diff --git a/makexcatsnrpm b/makexcatsnrpm
index d893db0ca..9f7f87e11 100755
--- a/makexcatsnrpm
+++ b/makexcatsnrpm
@@ -12,6 +12,7 @@ then
     gzip -f /opt/freeware/src/packages/SOURCES/license.tar
 
     cp xcat.conf /opt/freeware/src/packages/SOURCES
+    cp xCATSN /usr/src/$pkg/SOURCES
     rm -f /opt/freeware/src/packages/SRPMS/xCATsn-$VER*rpm /opt/freeware/src/packages/RPMS/ppc/xCATsn-$VER*rpm
     cd -
 
@@ -30,6 +31,7 @@ else
 	cd `dirname $0`/xCATsn
 	tar --exclude .svn -czf /usr/src/$pkg/SOURCES/license.tar.gz LICENSE.html
 	cp xcat.conf /usr/src/$pkg/SOURCES
+        cp xCATSN /usr/src/$pkg/SOURCES
 	rm -f /usr/src/$pkg/SRPMS/xCATsn-$VER*rpm /usr/src/$pkg/RPMS/*/xCATsn-$VER*rpm
 	cd -
    if [ ! -z "$1" ]; then
diff --git a/xCATsn/xCATsn.spec b/xCATsn/xCATsn.spec
index 89e642585..83e2bf7ae 100644
--- a/xCATsn/xCATsn.spec
+++ b/xCATsn/xCATsn.spec
@@ -71,8 +71,6 @@ if [ "$1" = "1" ]; then #Only if installing for the first time..
 # so conserver will start
  mkdir -p /var/log/consoles
 
-# makes it a service node
-  touch /etc/xCATSN
 # remove any management node file
 if [ -f /etc/xCATMN ]; then
   rm  /etc/xCATMN