diff --git a/tools/xen/devstackubuntu_latecommand.sh b/tools/xen/devstackubuntu_latecommand.sh
new file mode 100644
index 0000000000..2afbe2cdf3
--- /dev/null
+++ b/tools/xen/devstackubuntu_latecommand.sh
@@ -0,0 +1,14 @@
+#!/bin/bash
+set -eux
+
+# Need to set barrier=0 to avoid a Xen bug
+# https://bugs.launchpad.net/ubuntu/+source/linux/+bug/824089
+sed -i -e 's/errors=/barrier=0,errors=/' /etc/fstab
+
+# Allow root to login with a password
+sed -i -e 's/.*PermitRootLogin.*/PermitRootLogin yes/g' /etc/ssh/sshd_config
+
+# Install the XenServer tools so IP addresses are reported
+wget --no-proxy @XS_TOOLS_URL@ -O /root/tools.deb
+dpkg -i /root/tools.deb
+rm /root/tools.deb
diff --git a/tools/xen/devstackubuntupreseed.cfg b/tools/xen/devstackubuntupreseed.cfg
index 94e6e96625..80f334ba8e 100644
--- a/tools/xen/devstackubuntupreseed.cfg
+++ b/tools/xen/devstackubuntupreseed.cfg
@@ -331,10 +331,11 @@ d-i apt-setup/backports boolean true
 tasksel tasksel/first multiselect openssh-server
 
 # Individual additional packages to install
-#d-i pkgsel/include string openssh-server build-essential
+d-i pkgsel/include string cracklib-runtime curl wget ssh openssh-server tcpdump ethtool git sudo python-netaddr coreutils
+
 # Whether to upgrade packages after debootstrap.
 # Allowed values: none, safe-upgrade, full-upgrade
-#d-i pkgsel/upgrade select none
+d-i pkgsel/upgrade select safe-upgrade
 
 # Language pack selection
 #d-i pkgsel/language-packs multiselect de, en, zh
@@ -467,4 +468,4 @@ xserver-xorg xserver-xorg/config/monitor/mode-list \
 # still a usable /target directory. You can chroot to /target and use it
 # directly, or use the apt-install and in-target commands to easily install
 # packages and run commands in the target system.
-#d-i preseed/late_command string apt-install zsh; in-target chsh -s /bin/zsh
+d-i preseed/late_command string
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index 546ead6127..8a0725152f 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -178,12 +178,32 @@ if [ -z "$templateuuid" ]; then
     PRESEED_URL=${PRESEED_URL:-""}
     if [ -z "$PRESEED_URL" ]; then
         PRESEED_URL="${HOST_IP}/devstackubuntupreseed.cfg"
+
         HTTP_SERVER_LOCATION="/opt/xensource/www"
         if [ ! -e $HTTP_SERVER_LOCATION ]; then
             HTTP_SERVER_LOCATION="/var/www/html"
             mkdir -p $HTTP_SERVER_LOCATION
         fi
+
+        # Copy the tools DEB to the XS web server
+        XS_TOOLS_URL="https://github.com/downloads/citrix-openstack/warehouse/xe-guest-utilities_5.6.100-651_amd64.deb"
+        ISO_DIR="/opt/xensource/packages/iso"
+        XS_TOOLS_FILE_NAME="xs-tools.deb"
+        XS_TOOLS_PATH="/root/$XS_TOOLS_FILE_NAME"
+        if [ -e "$ISO_DIR" ]; then
+            TOOLS_ISO=$(ls -1 $ISO_DIR/xs-tools-*.iso | head -1)
+            TMP_DIR=/tmp/temp.$RANDOM
+            mkdir -p $TMP_DIR
+            mount -o loop $TOOLS_ISO $TMP_DIR
+            DEB_FILE=$(ls $TMP_DIR/Linux/*amd64.deb)
+            cp $DEB_FILE $HTTP_SERVER_LOCATION
+            umount $TMP_DIR
+            rmdir $TMP_DIR
+            XS_TOOLS_URL=${HOST_IP}/$(basename $DEB_FILE)
+        fi
+
         cp -f $THIS_DIR/devstackubuntupreseed.cfg $HTTP_SERVER_LOCATION
+        cp -f $THIS_DIR/devstackubuntu_latecommand.sh $HTTP_SERVER_LOCATION/latecommand.sh
 
         sed \
             -e "s,\(d-i mirror/http/hostname string\).*,\1 $UBUNTU_INST_HTTP_HOSTNAME,g" \
@@ -191,7 +211,12 @@ if [ -z "$templateuuid" ]; then
             -e "s,\(d-i mirror/http/proxy string\).*,\1 $UBUNTU_INST_HTTP_PROXY,g" \
             -e "s,\(d-i passwd/root-password password\).*,\1 $GUEST_PASSWORD,g" \
             -e "s,\(d-i passwd/root-password-again password\).*,\1 $GUEST_PASSWORD,g" \
+            -e "s,\(d-i preseed/late_command string\).*,\1 in-target mkdir -p /tmp; in-target wget --no-proxy ${HOST_IP}/latecommand.sh -O /root/latecommand.sh; in-target bash /root/latecommand.sh,g" \
             -i "${HTTP_SERVER_LOCATION}/devstackubuntupreseed.cfg"
+
+        sed \
+            -e "s,@XS_TOOLS_URL@,$XS_TOOLS_URL,g" \
+            -i "${HTTP_SERVER_LOCATION}/latecommand.sh"
     fi
 
