diff --git a/pcsx2/Exceptions.h b/pcsx2/Exceptions.h
index 0d92db9ce0..4c92d5780f 100644
--- a/pcsx2/Exceptions.h
+++ b/pcsx2/Exceptions.h
@@ -83,7 +83,7 @@ namespace Exception
 	{
 	public:
 		virtual ~RuntimeError() throw() {}
-		explicit RuntimeError( const std::string& msg="An unhandled runtime error has occured, somewhere in the depths of Pcsx2's cluttered brain-matter." ) :
+		explicit RuntimeError( const std::string& msg="An unhandled runtime error has occurred, somewhere in the depths of Pcsx2's cluttered brain-matter." ) :
 			BaseException( msg )
 		{}
 	};
@@ -96,7 +96,7 @@ namespace Exception
 			BaseException( msg )
 		{}
 	};
-
+	
 	class OutOfMemory : public RuntimeError
 	{
 	public:
@@ -114,6 +114,16 @@ namespace Exception
 			LogicError( msg ) {}
 	};
 
+	// This exception thrown any time an operation is attempted when an object
+	// is in an uninitialized state.
+	class InvalidArgument : public LogicError
+	{
+	public:
+		virtual ~InvalidArgument() throw() {}
+		explicit InvalidArgument( const std::string& msg="Invalid argument passed to a function." ) :
+			LogicError( msg ) {}
+	};
+
 	// Keep those array indexers in bounds when using the SafeArray type, or you'll be
 	// seeing these.
 	class IndexBoundsFault : public LogicError
@@ -142,6 +152,132 @@ namespace Exception
 			RuntimeError( msg ) {}
 	};
 
