diff --git a/xCAT-server/share/xcat/netboot/rh/genimage b/xCAT-server/share/xcat/netboot/rh/genimage
index 9c43c4e7d..4ca404bcf 100755
--- a/xCAT-server/share/xcat/netboot/rh/genimage
+++ b/xCAT-server/share/xcat/netboot/rh/genimage
@@ -48,6 +48,7 @@ my $postinstall_filename;
 my $rootimg_dir;
 my $rwfiles;   # these files are used by statelite for tmpfs rw
 
+
 sub xdie {
    system("rm -rf /tmp/xcatinitrd.$$");
    die @_;
@@ -202,33 +203,6 @@ unless ($onlyinitrd) {
    close($yumconfig);
    mkpath "$rootimg_dir/etc";
 
-   # statelite snapshots directory added here.
-   # this is where tmpfs will be created.
-   if($mode eq "statelite"){
-			mkpath "$rootimg_dir/.snapshot";  # create place for NFS mounts.	
-			# get all the rw files that go in tmpfs
-			$rwfiles = get_rwfiles_file_name($customdir);
-			if (!$rwfiles) {
-				$rwfiles= get_rwfiles_file_name($pathtofiles);
-			} 
-			if(!$rwfiles){
-				print "Unable to find r/w file list.  Make a file called $profile.rwfiles with all the necessary read/write files\n";
-				exit 1;
-			}
-			# copyt the rwfiles to /.snapshot/files for the initfs to use.
-			copy("$rwfiles","$rootimg_dir/.snapshot/files");
-
-			# also need to create stub file for booting since this is read only
-			mkpath "$rootimg_dir/var/lib/dhclient/";
-			# create an empty file
-			open(FH,">$rootimg_dir/var/lib/dhclient/dhclient-$prinic.leases");
-			close(FH);
-			open(FH,">$rootimg_dir/var/lib/random-seed");
-			close(FH);
-
-			# link mtab.
-			system("ln -sf /proc/mounts $rootimg_dir/etc/mtab");
-   }
 
    my $fd;
    open($fd,">>","$rootimg_dir/etc/fstab");
@@ -374,6 +348,33 @@ if (($postinstall_filename) && (-x $postinstall_filename)) {
     }
 }
 
+
+# statelite .statelite directory added here.
+# this is where tmpfs will be created.
+if($mode eq "statelite"){
+	mkpath "$rootimg_dir/.statelite";  # create place for NFS mounts.	
+	# this script will get the directories.	
+	unless(-f "../add-on/statelite/rc.statelite"){
+		print "Can't find ../add-on/statelite/rc.statelite!\n";
+		exit;
+	}
+	system("cp ../add-on/statelite/rc.statelite $rootimg_dir/etc/init.d/statelite");
+	# also need to add this file:
+	# may have already been made into a symbolic link, if so ignore it
+
+	unless(-l "$rootimg_dir/var/lib/dhclient" ){
+		mkpath "$rootimg_dir/var/lib/dhclient/";
+		system("touch $rootimg_dir/var/lib/dhclient/dhclient-$prinic.leases");
+	}
+
+	unless(-l "$rootimg_dir/var/lib/dhcp" ){
+		mkpath "$rootimg_dir/var/lib/dhcp/";
+		system("touch $rootimg_dir/var/lib/dhcp/dhclient-$prinic.leases");
+	}
+}   
+
+
+
 mkinitrd();
 
 sub getlibs {
@@ -436,7 +437,7 @@ sub mkinitrd {
  	print $inifile <<EOS1;
 NEWROOT="/sysroot"
 SHELL="/bin/sh"
-RWDIR=".snapshot"
+RWDIR=".statelite"
 
 
 # Define some colors
@@ -448,8 +449,9 @@ GREEN="\033[32m"
 PINK="\033[35m\033[1m"
 MAGENTA="\033[35m"
 BROWN="\033[33m"
+NORMAL=\$RESET
 
