diff --git a/Makefile b/Makefile
index a981f502..72136dac 100644
--- a/Makefile
+++ b/Makefile
@@ -59,9 +59,10 @@ endif
 	python setup.py install -O1 --skip-build --root $(DESTDIR)
 #	$(MAKE) install -C tests
 	$(MAKE) install -C relaxng
+	mkdir -p $(DESTDIR)/etc/qubes
+	cp etc/storage.conf $(DESTDIR)/etc/qubes/
 ifeq ($(BACKEND_VMM),xen)
 	# Currently supported only on xen
-	mkdir -p $(DESTDIR)/etc/qubes
 	cp etc/qmemman.conf $(DESTDIR)/etc/qubes/
 endif
 	$(MAKE) install -C dispvm
diff --git a/core-modules/000QubesVm.py b/core-modules/000QubesVm.py
index 4fb882d1..2dc336a4 100644
--- a/core-modules/000QubesVm.py
+++ b/core-modules/000QubesVm.py
@@ -23,6 +23,8 @@
 #
 
 import datetime
+import base64
+import hashlib
 import logging
 import lxml.etree
 import os
@@ -34,15 +36,17 @@ import sys
 import time
 import uuid
 import xml.parsers.expat
+import signal
 from qubes import qmemman
 from qubes import qmemman_algo
 import libvirt
-import warnings
 
 from qubes.qubes import dry_run,vmm
 from qubes.qubes import register_qubes_vm_class
 from qubes.qubes import QubesVmCollection,QubesException,QubesHost,QubesVmLabels
 from qubes.qubes import defaults,system_path,vm_files,qubes_max_qid
+from qubes.storage import get_pool
+
 qmemman_present = False
 try:
     from qubes.qmemman_client import QMemmanClient
@@ -105,6 +109,7 @@ class QubesVm(object):
             "name": { "order": 1 },
             "uuid": { "order": 0, "eval": 'uuid.UUID(value) if value else None' },
             "dir_path": { "default": None, "order": 2 },
+            "pool_name": { "default":"default" },
             "conf_file": {
                 "func": lambda value: self.absolute_path(value, self.name +
                                                                  ".conf"),
@@ -145,6 +150,7 @@ class QubesVm(object):
                 "order": 31,
                 "func": lambda value: value if not self.uses_default_kernelopts\
                     else defaults["kernelopts_pcidevs"] if len(self.pcidevs)>0 \
+                    else self.template.kernelopts if self.template
                     else defaults["kernelopts"] },
             "mac": { "attr": "_mac", "default": None },
             "include_in_backups": {
@@ -193,10 +199,10 @@ class QubesVm(object):
             'kernelopts', 'services', 'installed_by_rpm',\
             'uses_default_netvm', 'include_in_backups', 'debug',\
             'qrexec_timeout', 'autostart', 'uses_default_dispvm_netvm',
-            'backup_content', 'backup_size', 'backup_path' ]:
+            'backup_content', 'backup_size', 'backup_path', 'pool_name' ]:
             attrs[prop]['save'] = lambda prop=prop: str(getattr(self, prop))
         # Simple paths
-        for prop in ['conf_file']:
+        for prop in ['conf_file', 'firewall_conf']:
             attrs[prop]['save'] = \
                 lambda prop=prop: self.relative_path(getattr(self, prop))
             attrs[prop]['save_skip'] = \
@@ -334,12 +340,23 @@ class QubesVm(object):
         if len(self.pcidevs) > 0:
             self.services['meminfo-writer'] = False
 
+        if 'xml_element' not in kwargs:
+            # New VM, disable updates check if requested for new VMs
+            if os.path.exists(qubes.qubesutils.UPDATES_DEFAULT_VM_DISABLE_FLAG):
+                self.services['qubes-update-check'] = False
+
         # Initialize VM image storage class
-        self.storage = defaults["storage_class"](self)
+        self.storage = get_pool(self.pool_name, self).getStorage()
+        self.dir_path = self.storage.vmdir
+        self.icon_path = os.path.join(self.storage.vmdir, 'icon.png')
+        self.conf_file = os.path.join(self.storage.vmdir, self.name + '.conf')
+
         if hasattr(self, 'kernels_dir'):
-            self.storage.modules_img = os.path.join(self.kernels_dir,
+            modules_path = os.path.join(self.kernels_dir,
                     "modules.img")
-            self.storage.modules_img_rw = self.kernel is None
+            if os.path.exists(modules_path):
+                self.storage.modules_img = modules_path
+                self.storage.modules_img_rw = self.kernel is None
 
         # Some additional checks for template based VM
         if self.template is not None:
@@ -369,8 +386,13 @@ class QubesVm(object):
     def absolute_path(self, arg, default):
         if arg is not None and os.path.isabs(arg):
             return arg
-        else:
+        elif self.dir_path is not None:
             return os.path.join(self.dir_path, (arg if arg is not None else default))
+        else:
+            # cannot provide any meaningful value without dir_path; this is
+            # only to import some older format of `qubes.xml` (for example
+            # during migration from older release)
+            return None
 
     def _absolute_path_gen(self, default):
         return lambda value: self.absolute_path(value, default)
@@ -502,13 +524,14 @@ class QubesVm(object):
             if not os.path.exists(os.path.join(system_path[
                 'qubes_kernels_base_dir'], new_value)):
                 raise QubesException("Kernel '%s' not installed" % new_value)
-            for f in ('vmlinuz', 'modules.img'):
+            for f in ('vmlinuz', 'initramfs'):
                 if not os.path.exists(os.path.join(
                         system_path['qubes_kernels_base_dir'], new_value, f)):
                     raise QubesException(
                         "Kernel '%s' not properly installed: missing %s "
                         "file" % (new_value, f))
         self._kernel = new_value
+        self.uses_default_kernel = False
 
     @property
     def updateable(self):
@@ -543,9 +566,16 @@ class QubesVm(object):
             return False
         if len(name) > 31:
             return False
+        if name == 'lost+found':
+            # avoid conflict when /var/lib/qubes/appvms is mounted on
+            # separate partition
+            return False
         return re.match(r"^[a-zA-Z][a-zA-Z0-9_.-]*$", name) is not None
 
     def pre_rename(self, new_name):
+        if self.autostart:
+            subprocess.check_call(['sudo', 'systemctl', '-q', 'disable',
+                                   'qubes-vm@{}.service'.format(self.name)])
         # fire hooks
         for hook in self.hooks_pre_rename:
             hook(self, new_name)
@@ -583,11 +613,17 @@ class QubesVm(object):
             self.icon_path = self.icon_path.replace(old_dirpath, new_dirpath)
         if hasattr(self, 'kernels_dir') and self.kernels_dir is not None:
             self.kernels_dir = self.kernels_dir.replace(old_dirpath, new_dirpath)
+        if self.firewall_conf is not None:
+            self.firewall_conf = self.firewall_conf.replace(old_dirpath,
+                                                            new_dirpath)
 
         self._update_libvirt_domain()
         self.post_rename(old_name)
 
     def post_rename(self, old_name):
+        if self.autostart:
+            # force setter to be called again
+            self.autostart = self.autostart
         # fire hooks
         for hook in self.hooks_post_rename:
             hook(self, old_name)
@@ -684,9 +720,11 @@ class QubesVm(object):
         try:
             return self.libvirt_domain.ID()
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return -1
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
 
@@ -696,7 +734,17 @@ class QubesVm(object):
 
     def _update_libvirt_domain(self):
         domain_config = self.create_config_file()
-        self._libvirt_domain = vmm.libvirt_conn.defineXML(domain_config)
+        try:
+            self._libvirt_domain = vmm.libvirt_conn.defineXML(domain_config)
+        except libvirt.libvirtError as e:
+            # shouldn't this be in QubesHVm implementation?
+            if e.get_error_code() == libvirt.VIR_ERR_OS_TYPE and \
+                    e.get_str2() == 'hvm':
+                raise QubesException("HVM domains not supported on this "
+                                     "machine. Check BIOS settings for "
+                                     "VT-x/AMD-V extensions.")
+            else:
+                raise e
         self.uuid = uuid.UUID(bytes=self._libvirt_domain.UUID())
 
     @property
@@ -726,9 +774,14 @@ class QubesVm(object):
                 return 0
             return self.libvirt_domain.info()[1]
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
+                return 0
+                # libxl_domain_info failed - domain no longer exists
+            elif e.get_error_code() == libvirt.VIR_ERR_INTERNAL_ERROR:
                 return 0
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
     def get_cputime(self):
@@ -740,9 +793,14 @@ class QubesVm(object):
                 return 0
             return self.libvirt_domain.info()[4]
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
+                return 0
+                # libxl_domain_info failed - domain no longer exists
+            elif e.get_error_code() == libvirt.VIR_INTERNAL_ERROR:
                 return 0
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
     def get_mem_static_max(self):
@@ -752,7 +810,7 @@ class QubesVm(object):
         try:
             return self.libvirt_domain.maxMemory()
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return 0
             else:
                 raise
@@ -781,9 +839,11 @@ class QubesVm(object):
             else:
                 return 0
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return 0
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
     def get_disk_utilization_root_img(self):
@@ -820,7 +880,7 @@ class QubesVm(object):
             else:
                 return 'Halted'
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return "Halted"
             else:
                 raise
@@ -848,15 +908,19 @@ class QubesVm(object):
         return True
 
     def is_running(self):
+        if vmm.offline_mode:
+            return False
         try:
             if self.libvirt_domain.isActive():
                 return True
             else:
                 return False
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return False
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
     def is_paused(self):
@@ -866,9 +930,11 @@ class QubesVm(object):
             else:
                 return False
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 return False
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
     def get_start_time(self):
@@ -974,8 +1040,9 @@ class QubesVm(object):
                 return None
             if tz_info.st_nlink > 1:
                 p = subprocess.Popen(['find', '/usr/share/zoneinfo',
-                                       '-inum', str(tz_info.st_ino)],
-                                      stdout=subprocess.PIPE)
+                                      '-inum', str(tz_info.st_ino),
+                                      '-print', '-quit'],
+                                     stdout=subprocess.PIPE)
                 tz_path = p.communicate()[0].strip()
                 return tz_path.replace('/usr/share/zoneinfo/', '')
         return None
@@ -1008,6 +1075,10 @@ class QubesVm(object):
         self.qdb.write("/name", self.name)
         self.qdb.write("/qubes-vm-type", self.type)
         self.qdb.write("/qubes-vm-updateable", str(self.updateable))
+        self.qdb.write("/qubes-vm-persistence",
+                       "full" if self.updateable else "rw-only")
+        self.qdb.write("/qubes-base-template",
+                       self.template.name if self.template else '')
 
         if self.is_netvm():
             self.qdb.write("/qubes-netvm-gateway", self.gateway)
@@ -1036,6 +1107,8 @@ class QubesVm(object):
 
         self.qdb.write("/qubes-debug-mode", str(int(self.debug)))
 
+        self.provide_random_seed_to_vm()
+
         # TODO: Currently the whole qmemman is quite Xen-specific, so stay with
         # xenstore for it until decided otherwise
         if qmemman_present:
@@ -1046,6 +1119,14 @@ class QubesVm(object):
         for hook in self.hooks_create_qubesdb_entries:
             hook(self)
 
+    def provide_random_seed_to_vm(self):
+        f = open('/dev/urandom', 'r')
+        s = f.read(64)
+        if len(s) != 64:
+            raise IOError("failed to read seed from /dev/urandom")
+        f.close()
+        self.qdb.write("/qubes-random-seed", base64.b64encode(hashlib.sha512(s).digest()))
+
     def _format_net_dev(self, ip, mac, backend):
         template = "    <interface type='ethernet'>\n" \
                    "      <mac address='{mac}'/>\n" \
@@ -1096,8 +1177,10 @@ class QubesVm(object):
             args['dns2'] = self.secondary_dns
             args['netmask'] = self.netmask
             args['netdev'] = self._format_net_dev(self.ip, self.mac, self.netvm.name)
-            args['disable_network1'] = '';
-            args['disable_network2'] = '';
+            args['network_begin'] = ''
+            args['network_end'] = ''
+            args['no_network_begin'] = '<!--'
+            args['no_network_end'] = '-->'
         else:
             args['ip'] = ''
             args['mac'] = ''
@@ -1106,8 +1189,10 @@ class QubesVm(object):
             args['dns2'] = ''
             args['netmask'] = ''
             args['netdev'] = ''
-            args['disable_network1'] = '<!--';
-            args['disable_network2'] = '-->';
+            args['network_begin'] = '<!--'
+            args['network_end'] = '-->'
+            args['no_network_begin'] = ''
+            args['no_network_end'] = ''
         args.update(self.storage.get_config_params())
         if hasattr(self, 'kernelopts'):
             args['kernelopts'] = self.kernelopts
@@ -1192,16 +1277,20 @@ class QubesVm(object):
             shutil.copy(self.label.icon_path, self.icon_path)
 
         # Make sure that we have UUID allocated
-        self._update_libvirt_domain()
+        if not vmm.offline_mode:
+            self._update_libvirt_domain()
+        else:
+            self.uuid = uuid.uuid4()
 
         # fire hooks
         for hook in self.hooks_create_on_disk:
             hook(self, verbose, source_template=source_template)
 
     def get_clone_attrs(self):
-        attrs = ['kernel', 'uses_default_kernel', 'netvm', 'uses_default_netvm', \
-            'memory', 'maxmem', 'kernelopts', 'uses_default_kernelopts', 'services', 'vcpus', \
-            '_mac', 'pcidevs', 'include_in_backups', '_label', 'default_user']
+        attrs = ['kernel', 'uses_default_kernel', 'netvm', 'uses_default_netvm',
+                 'memory', 'maxmem', 'kernelopts', 'uses_default_kernelopts',
+                 'services', 'vcpus', '_mac', 'pcidevs', 'include_in_backups',
+                 '_label', 'default_user', 'qrexec_timeout']
 
         # fire hooks
         for hook in self.hooks_get_clone_attrs:
@@ -1246,6 +1335,9 @@ class QubesVm(object):
                         print >> sys.stderr, "--> Copying icon: {0} -> {1}".format(src_vm.icon_path, self.icon_path)
                     shutil.copy(src_vm.icon_path, self.icon_path)
 
+        if src_vm.has_firewall():
+            self.write_firewall_conf(src_vm.get_firewall_conf())
+
         # Make sure that we have UUID allocated
         self._update_libvirt_domain()
 
@@ -1287,10 +1379,12 @@ class QubesVm(object):
         try:
             self.libvirt_domain.undefine()
         except libvirt.libvirtError as e:
-            if e.err[0] == libvirt.VIR_ERR_NO_DOMAIN:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                 # already undefined
                 pass
             else:
+                print >>sys.stderr, "libvirt error code: {!r}".format(
+                    e.get_error_code())
                 raise
 
         self.storage.remove_from_disk()
@@ -1527,7 +1621,7 @@ class QubesVm(object):
 
         call_kwargs = {}
         if ignore_stderr or not passio:
-            null = open("/dev/null", "rw")
+            null = open("/dev/null", "w+")
             call_kwargs['stderr'] = null
         if not passio:
             call_kwargs['stdin'] = null
@@ -1552,16 +1646,22 @@ class QubesVm(object):
         return retcode
 
     def run_service(self, service, source="dom0", user=None,
-                    passio_popen =  False, input=None):
-        if input and passio_popen:
-            raise ValueError("'input' and 'passio_popen' cannot be used "
-                             "together")
-        if input:
+                    passio_popen=False, input=None, localcmd=None, gui=False,
+                    wait=True):
+        if bool(input) + bool(passio_popen) + bool(localcmd) > 1:
+            raise ValueError("'input', 'passio_popen', 'localcmd' cannot be "
+                             "used together")
+        if localcmd:
             return self.run("QUBESRPC %s %s" % (service, source),
-                        localcmd="echo %s" % input, user=user, wait=True)
+                            localcmd=localcmd, user=user, wait=wait, gui=gui)
+        elif input:
+            return self.run("QUBESRPC %s %s" % (service, source),
+                            localcmd="echo %s" % input, user=user, wait=wait,
+                            gui=gui)
         else:
             return self.run("QUBESRPC %s %s" % (service, source),
-                        passio_popen=passio_popen, user=user, wait=True)
+                            passio_popen=passio_popen, user=user, wait=wait,
+                            gui=gui)
 
     def attach_network(self, verbose = False, wait = True, netvm = None):
         self.log.debug('attach_network(netvm={!r})'.format(netvm))
@@ -1646,7 +1746,10 @@ class QubesVm(object):
             if verbose:
                 print >> sys.stderr, "--> Sending monitor layout..."
             monitor_layout = qubes.monitorlayoutnotify.get_monitor_layout()
-            qubes.monitorlayoutnotify.notify_vm(self, monitor_layout)
+            # Notify VM only if we've got a monitor_layout which is not empty
+            # or else we break proper VM resolution set by gui-agent
+            if len(monitor_layout) > 0:
+                qubes.monitorlayoutnotify.notify_vm(self, monitor_layout)
         except ImportError as e:
             print >>sys.stderr, "ERROR: %s" % e
 
@@ -1671,14 +1774,56 @@ class QubesVm(object):
 
     def start_qubesdb(self):
         self.log.debug('start_qubesdb()')
+        pidfile = '/var/run/qubes/qubesdb.{}.pid'.format(self.name)
+        try:
+            if os.path.exists(pidfile):
+                old_qubesdb_pid = open(pidfile, 'r').read()
+                try:
+                    os.kill(int(old_qubesdb_pid), signal.SIGTERM)
+                except OSError:
+                    raise QubesException(
+                        "Failed to kill old QubesDB instance (PID {}). "
+                        "Terminate it manually and retry. "
+                        "If that isn't QubesDB process, "
+                        "remove the pidfile: {}".format(old_qubesdb_pid,
+                                                        pidfile))
+                timeout = 25
+                while os.path.exists(pidfile) and timeout:
+                    time.sleep(0.2)
+                    timeout -= 1
+        except IOError:  # ENOENT (pidfile)
+            pass
+
+        # force connection to a new daemon
+        self._qdb_connection = None
+
         retcode = subprocess.call ([
             system_path["qubesdb_daemon_path"],
             str(self.xid),
             self.name])
         if retcode != 0:
-            self.force_shutdown()
             raise OSError("ERROR: Cannot execute qubesdb-daemon!")
 
+    def request_memory(self, mem_required = None):
+        # Overhead of per-VM/per-vcpu Xen structures, taken from OpenStack nova/virt/xenapi/driver.py
+        # see https://wiki.openstack.org/wiki/XenServer/Overhead
+        # add an extra MB because Nova rounds up to MBs
+        MEM_OVERHEAD_BASE = (3 + 1) * 1024 * 1024
+        MEM_OVERHEAD_PER_VCPU = 3 * 1024 * 1024 / 2
+        if mem_required is None:
+            mem_required = int(self.memory) * 1024 * 1024
+        if qmemman_present:
+            qmemman_client = QMemmanClient()
+            try:
+                mem_required_with_overhead = mem_required + MEM_OVERHEAD_BASE + self.vcpus * MEM_OVERHEAD_PER_VCPU
+                got_memory = qmemman_client.request_memory(mem_required_with_overhead)
+            except IOError as e:
+                raise IOError("ERROR: Failed to connect to qmemman: %s" % str(e))
+            if not got_memory:
+                qmemman_client.close()
+                raise MemoryError ("ERROR: insufficient memory to start VM '%s'" % self.name)
+            return qmemman_client
+
     def start(self, verbose = False, preparing_dvm = False, start_guid = True,
             notify_function = None, mem_required = None):
         self.log.debug('start('
@@ -1706,24 +1851,14 @@ class QubesVm(object):
 
         self._update_libvirt_domain()
 
-        if mem_required is None:
-            mem_required = int(self.memory) * 1024 * 1024
-        if qmemman_present:
-            qmemman_client = QMemmanClient()
-            try:
-                got_memory = qmemman_client.request_memory(mem_required)
-            except IOError as e:
-                raise IOError("ERROR: Failed to connect to qmemman: %s" % str(e))
-            if not got_memory:
-                qmemman_client.close()
-                raise MemoryError ("ERROR: insufficient memory to start VM '%s'" % self.name)
+        qmemman_client = self.request_memory(mem_required)
 
         # Bind pci devices to pciback driver
         for pci in self.pcidevs:
             try:
                 nd = vmm.libvirt_conn.nodeDeviceLookupByName('pci_0000_' + pci.replace(':','_').replace('.','_'))
             except libvirt.libvirtError as e:
-                if e.err[0] == libvirt.VIR_ERR_NO_NODE_DEVICE:
+                if e.get_error_code() == libvirt.VIR_ERR_NO_NODE_DEVICE:
                     raise QubesException(
                         "PCI device {} does not exist (domain {})".
                         format(pci, self.name))
@@ -1732,39 +1867,43 @@ class QubesVm(object):
             try:
                 nd.dettach()
             except libvirt.libvirtError as e:
-                if e.err[0] == libvirt.VIR_ERR_INTERNAL_ERROR:
-                    # allready detached
+                if e.get_error_code() == libvirt.VIR_ERR_INTERNAL_ERROR:
+                    # already detached
                     pass
                 else:
                     raise
 
         self.libvirt_domain.createWithFlags(libvirt.VIR_DOMAIN_START_PAUSED)
 
-        if verbose:
-            print >> sys.stderr, "--> Starting Qubes DB..."
-        self.start_qubesdb()
+        try:
+            if verbose:
+                print >> sys.stderr, "--> Starting Qubes DB..."
+            self.start_qubesdb()
 
-        xid = self.xid
-        self.log.debug('xid={}'.format(xid))
+            xid = self.xid
+            self.log.debug('xid={}'.format(xid))
 
-        if preparing_dvm:
-            self.services['qubes-dvm'] = True
-        if verbose:
-            print >> sys.stderr, "--> Setting Qubes DB info for the VM..."
-        self.create_qubesdb_entries()
+            if preparing_dvm:
+                self.services['qubes-dvm'] = True
+            if verbose:
+                print >> sys.stderr, "--> Setting Qubes DB info for the VM..."
+            self.create_qubesdb_entries()
 
-        if verbose:
-            print >> sys.stderr, "--> Updating firewall rules..."
-        netvm = self.netvm
-        while netvm is not None:
-            if netvm.is_proxyvm() and netvm.is_running():
-                netvm.write_iptables_qubesdb_entry()
-            netvm = netvm.netvm
+            if verbose:
+                print >> sys.stderr, "--> Updating firewall rules..."
+            netvm = self.netvm
+            while netvm is not None:
+                if netvm.is_proxyvm() and netvm.is_running():
+                    netvm.write_iptables_qubesdb_entry()
+                netvm = netvm.netvm
 
-        # fire hooks
-        for hook in self.hooks_start:
-            hook(self, verbose = verbose, preparing_dvm =  preparing_dvm,
-                    start_guid = start_guid, notify_function = notify_function)
+            # fire hooks
+            for hook in self.hooks_start:
+                hook(self, verbose = verbose, preparing_dvm =  preparing_dvm,
+                     start_guid = start_guid, notify_function = notify_function)
+        except:
+            self.force_shutdown()
+            raise
 
         if verbose:
             print >> sys.stderr, "--> Starting the VM..."
@@ -1828,6 +1967,15 @@ class QubesVm(object):
         if not self.is_running():
             raise QubesException ("VM already stopped!")
 
+        # try to gracefully detach PCI devices before shutdown, to mitigate
+        # timeouts on forcible detach at domain destroy; if that fails, too bad
+        try:
+            for pcidev in self.pcidevs:
+                self.libvirt_domain.detachDevice(self._format_pci_dev(pcidev))
+        except libvirt.libvirtError as e:
+            print >>sys.stderr, "WARNING: {}, continuing VM shutdown " \
+                                "anyway".format(str(e))
+
         self.libvirt_domain.shutdown()
 
     def force_shutdown(self, xid = None):
diff --git a/core-modules/001QubesResizableVm.py b/core-modules/001QubesResizableVm.py
new file mode 100644
index 00000000..f50ead70
--- /dev/null
+++ b/core-modules/001QubesResizableVm.py
@@ -0,0 +1,77 @@
+#!/usr/bin/python2
+# -*- encoding: utf8 -*-
+#
+# The Qubes OS Project, http://www.qubes-os.org
+#
+# This program is free software; you can redistribute it and/or
+# modify it under the terms of the GNU General Public License
+# as published by the Free Software Foundation; either version 2
+# of the License, or (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program; if not, write to the Free Software
+# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
+#
+#
+
+from __future__ import (
+    absolute_import,
+    division,
+    print_function,
+    unicode_literals,
+)
+
+from qubes.qubes import (
+    register_qubes_vm_class,
+    QubesException,
+    QubesVm,
+)
+from time import sleep
+
+
+class QubesResizableVm(QubesVm):
+
+    def resize_root_img(self, size, allow_start=False):
+        if self.template:
+            raise QubesException("Cannot resize root.img of template-based VM"
+                                 ". Resize the root.img of the template "
+                                 "instead.")
+
+        if self.is_running():
+            raise QubesException("Cannot resize root.img of running VM")
+
+        if size < self.get_root_img_sz():
+            raise QubesException(
+                "For your own safety shringing of root.img is disabled. If "
+                "you really know what you are doing, use 'truncate' manually.")
+
+        f_root = open(self.root_img, "a+b")
+        f_root.truncate(size)
+        f_root.close()
+
+
+class QubesResizableVmWithResize2fs(QubesResizableVm):
+
+    def resize_root_img(self, size, allow_start=False):
+        super(QubesResizableVmWithResize2fs, self).\
+            resize_root_img(size, allow_start=allow_start)
+        if not allow_start:
+            raise QubesException("VM start required to complete the "
+                                 "operation, but not allowed. Either run the "
+                                 "operation again allowing VM start this "
+                                 "time, or run resize2fs in the VM manually.")
+        self.start(start_guid=False)
+        self.run("resize2fs /dev/mapper/dmroot", user="root", wait=True,
+                 gui=False)
+        self.shutdown()
+        while self.is_running():
+            sleep(1)
+
+
+register_qubes_vm_class(QubesResizableVm)
+register_qubes_vm_class(QubesResizableVmWithResize2fs)
diff --git a/core-modules/006QubesProxyVm.py b/core-modules/006QubesProxyVm.py
index 88a4781b..b5ae20f8 100644
--- a/core-modules/006QubesProxyVm.py
+++ b/core-modules/006QubesProxyVm.py
@@ -58,6 +58,8 @@ class QubesProxyVm(QubesNetVm):
     def _set_netvm(self, new_netvm):
         old_netvm = self.netvm
         super(QubesProxyVm, self)._set_netvm(new_netvm)
+        if vmm.offline_mode:
+            return
         if self.netvm is not None:
             self.netvm.add_external_ip_permission(self.get_xid())
         self.write_netvm_domid_entry()
diff --git a/core-modules/01QubesAppVm.py b/core-modules/01QubesAppVm.py
index dd119a0e..9a46fb47 100644
--- a/core-modules/01QubesAppVm.py
+++ b/core-modules/01QubesAppVm.py
@@ -24,9 +24,15 @@
 
 import os.path
 
-from qubes.qubes import QubesVm,QubesVmLabel,register_qubes_vm_class,system_path
+from qubes.qubes import (
+    register_qubes_vm_class,
+    system_path,
+    QubesResizableVmWithResize2fs,
+    QubesVmLabel,
+)
 
-class QubesAppVm(QubesVm):
+
+class QubesAppVm(QubesResizableVmWithResize2fs):
     """
     A class that represents an AppVM. A child of QubesVm.
     """
diff --git a/core-modules/01QubesDisposableVm.py b/core-modules/01QubesDisposableVm.py
index 6dcbe136..4e3ebdd8 100644
--- a/core-modules/01QubesDisposableVm.py
+++ b/core-modules/01QubesDisposableVm.py
@@ -97,6 +97,11 @@ class QubesDisposableVm(QubesVm):
             disp_template = kwargs['disp_template']
             kwargs['template'] = disp_template.template
             kwargs['dir_path'] = disp_template.dir_path
+            kwargs['kernel'] = disp_template.kernel
+            kwargs['uses_default_kernel'] = disp_template.uses_default_kernel
+            kwargs['kernelopts'] = disp_template.kernelopts
+            kwargs['uses_default_kernelopts'] = \
+                disp_template.uses_default_kernelopts
         super(QubesDisposableVm, self).__init__(**kwargs)
 
         assert self.template is not None, "Missing template for DisposableVM!"
@@ -151,6 +156,7 @@ class QubesDisposableVm(QubesVm):
     def create_qubesdb_entries(self):
         super(QubesDisposableVm, self).create_qubesdb_entries()
 
+        self.qdb.write("/qubes-vm-persistence", "none")
         self.qdb.write('/qubes-restore-complete', '1')
 
     def start(self, verbose = False, **kwargs):
@@ -162,8 +168,13 @@ class QubesDisposableVm(QubesVm):
         if self.get_power_state() != "Halted":
             raise QubesException ("VM is already running!")
 
-        # skip netvm state checking - calling VM have the same netvm, so it
-        # must be already running
+        if self.netvm is not None:
+            if self.netvm.qid != 0:
+                if not self.netvm.is_running():
+                    if verbose:
+                        print >> sys.stderr, "--> Starting NetVM {0}...".\
+                            format(self.netvm.name)
+                    self.netvm.start(verbose=verbose, **kwargs)
 
         if verbose:
             print >> sys.stderr, "--> Loading the VM (type = {0})...".format(self.type)
@@ -172,17 +183,7 @@ class QubesDisposableVm(QubesVm):
         # refresh config file
         domain_config = self.create_config_file()
 
-        if qmemman_present:
-            mem_required = int(self.memory) * 1024 * 1024
-            print >>sys.stderr, "time=%s, getting %d memory" % (str(time.time()), mem_required)
-            qmemman_client = QMemmanClient()
-            try:
-                got_memory = qmemman_client.request_memory(mem_required)
-            except IOError as e:
-                raise IOError("ERROR: Failed to connect to qmemman: %s" % str(e))
-            if not got_memory:
-                qmemman_client.close()
-                raise MemoryError ("ERROR: insufficient memory to start VM '%s'" % self.name)
+        qmemman_client = self.request_memory()
 
         # dispvm cannot have PCI devices
         assert (len(self.pcidevs) == 0), "DispVM cannot have PCI devices"
@@ -236,5 +237,9 @@ class QubesDisposableVm(QubesVm):
 
         return self.xid
 
+    def remove_from_disk(self):
+        # nothing to remove
+        pass
+
 # register classes
 register_qubes_vm_class(QubesDisposableVm)
diff --git a/core-modules/01QubesHVm.py b/core-modules/01QubesHVm.py
index 08fd0118..2a6e9f04 100644
--- a/core-modules/01QubesHVm.py
+++ b/core-modules/01QubesHVm.py
@@ -26,16 +26,20 @@ import os
 import os.path
 import signal
 import subprocess
-import stat
 import sys
-import re
 import shutil
-import stat
 from xml.etree import ElementTree
 
-from qubes.qubes import QubesVm,register_qubes_vm_class,vmm,dry_run
-from qubes.qubes import system_path,defaults
-from qubes.qubes import QubesException
+from qubes.qubes import (
+    dry_run,
+    defaults,
+    register_qubes_vm_class,
+    system_path,
+    vmm,
+    QubesException,
+    QubesResizableVm,
+)
+
 
 system_path["config_template_hvm"] = '/usr/share/qubes/vm-template-hvm.xml'
 
@@ -44,7 +48,7 @@ defaults["hvm_private_img_size"] = 2*1024*1024*1024
 defaults["hvm_memory"] = 512
 
 
-class QubesHVm(QubesVm):
+class QubesHVm(QubesResizableVm):
     """
     A class that represents an HVM. A child of QubesVm.
     """
@@ -96,8 +100,6 @@ class QubesHVm(QubesVm):
             (not 'xml_element' in kwargs or kwargs['xml_element'].get('guiagent_installed') is None):
             self.services['meminfo-writer'] = False
 
-        self.storage.volatile_img = None
-
     @property
     def type(self):
         return "HVM"
@@ -233,35 +235,7 @@ class QubesHVm(QubesVm):
         if self.is_running():
             raise NotImplementedError("Online resize of HVM's private.img not implemented, shutdown the VM first")
 
-        f_private = open (self.private_img, "a+b")
-        f_private.truncate (size)
-        f_private.close ()
-
-    def resize_root_img(self, size):
-        if self.template:
-            raise QubesException("Cannot resize root.img of template-based VM"
-                                 ". Resize the root.img of the template "
-                                 "instead.")
-
-        if self.is_running():
-            raise QubesException("Cannot resize root.img of running HVM")
-
-        if size < self.get_root_img_sz():
-            raise QubesException(
-                "For your own safety shringing of root.img is disabled. If "
-                "you really know what you are doing, use 'truncate' manually.")
-
-        f_root = open (self.root_img, "a+b")
-        f_root.truncate (size)
-        f_root.close ()
-
-    def get_rootdev(self, source_template=None):
-        if self.template:
-            return "'script:snapshot:{template_root}:{volatile},xvda,w',".format(
-                    template_root=self.template.root_img,
-                    volatile=self.volatile_img)
-        else:
-            return "'script:file:{root_img},xvda,w',".format(root_img=self.root_img)
+        self.storage.resize_private_img(size)
 
     def get_config_params(self):
 
@@ -272,8 +246,8 @@ class QubesHVm(QubesVm):
         params['volatiledev'] = ''
 
         if self.timezone.lower() == 'localtime':
-             params['time_basis'] = 'localtime'
-             params['timeoffset'] = '0'
+            params['time_basis'] = 'localtime'
+            params['timeoffset'] = '0'
         elif self.timezone.isdigit():
             params['time_basis'] = 'UTC'
             params['timeoffset'] = self.timezone
@@ -295,34 +269,6 @@ class QubesHVm(QubesVm):
 
         return True
 
-    def reset_volatile_storage(self, **kwargs):
-        assert not self.is_running(), "Attempt to clean volatile image of running VM!"
-
-        source_template = kwargs.get("source_template", self.template)
-
-        if source_template is None:
-            # Nothing to do on non-template based VM
-            return
-
-        if os.path.exists (self.volatile_img):
-            if self.debug:
-                if os.path.getmtime(self.template.root_img) > os.path.getmtime(self.volatile_img):
-                    if kwargs.get("verbose", False):
-                        print >>sys.stderr, "--> WARNING: template have changed, resetting root.img"
-                else:
-                    if kwargs.get("verbose", False):
-                        print >>sys.stderr, "--> Debug mode: not resetting root.img"
-                        print >>sys.stderr, "--> Debug mode: if you want to force root.img reset, either update template VM, or remove volatile.img file"
-                    return
-            os.remove (self.volatile_img)
-
-        f_volatile = open (self.volatile_img, "w")
-        f_root = open (self.template.root_img, "r")
-        f_root.seek(0, os.SEEK_END)
-        f_volatile.truncate (f_root.tell()) # make empty sparse file of the same size as root.img
-        f_volatile.close ()
-        f_root.close()
-
     @property
     def vif(self):
         if self.xid < 0:
@@ -367,12 +313,16 @@ class QubesHVm(QubesVm):
             return -1
 
     def start(self, *args, **kwargs):
+        # make it available to storage.prepare_for_vm_startup, which is
+        # called before actually building VM libvirt configuration
+        self.storage.drive = self.drive
+
         if self.template and self.template.is_running():
             raise QubesException("Cannot start the HVM while its template is running")
         try:
             if 'mem_required' not in kwargs:
-                # Reserve 32MB for stubdomain
-                kwargs['mem_required'] = (self.memory + 32) * 1024 * 1024
+                # Reserve 44MB for stubdomain
+                kwargs['mem_required'] = (self.memory + 44) * 1024 * 1024
             return super(QubesHVm, self).start(*args, **kwargs)
         except QubesException as e:
             capabilities = vmm.libvirt_conn.getCapabilities()
@@ -400,25 +350,28 @@ class QubesHVm(QubesVm):
         if (retcode != 0) :
             raise QubesException("Cannot start qubes-guid!")
 
