diff --git a/tools/xen/README.md b/tools/xen/README.md
index 3fadc7839c..258d7a32a7 100644
--- a/tools/xen/README.md
+++ b/tools/xen/README.md
@@ -1,5 +1,4 @@
-Getting Started With XenServer 5.6 and Devstack
-===============================================
+# Getting Started With XenServer 5.6 and Devstack
 The purpose of the code in this directory it to help developers bootstrap
 a XenServer 5.6 (or greater) + Openstack development environment.  This file gives
 some pointers on how to get started.
@@ -9,8 +8,7 @@ The Openstack services are configured to run within a "privileged" virtual
 machine on the Xenserver host (called OS domU). The VM uses the XAPI toolstack
 to communicate with the host.
 
-Step 1: Install Xenserver
-------------------------
+## Step 1: Install Xenserver
 Install XenServer 5.6+ on a clean box. You can get XenServer by signing
 up for an account on citrix.com, and then visiting:
 https://www.citrix.com/English/ss/downloads/details.asp?downloadId=2311504&productId=683148
@@ -25,16 +23,14 @@ getting started (Settings like this have been used with a laptop + cheap wifi ro
 * XenServer Gateway: 192.168.1.1
 * XenServer DNS: 192.168.1.1
 
-Step 2: Download devstack
---------------------------
+## Step 2: Download devstack
 On your XenServer host, run the following commands as root:
 
     wget --no-check-certificate https://github.com/openstack-dev/devstack/zipball/master
     unzip -o master -d ./devstack
     cd devstack/*/
 
-Step 3: Configure your localrc inside the devstack directory
-------------------------------------------------------------
+## Step 3: Configure your localrc inside the devstack directory
 Devstack uses a localrc for user-specific configuration.  Note that
 the XENAPI_PASSWORD must be your dom0 root password.
 Of course, use real passwords if this machine is exposed.
@@ -43,12 +39,18 @@ Of course, use real passwords if this machine is exposed.
     MYSQL_PASSWORD=my_super_secret
     SERVICE_TOKEN=my_super_secret
     ADMIN_PASSWORD=my_super_secret
-    SERVICE_PASSWORD=$ADMIN_PASSWORD
+    SERVICE_PASSWORD=my_super_secret
     RABBIT_PASSWORD=my_super_secret
-    # This is the password for your guest (for both stack and root users)
+    SWIFT_HASH="66a3d6b56c1f479c8b4e70ab5c2000f5"
+    # This is the password for the OpenStack VM (for both stack and root users)
     GUEST_PASSWORD=my_super_secret
+
+    # XenAPI parameters
     # IMPORTANT: The following must be set to your dom0 root password!
-    XENAPI_PASSWORD=my_super_secret
+    XENAPI_PASSWORD=my_xenserver_root_password
+    XENAPI_CONNECTION_URL="http://address_of_your_xenserver"
+    VNCSERVER_PROXYCLIENT_ADDRESS=address_of_your_xenserver
+
     # Do not download the usual images yet!
     IMAGE_URLS=""
     # Explicitly set virt driver here
@@ -60,34 +62,32 @@ Of course, use real passwords if this machine is exposed.
     # Host Interface, i.e. the interface on the nova vm you want to expose the
     # services on. Usually eth2 (management network) or eth3 (public network) and
     # not eth0 (private network with XenServer host) or eth1 (VM traffic network)
-    # This is also used as the interface for the Ubuntu install
     # The default is eth3.
     # HOST_IP_IFACE=eth3
+
+    # Settings for netinstalling Ubuntu
+    # UBUNTU_INST_RELEASE=precise
+
     # First time Ubuntu network install params
-    NETINSTALLIP="dhcp"
-    NAMESERVERS=""
-    NETMASK=""
-    GATEWAY=""
+    # UBUNTU_INST_IFACE="eth3"
+    # UBUNTU_INST_IP="dhcp"
     EOF
 
-Step 4: Run ./install_os_domU.sh from the tools/xen directory
--------------------------------------------------------------
-cd tools/xen
-./install_os_domU.sh
+## Step 4: Run `./install_os_domU.sh` from the `tools/xen` directory
 
-Once this script finishes executing, log into the VM (openstack domU)
-that it installed and tail the run.sh.log file. You will need to wait
-until it run.sh has finished executing.
+    cd tools/xen
+    ./install_os_domU.sh
 
+Once this script finishes executing, log into the VM (openstack domU) that it
+installed and tail the run.sh.log file. You will need to wait until it run.sh
+has finished executing.
 
