diff --git a/config/default.rb b/config/default.rb
index c9eadce3b..46fd4eef6 100644
--- a/config/default.rb
+++ b/config/default.rb
@@ -5,7 +5,6 @@ Vagrant::Config.run do |config|
   config.vagrant.home = "~/.vagrant"
 
   config.ssh.username = "vagrant"
-  config.ssh.password = "vagrant"
   config.ssh.host = "localhost"
   config.ssh.port = 22
   config.ssh.forwarded_port_key = "ssh"
@@ -16,8 +15,6 @@ Vagrant::Config.run do |config|
   config.vm.auto_port_range = (2200..2250)
   config.vm.box_ovf = "box.ovf"
   config.vm.base_mac = "0800279C2E42"
-  config.vm.project_directory = "/vagrant"
-  config.vm.rsync_project_directory = false
   config.vm.forward_port("ssh", 22, 2222, :auto => true)
   config.vm.disk_image_format = 'VMDK'
   config.vm.provisioner = nil
@@ -26,6 +23,10 @@ Vagrant::Config.run do |config|
   config.vm.boot_mode = "vrdp"
   config.vm.system = :linux
 
+  # Share the root folder. This can then be overridden by
+  # other Vagrantfiles, if they wish.
+  config.vm.share_folder("v-root", "/vagrant", ".")
+
   # TODO new config class
   config.vm.rsync_opts = "-ur --delete"
   config.vm.rsync_script = "/tmp/rsync"
diff --git a/lib/vagrant/actions/vm/boot.rb b/lib/vagrant/actions/vm/boot.rb
index 9d840c079..a60a1c268 100644
--- a/lib/vagrant/actions/vm/boot.rb
+++ b/lib/vagrant/actions/vm/boot.rb
@@ -2,13 +2,6 @@ module Vagrant
   module Actions
     module VM
       class Boot < Base
-        def prepare
-          @runner.env.config.vm.share_folder("v-root",
-                                             @runner.env.config.vm.project_directory,
-                                             @runner.env.root_path,
-                                             :rsync => @runner.env.config.vm.rsync_project_directory)
-        end
-
         def execute!
           @runner.invoke_around_callback(:boot) do
             # Startup the VM
diff --git a/lib/vagrant/actions/vm/shared_folders.rb b/lib/vagrant/actions/vm/shared_folders.rb
index 23c47f35d..a10e6202a 100644
--- a/lib/vagrant/actions/vm/shared_folders.rb
+++ b/lib/vagrant/actions/vm/shared_folders.rb
@@ -5,7 +5,7 @@ module Vagrant
         def shared_folders
           @runner.env.config.vm.shared_folders.inject([]) do |acc, data|
             name, value = data
-            acc << [name, File.expand_path(value[:hostpath]), value[:guestpath], value[:rsyncpath]].compact
+            acc << [name, File.expand_path(value[:hostpath], @runner.env.root_path), value[:guestpath], value[:rsyncpath]].compact
           end
         end
 
diff --git a/lib/vagrant/config.rb b/lib/vagrant/config.rb
index 08721c297..d2685f7b1 100644
--- a/lib/vagrant/config.rb
+++ b/lib/vagrant/config.rb
@@ -61,7 +61,6 @@ module Vagrant
 
     class SSHConfig < Base
       attr_accessor :username
-      attr_accessor :password
       attr_accessor :host
       attr_accessor :port
       attr_accessor :forwarded_port_key
@@ -69,6 +68,10 @@ module Vagrant
       attr_accessor :timeout
       attr_accessor :private_key_path
 
+      # The attribute(s) below do nothing. They are just kept here to
+      # prevent syntax errors for backwards compat.
+      attr_accessor :password
+
       def private_key_path
         File.expand_path(@private_key_path, env.root_path)
       end
@@ -82,8 +85,6 @@ module Vagrant
       attr_accessor :box_ovf
       attr_accessor :base_mac
       attr_accessor :boot_mode
-      attr_accessor :project_directory
-      attr_accessor :rsync_project_directory
       attr_accessor :rsync_opts
       attr_accessor :rsync_script
       attr_accessor :rsync_crontab_entry_file
diff --git a/lib/vagrant/provisioners/chef.rb b/lib/vagrant/provisioners/chef.rb
index e3be29492..2b958c329 100644
--- a/lib/vagrant/provisioners/chef.rb
+++ b/lib/vagrant/provisioners/chef.rb
@@ -106,7 +106,7 @@ module Vagrant
         # Set up initial configuration
         data = {
           :config => env.config,
-          :directory => env.config.vm.project_directory,
+          :directory => env.config.vm.shared_folders["v-root"][:guestpath],
         }
 