-    def start_guid(self, verbose = True, notify_function = None,
-            before_qrexec=False, **kwargs):
-        # If user force the guiagent, start_guid will mimic a standard QubesVM
-        if not before_qrexec and self.guiagent_installed:
-            kwargs['extra_guid_args'] = kwargs.get('extra_guid_args', []) + \
-                                        ['-Q']
-            super(QubesHVm, self).start_guid(verbose, notify_function, **kwargs)
-            stubdom_guid_pidfile = '/var/run/qubes/guid-running.%d' % self.stubdom_xid
-            if os.path.exists(stubdom_guid_pidfile) and not self.debug:
-                try:
-                    stubdom_guid_pid = int(open(stubdom_guid_pidfile, 'r').read())
-                    os.kill(stubdom_guid_pid, signal.SIGTERM)
-                except Exception as ex:
-                    print >> sys.stderr, "WARNING: Failed to kill stubdom gui daemon: %s" % str(ex)
-        elif before_qrexec and (not self.guiagent_installed or self.debug):
+    def start_guid(self, verbose=True, notify_function=None,
+                   before_qrexec=False, **kwargs):
+        if not before_qrexec:
+            return
+
+        if not self.guiagent_installed or self.debug:
             if verbose:
                 print >> sys.stderr, "--> Starting Qubes GUId (full screen)..."
             self.start_stubdom_guid(verbose=verbose)
 
+        kwargs['extra_guid_args'] = kwargs.get('extra_guid_args', []) + \
+            ['-Q', '-n']
+
+        stubdom_guid_pidfile = \
+            '/var/run/qubes/guid-running.%d' % self.stubdom_xid
+        if not self.debug and os.path.exists(stubdom_guid_pidfile):
+            # Terminate stubdom guid once "real" gui agent connects
+            stubdom_guid_pid = int(open(stubdom_guid_pidfile, 'r').read())
+            kwargs['extra_guid_args'] += ['-K', str(stubdom_guid_pid)]
+
+        super(QubesHVm, self).start_guid(verbose, notify_function, **kwargs)
+
     def start_qrexec_daemon(self, **kwargs):
         if not self.qrexec_installed:
             if kwargs.get('verbose', False):
@@ -463,7 +416,6 @@ class QubesHVm(QubesVm):
                         guid_pid = open(guid_pidfile).read().strip()
                         os.kill(int(guid_pid), 15)
 
-
     def suspend(self):
         if dry_run:
             return
diff --git a/core-modules/02QubesTemplateHVm.py b/core-modules/02QubesTemplateHVm.py
index eb5b309e..6452a8eb 100644
--- a/core-modules/02QubesTemplateHVm.py
+++ b/core-modules/02QubesTemplateHVm.py
@@ -29,7 +29,7 @@ import stat
 import sys
 import re
 
-from qubes.qubes import QubesHVm,register_qubes_vm_class,dry_run
+from qubes.qubes import QubesHVm,register_qubes_vm_class,dry_run,vmm
 from qubes.qubes import QubesException,QubesVmCollection
 from qubes.qubes import system_path,defaults
 
@@ -70,6 +70,7 @@ class QubesTemplateHVm(QubesHVm):
     def is_appvm(self):
         return False
 
+    @property
     def rootcow_img(self):
         return self.storage.rootcow_img
 
@@ -95,7 +96,15 @@ class QubesTemplateHVm(QubesHVm):
     def commit_changes (self, verbose = False):
         self.log.debug('commit_changes()')
 
-        # nothing to do as long as root-cow.img is unused
-        pass
+        if not vmm.offline_mode:
+            assert not self.is_running(), "Attempt to commit changes on running Template VM!"
+
+        if verbose:
+            print >> sys.stderr, "--> Commiting template updates... COW: {0}...".format (self.rootcow_img)
+
+        if dry_run:
+            return
+
+        self.storage.commit_template_changes()
 
 register_qubes_vm_class(QubesTemplateHVm)
diff --git a/core/backup.py b/core/backup.py
index 92280a7c..7ba8808f 100644
--- a/core/backup.py
+++ b/core/backup.py
@@ -400,6 +400,10 @@ class SendWorker(Process):
                                           stdin=subprocess.PIPE,
                                           stdout=self.backup_stdout)
             if final_proc.wait() >= 2:
+                if self.queue.full():
+                    # if queue is already full, remove some entry to wake up
+                    # main thread, so it will be able to notice error
+                    self.queue.get()
                 # handle only exit code 2 (tar fatal error) or
                 # greater (call failed?)
                 raise QubesException(
@@ -448,6 +452,17 @@ def backup_do(base_backup_dir, files_to_backup, passphrase,
               crypto_algorithm=DEFAULT_CRYPTO_ALGORITHM):
     global running_backup_operation
 
+    def queue_put_with_check(proc, vmproc, queue, element):
+        if queue.full():
+            if not proc.is_alive():
+                if vmproc:
+                    message = ("Failed to write the backup, VM output:\n" +
+                               vmproc.stderr.read())
+                else:
+                    message = "Failed to write the backup. Out of disk space?"
+                raise QubesException(message)
+        queue.put(element)
+
     total_backup_sz = 0
     passphrase = passphrase.encode('utf-8')
     for f in files_to_backup:
@@ -552,14 +567,16 @@ def backup_do(base_backup_dir, files_to_backup, passphrase,
         # be verified before untaring this.
         # Prefix the path in archive with filename["subdir"] to have it
         # verified during untar
-        tar_cmdline = ["tar", "-Pc", '--sparse',
+        tar_cmdline = (["tar", "-Pc", '--sparse',
                        "-f", backup_pipe,
-                       '-C', os.path.dirname(filename["path"]),
-                       '--xform', 's:^%s:%s\\0:' % (
+                       '-C', os.path.dirname(filename["path"])] +
+                       (['--dereference'] if filename["subdir"] != "dom0-home/"
+                       else []) +
+                       ['--xform', 's:^%s:%s\\0:' % (
                            os.path.basename(filename["path"]),
                            filename["subdir"]),
                        os.path.basename(filename["path"])
-                       ]
+                       ])
         if compressed:
             tar_cmdline.insert(-1,
                                "--use-compress-program=%s" % compression_filter)
@@ -649,7 +666,9 @@ def backup_do(base_backup_dir, files_to_backup, passphrase,
                                          run_error)
 
             # Send the chunk to the backup target
-            to_send.put(os.path.relpath(chunkfile, backup_tmpdir))
+            queue_put_with_check(
+                send_proc, vmproc, to_send,
+                os.path.relpath(chunkfile, backup_tmpdir))
 
             # Close HMAC
             hmac.stdin.close()
@@ -667,7 +686,9 @@ def backup_do(base_backup_dir, files_to_backup, passphrase,
             hmac_file.close()
 
             # Send the HMAC to the backup target
-            to_send.put(os.path.relpath(chunkfile, backup_tmpdir) + ".hmac")
+            queue_put_with_check(
+                send_proc, vmproc, to_send,
+                os.path.relpath(chunkfile, backup_tmpdir) + ".hmac")
 
             if tar_sparse.poll() is None or run_error == "size_limit":
                 run_error = "paused"
@@ -679,7 +700,7 @@ def backup_do(base_backup_dir, files_to_backup, passphrase,
                         .poll()
         pipe.close()
 
-    to_send.put("FINISHED")
+    queue_put_with_check(send_proc, vmproc, to_send, "FINISHED")
     send_proc.join()
     shutil.rmtree(backup_tmpdir)
 
@@ -1552,6 +1573,8 @@ def backup_restore_set_defaults(options):
         options['ignore-username-mismatch'] = False
     if 'verify-only' not in options:
         options['verify-only'] = False
+    if 'rename-conflicting' not in options:
+        options['rename-conflicting'] = False
 
     return options
 
@@ -1619,6 +1642,22 @@ def backup_restore_header(source, passphrase,
     return (restore_tmpdir, os.path.join(restore_tmpdir, "qubes.xml"),
             header_data)
 
+def generate_new_name_for_conflicting_vm(orig_name, host_collection,
+                                         restore_info):
+    number = 1
+    if len(orig_name) > 29:
+        orig_name = orig_name[0:29]
+    new_name = orig_name
+    while (new_name in restore_info.keys() or
+           new_name in map(lambda x: x.get('rename_to', None),
+                           restore_info.values()) or
+           host_collection.get_vm_by_name(new_name)):
+        new_name = str('{}{}'.format(orig_name, number))
+        number += 1
+        if number == 100:
+            # give up
+            return None
+    return new_name
 
 def restore_info_verify(restore_info, host_collection):
     options = restore_info['$OPTIONS$']
@@ -1636,7 +1675,16 @@ def restore_info_verify(restore_info, host_collection):
         vm_info.pop('already-exists', None)
         if not options['verify-only'] and \
                 host_collection.get_vm_by_name(vm) is not None:
-            vm_info['already-exists'] = True
+            if options['rename-conflicting']:
+                new_name = generate_new_name_for_conflicting_vm(
+                    vm, host_collection, restore_info
+                )
+                if new_name is not None:
+                    vm_info['rename-to'] = new_name
+                else:
+                    vm_info['already-exists'] = True
+            else:
+                vm_info['already-exists'] = True
 
         # check template
         vm_info.pop('missing-template', None)
@@ -1683,6 +1731,22 @@ def restore_info_verify(restore_info, host_collection):
                                                   'already-exists',
                                                   'excluded']])
 
+    # update references to renamed VMs:
+    for vm in restore_info.keys():
+        if vm in ['$OPTIONS$', 'dom0']:
+            continue
+        vm_info = restore_info[vm]
+        template_name = vm_info['template']
+        if (template_name in restore_info and
+                restore_info[template_name]['good-to-go'] and
+                'rename-to' in restore_info[template_name]):
+            vm_info['template'] = restore_info[template_name]['rename-to']
+        netvm_name = vm_info['netvm']
+        if (netvm_name in restore_info and
+                restore_info[netvm_name]['good-to-go'] and
+                'rename-to' in restore_info[netvm_name]):
+            vm_info['netvm'] = restore_info[netvm_name]['rename-to']
+
     return restore_info
 
 
@@ -1706,6 +1770,10 @@ def backup_restore_prepare(backup_location, passphrase, options=None,
         if check_vm.qid == 0:
             return os.path.exists(os.path.join(backup_dir, 'dom0-home'))
 
+        # DisposableVM
+        if check_vm.dir_path is None:
+            return False
+
         backup_vm_dir_path = check_vm.dir_path.replace(
             system_path["qubes_base_dir"], backup_dir)
 
@@ -1951,8 +2019,11 @@ def backup_restore_print_summary(restore_info, print_callback=print_stdout):
             s += " <-- No matching template on the host or in the backup found!"
         elif 'missing-netvm' in vm_info:
             s += " <-- No matching netvm on the host or in the backup found!"
-        elif 'orig-template' in vm_info:
-            s += " <-- Original template was '%s'" % (vm_info['orig-template'])
+        else:
+            if 'orig-template' in vm_info:
+                s += " <-- Original template was '%s'" % (vm_info['orig-template'])
+            if 'rename-to' in vm_info:
+                s += " <-- Will be renamed to '%s'" % vm_info['rename-to']
 
         print_callback(s)
 
@@ -1987,7 +2058,7 @@ def backup_restore_do(restore_info,
                                          backup_dir)
 
         # We prefer to use Linux's cp, because it nicely handles sparse files
-        cp_retcode = subprocess.call(["cp", "-rp", backup_src_dir, dst_dir])
+        cp_retcode = subprocess.call(["cp", "-rp", "--reflink=auto", backup_src_dir, dst_dir])
         if cp_retcode != 0:
             raise QubesException(
                 "*** Error while copying file {0} to {1}".format(backup_src_dir,
@@ -2106,13 +2177,29 @@ def backup_restore_do(restore_info,
                 template = host_collection.get_vm_by_name(template_name)
 
             new_vm = None
+            vm_name = vm.name
+            if 'rename-to' in restore_info[vm.name]:
+                vm_name = restore_info[vm.name]['rename-to']
 
             try:
-                new_vm = host_collection.add_new_vm(vm_class_name, name=vm.name,
-                                                    conf_file=vm.conf_file,
-                                                    dir_path=vm.dir_path,
+                new_vm = host_collection.add_new_vm(vm_class_name, name=vm_name,
                                                     template=template,
                                                     installed_by_rpm=False)
+                if os.path.exists(new_vm.dir_path):
+                    move_to_path = tempfile.mkdtemp('', os.path.basename(
+                        new_vm.dir_path), os.path.dirname(new_vm.dir_path))
+                    try:
+                        os.rename(new_vm.dir_path, move_to_path)
+                        error_callback(
+                            "*** Directory {} already exists! It has "
+                            "been moved to {}".format(new_vm.dir_path,
+                                                      move_to_path))
+                    except OSError:
+                        error_callback(
+                            "*** Directory {} already exists and "
+                            "cannot be moved!".format(new_vm.dir_path))
+                        error_callback("Skipping...")
+                        continue
 
                 if format_version == 1:
                     restore_vm_dir_v1(backup_location,
@@ -2156,7 +2243,11 @@ def backup_restore_do(restore_info,
 
     # Set network dependencies - only non-default netvm setting
     for vm in vms.values():
-        host_vm = host_collection.get_vm_by_name(vm.name)
+        vm_name = vm.name
+        if 'rename-to' in restore_info[vm.name]:
+            vm_name = restore_info[vm.name]['rename-to']
+        host_vm = host_collection.get_vm_by_name(vm_name)
+
         if host_vm is None:
             # Failed/skipped VM
             continue
@@ -2205,7 +2296,7 @@ def backup_restore_do(restore_info,
                           home_dir + '/' + restore_home_backupdir + '/' + f)
             if format_version == 1:
                 subprocess.call(
-                    ["cp", "-nrp", backup_dom0_home_dir + '/' + f, home_file])
+                    ["cp", "-nrp", "--reflink=auto", backup_dom0_home_dir + '/' + f, home_file])
             elif format_version >= 2:
                 shutil.move(backup_dom0_home_dir + '/' + f, home_file)
         retcode = subprocess.call(['sudo', 'chown', '-R', local_user, home_dir])
diff --git a/core/qubes.py b/core/qubes.py
index 5d43d0e3..a5bd2730 100755
--- a/core/qubes.py
+++ b/core/qubes.py
@@ -65,7 +65,7 @@ defaults = {
     'libvirt_uri': 'xen:///',
     'memory': 400,
     'kernelopts': "nopat",
-    'kernelopts_pcidevs': "nopat iommu=soft swiotlb=4096",
+    'kernelopts_pcidevs': "nopat iommu=soft swiotlb=8192",
 
     'dom0_update_check_interval': 6*3600,
 
diff --git a/core/qubesutils.py b/core/qubesutils.py
index 272285de..c505306d 100644
--- a/core/qubesutils.py
+++ b/core/qubesutils.py
@@ -29,7 +29,7 @@ from lxml import etree
 from lxml.etree import ElementTree, SubElement, Element
 
 from qubes.qubes import QubesException
-from qubes.qubes import vmm
+from qubes.qubes import vmm,defaults
 from qubes.qubes import system_path,vm_files
 import sys
 import os
@@ -297,6 +297,8 @@ def block_check_attached(qvmc, device):
         if vm.qid == 0:
             # Connecting devices to dom0 not supported
             continue
+        if not vm.is_running():
+            continue
         try:
             libvirt_domain = vm.libvirt_domain
             if libvirt_domain:
@@ -313,9 +315,8 @@ def block_check_attached(qvmc, device):
             disks = parsed_xml.xpath("//domain/devices/disk")
             for disk in disks:
                 backend_name = 'dom0'
-                # FIXME: move <domain/> into <source/>
-                if disk.find('domain') is not None:
-                    backend_name = disk.find('domain').get('name')
+                if disk.find('backenddomain') is not None:
+                    backend_name = disk.find('backenddomain').get('name')
                 source = disk.find('source')
                 if disk.get('type') == 'file':
                     path = source.get('file')
@@ -696,11 +697,16 @@ class QubesWatch(object):
         self.block_callback = None
         self.meminfo_callback = None
         self.domain_callback = None
-        vmm.libvirt_conn.domainEventRegisterAny(
+        libvirt.virEventRegisterDefaultImpl()
+        # open new libvirt connection because above
+        # virEventRegisterDefaultImpl is in practice effective only for new
+        # connections
+        self.libvirt_conn = libvirt.open(defaults['libvirt_uri'])
+        self.libvirt_conn.domainEventRegisterAny(
             None,
             libvirt.VIR_DOMAIN_EVENT_ID_LIFECYCLE,
             self._domain_list_changed, None)
-        vmm.libvirt_conn.domainEventRegisterAny(
+        self.libvirt_conn.domainEventRegisterAny(
             None,
             libvirt.VIR_DOMAIN_EVENT_ID_DEVICE_REMOVED,
             self._device_removed, None)
@@ -709,10 +715,10 @@ class QubesWatch(object):
             try:
                 if vm.isActive():
                     self._register_watches(vm)
-            except libvirt.libvirtError:
+            except libvirt.libvirtError as e:
                 # this will happen if we loose a race with another tool,
                 # which can just remove the domain
-                if vmm.libvirt_conn.virConnGetLastError()[0] == libvirt.VIR_ERR_NO_DOMAIN:
+                if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
                     pass
                 raise
         # and for dom0
@@ -749,29 +755,41 @@ class QubesWatch(object):
             name = libvirt_domain.name()
             if name in self._qdb:
                 return
+            if not libvirt_domain.isActive():
+                return
             # open separate connection to Qubes DB:
             # 1. to not confuse pull() with responses to real commands sent from
             # other threads (like read, write etc) with watch events
             # 2. to not think whether QubesDB is thread-safe (it isn't)
-            while libvirt_domain.isActive() and name not in self._qdb:
-                try:
-                    self._qdb[name] = QubesDB(name)
-                except Error as e:
-                    if e.args[0] != 2:
-                        raise
-                time.sleep(0.5)
-            if name not in self._qdb:
-                # domain no longer active
+            try:
+                self._qdb[name] = QubesDB(name)
+            except Error as e:
+                if e.args[0] != 2:
+                    raise
+                libvirt.virEventAddTimeout(500, self._retry_register_watches,
+                                           libvirt_domain)
                 return
         else:
             name = "dom0"
             self._qdb[name] = QubesDB(name)
-        self._qdb[name].watch('/qubes-block-devices')
+        try:
+            self._qdb[name].watch('/qubes-block-devices')
+        except Error as e:
+            if e.args[0] == 102: # Connection reset by peer
+                # QubesDB daemon not running - most likely we've connected to
+                #  stale daemon which just exited; retry later
+                libvirt.virEventAddTimeout(500, self._retry_register_watches,
+                                           libvirt_domain)
+                return
         self._qdb_events[name] = libvirt.virEventAddHandle(
             self._qdb[name].watch_fd(),
             libvirt.VIR_EVENT_HANDLE_READABLE,
             self._qdb_handler, name)
 
+    def _retry_register_watches(self, timer, libvirt_domain):
+        libvirt.virEventRemoveTimeout(timer)
+        self._register_watches(libvirt_domain)
+
     def _unregister_watches(self, libvirt_domain):
         name = libvirt_domain.name()
         if name in self._qdb_events:
@@ -782,7 +800,9 @@ class QubesWatch(object):
             del(self._qdb[name])
 
     def _domain_list_changed(self, conn, domain, event, reason, param):
-        if event == libvirt.VIR_DOMAIN_EVENT_STARTED:
+        # use VIR_DOMAIN_EVENT_RESUMED instead of VIR_DOMAIN_EVENT_STARTED to
+        #  make sure that qubesdb daemon is already running
+        if event == libvirt.VIR_DOMAIN_EVENT_RESUMED:
             self._register_watches(domain)
         elif event == libvirt.VIR_DOMAIN_EVENT_STOPPED:
             self._unregister_watches(domain)
@@ -802,9 +822,24 @@ class QubesWatch(object):
 
 ##### updates check #####
 
+#
+# XXX this whole section is a new global property
+# TODO make event handlers
+#
+
 UPDATES_DOM0_DISABLE_FLAG='/var/lib/qubes/updates/disable-updates'
+UPDATES_DEFAULT_VM_DISABLE_FLAG=\
+    '/var/lib/qubes/updates/vm-default-disable-updates'
 
 def updates_vms_toggle(qvm_collection, value):
+    # Flag for new VMs
+    if value:
+        if os.path.exists(UPDATES_DEFAULT_VM_DISABLE_FLAG):
+            os.unlink(UPDATES_DEFAULT_VM_DISABLE_FLAG)
+    else:
+        open(UPDATES_DEFAULT_VM_DISABLE_FLAG, "w").close()
+
+    # Change for existing VMs
     for vm in qvm_collection.values():
         if vm.qid == 0:
             continue
@@ -834,5 +869,16 @@ def updates_dom0_toggle(qvm_collection, value):
 def updates_dom0_status(qvm_collection):
     return not os.path.exists(UPDATES_DOM0_DISABLE_FLAG)
 
+def updates_vms_status(qvm_collection):
+    # default value:
+    status = not os.path.exists(UPDATES_DEFAULT_VM_DISABLE_FLAG)
+    # check if all the VMs uses the default value
+    for vm in qvm_collection.values():
+        if vm.qid == 0:
+            continue
+        if vm.services.get('qubes-update-check', True) != status:
+            # "mixed"
+            return None
+    return status
 
 # vim:sw=4:et:
diff --git a/core/settings-wni-Windows_NT.py b/core/settings-wni-Windows_NT.py
deleted file mode 100644
index 6e646c9d..00000000
--- a/core/settings-wni-Windows_NT.py
+++ /dev/null
@@ -1,45 +0,0 @@
-#!/usr/bin/python2
-
-from __future__ import absolute_import
-import _winreg
-import os
-import sys
-
-from qubes.storage.wni import QubesWniVmStorage
-
-DEFAULT_INSTALLDIR = 'c:\\program files\\Invisible Things Lab\\Qubes WNI'
-DEFAULT_STOREDIR = 'c:\\qubes'
-
-def apply(system_path, vm_files, defaults):
-    system_path['qubes_base_dir'] = DEFAULT_STOREDIR
-    installdir = DEFAULT_INSTALLDIR
-    try:
-        reg_key = _winreg.OpenKey(_winreg.HKEY_LOCAL_MACHINE,
-                "Software\\Invisible Things Lab\\Qubes WNI")
-        installdir = _winreg.QueryValueEx(reg_key, "InstallDir")[0]
-        system_path['qubes_base_dir'] = \
-                _winreg.QueryValueEx(reg_key, "StoreDir")[0]
-    except WindowsError as e:
-        print >>sys.stderr, \
-                "WARNING: invalid installation: missing registry entries (%s)" \
-                % str(e)
-
-    system_path['config_template_pv'] = \
-            os.path.join(installdir, 'vm-template.xml')
-    system_path['config_template_hvm'] = \
-            os.path.join(installdir, 'vm-template-hvm.xml')
-    system_path['qubes_icon_dir'] = os.path.join(installdir, 'icons')
-    system_path['qubesdb_daemon_path'] = \
-            os.path.join(installdir, 'bin\\qubesdb-daemon.exe')
-    system_path['qrexec_daemon_path'] = \
-            os.path.join(installdir, 'bin\\qrexec-daemon.exe')
-    system_path['qrexec_client_path'] = \
-            os.path.join(installdir, 'bin\\qrexec-client.exe')
-    system_path['qrexec_policy_dir'] = \
-            os.path.join(installdir, 'qubes-rpc\\policy')
-    # Specific to WNI - normally VM have this file
-    system_path['qrexec_agent_path'] = \
-            os.path.join(installdir, 'bin\\qrexec-agent.exe')
-
-    defaults['libvirt_uri'] = 'wni:///'
-    defaults['storage_class'] = QubesWniVmStorage
diff --git a/core/settings-xen-Linux.py b/core/settings-xen-Linux.py
index de5084f5..c413e8ae 100644
--- a/core/settings-xen-Linux.py
+++ b/core/settings-xen-Linux.py
@@ -2,7 +2,10 @@
 
 from __future__ import absolute_import
 
-from qubes.storage.xen import QubesXenVmStorage
+from qubes.storage.xen import XenStorage, XenPool
+
 
 def apply(system_path, vm_files, defaults):
-    defaults['storage_class'] = QubesXenVmStorage
+    defaults['storage_class'] = XenStorage
+    defaults['pool_drivers'] = {'xen': XenPool}
+    defaults['pool_config'] = {'dir_path': '/var/lib/qubes/'}
diff --git a/core/storage/Makefile b/core/storage/Makefile
index ec59cc64..7c7af60e 100644
--- a/core/storage/Makefile
+++ b/core/storage/Makefile
@@ -1,5 +1,6 @@
 OS ?= Linux
 
+SYSCONFDIR ?= /etc
 PYTHON_QUBESPATH = $(PYTHON_SITEPATH)/qubes
 
 all:
@@ -13,6 +14,8 @@ endif
 	mkdir -p $(DESTDIR)$(PYTHON_QUBESPATH)/storage
 	cp __init__.py $(DESTDIR)$(PYTHON_QUBESPATH)/storage
 	cp __init__.py[co] $(DESTDIR)$(PYTHON_QUBESPATH)/storage
+	mkdir -p $(DESTDIR)$(SYSCONFDIR)/qubes
+	cp storage.conf $(DESTDIR)$(SYSCONFDIR)/qubes/
 ifneq ($(BACKEND_VMM),)
 	if [ -r $(BACKEND_VMM).py ]; then \
 		cp $(BACKEND_VMM).py $(DESTDIR)$(PYTHON_QUBESPATH)/storage && \
diff --git a/core/storage/wni.py b/core/storage/wni.py
deleted file mode 100644
index a3571765..00000000
--- a/core/storage/wni.py
+++ /dev/null
@@ -1,138 +0,0 @@
-#!/usr/bin/python2
-#
-# The Qubes OS Project, http://www.qubes-os.org
-#
-# Copyright (C) 2013  Marek Marczykowski <marmarek@invisiblethingslab.com>
-#
-# This program is free software; you can redistribute it and/or
-# modify it under the terms of the GNU General Public License
-# as published by the Free Software Foundation; either version 2
-# of the License, or (at your option) any later version.
-#
-# This program is distributed in the hope that it will be useful,
-# but WITHOUT ANY WARRANTY; without even the implied warranty of
-# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-# GNU General Public License for more details.
-#
-# You should have received a copy of the GNU General Public License
-# along with this program; if not, write to the Free Software
-# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
-#
-#
-
-from __future__ import absolute_import
-
-import sys
-import os
-import os.path
-import win32api
-import win32net
-import win32netcon
-import win32security
-import win32profile
-import pywintypes
-import random
-
-from qubes.storage import QubesVmStorage
-from qubes.qubes import QubesException,system_path
-
-class QubesWniVmStorage(QubesVmStorage):
-    """
-    Class for VM storage of WNI VMs.
-    """
-
-    def __init__(self, *args, **kwargs):
-        super(QubesWniVmStorage, self).__init__(*args, **kwargs)
-        # Use the user profile as "private.img"
-        self.home_root = win32profile.GetProfilesDirectory()
-        # FIXME: the assignment below may not always be correct,
-        # but GetUserProfileDirectory needs a user token...
-        self.private_img = os.path.join(self.home_root, self._get_username())
-
-        # Pass paths for WNI libvirt driver
-        os.putenv("WNI_DRIVER_QUBESDB_PATH", system_path['qubesdb_daemon_path'])
-        os.putenv("WNI_DRIVER_QREXEC_AGENT_PATH", system_path['qrexec_agent_path'])
-
-    def _get_username(self, vmname = None):
-        if vmname is None:
-            vmname = self.vm.name
-        return "qubes-vm-%s" % vmname
-
-    def _get_random_password(self, vmname = None):
-        if vmname is None:
-            vmname = self.vm.name
-        return '%x' % random.SystemRandom().getrandombits(256)
-
-    def get_config_params(self):
-        return {}
-
-    def create_on_disk_private_img(self, verbose, source_template = None):
-        # FIXME: this may not always be correct
-        home_dir = os.path.join(self.home_root, self._get_username())
-        # Create user data in information level 1 (PyUSER_INFO_1) format.
-        user_data = {}
-        user_data['name'] = self._get_username()
-        user_data['full_name'] = self._get_username()
-        # libvirt driver doesn't need to know the password anymore
-        user_data['password'] = self._get_random_password()
-        user_data['flags'] = (
-                win32netcon.UF_NORMAL_ACCOUNT |
-                win32netcon.UF_SCRIPT |
-                win32netcon.UF_DONT_EXPIRE_PASSWD |
-                win32netcon.UF_PASSWD_CANT_CHANGE
-                )
-        user_data['priv'] = win32netcon.USER_PRIV_USER
-        user_data['home_dir'] = home_dir
-        user_data['max_storage'] = win32netcon.USER_MAXSTORAGE_UNLIMITED
-        # TODO: catch possible exception
-        win32net.NetUserAdd(None, 1, user_data)
-
-    def create_on_disk_root_img(self, verbose, source_template = None):
-        pass
-
-    def remove_from_disk(self):
-        try:
-            sid = win32security.LookupAccountName(None, self._get_username())[0]
-            string_sid = win32security.ConvertSidToStringSid(sid)
-            win32profile.DeleteProfile(string_sid)
-            win32net.NetUserDel(None, self._get_username())
-        except pywintypes.error, details:
-            if details[0] == 2221:
-                # "The user name cannot be found."
-                raise IOError("User %s doesn't exist" % self._get_username())
-            else:
-                raise
-
-        super(QubesWniVmStorage, self).remove_from_disk()
-
-    def rename(self, old_name, new_name):
-        super(QubesWniVmStorage, self).rename(old_name, new_name)
-        user_data = {}
-        user_data['name'] = self._get_username(new_name)
-        win32net.NetUserSetInfo(None,
-                self._get_username(old_name), 0, user_data)
-        #TODO: rename user profile
-
-    def verify_files(self):
-        if not os.path.exists (self.vmdir):
-            raise QubesException (
-                    "VM directory doesn't exist: {0}".\
-                            format(self.vmdir))
-
-        try:
-            # TemplateVm in WNI is quite virtual, so do not require the user
-            if not self.vm.is_template():
-                win32net.NetUserGetInfo(None, self._get_username(), 0)
-        except pywintypes.error, details:
-            if details[0] == 2221:
-                # "The user name cannot be found."
-                raise QubesException("User %s doesn't exist" % self._get_username())
-            else:
-                raise
-
-    def reset_volatile_storage(self, verbose = False, source_template = None):
-        pass
-
-    def prepare_for_vm_startup(self, verbose = False):
-        if self.vm.is_template():
-            raise QubesException("Starting TemplateVM is not supported")
diff --git a/dispvm/qfile-daemon-dvm b/dispvm/qfile-daemon-dvm
index 7a59113b..c582f79b 100755
--- a/dispvm/qfile-daemon-dvm
+++ b/dispvm/qfile-daemon-dvm
@@ -28,13 +28,12 @@ import sys
 import shutil
 import time
 
-from qubes.qubes import QubesVmCollection
+from qubes.qubes import QubesVmCollection, QubesException
 from qubes.qubes import QubesDispVmLabels
 from qubes.notify import tray_notify, tray_notify_error, tray_notify_init
 
 
 current_savefile = '/var/run/qubes/current-savefile'
-current_dvm_conf = '/var/run/qubes/current-dvm.conf'
 current_savefile_vmdir = '/var/lib/qubes/dvmdata/vmdir'
 
 
@@ -80,10 +79,13 @@ class QfileDaemonDvm:
                                            label=label)
         print >>sys.stderr, "time=%s, VM created" % (str(time.time()))
         # By default inherit firewall rules from calling VM
+        disp_firewall_conf = '/var/run/qubes/%s-firewall.xml' % dispvm.name
+        dispvm.firewall_conf = disp_firewall_conf
         if os.path.exists(vm.firewall_conf):
-            disp_firewall_conf = '/var/run/qubes/%s-firewall.xml' % dispvm.name
             shutil.copy(vm.firewall_conf, disp_firewall_conf)
-            dispvm.firewall_conf = disp_firewall_conf
+        elif vm.qid == 0 and os.path.exists(vm_disptempl.firewall_conf):
+            # for DispVM called from dom0, copy use rules from DispVM template
+            shutil.copy(vm_disptempl.firewall_conf, disp_firewall_conf)
         if len(sys.argv) > 5 and len(sys.argv[5]) > 0:
             assert os.path.exists(sys.argv[5]), "Invalid firewall.conf location"
             dispvm.firewall_conf = sys.argv[5]
@@ -99,7 +101,11 @@ class QfileDaemonDvm:
             qvm_collection.unlock_db()
             return None
         print >>sys.stderr, "time=%s, VM starting" % (str(time.time()))
-        dispvm.start()
+        try:
+            dispvm.start()
+        except (MemoryError, QubesException) as e:
+            tray_notify_error(str(e))
+            raise
         if vm.qid != 0:
             # if need to enable/disable netvm, do it while DispVM is alive
             if (dispvm.netvm is None) != (vm.dispvm_netvm is None):
@@ -176,7 +182,11 @@ def main():
         subprocess.call(['/usr/lib/qubes/qrexec-client', '-d', dispvm.name,
                          user+':exec /usr/lib/qubes/qubes-rpc-multiplexer ' +
                          exec_index + " " + src_vmname])
-        dispvm.force_shutdown()
+        try:
+            dispvm.force_shutdown()
+        except QubesException:
+            # VM already destroyed
+            pass
         qfile.remove_disposable_from_qdb(dispvm.name)
 
-main()
\ No newline at end of file
+main()
diff --git a/dispvm/qubes-prepare-saved-domain.sh b/dispvm/qubes-prepare-saved-domain.sh
index bc4710f2..9c5c0f98 100755
--- a/dispvm/qubes-prepare-saved-domain.sh
+++ b/dispvm/qubes-prepare-saved-domain.sh
@@ -70,5 +70,12 @@ else
 fi
 ln -snf $VMDIR /var/lib/qubes/dvmdata/vmdir
 cd $VMDIR
-bsdtar -cSf saved-cows.tar volatile.img
+fstype=`df --output=fstype $VMDIR | tail -n 1`
+if [ "$fstype" = "tmpfs" ]; then
+    # bsdtar doesn't work on tmpfs because FS_IOC_FIEMAP ioctl isn't supported
+    # there
+    tar -cSf saved-cows.tar volatile.img
+else
+    bsdtar -cSf saved-cows.tar volatile.img
+fi
 echo "DVM savefile created successfully."
diff --git a/dispvm/startup-dvm.sh b/dispvm/startup-dvm.sh
index da0a7887..8f53484c 100755
--- a/dispvm/startup-dvm.sh
+++ b/dispvm/startup-dvm.sh
@@ -6,10 +6,8 @@ printf "\x00\x00\x00\x00" > /var/run/qubes/dispVM.seq
 chown root:qubes /var/run/qubes/dispVM.seq
 chmod 660 /var/run/qubes/dispVM.seq
 DEFAULT=/var/lib/qubes/dvmdata/default-savefile
-DEFAULT_CONFIG=/var/lib/qubes/dvmdata/default-dvm.conf
 # setup DispVM files only when they exists
 if [ -r $DEFAULT ]; then
-    ln -s $DEFAULT_CONFIG /var/run/qubes/current-dvm.conf
     if [ -f /var/lib/qubes/dvmdata/dont-use-shm ] ; then
 	ln -s $DEFAULT /var/run/qubes/current-savefile
     else
diff --git a/doc/manpages/qvm-pci.rst b/doc/manpages/qvm-pci.rst
index bfb8f02a..1d7a437a 100644
--- a/doc/manpages/qvm-pci.rst
+++ b/doc/manpages/qvm-pci.rst
@@ -25,6 +25,12 @@ Options
 
     Add a PCI device to specified VM
 
+.. option:: --add-class, -C
+
+    Add all devices of given class:
+        net - network interfaces
+        usb - USB controllers
+
 .. option:: --delete, -d
 
     Remove a PCI device from specified VM
diff --git a/doc/manpages/qvm-prefs.rst b/doc/manpages/qvm-prefs.rst
index e981d4c0..481df9c4 100644
--- a/doc/manpages/qvm-prefs.rst
+++ b/doc/manpages/qvm-prefs.rst
@@ -55,12 +55,11 @@ include_in_backups
     Accepted values: ``True``, ``False``
 
     Control whenever this VM will be included in backups by default (for now
-    works only in qubes-manager). You can always manually select or deselect
-    any VM for backup.
+    works only in qubes-manager). You can always manually select or
+    deselect any VM for backup.
 
 pcidevs
-    PCI devices assigned to the VM. Should be edited using
-    :manpage:`qvm-pci(1)` tool.
+    PCI devices assigned to the VM. Should be edited using qvm-pci tool.
 
 pci_strictreset
     Accepted values: ``True``, ``False``
@@ -86,23 +85,19 @@ netvm
     default NetVM (managed by qubes-prefs). Setting to ``none`` will disable
     networking in this VM.
 
-    .. note::
-
-        When setting to ``none``, firewall will be set to block all traffic -
-        it will be used by DispVM started from this VM. Setting back to some
-        NetVM will *NOT* restore previous firewall settings.
-
 dispvm_netvm
     Accepted values: netvm name, ``default``, ``none``
 
-    Which NetVM should be used for Disposable VMs started by this one. ``default`` is to use the same NetVM as the VM itself.
+    Which NetVM should be used for Disposable VMs started by this one.
+    ``default`` is to use the same NetVM as the VM itself.
 
 maxmem
     Accepted values: memory size in MB
 
     Maximum memory size available for this VM. Dynamic memory management (aka
-    qmemman) will not be able to balloon over this limit. For VMs with qmemman
-    disabled, this will be overridden by *memory* property (at VM startup).
+    qmemman) will not be able to balloon over this limit. For VMs with
+    qmemman disabled, this will be overridden by *memory* property (at VM
+    startup).
 
 memory
     Accepted values: memory size in MB
@@ -115,12 +110,11 @@ kernel
     Accepted values: kernel version, ``default``, ``none``
 
     Kernel version to use (only for PV VMs). Available kernel versions will be
-    listed when no value given (there are in
-    :file:`/var/lib/qubes/vm-kernels`). Setting to ``default`` will follow
-    system-global default kernel (managed via qubes-prefs). Setting to ``none``
-    will use "kernels" subdir in VM directory - this allows having VM-specific
-    kernel; also this the only case when :file:`/lib/modules` is writable from
-    within VM.
+    listed when no value given (there are in /var/lib/qubes/vm-kernels).
+    Setting to ``default`` will follow system-global default kernel (managed
+    via qubes-prefs). Setting to ``none`` will use "kernels" subdir in
+    VM directory - this allows having VM-specific kernel; also this the only
+    case when /lib/modules is writable from within VM.
 
 template
     Accepted values: TemplateVM name
@@ -139,8 +133,10 @@ kernelopts
     VM kernel parameters (available only for PV VMs). This can be used to
     workaround some hardware specific problems (eg for NetVM). Setting to
     ``default`` will use some reasonable defaults (currently different for VMs
-    with PCI devices and without). Some helpful options (for debugging
-    purposes): ``earlyprintk=xen``, ``init=/bin/bash``
+    with PCI devices and without). For VM without PCI devices
+    ``default`` option means inherit this value from the VM template (if any).
+    Some helpful options (for debugging purposes): ``earlyprintk=xen``,
+    ``init=/bin/bash``
 
 name
     Accepted values: alphanumerical name
@@ -148,12 +144,12 @@ name
     Name of the VM. Can be only changed when VM isn't running.
 
 drive
-    Accepted values: [hd:\|cdrom:][backend-vm:]\ *path*
+    Accepted values: [hd:\|cdrom:][backend-vm:]path
 
     Additional drive for the VM (available only for HVMs). This can be used to
     attach installation image. ``path`` can be file or physical device (eg.
-    :file:`/dev/sr0`). The same syntax can be used in :option:`qvm-start
-    --drive` - to attach drive only temporarily.
+    :file:`/dev/sr0`). The same syntax can be used in
+    :option:`qvm-start --drive` - to attach drive only temporarily.
 
 mac
     Accepted values: MAC address, ``auto``
@@ -161,7 +157,6 @@ mac
     Can be used to force specific of virtual ethernet card in the VM. Setting
     to ``auto`` will use automatic-generated MAC - based on VM id. Especially
     useful when some licencing depending on static MAC address.
-
     For template-based HVM ``auto`` mode means to clone template MAC.
 
 default_user
@@ -181,8 +176,8 @@ debug
     :file:`root.img` (actually :file:`volatile.img`) before each VM startup, so
     changes made to root filesystem stays intact. To force reset
     :file:`root.img` when debug mode enabled, either change something in the
-    template (simple start+stop will do, even touch its root.img is enough), or
-    remove VM's :file:`volatile.img` (check the path with
+    template (simple start+stop will do, even touch its :file:`root.img` is
+    enough), or remove VM's :file:`volatile.img` (check the path with
     :manpage:`qvm-prefs(1)`).
 
 qrexec_installed
@@ -199,7 +194,7 @@ guiagent_installed
     Accepted values: ``True``, ``False``
 
     This HVM have gui agent installed. This option disables full screen GUI
-    virtualization and enables per-window seamless GUI mode. This option will
+    virtualization and enables per-window seemless GUI mode. This option will
     be automatically turned on during Qubes Windows Tools installation, but if
     you install qubes gui agent in some other OS, you need to turn this option
     on manually. You can turn this option off to troubleshoot some early HVM OS
@@ -208,7 +203,7 @@ guiagent_installed
     startup).
 
     .. note::
-
+    
         when Windows GUI agent is installed in the VM, SVGA device (used to
         full screen video) is disabled, so even if you disable this option, you
         will not get functional full desktop access (on normal VM startup). Use
diff --git a/doc/manpages/qvm-service.rst b/doc/manpages/qvm-service.rst
index 2704a4c5..e376497b 100644
--- a/doc/manpages/qvm-service.rst
+++ b/doc/manpages/qvm-service.rst
@@ -92,7 +92,7 @@ cups
     Enable CUPS service. The user can disable cups in VM which do not need
     printing to speed up booting.
 