-# This function is used to mount files/directories from the snapshot directory 
+# This function is used to mount files/directories from the .statelite directory 
 #  over the root directory.
 # This function stolen from redhat
 shell() {
@@ -479,49 +481,37 @@ mountfile () {
 #
 #  Mount the snapshotfile over the root file so the client will have r/w access
 #
-    mount -n -o bind \$NEWROOT/.snapshot/\${2}\${1} \$NEWROOT/\${1}
+    mount -n -o bind \$NEWROOT/\$RWDIR/\${2}\${1} \$NEWROOT/\${1}
 }
 
 fancydisplay () {
         clear
         echo -e "\$CYAN"
-echo "
-    7=I?~=+7                                                        =?77777?7   
-    7=77I~~?                                                =~     ?=I7777?7    
-  7+=IIIII+~+   +,,:                                      I,,,:77 ?=IIIIIII~77  
- ?~?IIIIIIII??7 ~,,,,7                                   ,,,,,,~ ?=IIIIIIII?~7  
-7?IIIIIIIIIIII+=~,,,,,~7                               +,,,,,,,+:=IIIIIIIIII77  
- ?IIIIIIIIIIIII?~:,,,,,,~                       7    =,,,,,,,,~:?IIIIII777I=I   
-  IIII777777IIII+~,,,,,,,,I          7        7   ?,,,,,:::,,:~=IIIIII?+~::+    
-   777?77  7I?77I~~,,:::,,,,~=,:I777777777?7I:,,,,,,,,,,~+II,~+?III7            
-           7    I?~:?+=~~:,,,~,,,,,,,,,,,:,,,,,,,,=+~,:=?=:~~~II7               
-                   I:+~=+=~==::~,,~::~,,,::::,::~,,,:7+:+???77                  
-                    ,~=++~?I,,~:~:~==:~:~~~+::~:~,,,,,+?=77=7                   
-                    +I7777:,~~~=+=+??+=~~+??++++=+?=~,,,,,,=                    
-                     ?,,,,:=?=:::????????????II+:,,,=:,,,,,,                    
-                     ,,:~:=+=:,,,,:???I77?+?7=:,,,,~I:,,,,,,:                   
-                    ::,:,::++?::,,,,I77~?7I?~,,,::+~,,,,,,,,,,                  
-                   =,,:~:++~~I?+=:::==,,:~7I::~~?II?~=,,+?:,,,+                 
-                   ,:~~=I?~?~~=?I+++I::?+?:?++II7+~:~,,,,:,,==:?                
-                  7:?7I++~~==+?++++=~~::~=~:=+~~:=7?=::+++,,,,~                 
-                  7,,,:+==III+=~~=+====?I+===+?III?7I,=~~~:~=,                  
-                   ,~+??==:~+77777?++??+=?I?++?777=,=~:::=I7=                   
-                   +=,:=~===~=,,,7777+?=~:I=7777~:~:~~===+?=~                   
-                   I~=~~II+===:,,,,:+::,,,,,I,~:,,::~====+?~          7         
-                 7+~=+=?II==~:~::,:~+:,,,,,:I::~:~~~==++=~~                     
-             7I=~~~~~=II=~==~~~:~:~I~,,,,,,,:~+=:~~~~==~=~~~=7                  
-    77777  +~~~~~~~~~~7I+II+=~~~~=:=~:,,,:,,==::~~~~~~+?I+=~~~~=7               
-  7=:~~~~:~~~~~~~=~~     7=+II=~~~~+?:,,~,:,++~~~~~~==? 7I?=~~~~~~~?7   7~:+    
-  ?:~~~~~~~~~~==II           ~~~~~~~::,::::,=?=~~=+II     7II=~~~~~~~~:::~~~~   
-  7?~~~~~~~~~?II               ~~~~~~==7I++??~~~+I?         7?I?~~~~~~~~~~~~~~  
-   ??~~~~~~~?I                  7==~~=:,~I~,~~?I?             7II=~~~~~~~~~~~~7 
-    I~::::~II  7                  +~:::~:,,:~?~~7                I++~:::::~=?I  
-    ~:::::?I    7                  7::::::~=+~~                   7I7+:::~I?7   
-   I~::::::=                         I~:::~~7                      ::7=::+7     
-    I?==+?I7                                                       7~~7I=I7     
-     II77                                                           7=+7I7      
