diff --git a/network/network-manager-prepare-conf-dir b/network/network-manager-prepare-conf-dir
new file mode 100755
index 00000000..84a36350
--- /dev/null
+++ b/network/network-manager-prepare-conf-dir
@@ -0,0 +1,10 @@
+#!/bin/sh
+
+if [ -d /etc/NetworkManager/system-connections ]; then
+    mkdir -p /rw/config/NM-system-connections
+    mv /etc/NetworkManager/system-connections/* /rw/config/NM-system-connections/ 2> /dev/null || true
+    rmdir /etc/NetworkManager/system-connections
+    ln -s /rw/config/NM-system-connections /etc/NetworkManager/system-connections
+fi
+
+exit 0
diff --git a/network/qubes_fix_nm_conf.sh b/network/qubes_fix_nm_conf.sh
index 613fa159..9f1eca7b 100755
--- a/network/qubes_fix_nm_conf.sh
+++ b/network/qubes_fix_nm_conf.sh
@@ -4,6 +4,9 @@ VIFMAC=mac:fe:ff:ff:ff:ff:ff
 if ! grep -q ^plugins.*keyfile $FILE ; then
 	sed -i 's/^plugins.*$/&,keyfile/' $FILE
 fi
+if grep -q ^plugins.*ifcfg-rh $FILE ; then
+	sed -i 's/^plugins=\(.*\)ifcfg-rh,\(.*\)$/plugins=\1\2/' $FILE
+fi
 if ! grep -q '^\[keyfile\]$' $FILE ; then
 	echo '[keyfile]' >> $FILE
 fi
diff --git a/network/qubes_setup_dnat_to_ns b/network/qubes_setup_dnat_to_ns
index aa95186c..ef6a6dd1 100755
--- a/network/qubes_setup_dnat_to_ns
+++ b/network/qubes_setup_dnat_to_ns
@@ -14,7 +14,7 @@ source /var/run/qubes/qubes_ns
 if [ "X"$NS1 = "X" ] ; then exit ; fi
 iptables -t nat -F PR-QBS
 FIRSTONE=yes
-grep ^nameserver /etc/resolv.conf | head -2 |
+grep ^nameserver /etc/resolv.conf | grep -v ":.*:" | head -2 |
         (
         while read x y z ; do
                 addrule "$y"
diff --git a/rpm_spec/core-vm.spec b/rpm_spec/core-vm.spec
index 0b723879..12483b73 100644
--- a/rpm_spec/core-vm.spec
+++ b/rpm_spec/core-vm.spec
@@ -119,6 +119,7 @@ install network/qubes_network.rules $RPM_BUILD_ROOT/etc/udev/rules.d/99-qubes_ne
 install network/qubes_setup_dnat_to_ns $RPM_BUILD_ROOT/usr/lib/qubes
 install network/qubes_fix_nm_conf.sh $RPM_BUILD_ROOT/usr/lib/qubes
 install network/setup_ip $RPM_BUILD_ROOT/usr/lib/qubes/
+install network/network-manager-prepare-conf-dir $RPM_BUILD_ROOT/usr/lib/qubes/
 install -d $RPM_BUILD_ROOT/etc/dhclient.d
 ln -s /usr/lib/qubes/qubes_setup_dnat_to_ns $RPM_BUILD_ROOT/etc/dhclient.d/qubes_setup_dnat_to_ns.sh 
 install -d $RPM_BUILD_ROOT/etc/NetworkManager/dispatcher.d/
@@ -240,7 +241,7 @@ if [ "$1" !=  1 ] ; then
 exit 0
 fi
 
-if ! [ -f /var/lib/qubes/serial.orig ] ; then
+if [ -e /etc/init/serial.conf ] && ! [ -f /var/lib/qubes/serial.orig ] ; then
 	cp /etc/init/serial.conf /var/lib/qubes/serial.orig
 fi
 
@@ -342,6 +343,7 @@ rm -rf $RPM_BUILD_ROOT
 /usr/lib/qubes/block_cleanup
 /usr/lib/qubes/block_remove
 /usr/lib/qubes/meminfo-writer
+/usr/lib/qubes/network-manager-prepare-conf-dir
 /usr/lib/qubes/qfile-agent
 /usr/lib/qubes/qfile-unpacker
 /usr/lib/qubes/qopen-in-vm
diff --git a/vm-init.d/qubes_core_netvm b/vm-init.d/qubes_core_netvm
index 053e4be0..fa67dc42 100755
--- a/vm-init.d/qubes_core_netvm
+++ b/vm-init.d/qubes_core_netvm
@@ -15,6 +15,7 @@ start()
 
 	type=$(/usr/bin/xenstore-read qubes_vm_type)
 	if [ "$type" == "NetVM" ]; then
+		/usr/lib/qubes/network-manager-prepare-conf-dir
 		/sbin/service NetworkManager start
 	fi
 
diff --git a/vm-systemd/NetworkManager.service b/vm-systemd/NetworkManager.service
index bf1e4864..1349161c 100644
--- a/vm-systemd/NetworkManager.service
+++ b/vm-systemd/NetworkManager.service
@@ -1,3 +1,8 @@
 .include /lib/systemd/system/NetworkManager.service
 [Unit]
 ConditionPathExists=/var/run/qubes-service/network-manager
+# For /rw
+After=qubes-misc-post.service
+
+[Service]
+ExecStartPre=/usr/lib/qubes/network-manager-prepare-conf-dir
diff --git a/vm-systemd/network-proxy-setup.sh b/vm-systemd/network-proxy-setup.sh
index c12e1d3a..387e6492 100755
--- a/vm-systemd/network-proxy-setup.sh
+++ b/vm-systemd/network-proxy-setup.sh
@@ -11,4 +11,5 @@ if [ "x$network" != "x" ]; then
     echo "NS2=$secondary_dns" >> /var/run/qubes/qubes_ns
     /usr/lib/qubes/qubes_setup_dnat_to_ns
     echo "1" > /proc/sys/net/ipv4/ip_forward
+    /sbin/ethtool -K eth0 sg off
 fi
diff --git a/vm-systemd/qubes-network.service b/vm-systemd/qubes-network.service
index 86c02fe7..afb53f03 100644
--- a/vm-systemd/qubes-network.service
+++ b/vm-systemd/qubes-network.service
@@ -7,7 +7,6 @@ Before=network.target
 [Service]
 Type=oneshot
 RemainAfterExit=yes
-ExecStartPre=/sbin/ethtool -K eth0 sg off
 ExecStart=/usr/lib/qubes/init/network-proxy-setup.sh
 StandardOutput=syslog
 
diff --git a/vm-systemd/qubes-sysinit.sh b/vm-systemd/qubes-sysinit.sh
index da13fafa..dc93de5e 100755
--- a/vm-systemd/qubes-sysinit.sh
+++ b/vm-systemd/qubes-sysinit.sh
@@ -13,6 +13,11 @@ read_service() {
     $XS_READ qubes-service/$1 2> /dev/null
 }
 
+# Wait for evtchn initialization
+while [ ! -e /proc/xen/xenbus ]; do
+  sleep 0.1
+done
+
 mkdir -p /var/run/qubes
 mkdir -p /var/run/qubes-service
 mkdir -p /var/run/xen-hotplug