diff -ru baselayout-1.12.5.orig/etc/profile baselayout-1.12.5/etc/profile
--- baselayout-1.12.5.orig/etc/profile	2009-12-09 13:48:07 +0100
+++ baselayout-1.12.5/etc/profile	2009-12-09 13:54:52 +0100
@@ -110,9 +110,34 @@
 		# it in the user's dot-files), but it shouldn't make any 
 		# difference.
 		. "@GENTOO_PORTAGE_EPREFIX@"/etc/bash/bashrc
+	elif [ -n "${_ro_root}" ]; then
+		# We're in a prefix chain, but have no local bash. we rely on bash
+		# beeing there _somewhere_ in the chain, so we do not need to set
+		# PS1 explicitly.
+		if [ -z "${PS1}" ]; then
+			# try harder to find something in the parent prefix of the chain.
+			# dont bother to search multiple chain members up to the top.
+			if [ -f "${_ro_root}/etc/bash/bashrc" ]; then
+				. "${_ro_root}/etc/bash/bashrc"
+			fi
+		fi
 	else
 		PS1='\u@\h \w \$ '
 	fi
+
+	# Set the last dirpart of the current prefix somewhere
+	# in the prompt, so one immediately knows where he/she is.
+	if [ ${_ro_recursion_level} == 0 ]; then
+		# we're in the last prefix of the chain here.
+		_ro_name="@GENTOO_PORTAGE_EPREFIX@"
+		_ro_name="${_ro_name##*/}"
+
+		# use color only if the prompt already contains color escapes
+		case "${PS1}" in
+		*'\[\033['*'m\]'*) 	PS1="\[\033[01;36m\][${_ro_name}]\[\033[00m\] ${PS1}" ;;
+		*) 					PS1="[${_ro_name}] ${PS1}" ;;
+		esac
+	fi
 else
 	# Setup a bland default prompt.  Since this prompt should be useable
 	# on color and non-color terminals, as well as shells that don't
@@ -120,6 +145,10 @@
 	PS1="`whoami`@`uname -n | cut -f1 -d.` \$ "
 fi
 
+# when chaining prefixes, we want the prompt to be passed to the child too,
+# so we need to export it.
+export PS1
+
 for sh in "@GENTOO_PORTAGE_EPREFIX@"/etc/profile.d/*.sh ; do
 	if [ -r "$sh" ] ; then
 		. "$sh"
@@ -146,7 +175,7 @@
 	if [[ ! -x "@GENTOO_PORTAGE_EPREFIX@"/usr/bin/emerge ]]; then
 		export EPREFIX="@GENTOO_PORTAGE_EPREFIX@"
 	fi
-elif [[ "${EPREFIX}" != "@GENTOO_PORTAGE_EPREFIX@" ]]; then
+elif [[ "${EPREFIX}" != "@GENTOO_PORTAGE_EPREFIX@" && ${_ro_recursion_level} == 0 ]]; then
 	echo "WARNING: EPREFIX is set from environment to \"${EPREFIX}\"."
 	echo "         You are entering the prefix \"@GENTOO_PORTAGE_EPREFIX@\"."
 	echo "         Having EPREFIX set this way will probably render this environment unusable."