-Step 5: Do cloudy stuff!
---------------------------
+## Step 5: Do cloudy stuff!
 * Play with horizon
 * Play with the CLI
 * Log bugs to devstack and core projects, and submit fixes!
 
-Step 6: Run from snapshot
--------------------------
+## Step 6: Run from snapshot
 If you want to quicky re-run devstack from a clean state,
 using the same settings you used in your previous run,
-you can revert the DomU to the snapshot called "before_first_boot"
+you can revert the DomU to the snapshot called `before_first_boot`
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index 7c3b839209..bcea939932 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -1,15 +1,13 @@
 #!/bin/bash
 
-# This script is a level script
-# It must be run on a XenServer or XCP machine
+# This script must be run on a XenServer or XCP machine
 #
 # It creates a DomU VM that runs OpenStack services
 #
 # For more details see: README.md
 
-# Exit on errors
 set -o errexit
-# Echo commands
+set -o nounset
 set -o xtrace
 
 # Abort if localrc is not set
@@ -31,13 +29,12 @@ THIS_DIR=$(cd $(dirname "$0") && pwd)
 # xapi functions
 . $THIS_DIR/functions
 
-
 #
 # Get Settings
 #
 
 # Source params - override xenrc params in your localrc to suit your taste
-source xenrc
+source $THIS_DIR/xenrc
 
 xe_min()
 {
diff --git a/tools/xen/prepare_guest.sh b/tools/xen/prepare_guest.sh
index fe52445424..0e112263e2 100755
--- a/tools/xen/prepare_guest.sh
+++ b/tools/xen/prepare_guest.sh
@@ -10,54 +10,51 @@
 # creating the user called "stack",
 # and shuts down the VM to signal the script has completed
 
-set -x
-# Echo commands
+set -o errexit
+set -o nounset
 set -o xtrace
 
 # Configurable nuggets
-GUEST_PASSWORD=${GUEST_PASSWORD:-secrete}
-STAGING_DIR=${STAGING_DIR:-stage}
-DO_TGZ=${DO_TGZ:-1}
-XS_TOOLS_PATH=${XS_TOOLS_PATH:-"/root/xs-tools.deb"}
-STACK_USER=${STACK_USER:-stack}
+GUEST_PASSWORD="$1"
+XS_TOOLS_PATH="$2"
+STACK_USER="$3"
 
 # Install basics
-chroot $STAGING_DIR apt-get update
-chroot $STAGING_DIR apt-get install -y cracklib-runtime curl wget ssh openssh-server tcpdump ethtool
-chroot $STAGING_DIR apt-get install -y curl wget ssh openssh-server python-pip git vim-nox sudo
-chroot $STAGING_DIR pip install xenapi
+apt-get update
+apt-get install -y cracklib-runtime curl wget ssh openssh-server tcpdump ethtool
+apt-get install -y curl wget ssh openssh-server python-pip git vim-nox sudo
+pip install xenapi
 
 # Install XenServer guest utilities
-cp $XS_TOOLS_PATH ${STAGING_DIR}${XS_TOOLS_PATH}
-chroot $STAGING_DIR dpkg -i $XS_TOOLS_PATH
-chroot $STAGING_DIR update-rc.d -f xe-linux-distribution remove
-chroot $STAGING_DIR update-rc.d xe-linux-distribution defaults
+dpkg -i $XS_TOOLS_PATH
+update-rc.d -f xe-linux-distribution remove
+update-rc.d xe-linux-distribution defaults
 