-cron
+crond
     Default: disabled
 
     Enable CRON service.
diff --git a/etc/storage.conf b/etc/storage.conf
new file mode 100644
index 00000000..e9d067e5
--- /dev/null
+++ b/etc/storage.conf
@@ -0,0 +1,12 @@
+[default] ; poolname
+driver=xen ; the default xen storage
+; class = qubes.storage.xen.XenStorage ; class always overwrites the driver
+; 
+; To use our own storage adapter, you need just to specify the module path and
+; class name
+; [pool-b]
+; class = foo.bar.MyStorage
+;
+; [test-dummy]
+; driver=dummy
+
diff --git a/linux/aux-tools/prepare-volatile-img.sh b/linux/aux-tools/prepare-volatile-img.sh
index 25d9a600..40e22f5d 100755
--- a/linux/aux-tools/prepare-volatile-img.sh
+++ b/linux/aux-tools/prepare-volatile-img.sh
@@ -6,6 +6,10 @@ fi
 
 set -e
 
+if ! echo $PATH | grep -q sbin; then
+	PATH=$PATH:/sbin:/usr/sbin
+fi
+
 FILENAME=$1
 ROOT_SIZE=$2
 SWAP_SIZE=$[ 1024 ]
@@ -22,13 +26,3 @@ fi
 
 TOTAL_SIZE=$[ $ROOT_SIZE + $SWAP_SIZE + 512 ]
 truncate -s ${TOTAL_SIZE}M "$FILENAME"
-sfdisk --no-reread -u M "$FILENAME" > /dev/null 2> /dev/null <<EOF
-0,${SWAP_SIZE},S
-,${ROOT_SIZE},L
-EOF
-
-loopdev=`losetup -f --show --partscan "$FILENAME"`
-udevadm settle
-mkswap -f ${loopdev}p1 > /dev/null
-losetup -d ${loopdev} || :
-chown --reference `dirname "$FILENAME"` "$FILENAME"
diff --git a/linux/aux-tools/startup-misc.sh b/linux/aux-tools/startup-misc.sh
index bba40c33..8b5f8081 100755
--- a/linux/aux-tools/startup-misc.sh
+++ b/linux/aux-tools/startup-misc.sh
@@ -8,7 +8,7 @@ xenstore-write domid 0
 DOM0_MAXMEM=`/usr/sbin/xl info | grep total_memory | awk '{ print $3 }'`
 xenstore-write /local/domain/0/memory/static-max $[ $DOM0_MAXMEM * 1024 ]
 
-xl sched-credit -d 0 -w 512
+xl sched-credit -d 0 -w 2000
 cp /var/lib/qubes/qubes.xml /var/lib/qubes/backup/qubes-$(date +%F-%T).xml
 
 /usr/lib/qubes/cleanup-dispvms
diff --git a/linux/systemd/qubes-core.service b/linux/systemd/qubes-core.service
index 345d6757..1b9ee8a7 100644
--- a/linux/systemd/qubes-core.service
+++ b/linux/systemd/qubes-core.service
@@ -1,6 +1,6 @@
 [Unit]
 Description=Qubes Dom0 startup setup
-After=qubes-db-dom0.service libvirtd.service
+After=qubes-db-dom0.service libvirtd.service xenconsoled.service
 # Cover legacy init.d script
 
 [Service]
@@ -9,6 +9,9 @@ StandardOutput=syslog
 RemainAfterExit=yes
 ExecStart=/usr/lib/qubes/startup-misc.sh
 ExecStop=/usr/bin/qvm-shutdown -q --all --wait
+# QubesDB daemons stop after 60s timeout in worst case; speed it up, since no
+# VMs are running now
+ExecStop=-/usr/bin/killall qubesdb-daemon
 
 [Install]
 WantedBy=multi-user.target
diff --git a/linux/systemd/qubes-netvm.service b/linux/systemd/qubes-netvm.service
index 450a9903..bf556f3c 100644
--- a/linux/systemd/qubes-netvm.service
+++ b/linux/systemd/qubes-netvm.service
@@ -1,7 +1,7 @@
 [Unit]
 Description=Qubes NetVM startup
 After=qubes-core.service qubes-qmemman.service libvirtd.service
-Before=plymouth-quit.service
+Before=systemd-user-sessions.service
 
 [Service]
 Type=oneshot
diff --git a/linux/systemd/qubes-vm@.service b/linux/systemd/qubes-vm@.service
index 07607d10..2eb09ec5 100644
--- a/linux/systemd/qubes-vm@.service
+++ b/linux/systemd/qubes-vm@.service
@@ -1,12 +1,12 @@
 [Unit]
 Description=Start Qubes VM %i
 After=qubes-netvm.service
-Before=plymouth-quit.service
+Before=systemd-user-sessions.service
 
 [Service]
 Type=oneshot
 Environment=DISPLAY=:0
-ExecStart=/usr/bin/qvm-start --no-guid %i
+ExecStart=/usr/bin/qvm-start --no-guid --skip-if-running %i
 Group=qubes
 RemainAfterExit=yes
 
diff --git a/qubes-rpc/qubes-notify-tools b/qubes-rpc/qubes-notify-tools
index ce85009f..273df90d 100755
--- a/qubes-rpc/qubes-notify-tools
+++ b/qubes-rpc/qubes-notify-tools
@@ -5,7 +5,6 @@ import re
 import sys
 import subprocess
 from qubes.qubes import QubesVmCollection,QubesException,QubesHVm
-from qubes.qubes import xs
 
 def main():
 
@@ -15,6 +14,8 @@ def main():
         print >> sys.stderr, 'This script must be called as qrexec service!'
         exit(1)
 
+    prev_qrexec_installed = False
+    source_vm = None
     qvm_collection = QubesVmCollection()
     qvm_collection.lock_db_for_writing()
     try:
@@ -66,6 +67,7 @@ def main():
         else:
             user = None
 
+        prev_qrexec_installed = source_vm.qrexec_installed
         # Let the tools to be able to enable *or disable* each particular component
         source_vm.qrexec_installed = qrexec > 0
         source_vm.guiagent_installed = gui > 0
@@ -75,15 +77,18 @@ def main():
 
         qvm_collection.save()
 
-        retcode = subprocess.call(['qvm-sync-appmenus', '--force-rpc'])
-        if retcode == 0 and hasattr(source_vm, 'appmenus_recreate'):
-            # TODO: call the same for child VMs? This isn't done for Linux VMs,
-            # so probably should be ignored for Windows also
-            source_vm.appmenus_recreate()
     except Exception as e:
         print >> sys.stderr, e.message
         exit(1)
     finally:
         qvm_collection.unlock_db()
 
+    if not prev_qrexec_installed and source_vm.qrexec_installed:
+        retcode = subprocess.call(['qvm-sync-appmenus', '--force-rpc'])
+        if retcode == 0 and hasattr(source_vm, 'appmenus_recreate'):
+            # TODO: call the same for child VMs? This isn't done for Linux VMs,
+            # so probably should be ignored for Windows also
+            source_vm.appmenus_recreate()
+
+
 main()
diff --git a/qubes-rpc/qubes-notify-updates b/qubes-rpc/qubes-notify-updates
index 2dd851b8..9ece7c42 100755
--- a/qubes-rpc/qubes-notify-updates
+++ b/qubes-rpc/qubes-notify-updates
@@ -44,7 +44,7 @@ def main():
 
     source_vm = qvm_collection.get_vm_by_name(source)
     if source_vm is None:
-        print >> sys.stderr, 'Domain ' + source + ' does not exists (?!)'
+        print >> sys.stderr, 'Domain ' + source + ' does not exist (?!)'
         exit(1)
 
     os.umask(0002)
@@ -61,7 +61,10 @@ def main():
         update_f = open(source_vm.dir_path + '/' + vm_files["updates_stat_file"], "w")
         update_f.write(update_count)
         update_f.close()
-        os.chown(source_vm.dir_path + '/' + vm_files["updates_stat_file"], -1, qubes_gid)
+        try:
+            os.chown(source_vm.dir_path + '/' + vm_files["updates_stat_file"], -1, qubes_gid)
+        except OSError:
+            pass
     elif source_vm.template is not None:
         # Hint about updates availability in template
         # If template is running - it will notify about updates itself
@@ -79,7 +82,10 @@ def main():
             update_f = open(stat_file, "w")
             update_f.write(update_count)
             update_f.close()
-            os.chown(stat_file, -1, qubes_gid)
+            try:
+                os.chown(stat_file, -1, qubes_gid)
+            except OSError:
+                pass
         else:
             print >> sys.stderr, 'Ignoring notification of no updates'
 
diff --git a/qubes/__init__.py b/qubes/__init__.py
index 540bd2d5..d1929917 100644
--- a/qubes/__init__.py
+++ b/qubes/__init__.py
@@ -1142,6 +1142,11 @@ class Qubes(PropertyHolder):
     default_kernel = property('default_kernel', load_stage=3,
         doc='Which kernel to use when not overriden in VM')
 
+    # TODO #1637 #892
+    check_updates_vm = property('check_updates_vm',
+        type=bool, setter=property.bool,
+        doc='check for updates inside qubes')
+
 
     def __init__(self, store=None, load=True, **kwargs):
         #: logger instance for logging global messages
diff --git a/qubes/config.py b/qubes/config.py
index 0a85be59..82f2964c 100644
--- a/qubes/config.py
+++ b/qubes/config.py
@@ -22,6 +22,12 @@
 # 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
 #
 
+#
+# THIS FILE SHOULD BE CONFIGURED PER PRODUCT
+# or better, once first custom product arrives,
+# make a real /etc/qubes/master.conf or whatever
+#
+
 '''Constants which can be configured in one place'''
 
 qubes_base_dir = "/var/lib/qubes"
@@ -69,14 +75,16 @@ defaults = {
     'libvirt_uri': 'xen:///',
     'memory': 400,
     'kernelopts': "nopat",
-    'kernelopts_pcidevs': "nopat iommu=soft swiotlb=4096",
+    'kernelopts_pcidevs': "nopat iommu=soft swiotlb=8192",
 
     'dom0_update_check_interval': 6*3600,
 
     'private_img_size': 2*1024*1024*1024,
     'root_img_size': 10*1024*1024*1024,
 
-    'storage_class': 'qubes.storage.xen.XenVMStorage',
+    'storage_class': 'qubes.storage.xen.XenStorage',
+    'pool_drivers': {'xen': 'qubes.storage.xen.XenPool'}
+    'pool_config': {'dir_path': '/var/lib/qubes'}
 
     # how long (in sec) to wait for VMs to shutdown,
     # before killing them (when used qvm-run with --wait option),
diff --git a/qubes/qmemman/__init__.py b/qubes/qmemman/__init__.py
index 80c3a0d6..bb9c8a12 100644
--- a/qubes/qmemman/__init__.py
+++ b/qubes/qmemman/__init__.py
@@ -42,7 +42,9 @@ slow_memset_react_msg="VM didn't give back all requested memory"
 class DomainState:
     def __init__(self, id):
         self.meminfo = None		#dictionary of memory info read from client
-        self.memory_actual = None	#the current memory size
+        self.memory_current = 0     # the current memory size
+        self.memory_actual = None   # the current memory allocation (what VM
+                                    #  is using or can use at any time)
         self.memory_maximum = None	#the maximum memory size
         self.mem_used = None		#used memory, computed based on meminfo
         self.id = id			#domain id
@@ -50,6 +52,9 @@ class DomainState:
         self.no_progress = False    #no react to memset
         self.slow_memset_react = False #slow react to memset (after few tries still above target)
 
+    def __repr__(self):
+        return self.__dict__.__repr__()
+
 class SystemState(object):
     def __init__(self):
         self.log = logging.getLogger('qmemman.systemstate')
@@ -61,30 +66,62 @@ class SystemState(object):
         self.BALOON_DELAY = 0.1
         self.XEN_FREE_MEM_LEFT = 50*1024*1024
         self.XEN_FREE_MEM_MIN = 25*1024*1024
-        self.ALL_PHYS_MEM = self.xc.physinfo()['total_memory']*1024
+        # Overhead of per-page Xen structures, taken from OpenStack nova/virt/xenapi/driver.py
+        # see https://wiki.openstack.org/wiki/XenServer/Overhead
+        # we divide total and free physical memory by this to get "assignable" memory
+        self.MEM_OVERHEAD_FACTOR = 1.0 / 1.00781
+        self.ALL_PHYS_MEM = int(self.xc.physinfo()['total_memory']*1024 * self.MEM_OVERHEAD_FACTOR)
 
     def add_domain(self, id):
         self.log.debug('add_domain(id={!r})'.format(id))
         self.domdict[id] = DomainState(id)
+        # TODO: move to DomainState.__init__
+        target_str = self.xs.read('', '/local/domain/' + id + '/memory/target')
+        if target_str:
+            self.domdict[id].last_target = int(target_str) * 1024
 
     def del_domain(self, id):
         self.log.debug('del_domain(id={!r})'.format(id))
         self.domdict.pop(id)
 
     def get_free_xen_memory(self):
-        return self.xc.physinfo()['free_memory']*1024
-#        hosts = self.xend_session.session.xenapi.host.get_all()
-#        host_record = self.xend_session.session.xenapi.host.get_record(hosts[0])
-#        host_metrics_record = self.xend_session.session.xenapi.host_metrics.get_record(host_record["metrics"])
-#        ret = host_metrics_record["memory_free"]
-#        return long(ret)
+        xen_free = int(self.xc.physinfo()['free_memory']*1024 *
+                       self.MEM_OVERHEAD_FACTOR)
+        # now check for domains which have assigned more memory than really
+        # used - do not count it as "free", because domain is free to use it
+        # at any time
+        # assumption: self.refresh_memactual was called before
+        # (so domdict[id].memory_actual is up to date)
+        assigned_but_unused = reduce(
+            lambda acc, dom: acc + max(0, dom.last_target-dom.memory_current),
+            self.domdict.values(),
+            0
+        )
+        # If, at any time, Xen have less memory than XEN_FREE_MEM_MIN,
+        # it is a failure of qmemman. Collect as much data as possible to
+        # debug it
+        if xen_free < self.XEN_FREE_MEM_MIN:
+            self.log.error("Xen free = {!r} below acceptable value! "
+                           "assigned_but_unused={!r}, domdict={!r}".format(
+                xen_free, assigned_but_unused, self.domdict))
+        elif xen_free < assigned_but_unused+self.XEN_FREE_MEM_MIN:
+            self.log.error("Xen free = {!r} too small for satisfy assignments! "
+                           "assigned_but_unused={!r}, domdict={!r}".format(
+                xen_free, assigned_but_unused, self.domdict))
+        return xen_free - assigned_but_unused
 
 #refresh information on memory assigned to all domains
     def refresh_memactual(self):
         for domain in self.xc.domain_getinfo():
             id = str(domain['domid'])
             if self.domdict.has_key(id):
-                self.domdict[id].memory_actual = domain['mem_kb']*1024
+                # real memory usage
+                self.domdict[id].memory_current = domain['mem_kb']*1024
+                # what VM is using or can use
+                self.domdict[id].memory_actual = max(
+                    self.domdict[id].memory_current,
+                    self.domdict[id].last_target
+                )
                 self.domdict[id].memory_maximum = self.xs.read('', '/local/domain/%s/memory/static-max' % str(id))
                 if self.domdict[id].memory_maximum:
                     self.domdict[id].memory_maximum = int(self.domdict[id].memory_maximum)*1024
@@ -151,21 +188,38 @@ class SystemState(object):
 #perform memory ballooning, across all domains, to add "memsize" to Xen free memory
     def do_balloon(self, memsize):
         self.log.info('do_balloon(memsize={!r})'.format(memsize))
-        MAX_TRIES = 20
+        CHECK_PERIOD_S = 3
+        CHECK_MB_S = 100
+
         niter = 0
         prev_memory_actual = None
 
         for i in self.domdict.keys():
             self.domdict[i].no_progress = False
 
+        #: number of loop iterations for CHECK_PERIOD_S seconds
+        check_period = max(1, int((CHECK_PERIOD_S + 0.0) / self.BALOON_DELAY))
+        #: number of free memory bytes expected to get during CHECK_PERIOD_S
+        #: seconds
+        check_delta = CHECK_PERIOD_S * CHECK_MB_S * 1024 * 1024
+        #: helper array for holding free memory size, CHECK_PERIOD_S seconds
+        #: ago, at every loop iteration
+        xenfree_ring = [0] * check_period
+
         while True:
-            self.log.debug('niter={:2d}/{:2d}'.format(niter, MAX_TRIES))
+            self.log.debug('niter={:2d}'.format(niter))
             self.refresh_memactual()
             xenfree = self.get_free_xen_memory()
             self.log.info('xenfree={!r}'.format(xenfree))
             if xenfree >= memsize + self.XEN_FREE_MEM_MIN:
                 self.inhibit_balloon_up()
                 return True
+            # fail the request if over past CHECK_PERIOD_S seconds,
+            # we got less than CHECK_MB_S MB/s on average
+            ring_slot = niter % check_period
+            if niter >= check_period and xenfree < xenfree_ring[ring_slot] + check_delta:
+                return False
+            xenfree_ring[ring_slot] = xenfree
             if prev_memory_actual is not None:
                 for i in prev_memory_actual.keys():
                     if prev_memory_actual[i] == self.domdict[i].memory_actual:
@@ -174,7 +228,7 @@ class SystemState(object):
                         self.log.info('domain {} stuck at {}'.format(i, self.domdict[i].memory_actual))
             memset_reqs = qubes.qmemman.algo.balloon(memsize + self.XEN_FREE_MEM_LEFT - xenfree, self.domdict)
             self.log.info('memset_reqs={!r}'.format(memset_reqs))
-            if niter > MAX_TRIES or len(memset_reqs) == 0:
+            if len(memset_reqs) == 0:
                 return False
             prev_memory_actual = {}
             for i in memset_reqs:
@@ -266,11 +320,11 @@ class SystemState(object):
                 self.log.debug('do_balance dom={!r} sleeping ntries={}'.format(
                     dom, ntries))
                 time.sleep(self.BALOON_DELAY)
+                self.refresh_memactual()
                 ntries -= 1
                 if ntries <= 0:
                     # Waiting haven't helped; Find which domain get stuck and
                     # abort balance (after distributing what we have)
-                    self.refresh_memactual()
                     for rq2 in memset_reqs:
                         dom2, mem2 = rq2
                         if dom2 == dom:
diff --git a/qubes/storage/README.md b/qubes/storage/README.md
new file mode 100644
index 00000000..0b33d3d3
--- /dev/null
+++ b/qubes/storage/README.md
@@ -0,0 +1,5 @@
+# WNI File storage
+Before v3.1 there existed a draft wni storage. You can find it in the git
+history
+
+(it was in /core/storage directory, now gone)
diff --git a/qubes/storage/__init__.py b/qubes/storage/__init__.py
index f831abcc..32dbef6e 100644
--- a/qubes/storage/__init__.py
+++ b/qubes/storage/__init__.py
@@ -39,14 +39,19 @@ import qubes.exc
 import qubes.utils
 
 BLKSIZE = 512
+CONFIG_FILE = '/etc/qubes/storage.conf'
 
-class VMStorage(object):
+class Storage(object):
     '''Class for handling VM virtual disks.
 
     This is base class for all other implementations, mostly with Xen on Linux
     in mind.
     ''' # pylint: disable=abstract-class-little-used
 
+    root_img = None
+    private_img = None
+    volatile_img = None
+
     def __init__(self, vm, private_img_size=None, root_img_size=None):
 
         #: Domain for which we manage storage
@@ -66,29 +71,54 @@ class VMStorage(object):
         self.drive = None
 
 
-    @property
-    def private_img(self):
-        '''Path to the private image'''
-        return self.abspath(qubes.config.vm_files['private_img'])
+    def get_config_params(self):
+        args = {}
+        args['rootdev'] = self.root_dev_config()
+        args['privatedev'] = self.private_dev_config()
+        args['volatiledev'] = self.volatile_dev_config()
+        args['otherdevs'] = self.other_dev_config()
+
+        args['kerneldir'] = self.kernels_dir
+
+        return args
 
 
-    @property
-    def root_img(self):
-        '''Path to the root image'''
-        return self.vm.template.root_img if hasattr(self.vm, 'template') \
-            else self.abspath(qubes.config.vm_files['root_img'])
+    def root_dev_config(self):
+        raise NotImplementedError()
 
+    def private_dev_config(self):
+        raise NotImplementedError()
 
-    @property
-    def rootcow_img(self):
-        '''Path to the root COW image'''
-        return self.abspath(qubes.config.vm_files['rootcow_img'])
+    def volatile_dev_config(self):
+        raise NotImplementedError()
 
+    def other_dev_config(self)
+        if self.modules_img is not None:
+            return self.format_disk_dev(self.modules_img, None,
+                self.modules_dev, rw=self.modules_img_rw)
+        elif self.drive is not None:
+            (drive_type, drive_domain, drive_path) = self.drive.split(":")
+            if drive_type == 'hd':
+                drive_type = 'disk'
 
-    @property
-    def volatile_img(self):
-        '''Path to the volatile image'''
-        return self.abspath(qubes.config.vm_files['volatile_img'])
+            rw = (drive_type == 'disk')
+
+            if drive_domain.lower() == "dom0":
+                drive_domain = None
+
+            return self.format_disk_dev(drive_path,
+                None,
+                self.modules_dev,
+                rw=rw,
+                type=drive_type,
+                domain=drive_domain)
+
+        else:
+            return ''
+
+    def format_disk_dev(self, path, script, vdev, rw=True, type='disk',
+            domain=None):
+        raise NotImplementedError()
 
 
     @property
@@ -111,7 +141,13 @@ class VMStorage(object):
 
         Depending on domain, this may be global or inside domain's dir.
         '''
-        return os.path.join(self.kernels_dir, 'modules.img')
+
+        modules_path = os.path.join(self.kernels_dir, 'modules.img')
+
+        if os.path.exists(modules_path):
+            return modules_path
+        else:
+            return None
 
 
     @property
@@ -142,7 +178,7 @@ class VMStorage(object):
 
         # We prefer to use Linux's cp, because it nicely handles sparse files
         try:
-            subprocess.check_call(['cp', source, destination])
+            subprocess.check_call(['cp', '--reflink=auto', source, destination])
         except subprocess.CalledProcessError:
             raise IOError('Error while copying {!r} to {!r}'.format(
                 source, destination))
@@ -208,7 +244,7 @@ class VMStorage(object):
         .. note::
             The arguments are in different order than in :program:`cp` utility.
 
-        .. versionchange:: 3.0
+        .. versionchange:: 4.0
             This is now dummy method that just passes everything to
             :py:func:`os.rename`.
 
@@ -256,7 +292,7 @@ class VMStorage(object):
 
         # For StandaloneVM create it only if not already exists
         # (eg after backup-restore)
-        if hasattr(self.vm, 'volatile_img') \
+        if hasattr(self, 'volatile_img') \
                 and not os.path.exists(self.vm.volatile_img):
             self.vm.log.info(
                 'Creating volatile image: {0}'.format(self.volatile_img))
@@ -317,13 +353,198 @@ def get_disk_usage(path):
     return ret
 
 
-def get_storage(vm):
-    '''Factory yielding storage class instances for domains.
+#def get_storage(vm):
+#    '''Factory yielding storage class instances for domains.
+#
+#    :raises ImportError: when storage class specified in config cannot be found
+#    :raises KeyError: when storage class specified in config cannot be found
+#    '''
+#    pkg, cls = qubes.config.defaults['storage_class'].strip().rsplit('.', 1)
+#
+#    # this may raise ImportError or KeyError, that's okay
+#    return importlib.import_module(pkg).__dict__[cls](vm)
 
-    :raises ImportError: when storage class specified in config cannot be found
-    :raises KeyError: when storage class specified in config cannot be found
-    '''
-    pkg, cls = qubes.config.defaults['storage_class'].strip().rsplit('.', 1)
 
-    # this may raise ImportError or KeyError, that's okay
-    return importlib.import_module(pkg).__dict__[cls](vm)
+def dump(o):
+    """ Returns a string represention of the given object
+
+        Args:
+            o (object): anything that response to `__module__` and `__class__`
+
+        Given the class :class:`qubes.storage.QubesVmStorage` it returns
+        'qubes.storage.QubesVmStorage' as string
+    """
+    return o.__module__ + '.' + o.__class__.__name__
+
+
+def load(string):
+    """ Given a dotted full module string representation of a class it loads it
+
+        Args:
+            string (str) i.e. 'qubes.storage.xen.QubesXenVmStorage'
+
+        Returns:
+            type
+
+        See also:
+            :func:`qubes.storage.dump`
+    """
+    if not type(string) is str:
+        # This is a hack which allows giving a real class to a vm instead of a
+        # string as string_class parameter.
+        return string
+
+    components = string.split(".")
+    module_path = ".".join(components[:-1])
+    klass = components[-1:][0]
+    module = __import__(module_path, fromlist=[klass])
+    return getattr(module, klass)
+
+
+def get_pool(name, vm):
+    """ Instantiates the storage for the specified vm """
+    config = _get_storage_config_parser()
+
+    klass = _get_pool_klass(name, config)
+
+    keys = [k for k in config.options(name) if k != 'driver' and k != 'class']
+    values = [config.get(name, o) for o in keys]
+    config_kwargs = dict(zip(keys, values))
+
+    if name == 'default':
+        kwargs = defaults['pool_config'].copy()
+        kwargs.update(keys)
+    else:
+        kwargs = config_kwargs
+
+    return klass(vm, **kwargs)
+
+
+def pool_exists(name):
+    """ Check if the specified pool exists """
+    try:
+        _get_pool_klass(name)
+        return True
+    except StoragePoolException:
+        return False
+
+def add_pool(name, **kwargs):
+    """ Add a storage pool to config."""
+    config = _get_storage_config_parser()
+    config.add_section(name)
+    for key, value in kwargs.iteritems():
+        config.set(name, key, value)
+    _write_config(config)
+
+def remove_pool(name):
+    """ Remove a storage pool from config file.  """
+    config = _get_storage_config_parser()
+    config.remove_section(name)
+    _write_config(config)
+
+def _write_config(config):
+    with open(CONFIG_FILE, 'w') as configfile:
+        config.write(configfile)
+
+def _get_storage_config_parser():
+    """ Instantiates a `ConfigParaser` for specified storage config file.
+
+        Returns:
+            RawConfigParser
+    """
+    config = ConfigParser.RawConfigParser()
+    config.read(CONFIG_FILE)
+    return config
+
+
+def _get_pool_klass(name, config=None):
+    """ Returns the storage klass for the specified pool.
+
+        Args:
+            name: The pool name.
+            config: If ``config`` is not specified
+                    `_get_storage_config_parser()` is called.
+
+        Returns:
+            type: A class inheriting from `QubesVmStorage`
+    """
+    if config is None:
+        config = _get_storage_config_parser()
+
+    if not config.has_section(name):
+        raise StoragePoolException('Uknown storage pool ' + name)
+
+    if config.has_option(name, 'class'):
+        klass = load(config.get(name, 'class'))
+    elif config.has_option(name, 'driver'):
+        pool_driver = config.get(name, 'driver')
+        klass = defaults['pool_drivers'][pool_driver]
+    else:
+        raise StoragePoolException('Uknown storage pool driver ' + name)
+    return klass
+
+
+class StoragePoolException(QubesException):
+    pass
+
+
+class Pool(object):
+    def __init__(self, vm, dir_path):
+        assert vm is not None
+        assert dir_path is not None
+
+        self.vm = vm
+        self.dir_path = dir_path
+
+        self.create_dir_if_not_exists(self.dir_path)
+
+        self.vmdir = self.vmdir_path(vm, self.dir_path)
+
+        appvms_path = os.path.join(self.dir_path, 'appvms')
+        self.create_dir_if_not_exists(appvms_path)
+
+        servicevms_path = os.path.join(self.dir_path, 'servicevms')
+        self.create_dir_if_not_exists(servicevms_path)
+
+        vm_templates_path = os.path.join(self.dir_path, 'vm-templates')
+        self.create_dir_if_not_exists(vm_templates_path)
+
+    def vmdir_path(self, vm, pool_dir):
+        """ Returns the path to vmdir depending on the type of the VM.
+
+            The default QubesOS file storage saves the vm images in three
+            different directories depending on the ``QubesVM`` type:
+
+            * ``appvms`` for ``QubesAppVm`` or ``QubesHvm``
+            * ``vm-templates`` for ``QubesTemplateVm`` or ``QubesTemplateHvm``
+            * ``servicevms`` for any subclass of  ``QubesNetVm``
+
+            Args:
+                vm: a QubesVM
+                pool_dir: the root directory of the pool
+
+            Returns:
+                string (str) absolute path to the directory where the vm files
+                             are stored
+        """
+        if vm.is_appvm():
+            subdir = 'appvms'
+        elif vm.is_template():
+            subdir = 'vm-templates'
+        elif vm.is_netvm():
+            subdir = 'servicevms'
+        elif vm.is_disposablevm():
+            subdir = 'appvms'
+            return os.path.join(pool_dir, subdir, vm.template.name + '-dvm')
+        else:
+            raise QubesException(vm.type() + ' unknown vm type')
+
+        return os.path.join(pool_dir, subdir, vm.name)
+
+    def create_dir_if_not_exists(self, path):
+        """ Check if a directory exists in if not create it.
+
+            This method does not create any parent directories.
+        """
+        if not os.path.exists(path):
+            os.mkdir(path)
diff --git a/qubes/storage/xen.py b/qubes/storage/xen.py
index fcc54fc1..ba8a0f73 100644
--- a/qubes/storage/xen.py
+++ b/qubes/storage/xen.py
@@ -39,7 +39,7 @@ import qubes.storage
 import qubes.vm.templatevm
 
 
-class XenVMStorage(qubes.storage.VMStorage):
+class XenStorage(qubes.storage.Storage):
     '''Class for VM storage of Xen VMs.
     '''
 
@@ -48,10 +48,53 @@ class XenVMStorage(qubes.storage.VMStorage):
     volatile_dev = 'xvdc'
     modules_dev = 'xvdd'
 
+    def __init__(self, vm, vmdir, **kwargs):
+        """ Instantiate the storage.
+
+            Args:
+                vm: a QubesVM
+                vmdir: the root directory of the pool
+        """
+        assert vm is not None
+        assert vmdir is not None
+
+        super(XenStorage, self).__init__(vm, **kwargs)
+
+        self.vmdir = vmdir
+
+
+    @property
+    def private_img(self):
+        '''Path to the private image'''
+        return self.abspath(qubes.config.vm_files['private_img'])
+
+
+    @property
+    def root_img(self):
+        '''Path to the root image'''
+        return self.vm.template.root_img if hasattr(self.vm, 'template') \
+            else self.abspath(qubes.config.vm_files['root_img'])
+
+
+    @property
+    def rootcow_img(self):
+        '''Path to the root COW image'''
+
+        if isinstance(self.vm, qubes.vm.templatevm.TemplateVM):
+            return self.abspath(qubes.config.vm_files['rootcow_img'])
+
+        return None
+
+
+    @property
+    def volatile_img(self):
+        '''Path to the volatile image'''
+        return self.abspath(qubes.config.vm_files['volatile_img'])
+
 
     # pylint: disable=redefined-builtin
     @staticmethod
-    def _format_disk_dev(path, vdev, script=None, rw=True, type='disk',
+    def format_disk_dev(path, vdev, script=None, rw=True, type='disk',
             domain=None):
         if path is None:
             return ''
@@ -76,52 +119,50 @@ class XenVMStorage(qubes.storage.VMStorage):
         return lxml.etree.tostring(element)
 
 
-    def _get_rootdev(self):
+    def root_dev_config(self):
         if isinstance(self.vm, qubes.vm.templatevm.TemplateVM):
-            return self._format_disk_dev(
-                '{}:{}'.format(self.root_img, self.vm.rootcow_img),
+            return self.format_disk_dev(
+                '{root}:{rootcow}'.format(
+                    root=self.root_img,
+                    rootcow=self.rootcow_img),
                 self.root_dev,
                 script='block-origin')
 
+        elif self.vm.hvm and hasattr(self.vm, 'template'):
+            # HVM template-based VM - only one device-mapper layer, in dom0
+            # (root+volatile)
+            # HVM detection based on 'kernel' property is massive hack,
+            # but taken from assumption that VM needs Qubes-specific kernel
+            # (actually initramfs) to assemble the second layer of device-mapper
+            return self.format_disk_dev(
+                '{root}:{volatile}'.format(
+                    root=self.vm.template.storage.root_img,
+                    volatile=self.volatile_img),
+                self.root_dev,
+                script='block-snapshot')
+
         elif hasattr(self.vm, 'template'):
-            return self._format_disk_dev(
-                '{}:{}'.format(self.root_img, self.vm.template.rootcow_img),
+            # any other template-based VM - two device-mapper layers: one
+            # in dom0 (here) from root+root-cow, and another one from
+            # this+volatile.img
+            return self.format_disk_dev(
+                '{root}:{template_rootcow}'.format(
+                    root=self.root_img,
+                    template_rootcow=self.vm.template.storage.rootcow_img),
                 self.root_dev,
                 script='block-snapshot',
                 rw=False)
 
         else:
-            return self._format_disk_dev(self.root_img, self.root_dev)
+            # standalone qube
+            return self.format_disk_dev(self.root_img, self.root_dev)
 
 
-    def get_config_params(self):
-        args = {}
-        args['rootdev'] = self._get_rootdev()
-        args['privatedev'] = self._format_disk_dev(self.private_img,
-            self.private_dev)
-        args['volatiledev'] = self._format_disk_dev(self.volatile_img,
-            self.volatile_dev)
+    def private_dev_config(self):
+        self.format_disk_dev(self.private_img, self.private_dev)
 
-        args['kerneldir'] = self.kernels_dir
-
-        if self.modules_img is not None:
-            args['otherdevs'] = self._format_disk_dev(self.modules_img,
-                self.modules_dev, rw=self.modules_img_rw)
-        elif self.drive is not None:
-            (drive_type, drive_domain, drive_path) = self.drive.split(":")
-            if drive_domain.lower() == "dom0":
-                drive_domain = None
-
-            args['otherdevs'] = self._format_disk_dev(drive_path,
-                self.modules_dev,
-                rw=(drive_type == "disk"),
-                type=drive_type,
-                domain=drive_domain)
-
-        else:
-            args['otherdevs'] = ''
-
-        return args
+    def volatile_dev_config(self):
+        self.format_disk_dev(self.volatile_img, self.volatile_dev)
 
 
     def create_on_disk_private_img(self, source_template=None):
@@ -185,3 +226,70 @@ class XenVMStorage(qubes.storage.VMStorage):
         f_cow.close()
         f_root.close()
         os.umask(old_umask)
+
+
+    def reset_volatile_storage(self, source_template=None):
+        if source_template is None:
+            source_template = self.vm.template
+
+        if source_template is not None:
+            # template-based VM with only one device-mapper layer -
+            # volatile.img used as upper layer on root.img, no root-cow.img
+            # intermediate layer
+
+            # XXX marmarek says this is either always true or always false;
+            # rootcow_img got smashed in 35cb82 (#1573)
+            # this may have remain after HVM check
+            # this probably should have happen anyway
+            if not source_template.storage.rootcow_img:
+                if os.path.exists(self.volatile_img):
+                    if self.vm.debug:
+                        if os.path.getmtime(source_template.storage.root_img) \
+                                > os.path.getmtime(self.volatile_img):
+                            self.vm.log.warning(
+                                'Template have changed, resetting root.img')
+                        else:
+                            self.vm.log.warning(
+                                'Debug mode: not resetting root.img; if you'
+                                ' want to force root.img reset, either'
+                                ' update template VM, or remove volatile.img'
+                                ' file.')
+                            return
+
+                    os.remove(self.volatile_img)
+
+                # FIXME stat on f_root; with open() ...
+                f_volatile = open(self.volatile_img, "w")
+                f_root = open(source_template.storage.root_img, "r")
+                f_root.seek(0, os.SEEK_END)
+                f_volatile.truncate(f_root.tell()) # make empty sparse file of the same size as root.img
+                f_volatile.close()
+                f_root.close()
+                return # XXX why is that? super() does not run
+
+        super(XenStorage, self).reset_volatile_storage(
+            source_template=source_template)
+
+
+    def prepare_for_vm_startup(self):
+        super(XenStorage, self).prepare_for_vm_startup()
+
+        if self.drive is not None:
+            (drive_type, drive_domain, drive_path) = self.drive.split(":")
+
+            if drive_domain.lower() != "dom0":
+                # XXX "VM '{}' holding '{}' does not exists".format(
+                drive_vm = self.vm.app.domains[drive_domain]
+
+                if not drive_vm.is_running():
+                    raise qubes.exc.QubesVMNotRunningError(drive_vm,
+                        'VM {!r} holding {!r} isn\'t running'.format(
+                            drive_domain, drive_path))
+
+        if self.rootcow_img and not os.path.exists(self.rootcow_img):
+            self.commit_template_changes()
+
+class XenPool(qubes.storage.Pool):
+    def get_storage(self):
+        """ Returns an instantiated ``XenStorage``. """
+        return XenStorage(self.vm, vmdir=self.vmdir)
diff --git a/qubes/tests/__init__.py b/qubes/tests/__init__.py
index 5fa0c125..4f941c78 100644
--- a/qubes/tests/__init__.py
+++ b/qubes/tests/__init__.py
@@ -238,7 +238,7 @@ class QubesTestCase(unittest.TestCase):
         :param xml2: second element
         :type xml1: :py:class:`lxml.etree._Element`
         :type xml2: :py:class:`lxml.etree._Element`
-        '''
+        '''  # pylint: disable=invalid-name
 
         self.assertEqual(xml1.tag, xml2.tag)
         self.assertEqual(xml1.text, xml2.text)
diff --git a/qubes/tests/int/basic.py b/qubes/tests/int/basic.py
index 5d7593f9..33b8ce1e 100644
--- a/qubes/tests/int/basic.py
+++ b/qubes/tests/int/basic.py
@@ -26,6 +26,8 @@
 import multiprocessing
 import os
 import shutil
+import subprocess
+import tempfile
 
 import unittest
 import time
@@ -34,6 +36,8 @@ from qubes.qubes import QubesVmCollection, QubesException, system_path
 import qubes
 import qubes.vm.qubesvm
 import qubes.tests
+from qubes.qubes import QubesVmLabels
+
 
 class TC_00_Basic(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
     def setUp(self):
@@ -81,6 +85,12 @@ class TC_01_Properties(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
         newname = self.make_vm_name('newname')
 
         self.assertEqual(self.vm.name, self.vmname)
+        self.vm.write_firewall_conf({'allow': False, 'allowDns': False})
+        self.vm.autostart = True
+        self.addCleanup(os.system,
+                        'sudo systemctl -q disable qubes-vm@{}.service || :'.
+                        format(self.vmname))
+        pre_rename_firewall = self.vm.get_firewall_conf()
 
         #TODO: change to setting property when implemented
         self.vm.set_name(newname)
@@ -106,6 +116,16 @@ class TC_01_Properties(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
         self.assertFalse(os.path.exists(
             os.path.join(os.getenv("HOME"), ".local/share/applications",
                 self.vmname + "-firefox.desktop")))
+        self.assertEquals(pre_rename_firewall, self.vm.get_firewall_conf())
+        with self.assertNotRaises((QubesException, OSError)):
+            self.vm.write_firewall_conf({'allow': False})
+        self.assertTrue(self.vm.autostart)
+        self.assertTrue(os.path.exists(
+            '/etc/systemd/system/multi-user.target.wants/'
+            'qubes-vm@{}.service'.format(newname)))
+        self.assertFalse(os.path.exists(
+            '/etc/systemd/system/multi-user.target.wants/'
+            'qubes-vm@{}.service'.format(self.vmname)))
 
     def test_010_netvm(self):
         if self.qc.get_default_netvm() is None:
@@ -166,6 +186,664 @@ class TC_01_Properties(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
         with self.assertRaises(ValueError):
             self.vm.dispvm_netvm = self.vm
 