         # And wrap it under the "vagrant" namespace
diff --git a/test/test_helper.rb b/test/test_helper.rb
index da09636b3..074ea8b3c 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -27,7 +27,6 @@ class Test::Unit::TestCase
       config.vagrant.log_output = nil
 
       config.ssh.username = "foo"
-      config.ssh.password = "bar"
       config.ssh.host = "baz"
       config.ssh.port = 22
       config.ssh.forwarded_port_key = "ssh"
@@ -38,8 +37,6 @@ class Test::Unit::TestCase
       config.vm.box = "foo"
       config.vm.box_ovf = "box.ovf"
       config.vm.base_mac = "42"
-      config.vm.project_directory = "/vagrant"
-      config.vm.rsync_project_directory = false
       config.vm.disk_image_format = 'VMDK'
       config.vm.forward_port("ssh", 22, 2222)
       config.vm.shared_folder_uid = nil
@@ -47,6 +44,7 @@ class Test::Unit::TestCase
       config.vm.system = :linux
       config.vm.rsync_script = "/foo"
       config.vm.rsync_crontab_entry_file = "/tmp/foo"
+      config.vm.share_folder("v-root", "/vagrant", ".")
 
       config.package.name = 'vagrant'
       config.package.extension = '.box'
diff --git a/test/vagrant/actions/vm/boot_test.rb b/test/vagrant/actions/vm/boot_test.rb
index 19ca5dba0..ab7069370 100644
--- a/test/vagrant/actions/vm/boot_test.rb
+++ b/test/vagrant/actions/vm/boot_test.rb
@@ -6,16 +6,6 @@ class BootActionTest < Test::Unit::TestCase
     @runner.stubs(:invoke_callback)
   end
 
-  context "preparing" do
-    should "add the root shared folder" do
-      @runner.env.config.vm.expects(:share_folder).with("v-root",
-                                                        @runner.env.config.vm.project_directory,
-                                                        @runner.env.root_path,
-                                                        :rsync => @runner.env.config.vm.rsync_project_directory).once
-      @action.prepare
-    end
-  end
-
   context "execution" do
     should "invoke the 'boot' around callback" do
       boot_seq = sequence("boot_seq")
diff --git a/test/vagrant/actions/vm/shared_folders_test.rb b/test/vagrant/actions/vm/shared_folders_test.rb
index e30a09a77..c66520663 100644
--- a/test/vagrant/actions/vm/shared_folders_test.rb
+++ b/test/vagrant/actions/vm/shared_folders_test.rb
@@ -34,7 +34,7 @@ class SharedFoldersActionTest < Test::Unit::TestCase
     end
 
     should "expand the path of the host folder" do
-      File.expects(:expand_path).with("baz").once.returns("expanded_baz")
+      File.expects(:expand_path).with("baz", @runner.env.root_path).once.returns("expanded_baz")
 
       env = mock_environment do |config|
         config.vm.shared_folders.clear
diff --git a/test/vagrant/provisioners/chef_test.rb b/test/vagrant/provisioners/chef_test.rb
index 2b6d9af28..bf9ca1768 100644
--- a/test/vagrant/provisioners/chef_test.rb
+++ b/test/vagrant/provisioners/chef_test.rb
@@ -155,13 +155,13 @@ class ChefProvisionerTest < Test::Unit::TestCase
 
     should "add the directory as a special case to the JSON" do
       assert_json do |data|
-        assert_equal @env.config.vm.project_directory, data["vagrant"]["directory"]
+        assert_equal @env.config.vm.shared_folders["v-root"][:guestpath], data["vagrant"]["directory"]
       end
     end
 
     should "add the config to the JSON" do
       assert_json do |data|
-        assert_equal @env.config.vm.project_directory, data["vagrant"]["config"]["vm"]["project_directory"]
+        assert_equal @env.config.ssh.username, data["vagrant"]["config"]["ssh"]["username"]
       end
     end