diff --git a/build/Build.proj b/build/Build.proj
index 48db7e9b5b..6c33dbdd12 100644
--- a/build/Build.proj
+++ b/build/Build.proj
@@ -47,7 +47,6 @@
 
  <ItemGroup>
 	 <SystemFolders Include="$(WebAppFolder)App_Plugins" />
-	 <SystemFolders Include="$(WebAppFolder)App_Plugins\Packages" />
 	 <SystemFolders Include="$(WebAppFolder)App_Code" />
    <SystemFolders Include="$(WebAppFolder)App_Data" />
    <SystemFolders Include="$(WebAppFolder)media" />
diff --git a/src/Umbraco.Web.UI/Umbraco.Web.UI.csproj b/src/Umbraco.Web.UI/Umbraco.Web.UI.csproj
index ca8ec15c50..ddce4d4865 100644
--- a/src/Umbraco.Web.UI/Umbraco.Web.UI.csproj
+++ b/src/Umbraco.Web.UI/Umbraco.Web.UI.csproj
@@ -2221,7 +2221,7 @@
   <ItemGroup>
     <Folder Include="App_Code\" />
     <Folder Include="App_Data\" />
-    <Folder Include="App_Plugins\Packages\" />
+    <Folder Include="App_Plugins\" />
     <Folder Include="css\" />
     <Folder Include="macroScripts\" />
     <Folder Include="masterpages\" />
diff --git a/src/Umbraco.Web/Mvc/PluginControllerArea.cs b/src/Umbraco.Web/Mvc/PluginControllerArea.cs
index 9e221fe667..591d53480a 100644
--- a/src/Umbraco.Web/Mvc/PluginControllerArea.cs
+++ b/src/Umbraco.Web/Mvc/PluginControllerArea.cs
@@ -58,6 +58,11 @@ namespace Umbraco.Web.Mvc
 		/// </summary>
 		/// <param name="routes"></param>
 		/// <param name="surfaceControllers"></param>
+		/// <remarks>
+		/// The routes will be:
+		/// 
+		/// /Umbraco/[AreaName]/[ControllerName]/[Action]/[Id]
+		/// </remarks>
 		private void MapRouteSurfaceControllers(RouteCollection routes, IEnumerable<PluginControllerMetadata> surfaceControllers)
 		{
 			foreach (var s in surfaceControllers)
diff --git a/src/Umbraco.Web/Mvc/PluginViewEngine.cs b/src/Umbraco.Web/Mvc/PluginViewEngine.cs
index 2abc352ef0..bca14c2058 100644
--- a/src/Umbraco.Web/Mvc/PluginViewEngine.cs
+++ b/src/Umbraco.Web/Mvc/PluginViewEngine.cs
@@ -1,5 +1,7 @@
+using System.IO;
 using System.Linq;
 using System.Web.Mvc;
+using Umbraco.Core.IO;
 
 namespace Umbraco.Web.Mvc
 {
@@ -31,16 +33,16 @@ namespace Umbraco.Web.Mvc
 
 			var viewLocationsArray = new[]
 				{
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/{1}/{0}.cshtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/{1}/{0}.vbhtml")                    
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/{1}/{0}.cshtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/{1}/{0}.vbhtml")                    
 				};
 
 			//set all of the area view locations to the plugin folder
 			AreaViewLocationFormats = viewLocationsArray
 				.Concat(new[]
 					{
-						string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Shared/{0}.cshtml"),
-						string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Shared/{0}.vbhtml")                        
+						string.Concat(Constants.PluginsLocation, "/{2}/Views/Shared/{0}.cshtml"),
+						string.Concat(Constants.PluginsLocation, "/{2}/Views/Shared/{0}.vbhtml")                        
 					})
 				.ToArray();
 