+	class PluginFailure : public RuntimeError
+	{
+	public:
+		std::string plugin_name;		// name of the plugin
+
+		virtual ~PluginFailure() throw() {}
+		explicit PluginFailure( const std::string& plugin, const std::string& msg = "A plugin encountered a critical error." ) :
+			RuntimeError( msg )
+		,	plugin_name( plugin ) {}
+	};
+
+	class ThreadCreationError : public RuntimeError
+	{
+	public:
+		virtual ~ThreadCreationError() throw() {}
+		explicit ThreadCreationError( const std::string& msg="Thread could not be created." ) :
+			RuntimeError( msg ) {}
+	};
+
+	// This is a "special" exception that's primarily included for safe functioning in the 
+	// Win32's ASCII API (ie, the non-Unicode one).  Many of the old Win32 APIs don't support
+	// paths over 256 characters.
+	class PathTooLong : public RuntimeError
+	{
+	public:
+		virtual ~PathTooLong() throw() {}
+		explicit PathTooLong( const std::string& msg=
+			"A Pcsx2 pathname was too long for the system.  Please move or reinstall Pcsx2 to\n"
+			"a location on your hard drive that has a shorter path." ) :
+			RuntimeError( msg ) {}
+	};
+
+	///////////////////////////////////////////////////////////////////////
+	//                        STREAMING EXCEPTIONS
+
+	// Generic stream error.  Contains the name of the stream and a message.
+	// This exception is usually thrown via derrived classes, except in the (rare) case of a generic / unknown error.
+	class Stream : public RuntimeError
+	{
+	public:
+		std::string stream_name;		// name of the stream (if applicable)
+
+		virtual ~Stream() throw() {}
+
+		// copy construct!
+		Stream( const Stream& src ) :
+			RuntimeError( src.Message() )
+		,	stream_name( src.stream_name ) {}
+
+		explicit Stream(
+			const std::string& objname=std::string(),
+			const std::string& msg="Invalid stream object" ) :
+		  RuntimeError( msg + "\n\tFilename: " + objname )
+		, stream_name( objname ) {}
+	};
+
+	// A generic base error class for bad streams -- corrupted data, sudden closures, loss of
+	// connection, or anything else that would indicate a failure to read the data after the
+	// stream was successfully opened.
+	class BadStream : public Stream
+	{
+	public:
+		virtual ~BadStream() throw() {}
+		explicit BadStream(
+			const std::string& objname=std::string(),
+			const std::string& msg="Stream data is corrupted or incomplete, or the stream connection closed unexpectedly" ) :
+		Stream( objname, msg ) {}
+	};
+
+	// A generic exception for odd-ball stream creation errors.
+	class CreateStream : public Stream
+	{
+	public:
+		virtual ~CreateStream() throw() {}
+		explicit CreateStream(
+			const std::string& objname=std::string(),
+			const std::string& msg="Stream could not be created or opened" ) :
+		Stream( objname, msg ) {}	
+	};
+
+	// Exception thrown when an attempt to open a non-existent file is made.
+	// (this exception can also mean file permissions are invalid)
+	class FileNotFound : public CreateStream
+	{
+	public:
+		virtual ~FileNotFound() throw() {}
+		explicit FileNotFound(
+			const std::string& objname=std::string(),
+			const std::string& msg="File not found" ) :
+		CreateStream( objname, msg ) {}
+	};
+
+	class AccessDenied : public CreateStream
+	{
+	public:
+		virtual ~AccessDenied() throw() {}
+		explicit AccessDenied(
+			const std::string& objname=std::string(),
+			const std::string& msg="Permission denied to file or stream" ) :
+		CreateStream( objname, msg ) {}
+	};
+
+	// Generic End of Stream exception (sometimes an error, and sometimes just used as a
+	// shortcut for manual feof checks).
+	class EndOfStream : public Stream
+	{
+	public:
+		virtual ~EndOfStream() throw() {}
+		explicit EndOfStream( const std::string& objname=std::string(), const std::string& msg="End of stream was encountered" ) :
+			Stream( objname, msg ) {}
+	};
+
+	//////////////////////////////////////////////////////////////////////////
+	//                       SAVESTATE EXCEPTIONS
+
+	// Exception thrown when a corrupted or truncated savestate is encountered.
+	class BadSavedState : public BadStream
+	{
+	public:
+		virtual ~BadSavedState() throw() {}
+		explicit BadSavedState(
+			const std::string& objname=std::string(),
+			const std::string& msg="Savestate data is corrupted or incomplete" ) :
+		BadStream( objname, msg ) {}
+	};
+
 	// Exception thrown by SaveState class when a critical plugin or gzread
 	class FreezePluginFailure : public RuntimeError
 	{
@@ -208,96 +344,6 @@ namespace Exception
 		,	Crc_Cdvd( crc_cdvd )
 		{}
 	};
-
-	class PluginFailure : public RuntimeError
-	{
-	public:
-		std::string plugin_name;		// name of the plugin
-
-		virtual ~PluginFailure() throw() {}
-		explicit PluginFailure( const std::string& plugin, const std::string& msg = "A plugin encountered a critical error." ) :
-			RuntimeError( msg )
-		,	plugin_name( plugin ) {}
-	};
-
-	class ThreadCreationError : public RuntimeError
-	{
-	public:
-		virtual ~ThreadCreationError() throw() {}
-		explicit ThreadCreationError( const std::string& msg="Thread could not be created." ) :
-			RuntimeError( msg ) {}
-	};
-
-	// This is a "special" exception that's primarily included for safe functioning in the 
-	// Win32's ASCII API (ie, the non-Unicode one).  Many of the old Win32 APIs don't support
-	// paths over 256 characters.
-	class PathTooLong : public RuntimeError
-	{
-	public:
-		virtual ~PathTooLong() throw() {}
-		explicit PathTooLong( const std::string& msg=
-			"A Pcsx2 pathname was too long for the system.  Please move or reinstall Pcsx2 to\n"
-			"a location on your hard drive that has a shorter path." ) :
-			RuntimeError( msg ) {}
-	};
-
-	///////////////////////////////////////////////////////////////////////
-	//                     BEGIN STREAMING EXCEPTIONS
-
-	// Generic stream error.  Contains the name of the stream and a message.
-	// This exception is usually thrown via derrived classes, except in the (rare) case of a generic / unknown error.
-	class Stream : public RuntimeError
-	{
-	public:
-		std::string stream_name;		// name of the stream (if applicable)
-
-		virtual ~Stream() throw() {}
-
-		// copy construct!
-		Stream( const Stream& src ) :
-			RuntimeError( src.Message() )
-		,	stream_name( src.stream_name ) {}
-
-		explicit Stream(
-			const std::string& objname=std::string(),
-			const std::string& msg="Invalid stream object" ) :
-		  RuntimeError( msg + ": " + objname )
-		, stream_name( objname ) {}
-	};
-
-	// Exception thrown when a corrupted or truncated savestate is encountered.
-	class BadSavedState : public Stream
-	{
-	public:
-		virtual ~BadSavedState() throw() {}
-		explicit BadSavedState(
-			const std::string& objname=std::string(),
-			const std::string& msg="Corrupted data or end of file encountered while loading savestate" ) :
-		Stream( objname, msg ) {}
-	};
-
-	// Exception thrown when an attempt to open a non-existant file is made.
-	// (this exception can also mean file permissions are invalid)
-	class FileNotFound : public Stream
-	{
-	public:
-		virtual ~FileNotFound() throw() {}
-		explicit FileNotFound(
-			const std::string& objname=std::string(),
-			const std::string& msg="File not found or permission denied" ) :
-		Stream( objname, msg ) {}
-	};
-
-	// Generic End of Stream exception (sometimes an error, and sometimes just used as a
-	// shortcut for manual feof checks).
-	class EndOfStream : public Stream
-	{
-	public:
-		virtual ~EndOfStream() throw() {}
-		explicit EndOfStream( const std::string& objname=std::string(), const std::string& msg="End of stream was encountered" ) :
-			Stream( objname, msg ) {}
-	};
-
 }
 
