diff --git a/src/tools/msvc.jam b/src/tools/msvc.jam
index 646cc2952..14e40a017 100644
--- a/src/tools/msvc.jam
+++ b/src/tools/msvc.jam
@@ -223,11 +223,14 @@ local rule configure-really (
             {
                 version = 8.0 ;
             }                 
-            else if [ MATCH "(NET 2003[\/\\]VC7)" : $(command) ] ||
-                    [ MATCH "(Microsoft Visual C\\+\\+ Toolkit 2003)" : $(command) ]
+            else if [ MATCH "(NET 2003[\/\\]VC7)" : $(command) ]
             {
                 version = 7.1 ;
             }
+            else if [ MATCH "(Microsoft Visual C\\+\\+ Toolkit 2003)" : $(command) ]
+            {
+                version = 7.1toolkit ;
+            }
             else if [ MATCH "(.NET[\/\\]VC7)" : $(command) ]
             {
                 version = 7.0 ;
@@ -265,71 +268,58 @@ local rule configure-really (
 }
 
 
+# Returns the default installation path for the given version. 
+local rule default-path ( version )
+{
+    # Use auto-detected path if possible 
+    local path = [ get-values <command> : 
+        [ $(.versions).get $(version) : options ] ] ;
+
+    if $(path)
+    {
+        path = $(path:D) ;
+    }
+    else
+    {
+        # Check environment
+        if $(.version-$(version)-env)
+        {
+            local vc-path = [ os.environ $(.version-$(version)-env) ] ;
+            if $(vc-path)
+            {
+                vc-path = [ path.make $(vc-path) ] ;
+                vc-path = [ path.join $(vc-path) $(.version-$(version)-envpath) ] ;
+                vc-path = [ path.native $(vc-path) ] ;
+
+                path = $(vc-path) ;
+            }
+        }
+
+        # Check default path
+        if ! $(path) && $(.version-$(version)-path)
+        {
+            path = [ path.native [ path.join $(.ProgramFiles) $(.version-$(version)-path) ] ] ;
+        }
+    }
+
+    return $(path) ;
+}
+
+# Returns either the default installation path (if 'version' is not empty) or list of all 
+# known default paths (if no version is given)
 rule default-paths ( version ? )
 {
     local possible-paths ;
     
-    local ProgramFiles = [ os.environ ProgramFiles ] ;
-    if ! $(ProgramFiles)
-    {        
-        ProgramFiles = "c:\\Program Files" ;
-    }
-
-    local version-6-path = $(ProgramFiles)"\\Microsoft Visual Studio\\VC98" ;
-    local version-7-path = $(ProgramFiles)"\\Microsoft Visual Studio .NET\\VC7" ;
-    local version-7.0-path = $(version-7-path) ;
-    local version-7.1-path = $(ProgramFiles)"\\Microsoft Visual Studio .NET 2003\\VC7" ;
-    local version-8.0-path = $(ProgramFiles)"\\Microsoft Visual Studio 8" ;
-    
-    local VS71COMNTOOLS = [ os.environ VS71COMNTOOLS ] ;
-    if $(VS71COMNTOOLS)
-    {
-        # VS71COMNTOOLS is set by VS .NET 2003 to <VSDIR>\Common7\Tools
-        version-7.1-path = [ path.make $(VS71COMNTOOLS) ] ;
-        version-7.1-path = [ path.parent $(version-7.1-path) ] ;
-        version-7.1-path = [ path.parent $(version-7.1-path) ] ;
-        version-7.1-path = [ path.join $(version-7.1-path) "VC7" ] ;
-        version-7.1-path = [ path.native $(version-7.1-path) ] ;
-    }
-        
-    local VS80COMNTOOLS = [ os.environ VS80COMNTOOLS ] ;
-
-    if $(VS80COMNTOOLS)
-    {
-        # VS80COMNTOOLS is set by VS .NET 2005 to <VSDIR>\Common7\Tools
-        version-8.0-path = [ path.make "$(VS80COMNTOOLS)" ] ;
-        version-8.0-path = [ path.parent $(version-8.0-path) ] ;
-        version-8.0-path = [ path.parent $(version-8.0-path) ] ;
-        version-8.0-path = [ path.join $(version-8.0-path) "VC" ] ;
-        version-8.0-path = [ path.native $(version-8.0-path) ] ;
-    }
-
-    # Fixed so we don't add paths without \\bin to all versions.
-    # Path without 7.1 
-
     if $(version)
     {
-        local v = [ MATCH ^(6|[^6].*) : $(version) ] ;
-        possible-paths += $(version-$(v)-path) ;
+        default-path += [ default-path $(version) ] ;
     }
     else
     {
-        possible-paths += $(version-8.0-path) $(version-7.1-path) $(version-7.0-path) $(version-6-path) ;
-    }
-    
-    # The vcvars32.bat is actually in "bin" directory.
-    # (except for free VC7.1 tools)
-    possible-paths = $(possible-paths)\\bin ;
-    
-    local VCToolkitInstallDir = [ os.environ VCToolkitInstallDir ] ;
-    if $(VCToolkitInstallDir)
-    {
-        if $(version) = "7.1" || ! $(version)
+        for local i in $(.known-versions)
         {
-            # NOTE it's impossible to switch between Toolkit and VS. 
-            # I wonder is toolkit and VS can be installed together?
-            possible-paths += [ path.native [ path.make $(VCToolkitInstallDir) ] ] ;
-
+            default-path += [ default-path $(i) ] ;
         }
     }
 
