diff --git a/core-modules/01QubesHVm.py b/core-modules/01QubesHVm.py
index 51e06f1a..ea1b3634 100644
--- a/core-modules/01QubesHVm.py
+++ b/core-modules/01QubesHVm.py
@@ -24,10 +24,12 @@
 import os
 import os.path
 import subprocess
+import stat
 import sys
 import re
 
 from qubes.qubes import QubesVm,register_qubes_vm_class,xs,xc,dry_run
+from qubes.qubes import QubesException
 from qubes.qubes import system_path,defaults
 
 system_path["config_template_hvm"] = '/usr/share/qubes/vm-template-hvm.conf'
@@ -163,6 +165,8 @@ class QubesHVm(QubesVm):
             if backend_split:
                 backend_domain = "," + backend_split.group(1)
                 drive_path = backend_split.group(2)
+            if backend_domain.lower() == "dom0":
+                backend_domain = ""
 
             # FIXME: os.stat will work only when backend in dom0...
             stat_res = None
@@ -260,7 +264,17 @@ class QubesHVm(QubesVm):
                 raise QubesException("Cannot start qubes-guid!")
 
     def start_qrexec_daemon(self, **kwargs):
-        if self.qrexec_installed:
+        if not self.qrexec_installed:
+            if kwargs.get('verbose', False):
+                print >> sys.stderr, "--> Starting the qrexec daemon..."
+            xid = self.get_xid()
+            qrexec_env = os.environ
+            qrexec_env['QREXEC_STARTUP_NOWAIT'] = '1'
+            retcode = subprocess.call ([system_path["qrexec_daemon_path"], str(xid), self.name, self.default_user], env=qrexec_env)
+            if (retcode != 0) :
+                self.force_shutdown(xid=xid)
+                raise OSError ("ERROR: Cannot execute qrexec-daemon!")
+        else:
             super(QubesHVm, self).start_qrexec_daemon(**kwargs)
 
             if self._start_guid_first:
@@ -269,6 +283,26 @@ class QubesHVm(QubesVm):
 
                 self.wait_for_session(notify_function=kwargs.get('notify_function', None))
 