 #endif
diff --git a/pcsx2/IopCounters.cpp b/pcsx2/IopCounters.cpp
index bc73bc13ea..3f30937e2b 100644
--- a/pcsx2/IopCounters.cpp
+++ b/pcsx2/IopCounters.cpp
@@ -30,7 +30,6 @@ s32 psxNextCounter;
 u32 psxNextsCounter;
 u8 psxhblankgate = 0;
 u8 psxvblankgate = 0;
-u8 psxcntmask = 0;
 
 // flags when the gate is off or counter disabled. (do not count)
 #define IOPCNT_STOPPED	(0x10000000ul)
@@ -718,9 +717,30 @@ u64 psxRcntCycles(int index)
 	return (u64)(psxCounters[index].count + (u32)((psxRegs.cycle - psxCounters[index].sCycleT) / psxCounters[index].rate));
 }
 
+void psxRcntSetGates()
+{
+	if(psxCounters[0].mode & IOPCNT_ENABLE_GATE)
+		psxhblankgate |= 1;
+	else
+		psxhblankgate &= ~1;
+
+	if(psxCounters[1].mode & IOPCNT_ENABLE_GATE)
+		psxvblankgate |= 1<<1;
+	else
+		psxvblankgate &= ~(1<<1);
+
+	if(psxCounters[3].mode & IOPCNT_ENABLE_GATE)
+		psxvblankgate |= 1<<3;
+	else
+		psxvblankgate &= ~(1<<3);
+}
+
 void SaveState::psxRcntFreeze()
 {
     Freeze(psxCounters);
 	Freeze(psxNextCounter);
 	Freeze(psxNextsCounter);
+	
+	if( IsLoading() )
+		psxRcntSetGates();
 }
diff --git a/pcsx2/IopSio2.cpp b/pcsx2/IopSio2.cpp
index acad16bcee..d46502728b 100644
--- a/pcsx2/IopSio2.cpp
+++ b/pcsx2/IopSio2.cpp
@@ -98,16 +98,13 @@ void sio2_setSend3(u32 index, u32 value)
 {
 //	int i;
 	sio2.packet.sendArray3[index]=value;
-#ifdef PAD_LOG
 //	if (index==15){
 //		for (i=0; i<4; i++){PAD_LOG("0x%08X ", sio2.packet.sendArray1[i]);}PAD_LOG("\n");
 //		for (i=0; i<4; i++){PAD_LOG("0x%08X ", sio2.packet.sendArray2[i]);}PAD_LOG("\n");
 //		for (i=0; i<8; i++){PAD_LOG("0x%08X ", sio2.packet.sendArray3[i]);}PAD_LOG("\n");
 //		for (  ; i<16; i++){PAD_LOG("0x%08X ", sio2.packet.sendArray3[i]);}PAD_LOG("\n");
-	PAD_LOG("[%d] : 0x%08X ", index,sio2.packet.sendArray3[index]);
-		PAD_LOG("\n");
+	PAD_LOG("[%d] : 0x%08X\n", index,sio2.packet.sendArray3[index]);
 //	}
-#endif
 }	//0->15
 
