diff --git a/clean_images/clean-starter.img.tar b/clean_images/clean-starter.img.tar
deleted file mode 100644
index 8f61c17..0000000
Binary files a/clean_images/clean-starter.img.tar and /dev/null differ
diff --git a/clean_images/clean-volatile.img.tar b/clean_images/clean-volatile.img.tar
new file mode 100644
index 0000000..81622f2
Binary files /dev/null and b/clean_images/clean-volatile.img.tar differ
diff --git a/cleanup_image b/cleanup_image
index ec17beb..b40f0b6 100755
--- a/cleanup_image
+++ b/cleanup_image
@@ -13,7 +13,7 @@ if ! [ -f $IMG ]; then
 	exit 1
 fi	
 ls -als $IMG
-mount -o loop,offset=$((63*512)) $IMG mnt || exit 1
+mount -o loop $IMG mnt || exit 1
 INSTALLDIR=`pwd`/mnt/
 yum clean packages --installroot=$INSTALLDIR 
 dd if=/dev/zero of=mnt/fillme bs=1M
diff --git a/fedorize_image b/fedorize_image
index fd3d830..f8c723f 100755
--- a/fedorize_image
+++ b/fedorize_image
@@ -11,17 +11,18 @@ fi
 
 if [ -f $IMG ]; then
         echo "-> Image file already exists, assuming *update*..."
-        mount -o loop,offset=$((63*512)) $IMG mnt || exit 1
+        mount -o loop $IMG mnt || exit 1
         INSTALLDIR=`pwd`/mnt/
 else
 
-        echo "-> Initializing empty image with part table and filesystems..."
-        tar kOxf clean_images/clean-starter.img.tar > $IMG
+        echo "-> Initializing empty image..."
+        truncate -s 10G $IMG || exit 1
 
-        touch $IMG || exit 1
+        echo "-> Creating filesystem..."
+        mkfs.ext4 -F $IMG || exit 1
 
         mkdir -p mnt
-        mount -o loop,offset=$((63*512)) $IMG mnt || exit 1
+        mount -o loop $IMG mnt || exit 1
 
         INSTALLDIR=`pwd`/mnt/
 
diff --git a/qubeize_image b/qubeize_image
index a586921..bb38218 100755
--- a/qubeize_image
+++ b/qubeize_image
@@ -33,7 +33,7 @@ cp $CLEANIMG $IMG || exit 1
 echo "--> Mouting $IMG"
 
 mkdir -p mnt
-mount -o loop,offset=$((63*512)) $IMG mnt || exit 1
+mount -o loop $IMG mnt || exit 1
 
 echo "--> Installing RPMs..."
 rpm --force --root=$(pwd)/mnt -ihv rpms_to_install/*
diff --git a/templates.spec b/templates.spec
index ea8c481..48e2412 100644
--- a/templates.spec
+++ b/templates.spec
@@ -40,6 +40,8 @@ for i in qubeized_images/root.img.part.* ; do ln $i $RPM_BUILD_ROOT/%{dest_dir}/
 touch $RPM_BUILD_ROOT/%{dest_dir}/root.img # we will create the real file in %post
 touch $RPM_BUILD_ROOT/%{dest_dir}/private.img # we will create the real file in %post
 
+cp clean_images/clean-volatile.img.tar $RPM_BUILD_ROOT/%{dest_dir}/clean-volatile.img.tar
+
 cp vm_conf_files/appvm-template.conf $RPM_BUILD_ROOT/%{dest_dir}/appvm-template.conf
 cp vm_conf_files/netvm-template.conf $RPM_BUILD_ROOT/%{dest_dir}/netvm-template.conf
 cp vm_conf_files/templatevm.conf $RPM_BUILD_ROOT/%{dest_dir}/templatevm.conf
@@ -78,6 +80,9 @@ mv %{dest_dir}/%{template_name}-root.img %{dest_dir}/root.img
 chown root.qubes %{dest_dir}/root.img
 chmod 0660 %{dest_dir}/root.img
 
+echo "--> Processing the clean-volatile.img..."
+tar --sparse -xf {dest_dir}/clean-volatile.img.tar -C %{dest_dir}
+
 if [ "$1" = 1 ] ; then
     # installing for the first time
     echo "--> Creating private.img..."
@@ -126,6 +131,8 @@ rm -rf $RPM_BUILD_ROOT
 %dir %{dest_dir}
 %ghost %{dest_dir}/root.img
 %{dest_dir}/root.img.part.*
+%ghost %{dest_dir}/clean-volatile.img
+%{dest_dir}/clean-volatile.img.tar
 %ghost %{dest_dir}/private.img
 %{dest_dir}/appvm-template.conf
 %{dest_dir}/netvm-template.conf
diff --git a/vm_conf_files/appvm-template.conf b/vm_conf_files/appvm-template.conf
index efccaa7..4301188 100644
--- a/vm_conf_files/appvm-template.conf
+++ b/vm_conf_files/appvm-template.conf
@@ -12,8 +12,7 @@ name = "%VMNAME%"
 