+    def create_xenstore_entries(self, xid = None):
+        if dry_run:
+            return
+
+        super(QubesHVm, self).create_xenstore_entries(xid)
+
+        if xid is None:
+            xid = self.xid
+
+        domain_path = xs.get_domain_path(xid)
+
+        # Prepare xenstore directory for tools advertise
+        xs.write('',
+                "{0}/qubes-tools".format(domain_path),
+                '')
+
+        # Allow VM writes there
+        xs.set_permissions('', '{0}/qubes-tools'.format(domain_path),
+                [{ 'dom': xid }])
+
     def suspend(self):
         if dry_run:
             return
diff --git a/qubes-rpc-policy/qubes.NotifyTools.policy b/qubes-rpc-policy/qubes.NotifyTools.policy
new file mode 100644
index 00000000..0f00b0b6
--- /dev/null
+++ b/qubes-rpc-policy/qubes.NotifyTools.policy
@@ -0,0 +1,6 @@
+## Note that policy parsing stops at the first match,
+## so adding anything below "$anyvm $anyvm action" line will have no effect
+
+## Please use a single # to start your custom comments
+
+$anyvm	dom0	allow
diff --git a/qubes-rpc/qubes-notify-tools b/qubes-rpc/qubes-notify-tools
new file mode 100755
index 00000000..47a4b0c2
--- /dev/null
+++ b/qubes-rpc/qubes-notify-tools
@@ -0,0 +1,82 @@
+#!/usr/bin/python2
+
+import os
+import re
+import sys
+from qubes.qubes import QubesVmCollection,QubesException,QubesHVm
+from qubes.qubes import xs
+
+def main():
+
+    source = os.getenv("QREXEC_REMOTE_DOMAIN")
+
+    if source is None:
+        print >> sys.stderr, 'This script must be called as qrexec service!'
+        exit(1)
+
+    qvm_collection = QubesVmCollection()
+    qvm_collection.lock_db_for_writing()
+    try:
+        qvm_collection.load()
+
+        source_vm = qvm_collection.get_vm_by_name(source)
+        if source_vm is None:
+            raise QubesException('Domain ' + source + ' does not exists (?!)')
+
+        if not isinstance(source_vm, QubesHVm):
+            raise QubesException('Service qubes.ToolsNotify is designed only for HVM domains')
+
+        xs_path = "/local/domain/{0}/qubes-tools".format(source_vm.get_xid())
+
+        # for now used only to check for the tools presence
+        untrusted_version = xs.read('', '{0}/version'.format(xs_path))
+        # reserved for future use
+        untrusted_os = xs.read('', '{0}/os'.format(xs_path))
+        # qrexec agent presence (0 or 1)
+        untrusted_qrexec = xs.read('', '{0}/qrexec'.format(xs_path))
+        # gui agent presence (0 or 1)
+        untrusted_gui = xs.read('', '{0}/gui'.format(xs_path))
+        # default user for qvm-run etc
+        untrusted_user = xs.read('', '{0}/default-user'.format(xs_path))
+
+        if untrusted_version is None:
+            # tools didn't advertised its features; it's strange that this
+            # service is called, but ignore it
+            return
+
+        # any suspicious string will raise exception here
+        version = int(untrusted_version)
+
+        # untrusted_os - ignore for now
+
+        if untrusted_qrexec is None:
+            qrexec = 0
+        else:
+            qrexec = int(untrusted_qrexec)
+
+        if untrusted_gui is None:
+            gui = 0
+        else:
+            gui = int(untrusted_gui)
+
+        if untrusted_user is not None:
+            if re.match(r'^[a-zA-Z0-9-]+$', untrusted_user):
+                user = untrusted_user
+        else:
+            user = None
+
+        # 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
+
+        if user:
+            source_vm.default_user = user
+
+        qvm_collection.save()
+    except Exception as e:
+        print >> sys.stderr, e.message
+        exit(1)
+    finally:
+        qvm_collection.unlock_db()
+
+main()
diff --git a/qubes-rpc/qubes.NotifyTools b/qubes-rpc/qubes.NotifyTools
new file mode 100644
index 00000000..5c7e590a
--- /dev/null
+++ b/qubes-rpc/qubes.NotifyTools
@@ -0,0 +1 @@
+/usr/lib/qubes/qubes-notify-tools
diff --git a/qvm-tools/qvm-start b/qvm-tools/qvm-start
index 28d5fab1..0ecd063d 100755
--- a/qvm-tools/qvm-start
+++ b/qvm-tools/qvm-start
@@ -56,6 +56,8 @@ def main():
                       help="Temporarily attach specified drive as hard disk")
     parser.add_option ("--cdrom", dest="drive_cdrom", default=None,
                       help="Temporarily attach specified drive as CD/DVD")
+    parser.add_option ("--install-windows-tools", action="store_true", dest="install_windows_tools", default=False,
+                      help="Attach Windows tools CDROM to the VM")
     parser.add_option ("--dvm", action="store_true", dest="preparing_dvm", default=False,
                       help="Do actions necessary when preparing DVM image")
     parser.add_option ("--custom-config", action="store", dest="custom_config", default=None,
@@ -82,10 +84,13 @@ def main():
         print >> sys.stderr, "A VM with the name '{0}' does not exist in the system.".format(vmname)
         exit(1)
 
-    if bool(options.drive_hd) + bool(options.drive_cdrom) + bool(options.drive) > 1:
-        print >> sys.stderr, "Only one of --drive, --cdrom, --hddisk can be specified"
+    if bool(options.drive_hd) + bool(options.drive_cdrom) + bool(options.drive) + bool(options.install_windows_tools) > 1:
+        print >> sys.stderr, "Only one of --drive, --cdrom, --hddisk, --install-windows-tools can be specified"
         exit(1)
 