 u32 sio2_getSend3(u32 index) {return sio2.packet.sendArray3[index];}				//0->15
@@ -227,14 +224,12 @@ void psxDma11(u32 madr, u32 bcr, u32 chcr) {
 		{
 			sio2_fifoIn(PSXMu8(madr));
 			madr++;
-			if(sio2.packet.sendSize == BUFSIZE) {
-				HW_DMA11_MADR = madr;
-				PSX_INT(IopEvt_Dma11,(size>>2));	// Interrupts should always occur at the end
-				return;
-			}
+			if(sio2.packet.sendSize == BUFSIZE)
+				goto finished;
 		}
 	}
 
+finished:
 	HW_DMA11_MADR = madr;
 	PSX_INT(IopEvt_Dma11,(size>>2));	// Interrupts should always occur at the end
 }
diff --git a/pcsx2/Sio.cpp b/pcsx2/Sio.cpp
index 2087540bd1..5dffc2da4b 100644
--- a/pcsx2/Sio.cpp
+++ b/pcsx2/Sio.cpp
@@ -23,12 +23,12 @@
 
 _sio sio;
 
-static FILE * MemoryCard1, * MemoryCard2;
+static FILE * MemoryCard1=NULL, * MemoryCard2=NULL;
 
 static const u8 cardh[4] = { 0xFF, 0xFF, 0x5a, 0x5d };
 
 // Memory Card Specs : Sector size etc.
-static const struct mc_command_0x26_tag mc_command_0x26= {'+', 512, 16, 0x4000, 0x52, 0x5A};
+static const mc_command_0x26_tag mc_command_0x26= {'+', 512, 16, 0x4000, 0x52, 0x5A};
 
 // SIO Inline'd IRQs : Calls the SIO interrupt handlers directly instead of
 // feeding them through the IOP's branch test. (see SIO.H for details)
@@ -68,8 +68,11 @@ void sioInit()
 {
 	memzero_obj(sio);
 	
-	MemoryCard1 = LoadMcd(1);
-	MemoryCard2 = LoadMcd(2);
+	if( MemoryCard1 == NULL )
+		MemoryCard1 = LoadMcd(1);
+	
+	if( MemoryCard2 == NULL )
+		MemoryCard2 = LoadMcd(2);
 
 	// Transfer(?) Ready and the Buffer is Empty
 	sio.StatReg = TX_RDY | TX_EMPTY;
@@ -81,6 +84,9 @@ void psxSIOShutdown()
 {
 	if(MemoryCard1) fclose(MemoryCard1);
 	if(MemoryCard2) fclose(MemoryCard2);
+	
+	MemoryCard1 = NULL;
+	MemoryCard2 = NULL;
 }
 
 u8 sioRead8() {
@@ -538,23 +544,32 @@ void SaveState::sioFreeze()
  ***************   MEMORY CARD SPECIFIC FUNCTIONS  *****************
  *******************************************************************
  *******************************************************************/
-FILE *LoadMcd(int mcd) {
-	char str[g_MaxPath];
+
+#ifdef WIN32
+extern void NTFS_CompressFile( const char* file );
+#endif
+
+FILE *LoadMcd(int mcd)
+{
+	string str;
 	FILE *f;
 