+    def test_030_clone(self):
+        testvm1 = self.qc.add_new_vm(
+            "QubesAppVm",
+            name=self.make_vm_name("vm"),
+            template=self.qc.get_default_template())
+        testvm1.create_on_disk(verbose=False)
+        testvm2 = self.qc.add_new_vm(testvm1.__class__.__name__,
+                                     name=self.make_vm_name("clone"),
+                                     template=testvm1.template,
+                                     )
+        testvm2.clone_attrs(src_vm=testvm1)
+        testvm2.clone_disk_files(src_vm=testvm1, verbose=False)
+
+        # qubes.xml reload
+        self.save_and_reload_db()
+        testvm1 = self.qc[testvm1.qid]
+        testvm2 = self.qc[testvm2.qid]
+
+        self.assertEquals(testvm1.label, testvm2.label)
+        self.assertEquals(testvm1.netvm, testvm2.netvm)
+        self.assertEquals(testvm1.uses_default_netvm,
+                          testvm2.uses_default_netvm)
+        self.assertEquals(testvm1.kernel, testvm2.kernel)
+        self.assertEquals(testvm1.kernelopts, testvm2.kernelopts)
+        self.assertEquals(testvm1.uses_default_kernel,
+                          testvm2.uses_default_kernel)
+        self.assertEquals(testvm1.uses_default_kernelopts,
+                          testvm2.uses_default_kernelopts)
+        self.assertEquals(testvm1.memory, testvm2.memory)
+        self.assertEquals(testvm1.maxmem, testvm2.maxmem)
+        self.assertEquals(testvm1.pcidevs, testvm2.pcidevs)
+        self.assertEquals(testvm1.include_in_backups,
+                          testvm2.include_in_backups)
+        self.assertEquals(testvm1.default_user, testvm2.default_user)
+        self.assertEquals(testvm1.services, testvm2.services)
+        self.assertEquals(testvm1.get_firewall_conf(),
+                          testvm2.get_firewall_conf())
+
+        # now some non-default values
+        testvm1.netvm = None
+        testvm1.uses_default_netvm = False
+        testvm1.label = QubesVmLabels['orange']
+        testvm1.memory = 512
+        firewall = testvm1.get_firewall_conf()
+        firewall['allowDns'] = False
+        firewall['allowYumProxy'] = False
+        firewall['rules'] = [{'address': '1.2.3.4',
+                              'netmask': 24,
+                              'proto': 'tcp',
+                              'portBegin': 22,
+                              'portEnd': 22,
+                              }]
+        testvm1.write_firewall_conf(firewall)
+
+        testvm3 = self.qc.add_new_vm(testvm1.__class__.__name__,
+                                     name=self.make_vm_name("clone2"),
+                                     template=testvm1.template,
+                                     )
+        testvm3.clone_attrs(src_vm=testvm1)
+        testvm3.clone_disk_files(src_vm=testvm1, verbose=False)
+
+        # qubes.xml reload
+        self.save_and_reload_db()
+        testvm1 = self.qc[testvm1.qid]
+        testvm3 = self.qc[testvm3.qid]
+
+        self.assertEquals(testvm1.label, testvm3.label)
+        self.assertEquals(testvm1.netvm, testvm3.netvm)
+        self.assertEquals(testvm1.uses_default_netvm,
+                          testvm3.uses_default_netvm)
+        self.assertEquals(testvm1.kernel, testvm3.kernel)
+        self.assertEquals(testvm1.kernelopts, testvm3.kernelopts)
+        self.assertEquals(testvm1.uses_default_kernel,
+                          testvm3.uses_default_kernel)
+        self.assertEquals(testvm1.uses_default_kernelopts,
+                          testvm3.uses_default_kernelopts)
+        self.assertEquals(testvm1.memory, testvm3.memory)
+        self.assertEquals(testvm1.maxmem, testvm3.maxmem)
+        self.assertEquals(testvm1.pcidevs, testvm3.pcidevs)
+        self.assertEquals(testvm1.include_in_backups,
+                          testvm3.include_in_backups)
+        self.assertEquals(testvm1.default_user, testvm3.default_user)
+        self.assertEquals(testvm1.services, testvm3.services)
+        self.assertEquals(testvm1.get_firewall_conf(),
+                          testvm3.get_firewall_conf())
+
+class TC_02_QvmPrefs(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
+    def setup_appvm(self):
+        self.testvm = self.qc.add_new_vm(
+            "QubesAppVm",
+            name=self.make_vm_name("vm"),
+            template=self.qc.get_default_template())
+        self.testvm.create_on_disk(verbose=False)
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+
+    def setup_hvm(self):
+        self.testvm = self.qc.add_new_vm(
+            "QubesHVm",
+            name=self.make_vm_name("hvm"))
+        self.testvm.create_on_disk(verbose=False)
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+
+    def pref_set(self, name, value, valid=True):
+        p = subprocess.Popen(
+            ['qvm-prefs', '-s', '--', self.testvm.name, name, value],
+            stdout=subprocess.PIPE,
+            stderr=subprocess.PIPE,
+        )
+        (stdout, stderr) = p.communicate()
+        if valid:
+            self.assertEquals(p.returncode, 0,
+                              "qvm-prefs -s .. '{}' '{}' failed: {}{}".format(
+                                  name, value, stdout, stderr
+                              ))
+        else:
+            self.assertNotEquals(p.returncode, 0,
+                                 "qvm-prefs should reject value '{}' for "
+                                 "property '{}'".format(value, name))
+
+    def pref_get(self, name):
+        p = subprocess.Popen(['qvm-prefs', '-g', self.testvm.name, name],
+                             stdout=subprocess.PIPE)
+        (stdout, _) = p.communicate()
+        self.assertEquals(p.returncode, 0)
+        return stdout.strip()
+
+    bool_test_values = [
+        ('true', 'True', True),
+        ('False', 'False', True),
+        ('0', 'False', True),
+        ('1', 'True', True),
+        ('invalid', '', False)
+    ]
+
+    def execute_tests(self, name, values):
+        """
+        Helper function, which executes tests for given property.
+        :param values: list of tuples (value, expected, valid),
+        where 'value' is what should be set and 'expected' is what should
+        qvm-prefs returns as a property value and 'valid' marks valid and
+        invalid values - if it's False, qvm-prefs should reject the value
+        :return: None
+        """
+        for (value, expected, valid) in values:
+            self.pref_set(name, value, valid)
+            if valid:
+                self.assertEquals(self.pref_get(name), expected)
+
+    def test_000_kernel(self):
+        self.setup_appvm()
+
+        default_kernel = self.qc.get_default_kernel()
+        self.execute_tests('kernel', [
+            ('default', default_kernel, True),
+            (default_kernel, default_kernel, True),
+            ('invalid', '', False),
+        ])
+
+    def test_001_include_in_backups(self):
+        self.setup_appvm()
+        self.execute_tests('include_in_backups', self.bool_test_values)
+
+    def test_002_qrexec_timeout(self):
+        self.setup_appvm()
+        self.execute_tests('qrexec_timeout', [
+            ('60', '60', True),
+            ('0', '0', True),
+            ('-10', '', False),
+            ('invalid', '', False)
+        ])
+
+    def test_003_internal(self):
+        self.setup_appvm()
+        self.execute_tests('include_in_backups', self.bool_test_values)
+
+    def test_004_label(self):
+        self.setup_appvm()
+        self.execute_tests('label', [
+            ('red', 'red', True),
+            ('blue', 'blue', True),
+            ('amber', '', False),
+        ])
+
+    def test_005_kernelopts(self):
+        self.setup_appvm()
+        self.execute_tests('kernelopts', [
+            ('option', 'option', True),
+            ('default', 'nopat', True),
+            ('', '', True),
+        ])
+
+    def test_006_template(self):
+        templates = [tpl for tpl in self.qc.values() if tpl.is_template()]
+        if not templates:
+            self.skip("No templates installed")
+        some_template = templates[0].name
+        self.setup_appvm()
+        self.execute_tests('template', [
+            (some_template, some_template, True),
+            ('invalid', '', False),
+        ])
+
+    def test_007_memory(self):
+        self.setup_appvm()
+        qh = qubes.qubes.QubesHost()
+        memory_total = qh.memory_total
+
+        self.execute_tests('memory', [
+            ('300', '300', True),
+            ('1500', '1500', True),
+            # TODO:
+            #('500M', '500', True),
+            #(str(self.testvm.maxmem+500), '', False),
+            (str(2*memory_total), '', False),
+        ])
+
+    def test_008_maxmem(self):
+        self.setup_appvm()
+        qh = qubes.qubes.QubesHost()
+        memory_total = qh.memory_total
+
+        self.execute_tests('memory', [
+            ('300', '300', True),
+            ('1500', '1500', True),
+            # TODO:
+            #('500M', '500', True),
+            #(str(self.testvm.memory-50), '', False),
+            (str(2*memory_total), '', False),
+        ])
+
+    def test_009_autostart(self):
+        self.setup_appvm()
+        self.execute_tests('autostart', self.bool_test_values)
+
+    def test_010_pci_strictreset(self):
+        self.setup_appvm()
+        self.execute_tests('pci_strictreset', self.bool_test_values)
+
+    def test_011_dispvm_netvm(self):
+        self.setup_appvm()
+
+        default_netvm = self.qc.get_default_netvm().name
+        netvms = [tpl for tpl in self.qc.values() if tpl.is_netvm()]
+        if not netvms:
+            self.skip("No netvms installed")
+        some_netvm = netvms[0].name
+        if some_netvm == default_netvm:
+            if len(netvms) <= 1:
+                self.skip("At least two NetVM/ProxyVM required")
+            some_netvm = netvms[1].name
+
+        self.execute_tests('dispvm_netvm', [
+            (some_netvm, some_netvm, True),
+            (default_netvm, default_netvm, True),
+            ('default', default_netvm, True),
+            ('none', '', True),
+            (self.testvm.name, '', False),
+            ('invalid', '', False)
+        ])
+
+    def test_012_mac(self):
+        self.setup_appvm()
+        default_mac = self.testvm.mac
+
+        self.execute_tests('mac', [
+            ('00:11:22:33:44:55', '00:11:22:33:44:55', True),
+            ('auto', default_mac, True),
+            # TODO:
+            #('00:11:22:33:44:55:66', '', False),
+            ('invalid', '', False),
+        ])
+
+    def test_013_default_user(self):
+        self.setup_appvm()
+        self.execute_tests('default_user', [
+            ('someuser', self.testvm.template.default_user, True)
+            # TODO: tests for standalone VMs
+        ])
+
+    def test_014_pcidevs(self):
+        self.setup_appvm()
+        self.execute_tests('pcidevs', [
+            ('[]', '[]', True),
+            ('[ "00:00.0" ]', "['00:00.0']", True),
+            ('invalid', '', False),
+            ('[invalid]', '', False),
+            # TODO:
+            #('["12:12.0"]', '', False)
+        ])
+
+    def test_015_name(self):
+        self.setup_appvm()
+        self.execute_tests('name', [
+            ('invalid!@#name', '', False),
+            # TODO: duplicate name test - would fail for now...
+        ])
+        newname = self.make_vm_name('newname')
+        self.pref_set('name', newname, True)
+        self.qc.lock_db_for_reading()
+        self.qc.load()
+        self.qc.unlock_db()
+        self.testvm = self.qc.get_vm_by_name(newname)
+        self.assertEquals(self.pref_get('name'), newname)
+
+    def test_016_vcpus(self):
+        self.setup_appvm()
+        self.execute_tests('vcpus', [
+            ('1', '1', True),
+            ('100', '', False),
+            ('-1', '', False),
+            ('invalid', '', False),
+        ])
+
+    def test_017_debug(self):
+        self.setup_appvm()
+        self.execute_tests('debug', [
+            ('on', 'True', True),
+            ('off', 'False', True),
+            ('true', 'True', True),
+            ('0', 'False', True),
+            ('invalid', '', False)
+        ])
+
+    def test_018_netvm(self):
+        self.setup_appvm()
+
+        default_netvm = self.qc.get_default_netvm().name
+        netvms = [tpl for tpl in self.qc.values() if tpl.is_netvm()]
+        if not netvms:
+            self.skip("No netvms installed")
+        some_netvm = netvms[0].name
+        if some_netvm == default_netvm:
+            if len(netvms) <= 1:
+                self.skip("At least two NetVM/ProxyVM required")
+            some_netvm = netvms[1].name
+
+        self.execute_tests('netvm', [
+            (some_netvm, some_netvm, True),
+            (default_netvm, default_netvm, True),
+            ('default', default_netvm, True),
+            ('none', '', True),
+            (self.testvm.name, '', False),
+            ('invalid', '', False)
+        ])
+
+    def test_019_guiagent_installed(self):
+        self.setup_hvm()
+        self.execute_tests('guiagent_installed', self.bool_test_values)
+
+    def test_020_qrexec_installed(self):
+        self.setup_hvm()
+        self.execute_tests('qrexec_installed', self.bool_test_values)
+
+    def test_021_seamless_gui_mode(self):
+        self.setup_hvm()
+        # should reject seamless mode without gui agent
+        self.execute_tests('seamless_gui_mode', [
+            ('True', '', False),
+            ('False', 'False', True),
+        ])
+        self.execute_tests('guiagent_installed', [('True', 'True', True)])
+        self.execute_tests('seamless_gui_mode', self.bool_test_values)
+
+    def test_022_drive(self):
+        self.setup_hvm()
+        self.execute_tests('drive', [
+            ('hd:dom0:/tmp/drive.img', 'hd:dom0:/tmp/drive.img', True),
+            ('hd:/tmp/drive.img', 'hd:dom0:/tmp/drive.img', True),
+            ('cdrom:dom0:/tmp/drive.img', 'cdrom:dom0:/tmp/drive.img', True),
+            ('cdrom:/tmp/drive.img', 'cdrom:dom0:/tmp/drive.img', True),
+            ('/tmp/drive.img', 'cdrom:dom0:/tmp/drive.img', True),
+            ('hd:drive.img', '', False),
+            ('drive.img', '', False),
+        ])
+
+    def test_023_timezone(self):
+        self.setup_hvm()
+        self.execute_tests('timezone', [
+            ('localtime', 'localtime', True),
+            ('0', '0', True),
+            ('3600', '3600', True),
+            ('-7200', '-7200', True),
+            ('invalid', '', False),
+        ])
+
+    def test_024_pv_reject_hvm_props(self):
+        self.setup_appvm()
+        self.execute_tests('guiagent_installed', [('False', '', False)])
+        self.execute_tests('qrexec_installed', [('False', '', False)])
+        self.execute_tests('drive', [('/tmp/drive.img', '', False)])
+        self.execute_tests('timezone', [('localtime', '', False)])
+
+    def test_025_hvm_reject_pv_props(self):
+        self.setup_hvm()
+        self.execute_tests('kernel', [('default', '', False)])
+        self.execute_tests('kernelopts', [('default', '', False)])
+
+class TC_03_QvmRevertTemplateChanges(qubes.tests.SystemTestsMixin,
+                                     qubes.tests.QubesTestCase):
+
+    def setup_pv_template(self):
+        self.test_template = self.qc.add_new_vm(
+            "QubesTemplateVm",
+            name=self.make_vm_name("pv-clone"),
+        )
+        self.test_template.clone_attrs(src_vm=self.qc.get_default_template())
+        self.test_template.clone_disk_files(
+            src_vm=self.qc.get_default_template(),
+            verbose=False)
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+
+    def setup_hvm_template(self):
+        self.test_template = self.qc.add_new_vm(
+            "QubesTemplateHVm",
+            name=self.make_vm_name("hvm"),
+        )
+        self.test_template.create_on_disk(verbose=False)
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+
+    def get_rootimg_checksum(self):
+        p = subprocess.Popen(['sha1sum', self.test_template.root_img],
+                             stdout=subprocess.PIPE)
+        return p.communicate()[0]
+
+    def _do_test(self):
+        checksum_before = self.get_rootimg_checksum()
+        self.test_template.start(verbose=False)
+        self.shutdown_and_wait(self.test_template)
+        checksum_changed = self.get_rootimg_checksum()
+        if checksum_before == checksum_changed:
+            self.log.warning("template not modified, test result will be "
+                             "unreliable")
+        with self.assertNotRaises(subprocess.CalledProcessError):
+            subprocess.check_call(['sudo', 'qvm-revert-template-changes',
+                                   '--force', self.test_template.name])
+
+        checksum_after = self.get_rootimg_checksum()
+        self.assertEquals(checksum_before, checksum_after)
+
+    def test_000_revert_pv(self):
+        """
+        Test qvm-revert-template-changes for PV template
+        """
+        self.setup_pv_template()
+        self._do_test()
+
+    def test_000_revert_hvm(self):
+        """
+        Test qvm-revert-template-changes for HVM template
+        """
+        # TODO: have some system there, so the root.img will get modified
+        self.setup_hvm_template()
+        self._do_test()
+
+class TC_04_DispVM(qubes.tests.SystemTestsMixin,
+                   qubes.tests.QubesTestCase):
+
+    @staticmethod
+    def get_dispvm_template_name():
+        vmdir = os.readlink('/var/lib/qubes/dvmdata/vmdir')
+        return os.path.basename(vmdir)
+
+    def test_000_firewall_propagation(self):
+        """
+        Check firewall propagation VM->DispVM, when VM have some firewall rules
+        """
+
+        # FIXME: currently qubes.xml doesn't contain this information...
+        dispvm_template_name = self.get_dispvm_template_name()
+        dispvm_template = self.qc.get_vm_by_name(dispvm_template_name)
+
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     name=self.make_vm_name('vm1'),
+                                     template=self.qc.get_default_template())
+        testvm1.create_on_disk(verbose=False)
+        firewall = testvm1.get_firewall_conf()
+        firewall['allowDns'] = False
+        firewall['allowYumProxy'] = False
+        firewall['rules'] = [{'address': '1.2.3.4',
+                              'netmask': 24,
+                              'proto': 'tcp',
+                              'portBegin': 22,
+                              'portEnd': 22,
+                              }]
+        testvm1.write_firewall_conf(firewall)
+        self.qc.save()
+        self.qc.unlock_db()
+
+        testvm1.start()
+
+        p = testvm1.run("qvm-run --dispvm 'qubesdb-read /name; echo ERROR;"
+                        " read x'",
+                        passio_popen=True)
+
+        dispvm_name = p.stdout.readline().strip()
+        self.qc.lock_db_for_reading()
+        self.qc.load()
+        self.qc.unlock_db()
+        dispvm = self.qc.get_vm_by_name(dispvm_name)
+        self.assertIsNotNone(dispvm, "DispVM {} not found in qubes.xml".format(
+            dispvm_name))
+        # check if firewall was propagated to the DispVM
+        self.assertEquals(testvm1.get_firewall_conf(),
+                          dispvm.get_firewall_conf())
+        # and only there (#1608)
+        self.assertNotEquals(dispvm_template.get_firewall_conf(),
+                             dispvm.get_firewall_conf())
+        # then modify some rule
+        firewall = dispvm.get_firewall_conf()
+        firewall['rules'] = [{'address': '4.3.2.1',
+                              'netmask': 24,
+                              'proto': 'tcp',
+                              'portBegin': 22,
+                              'portEnd': 22,
+                              }]
+        dispvm.write_firewall_conf(firewall)
+        # and check again if wasn't saved anywhere else (#1608)
+        self.assertNotEquals(dispvm_template.get_firewall_conf(),
+                             dispvm.get_firewall_conf())
+        self.assertNotEquals(testvm1.get_firewall_conf(),
+                             dispvm.get_firewall_conf())
+        p.stdin.write('\n')
+        p.wait()
+
+    def test_001_firewall_propagation(self):
+        """
+        Check firewall propagation VM->DispVM, when VM have no firewall rules
+        """
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     name=self.make_vm_name('vm1'),
+                                     template=self.qc.get_default_template())
+        testvm1.create_on_disk(verbose=False)
+        self.qc.save()
+        self.qc.unlock_db()
+
+        # FIXME: currently qubes.xml doesn't contain this information...
+        dispvm_template_name = self.get_dispvm_template_name()
+        dispvm_template = self.qc.get_vm_by_name(dispvm_template_name)
+        original_firewall = None
+        if os.path.exists(dispvm_template.firewall_conf):
+            original_firewall = tempfile.TemporaryFile()
+            with open(dispvm_template.firewall_conf) as f:
+                original_firewall.write(f.read())
+        try:
+
+            firewall = dispvm_template.get_firewall_conf()
+            firewall['allowDns'] = False
+            firewall['allowYumProxy'] = False
+            firewall['rules'] = [{'address': '1.2.3.4',
+                                  'netmask': 24,
+                                  'proto': 'tcp',
+                                  'portBegin': 22,
+                                  'portEnd': 22,
+                                  }]
+            dispvm_template.write_firewall_conf(firewall)
+
+            testvm1.start()
+
+            p = testvm1.run("qvm-run --dispvm 'qubesdb-read /name; echo ERROR;"
+                            " read x'",
+                            passio_popen=True)
+
+            dispvm_name = p.stdout.readline().strip()
+            self.qc.lock_db_for_reading()
+            self.qc.load()
+            self.qc.unlock_db()
+            dispvm = self.qc.get_vm_by_name(dispvm_name)
+            self.assertIsNotNone(dispvm, "DispVM {} not found in qubes.xml".format(
+                dispvm_name))
+            # check if firewall was propagated to the DispVM from the right VM
+            self.assertEquals(testvm1.get_firewall_conf(),
+                              dispvm.get_firewall_conf())
+            # and only there (#1608)
+            self.assertNotEquals(dispvm_template.get_firewall_conf(),
+                                 dispvm.get_firewall_conf())
+            # then modify some rule
+            firewall = dispvm.get_firewall_conf()
+            firewall['rules'] = [{'address': '4.3.2.1',
+                                  'netmask': 24,
+                                  'proto': 'tcp',
+                                  'portBegin': 22,
+                                  'portEnd': 22,
+                                  }]
+            dispvm.write_firewall_conf(firewall)
+            # and check again if wasn't saved anywhere else (#1608)
+            self.assertNotEquals(dispvm_template.get_firewall_conf(),
+                                 dispvm.get_firewall_conf())
+            self.assertNotEquals(testvm1.get_firewall_conf(),
+                                 dispvm.get_firewall_conf())
+            p.stdin.write('\n')
+            p.wait()
+        finally:
+            if original_firewall:
+                original_firewall.seek(0)
+                with open(dispvm_template.firewall_conf, 'w') as f:
+                    f.write(original_firewall.read())
+                original_firewall.close()
+            else:
+                os.unlink(dispvm_template.firewall_conf)
+
+    def test_002_cleanup(self):
+        self.qc.unlock_db()
+        p = subprocess.Popen(['/usr/lib/qubes/qfile-daemon-dvm',
+                              'qubes.VMShell', 'dom0', 'DEFAULT'],
+                             stdin=subprocess.PIPE,
+                             stdout=subprocess.PIPE,
+                             stderr=open(os.devnull, 'w'))
+        (stdout, _) = p.communicate(input="echo test; qubesdb-read /name; "
+                                          "echo ERROR\n")
+        self.assertEquals(p.returncode, 0)
+        lines = stdout.splitlines()
+        self.assertEqual(lines[0], "test")
+        dispvm_name = lines[1]
+        self.qc.lock_db_for_reading()
+        self.qc.load()
+        self.qc.unlock_db()
+        dispvm = self.qc.get_vm_by_name(dispvm_name)
+        self.assertIsNone(dispvm, "DispVM {} still exists in qubes.xml".format(
+            dispvm_name))
+
+    def test_003_cleanup_destroyed(self):
+        """
+        Check if DispVM is properly removed even if it terminated itself (#1660)
+        :return:
+        """
+        self.qc.unlock_db()
+        p = subprocess.Popen(['/usr/lib/qubes/qfile-daemon-dvm',
+                              'qubes.VMShell', 'dom0', 'DEFAULT'],
+                             stdin=subprocess.PIPE,
+                             stdout=subprocess.PIPE,
+                             stderr=open(os.devnull, 'w'))
+        p.stdin.write("qubesdb-read /name\n")
+        p.stdin.write("echo ERROR\n")
+        p.stdin.write("poweroff\n")
+        # do not close p.stdin on purpose - wait to automatic disconnect when
+        #  domain is destroyed
+        timeout = 30
+        while timeout > 0:
+            if p.poll():
+                break
+            time.sleep(1)
+            timeout -= 1
+        # includes check for None - timeout
+        self.assertEquals(p.returncode, 0)
+        lines = p.stdout.read().splitlines()
+        dispvm_name = lines[0]
+        self.assertNotEquals(dispvm_name, "ERROR")
+        self.qc.lock_db_for_reading()
+        self.qc.load()
+        self.qc.unlock_db()
+        dispvm = self.qc.get_vm_by_name(dispvm_name)
+        self.assertIsNone(dispvm, "DispVM {} still exists in qubes.xml".format(
+            dispvm_name))
+
 
 
 # vim: ts=4 sw=4 et
diff --git a/qubes/tools/qmemmand.py b/qubes/tools/qmemmand.py
index eba50644..1f354425 100644
--- a/qubes/tools/qmemmand.py
+++ b/qubes/tools/qmemmand.py
@@ -42,6 +42,15 @@ LOG_PATH = '/var/log/qubes/qmemman.log'
 
 system_state = qubes.qmemman.SystemState()
 global_lock = thread.allocate_lock()
+# If XS_Watcher will
+# handle meminfo event before @introduceDomain, it will use
+# incomplete domain list for that and may redistribute memory
+# allocated to some VM, but not yet used (see #1389).
+# To fix that, system_state should be updated (refresh domain
+# list) before processing other changes, every time some process requested
+# memory for a new VM, before releasing the lock. Then XS_Watcher will check
+# this flag before processing other event.
+force_refresh_domain_list = False
 
 def only_in_first_list(l1, l2):
     ret = []
@@ -65,41 +74,65 @@ class XS_Watcher(object):
         self.log.debug('XS_Watcher()')
 
         self.handle = xen.lowlevel.xs.xs()
-        self.handle.watch('@introduceDomain', WatchType(XS_Watcher.domain_list_changed, None))
-        self.handle.watch('@releaseDomain', WatchType(XS_Watcher.domain_list_changed, None))
+        self.handle.watch('@introduceDomain', WatchType(
+            XS_Watcher.domain_list_changed, False))
+        self.handle.watch('@releaseDomain', WatchType(
+            XS_Watcher.domain_list_changed, False))
         self.watch_token_dict = {}
 
+    def domain_list_changed(self, refresh_only=False):
+        """
+        Check if any domain was created/destroyed. If it was, update
+        appropriate list. Then redistribute memory.
 
-    def domain_list_changed(self, param):
-        self.log.debug('domain_list_changed(param={!r})'.format(param))
+        :param refresh_only If True, only refresh domain list, do not
+        redistribute memory. In this mode, caller must already hold
+        global_lock.
+        """
+        self.log.debug('domain_list_changed(only_refresh={!r})'.format(
+            refresh_only))
 
-        curr = self.handle.ls('', '/local/domain')
-        self.log.debug('curr={!r}'.format(curr))
+        got_lock = False
+        if not refresh_only:
+            self.log.debug('acquiring global_lock')
+            global_lock.acquire()
+            got_lock = True
+            self.log.debug('global_lock acquired')
+        try:
+            curr = self.handle.ls('', '/local/domain')
+            if curr is None:
+                return
 
-        if curr == None:
-            return
+            # check if domain is really there, it may happen that some empty
+            # directories are left in xenstore
+            curr = filter(
+                lambda x:
+                self.handle.read('',
+                                 '/local/domain/{}/domid'.format(x)
+                                 ) is not None,
+                curr
+            )
+            self.log.debug('curr={!r}'.format(curr))
 
-        self.log.debug('acquiring global_lock')
-        global_lock.acquire()
-        self.log.debug('global_lock acquired')
+            for i in only_in_first_list(curr, self.watch_token_dict.keys()):
+                # new domain has been created
+                watch = WatchType(XS_Watcher.meminfo_changed, i)
+                self.watch_token_dict[i] = watch
+                self.handle.watch(get_domain_meminfo_key(i), watch)
+                system_state.add_domain(i)
 
-        for i in only_in_first_list(curr, self.watch_token_dict.keys()):
-#new domain has been created
-            watch = WatchType(XS_Watcher.meminfo_changed, i)
-            self.watch_token_dict[i] = watch
-            self.handle.watch(get_domain_meminfo_key(i), watch)
-            system_state.add_domain(i)
+            for i in only_in_first_list(self.watch_token_dict.keys(), curr):
+                # domain destroyed
+                self.handle.unwatch(get_domain_meminfo_key(i), self.watch_token_dict[i])
+                self.watch_token_dict.pop(i)
+                system_state.del_domain(i)
+        finally:
+            if got_lock:
+                global_lock.release()
+                self.log.debug('global_lock released')
 
-        for i in only_in_first_list(self.watch_token_dict.keys(), curr):
-#domain destroyed
-            self.handle.unwatch(get_domain_meminfo_key(i), self.watch_token_dict[i])
-            self.watch_token_dict.pop(i)
-            system_state.del_domain(i)
-
-        global_lock.release()
-        self.log.debug('global_lock released')
-
-        system_state.do_balance()
+        if not refresh_only:
+            system_state.do_balance()
 
 
     def meminfo_changed(self, domain_id):
@@ -112,6 +145,8 @@ class XS_Watcher(object):
         self.log.debug('acquiring global_lock')
         global_lock.acquire()
         self.log.debug('global_lock acquired')
+        if force_refresh_domain_list:
+            self.domain_list_changed(refresh_only=True)
 
         system_state.refresh_meminfo(domain_id, untrusted_meminfo_key)
 
@@ -148,6 +183,8 @@ class QMemmanReqHandler(SocketServer.BaseRequestHandler):
             if len(self.data) == 0:
                 self.log.info('EOF')
                 if got_lock:
+                    global force_refresh_domain_list
+                    force_refresh_domain_list = True
                     global_lock.release()
                     self.log.debug('global_lock released')
                 return
diff --git a/qubes/tools/qvm_create.py b/qubes/tools/qvm_create.py
index 269fcf8d..5cd017f3 100644
--- a/qubes/tools/qvm_create.py
+++ b/qubes/tools/qvm_create.py
@@ -46,6 +46,10 @@ parser.add_argument('--property', '--prop', '-p',
     action=qubes.tools.PropertyAction,
     help='set domain\'s property, like "internal", "memory" or "vcpus"')
 
+parser.add_argument('--pool-name', '--pool', '-P',
+    action=qubes.tools.SinglePropertyAction,
+    help='specify the storage pool to use')
+
 parser.add_argument('--template', '-t',
     action=qubes.tools.SinglePropertyAction,
     help='specify the TemplateVM to use')
diff --git a/qubes/tools/qvm_start.py b/qubes/tools/qvm_start.py
index 9cfb64f0..9ba0e34e 100644
--- a/qubes/tools/qvm_start.py
+++ b/qubes/tools/qvm_start.py
@@ -89,6 +89,10 @@ parser.add_argument('--no-start-guid',
     action='store_false', dest='start_guid', default=True,
     help='do not start the gui daemon (ignored)')
 
+parser.add_argument('--skip-if-running',
+    action='store_true', default=False,
+    help='Do not fail if the qube is already runnning')
+
 #parser.add_option ("--tray", action="store_true", dest="tray", default=False,
 #                   help="Use tray notifications instead of stdout" )
 
@@ -108,6 +112,9 @@ def main(args=None):
 
     vm = args.vm
 
+    if args.skip_if_running and vm.is_running():
+        return
+
     if args.drive is not None:
         if 'drive' not in (prop.__name__ for prop in vm.property_list()):
             parser.error(
diff --git a/qubes/utils.py b/qubes/utils.py
index eef40e3c..8ff1d069 100644
--- a/qubes/utils.py
+++ b/qubes/utils.py
@@ -57,8 +57,8 @@ def get_timezone():
             return None
         if tz_info.st_nlink > 1:
             p = subprocess.Popen(['find', '/usr/share/zoneinfo',
-                                   '-inum', str(tz_info.st_ino)],
-                                  stdout=subprocess.PIPE)
+                '-inum', str(tz_info.st_ino), '-print', '-quit'],
+                stdout=subprocess.PIPE)
             tz_path = p.communicate()[0].strip()
             return tz_path.replace('/usr/share/zoneinfo/', '')
     return None
@@ -104,3 +104,9 @@ def parse_size(size):
             return int(size)*multiplier
 
     raise qubes.exc.QubesException("Invalid size: {0}.".format(size))
+
+def urandom(size):
+    rand = os.urandom(size)
+    if rand is None:
+        raise IOError('failed to read urandom')
+    return hashlib.sha512(rand).digest()
diff --git a/qubes/vm/__init__.py b/qubes/vm/__init__.py
index 1ba16fb4..ce01e109 100644
--- a/qubes/vm/__init__.py
+++ b/qubes/vm/__init__.py
@@ -341,8 +341,10 @@ class BaseVM(qubes.PropertyHolder):
             args['netmask'] = self.netmask
             args['netdev'] = lxml.etree.tostring(
                 self.lvxml_net_dev(self.ip, self.mac, self.netvm))
-            args['disable_network1'] = ''
-            args['disable_network2'] = ''
+            args['network_begin'] = ''
+            args['network_end'] = ''
+            args['no_network_begin'] = '<!--'
+            args['no_network_end'] = '-->'
         else:
             args['ip'] = ''
             args['mac'] = ''
@@ -351,8 +353,10 @@ class BaseVM(qubes.PropertyHolder):
             args['dns2'] = ''
             args['netmask'] = ''
             args['netdev'] = ''
-            args['disable_network1'] = '<!--'
-            args['disable_network2'] = '-->'
+            args['network_begin'] = '<!--'
+            args['network_end'] = '-->'
+            args['no_network_begin'] = ''
+            args['no_network_end'] = ''
 
         args.update(self.storage.get_config_params())
 
diff --git a/qubes/vm/mix/net.py b/qubes/vm/mix/net.py
index 7327543d..d05c37c4 100644
--- a/qubes/vm/mix/net.py
+++ b/qubes/vm/mix/net.py
@@ -254,6 +254,7 @@ class NetVMMixin(object):
     @qubes.events.handler('property-set:netvm')
     def on_property_set_netvm(self, event, name, new_netvm, old_netvm=None):
         # pylint: disable=unused-argument
+        # TODO offline_mode
         if self.is_running() and new_netvm is not None \
                 and not new_netvm.is_running():
             raise qubes.exc.QubesVMNotStartedError(new_netvm,
diff --git a/qubes/vm/qubesvm.py b/qubes/vm/qubesvm.py
index 1c776221..52ed1250 100644
--- a/qubes/vm/qubesvm.py
+++ b/qubes/vm/qubesvm.py
@@ -75,6 +75,9 @@ def _setter_name(self, prop, value):
     if len(value) > 31:
         raise ValueError('{} value must be shorter than 32 characters'.format(
             prop.__name__))
+
+    # this regexp does not contain '+'; if it had it, we should specifically
+    # disallow 'lost+found' #1440
     if re.match(r"^[a-zA-Z][a-zA-Z0-9_-]*$", value) is None:
         raise ValueError('{} value contains illegal characters'.format(
             prop.__name__))
@@ -101,7 +104,7 @@ def _setter_kernel(self, prop, value):
     if not os.path.exists(dirname):
         raise qubes.exc.QubesPropertyValueError(self, prop, value,
             'Kernel {!r} not installed'.format(value))
-    for filename in ('vmlinuz', 'modules.img'):
+    for filename in ('vmlinuz', 'initramfs'):
         if not os.path.exists(os.path.join(dirname, filename)):
             raise qubes.exc.QubesPropertyValueError(
                 'Kernel {!r} not properly installed: missing {!r} file'.format(
@@ -119,10 +122,6 @@ def _setter_label(self, prop, value):
     return self.app.get_label(value)
 
 
-def _default_conf_file(self, name=None):
-    return (name or self.name) + '.conf'
-
-
 class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
     '''Base functionality of Qubes VM shared between all VMs.'''
 
@@ -162,11 +161,6 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         ls_width=36,
         doc='UUID from libvirt.')
 
-    conf_file = qubes.property('conf_file', type=str,
-        default=_default_conf_file,
-        saver=(lambda self, prop, value: self.relative_path(value)),
-        doc='XXX libvirt config file?')
-
     # XXX this should be part of qubes.xml
     firewall_conf = qubes.property('firewall_conf', type=str,
         default='firewall.xml')
@@ -196,6 +190,13 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         ls_width=2,
         doc='FIXME')
 
+    pool_name = qubes.property('pool_name',
+        default='default',
+        doc='storage pool for this qube devices')
+
+    dir_path = property((lambda self: self.storage.vmdir),
+        doc='Root directory for files related to this domain')
+
     # XXX swallowed uses_default_kernel
     # XXX not applicable to HVM?
     kernel = qubes.property('kernel', type=str,
@@ -209,6 +210,7 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
     kernelopts = qubes.property('kernelopts', type=str, load_stage=4,
         default=(lambda self: qubes.config.defaults['kernelopts_pcidevs'] \
             if len(self.devices['pci']) > 0 \
+            else self.template.kernelopts if hasattr(self, 'template') \
             else qubes.config.defaults['kernelopts']),
         ls_width=30,
         doc='Kernel command line passed to domain.')
@@ -291,7 +293,15 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
         if self.libvirt_domain is None:
             return -1
-        return self.libvirt_domain.ID()
+        try:
+            return self.libvirt_domain.ID()
+        except libvirt.libvirtError as e:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
+                return -1
+            else:
+                self.log.exception('libvirt error code: {!r}'.format(
+                    e.get_error_code()))
+                raise
 
 
     @property
@@ -327,16 +337,6 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         return self._qdb_connection
 
 
-    def _get_dir_path(self, name=None):
-        return os.path.join(
-            qubes.config.system_path['qubes_base_dir'],
-            self.dir_path_prefix,
-            name if name is not None else self.name)
-
-    dir_path = property(_get_dir_path,
-        doc='Root directory for files related to this domain')
-
-
     # XXX this should go to to AppVM?
     @property
     def private_img(self):
@@ -367,14 +367,13 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
 
     @property
-    def uses_custom_config(self):
-        '''True if this machine has config in non-standard place.'''
-        return not self.property_is_default('conf_file')
-#       return self.conf_file != self.storage.abspath(self.name + '.conf')
+    def icon_path(self):
+        return os.path.join(self.dir_path, 'icon.png')
+
 
     @property
-    def icon_path(self):
-        return os.path.join(self.dir_path, "icon.png")
+    def conf_file(self):
+        return os.path.join(self.dir_path, self.name + '.conf')
 
 
     # XXX I don't know what to do with these; probably should be isinstance(...)
@@ -444,8 +443,15 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
             # Always set if meminfo-writer should be active or not
             self.services['meminfo-writer'] = True
 
+        if xml is None:
+            # new qube, disable updates check if requested for new qubes
+            # TODO: when features (#1637) are done, migrate to plugin
+            if not self.app.check_updates_vm:
+                self.services['qubes-update-check'] = False
+
         # Initialize VM image storage class
-        self.storage = qubes.storage.get_storage(self)
+        self.storage = qubes.storage.get_pool(
+            self.pool_name, self).get_storage(self)
 
         # fire hooks
         if xml is None:
@@ -483,11 +489,16 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
     @qubes.events.handler('property-pre-set:name')
     def on_property_pre_set_name(self, event, name, newvalue, oldvalue=None):
         # pylint: disable=unused-argument
+
         # TODO not self.is_stopped() would be more appropriate
         if self.is_running():
             raise qubes.exc.QubesVMNotHaltedError(
                 'Cannot change name of running domain {!r}'.format(oldvalue))
 
+        if self.autostart:
+            subprocess.check_call(['sudo', 'systemctl', '-q', 'disable',
+                'qubes-vm@{}.service'.format(oldvalue)])
+
 
     @qubes.events.handler('property-set:name')
     def on_property_set_name(self, event, name, new_name, old_name=None):
@@ -517,6 +528,9 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
         self._update_libvirt_domain()
 
+        if self.autostart:
+            self.autostart = self.autostart
+
 
     @qubes.events.handler('property-pre-set:autostart')
     def on_property_pre_set_autostart(self, event, prop, name, value,
@@ -607,71 +621,72 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         self.storage.prepare_for_vm_startup()
         self._update_libvirt_domain()
 
-        if mem_required is None:
-            mem_required = int(self.memory) * 1024 * 1024
-        if qmemman_present:
-            qmemman_client = qubes.qmemman.client.QMemmanClient()
-            try:
-                got_memory = qmemman_client.request_memory(mem_required)
-            except IOError as e:
-                raise IOError('Failed to connect to qmemman: {!s}'.format(e))
-            if not got_memory:
-                qmemman_client.close()
-                raise qubes.exc.QubesMemoryError(self)
+        qmemman_client = self.request_memory(mem_required)
 
         # Bind pci devices to pciback driver
         for pci in self.devices['pci']:
-            node = self.app.vmm.libvirt_conn.nodeDeviceLookupByName(
-                'pci_0000_' + pci.replace(':', '_').replace('.', '_'))
+            try:
+                node = self.app.vmm.libvirt_conn.nodeDeviceLookupByName(
+                    'pci_0000_' + pci.replace(':', '_').replace('.', '_'))
+            except libvirt.libvirtError as e:
+                if e.get_error_code() == libvirt.VIR_ERR_NO_NODE_DEVICE:
+                    raise qubes.exc.QubesException(
+                        'PCI device {!r} does not exist (domain {!r})'.format(
+                            pci, self.name))
+
             try:
                 node.dettach()
-            except libvirt.libvirtError:
-                if self.app.vmm.libvirt_conn.virConnGetLastError()[0] == \
-                        libvirt.VIR_ERR_INTERNAL_ERROR:
-                    # already detached
+            except libvirt.libvirtError as e:
+                if e.get_error_code() == libvirt.VIR_ERR_INTERNAL_ERROR:
+                    # allreaddy dettached
                     pass
                 else:
                     raise
 
         self.libvirt_domain.createWithFlags(libvirt.VIR_DOMAIN_START_PAUSED)
 
-        if preparing_dvm:
-            self.services['qubes-dvm'] = True
+        try:
+            if preparing_dvm:
+                self.services['qubes-dvm'] = True
 
-        self.log.info('Setting Qubes DB info for the VM')
-        self.start_qubesdb()
-        self.create_qdb_entries()
+            self.log.info('Setting Qubes DB info for the VM')
+            self.start_qubesdb()
+            self.create_qdb_entries()
 