+    if options.install_windows_tools:
+        options.drive = 'cdrom:dom0:/usr/lib/qubes/qubes-windows-tools.iso'
+
     if options.drive_hd:
         options.drive = 'hd:' + options.drive_hd
 
diff --git a/rpm_spec/core-dom0.spec b/rpm_spec/core-dom0.spec
index f12d2cec..a31aaac1 100644
--- a/rpm_spec/core-dom0.spec
+++ b/rpm_spec/core-dom0.spec
@@ -130,6 +130,7 @@ cp linux/aux-tools/startup-misc.sh $RPM_BUILD_ROOT/usr/lib/qubes
 cp linux/aux-tools/prepare-volatile-img.sh $RPM_BUILD_ROOT/usr/lib/qubes
 cp qmemman/server.py $RPM_BUILD_ROOT/usr/lib/qubes/qmemman_daemon.py
 cp qmemman/meminfo-writer $RPM_BUILD_ROOT/usr/lib/qubes/
+cp qubes-rpc/qubes-notify-tools $RPM_BUILD_ROOT/usr/lib/qubes/
 cp qubes-rpc/qubes-notify-updates $RPM_BUILD_ROOT/usr/lib/qubes/
 cp linux/aux-tools/vusb-ctl.py $RPM_BUILD_ROOT/usr/lib/qubes/
 cp linux/aux-tools/xl-qvm-usb-attach.py $RPM_BUILD_ROOT/usr/lib/qubes/
@@ -141,6 +142,8 @@ mkdir -p $RPM_BUILD_ROOT/etc/qubes-rpc/policy
 cp qubes-rpc-policy/qubes.Filecopy.policy $RPM_BUILD_ROOT/etc/qubes-rpc/policy/qubes.Filecopy
 cp qubes-rpc-policy/qubes.OpenInVM.policy $RPM_BUILD_ROOT/etc/qubes-rpc/policy/qubes.OpenInVM
 cp qubes-rpc-policy/qubes.VMShell.policy $RPM_BUILD_ROOT/etc/qubes-rpc/policy/qubes.VMShell
+cp qubes-rpc-policy/qubes.NotifyTools.policy $RPM_BUILD_ROOT/etc/qubes-rpc/policy/qubes.NotifyTools
+cp qubes-rpc/qubes.NotifyTools $RPM_BUILD_ROOT/etc/qubes-rpc/
 cp qubes-rpc-policy/qubes.NotifyUpdates.policy $RPM_BUILD_ROOT/etc/qubes-rpc/policy/qubes.NotifyUpdates
 cp qubes-rpc/qubes.NotifyUpdates $RPM_BUILD_ROOT/etc/qubes-rpc/
 
@@ -280,6 +283,7 @@ fi
 /usr/lib/qubes/qmemman_daemon.py*
 /usr/lib/qubes/meminfo-writer
 /usr/lib/qubes/qfile-daemon-dvm*
+/usr/lib/qubes/qubes-notify-tools
 /usr/lib/qubes/qubes-notify-updates
 /usr/lib/qubes/block-cleaner-daemon.py*
 /usr/lib/qubes/vusb-ctl.py*
@@ -314,8 +318,10 @@ fi
 /etc/xen/scripts/vif-route-qubes
 %attr(0664,root,qubes) %config(noreplace) /etc/qubes-rpc/policy/qubes.Filecopy
 %attr(0664,root,qubes) %config(noreplace) /etc/qubes-rpc/policy/qubes.OpenInVM
+%attr(0664,root,qubes) %config(noreplace) /etc/qubes-rpc/policy/qubes.NotifyTools
 %attr(0664,root,qubes) %config(noreplace) /etc/qubes-rpc/policy/qubes.NotifyUpdates
 %attr(0664,root,qubes) %config(noreplace) /etc/qubes-rpc/policy/qubes.VMShell
+/etc/qubes-rpc/qubes.NotifyTools
 /etc/qubes-rpc/qubes.NotifyUpdates
 %attr(2770,root,qubes) %dir /var/log/qubes
 %attr(0770,root,qubes) %dir /var/run/qubes