-	if (mcd == 1) {
-		strcpy(str, Config.Mcd1);
-	} else {
-		strcpy(str, Config.Mcd2);
-	}
-	if (*str == 0) sprintf(str, MEMCARDS_DIR "/Mcd00%d.ps2", mcd);
-	f = fopen(str, "r+b");
+	str = (mcd == 1) ? Config.Mcd1 : Config.Mcd2;
+
+	if( str.empty() )
+		Path::Combine( str, MEMCARDS_DIR, fmt_string( "Mcd00%d.ps2", mcd ) );
+
+	if( !Path::Exists(str) )
+		CreateMcd(str.c_str());
+	
+#ifdef WIN32
+	NTFS_CompressFile( str.c_str() );
+#endif
+
+	f = fopen(str.c_str(), "r+b");
+
 	if (f == NULL) {
-		CreateMcd(str);
-		f = fopen(str, "r+b");
-	}
-	if (f == NULL) {
-		Msgbox::Alert("Failed loading MemCard %s", params str); 
+		Msgbox::Alert("Failed loading MemCard from file: %hs", params &str); 
 		return NULL;
 	}
 
@@ -573,76 +588,51 @@ void SeekMcd(FILE *f, u32 adr) {
 		fseek(f, adr, SEEK_SET);
 }
 
-void ReadMcd(int mcd, u8 *data, u32 adr, int size) {
-	if(mcd == 1)
-	{
-		if (MemoryCard1 == NULL) {
-			memset(data, 0, size);
-			return;
-		}
-		SeekMcd(MemoryCard1, adr);
-		fread(data, 1, size, MemoryCard1);
-	}
-	else
-	{
-		if (MemoryCard2 == NULL) {
-			memset(data, 0, size);
-			return;
-		}
-		SeekMcd(MemoryCard2, adr);
-		fread(data, 1, size, MemoryCard2);
+void ReadMcd(int mcd, u8 *data, u32 adr, int size)
+{
+	FILE* const mcfp = (mcd == 1) ? MemoryCard1 : MemoryCard2;
+
+	if (mcfp == NULL) {
+		memset(data, 0, size);
+		return;
 	}
+	SeekMcd(mcfp, adr);
+	fread(data, 1, size, mcfp);
 }
 
-void SaveMcd(int mcd, const u8 *data, u32 adr, int size) {
-	if(mcd == 1)
+void SaveMcd(int mcd, const u8 *data, u32 adr, int size)
+{
+	FILE* const mcfp = (mcd == 1) ? MemoryCard1 : MemoryCard2;
+
+	SeekMcd(mcfp, adr);
+	u8 *currentdata = (u8 *)malloc(size);
+	fread(currentdata, 1, size, mcfp);
+	for (int i=0; i<size; i++)
 	{
-		SeekMcd(MemoryCard1, adr);
-		u8 *currentdata = (u8 *)malloc(size);
-		fread(currentdata, 1, size, MemoryCard1);
-		for (int i=0; i<size; i++)
-		{
-			if ((currentdata[i] & data[i]) != data[i])
-				Console::Notice("MemoryCard : writing odd data");
-			currentdata[i] &= data[i];
-		}
-		SeekMcd(MemoryCard1, adr);
-		fwrite(currentdata, 1, size, MemoryCard1);
+		if ((currentdata[i] & data[i]) != data[i])
+			Console::Notice("MemoryCard : writing odd data");
+		currentdata[i] &= data[i];
 	}
-	else
-	{
-		SeekMcd(MemoryCard2, adr);
-		u8 *currentdata = (u8 *)malloc(size);
-		fread(currentdata, 1, size, MemoryCard2);
-		for (int i=0; i<size; i++)
-		{
-			if ((currentdata[i] & data[i]) != data[i])
-				Console::Notice("MemoryCard : writing odd data");
-			currentdata[i] &= data[i];
-		}
-		SeekMcd(MemoryCard2, adr);
-		fwrite(currentdata, 1, size, MemoryCard2);
-	}		
+	SeekMcd(mcfp, adr);
+	fwrite(currentdata, 1, size, mcfp);
+
+	free(currentdata);
 }
 
 
-void EraseMcd(int mcd, u32 adr) {
+void EraseMcd(int mcd, u32 adr)
+{
 	u8 data[528*16];
 	memset8_obj<0xff>(data);		// clears to -1's
-	if(mcd == 1)
-	{
-		SeekMcd(MemoryCard1, adr);
-		fwrite(data, 1, 528*16, MemoryCard1);
-	}
-	else
-	{
-		SeekMcd(MemoryCard2, adr);
-		fwrite(data, 1, 528*16, MemoryCard2);
-	}		
+
+	FILE* const mcfp = (mcd == 1) ? MemoryCard1 : MemoryCard2;
+	SeekMcd(mcfp, adr);
+	fwrite(data, 1, 528*16, mcfp);
 }
 