-        self.log.info('Updating firewall rules')
+            self.log.info('Updating firewall rules')
 
-        for vm in self.app.domains:
-            if vm.is_proxyvm() and vm.is_running():
-                vm.write_iptables_xenstore_entry()
+            for vm in self.app.domains:
+                if vm.is_proxyvm() and vm.is_running():
+                    vm.write_iptables_xenstore_entry()
 
-        self.log.warning('Activating the {} VM'.format(self.name))
-        self.libvirt_domain.resume()
+            self.log.warning('Activating the {} VM'.format(self.name))
+            self.libvirt_domain.resume()
 
-        # close() is not really needed, because the descriptor is close-on-exec
-        # anyway, the reason to postpone close() is that possibly xl is not done
-        # constructing the domain after its main process exits
-        # so we close() when we know the domain is up
-        # the successful unpause is some indicator of it
-        if qmemman_present:
-            qmemman_client.close()
+            # close() is not really needed, because the descriptor is close-on-exec
+            # anyway, the reason to postpone close() is that possibly xl is not done
+            # constructing the domain after its main process exits
+            # so we close() when we know the domain is up
+            # the successful unpause is some indicator of it
+            if qmemman_client:
+                qmemman_client.close()
 
-#       if self._start_guid_first and start_guid and not preparing_dvm \
-#               and os.path.exists('/var/run/shm.id'):
-#           self.start_guid()
+#           if self._start_guid_first and start_guid and not preparing_dvm \
+#                   and os.path.exists('/var/run/shm.id'):
+#               self.start_guid()
 
-        if not preparing_dvm:
-            self.start_qrexec_daemon()
+            if not preparing_dvm:
+                self.start_qrexec_daemon()
 
-        if start_guid and not preparing_dvm \
-                and os.path.exists('/var/run/shm.id'):
-            self.start_guid()
+            if start_guid and not preparing_dvm \
+                    and os.path.exists('/var/run/shm.id'):
+                self.start_guid()
 
-        self.fire_event('domain-started',
-            preparing_dvm=preparing_dvm, start_guid=start_guid)
+            self.fire_event('domain-started',
+                preparing_dvm=preparing_dvm, start_guid=start_guid)
+
+        except: # pylint: disable=bare-except
+            self.force_shutdown()
+            raise
 
 
     def shutdown(self, force=False):
@@ -685,6 +700,19 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
             raise qubes.exc.QubesVMNotStartedError(self)
 
         self.fire_event_pre('pre-domain-shutdown', force=force)
+
+        # try to gracefully detach PCI devices before shutdown, to mitigate
+        # timeouts on forcible detach at domain destroy; if that fails, too bad
+        for pci in self.devices['pci']:
+            try:
+                self.libvirt_domain.detachDevice(self.lvxml_pci_dev(pci))
+            except libvirt.libvirtError as e:
+                self.log.warning(
+                    'error while gracefully detaching PCI device ({!r}) during'
+                    ' shutdown of {!r}; error code: {!r}; continuing'
+                    ' anyway'.format(pci, self.name, e.get_error_code()),
+                    exc_info=1)
+
         self.libvirt_domain.shutdown()
 
 
@@ -850,7 +878,8 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
 
     def run_service(self, service, source=None, user=None,
-                    passio_popen=False, input=None):
+                    passio_popen=False, input=None, localcmd=None, gui=False,
+                    wait=True):
         '''Run service on this VM
 
         **passio_popen** and **input** are mutually exclusive.
@@ -862,21 +891,51 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         :param str input: string passed as input to service
         ''' # pylint: disable=redefined-builtin
 
-        if input is not None and passio_popen is not None:
-            raise ValueError("'input' and 'passio_popen' cannot be used "
-                "together")
+        if len(i for i in (input, passio_popen, localcmd) if i) > 1:
+            raise ValueError(
+                'input, passio_popen and localcmd cannot be used together')
+
+        if input:
+            localcmd = 'printf %s {}'.format(pipes.quote(input))
 
         source = 'dom0' if source is None else self.app.domains[source].name
 
-        # XXX TODO FIXME this looks bad...
-        if input:
-            return self.run("QUBESRPC %s %s" % (service, source),
-                        localcmd="echo %s" % input, user=user, wait=True)
-        else:
-            return self.run("QUBESRPC %s %s" % (service, source),
-                        passio_popen=passio_popen, user=user, wait=True)
+        return self.run('QUBESRPC {} {}'.format(service, source),
+            localcmd=localcmd, passio_popen=passio_popen, user=user, wait=wait,
+            gui=gui)
 
 
+    def request_memory(self, mem_required=None):
+        # overhead of per-qube/per-vcpu Xen structures,
+        # taken from OpenStack nova/virt/xenapi/driver.py
+        # see https://wiki.openstack.org/wiki/XenServer/Overhead
+        # add an extra MB because Nova rounds up to MBs
+
+        if not qmemman_present:
+            return
+
+        MEM_OVERHEAD_BASE = (3 + 1) * 1024 * 1024
+        MEM_OVERHEAD_PER_CPU = 3 * 1024 * 1024 / 2
+
+        if mem_required is None:
+            mem_required = int(self.memory) * 1024 * 1024
+
+        qmemman_client = qubes.qmemman.client.QMemmanClient()
+        try:
+            mem_required_with_overhead = mem_required + MEM_OVERHEAD_BASE \
+                + self.vcpus * MEM_OVERHEAD_PER_VCPU
+            got_memory = qmemman_client.request_memory(
+                mem_required_with_overhead)
+
+        except IOError as e:
+            raise IOError('Failed to connect to qmemman: {!s}'.format(e))
+
+        if not got_memory:
+            qmemman_client.close()
+            raise qubes.exc.QubesMemoryError(self)
+
+        return qmemman_client
+
 
     def start_guid(self, extra_guid_args=None):
         '''Launch gui daemon.
@@ -900,22 +959,15 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
             guid_cmd += ['-v', '-v']
 
 #       elif not verbose:
-        guid_cmd += ['-q']
+        else:
+            guid_cmd += ['-q']
 
         retcode = subprocess.call(guid_cmd)
         if retcode != 0:
             raise qubes.exc.QubesVMError(self,
                 'Cannot start qubes-guid for domain {!r}'.format(self.name))
 
-        self.log.info('Sending monitor layout')
-
-        try:
-            subprocess.call(
-                [qubes.config.system_path['monitor_layout_notify_cmd'],
-                    self.name])
-        except Exception as e: # pylint: disable=broad-except
-            self.log.error('error starting gui-daemon: {!s}'.format(e))
-
+        self.notify_monitor_layout()
         self.wait_for_session()
 
 
@@ -946,13 +998,13 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
         self.log.info('Starting Qubes DB')
 
+        # FIXME #1694 #1241
         retcode = subprocess.call([
             qubes.config.system_path["qubesdb_daemon_path"],
             str(self.xid),
             self.name])
         if retcode != 0:
-            self.force_shutdown()
-            raise OSError("ERROR: Cannot execute qubesdb-daemon!")
+            raise qubes.exc.QubesException('Cannot execute qubesdb-daemon')
 
 
     def wait_for_session(self):
@@ -970,6 +1022,19 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         p.communicate(input=self.default_user)
 
 
+    # TODO event, extension
+    def notify_monitor_layout(self):
+        monitor_layout = qubes.monitor_layout.get_monitor_layout()
+
+        # notify qube only if we've got a non-empty monitor_layout or else we
+        # break proper qube resolution set by gui-agent
+        if not monitor_layout:
+            return
+
+        self.log.info('Sending monitor layout')
+        qubes.monitor_layout.notify_vm(self, monitor_layout)
+
+
     # TODO move to storage
     def create_on_disk(self, source_template=None):
         '''Create files needed for VM.
@@ -1007,6 +1072,7 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         self.fire_event('domain-created-on-disk', source_template)
 
 
+    # TODO move to storage
     def resize_private_img(self, size):
         '''Resize private image.'''
 
@@ -1031,6 +1097,47 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
             raise qubes.exc.QubesException('resize2fs failed')
 
 
+    # TODO move to storage
+    def resize_root_img(self, size, allow_start=False):
+        if hasattr(self, 'template'):
+            raise qubes.exc.QubesVMError(self,
+                'Cannot resize root.img of template based qube. Resize the'
+                ' root.img of the template instead.')
+
+        # TODO self.is_halted
+        if self.is_running():
+            raise qubes.exc.QubesVMNotHaltedError(self,
+                'Cannot resize root.img of a running qube')
+
+        if size < self.get_root_img_sz():
+            raise qubes.exc.QubesValueError(
+                'For your own safety, shrinking of root.img is disabled. If you'
+                ' really know what you are doing, use `truncate` manually.')
+
+        with open(self.root_img, 'a+b') as fd:
+            fd.truncate(size)
+
+        if False: #self.hvm:
+            return
+
+        if not allow_start:
+            raise qubes.exc.QubesException(
+                'The qube has to be started to complete the operation, but is'
+                ' required not to start. Either run the operation again allowing'
+                ' starting of the qube this time, or run resize2fs in the qube'
+                ' manually.')
+
+        self.start(start_guid=False)
+
+        # TODO run_service #1695
+        self.run('resize2fs /dev/mapper/dmroot', user='root',
+             wait=True, gui=False)
+
+        self.shutdown()
+        while self.is_running(): #1696
+            time.sleep(1)
+
+
     def remove_from_disk(self):
         '''Remove domain remnants from disk.'''
         self.fire_event('domain-removed-from-disk')
@@ -1180,28 +1287,34 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
         libvirt_domain = self.libvirt_domain
         if libvirt_domain is None:
-            return "NA"
-
-        if libvirt_domain.isActive():
-            if libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_PAUSED:
-                return "Paused"
-            elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_CRASHED:
-                return "Crashed"
-            elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_SHUTDOWN:
-                return "Halting"
-            elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_SHUTOFF:
-                return "Dying"
-            elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_PMSUSPENDED:
-                return "Suspended"
-            else:
-                if not self.is_fully_usable():
-                    return "Transient"
-                else:
-                    return "Running"
-        else:
             return 'Halted'
 
-        return "NA"
+        try:
+            if libvirt_domain.isActive():
+                if libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_PAUSED:
+                    return "Paused"
+                elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_CRASHED:
+                    return "Crashed"
+                elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_SHUTDOWN:
+                    return "Halting"
+                elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_SHUTOFF:
+                    return "Dying"
+                elif libvirt_domain.state()[0] == libvirt.VIR_DOMAIN_PMSUSPENDED:
+                    return "Suspended"
+                else:
+                    if not self.is_fully_usable():
+                        return "Transient"
+                    else:
+                        return "Running"
+            else:
+                return 'Halted'
+        except libvirt.libvirtError as e:
+            if e.get_error_code() == libvirt.VIR_ERR_NO_DOMAIN:
+                return 'Halted'
+            else:
+                raise
+
+        assert False
 
 
     def is_running(self):
@@ -1212,6 +1325,7 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         :rtype: bool
         '''
 
+        # TODO context manager #1693
         return self.libvirt_domain and self.libvirt_domain.isActive()
 
 
@@ -1283,10 +1397,26 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
 
         if self.libvirt_domain is None:
             return 0
-        if not self.libvirt_domain.isActive():
-            return 0
 
-        return self.libvirt_domain.info()[1]
+        try:
+            if not self.libvirt_domain.isActive():
+                return 0
+            return self.libvirt_domain.info()[1]
+
+        except libvirt.libvirtError as e:
+            if e.get_error_code() in (
+                    # qube no longer exists
+                    libvirt.VIR_ERR_NO_DOMAIN,
+
+                    # libxl_domain_info failed (race condition from isActive)
+                    libvirt.VIR_ERR_INTERNAL_ERROR,
+                    ):
+                return 0
+
+            else:
+                self.log.exception(
+                    'libvirt error code: {!r}'.format(e.get_error_code()))
+                raise
 
 
     def get_mem_static_max(self):
@@ -1299,23 +1429,65 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         if self.libvirt_domain is None:
             return 0
 
-        return self.libvirt_domain.maxMemory()
+        try:
+            return self.libvirt_domain.maxMemory()
+
+        except libvirt.libvirtError as e:
+            if e.get_error_code() in (
+                    # qube no longer exists
+                    libvirt.VIR_ERR_NO_DOMAIN,
+
+                    # libxl_domain_info failed (race condition from isActive)
+                    libvirt.VIR_ERR_INTERNAL_ERROR,
+                    ):
+                return 0
+
+            else:
+                self.log.exception(
+                    'libvirt error code: {!r}'.format(e.get_error_code()))
+                raise
 
 
-    def get_per_cpu_time(self):
+    def get_cputime(self):
         '''Get total CPU time burned by this domain since start.
 
         :returns: CPU time usage [FIXME unit].
         :rtype: FIXME
         '''
 
+        if self.libvirt_domain is None:
+            return 0
+
         if self.libvirt_domain is None:
             return 0
         if not self.libvirt_domain.isActive():
             return 0
 
-        return self.libvirt_domain.getCPUStats(
-            libvirt.VIR_NODE_CPU_STATS_ALL_CPUS, 0)[0]['cpu_time']/10**9
+        try:
+            if not self.libvirt_domain.isActive():
+                return 0
+
+        # this does not work, because libvirt
+#           return self.libvirt_domain.getCPUStats(
+#               libvirt.VIR_NODE_CPU_STATS_ALL_CPUS, 0)[0]['cpu_time']/10**9
+
+            return self.libvirt_domain.info()[4]
+
+        except libvirt.libvirtError as e:
+            if e.get_error_code() in (
+                    # qube no longer exists
+                    libvirt.VIR_ERR_NO_DOMAIN,
+
+                    # libxl_domain_info failed (race condition from isActive)
+                    libvirt.VIR_ERR_INTERNAL_ERROR,
+                    ):
+                return 0
+
+            else:
+                self.log.exception(
+                    'libvirt error code: {!r}'.format(e.get_error_code()))
+                raise
+
 
 
     # XXX shouldn't this go only to vms that have root image?
@@ -1502,7 +1674,15 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
         self.qdb.write('/name', self.name)
         self.qdb.write('/type', self.__class__.__name__)
         self.qdb.write('/updateable', str(self.updateable))
+        self.qdb.write('/persistence', 'full' if self.updateable else 'rw-only')
         self.qdb.write('/debug', str(int(self.debug)))
+        try:
+            self.qdb.write('/template', self.template.name)
+        except AttributeError:
+            self.qdb.write('/template', '')
+
+        self.qdb.write('/random-seed',
+            base64.b64encode(qubes.utils.urandom(64)))
 
         if self.provides_network:
             self.qdb.write('/network-provider/gateway', self.gateway)
@@ -1544,17 +1724,15 @@ class QubesVM(qubes.vm.mix.net.NetVMMixin, qubes.vm.BaseVM):
     def _update_libvirt_domain(self):
         '''Re-initialise :py:attr:`libvirt_domain`.'''
         domain_config = self.create_config_file()
-        if self._libvirt_domain is not None:
-            self._libvirt_domain.undefine()
         try:
             self._libvirt_domain = self.app.vmm.libvirt_conn.defineXML(
                 domain_config)
-        except libvirt.libvirtError:
-            if self.app.vmm.libvirt_conn.virConnGetLastError()[0] == \
-                    libvirt.VIR_ERR_NO_DOMAIN:
-                # accept the fact that libvirt doesn't know anything about this
-                # domain...
-                pass
+        except libvirt.libvirtError as e:
+            if e.get_error_code() == libvirt.VIR_ERR_OS_TYPE \
+                    and e.get_str2() == 'hvm':
+                raise qubes.exc.QubesVMError(self,
+                    'HVM qubes are not supported on this machine. '
+                    'Check BIOS settings for VT-x/AMD-V extensions.')
             else:
                 raise
 
diff --git a/qvm-tools/qubes-prefs b/qvm-tools/qubes-prefs
index 41a365be..2f6a38aa 100755
--- a/qvm-tools/qubes-prefs
+++ b/qvm-tools/qubes-prefs
@@ -28,6 +28,8 @@ from optparse import OptionParser
 import subprocess
 import os
 import sys
+from qubes.qubes import vmm
+
 
 def handle_vm(vms, label, new_value = None):
     functions = { # label: [ getter, setter ],
@@ -116,6 +118,8 @@ def main():
         else:
             options.do_set = True
 
+    vmm.offline_mode = True
+
     if options.do_set:
         qvm_collection = QubesVmCollection()
         qvm_collection.lock_db_for_writing()
diff --git a/qvm-tools/qubes-set-updates b/qvm-tools/qubes-set-updates
index 4bb2d455..c57a6ccb 100755
--- a/qvm-tools/qubes-set-updates
+++ b/qvm-tools/qubes-set-updates
@@ -20,27 +20,37 @@
 # Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
 #
 #
+from optparse import OptionParser
+import optparse
 
 import os
 import sys
 from qubes.qubes import QubesVmCollection
 from qubes.qubesutils import updates_vms_toggle,updates_dom0_toggle,\
-    updates_dom0_status
+    updates_dom0_status,updates_vms_status
+from qubes.qubes import vmm
 
-def usage():
-    print "Usage: qubes-set-updates enable|disable|status"
-    print "  Enable or disable globally checking for updates (both dom0 and VM)"
-    print "  Status option checks only dom0 updates status"
 
 def main():
-    if len(sys.argv) < 2:
-        usage()
-        return 1
-    
-    action = sys.argv[1]
+
+    usage = "%prog enable|disable|status\n"\
+            "  Enable or disable globally checking for updates (both dom0 and VM)"
+    parser = OptionParser (usage)
+    parser.add_option("--offline-mode", dest="offline_mode",
+                      action="store_true", default=False,
+                      help=optparse.SUPPRESS_HELP)
+
+    (options, args) = parser.parse_args()
+
+    if len(args) < 1:
+        parser.error("You must provide an action")
+
+    action = args[0]
     if action not in ['enable', 'disable', 'status']:
-        usage()
-        return 1
+        parser.error("Invalid action")
+
+    if options.offline_mode:
+        vmm.offline_mode = True
 
     qvm_collection = QubesVmCollection()
     if action == 'status':
@@ -56,9 +66,16 @@ def main():
         updates_vms_toggle(qvm_collection, False)
     else:
         if updates_dom0_status(qvm_collection):
-            print "enabled"
+            print "dom0: enabled"
         else:
-            print "disabled"
+            print "dom0: disabled"
+        status_vms = updates_vms_status(qvm_collection)
+        if status_vms is None:
+            print "vms: mixed"
+        elif status_vms:
+            print "vms: enabled"
+        else:
+            print "vms: disabled"
 
     if action != 'status':
         qvm_collection.save()
diff --git a/qvm-tools/qvm-backup b/qvm-tools/qvm-backup
index dff4e9e5..aa69f9c6 100755
--- a/qvm-tools/qvm-backup
+++ b/qvm-tools/qvm-backup
@@ -63,6 +63,10 @@ def main():
                             "list-message-digest-algorithms'")
     parser.add_option ("-z", "--compress", action="store_true", dest="compress", default=False,
                        help="Compress the backup")
+    parser.add_option ("-Z", "--compress-filter", action="store",
+                       dest="compress_filter", default=False,
+                       help="Compress the backup using specified filter "
+                            "program (default: gzip)")
     parser.add_option ("--debug", action="store_true", dest="debug",
                        default=False, help="Enable (a lot of) debug output")
 
@@ -181,7 +185,7 @@ def main():
         backup_do(base_backup_dir, files_to_backup, passphrase,
                 progress_callback=print_progress,
                 encrypted=options.encrypt,
-                compressed=options.compress,
+                compressed=options.compress_filter or options.compress,
                 appvm=appvm, **kwargs)
     except QubesException as e:
         print >>sys.stderr, "ERROR: %s" % str(e)
diff --git a/qvm-tools/qvm-backup-restore b/qvm-tools/qvm-backup-restore
index c07119d6..bcfdfad0 100755
--- a/qvm-tools/qvm-backup-restore
+++ b/qvm-tools/qvm-backup-restore
@@ -54,6 +54,10 @@ def main():
     parser.add_option ("--skip-conflicting", action="store_true", dest="skip_conflicting", default=False,
                        help="Do not restore VMs that are already present on the host")
 
+    parser.add_option ("--rename-conflicting", action="store_true",
+                       dest="rename_conflicting", default=False,
+                       help="Restore VMs that are already present on the host under different name")
+
     parser.add_option ("--force-root", action="store_true", dest="force_root", default=False,
                        help="Force to run, even with root privileges")
 
@@ -193,6 +197,9 @@ def main():
         else:
             print >> sys.stderr, "Remove VMs with conflicting names from the host before proceeding."
             print >> sys.stderr, "... or use --skip-conflicting to restore only those VMs that do not exist on the host."
+            print >> sys.stderr, "... or use --rename-conflicting to " \
+                                 "restore those VMs under modified " \
+                                 "name (with number at the end)"
             exit (1)
 
     print "The above VMs will be copied and added to your system."
diff --git a/qvm-tools/qvm-clone b/qvm-tools/qvm-clone
index e2eba3b3..5ec22c5c 100755
--- a/qvm-tools/qvm-clone
+++ b/qvm-tools/qvm-clone
@@ -17,37 +17,43 @@
 #
 # You should have received a copy of the GNU General Public License
 # along with this program; if not, write to the Free Software
-# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
-#
-#
+# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301,
+# USA.
+
+import os
+import sys
+from optparse import OptionParser
 
 from qubes.qubes import QubesVmCollection
-from qubes.qubes import QubesAppVm, QubesTemplateVm, QubesHVm
-from qubes.qubes import QubesException
-from optparse import OptionParser;
-import sys
-import os
+
 
 def main():
     usage = "usage: %prog [options] <src-name> <new-name>\n"\
             "Clones an existing VM by copying all its disk files"
-          
-    parser = OptionParser (usage)
-    parser.add_option ("-q", "--quiet", action="store_false", dest="verbose", default=True)
-    parser.add_option ("-p", "--path", dest="dir_path",
-                       help="Specify path to the template directory")
-    parser.add_option ("--force-root", action="store_true", dest="force_root", default=False,
-                       help="Force to run, even with root privileges")
 
-    (options, args) = parser.parse_args ()
-    if (len (args) != 2):
-        parser.error ("You must specify at least the src and dst TemplateVM names!")
+    parser = OptionParser(usage)
+    parser.add_option("-q", "--quiet", action="store_false", dest="verbose",
+                      default=True)
+    parser.add_option("-p", "--path", dest="dir_path",
+                      help="Specify path to the template directory")
+    parser.add_option("--force-root", action="store_true", dest="force_root",
+                      default=False,
+                      help="Force to run, even with root privileges")
+    parser.add_option("-P", "--pool", dest="pool_name",
+                      help="Specify in to which storage pool to clone")
+
+    (options, args) = parser.parse_args()
+    if (len(args) != 2):
+        parser.error(
+            "You must specify at least the src and dst TemplateVM names!")
     srcname = args[0]
     dstname = args[1]
 
     if hasattr(os, "geteuid") and os.geteuid() == 0:
         if not options.force_root:
-            print >> sys.stderr, "*** Running this tool as root is strongly discouraged, this will lead you in permissions problems."
+            print >> sys.stderr, "*** Running this tool as root is" + \
+                " strongly discouraged, this will lead you in permissions" + \
+                "problems."
             print >> sys.stderr, "Retry as unprivileged user."
             print >> sys.stderr, "... or use --force-root to continue anyway."
             exit(1)
@@ -57,12 +63,21 @@ def main():
     qvm_collection.load()
 
     src_vm = qvm_collection.get_vm_by_name(srcname)
-    if src_vm is  None:
-        print >> sys.stderr, "ERROR: A VM with the name '{0}' does not exist in the system.".format(srcname)
+    if src_vm is None:
+        print >> sys.stderr, \
+            "ERROR: A VM with the name '{0}' does not exist in the system." \
+            .format(srcname)
         exit(1)
 
+    if options.pool_name is None:
+        pool_name = src_vm.pool_name
+    else:
+        pool_name = options.pool_name
+
     if qvm_collection.get_vm_by_name(dstname) is not None:
-        print >> sys.stderr, "ERROR: A VM with the name '{0}' already exists in the system.".format(dstname)
+        print >> sys.stderr, \
+            "ERROR: A VM with the name '{0}' already exists in the system." \
+            .format(dstname)
         exit(1)
 
     if src_vm.is_disposablevm():
@@ -70,19 +85,21 @@ def main():
         exit(1)
 
     dst_vm = qvm_collection.add_new_vm(src_vm.__class__.__name__,
-            name=dstname, template=src_vm.template,
-            dir_path=options.dir_path, installed_by_rpm=False)
+                                       name=dstname, template=src_vm.template,
+                                       pool_name=pool_name,
+                                       dir_path=options.dir_path,
+                                       installed_by_rpm=False)
 
     try:
         dst_vm.clone_attrs(src_vm)
-        dst_vm.clone_disk_files (src_vm=src_vm, verbose=options.verbose)
+        dst_vm.clone_disk_files(src_vm=src_vm, verbose=options.verbose)
     except (IOError, OSError) as err:
         print >> sys.stderr, "ERROR: {0}".format(err)
         qvm_collection.pop(dst_vm.qid)
         dst_vm.remove_from_disk()
-        exit (1)
+        exit(1)
 
     qvm_collection.save()
     qvm_collection.unlock_db()
-    
+
 main()
diff --git a/qvm-tools/qvm-create-default-dvm b/qvm-tools/qvm-create-default-dvm
index 810755aa..5e90cb79 100755
--- a/qvm-tools/qvm-create-default-dvm
+++ b/qvm-tools/qvm-create-default-dvm
@@ -46,16 +46,12 @@ if ! /usr/lib/qubes/qubes-prepare-saved-domain.sh \
 	exit 1
 fi
 DEFAULT=/var/lib/qubes/dvmdata/default-savefile
-DEFAULTCONF=/var/lib/qubes/dvmdata/default-dvm.conf
 CURRENT=/var/run/qubes/current-savefile
-CURRENTCONF=/var/run/qubes/current-dvm.conf
 SHMDIR=/dev/shm/qubes
 SHMCOPY=$SHMDIR/current-savefile
-rm -f $ROOT $DEFAULT $CURRENT $DEFAULTCONF $CURRENTCONF
+rm -f $ROOT $DEFAULT $CURRENT
 ln -s "/var/lib/qubes/appvms/$DVMTMPL/dvm-savefile" $DEFAULT
 ln -s "/var/lib/qubes/vm-templates/$TEMPLATENAME/root.img" $ROOT
-ln -s $DVMTMPLDIR/dvm.conf $DEFAULTCONF
-ln -s $DVMTMPLDIR/dvm.conf $CURRENTCONF
 if [ -f /var/lib/qubes/dvmdata/dont-use-shm ] ; then
 	ln -s $DEFAULT $CURRENT
 else
diff --git a/qvm-tools/qvm-grow-root b/qvm-tools/qvm-grow-root
index 93c55bb2..5e650ab7 100755
--- a/qvm-tools/qvm-grow-root
+++ b/qvm-tools/qvm-grow-root
@@ -34,6 +34,10 @@ def main():
     usage = "usage: %prog <vm-name> <size>"
     parser = OptionParser (usage)
 
+    parser.add_option("--allow-start", action="store_true",
+                      dest="allow_start", default=False,
+                      help="Allow VM to be started to complete the operation")
+
     (options, args) = parser.parse_args ()
     if (len (args) != 2):
         parser.error ("You must specify VM name and new size!")
@@ -57,7 +61,7 @@ def main():
         exit(1)
 
     try:
-        vm.resize_root_img(size_bytes)
+        vm.resize_root_img(size_bytes, allow_start=options.allow_start)
     except (IOError, OSError, QubesException) as err:
         print >> sys.stderr, "ERROR: {0}".format(err)
         exit (1)
diff --git a/qvm-tools/qvm-pci b/qvm-tools/qvm-pci
index e8392be5..72c5d186 100755
--- a/qvm-tools/qvm-pci
+++ b/qvm-tools/qvm-pci
@@ -26,6 +26,27 @@ from optparse import OptionParser
 import subprocess
 import os
 import sys
+from qubes.qubes import vmm
+import re
+
+
+def find_devices_of_class(klass):
+    p = subprocess.Popen(["/sbin/lspci", "-mm", "-n"], stdout=subprocess.PIPE)
+    result = p.communicate()
+    retcode = p.returncode
+    if retcode != 0:
+        print "ERROR when executing lspci!"
+        raise IOError
+
+    rx_netdev = re.compile(r"^([0-9a-f]{2}:[0-9a-f]{2}.[0-9a-f]) \"" +
+                           klass)
+    for dev in str(result[0]).splitlines():
+        match = rx_netdev.match(dev)
+        if match is not None:
+            dev_bdf = match.group(1)
+            assert dev_bdf is not None
+            yield dev_bdf
+
 
 def main():
     usage = "usage: %prog -l [options] <vm-name>\n"\
@@ -37,6 +58,12 @@ def main():
     parser.add_option ("-l", "--list", action="store_true", dest="do_list", default=False)
     parser.add_option ("-a", "--add", action="store_true", dest="do_add", default=False)
     parser.add_option ("-d", "--delete", action="store_true", dest="do_delete", default=False)
+    parser.add_option("-C", "--add-class", action="store_true",
+                      dest="do_add_class", default=False,
+                      help="Add all devices of given class (net, usb)")
+    parser.add_option ("--offline-mode", dest="offline_mode",
+                       action="store_true", default=False,
+                       help="Offline mode")
 
     (options, args) = parser.parse_args ()
     if (len (args) < 1):
@@ -44,11 +71,15 @@ def main():
 
     vmname = args[0]
 
-    if options.do_list + options.do_add + options.do_delete > 1:
-        print >> sys.stderr, "Only one of -l -a -d is allowed!"
-        exit (1)
+    if options.do_list + options.do_add + options.do_delete + \
+            options.do_add_class > 1:
+        print >> sys.stderr, "Only one of -l -a -d -C is allowed!"
+        exit(1)
 
-    if options.do_add or options.do_delete:
+    if options.offline_mode:
+        vmm.offline_mode = True
+
+    if options.do_add or options.do_delete or options.do_add_class:
         qvm_collection = QubesVmCollection()
         qvm_collection.lock_db_for_writing()
         qvm_collection.load()
@@ -73,6 +104,26 @@ def main():
         qvm_collection.save()
         qvm_collection.unlock_db()
 
+    elif options.do_add_class:
+        if len(args) < 2:
+            print >> sys.stderr, "You must specify the PCI device class to add"
+            exit(1)
+
+        klass = args[1]
+
+        if klass == 'net':
+            devs = find_devices_of_class("02")
+        elif klass == 'usb':
+            devs = find_devices_of_class("0c03")
+        else:
+            print >> sys.stderr, "Supported classes: net, usb"
+            exit(1)
+
+        for dev in devs:
+            vm.pci_add(dev)
+        qvm_collection.save()
+        qvm_collection.unlock_db()
+
     elif options.do_delete:
         if len (args) < 2:
             print >> sys.stderr, "You must specify the PCI device to delete"
diff --git a/qvm-tools/qvm-remove b/qvm-tools/qvm-remove
index a5973d28..ccb10212 100755
--- a/qvm-tools/qvm-remove
+++ b/qvm-tools/qvm-remove
@@ -75,7 +75,7 @@ def main():
 
     if vm.installed_by_rpm and not options.remove_from_db_only:
         if options.verbose:
-            print >> sys.stderr, "This VM has been installed by RPM, use rpm -e <pkg name> to remove it!"
+            print >> sys.stderr, "This VM has been installed by RPM, use yum remove <pkg name> to remove it!"
             exit (1)
 
     try:
diff --git a/qvm-tools/qvm-shutdown b/qvm-tools/qvm-shutdown
index 37374cba..da3eeec2 100755
--- a/qvm-tools/qvm-shutdown
+++ b/qvm-tools/qvm-shutdown
@@ -36,6 +36,10 @@ def main():
                       help="Force operation, even if may damage other VMs (eg shutdown of NetVM)")
     parser.add_option ("--wait", action="store_true", dest="wait_for_shutdown", default=False,
                       help="Wait for the VM(s) to shutdown")
+    parser.add_option("--wait-time", action="store", dest="wait_time",
+                      default=defaults["shutdown_counter_max"],
+                      help="Timout after which VM will be killed when --wait "
+                           "is used")
     parser.add_option ("--all", action="store_true", dest="shutdown_all", default=False,
                       help="Shutdown all running VMs")
     parser.add_option ("--exclude", action="append", dest="exclude_list",
@@ -107,7 +111,7 @@ def main():
                         continue
                     else:
                         halting_vms.append(vm)
-                if shutdown_counter > defaults["shutdown_counter_max"]:
+                if shutdown_counter > int(options.wait_time):
                     # kill the VM
                     if options.verbose:
                         print >> sys.stderr, "Killing the (apparently hanging) VM '{0}'...".format(vm.name)
diff --git a/qvm-tools/qvm-sync-clock b/qvm-tools/qvm-sync-clock
index 2535b765..36e4cdfb 100755
--- a/qvm-tools/qvm-sync-clock
+++ b/qvm-tools/qvm-sync-clock
@@ -102,8 +102,10 @@ def main():
     if verbose:
         print >> sys.stderr, '--> Syncing dom0 clock.'
 
-    subprocess.check_call(['sudo', 'date', '-u', '-Iseconds', '-s', date_out])
-    subprocess.check_call(['sudo', 'hwclock', '--systohc'])
+    subprocess.check_call(['sudo', 'date', '-u', '-Iseconds', '-s', date_out],
+                          stdout=None if verbose else open(os.devnull, 'w'))
+    subprocess.check_call(['sudo', 'hwclock', '--systohc'],
+                          stdout=None if verbose else open(os.devnull, 'w'))
 
     # Sync other VMs clock
     for vm in qvm_collection.values():
@@ -111,8 +113,8 @@ def main():
             if verbose:
                 print >> sys.stderr, '--> Syncing \'%s\' clock.' % vm.name
             try:
-                vm.run('date -u -R -s "%s"' % date_out, user="root",
-                       gui=False, verbose=verbose)
+                vm.run_service("qubes.SetDateTime", user="root",
+                               localcmd="date -u -Iseconds")
             except Exception as e:
                 print >> sys.stderr, "ERROR syncing time in VM '%s': %s" % (vm.name, str(e))
                 pass
diff --git a/qvm-tools/qvm-template-commit b/qvm-tools/qvm-template-commit
index 158f3e02..a2e210da 100755
--- a/qvm-tools/qvm-template-commit
+++ b/qvm-tools/qvm-template-commit
@@ -32,7 +32,7 @@ def main():
     parser = OptionParser (usage)
     parser.add_option ("--offline-mode", dest="offline_mode",
                        action="store_true", default=False,
-                       help="Offline mode (ignored in this version)")
+                       help="Offline mode")
 
     (options, args) = parser.parse_args ()
     if (len (args) != 1):
diff --git a/qvm-tools/qvm-trim-template b/qvm-tools/qvm-trim-template
index 58e19d45..f576822b 100755
--- a/qvm-tools/qvm-trim-template
+++ b/qvm-tools/qvm-trim-template
@@ -118,7 +118,12 @@ def main():
     ''')
     fstrim_process.stdin.close()
 
-    qubesutils.block_attach(fstrim_vm, qvm_collection[0], tvm.root_img,
+    qubesutils.block_attach(qvm_collection, fstrim_vm,
+                            {
+                                'vm': 'dom0',
+                                'device': tvm.root_img,
+                                'mode': 'w',
+                            },
                             mode='w',
                             frontend='xvdi')
 
diff --git a/rpm_spec/core-dom0.spec b/rpm_spec/core-dom0.spec
index c2347c75..b5c6a688 100644
--- a/rpm_spec/core-dom0.spec
+++ b/rpm_spec/core-dom0.spec
@@ -70,7 +70,7 @@ Requires:       libvirt-python
 %if x%{?backend_vmm} == xxen
 Requires:       xen-runtime
 Requires:       xen-hvm
-Requires:       libvirt-daemon-xen >= 1.2.12-3
+Requires:       libvirt-daemon-xen >= 1.2.20-4
 %endif
 Requires:       createrepo
 Requires:       gnome-packagekit
@@ -171,7 +171,6 @@ if ! grep -q ^qubes: /etc/group ; then
 fi
 
 %triggerin -- xen-runtime
-sed -i 's/\/block /\/block.qubes /' /etc/udev/rules.d/xen-backend.rules
 /usr/lib/qubes/fix-dir-perms.sh
 
 %preun
@@ -187,12 +186,12 @@ if [ "$1" = 0 ] ; then
     chgrp root /etc/xen
     chmod 700 /etc/xen
     groupdel qubes
-    sed -i 's/\/block.qubes /\/block /' /etc/udev/rules.d/xen-backend.rules
 fi
 
