diff --git a/stepmania/src/PrefsManager.cpp b/stepmania/src/PrefsManager.cpp
index 59b5781a7c..9e0633b32b 100644
--- a/stepmania/src/PrefsManager.cpp
+++ b/stepmania/src/PrefsManager.cpp
@@ -10,8 +10,9 @@
 #include "ProductInfo.h"
 #include "GameConstantsAndTypes.h"
 
-#define STEPMANIA_INI_PATH "Data/StepMania.ini"
-#define STATIC_INI_PATH "Data/Static.ini"
+#define DEFAULTS_INI_PATH	"Data/Defaults.ini"		// these can be overridden
+#define STEPMANIA_INI_PATH	"Data/StepMania.ini"	// overlay on Defaults.ini, contains the user's choices
+#define STATIC_INI_PATH		"Data/Static.ini"		// overlay on the 2 above, can't be overridden
 
 PrefsManager*	PREFSMAN = NULL;	// global and accessable from anywhere in our program
 
@@ -303,23 +304,26 @@ PrefsManager::~PrefsManager()
 
 void PrefsManager::ReadGlobalPrefsFromDisk()
 {
+	ReadPrefsFromFile( DEFAULTS_INI_PATH );
 	ReadPrefsFromFile( STEPMANIA_INI_PATH );
-
-	/* Static preferences always override StepMania.ini. */
-	ReadStaticPrefsFromDisk();
+	ReadPrefsFromFile( STATIC_INI_PATH );
 }
 
-void PrefsManager::ReadStaticPrefsFromDisk()
+void PrefsManager::ResetToFactoryDefaults()
 {
-	/* Load this on top of the regular INI; if it exists, any settings listed
-	 * in it will override user settings. */
-	ReadPrefsFromFile( STATIC_INI_PATH );
+	// clobber the users prefs by initing then applying defaults
+	Init();
+	m_bFirstRun = false;
+	ReadPrefsFromFile( DEFAULTS_INI_PATH );
+	
+	SaveGlobalPrefsToDisk();
 }
 
 void PrefsManager::ReadPrefsFromFile( CString sIni )
 {
 	IniFile ini;
-	ini.ReadFile( sIni );
+	if( !ini.ReadFile(sIni) )
+		return;
 
 	ini.GetValue( "Options", "Windowed",						m_bWindowed );
 	ini.GetValue( "Options", "Interlaced",						m_bInterlaced );
@@ -806,14 +810,6 @@ void PrefsManager::SaveGlobalPrefsToDisk() const
 	ini.WriteFile( STEPMANIA_INI_PATH );
 }
 
-void PrefsManager::ResetToFactoryDefaults()
-{
-	Init();
-	ReadStaticPrefsFromDisk();	
-	SaveGlobalPrefsToDisk();
-	m_bFirstRun = false;
-}
-
 int PrefsManager::GetCoinMode()
 {
 	if( m_bEventMode && m_iCoinMode == COIN_PAY )
diff --git a/stepmania/src/PrefsManager.h b/stepmania/src/PrefsManager.h
index d9fe96c41f..fdf3ec1b81 100644
--- a/stepmania/src/PrefsManager.h
+++ b/stepmania/src/PrefsManager.h
@@ -281,8 +281,6 @@ public:
 	void ReadGlobalPrefsFromDisk();
 	void SaveGlobalPrefsToDisk() const;
 
-	void ReadStaticPrefsFromDisk();
-
 	void ResetToFactoryDefaults();
 
 protected: