diff --git a/src/mirall/application.cpp b/src/mirall/application.cpp
index e3a0e04cb..356d5f886 100644
--- a/src/mirall/application.cpp
+++ b/src/mirall/application.cpp
@@ -72,7 +72,8 @@ Application::Application(int argc, char **argv) :
 
     // Look for configuration changes
     _configFolderWatcher = new FolderWatcher(storageDir.path());
-    connect(_configFolderWatcher, SIGNAL(folderChanged(const QStringList &)), this, SLOT(slotReparseConfiguration()));
+    connect(_configFolderWatcher, SIGNAL(folderChanged(const QStringList &)),
+            this, SLOT(slotReparseConfiguration()));
 
     setupKnownFolders();
     setupContextMenu();
@@ -180,13 +181,11 @@ void Application::slotAddFolder()
         } else if( _folderWizard->field("OC?").toBool()) {
             settings.setValue("folder/backend", "sitecopy");
             settings.setValue("backend:sitecopy/targetPath", _folderWizard->field("targetOCFolder"));
-
-            settings.setValue("backend:sitecopy/url",    _folderWizard->field("OCUrl"));
-            settings.setValue("backend:sitecopy/user",   _folderWizard->field("OCUser"));
             settings.setValue("backend:sitecopy/alias",  _folderWizard->field("OCSiteAlias"));
 
             qDebug() << "Now writing sitecopy config " << _folderWizard->field("OCSiteAlias").toString(); ;
             SitecopyConfig scConfig;
+
             scConfig.writeSiteConfig( _folderWizard->field("sourceFolder").toString(), /* local path */
                                       alias, /* _folderWizard->field("OCSiteAlias").toString(),  site alias */
                                       _folderWizard->field("OCUrl").toString(),        /* site URL   */
diff --git a/src/mirall/owncloudsetup.cpp b/src/mirall/owncloudsetup.cpp
index f035385d6..b9492f20c 100644
--- a/src/mirall/owncloudsetup.cpp
+++ b/src/mirall/owncloudsetup.cpp
@@ -4,6 +4,8 @@
 #include <QDesktopServices>
 
 #include "owncloudsetup.h"
+#include "mirall/sitecopyconfig.h"
+
 
 namespace Mirall {
 
@@ -154,11 +156,15 @@ void OwncloudSetup::slotFinished( int res, QProcess::ExitStatus )
 
   if( res ) {
     _ocWizard->appendToResultWidget( tr("<font color=\"red\">Installation of ownCloud failed!</font>") );
+    emit ownCloudSetupFinished( true );
   } else {
     // Successful installation. Write the config.
     _ocWizard->appendToResultWidget( tr("<font color=\"green\">Installation of ownCloud succeeded!</font>") );
 
     writeOwncloudConfig();
+
+    emit ownCloudSetupFinished( true );
+    setupLocalSyncFolder();
   }
 }
 
@@ -199,6 +205,23 @@ QString OwncloudSetup::ownCloudUrl() const
   return url;
 }
 
+QString OwncloudSetup::ownCloudUser() const
+{
+  QSettings settings( mirallConfigFile(), QSettings::IniFormat );
+  QString user = settings.value( "ownCloud/user" ).toString();
+  qDebug() << "Returning configured owncloud user: " << user;
+
+  return user;
+}
+
+QString OwncloudSetup::ownCloudPasswd() const
+{
+  QSettings settings( mirallConfigFile(), QSettings::IniFormat );
+  QString pwd = settings.value( "ownCloud/password" ).toString();
+
+  return pwd;
+}
+
 /*
  *  method to check the if the owncloud admin script is existing
  */
@@ -214,5 +237,50 @@ bool OwncloudSetup::checkOwncloudAdmin( const QString& bin )
   return true;
 }
 
