diff --git a/blocks/admin/block_admin.php b/blocks/admin/block_admin.php
index 0396271ac02..c57b1540b58 100644
--- a/blocks/admin/block_admin.php
+++ b/blocks/admin/block_admin.php
@@ -124,7 +124,7 @@ class block_admin extends block_list {
                 $this->content->icons[]='<img src="'.$CFG->pixpath.'/i/scales.gif" height="16" width="16" alt="" />';
             }
 
-            $this->content->items[]='<a href="'.$CFG->wwwroot.'/course/grades.php?id='.$this->instance->pageid.'">'.get_string('grades').'...</a>';
+            $this->content->items[]='<a href="'.$CFG->wwwroot.'/grade/index.php?id='.$this->instance->pageid.'">'.get_string('grades').'...</a>';
             $this->content->icons[]='<img src="'.$CFG->pixpath.'/i/grades.gif" height="16" width="16" alt="" />';
 
             $this->content->items[]='<a href="log.php?id='.$this->instance->pageid.'">'.get_string('logs').'...</a>';
@@ -146,7 +146,7 @@ class block_admin extends block_list {
         } else if (!isguest()) {  // Students menu
 
             if ($course->showgrades) {
-                $this->content->items[]='<a href="'.$CFG->wwwroot.'/course/grade.php?id='.$this->instance->pageid.'">'.get_string('grades').'...</a>';
+                $this->content->items[]='<a href="'.$CFG->wwwroot.'/grade/index.php?id='.$this->instance->pageid.'">'.get_string('grades').'...</a>';
                 $this->content->icons[]='<img src="'.$CFG->pixpath.'/i/grades.gif" height="16" width="16" alt="" />';
             }
             if ($course->showreports) {
diff --git a/lib/db/mysql.php b/lib/db/mysql.php
index 6cbec46e0eb..18509b333e9 100644
--- a/lib/db/mysql.php
+++ b/lib/db/mysql.php
@@ -1253,6 +1253,65 @@ function main_upgrade($oldversion=0) {
                             ) TYPE=MyISAM COMMENT='Rules for calculating local wall clock time for users';");
     }
 
+    if ($oldversion < 2005032800) {
+        execute_sql("CREATE TABLE `{$CFG->prefix}grade_category` (
+            `id` int(10) unsigned NOT NULL auto_increment,
+            `name` varchar(64) default NULL,
+            `courseid` int(10) unsigned NOT NULL default '0',
+            `drop_x_lowest` int(10) unsigned NOT NULL default '0',
+            `bonus_points` int(10) unsigned NOT NULL default '0',
+            `hidden` int(10) unsigned NOT NULL default '0',
+            `weight` decimal(4,2) default '0.00',
+            PRIMARY KEY  (`id`),
+            KEY `courseid` (`courseid`)
+          ) TYPE=MyISAM ;");
+
+        execute_sql("CREATE TABLE `{$CFG->prefix}grade_exceptions` (
+            `id` int(10) unsigned NOT NULL auto_increment,
+            `courseid` int(10) unsigned NOT NULL default '0',
+            `grade_itemid` int(10) unsigned NOT NULL default '0',
+            `userid` int(10) unsigned NOT NULL default '0',
+            PRIMARY KEY  (`id`),
+            KEY `courseid` (`courseid`)
+          ) TYPE=MyISAM ;");
+
+
+        execute_sql("CREATE TABLE `{$CFG->prefix}grade_item` (
+            `id` int(10) unsigned NOT NULL auto_increment,
+            `courseid` int(10) unsigned default NULL,
+            `category` int(10) unsigned default NULL,
+            `modid` int(10) unsigned default NULL,
+            `cminstance` int(10) unsigned default NULL,
+            `scale_grade` float(11,10) default '1.0000000000',
+            `extra_credit` int(10) unsigned NOT NULL default '0',
+            `sort_order` int(10) unsigned NOT NULL default '0',
+            PRIMARY KEY  (`id`),
+            KEY `courseid` (`courseid`)
+          ) TYPE=MyISAM ;");
+
+
+        execute_sql("CREATE TABLE `{$CFG->prefix}grade_letter` (
+            `id` int(10) unsigned NOT NULL auto_increment,
+            `courseid` int(10) unsigned NOT NULL default '0',
+            `letter` varchar(8) NOT NULL default 'NA',
+            `grade_high` decimal(4,2) NOT NULL default '100.00',
+            `grade_low` decimal(4,2) NOT NULL default '0.00',
+            PRIMARY KEY  (`id`),
+            KEY `courseid` (`courseid`)
+          ) TYPE=MyISAM ;");
+          
+
+        execute_sql("CREATE TABLE `{$CFG->prefix}grade_preferences` (
+            `id` int(10) unsigned NOT NULL auto_increment,
+            `courseid` int(10) unsigned default NULL,
+            `preference` int(10) NOT NULL default '0',
+            `value` int(10) NOT NULL default '0',
+            PRIMARY KEY  (`id`),
+            UNIQUE KEY `courseidpreference` (`courseid`,`preference`)
+          ) TYPE=MyISAM ;");
+          
+    }
+
     return $result;
 }
 
diff --git a/lib/db/mysql.sql b/lib/db/mysql.sql
index fda0471bc04..beb0c09a038 100644
--- a/lib/db/mysql.sql
+++ b/lib/db/mysql.sql
@@ -220,6 +220,88 @@ CREATE TABLE `prefix_cache_text` (
 # --------------------------------------------------------
 
