diff --git a/hdr/stacks.inc b/hdr/stacks.inc
index 1321b55..cf49d2b 100644
--- a/hdr/stacks.inc
+++ b/hdr/stacks.inc
@@ -128,7 +128,7 @@ irp_hi    equ 26
 ;
 
 
-%IFNDEF I386
+%IF XCPU < 386
 	; no need to save/restore  anything
 
 ;	error 1 2 3
diff --git a/kernel/entry.asm b/kernel/entry.asm
index e33ccaa..add900c 100644
--- a/kernel/entry.asm
+++ b/kernel/entry.asm
@@ -344,7 +344,7 @@ int21_exit_nodec:
                 pop bp      ; get back user stack
                 pop si
 
-%IFDEF I386
+%if XCPU >= 386
 %ifdef WATCOM
                 sub bp, 4   ; for fs and gs only
 %else        
diff --git a/kernel/int2f.asm b/kernel/int2f.asm
index 3dbf06e..ee12fd1 100644
--- a/kernel/int2f.asm
+++ b/kernel/int2f.asm
@@ -132,7 +132,7 @@ IntDosCal:
 
     cld
 
-%IFDEF I386
+%if XCPU >= 386
   %ifdef WATCOM
     mov si,fs
     mov di,gs 
@@ -145,7 +145,7 @@ IntDosCal:
     extern   _int2F_12_handler
     call _int2F_12_handler
 
-%IFDEF I386
+%if XCPU >= 386
   %ifdef WATCOM
     mov fs,si
     mov gs,di
diff --git a/kernel/kernel.asm b/kernel/kernel.asm
index df51bd1..3a85a89 100644
--- a/kernel/kernel.asm
+++ b/kernel/kernel.asm
@@ -324,7 +324,7 @@ _LoL_nbuffers   dw      1               ; 003F number of buffers
                 global  _BootDrive
 _BootDrive      db      1               ; 0043 drive we booted from   
 
-%IFNDEF I386
+%IF XCPU < 386
                 db      0               ; 0044 cpu type (1 if >=386)
 %ELSE                
                 db      1               ; 0044 cpu type (1 if >=386)
diff --git a/kernel/segs.inc b/kernel/segs.inc
index f54100f..ba6e123 100644
--- a/kernel/segs.inc
+++ b/kernel/segs.inc
@@ -27,6 +27,17 @@
 ; $Header$
 ;
 
+; CPU specification -- putting it here because all .asm files include this
+; file __NASM_VER__ was introduced in NASM after CPU -- ver 0.98 doesn't
+; understand it
+%ifdef __NASM_VER__
+%if XCPU == 86
+CPU 8086
+%else
+CPU XCPU
+%endif
+%endif
+
 group   PGROUP          PSP
 group   LGROUP          _LOWTEXT _IO_TEXT _IO_FIXED_DATA _TEXT
 group   DGROUP          _FIXED_DATA _BSS _DATA _DATAEND CONST CONST2 DCONST DYN_DATA
diff --git a/mkfiles/generic.mak b/mkfiles/generic.mak
index d107130..5e97ea2 100644
--- a/mkfiles/generic.mak
+++ b/mkfiles/generic.mak
@@ -20,11 +20,7 @@ NASMFLAGS=$(NASMFLAGS) -DWITHFAT32
 !endif
 
 NASM=$(XNASM)
-!if $(XCPU) == 386
-NASMFLAGS   = $(NASMFLAGS) -i../hdr/ -DI386
-!else
-NASMFLAGS   = $(NASMFLAGS) -i../hdr/
-!endif
+NASMFLAGS   = $(NASMFLAGS) -i../hdr/ -DXCPU=$(XCPU)
 
 LINK=$(XLINK)