diff --git a/icu4c/readme.html b/icu4c/readme.html
index 7417140f1a4..f6bad51b2ff 100644
--- a/icu4c/readme.html
+++ b/icu4c/readme.html
@@ -34,7 +34,7 @@
      <abbr title="International Components for Unicode">ICU</abbr> 3.7
     ReadMe</h1>
 
-    <p>Version: 2006-Oct-20<br />
+    <p>Version: 2007-Mar-19<br />
      Copyright &copy; 1997-2006 International Business Machines Corporation and
     others. All Rights Reserved.</p>
     <!-- Remember that there is a copyright at the end too -->
@@ -1163,10 +1163,10 @@
     when your application is externalized via Job Control Language (JCL).</p>
 
     <p>The OS390BATCH environment variable enables non-UNIX support including the
-    batch environment. When OS390BATCH is set, the libicuuc<i>XX</i>.dll,
-    libicudt<i>XX</i>e.dll, and libicudt<i>XX</i>e_stub.dll binaries are built
-    into data sets (the native file system). Turning on OS390BATCH does not turn
-    off the normal z/OS UNIX build. This means that the z/OS UNIX (HFS) DLLs will
+    batch environment. When OS390BATCH is set, the libicui18n<i>XX</i>.dll,
+    libicuuc<i>XX</i>.dll, and libicudt<i>XX</i>e.dll binaries are built into
+    data sets (the native file system). Turning on OS390BATCH does not turn off
+    the normal z/OS UNIX build. This means that the z/OS UNIX (HFS) DLLs will
     always be created.</p>
 
     <p>Two additional environment variables indicate the names of the z/OS data
@@ -1195,8 +1195,7 @@ LOADEXP=<i>USER</i>.ICU.EXP</samp>
 <pre>
 <samp>IXMI<i>XX</i>IN --&gt; libicui18n<i>XX</i>.dll
 IXMI<i>XX</i>UC --&gt; libicuuc<i>XX</i>.dll
-IXMI<i>XX</i>DA --&gt; libicudt<i>XX</i>e.dll
-IXMI<i>XX</i>D1 --&gt; libicudt<i>XX</i>e_stub.dll <i>(Only when OS390_STUBDATA=1)</i></samp>
+IXMI<i>XX</i>DA --&gt; libicudt<i>XX</i>e.dll</samp>
 </pre>
 
     <p>You should point the LOADMOD environment variable at a partitioned data
@@ -1209,11 +1208,11 @@ Management class. . : <i>**None**</i>
 Storage class . . . : <i>BASE</i>
 Volume serial . . . : <i>TSO007</i>
 Device type . . . . : <i>3390</i>
-Data class. . . . . : LOAD
+Data class. . . . . : <i>LOAD</i>
 Organization  . . . : PO
 Record format . . . : U
 Record length . . . : 0
-Block size  . . . . : 32760
+Block size  . . . . : <i>32760</i>
 1st extent cylinders: 1
 Secondary cylinders : 5
 Data set name type  : LIBRARY</samp>
diff --git a/icu4c/source/config/mh-os390 b/icu4c/source/config/mh-os390
index 12af5701ce6..80c8bd627ff 100644
--- a/icu4c/source/config/mh-os390
+++ b/icu4c/source/config/mh-os390
@@ -1,6 +1,6 @@
 ## -*-makefile-*-
 ## os/390, z/OS specific setup 
-## Copyright (c) 1999-2006, International Business Machines Corporation and
+## Copyright (c) 1999-2007, International Business Machines Corporation and
 ## others. All Rights Reserved.
 
 ###################################################################
@@ -14,12 +14,16 @@
 #                                                                 #
 #   export OS390BATCH=1                                           #
 #                                                                 #
-# To build a version of ICU which uses IEEE Floating point        #
+# To build a version of ICU that does not use IEEE Floating point #
 #                                                                 #
-#   export IEEE390=1                                              #
+#   export IEEE390=0                                              #
 #                                                                 #
-# To build a version of ICU which uses a two common libraries     #
-# where the smaller one is loaded first.                          #
+# To build a version of ICU which uses a two data libraries       #
+# where the smaller one is loaded first, use OS390_STUBDATA.      #
+# USAGE OF THIS OPTION IS DEPRECATED. You should look into using  #
+# Link Pack Area (LPA) or other z/OS options that enable page     #
+# fault based loading of read-only code/data instead of this      #
+# option. This option may be removed in a future version of ICU.  #
 #                                                                 #
 #   export OS390_STUBDATA=1                                       #
 #                                                                 #
@@ -55,8 +59,11 @@ SHAREDLIBCXXFLAGS	= -Wc,expo
 
 # TODO: Consider using  -Wc,roc,ros for making the data and strings readonly
 #       -Wc,"ros" seems to work, but not the "roc"
+# The RENT option makes the program reentrant. This may not really have the same
+#       meaning as normal reentrancy on other platforms. See the z/OS documentation
+#       for details. This is the default for C++, but not C.
 # -+ means accept any file extension as a C++ file. By default only .C is accepted.
-CFLAGS          += -Wc,'langlvl(extended),spill(2000),ros,dll' $(ICU_IEEE)
+CFLAGS          += -Wc,'langlvl(extended),spill(2000),ros,rent,dll' $(ICU_IEEE)
 CXXFLAGS        += -Wc,'langlvl(extended),spill(2000),ros,dll' $(ICU_IEEE) -+
 DEFS            += -D_MSE_PROTOS
 ARFLAGS         = -cr
@@ -66,9 +73,9 @@ ifeq (${OS390_XPLINK}, 1)
 # Note:  The following options require the PTF for PQ69418 on z/OS 1.2
 #        and later.
 # These lines must be the last options specified.
-ICU_XPLINK_C      = -Wc,'xplink(backchain,storeargs)' -Wc,'GOFF,NOCSECT,RENT'
-ICU_XPLINK_CPP    = -Wc,'xplink(backchain,storeargs)' -Wc,'GOFF,NOCSECT,NOTEMPINC'
-ICU_XPLINK_L      = -Wl,dll,xplink -Wl,EDIT=NO
+ICU_XPLINK_C      = -Wc,'xplink(backchain,storeargs)' -Wc,'GOFF,NOCSECT'
+ICU_XPLINK_CXX    = -Wc,'xplink(backchain,storeargs)' -Wc,'GOFF,NOCSECT,NOTEMPINC'
+ICU_XPLINK_L      = -Wl,dll,xplink
 #SH# fi
 endif
 
@@ -85,7 +92,7 @@ GEN_DEPS.cc=	makedep
 # _CXX_STEPS="-1" is a prelink step when compiling C and C++, and
 # it's only needed for long function names
 COMPILE.c       = $(COMPILE_LINK_ENVVAR) $(CXX) $(DEFS) $(CPPFLAGS) $(CFLAGS) $(ICU_XPLINK_C) -c
-COMPILE.cc      = $(COMPILE_LINK_ENVVAR) $(CXX) $(DEFS) $(CPPFLAGS) $(CXXFLAGS) $(ICU_XPLINK_CPP) -c
+COMPILE.cc      = $(COMPILE_LINK_ENVVAR) $(CXX) $(DEFS) $(CPPFLAGS) $(CXXFLAGS) $(ICU_XPLINK_CXX) -c
 
 # Commands to link
 LINK.c=		$(COMPILE_LINK_ENVVAR) $(CC) $(CFLAGS) -Wl,dll $(LDFLAGS) $(ICU_XPLINK_L)