+void OwncloudSetup::setupLocalSyncFolder()
+{
+  QString syncFolder( QDir::homePath() + "/ownCloud" );
+  qDebug() << "Setup local sync folder " << syncFolder;
+  QDir fi( syncFolder );
+  _ocWizard->appendToResultWidget( tr("creating local sync folder %1").arg(syncFolder) );
+
+  if( fi.exists() ) {
+    // there is an existing local folder. If its non empty, it can only be synced if the
+    // ownCloud is newly created.
+    _ocWizard->appendToResultWidget( tr("Local sync folder %1 already exists, can "
+                                        "not automatically create.").arg(syncFolder));
+  } else {
+
+    if( fi.mkpath( syncFolder ) ) {
+      QString targetPath = "/";
+      qDebug() << "Successfully created " << fi.path();
+
+      // Create a sitecopy config file
+      SitecopyConfig scConfig;
+
+      scConfig.writeSiteConfig( syncFolder, /* local path */
+                                "ownCloud", /* _folderWizard->field("OCSiteAlias").toString(),  site alias */
+                                ownCloudUrl(),
+                                ownCloudUser(),
+                                ownCloudPasswd(),
+                                targetPath );
+
+      // create a mirall folder entry.
+      // FIXME: folderConfigPath is a method of application object, copied to here.
+      const QString folderConfigPath = QDesktopServices::storageLocation(QDesktopServices::DataLocation) + "/folders";
+
+      QSettings settings(folderConfigPath + "/ownCloud", QSettings::IniFormat);
+      settings.setValue("folder/backend", "sitecopy");
+      settings.setValue("folder/path", syncFolder );
+      settings.setValue("backend:sitecopy/targetPath", targetPath );
+      settings.setValue("backend:sitecopy/alias",  "ownCloud" );
+      settings.sync();
+
+    } else {
+      qDebug() << "Failed to create " << fi.path();
+    }
+  }
+}
+
 }
 #include "owncloudsetup.moc"
diff --git a/src/mirall/owncloudsetup.h b/src/mirall/owncloudsetup.h
index 79b1faeb0..92cf60357 100644
--- a/src/mirall/owncloudsetup.h
+++ b/src/mirall/owncloudsetup.h
@@ -31,8 +31,12 @@ public:
    * string.
    */
   QString ownCloudUrl() const ;
+  QString ownCloudUser() const ;
+  QString ownCloudPasswd() const ;
 
+  void    setupLocalSyncFolder();
 signals:
+  void    ownCloudSetupFinished( bool );
 
 public slots:
 
diff --git a/src/mirall/sitecopyconfig.cpp b/src/mirall/sitecopyconfig.cpp
index b69c27e4e..f088f9639 100644
--- a/src/mirall/sitecopyconfig.cpp
+++ b/src/mirall/sitecopyconfig.cpp
@@ -49,7 +49,7 @@ void SitecopyConfig::writeSiteConfig( const QString& localPath,
   ocDefs["protocol"] = "webdav";
   ocDefs["local"]    = localPath;
   QString webdavBase = "files/webdav.php";
-  if( !remoteFolder.isEmpty() ) {
+  if( !remoteFolder.isEmpty() && remoteFolder != "/" ) {
     webdavBase += "/" + remoteFolder;
   }
   if( !path.endsWith( QChar('/')) ) {
diff --git a/src/mirall/sitecopyfolder.cpp b/src/mirall/sitecopyfolder.cpp
index 52b4668be..1ee3ede37 100644
--- a/src/mirall/sitecopyfolder.cpp
+++ b/src/mirall/sitecopyfolder.cpp
@@ -139,6 +139,8 @@ void SiteCopyFolder::slotFinished(int exitCode, QProcess::ExitStatus exitStatus)
       emit syncFinished( SyncResult(SyncResult::Success) );
       // mLocalChangesSeen = false;
     } else if( _NextStep == Status ) {
+      startSiteCopy( "--fetch", FlatList );
+    } else if( _NextStep == FlatList ) {
       startSiteCopy( "--flatlist", DisplayStatus );
     } else if( _NextStep == DisplayStatus ) {
         if( exitCode == 1 ) {
diff --git a/src/mirall/sitecopyfolder.h b/src/mirall/sitecopyfolder.h
index 085d286fc..989738909 100644
--- a/src/mirall/sitecopyfolder.h
+++ b/src/mirall/sitecopyfolder.h
@@ -29,7 +29,7 @@ class SiteCopyFolder : public Folder
 {
     Q_OBJECT
 public:
-    enum SiteCopyState { Sync, Update, Finish, Status, DisplayStatus };
+    enum SiteCopyState { Sync, Update, Finish, Status, FlatList, DisplayStatus };
 
     SiteCopyFolder(const QString &alias,
                    const QString &path,