 # Make a small cracklib dictionary, so that passwd still works, but we don't
 # have the big dictionary.
-mkdir -p $STAGING_DIR/usr/share/cracklib
-echo a | chroot $STAGING_DIR cracklib-packer
+mkdir -p /usr/share/cracklib
+echo a | cracklib-packer
 
 # Make /etc/shadow, and set the root password
-chroot $STAGING_DIR "pwconv"
-echo "root:$GUEST_PASSWORD" | chroot $STAGING_DIR chpasswd
+pwconv
+echo "root:$GUEST_PASSWORD" | chpasswd
 
 # Put the VPX into UTC.
-rm -f $STAGING_DIR/etc/localtime
+rm -f /etc/localtime
 
 # Add stack user
-chroot $STAGING_DIR groupadd libvirtd
-chroot $STAGING_DIR useradd $STACK_USER -s /bin/bash -d /opt/stack -G libvirtd
-echo $STACK_USER:$GUEST_PASSWORD | chroot $STAGING_DIR chpasswd
-echo "$STACK_USER ALL=(ALL) NOPASSWD: ALL" >> $STAGING_DIR/etc/sudoers
+groupadd libvirtd
+useradd $STACK_USER -s /bin/bash -d /opt/stack -G libvirtd
+echo $STACK_USER:$GUEST_PASSWORD | chpasswd
+echo "$STACK_USER ALL=(ALL) NOPASSWD: ALL" >> /etc/sudoers
 
 # Give ownership of /opt/stack to stack user
-chroot $STAGING_DIR chown -R $STACK_USER /opt/stack
+chown -R $STACK_USER /opt/stack
 
 # Make our ip address hostnames look nice at the command prompt
-echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> $STAGING_DIR/opt/stack/.bashrc
-echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> $STAGING_DIR/root/.bashrc
-echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> $STAGING_DIR/etc/profile
+echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> /opt/stack/.bashrc
+echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> /root/.bashrc
+echo "export PS1='${debian_chroot:+($debian_chroot)}\\u@\\H:\\w\\$ '" >> /etc/profile
 
 function setup_vimrc {
     if [ ! -e $1 ]; then
@@ -72,20 +69,15 @@ EOF
 }
 
 # Setup simple .vimrcs
-setup_vimrc $STAGING_DIR/root/.vimrc
-setup_vimrc $STAGING_DIR/opt/stack/.vimrc
-
-if [ "$DO_TGZ" = "1" ]; then
-    # Compress
-    rm -f stage.tgz
-    tar cfz stage.tgz stage
-fi
+setup_vimrc /root/.vimrc
+setup_vimrc /opt/stack/.vimrc
 
 # remove self from local.rc
 # so this script is not run again
 rm -rf /etc/rc.local
-mv /etc/rc.local.preparebackup /etc/rc.local
-cp $STAGING_DIR/etc/rc.local $STAGING_DIR/etc/rc.local.backup
+
+# Restore rc.local file
+cp /etc/rc.local.preparebackup /etc/rc.local
 
 # shutdown to notify we are done
 shutdown -h now
diff --git a/tools/xen/prepare_guest_template.sh b/tools/xen/prepare_guest_template.sh
index 19bd2f841a..6ea6f6321d 100755
--- a/tools/xen/prepare_guest_template.sh
+++ b/tools/xen/prepare_guest_template.sh
@@ -15,9 +15,8 @@
 # The resultant image is started by install_os_domU.sh,
 # and once the VM has shutdown, build_xva.sh is run
 
-# Exit on errors
 set -o errexit
-# Echo commands
+set -o nounset
 set -o xtrace
 
