diff --git a/LIO/FS/Simple.hs b/LIO/FS/Simple.hs
--- a/LIO/FS/Simple.hs
+++ b/LIO/FS/Simple.hs
@@ -63,7 +63,7 @@
   -- * Filesystem errors
   , FSError(..)
   -- * Misc helpers
-  , cleanUpPath
+  , cleanUpPath, taintObjPathP, labelDirectoryRecursively 
   ) where
 
 import Prelude hiding (readFile, writeFile, appendFile)
@@ -79,6 +79,7 @@
 import safe qualified System.IO.Error as IO
 import safe qualified System.Directory as IO
 import safe System.FilePath
+import safe System.Posix.Files
 
 import safe LIO
 import safe LIO.Error
@@ -412,3 +413,24 @@
 
 instance Label l => CleanUpPath (LIO l) where
   cleanUpPath = ioTCB . cleanUpPath
+
+
+-- | Label the directory and every file within recursively with the
+-- supplied label. Note this funciton expects a full path.
+labelDirectoryRecursively :: Label l => l -> FilePath -> IO ()
+labelDirectoryRecursively l dir = do
+  exists <- IO.doesDirectoryExist dir
+  unless exists $ throwIO $ IO.mkIOError IO.doesNotExistErrorType
+                                        ctx Nothing (Just dir)
+  setPathLabelTCB dir l
+  fs <- filter (\f -> f `notElem` [".", ".."]) `liftM` IO.getDirectoryContents dir
+  forM_ fs $ \f -> do
+    let file = dir </> f
+    stat <- getFileStatus file
+    case () of
+      _ | isRegularFile stat -> setPathLabelTCB file l
+      _ | isDirectory stat   -> labelDirectoryRecursively l file
+      _ -> throwIO $ IO.mkIOError IO.illegalOperationErrorType ctx
+                                  Nothing (Just file)
+
+  where ctx = "labelDirectoryRecursively"
diff --git a/LIO/FS/TCB.hs b/LIO/FS/TCB.hs
--- a/LIO/FS/TCB.hs
+++ b/LIO/FS/TCB.hs
@@ -68,7 +68,7 @@
              | FSObjNeedLabel          -- ^ FSobjectcannot be created without a label.
              | FSLabelCorrupt FilePath -- ^ Object label is corrupt.
              | FSIllegalFileName       -- ^ Supplied file name is illegal.
-      deriving Typeable
+      deriving (Eq, Typeable)
 
 instance Exception FSError
 
@@ -112,7 +112,7 @@
 mkFSTCB path l = do
   unless (isAbsolute path) $ throwIO FSRootInvalid
   -- Create root of filesystem:
-  createDirectory path
+  createDirectoryIfMissing False path
   -- Set root label:
   setPathLabelTCB path l
   -- Create magic attribute:
@@ -121,9 +121,12 @@
   return l
 
 -- | Check that the supplied pathis a vaild labeled filesystem root.
--- This function throws a 'FSLabelCorrupt' if the directory does not
--- contain a valid label, and  a 'FSRootCorrupt' if the 'magicAttr'
--- attribute is missing.
+-- This function throws:
+--
+--   * 'FSLabelCorrupt' if the directory does not contain a valid label
+--   * 'FSRootCorrupt' if the 'magicAttr' attribute is invalid
+--   * 'FSRootNoExist' if the directory does not exist or 'magicAttr' is missing
+--
 checkFSTCB :: Label l => FilePath -> IO l
 checkFSTCB path = do
   -- Path must be absolute
@@ -135,14 +138,12 @@
   -- Get the label of the root
   getPathLabelTCB path
    where checkMagic = do
-           magicOK <-(==magicContent) `liftM` 
-                      (throwOnFail $ lgetxattr path magicAttr)
-           unless magicOK doFail
+           magic <- lgetxattr path magicAttr `E.catch`
+                      (\(_:: SomeException) -> throwIO FSRootNoExist)
+           unless (magic == magicContent) $ throwIO FSRootCorrupt
          checkDirExists = do
           e <- doesDirectoryExist path
           unless e $ throwIO FSRootNoExist
-         doFail = throwIO FSRootCorrupt
-         throwOnFail act = act `E.catch` (\(_:: SomeException) -> doFail)
 
 -- | TVar containing per process filestore root.
 rootDir :: MVar (Maybe FilePath)
@@ -176,7 +177,11 @@
 initializeLIOFS path ml = do
  unless (isAbsolute path) $ throwIO FSRootInvalid
  exists <- doesDirectoryExist path
- l <- (if exists then checkFSTCB else mkFSTCB') path
+ l <- if exists
+        then checkFSTCB path `E.catch` (\e -> if e == FSRootNoExist
+                                               then mkFSTCB' path
+                                               else throwIO e)
+        else mkFSTCB' path
  setRoot path
  -- If setRoot fails, we leave the filesystem dirty
  return l
diff --git a/lio-fs.cabal b/lio-fs.cabal
--- a/lio-fs.cabal
+++ b/lio-fs.cabal
@@ -1,5 +1,5 @@
 Name:           lio-fs
-Version:        0.0.1.0
+Version:        0.0.1.2
 Cabal-Version:  >= 1.8
 Build-type:     Simple
 License:        GPL
@@ -41,6 +41,7 @@
    , bytestring
    , filepath
    , directory
+   , unix
    , lio
    , xattr
    , SHA