 %files
 %defattr(-,root,root,-)
 %config(noreplace) %attr(0664,root,qubes) %{_sysconfdir}/qubes/qmemman.conf
+%config(noreplace) %attr(0664,root,qubes) %{_sysconfdir}/qubes/storage.conf
 /usr/bin/qvm-*
 /usr/bin/qubes-*
 /usr/bin/qmemmand
diff --git a/tests/Makefile b/tests/Makefile
index 8523adde..2f503a15 100644
--- a/tests/Makefile
+++ b/tests/Makefile
@@ -27,3 +27,7 @@ endif
 	cp regressions.py[co] $(DESTDIR)$(PYTHON_TESTSPATH)
 	cp run.py $(DESTDIR)$(PYTHON_TESTSPATH)
 	cp run.py[co] $(DESTDIR)$(PYTHON_TESTSPATH)
+	cp storage.py $(DESTDIR)$(PYTHON_TESTSPATH)
+	cp storage.py[co] $(DESTDIR)$(PYTHON_TESTSPATH)
+	cp storage_xen.py $(DESTDIR)$(PYTHON_TESTSPATH)
+	cp storage_xen.py[co] $(DESTDIR)$(PYTHON_TESTSPATH)
diff --git a/tests/__init__.py b/tests/__init__.py
index dd786bea..f510409c 100644
--- a/tests/__init__.py
+++ b/tests/__init__.py
@@ -1,3 +1,412 @@
+#!/usr/bin/python2 -O
+# vim: fileencoding=utf-8
+
+#
+# The Qubes OS Project, https://www.qubes-os.org/
+#
+# Copyright (C) 2014-2015
+#                   Marek Marczykowski-Górecki <marmarek@invisiblethingslab.com>
+# Copyright (C) 2015  Wojtek Porczyk <woju@invisiblethingslab.com>
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation; either version 2 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
+#
+
+import multiprocessing
+import logging
+import os
+import shutil
+import subprocess
+import unittest
+
+import lxml.etree
+import sys
+
+import qubes.backup
+import qubes.qubes
+import time
+
+VMPREFIX = 'test-'
+
+
+#: :py:obj:`True` if running in dom0, :py:obj:`False` otherwise
+in_dom0 = False
+
+#: :py:obj:`False` if outside of git repo,
+#: path to root of the directory otherwise
+in_git = False
+
+try:
+    import libvirt
+    libvirt.openReadOnly(qubes.qubes.defaults['libvirt_uri']).close()
+    in_dom0 = True
+except libvirt.libvirtError:
+    pass
+
+try:
+    in_git = subprocess.check_output(
+        ['git', 'rev-parse', '--show-toplevel'],
+        stderr=open(os.devnull, 'w')).strip()
+except subprocess.CalledProcessError:
+    # git returned nonzero, we are outside git repo
+    pass
+except OSError:
+    # command not found; let's assume we're outside
+    pass
+
+
+def skipUnlessDom0(test_item):
+    '''Decorator that skips test outside dom0.
+
+    Some tests (especially integration tests) have to be run in more or less
+    working dom0. This is checked by connecting to libvirt.
+    ''' # pylint: disable=invalid-name
+
+    return unittest.skipUnless(in_dom0, 'outside dom0')(test_item)
+
+
+def skipUnlessGit(test_item):
+    '''Decorator that skips test outside git repo.
+
+    There are very few tests that an be run only in git. One example is
+    correctness of example code that won't get included in RPM.
+    ''' # pylint: disable=invalid-name
+
+    return unittest.skipUnless(in_git, 'outside git tree')(test_item)
+
+
+class _AssertNotRaisesContext(object):
+    """A context manager used to implement TestCase.assertNotRaises methods.
+
+    Stolen from unittest and hacked. Regexp support stripped.
+    """
+
+    def __init__(self, expected, test_case, expected_regexp=None):
+        self.expected = expected
+        self.failureException = test_case.failureException
+
+    def __enter__(self):
+        return self
+
+    def __exit__(self, exc_type, exc_value, tb):
+        if exc_type is None:
+            return True
+
+        try:
+            exc_name = self.expected.__name__
+        except AttributeError:
+            exc_name = str(self.expected)
+
+        if issubclass(exc_type, self.expected):
+            raise self.failureException(
+                "{0} raised".format(exc_name))
+        else:
+            # pass through
+            return False
+
+        self.exception = exc_value # store for later retrieval
+
+
+class BeforeCleanExit(BaseException):
+    pass
+
+class QubesTestCase(unittest.TestCase):
+    '''Base class for Qubes unit tests.
+    '''
+
+    def __init__(self, *args, **kwargs):
+        super(QubesTestCase, self).__init__(*args, **kwargs)
+        self.longMessage = True
+        self.log = logging.getLogger('{}.{}.{}'.format(
+            self.__class__.__module__,
+            self.__class__.__name__,
+            self._testMethodName))
+
+    def __str__(self):
+        return '{}/{}/{}'.format(
+            '.'.join(self.__class__.__module__.split('.')[2:]),
+            self.__class__.__name__,
+            self._testMethodName)
+
+    def tearDown(self):
+        super(QubesTestCase, self).tearDown()
+
+        result = self._resultForDoCleanups
+        l = result.failures \
+            + result.errors \
+            + [(tc, None) for tc in result.unexpectedSuccesses]
+
+        if getattr(result, 'do_not_clean', False) \
+                and filter((lambda (tc, exc): tc is self), l):
+            raise BeforeCleanExit()
+
+    def assertNotRaises(self, excClass, callableObj=None, *args, **kwargs):
+        """Fail if an exception of class excClass is raised
+           by callableObj when invoked with arguments args and keyword
+           arguments kwargs. If a different type of exception is
+           raised, it will not be caught, and the test case will be
+           deemed to have suffered an error, exactly as for an
+           unexpected exception.
+
+           If called with callableObj omitted or None, will return a
+           context object used like this::
+
+                with self.assertRaises(SomeException):
+                    do_something()
+
+           The context manager keeps a reference to the exception as
+           the 'exception' attribute. This allows you to inspect the
+           exception after the assertion::
+
+               with self.assertRaises(SomeException) as cm:
+                   do_something()
+               the_exception = cm.exception
+               self.assertEqual(the_exception.error_code, 3)
+        """
+        context = _AssertNotRaisesContext(excClass, self)
+        if callableObj is None:
+            return context
+        with context:
+            callableObj(*args, **kwargs)
+
+    def assertXMLEqual(self, xml1, xml2):
+        """Check for equality of two XML objects.
+
+        :param xml1: first element
+        :param xml2: second element
+        :type xml1: :py:class:`lxml.etree._Element`
+        :type xml2: :py:class:`lxml.etree._Element`
+        """  # pylint: disable=invalid-name
+
+        self.assertEqual(xml1.tag, xml2.tag)
+        self.assertEqual(xml1.text, xml2.text)
+        self.assertItemsEqual(xml1.keys(), xml2.keys())
+        for key in xml1.keys():
+            self.assertEqual(xml1.get(key), xml2.get(key))
+
+
+class SystemTestsMixin(object):
+    def setUp(self):
+        """Set up the test.
+
+        .. warning::
+            This method instantiates QubesVmCollection acquires write lock for
+            it. You can use is as :py:attr:`qc`. You can (and probably
+            should) release the lock at the end of setUp in subclass
+        """
+
+        super(SystemTestsMixin, self).setUp()
+
+        self.qc = qubes.qubes.QubesVmCollection()
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+
+        self.conn = libvirt.open(qubes.qubes.defaults['libvirt_uri'])
+
+        self.remove_test_vms()
+
+    def tearDown(self):
+        super(SystemTestsMixin, self).tearDown()
+
+        # release the lock, because we have no way to check whether it was
+        # read or write lock
+        try:
+            self.qc.unlock_db()
+        except qubes.qubes.QubesException:
+            pass
+
+        self.kill_test_vms()
+
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+
+        self.remove_test_vms()
+
+        self.qc.save()
+        self.qc.unlock_db()
+        del self.qc
+
+        self.conn.close()
+
+    def make_vm_name(self, name):
+        return VMPREFIX + name
+
+    def save_and_reload_db(self):
+        self.qc.save()
+        self.qc.unlock_db()
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+
+    def kill_test_vms(self):
+        # do not keep write lock while killing VMs, because that may cause a
+        # deadlock with disk hotplug scripts (namely qvm-template-commit
+        # called when shutting down TemplateVm)
+        self.qc.lock_db_for_reading()
+        self.qc.load()
+        self.qc.unlock_db()
+        for vm in self.qc.values():
+            if vm.name.startswith(VMPREFIX):
+                if vm.is_running():
+                    vm.force_shutdown()
+
+    def _remove_vm_qubes(self, vm):
+        vmname = vm.name
+
+        try:
+            # XXX .is_running() may throw libvirtError if undefined
+            if vm.is_running():
+                vm.force_shutdown()
+        except:
+            pass
+
+        try:
+            vm.remove_from_disk()
+        except:
+            pass
+
+        try:
+            vm.libvirt_domain.undefine()
+        except libvirt.libvirtError:
+            pass
+
+        self.qc.pop(vm.qid)
+        del vm
+
+        # Now ensure it really went away. This may not have happened,
+        # for example if vm.libvirtDomain malfunctioned.
+        try:
+            dom = self.conn.lookupByName(vmname)
+        except:
+            pass
+        else:
+            self._remove_vm_libvirt(dom)
+
+        self._remove_vm_disk(vmname)
+
+    def _remove_vm_libvirt(self, dom):
+        try:
+            dom.destroy()
+        except libvirt.libvirtError: # not running
+            pass
+        dom.undefine()
+
+    def _remove_vm_disk(self, vmname):
+        for dirspec in (
+                'qubes_appvms_dir',
+                'qubes_servicevms_dir',
+                'qubes_templates_dir'):
+            dirpath = os.path.join(qubes.qubes.system_path['qubes_base_dir'],
+                qubes.qubes.system_path[dirspec], vmname)
+            if os.path.exists(dirpath):
+                if os.path.isdir(dirpath):
+                    shutil.rmtree(dirpath)
+                else:
+                    os.unlink(dirpath)
+
+    def remove_vms(self, vms):
+        for vm in vms: self._remove_vm_qubes(vm)
+        self.save_and_reload_db()
+
+    def remove_test_vms(self):
+        """Aggresively remove any domain that has name in testing namespace.
+
+        .. warning::
+            The test suite hereby claims any domain whose name starts with
+            :py:data:`VMPREFIX` as fair game. This is needed to enforce sane
+            test executing environment. If you have domains named ``test-*``,
+            don't run the tests.
+        """
+
+        # first, remove them Qubes-way
+        something_removed = False
+        for vm in self.qc.values():
+            if vm.name.startswith(VMPREFIX):
+                self._remove_vm_qubes(vm)
+                something_removed = True
+        if something_removed:
+            self.save_and_reload_db()
+
+        # now remove what was only in libvirt
+        for dom in self.conn.listAllDomains():
+            if dom.name().startswith(VMPREFIX):
+                self._remove_vm_libvirt(dom)
+
+        # finally remove anything that is left on disk
+        vmnames = set()
+        for dirspec in (
+                'qubes_appvms_dir',
+                'qubes_servicevms_dir',
+                'qubes_templates_dir'):
+            dirpath = os.path.join(qubes.qubes.system_path['qubes_base_dir'],
+                qubes.qubes.system_path[dirspec])
+            for name in os.listdir(dirpath):
+                if name.startswith(VMPREFIX):
+                    vmnames.add(name)
+        for vmname in vmnames:
+            self._remove_vm_disk(vmname)
+
+    def wait_for_window(self, title, timeout=30, show=True):
+        """
+        Wait for a window with a given title. Depending on show parameter,
+        it will wait for either window to show or to disappear.
+
+        :param title: title of the window to wait for
+        :param timeout: timeout of the operation, in seconds
+        :param show: if True - wait for the window to be visible,
+            otherwise - to not be visible
+        :return: None
+        """
+
+        wait_count = 0
+        while subprocess.call(['xdotool', 'search', '--name', title],
+                              stdout=open(os.path.devnull, 'w'),
+                              stderr=subprocess.STDOUT) == int(show):
+            wait_count += 1
+            if wait_count > timeout*10:
+                self.fail("Timeout while waiting for {} window to {}".format(
+                    title, "show" if show else "hide")
+                )
+            time.sleep(0.1)
+
+    def enter_keys_in_window(self, title, keys):
+        """
+        Search for window with given title, then enter listed keys there.
+        The function will wait for said window to appear.
+
+        :param title: title of window
+        :param keys: list of keys to enter, as for `xdotool key`
+        :return: None
+        """
+
+        # 'xdotool search --sync' sometimes crashes on some race when
+        # accessing window properties
+        self.wait_for_window(title)
+        command = ['xdotool', 'search', '--name', title,
+                   'windowactivate',
+                   'key'] + keys
+        subprocess.check_call(command)
+
+    def shutdown_and_wait(self, vm, timeout=60):
+        vm.shutdown()
+        while timeout > 0:
+            if not vm.is_running():
+                return
+            time.sleep(1)
+            timeout -= 1
+        self.fail("Timeout while waiting for VM {} shutdown".format(vm.name))
+
+
 class BackupTestsMixin(SystemTestsMixin):
     def setUp(self):
         super(BackupTestsMixin, self).setUp()
@@ -7,39 +416,28 @@ class BackupTestsMixin(SystemTestsMixin):
         if self.verbose:
             print >>sys.stderr, "-> Creating backupvm"
 
-        # TODO: allow non-default template
-        self.backupvm = self.qc.add_new_vm("QubesAppVm",
-            name=self.make_vm_name('backupvm'),
-            template=self.qc.get_default_template())
-        self.backupvm.create_on_disk(verbose=self.verbose)
-
         self.backupdir = os.path.join(os.environ["HOME"], "test-backup")
         if os.path.exists(self.backupdir):
             shutil.rmtree(self.backupdir)
         os.mkdir(self.backupdir)
 
-
     def tearDown(self):
         super(BackupTestsMixin, self).tearDown()
         shutil.rmtree(self.backupdir)
 
-
     def print_progress(self, progress):
         if self.verbose:
             print >> sys.stderr, "\r-> Backing up files: {0}%...".format(progress)
 
-
     def error_callback(self, message):
         self.error_detected.put(message)
         if self.verbose:
             print >> sys.stderr, "ERROR: {0}".format(message)
 
-
     def print_callback(self, msg):
         if self.verbose:
             print msg
 
-
     def fill_image(self, path, size=None, sparse=False):
         block_size = 4096
 
@@ -58,17 +456,27 @@ class BackupTestsMixin(SystemTestsMixin):
 
         f.close()
 
-
     # NOTE: this was create_basic_vms
     def create_backup_vms(self):
         template=self.qc.get_default_template()
 
         vms = []
+        vmname = self.make_vm_name('test-net')
+        if self.verbose:
+            print >>sys.stderr, "-> Creating %s" % vmname
+        testnet = self.qc.add_new_vm('QubesNetVm',
+            name=vmname, template=template)
+        testnet.create_on_disk(verbose=self.verbose)
+        vms.append(testnet)
+        self.fill_image(testnet.private_img, 20*1024*1024)
+
         vmname = self.make_vm_name('test1')
         if self.verbose:
             print >>sys.stderr, "-> Creating %s" % vmname
         testvm1 = self.qc.add_new_vm('QubesAppVm',
             name=vmname, template=template)
+        testvm1.uses_default_netvm = False
+        testvm1.netvm = testnet
         testvm1.create_on_disk(verbose=self.verbose)
         vms.append(testvm1)
         self.fill_image(testvm1.private_img, 100*1024*1024)
@@ -85,9 +493,8 @@ class BackupTestsMixin(SystemTestsMixin):
 
         return vms
 
-
     def make_backup(self, vms, prepare_kwargs=dict(), do_kwargs=dict(),
-            target=None):
+                    target=None, expect_failure=False):
         # XXX: bakup_prepare and backup_do don't support host_collection
         self.qc.unlock_db()
         if target is None:
@@ -98,20 +505,26 @@ class BackupTestsMixin(SystemTestsMixin):
                                       print_callback=self.print_callback,
                                       **prepare_kwargs)
         except qubes.qubes.QubesException as e:
-            self.fail("QubesException during backup_prepare: %s" % str(e))
+            if not expect_failure:
+                self.fail("QubesException during backup_prepare: %s" % str(e))
+            else:
+                raise
 
         try:
             qubes.backup.backup_do(target, files_to_backup, "qubes",
                              progress_callback=self.print_progress,
                              **do_kwargs)
         except qubes.qubes.QubesException as e:
-            self.fail("QubesException during backup_do: %s" % str(e))
+            if not expect_failure:
+                self.fail("QubesException during backup_do: %s" % str(e))
+            else:
+                raise
 
         self.qc.lock_db_for_writing()
         self.qc.load()
 
-
-    def restore_backup(self, source=None, appvm=None, options=None):
+    def restore_backup(self, source=None, appvm=None, options=None,
+                       expect_errors=None):
         if source is None:
             backupfile = os.path.join(self.backupdir,
                                       sorted(os.listdir(self.backupdir))[-1])
@@ -140,16 +553,43 @@ class BackupTestsMixin(SystemTestsMixin):
         self.qc.load()
 
         errors = []
+        if expect_errors is None:
+            expect_errors = []
         while not self.error_detected.empty():
-            errors.append(self.error_detected.get())
+            current_error = self.error_detected.get()
+            if any(map(current_error.startswith, expect_errors)):
+                continue
+            errors.append(current_error)
         self.assertTrue(len(errors) == 0,
                          "Error(s) detected during backup_restore_do: %s" %
                          '\n'.join(errors))
         if not appvm and not os.path.isdir(backupfile):
             os.unlink(backupfile)
 
-
     def create_sparse(self, path, size):
         f = open(path, "w")
         f.truncate(size)
         f.close()
+
+
+def load_tests(loader, tests, pattern):
+    # discard any tests from this module, because it hosts base classes
+    tests = unittest.TestSuite()
+
+    for modname in (
+            'qubes.tests.basic',
+            'qubes.tests.dom0_update',
+            'qubes.tests.network',
+            'qubes.tests.vm_qrexec_gui',
+            'qubes.tests.backup',
+            'qubes.tests.backupcompatibility',
+            'qubes.tests.regressions',
+            'qubes.tests.storage',
+            'qubes.tests.storage_xen',
+            ):
+        tests.addTests(loader.loadTestsFromName(modname))
+
+    return tests
+
+
+# vim: ts=4 sw=4 et
diff --git a/tests/backup.py b/tests/backup.py
index c48c30e9..72463c91 100644
--- a/tests/backup.py
+++ b/tests/backup.py
@@ -28,7 +28,7 @@ import os
 
 import unittest
 import sys
-
+from qubes.qubes import QubesException, QubesTemplateVm
 import qubes.tests
 
 class TC_00_Backup(qubes.tests.BackupTestsMixin, qubes.tests.QubesTestCase):
@@ -63,7 +63,6 @@ class TC_00_Backup(qubes.tests.BackupTestsMixin, qubes.tests.QubesTestCase):
         self.restore_backup()
         self.remove_vms(vms)
 
-
     def test_004_sparse_multipart(self):
         vms = []
 
@@ -85,9 +84,84 @@ class TC_00_Backup(qubes.tests.BackupTestsMixin, qubes.tests.QubesTestCase):
         self.restore_backup()
         self.remove_vms(vms)
 
+    def test_005_compressed_custom(self):
+        vms = self.create_backup_vms()
+        self.make_backup(vms, do_kwargs={'compressed': "bzip2"})
+        self.remove_vms(vms)
+        self.restore_backup()
+        self.remove_vms(vms)
 
-    # TODO: iterate over templates
-    def test_100_send_to_vm(self):
+    def test_100_backup_dom0_no_restore(self):
+        self.make_backup([self.qc[0]])
+        # TODO: think of some safe way to test restore...
+
+    def test_200_restore_over_existing_directory(self):
+        """
+        Regression test for #1386
+        :return:
+        """
+        vms = self.create_backup_vms()
+        self.make_backup(vms)
+        self.remove_vms(vms)
+        test_dir = vms[0].dir_path
+        os.mkdir(test_dir)
+        with open(os.path.join(test_dir, 'some-file.txt'), 'w') as f:
+            f.write('test file\n')
+        self.restore_backup(
+            expect_errors=[
+                '*** Directory {} already exists! It has been moved'.format(
+                    test_dir)
+            ])
+        self.remove_vms(vms)
+
+    def test_210_auto_rename(self):
+        """
+        Test for #869
+        :return:
+        """
+        vms = self.create_backup_vms()
+        self.make_backup(vms)
+        self.restore_backup(options={
+            'rename-conflicting': True
+        })
+        for vm in vms:
+            self.assertIsNotNone(self.qc.get_vm_by_name(vm.name+'1'))
+            restored_vm = self.qc.get_vm_by_name(vm.name+'1')
+            if vm.netvm and not vm.uses_default_netvm:
+                self.assertEqual(restored_vm.netvm.name, vm.netvm.name+'1')
+
+        self.remove_vms(vms)
+
+class TC_10_BackupVMMixin(qubes.tests.BackupTestsMixin):
+    def setUp(self):
+        super(TC_10_BackupVMMixin, self).setUp()
+        self.backupvm = self.qc.add_new_vm(
+            "QubesAppVm",
+            name=self.make_vm_name('backupvm'),
+            template=self.qc.get_vm_by_name(self.template)
+        )
+        self.backupvm.create_on_disk(verbose=self.verbose)
+
+    def test_100_send_to_vm_file_with_spaces(self):
+        vms = self.create_backup_vms()
+        self.backupvm.start()
+        self.backupvm.run("mkdir '/var/tmp/backup directory'", wait=True)
+        self.make_backup(vms,
+                         do_kwargs={
+                             'appvm': self.backupvm,
+                             'compressed': True,
+                             'encrypted': True},
+                         target='/var/tmp/backup directory')
+        self.remove_vms(vms)
+        p = self.backupvm.run("ls /var/tmp/backup*/qubes-backup*",
+                              passio_popen=True)
+        (backup_path, _) = p.communicate()
+        backup_path = backup_path.strip()
+        self.restore_backup(source=backup_path,
+                            appvm=self.backupvm)
+        self.remove_vms(vms)
+
+    def test_110_send_to_vm_command(self):
         vms = self.create_backup_vms()
         self.backupvm.start()
         self.make_backup(vms,
@@ -100,3 +174,52 @@ class TC_00_Backup(qubes.tests.BackupTestsMixin, qubes.tests.QubesTestCase):
         self.restore_backup(source='dd if=/var/tmp/backup-test',
                             appvm=self.backupvm)
         self.remove_vms(vms)
+
+    def test_110_send_to_vm_no_space(self):
+        """
+        Check whether backup properly report failure when no enough space is
+        available
+        :return:
+        """
+        vms = self.create_backup_vms()
+        self.backupvm.start()
+        retcode = self.backupvm.run(
+            "truncate -s 50M /home/user/backup.img && "
+            "mkfs.ext4 -F /home/user/backup.img && "
+            "mkdir /home/user/backup && "
+            "mount /home/user/backup.img /home/user/backup -o loop &&"
+            "chmod 777 /home/user/backup",
+            user="root", wait=True)
+        if retcode != 0:
+            raise RuntimeError("Failed to prepare backup directory")
+        with self.assertRaises(QubesException):
+            self.make_backup(vms,
+                             do_kwargs={
+                                 'appvm': self.backupvm,
+                                 'compressed': False,
+                                 'encrypted': True},
+                             target='/home/user/backup',
+                             expect_failure=True)
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+        self.remove_vms(vms)
+
+
+def load_tests(loader, tests, pattern):
+    try:
+        qc = qubes.qubes.QubesVmCollection()
+        qc.lock_db_for_reading()
+        qc.load()
+        qc.unlock_db()
+        templates = [vm.name for vm in qc.values() if
+                     isinstance(vm, QubesTemplateVm)]
+    except OSError:
+        templates = []
+    for template in templates:
+        tests.addTests(loader.loadTestsFromTestCase(
+            type(
+                'TC_10_BackupVM_' + template,
+                (TC_10_BackupVMMixin, qubes.tests.QubesTestCase),
+                {'template': template})))
+
+    return tests
diff --git a/tests/backupcompatibility.py b/tests/backupcompatibility.py
index 71df0db8..775db92f 100644
--- a/tests/backupcompatibility.py
+++ b/tests/backupcompatibility.py
@@ -28,6 +28,7 @@ import subprocess
 
 import unittest
 import sys
+import re
 from qubes.qubes import QubesVmCollection, QubesException
 from qubes import backup
 
@@ -49,9 +50,39 @@ QUBESXML_R2B2 = '''
   <QubesProxyVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="12" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-testproxy.conf" label="red" template_qid="1" kernelopts="" memory="200" default_user="user" netvm_qid="3" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-testproxy" netid="3" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/test-testproxy"/>
   <QubesProxyVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="13" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="testproxy2.conf" label="red" template_qid="9" kernelopts="" memory="200" default_user="user" netvm_qid="2" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="testproxy2" netid="4" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/testproxy2"/>
   <QubesHVm installed_by_rpm="False" netvm_qid="none" qid="14" include_in_backups="True" timezone="localtime" qrexec_timeout="60" conf_file="test-testhvm.conf" label="purple" template_qid="none" internal="False" memory="512" uses_default_netvm="True" services="{'meminfo-writer': False}" default_user="user" pcidevs="[]" name="test-testhvm" qrexec_installed="False" private_img="private.img" drive="None" vcpus="2" root_img="root.img" guiagent_installed="False" debug="False" dir_path="/var/lib/qubes/appvms/test-testhvm"/>
+  <QubesDisposableVm dispid="50" firewall_conf="firewall.xml" label="red" name="disp50" netvm_qid="2" qid="15" template_qid="1"/>
 </QubesVmCollection>
 '''
 
+QUBESXML_R2 = '''
+<QubesVmCollection updatevm="3" default_kernel="3.7.6-2" default_netvm="3" default_fw_netvm="2" default_template="1" clockvm="2">
+  <QubesTemplateVm installed_by_rpm="True" kernel="3.7.6-2" uses_default_kernelopts="True" qid="1" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="fedora-20-x64.conf" label="black" template_qid="none" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{ 'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="fedora-20-x64" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/vm-templates/fedora-20-x64"/>
+  <QubesNetVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="2" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="netvm.conf" label="red" template_qid="1" kernelopts="iommu=soft swiotlb=4096" memory="200" default_user="user" volatile_img="volatile.img" services="{'ntpd': False, 'meminfo-writer': False}" maxmem="1535" pcidevs="['02:00.0', '03:00.0']" name="netvm" netid="1" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/netvm"/>
+  <QubesProxyVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="3" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="firewallvm.conf" label="green" template_qid="1" kernelopts="" memory="200" default_user="user" netvm_qid="2" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="firewallvm" netid="2" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/firewallvm"/>
+  <QubesAppVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="4" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="True" conf_file="fedora-20-x64-dvm.conf" label="gray" template_qid="1" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{ 'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="fedora-20-x64-dvm" private_img="private.img" vcpus="1" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/fedora-20-x64-dvm"/>
+  <QubesAppVm backup_content="True" backup_path="appvms/test-work" installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="5" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-work.conf" label="green" template_qid="1" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-work" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/test-work"/>
+  <QubesAppVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="6" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="banking.conf" label="green" template_qid="1" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="banking" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/banking"/>
+  <QubesAppVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="7" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="personal.conf" label="yellow" template_qid="1" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="personal" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/personal"/>
+  <QubesAppVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="8" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="untrusted.conf" label="red" template_qid="1" kernelopts="" memory="400" default_user="user" netvm_qid="12" uses_default_netvm="False" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="untrusted" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/untrusted"/>
+  <QubesTemplateVm backup_size="104857600" backup_content="True" backup_path="vm-templates/test-template-clone" installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="9" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-template-clone.conf" label="green" template_qid="none" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-template-clone" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/vm-templates/test-template-clone"/>
+  <QubesAppVm backup_size="104857600" backup_content="True" backup_path="appvms/test-custom-template-appvm" installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="10" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-custom-template-appvm.conf" label="yellow" template_qid="9" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-custom-template-appvm" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/test-custom-template-appvm"/>
+  <QubesAppVm backup_size="104857600" backup_content="True" backup_path="appvms/test-standalonevm" installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="11" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-standalonevm.conf" label="blue" template_qid="none" kernelopts="" memory="400" default_user="user" netvm_qid="3" uses_default_netvm="True" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-standalonevm" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/appvms/test-standalonevm"/>
+  <QubesProxyVm backup_size="104857600" backup_content="True" backup_path="servicevms/test-testproxy" installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="12" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="test-testproxy.conf" label="red" template_qid="1" kernelopts="" memory="200" default_user="user" netvm_qid="3" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="test-testproxy" netid="3" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/test-testproxy"/>
+  <QubesProxyVm installed_by_rpm="False" kernel="3.7.6-2" uses_default_kernelopts="True" qid="13" include_in_backups="True" uses_default_kernel="True" qrexec_timeout="60" internal="False" conf_file="testproxy2.conf" label="red" template_qid="9" kernelopts="" memory="200" default_user="user" netvm_qid="2" volatile_img="volatile.img" services="{'meminfo-writer': True}" maxmem="1535" pcidevs="[]" name="testproxy2" netid="4" private_img="private.img" vcpus="2" root_img="root.img" debug="False" dir_path="/var/lib/qubes/servicevms/testproxy2"/>
+  <QubesHVm backup_size="104857600" backup_content="True" backup_path="appvms/test-testhvm" installed_by_rpm="False" netvm_qid="none" qid="14" include_in_backups="True" timezone="localtime" qrexec_timeout="60" conf_file="test-testhvm.conf" label="purple" template_qid="none" internal="False" memory="512" uses_default_netvm="True" services="{'meminfo-writer': False}" default_user="user" pcidevs="[]" name="test-testhvm" qrexec_installed="False" private_img="private.img" drive="None" vcpus="2" root_img="root.img" guiagent_installed="False" debug="False" dir_path="/var/lib/qubes/appvms/test-testhvm"/>
+  <QubesDisposableVm dispid="50" firewall_conf="firewall.xml" label="red" name="disp50" netvm_qid="2" qid="15" template_qid="1"/>
+</QubesVmCollection>
+'''
+
+MANGLED_SUBDIRS_R2 = {
+    "test-work": "vm5",
+    "test-template-clone": "vm9",
+    "test-custom-template-appvm": "vm10",
+    "test-standalonevm": "vm11",
+    "test-testproxy": "vm12",
+    "test-testhvm": "vm14",
+}
+
 APPTEMPLATE_R2B2 = '''
 [Desktop Entry]
 Name=%VMNAME%: {name}
@@ -106,6 +137,13 @@ QUBESXML_R1 = '''<?xml version='1.0' encoding='UTF-8'?>
 <QubesVmCollection clockvm="2" default_fw_netvm="2" default_kernel="3.2.7-10" default_netvm="3" default_template="1" updatevm="3"><QubesTemplateVm conf_file="fedora-17-x64.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/vm-templates/fedora-17-x64" include_in_backups="True" installed_by_rpm="True" internal="False" kernel="3.2.7-10" kernelopts="" label="gray" maxmem="4063" memory="400" name="fedora-17-x64" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="1" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="none" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesNetVm conf_file="netvm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/servicevms/netvm" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="iommu=soft swiotlb=2048" label="red" maxmem="4063" memory="200" name="netvm" netid="1" pcidevs="[&apos;00:19.0&apos;, &apos;03:00.0&apos;]" private_img="private.img" qid="2" root_img="root.img" services="{&apos;ntpd&apos;: False, &apos;meminfo-writer&apos;: False}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" vcpus="2" volatile_img="volatile.img" /><QubesProxyVm conf_file="firewallvm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/servicevms/firewallvm" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="green" maxmem="4063" memory="200" name="firewallvm" netid="2" netvm_qid="2" pcidevs="[]" private_img="private.img" qid="3" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="fedora-17-x64-dvm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/fedora-17-x64-dvm" include_in_backups="True" installed_by_rpm="False" internal="True" kernel="3.2.7-10" kernelopts="" label="gray" maxmem="4063" memory="400" name="fedora-17-x64-dvm" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="4" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="1" volatile_img="volatile.img" /><QubesAppVm conf_file="test-work.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/test-work" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="green" maxmem="4063" memory="400" name="test-work" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="5" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="personal.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/personal" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="yellow" maxmem="4063" memory="400" name="personal" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="6" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="banking.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/banking" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="green" maxmem="4063" memory="400" name="banking" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="7" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="untrusted.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/untrusted" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="red" maxmem="4063" memory="400" name="untrusted" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="8" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="test-standalonevm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/test-standalonevm" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="None" kernelopts="" label="red" maxmem="4063" memory="400" name="test-standalonevm" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="9" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="none" uses_default_kernel="False" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="test-testvm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/test-testvm" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="red" mac="00:16:3E:5E:6C:55" maxmem="4063" memory="400" name="test-testvm" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="10" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesTemplateVm conf_file="test-template-clone.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/vm-templates/test-template-clone" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="gray" maxmem="4063" memory="400" name="test-template-clone" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="11" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="none" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesAppVm conf_file="test-custom-template-appvm.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/appvms/test-custom-template-appvm" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="yellow" maxmem="4063" memory="400" name="test-custom-template-appvm" netvm_qid="3" pcidevs="[]" private_img="private.img" qid="12" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="11" uses_default_kernel="True" uses_default_kernelopts="True" uses_default_netvm="True" vcpus="2" volatile_img="volatile.img" /><QubesProxyVm conf_file="test-testproxy.conf" debug="False" default_user="user" dir_path="/var/lib/qubes/servicevms/test-testproxy" include_in_backups="True" installed_by_rpm="False" internal="False" kernel="3.2.7-10" kernelopts="" label="yellow" maxmem="4063" memory="200" name="test-testproxy" netid="3" netvm_qid="2" pcidevs="[]" private_img="private.img" qid="13" root_img="root.img" services="{&apos;meminfo-writer&apos;: True}" template_qid="1" uses_default_kernel="True" uses_default_kernelopts="True" vcpus="2" volatile_img="volatile.img" /></QubesVmCollection>
 '''
 
+BACKUP_HEADER_R2 = '''version=3
+hmac-algorithm=SHA512
+crypto-algorithm=aes-256-cbc
+encrypted={encrypted}
+compressed={compressed}
+compression-filter=gzip
+'''
 
 class TC_00_BackupCompatibility(qubes.tests.BackupTestsMixin, qubes.tests.QubesTestCase):
     def create_whitelisted_appmenus(self, filename):
@@ -243,6 +281,118 @@ class TC_00_BackupCompatibility(qubes.tests.BackupTestsMixin, qubes.tests.QubesT
                 "vm-templates/test-template-clone")),
             appmenus_list)
 
+    def calculate_hmac(self, f_name, algorithm="sha512", password="qubes"):
+        subprocess.check_call(["openssl", "dgst", "-"+algorithm, "-hmac",
+                               password],
+                              stdin=open(self.fullpath(f_name), "r"),
+                              stdout=open(self.fullpath(f_name+".hmac"), "w"))
+
+    def append_backup_stream(self, f_name, stream, basedir=None):
+        if not basedir:
+            basedir = self.backupdir
+        subprocess.check_call(["tar", "-cO", "--posix", "-C", basedir,
+                               f_name],
+                              stdout=stream)
+
+    def handle_v3_file(self, f_name, subdir, stream, compressed=True,
+                       encrypted=True):
+        # create inner archive
+        tar_cmdline = ["tar", "-Pc", '--sparse',
+               '-C', self.fullpath(os.path.dirname(f_name)),
+               '--xform', 's:^%s:%s\\0:' % (
+                   os.path.basename(f_name),
+                   subdir),
+               os.path.basename(f_name)
+               ]
+        if compressed:
+            tar_cmdline.insert(-1, "--use-compress-program=%s" % "gzip")
+        tar = subprocess.Popen(tar_cmdline, stdout=subprocess.PIPE)
+        if encrypted:
+            encryptor = subprocess.Popen(
+                ["openssl", "enc", "-e", "-aes-256-cbc", "-pass", "pass:qubes"],
+                stdin=tar.stdout,
+                stdout=subprocess.PIPE)
+            data = encryptor.stdout
+        else:
+            data = tar.stdout
+
+        stage1_dir = self.fullpath(os.path.join("stage1", subdir))
+        if not os.path.exists(stage1_dir):
+            os.makedirs(stage1_dir)
+        subprocess.check_call(["split", "--numeric-suffixes",
+                               "--suffix-length=3",
+                               "--bytes="+str(100*1024*1024), "-",
+                               os.path.join(stage1_dir,
+                                            os.path.basename(f_name+"."))],
+                              stdin=data)
+
+        for part in sorted(os.listdir(stage1_dir)):
+            if not re.match(
+                    r"^{}.[0-9][0-9][0-9]$".format(os.path.basename(f_name)),
+                    part):
+                continue
+            part_with_dir = os.path.join(subdir, part)
+            self.calculate_hmac(os.path.join("stage1", part_with_dir))
+            self.append_backup_stream(part_with_dir, stream,
+                                      basedir=self.fullpath("stage1"))
+            self.append_backup_stream(part_with_dir+".hmac", stream,
+                                      basedir=self.fullpath("stage1"))
+
+    def create_v3_backup(self, encrypted=True, compressed=True):
+        """
+        Create "backup format 3" backup - used in R2 and R3.0
+
+        :param encrypt: Should the backup be encrypted
+        :return:
+        """
+        output = open(self.fullpath("backup.bin"), "w")
+        f = open(self.fullpath("backup-header"), "w")
+        f.write(BACKUP_HEADER_R2.format(
+            encrypted=str(encrypted),
+            compressed=str(compressed)
+        ))
+        f.close()
+        self.calculate_hmac("backup-header")
+        self.append_backup_stream("backup-header", output)
+        self.append_backup_stream("backup-header.hmac", output)
+        f = open(self.fullpath("qubes.xml"), "w")
+        if encrypted:
+            qubesxml = QUBESXML_R2
+            for vmname, subdir in MANGLED_SUBDIRS_R2.items():
+                qubesxml = re.sub(r"[a-z-]*/{}".format(vmname),
+                                  subdir, qubesxml)
+            f.write(qubesxml)
+        else:
+            f.write(QUBESXML_R2)
+        f.close()
+
+        self.handle_v3_file("qubes.xml", "", output, encrypted=encrypted,
+                            compressed=compressed)
+
+        self.create_v1_files(r2b2=True)
+        for vm_type in ["appvms", "servicevms"]:
+            for vm_name in os.listdir(self.fullpath(vm_type)):
+                vm_dir = os.path.join(vm_type, vm_name)
+                for f_name in os.listdir(self.fullpath(vm_dir)):
+                    if encrypted:
+                        subdir = MANGLED_SUBDIRS_R2[vm_name]
+                    else:
+                        subdir = vm_dir
+                    self.handle_v3_file(
+                        os.path.join(vm_dir, f_name),
+                        subdir+'/', output, encrypted=encrypted)
+
+        for vm_name in os.listdir(self.fullpath("vm-templates")):
+            vm_dir = os.path.join("vm-templates", vm_name)
+            if encrypted:
+                subdir = MANGLED_SUBDIRS_R2[vm_name]
+            else:
+                subdir = vm_dir
+            self.handle_v3_file(
+                os.path.join(vm_dir, "."),
+                subdir+'/', output, encrypted=encrypted)
+
+        output.close()
 
     def test_100_r1(self):
         self.create_v1_files(r2b2=False)
@@ -285,3 +435,39 @@ class TC_00_BackupCompatibility(qubes.tests.BackupTestsMixin, qubes.tests.QubesT
         self.assertEqual(self.qc.get_vm_by_name("test-custom-template-appvm")
                          .template,
                          self.qc.get_vm_by_name("test-template-clone"))
+
+    def test_210_r2(self):
+        self.create_v3_backup(False)
+
+        self.restore_backup(self.fullpath("backup.bin"), options={
+            'use-default-template': True,
+            'use-default-netvm': True,
+        })
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-template-clone"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-testproxy"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-work"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-testhvm"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-standalonevm"))
+        self.assertIsNotNone(self.qc.get_vm_by_name(
+            "test-custom-template-appvm"))
+        self.assertEqual(self.qc.get_vm_by_name("test-custom-template-appvm")
+                         .template,
+                         self.qc.get_vm_by_name("test-template-clone"))
+
+    def test_220_r2_encrypted(self):
+        self.create_v3_backup(True)
+
+        self.restore_backup(self.fullpath("backup.bin"), options={
+            'use-default-template': True,
+            'use-default-netvm': True,
+        })
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-template-clone"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-testproxy"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-work"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-testhvm"))
+        self.assertIsNotNone(self.qc.get_vm_by_name("test-standalonevm"))
+        self.assertIsNotNone(self.qc.get_vm_by_name(
+            "test-custom-template-appvm"))
+        self.assertEqual(self.qc.get_vm_by_name("test-custom-template-appvm")
+                         .template,
+                         self.qc.get_vm_by_name("test-template-clone"))
diff --git a/tests/dom0_update.py b/tests/dom0_update.py
index 6c4a20e9..12fcc95d 100644
--- a/tests/dom0_update.py
+++ b/tests/dom0_update.py
@@ -34,8 +34,10 @@ VM_PREFIX = "test-"
 @unittest.skipUnless(os.path.exists('/usr/bin/rpmsign') and
                      os.path.exists('/usr/bin/rpmbuild'),
                      'rpm-sign and/or rpm-build not installed')
-class TC_00_Dom0Upgrade(qubes.tests.QubesTestCase):
-    cleanup_paths = []
+class TC_00_Dom0UpgradeMixin(qubes.tests.SystemTestsMixin):
+    """
+    Tests for downloading dom0 updates using VMs based on different templates
+    """
     pkg_name = 'qubes-test-pkg'
     dom0_update_common_opts = ['--disablerepo=*', '--enablerepo=test',
                                '--setopt=test.copy_local=1']
@@ -70,10 +72,9 @@ Expire-Date: 0
 
     @classmethod
     def setUpClass(cls):
-        super(TC_00_Dom0Upgrade, cls).setUpClass()
+        super(TC_00_Dom0UpgradeMixin, cls).setUpClass()
 
         cls.tmpdir = tempfile.mkdtemp()
-        cls.cleanup_paths += [cls.tmpdir]
 
         cls.keyid = cls.generate_key(cls.tmpdir)
 
@@ -95,17 +96,14 @@ enabled = 1
         subprocess.check_call(['sudo', 'rm', '-f',
                                '/etc/yum.repos.d/test.repo'])
 
-        for dir in cls.cleanup_paths:
-            shutil.rmtree(dir)
-        cls.cleanup_paths = []
+        shutil.rmtree(cls.tmpdir)
 
     def setUp(self):
-        self.qc = QubesVmCollection()
-        self.qc.lock_db_for_writing()
-        self.qc.load()
-        self.updatevm = self.qc.add_new_vm("QubesProxyVm",
-                                           name="%supdatevm" % VM_PREFIX,
-                                           template=self.qc.get_default_template())
+        super(TC_00_Dom0UpgradeMixin, self).setUp()
+        self.updatevm = self.qc.add_new_vm(
+            "QubesProxyVm",
+            name=self.make_vm_name("updatevm"),
+            template=self.qc.get_vm_by_name(self.template))
         self.updatevm.create_on_disk(verbose=False)
         self.saved_updatevm = self.qc.get_updatevm_vm()
         self.qc.set_updatevm_vm(self.updatevm)
@@ -117,35 +115,13 @@ enabled = 1
                                os.path.join(self.tmpdir, 'pubkey.asc')])
         self.updatevm.start()
 