 disk = [ 'snapshot:%TEMPLATEDIR%/root.img:%TEMPLATEDIR%/root-cow.img,xvda,r', 
 	 'file:%VMDIR%/private.img,xvdb,w',
-	 'file:%VMDIR%/root-cow.img,xvdc,w',
-	 'file:%VMDIR%/swap-cow.img,xvdd,w'
+	 'file:%VMDIR%/volatile.img,xvdc,w',
        ]
 
 vcpus = %VCPUS%
diff --git a/vm_conf_files/netvm-template.conf b/vm_conf_files/netvm-template.conf
index 266c861..56091e0 100644
--- a/vm_conf_files/netvm-template.conf
+++ b/vm_conf_files/netvm-template.conf
@@ -14,8 +14,7 @@ pci = [ %PCIDEVS% ]
 
 disk = [ 'snapshot:%TEMPLATEDIR%/root.img:%TEMPLATEDIR%/root-cow.img,xvda,r', 
 	 'file:%VMDIR%/private.img,xvdb,w',
-	 'file:%VMDIR%/root-cow.img,xvdc,w',
-	 'file:%VMDIR%/swap-cow.img,xvdd,w'
+	 'file:%VMDIR%/volatile.img,xvdc,w',
        ]
 
 vcpus = %VCPUS%
diff --git a/vm_conf_files/standalone-template.conf b/vm_conf_files/standalone-template.conf
index 024f476..ccbcd4d 100644
--- a/vm_conf_files/standalone-template.conf
+++ b/vm_conf_files/standalone-template.conf
@@ -12,6 +12,7 @@ name = "%VMNAME%"
 
 disk = [ 'file:%VMDIR%/root.img,xvda,w', 
 	 'file:%VMDIR%/private.img,xvdb,w'
+	 'file:%VMDIR%/volatile.img,xvdc,w'
        ]
 
 vcpus = %VCPUS%
diff --git a/vm_conf_files/templatevm.conf b/vm_conf_files/templatevm.conf
index 2cc51de..f4ae0e4 100644
--- a/vm_conf_files/templatevm.conf
+++ b/vm_conf_files/templatevm.conf
@@ -12,6 +12,7 @@ name = "%TEMPLATENAME%"
 
 disk = [ 'origin:/var/lib/qubes/vm-templates/%TEMPLATENAME%/root.img:/var/lib/qubes/vm-templates/%TEMPLATENAME%/root-cow.img,xvda,w', 
 	 'file:/var/lib/qubes/vm-templates/%TEMPLATENAME%/private.img,xvdb,w',
+	 'file:/var/lib/qubes/vm-templates/%TEMPLATENAME%/volatile.img,xvdc,w',
        ]
 
 vcpus = 1
diff --git a/vm_initramfs_patches/qubes_cow_setup.sh b/vm_initramfs_patches/qubes_cow_setup.sh
index 0944da9..117d257 100755
--- a/vm_initramfs_patches/qubes_cow_setup.sh
+++ b/vm_initramfs_patches/qubes_cow_setup.sh
@@ -13,25 +13,19 @@ modprobe xenblk || modprobe xen-blkfront || echo "Qubes: Cannot load Xen Block F
 
 echo "Waiting for /dev/xvda* devices..."
 while ! [ -e /dev/xvda ]; do sleep 0.1; done
-while ! [ -e /dev/xvda1 ] ; do sleep 0.1; done
-while ! [ -e /dev/xvda2 ] ; do sleep 0.1; done
 
 if [ `blockdev --getro /dev/xvda` = 1 ] ; then
 	echo "Qubes: Doing COW setup for AppVM..."
 
 	while ! [ -e /dev/xvdc ]; do sleep 0.1; done
-	while ! [ -e /dev/xvdd ]; do sleep 0.1; done
+	while ! [ -e /dev/xvdc2 ]; do sleep 0.1; done
 
-	echo "0 `blockdev --getsz /dev/xvda1` snapshot /dev/xvda1 /dev/xvdc P 16" | \
+	echo "0 `blockdev --getsz /dev/xvda` snapshot /dev/xvda /dev/xvdc2 P 16" | \
     		dmsetup create dmroot || { echo "Qubes: FATAL: cannot create dmroot!"; }
-	echo "0 `blockdev --getsz /dev/xvda2` snapshot /dev/xvda2 /dev/xvdd P 16" | \
-    		dmsetup create dmswap || { echo "Qubes: FATAL: cannot create dmswap!"; }
 	echo Qubes: done.
 else
 	echo "Qubes: Doing R/W setup for TemplateVM..."
-	echo "0 `blockdev --getsz /dev/xvda1` linear /dev/xvda1 0" | \
+	echo "0 `blockdev --getsz /dev/xvda` linear /dev/xvda 0" | \
     		dmsetup create dmroot || { echo "Qubes: FATAL: cannot create dmroot!"; exit 1; }
-	echo "0 `blockdev --getsz /dev/xvda2` linear /dev/xvda2 0" | \
-    		dmsetup create dmswap || { echo "Qubes: FATAL: cannot create dmswap!"; exit 1; }
 	echo Qubes: done.
 fi