     # Update the template
diff --git a/tools/xen/prepare_guest.sh b/tools/xen/prepare_guest.sh
index 7fe032a064..6de1afc199 100755
--- a/tools/xen/prepare_guest.sh
+++ b/tools/xen/prepare_guest.sh
@@ -16,9 +16,8 @@ set -o xtrace
 
 # Configurable nuggets
 GUEST_PASSWORD="$1"
-XS_TOOLS_PATH="$2"
-STACK_USER="$3"
-DOMZERO_USER="$4"
+STACK_USER="$2"
+DOMZERO_USER="$3"
 
 
 function setup_domzero_user {
@@ -70,16 +69,6 @@ EOF
 
 }
 
-# Install basics
-apt-get update
-apt-get install -y cracklib-runtime curl wget ssh openssh-server tcpdump ethtool
-apt-get install -y git sudo python-netaddr coreutils
-
-# Install XenServer guest utilities
-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 /usr/share/cracklib
diff --git a/tools/xen/prepare_guest_template.sh b/tools/xen/prepare_guest_template.sh
index 6cb2ca7099..6cddddaa84 100755
--- a/tools/xen/prepare_guest_template.sh
+++ b/tools/xen/prepare_guest_template.sh
@@ -46,28 +46,6 @@ if [ ! -d $STAGING_DIR/etc ]; then
     exit 1
 fi
 
-# Copy XenServer tools deb into the VM
-ISO_DIR="/opt/xensource/packages/iso"
-XS_TOOLS_FILE_NAME="xs-tools.deb"
-XS_TOOLS_PATH="/root/$XS_TOOLS_FILE_NAME"
-if [ -e "$ISO_DIR" ]; then
-    TOOLS_ISO=$(ls -1 $ISO_DIR/xs-tools-*.iso | head -1)
-    TMP_DIR=/tmp/temp.$RANDOM
-    mkdir -p $TMP_DIR
-    mount -o loop $TOOLS_ISO $TMP_DIR
-    DEB_FILE=$(ls $TMP_DIR/Linux/*amd64.deb)
-    echo "Copying XenServer tools into VM from: $DEB_FILE"
-    cp $DEB_FILE "${STAGING_DIR}${XS_TOOLS_PATH}"
-    umount $TMP_DIR
-    rm -rf $TMP_DIR
-else
-    echo "WARNING: no XenServer tools found, falling back to 5.6 tools"
-    TOOLS_URL="https://github.com/downloads/citrix-openstack/warehouse/xe-guest-utilities_5.6.100-651_amd64.deb"
-    curl --no-sessionid -L -o "$XS_TOOLS_FILE_NAME" $TOOLS_URL
-    cp $XS_TOOLS_FILE_NAME "${STAGING_DIR}${XS_TOOLS_PATH}"
-    rm -rf $XS_TOOLS_FILE_NAME
-fi
-
 # Copy prepare_guest.sh to VM
 mkdir -p $STAGING_DIR/opt/stack/
 cp $TOP_DIR/prepare_guest.sh $STAGING_DIR/opt/stack/prepare_guest.sh
@@ -79,14 +57,10 @@ cp $STAGING_DIR/etc/rc.local $STAGING_DIR/etc/rc.local.preparebackup
 cat <<EOF >$STAGING_DIR/etc/rc.local
 #!/bin/sh -e
 bash /opt/stack/prepare_guest.sh \\
-    "$GUEST_PASSWORD" "$XS_TOOLS_PATH" "$STACK_USER" "$DOMZERO_USER" \\
+    "$GUEST_PASSWORD" "$STACK_USER" "$DOMZERO_USER" \\
     > /opt/stack/prepare_guest.log 2>&1
 EOF
 
-# Need to set barrier=0 to avoid a Xen bug
-# https://bugs.launchpad.net/ubuntu/+source/linux/+bug/824089
-sed -i -e 's/errors=/barrier=0,errors=/' $STAGING_DIR/etc/fstab
-
 # Update ubuntu repositories
 cat > $STAGING_DIR/etc/apt/sources.list << EOF
 deb http://${UBUNTU_INST_HTTP_HOSTNAME}${UBUNTU_INST_HTTP_DIRECTORY} ${UBUNTU_INST_RELEASE} main restricted