 
-void CreateMcd(char *mcd) {
+void CreateMcd(const char *mcd)
+{
 	FILE *fp;	
 	int i=0, j=0;
 	//int enc[16] = {0x77,0x7f,0x7f,0x77,0x7f,0x7f,0x77,0x7f,0x7f,0x77,0x7f,0x7f,0,0,0,0};
diff --git a/pcsx2/Sio.h b/pcsx2/Sio.h
index c895415c4e..c23acad523 100644
--- a/pcsx2/Sio.h
+++ b/pcsx2/Sio.h
@@ -101,7 +101,7 @@ FILE *LoadMcd(int mcd);
 void ReadMcd(int mcd, u8 *data, u32 adr, int size);
 void SaveMcd(int mcd, const u8 *data, u32 adr, int size);
 void EraseMcd(int mcd, u32 adr);
-void CreateMcd(char *mcd);
+void CreateMcd(const char *mcd);
 
 struct McdBlock {
 	char Title[48];
diff --git a/pcsx2/windows/VCprojects/pcsx2_2008.vcproj b/pcsx2/windows/VCprojects/pcsx2_2008.vcproj
index 8e240c4a0f..29d65f83ea 100644
--- a/pcsx2/windows/VCprojects/pcsx2_2008.vcproj
+++ b/pcsx2/windows/VCprojects/pcsx2_2008.vcproj
@@ -2594,6 +2594,10 @@
 				RelativePath="..\..\ThreadTools.cpp"
 				>
 			</File>
+			<File
+				RelativePath="..\WinCompressNTFS.cpp"
+				>
+			</File>
 			<File
 				RelativePath="..\WinThreads.cpp"
 				>
diff --git a/pcsx2/windows/Win32.h b/pcsx2/windows/Win32.h
index 5b2d6e1b72..7bff43adff 100644
--- a/pcsx2/windows/Win32.h
+++ b/pcsx2/windows/Win32.h
@@ -99,8 +99,22 @@ extern int g_SaveGSStream;
 
 
 // sets the contents of the Pcsx2 status bar...
-void StatusBar_Notice( const std::string& text );
-void StatusBar_SetMsg( const std::string& text );
+extern void StatusBar_Notice( const std::string& text );
+extern void StatusBar_SetMsg( const std::string& text );
+
+// Throws an exception based on the value returned from GetLastError.
+// Performs an option return value success/fail check on hresult.
+extern void StreamException_ThrowLastError( const string& streamname, HANDLE result=INVALID_HANDLE_VALUE );
+
+// Throws an exception based on the given error code (usually taken from ANSI C's errno)
+extern void StreamException_ThrowFromErrno( const string& streamname, errno_t errcode );
+
+extern bool StreamException_LogFromErrno( const string& streamname, const char* action, errno_t result );
+extern bool StreamException_LogLastError( const string& streamname, const char* action, HANDLE result=INVALID_HANDLE_VALUE );
+
+// Sets the NTFS compression flag for a directory or file.
+// This function does not operate recursively.  If the given directory
+extern void NTFS_CompressFile( const char* file );
 
 #endif
 
diff --git a/pcsx2/windows/WinSysExec.cpp b/pcsx2/windows/WinSysExec.cpp
index 2219ee55e0..c9bb289a34 100644
--- a/pcsx2/windows/WinSysExec.cpp
+++ b/pcsx2/windows/WinSysExec.cpp
@@ -757,6 +757,11 @@ bool SysInit()
 	CreateDirectory(MEMCARDS_DIR, NULL);
 	CreateDirectory(SSTATES_DIR, NULL);
 
+	// Set the compression attribute on the Memcards folder.
+	// Memcards generally compress very well via NTFS compression.
+	
+	NTFS_CompressFile( MEMCARDS_DIR );
+
 	if( IsDevBuild && emuLog == NULL && g_TestRun.plogname != NULL )
 		emuLog = fopen(g_TestRun.plogname, "w");