-
-    def remove_vms(self, vms):
+    def tearDown(self):
         self.qc.lock_db_for_writing()
         self.qc.load()
 
         self.qc.set_updatevm_vm(self.qc[self.saved_updatevm.qid])
-
-        for vm in vms:
-            if isinstance(vm, str):
-                vm = self.qc.get_vm_by_name(vm)
-            else:
-                vm = self.qc[vm.qid]
-            if vm.is_running():
-                try:
-                    vm.force_shutdown()
-                except:
-                    pass
-            try:
-                vm.remove_from_disk()
-            except OSError:
-                pass
-            self.qc.pop(vm.qid)
         self.qc.save()
-        self.qc.unlock_db()
-
-    def tearDown(self):
-        vmlist = [vm for vm in self.qc.values() if vm.name.startswith(
-            VM_PREFIX)]
-        self.remove_vms(vmlist)
+        super(TC_00_Dom0UpgradeMixin, self).tearDown()
 
         subprocess.call(['sudo', 'rpm', '-e', self.pkg_name], stderr=open(
             os.devnull, 'w'))
@@ -202,7 +178,13 @@ Test package
         p.stdin.write(open(filename).read())
         p.stdin.close()
         p.wait()
-        self.updatevm.run('cd /tmp/repo; createrepo .', wait=True)
+        retcode = self.updatevm.run('cd /tmp/repo; createrepo .', wait=True)
+        if retcode == 127:
+            self.skipTest("createrepo not installed in template {}".format(
+                self.template))
+        elif retcode != 0:
+            self.skipTest("createrepo failed with code {}, cannot perform the "
+                      "test".format(retcode))
 
     def test_000_update(self):
         filename = self.create_pkg(self.tmpdir, self.pkg_name, '1.0')
@@ -297,3 +279,23 @@ Test package
             self.pkg_name)], stdout=open('/dev/null', 'w'))
         self.assertEqual(retcode, 1,
                          'UNSIGNED package {}-1.0 installed'.format(self.pkg_name))
+
+
+def load_tests(loader, tests, pattern):
+    try:
+        qc = qubes.qubes.QubesVmCollection()
+        qc.lock_db_for_reading()
+        qc.load()
+        qc.unlock_db()
+        templates = [vm.name for vm in qc.values() if
+                     isinstance(vm, qubes.qubes.QubesTemplateVm)]
+    except OSError:
+        templates = []
+    for template in templates:
+        tests.addTests(loader.loadTestsFromTestCase(
+            type(
+                'TC_00_Dom0Upgrade_' + template,
+                (TC_00_Dom0UpgradeMixin, qubes.tests.QubesTestCase),
+                {'template': template})))
+
+    return tests
diff --git a/tests/network.py b/tests/network.py
index aee14b10..ce93cb9f 100644
--- a/tests/network.py
+++ b/tests/network.py
@@ -320,12 +320,323 @@ class VmNetworkingMixin(qubes.tests.SystemTestsMixin):
         self.testvm1.start()
 
         self.assertEqual(self.run_cmd(self.testvm1, self.ping_ip), 0)
-        self.testvm1.run("ip addr flush dev eth0", user="root")
-        self.testvm1.run("ip addr add 10.137.1.128/24 dev eth0", user="root")
-        self.testvm1.run("ip route add dev eth0", user="root")
+        self.testvm1.run("ip addr flush dev eth0", user="root", wait=True)
+        self.testvm1.run("ip addr add 10.137.1.128/24 dev eth0", user="root",
+                         wait=True)
+        self.testvm1.run("ip route add default dev eth0", user="root",
+                         wait=True)
         self.assertNotEqual(self.run_cmd(self.testvm1, self.ping_ip), 0,
                          "Spoofed ping should be blocked")
 
+class VmUpdatesMixin(qubes.tests.SystemTestsMixin):
+    """
+    Tests for VM updates
+    """
+
+    # made this way to work also when no package build tools are installed
+    """
+    $ cat test-pkg.spec:
+    Name:		test-pkg
+    Version:	1.0
+    Release:	1%{?dist}
+    Summary:	Test package
+
+    Group:		System
+    License:	GPL
+    URL:		http://example.com/
+
+    %description
+    Test package
+
+    %files
+
+    %changelog
+    $ rpmbuild -bb test-pkg.spec
+    $ cat test-pkg-1.0-1.fc21.x86_64.rpm | gzip | base64
+    """
+    RPM_PACKAGE_GZIP_BASE64 = (
+        "H4sIAPzRLlYAA+2Y728URRjHn7ueUCkERKJVJDnTxLSxs7293o8WOER6ljYYrtKCLUSa3"
+        "bnZ64bd22VmTq8nr4wJbwxvjNHIG0x8oTHGGCHB8AcYE1/0lS80GgmQFCJU3wgB4ZjdfZ"
+        "q2xDe8NNlvMjfzmeeZH7tPbl98b35169cOUEpIJiTxT9SIrmVUs2hWh8dUAp54dOrM14s"
+        "JHK4D2DKl+j2qrVfjsuq3qEWbohjuAB2Lqk+p1o/8Z5QPmSi/YwnjezH+F8bLQZjqllW0"
+        "hvODRmFIL5hFk9JMXi/mi5ZuDleNwSEzP5wtmLnouNQnm3/6fndz7FLt9M/Hruj37gav4"
+        "tTjPnasWLFixYoVK1asWLFixYoV63+p0KNot9vnIPQc1vgYOwCSgXfxCoS+QzKHOVXVOj"
+        "Fn2ccIfI0k8nXkLuQbyJthxed4UrVnkG8i9yDfgsj3yCAv4foc8t+w1hf5B+Nl5Du43xj"
+        "yvxivIN9HpsgPkO2IU9uQfeRn8Xk/iJ4x1Y3nfxH1qecwfhH5+YgT25F7o/0SRdxvOppP"
+        "7MX9ZjB/DNnE/OOYX404uRGZIT+FbCFvQ3aQ8f0+/WF0XjJ8nyOw7H+BrmUA/a8pNZf2D"
+        "XrCqLG1cERbWHI8ajhznpBY9P0Tr8PkvJDMhTkp/Z0DA6xpuL7DNOq5A+DY9UYTmkOF2U"
+        "IO/sNt0wSnGvfdlZssD3rVIlLI9UUX37C6qXzHNntHPNfnTAhWHbUddtBwmegDjAUzZbu"
+        "m9lqZmzDmHc8Ik8WY8Tab4Myym4+Gx8V0qw8GtYyWIzrktEJwV9UHv3ktG471rAqHTmFQ"
+        "685V5uGqIalk06SWJr7tszR503Ac9cs493jJ8rhrSCIYbXBbzqt5v5+UZ0crh6bGR2dmJ"
+        "yuHD428VlLLLdakzJe2VxcKhFSFID73JKPS40RI7tXVCcQ3uOGWhPCJ2bAspiJ2i5Vy6n"
+        "jOqMerpEYpEe/Yks4xkU4Tt6BirmzUWanG6ozbFKhve9BsQRaLRTirzqk7hgUktXojKnf"
+        "n8jeg3X4QepP3i63po6oml+9t/CwJLya2Bn/ei6f7/4B3Ycdb0L3pt5Q5mNz16rWJ9fLk"
+        "vvOff/nxS7//8O2P2gvt7nDDnoV9L1du9N4+ucjl9u/8+a7dC5Nnvjlv9Ox5r+v9Cy0NE"
+        "m+c6rv60S/dZw98Gn6MNswcfQiWUvg3wBUAAA=="
+    )
+
+    """
+    Minimal package generated by running dh_make on empty directory
+    Then cat test-pkg_1.0-1_amd64.deb | gzip | base64
+    """
+    DEB_PACKAGE_GZIP_BASE64 = (
+        "H4sIACTXLlYAA1O0SSxKzrDjSklNykzM003KzEssqlRQUDA0MTG1NDQwNDVTUDBQAAEIa"
+        "WhgYGZioqBgogADCVxGegZcyfl5JUX5OXoliUV66VVE6DcwheuX7+ZgAAEW5rdXHb0PG4"
+        "iwf5j3WfMT6zWzzMuZgoE3jjYraNzbbFKWGms0SaRw/r2SV23WZ4IdP8preM4yqf0jt95"
+        "3c8qnacfNxJUkf9/w+/3X9ph2GEdgQdixrz/niHKKTnYXizf4oSC7tHOz2Zzq+/6vn8/7"
+        "ezQ7c1tmi7xZ3SGJ4yzhT2dcr7V+W3zM5ZPu/56PSv4Zdok+7Yv/V/6buWaKVlFkkV58S"
+        "N3GmLgnqzRmeZ3V3ymmurS5fGa85/LNx1bpZMin3S6dvXKqydp3ubP1vmyarJZb/qSh62"
+        "C8oIdxqm/BtvkGDza+On/Vfv2py7/0LV7VH+qR6a+bkKUbHXt5/SG187d+nps1a5PJfMO"
+        "i11dWcUe1HjwaW3Q5RHXn9LmcHy+tW9YcKf0768XVB1t3R0bKrzs5t9P+6r7rZ99svH10"
+        "+Q6F/o8tf1fO/32y+fWa14eifd+WxUy0jcxYH7N9/tUvmnUZL74pW32qLeuRU+ZwYGASa"
+        "GBgUWBgxM90ayy3VdmykkGDgYErJbEkERydFVWQmCMQo8aWZvAY/WteFRHFwMCYqXTPjI"
+        "lBkVEMGLsl+k8XP1D/z+gXyyDOvUemlnHqAVkvu0rRQ2fUFodkN3mtU9uwhqk8V+TqPEE"
+        "Nc7fzoQ4n71lqRs/7kbbT0+qOZuKH4r8mjzsc1k/YkCHN8Pjg48fbpE+teHa96LNcfu0V"
+        "5n2/Z2xa2KDvaCOx8cqBFxc514uZ3TmadXS+6cpzU7wSzq5SWfapJOD9n6wLXSwtlgxZh"
+        "xITzWW7buhx/bb291RcVlEfeC9K5hlrqunSzIMSZT7/Nqgc/qMvMNW227WI8ezB8mVuZh"
+        "0hERJSvysfburr4Dx0I9BW57UwR4+e1gxu49PcEt8sbK18Xpvt//Hj5UYm+Zc25q+T4xl"
+        "rJvxfVnh80oadq57OZxPaU1bbztv1yF365W4t45Yr+XrFzov237GVY1Zgf7NvE4+W2SuR"
+        "lQtLauR1TQ/mbOiIONYya6tU1jPGpWfk/i1+ttiXe3ZO14n0YOWggndznjGlGLyfVbBC6"
+        "MRP5aMM7aCco/s7sZqB8RlTQwADw8rnuT/sDHi7mUASjJFRAAbWwNLiAwAA"
+    )
+
+    def run_cmd(self, vm, cmd, user="root"):
+        p = vm.run(cmd, user=user, passio_popen=True, ignore_stderr=True)
+        p.stdin.close()
+        p.stdout.read()
+        return p.wait()
+
+    def setUp(self):
+        super(VmUpdatesMixin, self).setUp()
+
+        self.update_cmd = None
+        if self.template.count("debian"):
+            self.update_cmd = "set -o pipefail; apt-get update 2>&1 | " \
+                              "{ ! grep '^W:\|^E:'; }"
+            self.install_cmd = "apt-get install -y {}"
+            self.install_test_cmd = "dpkg -l {}"
+            self.exit_code_ok = [0]
+        elif self.template.count("fedora"):
+            cmd = "yum"
+            try:
+                # assume template name in form "fedora-XX-suffix"
+                if int(self.template.split("-")[1]) > 21:
+                    cmd = "dnf"
+            except ValueError:
+                pass
+            self.update_cmd = "{cmd} clean all; {cmd} check-update".format(
+                cmd=cmd)
+            self.install_cmd = cmd + " install -y {}"
+            self.install_test_cmd = "rpm -q {}"
+            self.exit_code_ok = [0, 100]
+        else:
+            self.skipTest("Template {} not supported by this test".format(
+                self.template))
+
+        self.testvm1 = self.qc.add_new_vm(
+            "QubesAppVm",
+            name=self.make_vm_name('vm1'),
+            template=self.qc.get_vm_by_name(self.template))
+        self.testvm1.create_on_disk(verbose=False)
+
+    def test_000_simple_update(self):
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+        # reload the VM to have all the properties properly set (especially
+        # default netvm)
+        self.testvm1 = self.qc[self.testvm1.qid]
+        self.testvm1.start()
+        p = self.testvm1.run(self.update_cmd, wait=True, user="root",
+                             passio_popen=True, passio_stderr=True)
+        (stdout, stderr) = p.communicate()
+        self.assertIn(p.wait(), self.exit_code_ok,
+                      "{}: {}\n{}".format(self.update_cmd, stdout, stderr)
+                      )
+
+    def create_repo_apt(self):
+        pkg_file_name = "test-pkg_1.0-1_amd64.deb"
+        p = self.netvm_repo.run("mkdir /tmp/apt-repo && cd /tmp/apt-repo &&"
+                                "base64 -d | zcat > {}".format(pkg_file_name),
+                                passio_popen=True)
+        p.stdin.write(self.DEB_PACKAGE_GZIP_BASE64)
+        p.stdin.close()
+        if p.wait() != 0:
+            raise RuntimeError("Failed to write {}".format(pkg_file_name))
+        # do not assume dpkg-scanpackage installed
+        packages_path = "dists/test/main/binary-amd64/Packages"
+        p = self.netvm_repo.run(
+            "mkdir -p /tmp/apt-repo/dists/test/main/binary-amd64 && "
+            "cd /tmp/apt-repo && "
+            "cat > {packages} && "
+            "echo MD5sum: $(openssl md5 -r {pkg} | cut -f 1 -d ' ')"
+            " >> {packages} && "
+            "echo SHA1: $(openssl sha1 -r {pkg} | cut -f 1 -d ' ')"
+            " >> {packages} && "
+            "echo SHA256: $(openssl sha256 -r {pkg} | cut -f 1 -d ' ')"
+            " >> {packages} && "
+            "gzip < {packages} > {packages}.gz".format(pkg=pkg_file_name,
+                                                       packages=packages_path),
+            passio_popen=True, passio_stderr=True)
+        p.stdin.write(
+            "Package: test-pkg\n"
+            "Version: 1.0-1\n"
+            "Architecture: amd64\n"
+            "Maintainer: unknown <user@host>\n"
+            "Installed-Size: 25\n"
+            "Filename: {pkg}\n"
+            "Size: 994\n"
+            "Section: unknown\n"
+            "Priority: optional\n"
+            "Description: Test package\n".format(pkg=pkg_file_name)
+        )
+        p.stdin.close()
+        if p.wait() != 0:
+            raise RuntimeError("Failed to write Packages file: {}".format(
+                p.stderr.read()))
+
+        p = self.netvm_repo.run(
+            "mkdir -p /tmp/apt-repo/dists/test && "
+            "cd /tmp/apt-repo/dists/test && "
+            "cat > Release <<EOF && "
+            "echo '' $(sha1sum {p} | cut -f 1 -d ' ') $(stat -c %s {p}) {p}"
+            " >> Release && "
+            "echo '' $(sha1sum {z} | cut -f 1 -d ' ') $(stat -c %s {z}) {z}"
+            " >> Release"
+            .format(p="main/binary-amd64/Packages",
+                    z="main/binary-amd64/Packages.gz"),
+            passio_popen=True, passio_stderr=True
+        )
+        p.stdin.write(
+            "Label: Test repo\n"
+            "Suite: test\n"
+            "Codename: test\n"
+            "Date: Tue, 27 Oct 2015 03:22:09 +0100\n"
+            "Architectures: amd64\n"
+            "Components: main\n"
+            "SHA1:\n"
+            "EOF\n"
+        )
+        p.stdin.close()
+        if p.wait() != 0:
+            raise RuntimeError("Failed to write Release file: {}".format(
+                p.stderr.read()))
+
+    def create_repo_yum(self):
+        pkg_file_name = "test-pkg-1.0-1.fc21.x86_64.rpm"
+        p = self.netvm_repo.run("mkdir /tmp/yum-repo && cd /tmp/yum-repo &&"
+                                "base64 -d | zcat > {}".format(pkg_file_name),
+                                passio_popen=True, passio_stderr=True)
+        p.stdin.write(self.RPM_PACKAGE_GZIP_BASE64)
+        p.stdin.close()
+        if p.wait() != 0:
+            raise RuntimeError("Failed to write {}: {}".format(pkg_file_name,
+                                                               p.stderr.read()))
+
+        # createrepo is installed by default in Fedora template
+        p = self.netvm_repo.run("createrepo /tmp/yum-repo",
+                                passio_popen=True,
+                                passio_stderr=True)
+        if p.wait() != 0:
+            raise RuntimeError("Failed to create yum metadata: {}".format(
+                p.stderr.read()))
+
+    def create_repo_and_serve(self):
+        if self.template.count("debian") or self.template.count("whonix"):
+            self.create_repo_apt()
+            self.netvm_repo.run("cd /tmp/apt-repo &&"
+                                "python -m SimpleHTTPServer 8080")
+        elif self.template.count("fedora"):
+            self.create_repo_yum()
+            self.netvm_repo.run("cd /tmp/yum-repo &&"
+                                "python -m SimpleHTTPServer 8080")
+        else:
+            # not reachable...
+            self.skipTest("Template {} not supported by this test".format(
+                self.template))
+
+    def configure_test_repo(self):
+        """
+        Configure test repository in test-vm and disable rest of them.
+        The critical part is to use "localhost" - this will work only when
+        accessed through update proxy and this is exactly what we want to
+        test here.
+        """
+
+        if self.template.count("debian") or self.template.count("whonix"):
+            self.testvm1.run(
+                "rm -f /etc/apt/sources.list.d/* &&"
+                "echo 'deb [trusted=yes] http://localhost:8080 test main' "
+                "> /etc/apt/sources.list",
+                user="root")
+        elif self.template.count("fedora"):
+            self.testvm1.run(
+                "rm -f /etc/yum.repos.d/*.repo &&"
+                "echo '[test]' > /etc/yum.repos.d/test.repo &&"
+                "echo 'name=Test repo' >> /etc/yum.repos.d/test.repo &&"
+                "echo 'gpgcheck=0' >> /etc/yum.repos.d/test.repo &&"
+                "echo 'baseurl=http://localhost:8080/'"
+                " >> /etc/yum.repos.d/test.repo",
+                user="root"
+            )
+        else:
+            # not reachable...
+            self.skipTest("Template {} not supported by this test".format(
+                self.template))
+
+    def test_010_update_via_proxy(self):
+        """
+        Test both whether updates proxy works and whether is actually used by the VM
+        """
+        if self.template.count("minimal"):
+            self.skipTest("Template {} not supported by this test".format(
+                self.template))
+
+        self.netvm_repo = self.qc.add_new_vm(
+            "QubesNetVm",
+            name=self.make_vm_name('net'),
+            template=self.qc.get_vm_by_name(self.template))
+        self.netvm_repo.create_on_disk(verbose=False)
+        self.testvm1.netvm = self.netvm_repo
+        # NetVM should have qubes-updates-proxy enabled by default
+        #self.netvm_repo.services['qubes-updates-proxy'] = True
+        # TODO: consider also adding a test for the template itself
+        self.testvm1.services['updates-proxy-setup'] = True
+        self.qc.save()
+        self.qc.unlock_db()
+
+        # Setup test repo
+        self.netvm_repo.start()
+        self.create_repo_and_serve()
+
+        # Configure local repo
+        self.testvm1.start()
+        self.configure_test_repo()
+
+        # update repository metadata
+        p = self.testvm1.run(self.update_cmd, wait=True, user="root",
+                             passio_popen=True, passio_stderr=True)
+        (stdout, stderr) = p.communicate()
+        self.assertIn(p.wait(), self.exit_code_ok,
+                      "{}: {}\n{}".format(self.update_cmd, stdout, stderr)
+                      )
+
+        # install test package
+        p = self.testvm1.run(self.install_cmd.format('test-pkg'),
+                             wait=True, user="root",
+                             passio_popen=True, passio_stderr=True)
+        (stdout, stderr) = p.communicate()
+        self.assertIn(p.wait(), self.exit_code_ok,
+                      "{}: {}\n{}".format(self.update_cmd, stdout, stderr)
+                      )
+
+        # verify if it was really installed
+        p = self.testvm1.run(self.install_test_cmd.format('test-pkg'),
+                             wait=True, user="root",
+                             passio_popen=True, passio_stderr=True)
+        (stdout, stderr) = p.communicate()
+        self.assertIn(p.wait(), self.exit_code_ok,
+                      "{}: {}\n{}".format(self.update_cmd, stdout, stderr)
+                      )
 
 def load_tests(loader, tests, pattern):
     try:
@@ -343,4 +654,9 @@ def load_tests(loader, tests, pattern):
                 'VmNetworking_' + template,
                 (VmNetworkingMixin, qubes.tests.QubesTestCase),
                 {'template': template})))
+        tests.addTests(loader.loadTestsFromTestCase(
+            type(
+                'VmUpdates_' + template,
+                (VmUpdatesMixin, qubes.tests.QubesTestCase),
+                {'template': template})))
     return tests
diff --git a/tests/regressions.py b/tests/regressions.py
index 70c03586..f61f3a2b 100644
--- a/tests/regressions.py
+++ b/tests/regressions.py
@@ -1,4 +1,5 @@
 #!/usr/bin/python2 -O
+# coding=utf-8
 
 #
 # The Qubes OS Project, https://www.qubes-os.org/
@@ -23,11 +24,14 @@
 #
 
 import multiprocessing
+import os
 import time
 import unittest
 
 import qubes.qubes
 import qubes.tests
+import subprocess
+
 
 class TC_00_Regressions(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
     # Bug: #906
@@ -56,3 +60,22 @@ class TC_00_Regressions(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase)
         self.assertIsNotNone(qc.get_vm_by_name(vmname1))
         self.assertIsNotNone(qc.get_vm_by_name(vmname2))
 
+    def test_bug_1389_dispvm_qubesdb_crash(self):
+        """
+        Sometimes QubesDB instance in DispVM crashes at startup.
+        Unfortunately we don't have reliable way to reproduce it, so try twice
+        :return:
+        """
+        self.qc.unlock_db()
+        for try_no in xrange(2):
+            p = subprocess.Popen(['/usr/lib/qubes/qfile-daemon-dvm',
+                                  'qubes.VMShell', 'dom0', 'DEFAULT'],
+                                 stdin=subprocess.PIPE,
+                                 stdout=subprocess.PIPE,
+                                 stderr=open(os.devnull, 'w'))
+            p.stdin.write("qubesdb-read /name || echo ERROR\n")
+            dispvm_name = p.stdout.readline()
+            p.stdin.close()
+            self.assertTrue(dispvm_name.startswith("disp"),
+                                 "Try {} failed".format(try_no))
+
diff --git a/tests/storage.py b/tests/storage.py
new file mode 100644
index 00000000..2c32fa73
--- /dev/null
+++ b/tests/storage.py
@@ -0,0 +1,77 @@
+# The Qubes OS Project, https://www.qubes-os.org/
+#
+# Copyright (C) 2015  Bahtiar `kalkin-` Gadimov <bahtiar@gadimov.de>
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation; either version 2 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
+
+
+import qubes.storage
+from qubes.qubes import defaults
+from qubes.storage.xen import XenPool, XenStorage
+from qubes.tests import QubesTestCase, SystemTestsMixin
+
+
+class TC_00_Storage(SystemTestsMixin, QubesTestCase):
+
+    """ This class tests the utility methods from :mod:``qubes.storage`` """
+
+    def test_000_dump(self):
+        """ Dumps storage instance to a storage string  """
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        vm = self.qc.add_new_vm('QubesAppVm', name=vmname,
+                                pool_name='default', template=template)
+        storage = vm.storage
+        result = qubes.storage.dump(storage)
+        expected = 'qubes.storage.xen.XenStorage'
+        self.assertEquals(result, expected)
+
+    def test_001_load(self):
+        """ Loads storage driver from a storage string  """
+        result = qubes.storage.load('qubes.storage.xen.XenStorage')
+        self.assertTrue(result is XenStorage)
+
+    def test_002_default_pool_drivers(self):
+        """ The only predifined pool driver is xen """
+        result = defaults['pool_drivers'].keys()
+        expected = ["xen"]
+        self.assertEquals(result, expected)
+
+    def test_003_get_pool_klass(self):
+        """ Expect the default pool to be `XenPool` """
+        result = qubes.storage._get_pool_klass('default')
+        self.assertTrue(result is XenPool)
+
+    def test_004_pool_exists_default(self):
+        """ Expect the default pool to exists """
+        self.assertTrue(qubes.storage.pool_exists('default'))
+
+    def test_005_pool_exists_random(self):
+        """ Expect this pool to not a exist """
+        self.assertFalse(
+            qubes.storage.pool_exists('asdh312096r832598213iudhas'))
+
+    def test_006_add_remove_pool(self):
+        """ Tries to adding and removing a pool. """
+        pool_name = 'asdjhrp89132'
+
+        # make sure it's really does not exist
+        qubes.storage.remove_pool(pool_name)
+
+        qubes.storage.add_pool(pool_name, driver='xen')
+        self.assertTrue(qubes.storage.pool_exists(pool_name))
+
+        qubes.storage.remove_pool(pool_name)
+        self.assertFalse(qubes.storage.pool_exists(pool_name))
diff --git a/tests/storage_xen.py b/tests/storage_xen.py
new file mode 100644
index 00000000..a6503929
--- /dev/null
+++ b/tests/storage_xen.py
@@ -0,0 +1,228 @@
+# The Qubes OS Project, https://www.qubes-os.org/
+#
+# Copyright (C) 2015  Bahtiar `kalkin-` Gadimov <bahtiar@gadimov.de>
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation; either version 2 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, write to the Free Software Foundation, Inc.,
+# 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301 USA.
+
+import os
+import shutil
+import qubes.storage
+from qubes.tests import QubesTestCase, SystemTestsMixin
+from qubes.storage.xen import XenStorage
+
+
+class TC_00_XenPool(SystemTestsMixin, QubesTestCase):
+
+    """ This class tests some properties of the 'default' pool. """
+
+    def test000_default_pool_dir(self):
+        """ The predefined dir for the default pool should be ``/var/lib/qubes``
+
+            .. sealso::
+               Data :data:``qubes.qubes.defaults['pool_config']``.
+        """
+        vm = self._init_app_vm()
+        result = qubes.storage.get_pool("default", vm).dir_path
+        expected = '/var/lib/qubes/'
+        self.assertEquals(result, expected)
+
+    def test001_default_storage_class(self):
+        """ Check when using default pool the Storage is ``XenStorage``. """
+        result = self._init_app_vm().storage
+        self.assertIsInstance(result, XenStorage)
+
+    def test_002_default_pool_name(self):
+        """ Default pool_name is 'default'. """
+        vm = self._init_app_vm()
+        self.assertEquals(vm.pool_name, "default")
+
+    def _init_app_vm(self):
+        """ Return initalised, but not created, AppVm. """
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        return self.qc.add_new_vm('QubesAppVm', name=vmname, template=template,
+                                  pool_name='default')
+
+
+class TC_01_XenPool(SystemTestsMixin, QubesTestCase):
+
+    """ Test the paths for the default Xen file based storage (``XenStorage``).
+    """
+
+    POOL_DIR = '/var/lib/qubes/test-pool'
+    APPVMS_DIR = '/var/lib/qubes/test-pool/appvms'
+    TEMPLATES_DIR = '/var/lib/qubes/test-pool/vm-templates'
+    SERVICE_DIR = '/var/lib/qubes/test-pool/servicevms'
+
+    def setUp(self):
+        """ Add a test file based storage pool """
+        super(TC_01_XenPool, self).setUp()
+        qubes.storage.add_pool('test-pool', driver='xen',
+                               dir_path=self.POOL_DIR)
+
+    def tearDown(self):
+        """ Remove the file based storage pool after testing """
+        super(TC_01_XenPool, self).tearDown()
+        qubes.storage.remove_pool("test-pool")
+        shutil.rmtree(self.POOL_DIR, ignore_errors=True)
+
+    def test_001_pool_exists(self):
+        """ Check if the storage pool was added to the storage pool config """
+        self.assertTrue(qubes.storage.pool_exists('test-pool'))
+
+    def test_002_pool_dir_create(self):
+        """ Check if the storage pool dir and subdirs were created """
+
+        # The dir should not exists before
+        self.assertFalse(os.path.exists(self.POOL_DIR))
+
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        self.qc.add_new_vm('QubesAppVm', name=vmname, template=template,
+                           pool_name='test-pool')
+
+        self.assertTrue(os.path.exists(self.POOL_DIR))
+        self.assertTrue(os.path.exists(self.APPVMS_DIR))
+        self.assertTrue(os.path.exists(self.SERVICE_DIR))
+        self.assertTrue(os.path.exists(self.TEMPLATES_DIR))
+
+    def test_003_pool_dir(self):
+        """ Check if the vm storage pool_dir is the same as specified """
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        vm = self.qc.add_new_vm('QubesAppVm', name=vmname, template=template,
+                                pool_name='test-pool')
+        result = qubes.storage.get_pool('test-pool', vm).dir_path
+        self.assertEquals(self.POOL_DIR, result)
+
+    def test_004_app_vmdir(self):
+        """ Check the vm storage dir for an AppVm"""
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        vm = self.qc.add_new_vm('QubesAppVm', name=vmname, template=template,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.APPVMS_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_005_hvm_vmdir(self):
+        """ Check the vm storage dir for a HVM"""
+        vmname = self.make_vm_name('hvm')
+        vm = self.qc.add_new_vm('QubesHVm', name=vmname,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.APPVMS_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_006_net_vmdir(self):
+        """ Check the vm storage dir for a Netvm"""
+        vmname = self.make_vm_name('hvm')
+        vm = self.qc.add_new_vm('QubesNetVm', name=vmname,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.SERVICE_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_007_proxy_vmdir(self):
+        """ Check the vm storage dir for a ProxyVm"""
+        vmname = self.make_vm_name('proxyvm')
+        vm = self.qc.add_new_vm('QubesProxyVm', name=vmname,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.SERVICE_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_008_admin_vmdir(self):
+        """ Check the vm storage dir for a AdminVm"""
+        # TODO How to test AdminVm?
+        pass
+
+    def test_009_template_vmdir(self):
+        """ Check the vm storage dir for a TemplateVm"""
+        vmname = self.make_vm_name('templatevm')
+        vm = self.qc.add_new_vm('QubesTemplateVm', name=vmname,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.TEMPLATES_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_010_template_hvm_vmdir(self):
+        """ Check the vm storage dir for a TemplateHVm"""
+        vmname = self.make_vm_name('templatehvm')
+        vm = self.qc.add_new_vm('QubesTemplateHVm', name=vmname,
+                                pool_name='test-pool')
+
+        expected = os.path.join(self.TEMPLATES_DIR, vm.name)
+        result = vm.storage.vmdir
+        self.assertEquals(expected, result)
+
+    def test_011_appvm_file_images(self):
+        """ Check if all the needed image files are created for an AppVm"""
+
+        vmname = self.make_vm_name('appvm')
+        template = self.qc.get_default_template()
+        vm = self.qc.add_new_vm('QubesAppVm', name=vmname, template=template,
+                                pool_name='test-pool')
+        vm.create_on_disk(verbose=False)
+
+        expected_vmdir = os.path.join(self.APPVMS_DIR, vm.name)
+        self.assertEqualsAndExists(vm.storage.vmdir, expected_vmdir)
+
+        expected_private_path = os.path.join(expected_vmdir, 'private.img')
+        self.assertEqualsAndExists(vm.storage.private_img,
+                                   expected_private_path)
+
+        expected_volatile_path = os.path.join(expected_vmdir, 'volatile.img')
+        self.assertEqualsAndExists(vm.storage.volatile_img,
+                                   expected_volatile_path)
+
+    def test_012_hvm_file_images(self):
+        """ Check if all the needed image files are created for a HVm"""
+
+        vmname = self.make_vm_name('hvm')
+        vm = self.qc.add_new_vm('QubesHVm', name=vmname,
+                                pool_name='test-pool')
+        vm.create_on_disk(verbose=False)
+
+        expected_vmdir = os.path.join(self.APPVMS_DIR, vm.name)
+        self.assertEqualsAndExists(vm.storage.vmdir, expected_vmdir)
+
+        expected_private_path = os.path.join(expected_vmdir, 'private.img')
+        self.assertEqualsAndExists(vm.storage.private_img,
+                                   expected_private_path)
+
+        expected_root_path = os.path.join(expected_vmdir, 'root.img')
+        self.assertEqualsAndExists(vm.storage.root_img, expected_root_path)
+
+        expected_volatile_path = os.path.join(expected_vmdir, 'volatile.img')
+        self.assertEqualsAndExists(vm.storage.volatile_img,
+                                   expected_volatile_path)
+
+    def assertEqualsAndExists(self, result_path, expected_path):
+        """ Check if the ``result_path``, matches ``expected_path`` and exists.
+
+            See also: :meth:``assertExist``
+        """
+        self.assertEquals(result_path, expected_path)
+        self.assertExist(result_path)
+
+    def assertExist(self, path):
+        """ Assert that the given path exists. """
+        self.assertTrue(os.path.exists(path))
diff --git a/tests/vm_qrexec_gui.py b/tests/vm_qrexec_gui.py
index e9ec8ad8..e6e03eee 100644
--- a/tests/vm_qrexec_gui.py
+++ b/tests/vm_qrexec_gui.py
@@ -39,17 +39,20 @@ TEST_DATA = "0123456789" * 1024
 class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
     def setUp(self):
         super(TC_00_AppVMMixin, self).setUp()
-        self.testvm1 = self.qc.add_new_vm("QubesAppVm",
+        self.testvm1 = self.qc.add_new_vm(
+            "QubesAppVm",
             name=self.make_vm_name('vm1'),
             template=self.qc.get_vm_by_name(self.template))
         self.testvm1.create_on_disk(verbose=False)
-        self.testvm2 = self.qc.add_new_vm("QubesAppVm",
+        self.testvm2 = self.qc.add_new_vm(
+            "QubesAppVm",
             name=self.make_vm_name('vm2'),
             template=self.qc.get_vm_by_name(self.template))
         self.testvm2.create_on_disk(verbose=False)
-        self.qc.save()
+        self.save_and_reload_db()
         self.qc.unlock_db()
-
+        self.testvm1 = self.qc[self.testvm1.qid]
+        self.testvm2 = self.qc[self.testvm2.qid]
 
     def test_000_start_shutdown(self):
         self.testvm1.start()
@@ -65,29 +68,69 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         time.sleep(1)
         self.assertEquals(self.testvm1.get_power_state(), "Halted")
 
+    @unittest.skipUnless(spawn.find_executable('xdotool'),
+                         "xdotool not installed")
+    def test_010_run_xterm(self):
+        self.testvm1.start()
+        self.assertEquals(self.testvm1.get_power_state(), "Running")
+        self.testvm1.run("xterm")
+        wait_count = 0
+        title = 'user@{}'.format(self.testvm1.name)
+        if self.template.count("whonix"):
+            title = 'user@host'
+        while subprocess.call(
+                ['xdotool', 'search', '--name', title],
+                stdout=open(os.path.devnull, 'w'),
+                stderr=subprocess.STDOUT) > 0:
+            wait_count += 1
+            if wait_count > 100:
+                self.fail("Timeout while waiting for xterm window")
+            time.sleep(0.1)
+
+        time.sleep(0.5)
+        subprocess.check_call(
+            ['xdotool', 'search', '--name', title,
+             'windowactivate', 'type', 'exit\n'])
+
+        wait_count = 0
+        while subprocess.call(['xdotool', 'search', '--name', title],
+                              stdout=open(os.path.devnull, 'w'),
+                              stderr=subprocess.STDOUT) == 0:
+            wait_count += 1
+            if wait_count > 100:
+                self.fail("Timeout while waiting for xterm "
+                          "termination")
+            time.sleep(0.1)
 
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
-    def test_010_run_gui_app(self):
+    def test_011_run_gnome_terminal(self):
+        if "minimal" in self.template:
+            self.skipTest("Minimal template doesn't have 'gnome-terminal'")
         self.testvm1.start()
         self.assertEquals(self.testvm1.get_power_state(), "Running")
         self.testvm1.run("gnome-terminal")
+        title = 'user@{}'.format(self.testvm1.name)
+        if self.template.count("whonix"):
+            title = 'user@host'
         wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', 'user@%s' %
-                self.testvm1.name], stdout=open(os.path.devnull, 'w'),
-                              stderr=subprocess.STDOUT) > 0:
+        while subprocess.call(
+                ['xdotool', 'search', '--name', title],
+                stdout=open(os.path.devnull, 'w'),
+                stderr=subprocess.STDOUT) > 0:
             wait_count += 1
             if wait_count > 100:
                 self.fail("Timeout while waiting for gnome-terminal window")
             time.sleep(0.1)
 
         time.sleep(0.5)
-        subprocess.check_call(['xdotool', 'search', '--name', 'user@%s' %
-                self.testvm1.name, 'windowactivate', 'type', 'exit\n'])
+        subprocess.check_call(
+            ['xdotool', 'search', '--name', title,
+             'windowactivate', 'type', 'exit\n'])
 
         wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', 'user@%s' %
-                self.testvm1.name], stdout=open(os.path.devnull, 'w'),
+        while subprocess.call(['xdotool', 'search', '--name', title],
+                              stdout=open(os.path.devnull, 'w'),
                               stderr=subprocess.STDOUT) == 0:
             wait_count += 1
             if wait_count > 100:
@@ -95,13 +138,54 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
                           "termination")
             time.sleep(0.1)
 
+    @unittest.skipUnless(spawn.find_executable('xdotool'),
+                         "xdotool not installed")
+    def test_012_qubes_desktop_run(self):
+        self.testvm1.start()
+        self.assertEquals(self.testvm1.get_power_state(), "Running")
+        xterm_desktop_path = "/usr/share/applications/xterm.desktop"
+        # Debian has it different...
+        xterm_desktop_path_debian = \
+            "/usr/share/applications/debian-xterm.desktop"
+        if self.testvm1.run("test -r {}".format(xterm_desktop_path_debian),
+                            wait=True) == 0:
+            xterm_desktop_path = xterm_desktop_path_debian
+        self.testvm1.run("qubes-desktop-run {}".format(xterm_desktop_path))
+        title = 'user@{}'.format(self.testvm1.name)
+        if self.template.count("whonix"):
+            title = 'user@host'
+        wait_count = 0
+        while subprocess.call(
+                ['xdotool', 'search', '--name', title],
+                stdout=open(os.path.devnull, 'w'),
+                stderr=subprocess.STDOUT) > 0:
+            wait_count += 1
+            if wait_count > 100:
+                self.fail("Timeout while waiting for xterm window")
+            time.sleep(0.1)
+
+        time.sleep(0.5)
+        subprocess.check_call(
+            ['xdotool', 'search', '--name', title,
+             'windowactivate', 'type', 'exit\n'])
+
+        wait_count = 0
+        while subprocess.call(['xdotool', 'search', '--name', title],
+                              stdout=open(os.path.devnull, 'w'),
+                              stderr=subprocess.STDOUT) == 0:
+            wait_count += 1
+            if wait_count > 100:
+                self.fail("Timeout while waiting for xterm "
+                          "termination")
+            time.sleep(0.1)
 
     def test_050_qrexec_simple_eof(self):
         """Test for data and EOF transmission dom0->VM"""
         result = multiprocessing.Value('i', 0)
+
         def run(self, result):
             p = self.testvm1.run("cat", passio_popen=True,
-                            passio_stderr=True)
+                                 passio_stderr=True)
 
             (stdout, stderr) = p.communicate(TEST_DATA)
             if stdout != TEST_DATA:
@@ -123,10 +207,10 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         elif result.value == 2:
             self.fail("Some data was printed to stderr")
 