@@ -49,17 +51,55 @@ namespace Umbraco.Web.Mvc
 			AreaPartialViewLocationFormats = new[]
 				{
 					//will be used when we have partial view and child action macros
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Partials/{0}.cshtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Partials/{0}.vbhtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/MacroPartials/{0}.cshtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/MacroPartials/{0}.vbhtml"),                    
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/Partials/{0}.cshtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/Partials/{0}.vbhtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/MacroPartials/{0}.cshtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/MacroPartials/{0}.vbhtml"),                    
 					//for partials                    
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/{1}/{0}.cshtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/{1}/{0}.vbhtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Shared/{0}.cshtml"),
-					string.Concat(Constants.PluginsLocation, "/Packages/{2}/Views/Shared/{0}.vbhtml")
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/{1}/{0}.cshtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/{1}/{0}.vbhtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/Shared/{0}.cshtml"),
+					string.Concat(Constants.PluginsLocation, "/{2}/Views/Shared/{0}.vbhtml")
 				};
 
 		}
+
+		/// <summary>
+		/// Ensures that the correct web.config for razor exists in the /Views folder.
+		/// </summary>
+		private void EnsureFolderAndWebConfig(ViewEngineResult result)
+		{
+			if (result.View == null) return;
+			var razorResult = result.View as RazorView;
+			if (razorResult == null) return;
+
+			var folder = Path.GetDirectoryName(IOHelper.MapPath(razorResult.ViewPath));
+			//now we need to get the /View/ folder
+			var viewFolder = folder.Substring(0, folder.LastIndexOf("\\Views\\")) + "\\Views";
+
+			//ensure the web.config file is in the ~/Views folder
+			Directory.CreateDirectory(viewFolder);
+			if (!File.Exists(Path.Combine(viewFolder, "web.config")))
+			{
+				using (var writer = File.CreateText(Path.Combine(viewFolder, "web.config")))
+				{
+					writer.Write(Strings.web_config);
+				}
+			}
+		}
+
+		public override ViewEngineResult FindView(ControllerContext controllerContext, string viewName, string masterName, bool useCache)
+		{			
+			var result = base.FindView(controllerContext, viewName, masterName, useCache);
+			EnsureFolderAndWebConfig(result);
+			return result;
+		}
+
+		public override ViewEngineResult FindPartialView(ControllerContext controllerContext, string partialViewName, bool useCache)
+		{			
+			var result = base.FindPartialView(controllerContext, partialViewName, useCache);
+			EnsureFolderAndWebConfig(result);
+			return result;
+		}
 	}
 }
\ No newline at end of file
diff --git a/src/Umbraco.Web/Mvc/SurfaceController.cs b/src/Umbraco.Web/Mvc/SurfaceController.cs
index 0bd4938d0f..340294ad54 100644
--- a/src/Umbraco.Web/Mvc/SurfaceController.cs
+++ b/src/Umbraco.Web/Mvc/SurfaceController.cs
@@ -9,31 +9,31 @@ namespace Umbraco.Web.Mvc
 	//[PluginController("MyTestSurfaceController")]
 	//public class TestSurfaceController : SurfaceController
 	//{
-	//    public ActionResult Index()
-	//    {
-	//        return View();
-	//        //return Content("<html><body>hello</body></html>");
-	//    }
+	//	public ActionResult Index()
+	//	{
+	//		return View();
+	//		//return Content("<html><body>hello</body></html>");
+	//	}
 
-	//    public ActionResult PostVals(string name)
-	//    {
-	//        ModelState.AddModelError("name", "bad name!");
-	//        return CurrentUmbracoPage();
-	//    }
+	//	public ActionResult PostVals(string name)
+	//	{
+	//		ModelState.AddModelError("name", "bad name!");
+	//		return CurrentUmbracoPage();
+	//	}
 	//}
 
 	//public class LocalSurfaceController : SurfaceController
 	//{
-	//    public ActionResult Index()
-	//    {
-	//        return View();
-	//    }
+	//	public ActionResult Index()
+	//	{
+	//		return View();
+	//	}
 
-	//    public ActionResult PostVals([Bind(Prefix = "blah")]string name)
-	//    {
-	//        ModelState.AddModelError("name", "you suck!");
-	//        return this.RedirectToCurrentUmbracoPage();
-	//    }
+	//	public ActionResult PostVals([Bind(Prefix = "blah")]string name)
+	//	{
+	//		ModelState.AddModelError("name", "you suck!");
+	//		return this.RedirectToCurrentUmbracoPage();
+	//	}
 	//}
 
 	/// <summary>