 
+# 
+# Table structure for table `grade_category`
+# 
+
+CREATE TABLE `prefix_grade_category` (
+  `id` int(10) unsigned NOT NULL auto_increment,
+  `name` varchar(64) default NULL,
+  `courseid` int(10) unsigned NOT NULL default '0',
+  `drop_x_lowest` int(10) unsigned NOT NULL default '0',
+  `bonus_points` int(10) unsigned NOT NULL default '0',
+  `hidden` int(10) unsigned NOT NULL default '0',
+  `weight` decimal(4,2) default '0.00',
+  PRIMARY KEY  (`id`),
+  KEY `courseid` (`courseid`)
+) TYPE=MyISAM ;
+
+# --------------------------------------------------------
+
+# 
+# Table structure for table `grade_exceptions`
+# 
+
+CREATE TABLE `prefix_grade_exceptions` (
+  `id` int(10) unsigned NOT NULL auto_increment,
+  `courseid` int(10) unsigned NOT NULL default '0',
+  `grade_itemid` int(10) unsigned NOT NULL default '0',
+  `userid` int(10) unsigned NOT NULL default '0',
+  PRIMARY KEY  (`id`),
+  KEY `courseid` (`courseid`)
+) TYPE=MyISAM ;
+
+# --------------------------------------------------------
+
+# 
+# Table structure for table `grade_item`
+# 
+
+CREATE TABLE `prefix_grade_item` (
+  `id` int(10) unsigned NOT NULL auto_increment,
+  `courseid` int(10) unsigned default NULL,
+  `category` int(10) unsigned default NULL,
+  `modid` int(10) unsigned default NULL,
+  `cminstance` int(10) unsigned default NULL,
+  `scale_grade` float(11,10) default '1.0000000000',
+  `extra_credit` int(10) unsigned NOT NULL default '0',
+  `sort_order` int(10) unsigned NOT NULL default '0',
+  PRIMARY KEY  (`id`),
+  KEY `courseid` (`courseid`)
+) TYPE=MyISAM ;
+
+# --------------------------------------------------------
+
+# 
+# Table structure for table `grade_letter`
+# 
+
+CREATE TABLE `prefix_grade_letter` (
+  `id` int(10) unsigned NOT NULL auto_increment,
+  `courseid` int(10) unsigned NOT NULL default '0',
+  `letter` varchar(8) NOT NULL default 'NA',
+  `grade_high` decimal(4,2) NOT NULL default '100.00',
+  `grade_low` decimal(4,2) NOT NULL default '0.00',
+  PRIMARY KEY  (`id`),
+  KEY `courseid` (`courseid`)
+) TYPE=MyISAM ;
+
+# --------------------------------------------------------
+
+# 
+# Table structure for table `grade_preferences`
+# 
+
+CREATE TABLE `prefix_grade_preferences` (
+  `id` int(10) unsigned NOT NULL auto_increment,
+  `courseid` int(10) unsigned default NULL,
+  `preference` int(10) NOT NULL default '0',
+  `value` int(10) NOT NULL default '0',
+  PRIMARY KEY  (`id`),
+  UNIQUE KEY `courseidpreference` (`courseid`,`preference`)
+) TYPE=MyISAM;
+
+# --------------------------------------------------------
 
 #
 # Table structure for table `group`
diff --git a/lib/db/postgres7.php b/lib/db/postgres7.php
index 9adbaf65282..5d39505a98b 100644
--- a/lib/db/postgres7.php
+++ b/lib/db/postgres7.php
@@ -949,6 +949,7 @@ function main_upgrade($oldversion=0) {
         execute_sql('UPDATE `'.$CFG->prefix.'user` SET timezonename = \'\'');
     }
 
+
     if ($oldversion < 2005032600) {
         execute_sql('DROP TABLE '.$CFG->prefix.'dst_preset', false);
         modify_database('',"CREATE TABLE prefix_timezone (
@@ -971,6 +972,10 @@ function main_upgrade($oldversion=0) {
                             );");
     }
 
+    if ($oldversion < 2005032800) {
+       /// Need GRADE TABLES HERE!
+    }
+
     return $result;
 }
 
diff --git a/version.php b/version.php
index 9f5f5595e00..c902a6a6859 100644
--- a/version.php
+++ b/version.php
@@ -6,7 +6,7 @@
 // This is compared against the values stored in the database to determine
 // whether upgrades should be performed (see lib/db/*.php)
 
-   $version = 2005032600;  // YYYYMMDD = date 
+   $version = 2005032800;  // YYYYMMDD = date 
                            //       XY = increments within a single day
 
    $release = '1.5 UNSTABLE DEVELOPMENT';    // Human-friendly version name