-
     def test_051_qrexec_simple_eof_reverse(self):
         """Test for EOF transmission VM->dom0"""
         result = multiprocessing.Value('i', 0)
+
         def run(self, result):
             p = self.testvm1.run("echo test; exec >&-; cat > /dev/null",
                                  passio_popen=True, passio_stderr=True)
@@ -160,10 +244,10 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         elif result.value == 3:
             self.fail("VM proceess didn't terminated on EOF")
 
-
     def test_052_qrexec_vm_service_eof(self):
         """Test for EOF transmission VM(src)->VM(dst)"""
         result = multiprocessing.Value('i', 0)
+
         def run(self, result):
             p = self.testvm1.run("/usr/lib/qubes/qrexec-client-vm %s test.EOF "
                                  "/bin/sh -c 'echo test; exec >&-; cat "
@@ -194,15 +278,15 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         if result.value == 1:
             self.fail("Received data differs from what was expected")
 
-
     @unittest.expectedFailure
     def test_053_qrexec_vm_service_eof_reverse(self):
         """Test for EOF transmission VM(src)<-VM(dst)"""
         result = multiprocessing.Value('i', 0)
+
         def run(self, result):
             p = self.testvm1.run("/usr/lib/qubes/qrexec-client-vm %s test.EOF "
                                  "/bin/sh -c 'cat >&$SAVED_FD_1'"
-                                 % self.testvm1.name,
+                                 % self.testvm2.name,
                                  passio_popen=True)
             (stdout, stderr) = p.communicate()
             if stdout != "test\n":
@@ -229,6 +313,41 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         if result.value == 1:
             self.fail("Received data differs from what was expected")
 
+    def test_055_qrexec_dom0_service_abort(self):
+        """
+        Test if service abort (by dom0) is properly handled by source VM.
+
+        If "remote" part of the service terminates, the source part should
+        properly be notified. This includes closing its stdin (which is
+        already checked by test_053_qrexec_vm_service_eof_reverse), but also
+        its stdout - otherwise such service might hang on write(2) call.
+        """
+
+        def run (src):
+            p = src.run("/usr/lib/qubes/qrexec-client-vm dom0 "
+                                 "test.Abort /bin/cat /dev/zero",
+                                 passio_popen=True)
+
+            p.communicate()
+            p.wait()
+
+        self.testvm1.start()
+        service = open("/etc/qubes-rpc/test.Abort", "w")
+        service.write("sleep 1")
+        service.close()
+        self.addCleanup(os.unlink, "/etc/qubes-rpc/test.Abort")
+        policy = open("/etc/qubes-rpc/policy/test.Abort", "w")
+        policy.write("%s dom0 allow" % (self.testvm1.name))
+        policy.close()
+        self.addCleanup(os.unlink, "/etc/qubes-rpc/policy/test.Abort")
+
+        t = multiprocessing.Process(target=run, args=(self.testvm1,))
+        t.start()
+        t.join(timeout=10)
+        if t.is_alive():
+            t.terminate()
+            self.fail("Timeout, probably stdout wasn't closed")
+
 
     def test_060_qrexec_exit_code_dom0(self):
         self.testvm1.start()
@@ -241,7 +360,6 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         p.wait()
         self.assertEqual(3, p.returncode)
 
-
     @unittest.expectedFailure
     def test_065_qrexec_exit_code_vm(self):
         self.testvm1.start()
@@ -278,6 +396,137 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         (stdout, stderr) = p.communicate()
         self.assertEqual(stdout, "3\n")
 
+    def test_070_qrexec_vm_simultaneous_write(self):
+        """Test for simultaneous write in VM(src)->VM(dst) connection
+
+            This is regression test for #1347
+
+            Check for deadlock when initially both sides writes a lot of data
+            (and not read anything). When one side starts reading, it should
+            get the data and the remote side should be possible to write then more.
+            There was a bug where remote side was waiting on write(2) and not
+            handling anything else.
+        """
+        result = multiprocessing.Value('i', -1)
+
+        def run(self):
+            p = self.testvm1.run(
+                "/usr/lib/qubes/qrexec-client-vm %s test.write "
+                "/bin/sh -c '"
+                # first write a lot of data to fill all the buffers
+                "dd if=/dev/zero bs=993 count=10000 iflag=fullblock & "
+                # then after some time start reading
+                "sleep 1; "
+                "dd of=/dev/null bs=993 count=10000 iflag=fullblock; "
+                "wait"
+                "'" % self.testvm2.name, passio_popen=True)
+            p.communicate()
+            result.value = p.returncode
+
+        self.testvm1.start()
+        self.testvm2.start()
+        p = self.testvm2.run("cat > /etc/qubes-rpc/test.write", user="root",
+                             passio_popen=True)
+        # first write a lot of data
+        p.stdin.write("dd if=/dev/zero bs=993 count=10000 iflag=fullblock\n")
+        # and only then read something
+        p.stdin.write("dd of=/dev/null bs=993 count=10000 iflag=fullblock\n")
+        p.stdin.close()
+        p.wait()
+        policy = open("/etc/qubes-rpc/policy/test.write", "w")
+        policy.write("%s %s allow" % (self.testvm1.name, self.testvm2.name))
+        policy.close()
+        self.addCleanup(os.unlink, "/etc/qubes-rpc/policy/test.write")
+
+        t = multiprocessing.Process(target=run, args=(self,))
+        t.start()
+        t.join(timeout=10)
+        if t.is_alive():
+            t.terminate()
+            self.fail("Timeout, probably deadlock")
+        self.assertEqual(result.value, 0, "Service call failed")
+
+    def test_071_qrexec_dom0_simultaneous_write(self):
+        """Test for simultaneous write in dom0(src)->VM(dst) connection
+
+            Similar to test_070_qrexec_vm_simultaneous_write, but with dom0
+            as a source.
+        """
+        result = multiprocessing.Value('i', -1)
+
+        def run(self):
+            result.value = self.testvm2.run_service(
+                "test.write", localcmd="/bin/sh -c '"
+                # first write a lot of data to fill all the buffers
+                "dd if=/dev/zero bs=993 count=10000 iflag=fullblock & "
+                # then after some time start reading
+                "sleep 1; "
+                "dd of=/dev/null bs=993 count=10000 iflag=fullblock; "
+                "wait"
+                "'")
+
+        self.testvm2.start()
+        p = self.testvm2.run("cat > /etc/qubes-rpc/test.write", user="root",
+                             passio_popen=True)
+        # first write a lot of data
+        p.stdin.write("dd if=/dev/zero bs=993 count=10000 iflag=fullblock\n")
+        # and only then read something
+        p.stdin.write("dd of=/dev/null bs=993 count=10000 iflag=fullblock\n")
+        p.stdin.close()
+        p.wait()
+        policy = open("/etc/qubes-rpc/policy/test.write", "w")
+        policy.write("%s %s allow" % (self.testvm1.name, self.testvm2.name))
+        policy.close()
+        self.addCleanup(os.unlink, "/etc/qubes-rpc/policy/test.write")
+
+        t = multiprocessing.Process(target=run, args=(self,))
+        t.start()
+        t.join(timeout=10)
+        if t.is_alive():
+            t.terminate()
+            self.fail("Timeout, probably deadlock")
+        self.assertEqual(result.value, 0, "Service call failed")
+
+    def test_072_qrexec_to_dom0_simultaneous_write(self):
+        """Test for simultaneous write in dom0(src)<-VM(dst) connection
+
+            Similar to test_071_qrexec_dom0_simultaneous_write, but with dom0
+            as a "hanging" side.
+        """
+        result = multiprocessing.Value('i', -1)
+
+        def run(self):
+            result.value = self.testvm2.run_service(
+                "test.write", localcmd="/bin/sh -c '"
+                # first write a lot of data to fill all the buffers
+                "dd if=/dev/zero bs=993 count=10000 iflag=fullblock "
+                # then, only when all written, read something
+                "dd of=/dev/null bs=993 count=10000 iflag=fullblock; "
+                "'")
+
+        self.testvm2.start()
+        p = self.testvm2.run("cat > /etc/qubes-rpc/test.write", user="root",
+                             passio_popen=True)
+        # first write a lot of data
+        p.stdin.write("dd if=/dev/zero bs=993 count=10000 iflag=fullblock &\n")
+        # and only then read something
+        p.stdin.write("dd of=/dev/null bs=993 count=10000 iflag=fullblock\n")
+        p.stdin.write("sleep 1; \n")
+        p.stdin.write("wait\n")
+        p.stdin.close()
+        p.wait()
+        policy = open("/etc/qubes-rpc/policy/test.write", "w")
+        policy.write("%s %s allow" % (self.testvm1.name, self.testvm2.name))
+        policy.close()
+        self.addCleanup(os.unlink, "/etc/qubes-rpc/policy/test.write")
+
+        t = multiprocessing.Process(target=run, args=(self,))
+        t.start()
+        t.join(timeout=10)
+        if t.is_alive():
+            t.terminate()
+            self.fail("Timeout, probably deadlock")
+        self.assertEqual(result.value, 0, "Service call failed")
 
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
@@ -285,18 +534,41 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         self.testvm1.start()
         self.testvm2.start()
         p = self.testvm1.run("qvm-copy-to-vm %s /etc/passwd" %
-                            self.testvm2.name, passio_popen=True,
-                            passio_stderr=True)
+                             self.testvm2.name, passio_popen=True,
+                             passio_stderr=True)
         # Confirm transfer
-        subprocess.check_call(['xdotool', 'search', '--sync', '--name', 'Question',
-                             'key', 'y'])
+        self.enter_keys_in_window('Question', ['y'])
         p.wait()
         self.assertEqual(p.returncode, 0, "qvm-copy-to-vm failed: %s" %
                          p.stderr.read())
         retcode = self.testvm2.run("diff /etc/passwd "
-                         "/home/user/QubesIncoming/%s/passwd" % self.testvm1.name, wait=True)
+                                   "/home/user/QubesIncoming/{}/passwd".format(
+                                       self.testvm1.name),
+                                   wait=True)
         self.assertEqual(retcode, 0, "file differs")
 
+    @unittest.skipUnless(spawn.find_executable('xdotool'),
+                         "xdotool not installed")
+    def test_101_qrexec_filecopy_with_autostart(self):
+        self.testvm1.start()
+        p = self.testvm1.run("qvm-copy-to-vm %s /etc/passwd" %
+                             self.testvm2.name, passio_popen=True,
+                             passio_stderr=True)
+        # Confirm transfer
+        self.enter_keys_in_window('Question', ['y'])
+        p.wait()
+        self.assertEqual(p.returncode, 0, "qvm-copy-to-vm failed: %s" %
+                         p.stderr.read())
+        # workaround for libvirt bug (domain ID isn't updated when is started
+        #  from other application) - details in
+        # QubesOS/qubes-core-libvirt@63ede4dfb4485c4161dd6a2cc809e8fb45ca664f
+        self.testvm2._libvirt_domain = None
+        self.assertTrue(self.testvm2.is_running())
+        retcode = self.testvm2.run("diff /etc/passwd "
+                                   "/home/user/QubesIncoming/{}/passwd".format(
+                                       self.testvm1.name),
+                                   wait=True)
+        self.assertEqual(retcode, 0, "file differs")
 
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
@@ -304,19 +576,17 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
         self.testvm1.start()
         self.testvm2.start()
         p = self.testvm1.run("qvm-copy-to-vm %s /etc/passwd" %
-                            self.testvm2.name, passio_popen=True)
+                             self.testvm2.name, passio_popen=True)
         # Deny transfer
-        subprocess.check_call(['xdotool', 'search', '--sync', '--name', 'Question',
-                             'key', 'n'])
+        self.enter_keys_in_window('Question', ['n'])
         p.wait()
         self.assertNotEqual(p.returncode, 0, "qvm-copy-to-vm unexpectedly "
-                                          "succeeded")
+                            "succeeded")
         retcode = self.testvm1.run("ls /home/user/QubesIncoming/%s" %
-                                  self.testvm1.name, wait=True,
-                                  ignore_stderr=True)
+                                   self.testvm1.name, wait=True,
+                                   ignore_stderr=True)
         self.assertNotEqual(retcode, 0, "QubesIncoming exists although file "
-                                      "copy was "
-                                     "denied")
+                            "copy was denied")
 
     @unittest.skip("Xen gntalloc driver crashes when page is mapped in the "
                    "same domain")
@@ -325,18 +595,54 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
     def test_120_qrexec_filecopy_self(self):
         self.testvm1.start()
         p = self.testvm1.run("qvm-copy-to-vm %s /etc/passwd" %
-                            self.testvm1.name, passio_popen=True,
-                            passio_stderr=True)
+                             self.testvm1.name, passio_popen=True,
+                             passio_stderr=True)
         # Confirm transfer
-        subprocess.check_call(['xdotool', 'search', '--sync', '--name', 'Question',
-                             'key', 'y'])
+        self.enter_keys_in_window('Question', ['y'])
         p.wait()
         self.assertEqual(p.returncode, 0, "qvm-copy-to-vm failed: %s" %
                          p.stderr.read())
-        retcode = self.testvm1.run("diff /etc/passwd "
-                         "/home/user/QubesIncoming/%s/passwd" % self.testvm1.name, wait=True)
+        retcode = self.testvm1.run(
+            "diff /etc/passwd /home/user/QubesIncoming/{}/passwd".format(
+                self.testvm1.name),
+            wait=True)
         self.assertEqual(retcode, 0, "file differs")
 
+    @unittest.skipUnless(spawn.find_executable('xdotool'),
+                         "xdotool not installed")
+    def test_130_qrexec_filemove_disk_full(self):
+        self.testvm1.start()
+        self.testvm2.start()
+        # Prepare test file
+        prepare_cmd = ("yes teststring | dd of=testfile bs=1M "
+                       "count=50 iflag=fullblock")
+        retcode = self.testvm1.run(prepare_cmd, wait=True)
+        if retcode != 0:
+            raise RuntimeError("Failed '{}' in {}".format(prepare_cmd,
+                                                          self.testvm1.name))
+        # Prepare target directory with limited size
+        prepare_cmd = (
+            "mkdir -p /home/user/QubesIncoming && "
+            "chown user /home/user/QubesIncoming && "
+            "mount -t tmpfs none /home/user/QubesIncoming -o size=48M"
+        )
+        retcode = self.testvm2.run(prepare_cmd, user="root", wait=True)
+        if retcode != 0:
+            raise RuntimeError("Failed '{}' in {}".format(prepare_cmd,
+                                                          self.testvm2.name))
+        p = self.testvm1.run("qvm-move-to-vm %s testfile" %
+                             self.testvm2.name, passio_popen=True,
+                             passio_stderr=True)
+        # Confirm transfer
+        self.enter_keys_in_window('Question', ['y'])
+        # Close GUI error message
+        self.enter_keys_in_window('Error', ['Return'])
+        p.wait()
+        self.assertNotEqual(p.returncode, 0, "qvm-move-to-vm should fail")
+        retcode = self.testvm1.run("test -f testfile", wait=True)
+        self.assertEqual(retcode, 0, "testfile should not be deleted in "
+                                     "source VM")
+
     def test_200_timezone(self):
         """Test whether timezone setting is properly propagated to the VM"""
         if "whonix" in self.template:
@@ -354,63 +660,186 @@ class TC_00_AppVMMixin(qubes.tests.SystemTestsMixin):
                                       passio_popen=True).communicate()
         self.assertEqual(vm_tz.strip(), "UTC")
 
+    def test_210_time_sync(self):
+        """Test time synchronization mechanism"""
+        self.testvm1.start()
+        self.testvm2.start()
+        (start_time, _) = subprocess.Popen(["date", "-u", "+%s"],
+                                           stdout=subprocess.PIPE).communicate()
+        original_clockvm = self.qc.get_clockvm_vm()
+        if original_clockvm:
+            original_clockvm_name = original_clockvm.name
+        else:
+            original_clockvm_name = "none"
+        try:
+            # use qubes-prefs to not hassle with qubes.xml locking
+            subprocess.check_call(["qubes-prefs", "-s", "clockvm",
+                                   self.testvm1.name])
+            # break vm and dom0 time, to check if qvm-sync-clock would fix it
+            subprocess.check_call(["sudo", "date", "-s",
+                                   "2001-01-01T12:34:56"],
+                                  stdout=open(os.devnull, 'w'))
+            retcode = self.testvm1.run("date -s 2001-01-01T12:34:56",
+                                       user="root", wait=True)
+            self.assertEquals(retcode, 0, "Failed to break the VM(1) time")
+            retcode = self.testvm2.run("date -s 2001-01-01T12:34:56",
+                                       user="root", wait=True)
+            self.assertEquals(retcode, 0, "Failed to break the VM(2) time")
+            retcode = subprocess.call(["qvm-sync-clock"])
+            self.assertEquals(retcode, 0,
+                              "qvm-sync-clock failed with code {}".
+                              format(retcode))
+            (vm_time, _) = self.testvm1.run("date -u +%s",
+                                            passio_popen=True).communicate()
+            self.assertAlmostEquals(int(vm_time), int(start_time), delta=30)
+            (vm_time, _) = self.testvm2.run("date -u +%s",
+                                            passio_popen=True).communicate()
+            self.assertAlmostEquals(int(vm_time), int(start_time), delta=30)
+            (dom0_time, _) = subprocess.Popen(["date", "-u", "+%s"],
+                                              stdout=subprocess.PIPE
+                                              ).communicate()
+            self.assertAlmostEquals(int(dom0_time), int(start_time), delta=30)
+
+        except:
+            # reset time to some approximation of the real time
+            subprocess.Popen(["sudo", "date", "-u", "-s", "@" + start_time])
+            raise
+        finally:
+            subprocess.call(["qubes-prefs", "-s", "clockvm",
+                             original_clockvm_name])
+
+    def test_250_resize_private_img(self):
+        """
+        Test private.img resize, both offline and online
+        :return:
+        """
+        # First offline test
+        self.testvm1.resize_private_img(4*1024**3)
+        self.testvm1.start()
+        df_cmd = '( df --output=size /rw || df /rw | awk \'{print $2}\' )|' \
+                 'tail -n 1'
+        p = self.testvm1.run(df_cmd,
+                             passio_popen=True)
+        # new_size in 1k-blocks
+        (new_size, _) = p.communicate()
+        # some safety margin for FS metadata
+        self.assertGreater(int(new_size.strip()), 3.8*1024**2)
+        # Then online test
+        self.testvm1.resize_private_img(6*1024**3)
+        p = self.testvm1.run(df_cmd,
+                             passio_popen=True)
+        # new_size in 1k-blocks
+        (new_size, _) = p.communicate()
+        # some safety margin for FS metadata
+        self.assertGreater(int(new_size.strip()), 5.8*1024**2)
+
+
+class TC_05_StandaloneVM(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
+    def test_000_create_start(self):
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     template=None,
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False,
+                               source_template=self.qc.get_default_template())
+        self.qc.save()
+        self.qc.unlock_db()
+        testvm1.start()
+        self.assertEquals(testvm1.get_power_state(), "Running")
+
+    def test_100_resize_root_img(self):
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     template=None,
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False,
+                               source_template=self.qc.get_default_template())
+        self.qc.save()
+        self.qc.unlock_db()
+        with self.assertRaises(QubesException):
+            testvm1.resize_root_img(20*1024**3)
+        testvm1.resize_root_img(20*1024**3, allow_start=True)
+        timeout = 60
+        while testvm1.is_running():
+            time.sleep(1)
+            timeout -= 1
+            if timeout == 0:
+                self.fail("Timeout while waiting for VM shutdown")
+        self.assertEquals(testvm1.get_root_img_sz(), 20*1024**3)
+        testvm1.start()
+        p = testvm1.run('df --output=size /|tail -n 1',
+                        passio_popen=True)
+        # new_size in 1k-blocks
+        (new_size, _) = p.communicate()
+        # some safety margin for FS metadata
+        self.assertGreater(int(new_size.strip()), 19*1024**2)
+
 
 class TC_10_HVM(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
     # TODO: test with some OS inside
     # TODO: windows tools tests
 
     def test_000_create_start(self):
-        self.testvm1 = self.qc.add_new_vm("QubesHVm",
-            name=self.make_vm_name('vm1'))
-        self.testvm1.create_on_disk(verbose=False)
+        testvm1 = self.qc.add_new_vm("QubesHVm",
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False)
         self.qc.save()
         self.qc.unlock_db()
-        self.testvm1.start()
-        self.assertEquals(self.testvm1.get_power_state(), "Running")
+        testvm1.start()
+        self.assertEquals(testvm1.get_power_state(), "Running")
 
     def test_010_create_start_template(self):
-        self.templatevm = self.qc.add_new_vm("QubesTemplateHVm",
-            name=self.make_vm_name('template'))
-        self.templatevm.create_on_disk(verbose=False)
+        templatevm = self.qc.add_new_vm("QubesTemplateHVm",
+                                        name=self.make_vm_name('template'))
+        templatevm.create_on_disk(verbose=False)
         self.qc.save()
         self.qc.unlock_db()
 
-        self.templatevm.start()
-        self.assertEquals(self.templatevm.get_power_state(), "Running")
+        templatevm.start()
+        self.assertEquals(templatevm.get_power_state(), "Running")
 
     def test_020_create_start_template_vm(self):
-        self.templatevm = self.qc.add_new_vm("QubesTemplateHVm",
-            name=self.make_vm_name('template'))
-        self.templatevm.create_on_disk(verbose=False)
-        self.testvm2 = self.qc.add_new_vm("QubesHVm",
-            name=self.make_vm_name('vm2'),
-            template=self.templatevm)
-        self.testvm2.create_on_disk(verbose=False)
+        templatevm = self.qc.add_new_vm("QubesTemplateHVm",
+                                        name=self.make_vm_name('template'))
+        templatevm.create_on_disk(verbose=False)
+        testvm2 = self.qc.add_new_vm("QubesHVm",
+                                     name=self.make_vm_name('vm2'),
+                                     template=templatevm)
+        testvm2.create_on_disk(verbose=False)
         self.qc.save()
         self.qc.unlock_db()
 
-        self.testvm2.start()
-        self.assertEquals(self.testvm2.get_power_state(), "Running")
+        testvm2.start()
+        self.assertEquals(testvm2.get_power_state(), "Running")
 
     def test_030_prevent_simultaneus_start(self):
-        self.templatevm = self.qc.add_new_vm("QubesTemplateHVm",
-            name=self.make_vm_name('template'))
-        self.templatevm.create_on_disk(verbose=False)
-        self.testvm2 = self.qc.add_new_vm("QubesHVm",
-            name=self.make_vm_name('vm2'),
-            template=self.templatevm)
-        self.testvm2.create_on_disk(verbose=False)
+        templatevm = self.qc.add_new_vm("QubesTemplateHVm",
+                                        name=self.make_vm_name('template'))
+        templatevm.create_on_disk(verbose=False)
+        testvm2 = self.qc.add_new_vm("QubesHVm",
+                                     name=self.make_vm_name('vm2'),
+                                     template=templatevm)
+        testvm2.create_on_disk(verbose=False)
         self.qc.save()
         self.qc.unlock_db()
 
-        self.templatevm.start()
-        self.assertEquals(self.templatevm.get_power_state(), "Running")
-        self.assertRaises(QubesException, self.testvm2.start)
-        self.templatevm.force_shutdown()
-        self.testvm2.start()
-        self.assertEquals(self.testvm2.get_power_state(), "Running")
-        self.assertRaises(QubesException, self.templatevm.start)
+        templatevm.start()
+        self.assertEquals(templatevm.get_power_state(), "Running")
+        self.assertRaises(QubesException, testvm2.start)
+        templatevm.force_shutdown()
+        testvm2.start()
+        self.assertEquals(testvm2.get_power_state(), "Running")
+        self.assertRaises(QubesException, templatevm.start)
 
+    def test_100_resize_root_img(self):
+        testvm1 = self.qc.add_new_vm("QubesHVm",
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False)
+        self.qc.save()
+        self.qc.unlock_db()
+        testvm1.resize_root_img(30*1024**3)
+        self.assertEquals(testvm1.get_root_img_sz(), 30*1024**3)
+        testvm1.start()
+        self.assertEquals(testvm1.get_power_state(), "Running")
+        # TODO: launch some OS there and check the size
 
 class TC_20_DispVMMixin(qubes.tests.SystemTestsMixin):
     def test_000_prepare_dvm(self):
@@ -436,7 +865,6 @@ class TC_20_DispVMMixin(qubes.tests.SystemTestsMixin):
         self.assertEqual(stdout, "test\n")
         # TODO: check if DispVM is destroyed
 
-
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
     def test_020_gui_app(self):
@@ -468,35 +896,19 @@ class TC_20_DispVMMixin(qubes.tests.SystemTestsMixin):
         dispvm = self.qc[max_qid]
         self.assertNotEqual(dispvm.qid, 0, "DispVM not found in qubes.xml")
         self.assertTrue(dispvm.is_running())
+        try:
+            window_title = 'user@%s' % (dispvm.template.name + "-dvm")
+            p.stdin.write("xterm -e "
+                          "\"sh -s -c 'echo \\\"\033]0;{}\007\\\";read x;'\"\n".
+                          format(window_title))
+            self.wait_for_window(window_title)
 
-        window_title = 'user@%s' % (dispvm.template.name + "-dvm")
-        p.stdin.write("gnome-terminal -e "
-                      "\"sh -s -c 'echo \\\"\033]0;{}\007\\\"'\"\n".
-                      format(window_title))
-        wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', window_title],
-                              stdout=open(os.path.devnull, 'w'),
-                              stderr=subprocess.STDOUT) > 0:
-            wait_count += 1
-            if wait_count > 100:
-                self.fail("Timeout while waiting for gnome-terminal window")
-            time.sleep(0.1)
-
-        time.sleep(0.5)
-        subprocess.check_call(['xdotool', 'search', '--name', window_title,
-                              'windowactivate', 'type', 'exit\n'])
-
-        wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', window_title],
-                              stdout=open(os.path.devnull, 'w'),
-                              stderr=subprocess.STDOUT) == 0:
-            wait_count += 1
-            if wait_count > 100:
-                self.fail("Timeout while waiting for gnome-terminal "
-                          "termination")
-            time.sleep(0.1)
-
-        p.stdin.close()
+            time.sleep(0.5)
+            self.enter_keys_in_window(window_title, ['Return'])
+            # Wait for window to close
+            self.wait_for_window(window_title, show=False)
+        finally:
+            p.stdin.close()
 
         wait_count = 0
         while dispvm.is_running():
@@ -553,26 +965,27 @@ class TC_20_DispVMMixin(qubes.tests.SystemTestsMixin):
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
     def test_030_edit_file(self):
-        self.testvm1 = self.qc.add_new_vm("QubesAppVm",
-            name=self.make_vm_name('vm1'),
-            template=self.qc.get_vm_by_name(self.template))
-        self.testvm1.create_on_disk(verbose=False)
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     name=self.make_vm_name('vm1'),
+                                     template=self.qc.get_vm_by_name(
+                                         self.template))
+        testvm1.create_on_disk(verbose=False)
         self.qc.save()
 
-        self.testvm1.start()
-        self.testvm1.run("echo test1 > /home/user/test.txt", wait=True)
+        testvm1.start()
+        testvm1.run("echo test1 > /home/user/test.txt", wait=True)
 
         self.qc.unlock_db()
-        p = self.testvm1.run("qvm-open-in-dvm /home/user/test.txt",
-                         passio_popen=True)
+        p = testvm1.run("qvm-open-in-dvm /home/user/test.txt",
+                        passio_popen=True)
 
         wait_count = 0
         winid = None
         while True:
             search = subprocess.Popen(['xdotool', 'search',
                                        '--onlyvisible', '--class', 'disp*'],
-                              stdout=subprocess.PIPE,
-                              stderr=open(os.path.devnull, 'w'))
+                                      stdout=subprocess.PIPE,
+                                      stderr=open(os.path.devnull, 'w'))
             retcode = search.wait()
             if retcode == 0:
                 winid = search.stdout.read().strip()
@@ -584,87 +997,74 @@ class TC_20_DispVMMixin(qubes.tests.SystemTestsMixin):
 
         self._handle_editor(winid)
         p.wait()
-        p = self.testvm1.run("cat /home/user/test.txt",
-                         passio_popen=True)
+        p = testvm1.run("cat /home/user/test.txt",
+                        passio_popen=True)
         (test_txt_content, _) = p.communicate()
         self.assertEqual(test_txt_content, "test test 2\ntest1\n")
 
+
 class TC_30_Gui_daemon(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
     @unittest.skipUnless(spawn.find_executable('xdotool'),
                          "xdotool not installed")
     def test_000_clipboard(self):
-        self.testvm1 = self.qc.add_new_vm("QubesAppVm",
-            name=self.make_vm_name('vm1'),
-            template=self.qc.get_default_template())
-        self.testvm1.create_on_disk(verbose=False)
-        self.testvm2 = self.qc.add_new_vm("QubesAppVm",
-            name=self.make_vm_name('vm2'),
-            template=self.qc.get_default_template())
-        self.testvm2.create_on_disk(verbose=False)
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     name=self.make_vm_name('vm1'),
+                                     template=self.qc.get_default_template())
+        testvm1.create_on_disk(verbose=False)
+        testvm2 = self.qc.add_new_vm("QubesAppVm",
+                                     name=self.make_vm_name('vm2'),
+                                     template=self.qc.get_default_template())
+        testvm2.create_on_disk(verbose=False)
         self.qc.save()
         self.qc.unlock_db()
 
-        self.testvm1.start()
-        self.testvm2.start()
+        testvm1.start()
+        testvm2.start()
 
-        window_title = 'user@{}'.format(self.testvm1.name)
-        self.testvm1.run('zenity --text-info --editable --title={}'.format(
+        window_title = 'user@{}'.format(testvm1.name)
+        testvm1.run('zenity --text-info --editable --title={}'.format(
             window_title))
 
-        wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', window_title],
-                              stdout=open(os.path.devnull, 'w'),
-                              stderr=subprocess.STDOUT) > 0:
-            wait_count += 1
-            if wait_count > 100:
-                self.fail("Timeout while waiting for text-info window")
-            time.sleep(0.1)
-
+        self.wait_for_window(window_title)
         time.sleep(0.5)
-        test_string = "test{}".format(self.testvm1.xid)
+        test_string = "test{}".format(testvm1.xid)
 
         # Type and copy some text
         subprocess.check_call(['xdotool', 'search', '--name', window_title,
-                              'windowactivate',
-                              'type', '{}'.format(test_string)])
+                               'windowactivate',
+                               'type', '{}'.format(test_string)])
         # second xdotool call because type --terminator do not work (SEGV)
         # additionally do not use search here, so window stack will be empty
         # and xdotool will use XTEST instead of generating events manually -
         # this will be much better - at least because events will have
         # correct timestamp (so gui-daemon would not drop the copy request)
         subprocess.check_call(['xdotool',
-                              'key', 'ctrl+a', 'ctrl+c', 'ctrl+shift+c',
-                              'Escape'])
+                               'key', 'ctrl+a', 'ctrl+c', 'ctrl+shift+c',
+                               'Escape'])
 
         clipboard_content = \
             open('/var/run/qubes/qubes-clipboard.bin', 'r').read().strip()
         self.assertEquals(clipboard_content, test_string,
                           "Clipboard copy operation failed - content")
         clipboard_source = \
-            open('/var/run/qubes/qubes-clipboard.bin.source', 'r').read().strip()
-        self.assertEquals(clipboard_source, self.testvm1.name,
+            open('/var/run/qubes/qubes-clipboard.bin.source',
+                 'r').read().strip()
+        self.assertEquals(clipboard_source, testvm1.name,
                           "Clipboard copy operation failed - owner")
 
         # Then paste it to the other window
-        window_title = 'user@{}'.format(self.testvm2.name)
-        self.testvm2.run('zenity --entry --title={} > test.txt'.format(
-            window_title))
-        wait_count = 0
-        while subprocess.call(['xdotool', 'search', '--name', window_title],
-                              stdout=open(os.path.devnull, 'w'),
-                              stderr=subprocess.STDOUT) > 0:
-            wait_count += 1
-            if wait_count > 100:
-                self.fail("Timeout while waiting for input window")
-            time.sleep(0.1)
+        window_title = 'user@{}'.format(testvm2.name)
+        p = testvm2.run('zenity --entry --title={} > test.txt'.format(
+                        window_title), passio_popen=True)
+        self.wait_for_window(window_title)
 
         subprocess.check_call(['xdotool', 'key', '--delay', '100',
                                'ctrl+shift+v', 'ctrl+v', 'Return'])
-        time.sleep(0.5)
+        p.wait()
 
         # And compare the result
-        (test_output, _) = self.testvm2.run('cat test.txt',
-                                            passio_popen=True).communicate()
+        (test_output, _) = testvm2.run('cat test.txt',
+                                       passio_popen=True).communicate()
         self.assertEquals(test_string, test_output.strip())
 
         clipboard_content = \
@@ -679,6 +1079,132 @@ class TC_30_Gui_daemon(qubes.tests.SystemTestsMixin, qubes.tests.QubesTestCase):
                           "Clipboard not wiped after paste - owner")
 
 
+@unittest.skipUnless(os.path.exists('/var/lib/qubes/vm-kernels/pvgrub2'),
+                     'grub-xen package not installed')
+class TC_40_PVGrub(qubes.tests.SystemTestsMixin):
+    def setUp(self):
+        super(TC_40_PVGrub, self).setUp()
+        supported = False
+        if self.template.startswith('fedora-'):
+            supported = True
+        elif self.template.startswith('debian-'):
+            supported = True
+        if not supported:
+            self.skipTest("Template {} not supported by this test".format(
+                self.template))
+
+    def install_packages(self, vm):
+        if self.template.startswith('fedora-'):
+            cmd_install1 = 'yum clean expire-cache && ' \
+                           'yum install -y qubes-kernel-vm-support grub2-tools'
+            cmd_install2 = 'yum install -y kernel kernel-devel'
+            cmd_update_grub = 'grub2-mkconfig -o /boot/grub2/grub.cfg'
+        elif self.template.startswith('debian-'):
+            cmd_install1 = 'apt-get update && apt-get install -y ' \
+                           'qubes-kernel-vm-support grub2-common'
+            cmd_install2 = 'apt-get install -y linux-image-amd64'
+            cmd_update_grub = 'mkdir /boot/grub && update-grub2'
+        else:
+            assert False, "Unsupported template?!"
+
+        for cmd in [cmd_install1, cmd_install2, cmd_update_grub]:
+            p = vm.run(cmd, user="root", passio_popen=True, passio_stderr=True)
+            (stdout, stderr) = p.communicate()
+            self.assertEquals(p.returncode, 0,
+                              "Failed command: {}\nSTDOUT: {}\nSTDERR: {}"
+                              .format(cmd, stdout, stderr))
+
+    def get_kernel_version(self, vm):
+        if self.template.startswith('fedora-'):
+            cmd_get_kernel_version = 'rpm -q kernel|sort -n|tail -1|' \
+                                     'cut -d - -f 2-'
+        elif self.template.startswith('debian-'):
+            cmd_get_kernel_version = \
+                'dpkg-query --showformat=\'${Package}\\n\' --show ' \
+                '\'linux-image-*-amd64\'|sort -n|tail -1|cut -d - -f 3-'
+        else:
+            raise RuntimeError("Unsupported template?!")
+
+        p = vm.run(cmd_get_kernel_version, user="root", passio_popen=True)
+        (kver, _) = p.communicate()
+        self.assertEquals(p.returncode, 0,
+                          "Failed command: {}".format(cmd_get_kernel_version))
+        return kver.strip()
+
+    def test_000_standalone_vm(self):
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     template=None,
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False,
+                               source_template=self.qc.get_vm_by_name(
+                                   self.template))
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+        testvm1 = self.qc[testvm1.qid]
+        testvm1.start()
+        self.install_packages(testvm1)
+        kver = self.get_kernel_version(testvm1)
+        self.shutdown_and_wait(testvm1)
+
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+        testvm1 = self.qc[testvm1.qid]
+        testvm1.kernel = 'pvgrub2'
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+        testvm1 = self.qc[testvm1.qid]
+        testvm1.start()
+        p = testvm1.run('uname -r', passio_popen=True)
+        (actual_kver, _) = p.communicate()
+        self.assertEquals(actual_kver.strip(), kver)
+
+    def test_010_template_based_vm(self):
+        test_template = self.qc.add_new_vm("QubesTemplateVm",
+                                           template=None,
+                                           name=self.make_vm_name('template'))
+        test_template.clone_attrs(self.qc.get_vm_by_name(self.template))
+        test_template.clone_disk_files(
+            src_vm=self.qc.get_vm_by_name(self.template),
+            verbose=False)
+
+        testvm1 = self.qc.add_new_vm("QubesAppVm",
+                                     template=test_template,
+                                     name=self.make_vm_name('vm1'))
+        testvm1.create_on_disk(verbose=False,
+                               source_template=test_template)
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+        test_template = self.qc[test_template.qid]
+        testvm1 = self.qc[testvm1.qid]
+        test_template.start()
+        self.install_packages(test_template)
+        kver = self.get_kernel_version(test_template)
+        self.shutdown_and_wait(test_template)
+
+        self.qc.lock_db_for_writing()
+        self.qc.load()
+        test_template = self.qc[test_template.qid]
+        test_template.kernel = 'pvgrub2'
+        testvm1 = self.qc[testvm1.qid]
+        testvm1.kernel = 'pvgrub2'
+        self.save_and_reload_db()
+        self.qc.unlock_db()
+
+        # Check if TemplateBasedVM boots and has the right kernel
+        testvm1 = self.qc[testvm1.qid]
+        testvm1.start()
+        p = testvm1.run('uname -r', passio_popen=True)
+        (actual_kver, _) = p.communicate()
+        self.assertEquals(actual_kver.strip(), kver)
+
+        # And the same for the TemplateVM itself
+        test_template = self.qc[test_template.qid]
+        test_template.start()
+        p = test_template.run('uname -r', passio_popen=True)
+        (actual_kver, _) = p.communicate()
+        self.assertEquals(actual_kver.strip(), kver)
+
+
 def load_tests(loader, tests, pattern):
     try:
         qc = qubes.qubes.QubesVmCollection()
@@ -701,5 +1227,10 @@ def load_tests(loader, tests, pattern):
                 'TC_20_DispVM_' + template,
                 (TC_20_DispVMMixin, qubes.tests.QubesTestCase),
                 {'template': template})))
+        tests.addTests(loader.loadTestsFromTestCase(
+            type(
+                'TC_40_PVGrub_' + template,
+                (TC_40_PVGrub, qubes.tests.QubesTestCase),
+                {'template': template})))
 
     return tests
diff --git a/version b/version
index 9bbe6516..efd03d13 100644
--- a/version
+++ b/version
@@ -1 +1 @@
-3.0.14
+3.1.11
diff --git a/vm-config/xen-vm-template-hvm.xml b/vm-config/xen-vm-template-hvm.xml
index 836343e6..26d9233b 100644
--- a/vm-config/xen-vm-template-hvm.xml
+++ b/vm-config/xen-vm-template-hvm.xml
@@ -9,8 +9,6 @@
     <loader>hvmloader</loader>
     <boot dev='cdrom'/>
     <boot dev='hd'/>
-<!-- server_ip is the address of stubdomain. It hosts it's own DNS server. -->
-    {disable_network1}<cmdline>-net lwip,client_ip={ip},server_ip={dns2},dns={dns1},gw={gateway},netmask={netmask}</cmdline>{disable_network2}
   </os>
   <features>
     <pae/>
@@ -23,14 +21,18 @@
   <on_reboot>destroy</on_reboot>
   <on_crash>destroy</on_crash>
   <devices>
-    <emulator type='stubdom'/>
+    {no_network_begin}<emulator type='stubdom'/>{no_network_end}
+<!-- server_ip is the address of stubdomain. It hosts it's own DNS server. -->
+    {network_begin}<emulator type='stubdom' cmdline='-net lwip,client_ip={ip},server_ip={dns2},dns={dns1},gw={gateway},netmask={netmask}'/>{network_end}
 {rootdev}
 {privatedev}
 {otherdevs}
 {netdev}
 {pcidevs}
     <input type='tablet' bus='usb'/>
-    <video type='vga'/>
+    <video type='vga'>
+      <model type='xen' vram='16384'/>
+    </video>
   </devices>
 </domain>