diff --git a/src/iso.c b/src/iso.c
index 1145b419..6375ea4a 100644
--- a/src/iso.c
+++ b/src/iso.c
@@ -28,6 +28,8 @@
 #include <windows.h>
 #include <stdio.h>
 #include <malloc.h>
+#include <io.h>
+#include <direct.h>
 #ifndef ISO_TEST
 #include "rufus.h"
 #else
@@ -39,6 +41,10 @@
 #include <cdio/iso9660.h>
 #include <cdio/udf.h>
 
+#ifndef CEILING
+#define CEILING(x, y) ((x+(y-1))/y)
+#endif
+
 #define print_vd_info(title, fn)			\
 	if (fn(p_iso, &psz_str)) {				\
 		uprintf(title ": %s\n", psz_str);	\
@@ -84,20 +90,28 @@ static void udf_list_files(udf_t *p_udf, udf_dirent_t *p_udf_dirent, const char
 	}
 }
 
+const char* extract_dir = "D:/tmp/iso";
+
 static void iso_list_files(iso9660_t* p_iso, const char *psz_path)
 {
-	char filename[4096], *p;
+	FILE *fd;
+	char filename[4096], *p, *iso_filename;
+	unsigned char buf[ISO_BLOCKSIZE];
 	CdioListNode_t* p_entnode;
 	iso9660_stat_t *p_statbuf;
 	CdioList_t* p_entlist;
+	size_t i, i_blocks;
+	lsn_t lsn;
 
 	if ( (p_iso == NULL) || (psz_path == NULL))
 		return;
 
-	strncpy(filename, psz_path, 4094);
-	p = &filename[strlen(psz_path)];
-	*p++ = '/';
-	*p = 0;
+	// TODO: safe_###
+	strcpy(filename, extract_dir);
+	iso_filename = &filename[strlen(filename)];
+	strcat(filename, psz_path);
+	strcat(filename, "/");
+	p = &filename[strlen(filename)];
 	p_entlist = iso9660_ifs_readdir(p_iso, psz_path);
 
 	if (!p_entlist)
@@ -111,9 +125,43 @@ static void iso_list_files(iso9660_t* p_iso, const char *psz_path)
 		iso9660_name_translate(p_statbuf->filename, p);
 		uprintf("%s [LSN %6d] %8u %s\n", (p_statbuf->type == _STAT_DIR)?"d":"-",
 			p_statbuf->lsn, p_statbuf->size, filename);
-		if (p_statbuf->type == _STAT_DIR)
-			iso_list_files(p_iso, filename);
+		if (p_statbuf->type == _STAT_DIR) {
+			// TODO: Joliet and Unicode support
+			_mkdir(filename);
+			iso_list_files(p_iso, iso_filename);
+		} else {
+			fd = fopen(filename, "wb");
+			if (fd == NULL) {
+				uprintf("Unable to create file %s\n", filename);
+				goto out;
+			}
+			i_blocks = CEILING(p_statbuf->size, ISO_BLOCKSIZE);
+			for (i = 0; i < i_blocks ; i++) {
+				memset (buf, 0, ISO_BLOCKSIZE);
+				lsn = p_statbuf->lsn + i;
+				if (iso9660_iso_seek_read (p_iso, buf, lsn, 1) != ISO_BLOCKSIZE) {
+					uprintf("Error reading ISO 9660 file %s at LSN %lu\n",
+						iso_filename, (long unsigned int)lsn);
+					goto out;
+				}
+				fwrite (buf, ISO_BLOCKSIZE, 1, fd);
+				if (ferror(fd)) {
+					uprintf("Error writing file %s\n", filename);
+					goto out;
+				}
+			}
+			// TODO: this is slowing us down! Compute the size to use with fwrite instead
+			fflush(fd);
+			/* Make sure the file size has the exact same byte size. Without the
+			   truncate below, the file will a multiple of ISO_BLOCKSIZE. */
+			if (_chsize(_fileno(fd), p_statbuf->size)) {
+				uprintf("Error adjusting file size for %s\n", filename);
+				goto out;
+			}
+			fclose(fd);
+		}
 	}
+out:
 	_cdio_list_free(p_entlist, true);
 }
 
diff --git a/src/rufus.rc b/src/rufus.rc
index 51c11d6a..01f2c625 100644
--- a/src/rufus.rc
+++ b/src/rufus.rc
@@ -33,7 +33,7 @@ LANGUAGE LANG_ENGLISH, SUBLANG_NEUTRAL
 IDD_DIALOG DIALOGEX 12, 12, 206, 278
 STYLE DS_SETFONT | DS_MODALFRAME | DS_FIXEDSYS | WS_POPUP | WS_CAPTION | WS_SYSMENU
 EXSTYLE WS_EX_APPWINDOW
-CAPTION "Rufus v1.0.7.137"
+CAPTION "Rufus v1.0.7.138"
 FONT 8, "MS Shell Dlg", 400, 0, 0x1
 BEGIN
     DEFPUSHBUTTON   "Start",IDC_START,94,236,50,14
@@ -70,7 +70,7 @@ BEGIN
     DEFPUSHBUTTON   "OK",IDOK,231,175,50,14,WS_GROUP
     CONTROL         "<a href=""http://rufus.akeo.ie"">http://rufus.akeo.ie</a>",IDC_ABOUT_RUFUS_URL,
                     "SysLink",WS_TABSTOP,46,47,114,9
-    LTEXT           "Version 1.0.7 (Build 137)",IDC_STATIC,46,19,78,8
+    LTEXT           "Version 1.0.7 (Build 138)",IDC_STATIC,46,19,78,8
     PUSHBUTTON      "License...",IDC_ABOUT_LICENSE,46,175,50,14,WS_GROUP
     EDITTEXT        IDC_ABOUT_COPYRIGHTS,46,107,235,63,ES_MULTILINE | ES_READONLY | WS_VSCROLL
     LTEXT           "Report bugs or request enhancements at:",IDC_STATIC,46,66,187,8
@@ -208,8 +208,8 @@ END
 //
 
 VS_VERSION_INFO VERSIONINFO
- FILEVERSION 1,0,7,137
- PRODUCTVERSION 1,0,7,137
+ FILEVERSION 1,0,7,138
+ PRODUCTVERSION 1,0,7,138
  FILEFLAGSMASK 0x3fL
 #ifdef _DEBUG
  FILEFLAGS 0x1L
@@ -226,13 +226,13 @@ BEGIN
         BEGIN
             VALUE "CompanyName", "akeo.ie"
             VALUE "FileDescription", "Rufus"
-            VALUE "FileVersion", "1.0.7.137"
+            VALUE "FileVersion", "1.0.7.138"
             VALUE "InternalName", "Rufus"
             VALUE "LegalCopyright", "© 2011 Pete Batard (GPL v3)"
             VALUE "LegalTrademarks", "http://www.gnu.org/copyleft/gpl.html"
             VALUE "OriginalFilename", "rufus.exe"
             VALUE "ProductName", "Rufus"
-            VALUE "ProductVersion", "1.0.7.137"
+            VALUE "ProductVersion", "1.0.7.138"
         END
     END
     BLOCK "VarFileInfo"