diff --git a/kernel/init.c b/kernel/init.c
index d9824ef8..28301787 100644
--- a/kernel/init.c
+++ b/kernel/init.c
@@ -48,8 +48,6 @@
 void echo_init(void);
 void ping_init(void);
 
-static volatile int done = 0;
-
 /* 
  * Note that linker symbols are not variables, they have no memory allocated for
  * maintaining a value, rather their address is their value.
@@ -70,17 +68,42 @@ int lowlevel_init(void)
 }
 
 #if defined(CONFIG_LWIP) && (defined(CONFIG_PCI) || defined(CONFIG_ROCKCREEK))
-static tid_t netid;
+static struct netif*	default_netif = NULL;
+static volatile uint32_t lwip_initialized = 0;
 
-int STDCALL network_task(void* arg)
+static void tcp_init_ok(void* e)
 {
-	struct netif 	netif;
+	kputs("TCP/IP init COMPLETE!!\n");
+	lwip_initialized = 1;
+}
+#endif
+
+int network_init(void)
+{
+#if defined(CONFIG_LWIP) && (defined(CONFIG_PCI) || defined(CONFIG_ROCKCREEK))
 	struct ip_addr	ipaddr;
 	struct ip_addr	netmask;
 	struct ip_addr	gw;
 
-	kputs("Network task is started\n");
+	kputs("Initialize network...\n");
 
+	// Initialize lwIP modules
+	tcpip_init(tcp_init_ok, NULL);
+
+	while(!lwip_initialized) {
+		reschedule();
+	}
+
+	// Set up the lwIP network interface
+	// Allocate and configure netif
+	default_netif = (struct netif *) mem_malloc(sizeof(struct netif));
+	if(default_netif == NULL)
+	{
+		kprintf("ERROR: Out of memory for default netif\n");
+		return -ENOMEM;
+	}
+ 
+	memset(default_netif, 0x00, sizeof(struct netif));
 #ifdef CONFIG_ROCKCREEK
 	/* Set network address variables */
 	IP4_ADDR(&gw, 192,168,4,254);
@@ -88,7 +111,7 @@ int STDCALL network_task(void* arg)
 	IP4_ADDR(&netmask, 255,255,255,0);
 
 	/* Bring up the network interface */
-	if (!netif_add(&netif, &ipaddr, &netmask, &gw, NULL, rckemacif_init, ethernet_input)) {
+	if (!netif_add(default_netif, &ipaddr, &netmask, &gw, NULL, rckemacif_init, tcpip_input)) {
 #else
 	/* Clear network address because we use DHCP to get an ip address */
 	IP4_ADDR(&gw, 0,0,0,0);
@@ -96,82 +119,61 @@ int STDCALL network_task(void* arg)
 	IP4_ADDR(&netmask, 0,0,0,0);
 
 	/* Bring up the network interface */
-	if (!netif_add(&netif, &ipaddr, &netmask, &gw, NULL, rtl8139if_init, ethernet_input)) {
+	if (!netif_add(default_netif, &ipaddr, &netmask, &gw, NULL, rtl8139if_init, tcpip_input)) {
 #endif
 		kputs("Unable to add network interface\n");
 		return -ENODEV;
 	}
 
-	netif_set_default(&netif);
-	netif_set_up(&netif);
+	netif_set_default(default_netif);
+	netif_set_up(default_netif);
 
 	/* test if interface is really up */
-	if (!netif_is_up(&netif)) {
+	if (!netif_is_up(default_netif)) {
 		kputs("network interface is not up\n");
 		return -ENODEV;
 	}
 
 #ifndef CONFIG_ROCKCREEK
 	kprintf("Starting DHCPCD...\n");
-	dhcp_start(&netif);
+	dhcp_start(default_netif);
 
+	int mscnt = 0;
 	/* wait for ip address */
-	while(!netif.ip_addr.addr) {
-		rtl8139if_wait(&netif, 1);
-		reschedule();
+	while(!default_netif->ip_addr.addr) {
+		sys_msleep(DHCP_FINE_TIMER_MSECS);
+		dhcp_fine_tmr();
+		mscnt += DHCP_FINE_TIMER_MSECS;
+		if (mscnt >= DHCP_COARSE_TIMER_SECS*1000) {
+			dhcp_coarse_tmr();
+			mscnt = 0;
+		}
 	}
 #else
-	mmnif_open();
+	//mmnif_open();
 #endif
 
 	// start echo and ping server
 	echo_init();
 	ping_init();
-
-	while(!done) {
-#ifdef CONFIG_PCI
-		rtl8139if_wait(&netif, 0);
-#elif defined(CONFIG_ROCKCREEK)
-		rckemacif_wait(&netif, 0);
-#endif
-	}
-
-#ifndef CONFIG_ROCKCREEK
-	dhcp_release(&netif);
-	dhcp_stop(&netif);
 #endif
 
 	return 0;
 }
-#endif
 
 int network_shutdown(void)
 {
 #if defined(CONFIG_LWIP) && defined(CONFIG_ROCKCREEK)
-	mmnif_close();
+	//mmnif_close();
+#elif defined(CONFIG_LWIP) && defined(CONFIG_PCI)
+	dhcp_release(default_netif);
+	dhcp_stop(default_netif);
 #endif
-	done = 1;
+
+	mem_free(default_netif);
+	default_netif = NULL;
 
 	return 0;
 }
 
-static void tcp_init_ok(void* e)
-{
-	kprintf("TCP/IP init COMPLETE!!");
-}
 
-int network_init(void)
-{
-	int ret = 0;
-
-#if defined(CONFIG_LWIP)
-	// Initialize lwIP modules
-	tcpip_init(tcp_init_ok, NULL);
-#endif
-
-#if defined(CONFIG_LWIP) && (defined(CONFIG_PCI) || defined(CONFIG_ROCKCREEK))
-	ret = create_kernel_task(&netid, network_task, NULL);
-#endif
-
-	return ret;
-}