),dos)
+# DJGPP and OpenWatcom in DOS aren't correctly recognized by SQLite,
+# so we're forcing the next best available option. This will cause missing
 # externals though. [vszakats]
 HB_USER_CFLAGS += -DSQLITE_OS_OTHER
 endif