 # This directory
@@ -75,7 +74,8 @@ cp $STAGING_DIR/etc/rc.local $STAGING_DIR/etc/rc.local.preparebackup
 
 # run prepare_guest.sh on boot
 cat <<EOF >$STAGING_DIR/etc/rc.local
-GUEST_PASSWORD=$GUEST_PASSWORD STAGING_DIR=/ \
-    DO_TGZ=0 XS_TOOLS_PATH=$XS_TOOLS_PATH \
-    bash /opt/stack/prepare_guest.sh > /opt/stack/prepare_guest.log 2>&1
+#!/bin/sh -e
+bash /opt/stack/prepare_guest.sh \\
+    "$GUEST_PASSWORD" "$XS_TOOLS_PATH" "$STACK_USER" \\
+    > /opt/stack/prepare_guest.log 2>&1
 EOF
diff --git a/tools/xen/scripts/install_ubuntu_template.sh b/tools/xen/scripts/install_ubuntu_template.sh
index 43b6decd90..00cabb038d 100755
--- a/tools/xen/scripts/install_ubuntu_template.sh
+++ b/tools/xen/scripts/install_ubuntu_template.sh
@@ -7,9 +7,8 @@
 # Based on a script by: David Markey <david.markey@citrix.com>
 #
 
-# Exit on errors
 set -o errexit
-# Echo commands
+set -o nounset
 set -o xtrace
 
 # This directory
@@ -54,11 +53,11 @@ disk_size=$(($OSDOMU_VDI_GB * 1024 * 1024 * 1024))
 pvargs="-- quiet console=hvc0 partman/default_filesystem=ext3 \
 console-setup/ask_detect=false locale=${UBUNTU_INST_LOCALE} \
 keyboard-configuration/layoutcode=${UBUNTU_INST_KEYBOARD} \
-netcfg/choose_interface=${HOST_IP_IFACE} \
+netcfg/choose_interface=${UBUNTU_INST_IFACE} \
 netcfg/get_hostname=os netcfg/get_domain=os auto \
 url=${preseed_url}"
 
-if [ "$NETINSTALLIP" != "dhcp" ]; then
+if [ "$UBUNTU_INST_IP" != "dhcp" ]; then
     netcfgargs="netcfg/disable_autoconfig=true \
 netcfg/get_nameservers=${UBUNTU_INST_NAMESERVERS} \
 netcfg/get_ipaddress=${UBUNTU_INST_IP} \
diff --git a/tools/xen/xenrc b/tools/xen/xenrc
index e4d8ac9161..1956623a81 100644
--- a/tools/xen/xenrc
+++ b/tools/xen/xenrc
@@ -8,6 +8,9 @@
 # Name of this guest
 GUEST_NAME=${GUEST_NAME:-DevStackOSDomU}
 
+# Template cleanup
+CLEAN_TEMPLATES=${CLEAN_TEMPLATES:-false}
+
 # Size of image
 VDI_MB=${VDI_MB:-5000}
 OSDOMU_MEM_MB=1024
@@ -19,7 +22,6 @@ GUEST_PASSWORD=${GUEST_PASSWORD:-secrete}
 # Host Interface, i.e. the interface on the nova vm you want to expose the
 # services on. Usually eth2 (management network) or eth3 (public network) and
 # not eth0 (private network with XenServer host) or eth1 (VM traffic network)
-# This is also used as the interface for the Ubuntu install
 HOST_IP_IFACE=${HOST_IP_IFACE:-eth3}
 
 #
@@ -65,12 +67,11 @@ UBUNTU_INST_ARCH="amd64"
 UBUNTU_INST_REPOSITORY="http://archive.ubuntu.net/ubuntu"
 UBUNTU_INST_LOCALE="en_US"
 UBUNTU_INST_KEYBOARD="us"
-# network configuration for HOST_IP_IFACE during install
+# network configuration for ubuntu netinstall
+UBUNTU_INST_IFACE="eth3"
 UBUNTU_INST_IP="dhcp"
 UBUNTU_INST_NAMESERVERS=""
 UBUNTU_INST_NETMASK=""
 UBUNTU_INST_GATEWAY=""
 
-# Load stackrc defaults
-# then override with settings from localrc
-cd ../.. && source ./stackrc && cd $TOP_DIR
+source ../../stackrc