@@ -529,3 +519,84 @@ rule compile.c ( targets + : sources * : properties * )
 }
 
 
+#
+# Autodetection code
+#     detects versions listed as '.known-versions' using registry, environment 
+#     and checking default paths. Supports both native Windows and Cygwin.
+#
+
+.ProgramFiles = [ path.make [ common.get-program-files-dir ] ] ;
+
+.known-versions             = 8.0 7.1 7.1toolkit 7.0 6.0 ;
+ 
+# Name of the registry key that contains Visual C++ installation path
+#   (relative to "HKEY_LOCAL_MACHINE\SOFTWARE\\Microsoft\VisualStudio\x.y\Setup"
+.version-6.0-reg            = "Microsoft Visual C++" ;
+.version-7.0-reg            = "VC" ;
+.version-7.1-reg            = "VC" ;
+.version-8.0-reg            = "VC" ;
+
+# Visual C++ Toolkit 2003 do not store its installation path in the registry.
+# The environment variable 'VCToolkitInstallDir' and the default installation 
+# path will be checked instead.
+.version-7.1toolkit-path    = "Microsoft Visual C++ Toolkit 2003" "bin" ;
+.version-7.1toolkit-env     = VCToolkitInstallDir ;
+
+# Path to the folder containing "cl.exe" relative to the value of the corresponding 
+# environment variable
+.version-7.1toolkit-envpath = "bin" ;
+
+
+# Validates given path, registers found configuration and prints debug information 
+# about it.
+local rule register-configuration ( version : path ? )
+{
+    if $(path)
+    {
+        local command = [ GLOB $(path) : cl.exe ] ;
+
+        if $(command)
+        {
+            if $(.debug-configuration)
+            {
+                ECHO "notice: msvc-$(version) detected, command: '$(command)'" ;
+            }
+
+            $(.versions).register $(version) ;
+            $(.versions).set $(version) : options : <command>$(command) ;
+        }
+    }
+}
+
+if [ os.name ] in NT CYGWIN
+{
+    # Get installation paths from the registry
+
+    for local i in $(.known-versions)
+    {
+        if $(.version-$(i)-reg)
+        {
+            local vc-path = [ W32_GETREG
+                "HKEY_LOCAL_MACHINE\\SOFTWARE\\Microsoft\\VisualStudio\\$(i)\\Setup\\"$(.version-$(i)-reg)
+                : "ProductDir" ] ;
+            
+            if $(vc-path)
+            {
+                vc-path = [ path.native [ path.join [ path.make-NT $(vc-path) ] "bin" ] ] ;
+                register-configuration $(i) : $(vc-path) ;
+            }
+        }
+    }
+}
+
+
+# Check environment and default installation paths
+
+for local i in $(.known-versions)
+{
+    if ! $(i) in [ $(.versions).all ]
+    {
+        register-configuration $(i) : [ default-path $(i) ] ;
+    }
+}
+