-                                                                      77      
-"
+echo '
+             ..                                               :iiii,
+           :tLL;                                             .,:...,.
+          .j;:tLt.   :.                               .;j:   ij::::;.
+        :tt;:::,ii:.jEEGi                           :tDEEG:.ti,::::;t:
+       .,,,,,,,,,,,tLEEEEj:                        tDEEEEDtj;,,,::::::
+        .:,,::::::,;fDEEEEEL,.                .,ijDEDDDEEGt,,,,:,ijj;
+          ....   ..:;jDDLGDEEEGGGfjjjjjjfffLGDEEDEEDLjfGDt,:..
+                     .iftffGDLLDEEEDDDEEDDDDEDEEGLfLjjtti:
+                       ,fii;jGDGffLjifLGLjtfffffGDEDGfji
+                        ;DEEGffDDDjiii;;ii;,tGDEGjfEEEEf.
+                       ,GEGGftiGEEEDt:,;,;;LEEDGjLEEEEEEG
+                      ;DEDGjtjfitjGGjfDGj;jLLiitfGDEGjEEDj
+                      fGjjtfLfji;itjfGDjLDfjjjji;tGGLDEEDj
+                      fEDGffjti;ittjjjjtjjjjt:,,iiGGGGjtf.
+                      :fGGLfLLfLGf;i;ijffj,,tjLGDDGLfjtf,
+                    :;tLfjiiffLGDDDGLGEEEEjfGDDGGLfjfff:
+             .. ,;tLLLLLL,;tijfLGGGjfDEEEEDLLGGGLLLjtjLLfi,.
+         .jffLLLLGGLfjj;:  :,;ijLGLfjGEDDEGtfGGLfjj:.,jjLGGLti;,,;fj,
+         ,fGGGGGGLj,.          ;jGGGGLLjffftjLj;..     .,tfGGGGGGGGGGi
+          ,jGDDDj,.              :tLGLGGLGDLjt,           :iLGGDDDDGLif
+          ,LDDDL,                 .;LDDDDGfff,              ,;iGDDj;,..
+          ;fGGGf,                    ,;;;;,:                 tf;jL,
+           ;.:::,               Powered by xCAT               ,j.:;
+'
         echo -e "\$RESET"
         echo -e "\$YELLOW"
 echo '
@@ -575,7 +565,7 @@ EOS1
    }
    print $inifile <<EOMS;
 # check and see if debug is specified on command line
-grep '\(debug\)' /proc/cmdline > /dev/null && DEBUG=1
+grep '\(debug\)' /proc/cmdline > /dev/null && export DEBUG=1
 netstart
 while ! ifconfig | grep inet; do
     echo -e "\${RED}Failed to acquire address, retrying \${RESET}"
@@ -614,36 +604,40 @@ for i in `cat /proc/cmdline`; do
 	VALUE=`echo \$i |awk -F= '{print \$2}'`
 	SERVER=`echo \$VALUE|awk -F: '{print \$1}'`
 	ROOTDIR=`echo \$VALUE|awk -F/ '{for(i=2;i<=NF;i++) printf "/%s",\$i}'`
-   elif [ "\$KEY" == 'SNAPSHOT' ]; then
+   elif [ "\$KEY" == 'STATEMNT' ]; then
 	NFSROOT=1
 	VALUE=`echo \$i |awk -F= '{print \$2}'`
 	SNAPSHOTSERVER=`echo \$VALUE|awk -F: '{print \$1}'`
 	SNAPSHOTROOT=`echo \$VALUE|awk -F/ '{for(i=2;i<=NF;i++) printf "/%s",\$i}'`
+	# may be that there is not server and just a directory.
+	if [ -z \$SNAPSHOTROOT ]
+	then
+		 SNAPSHOTROOT=\$SNAPSHOTSERVER
+		SNAPSHOTSERVER=
+	fi
    fi
 done
 
 # show xCAT logo
 fancydisplay
 
-# go to debug shell if shell is specified.
-grep '\(shell\)' /proc/cmdline > /dev/null && shell
 
 echo 0 > /proc/sys/vm/zone_reclaim_mode #Avoid kernel bug
 
 # NFSROOT code here:
 if [ "\$NFSROOT" = "1" ]; then
-	echo Setting up nfs with ram overlay.
+	echo Setting up Statelite
 	# for loop back mounting capability!
 	mknod /dev/loop0 b 7 0
 	mkdir -p \$NEWROOT
-  MAXTRIES=5
-  ITER=0
-  ME=`hostname`
+ 	MAXTRIES=5
+	ITER=0
+	ME=`hostname`
 	while ! mount.nfs \${SERVER}:\${ROOTDIR}/rootimg \$NEWROOT -r -n -o nolock,rsize=32768,udp,nfsvers=3,timeo=14
 	do
 		ITER=\$(expr \$ITER + 1)
 		if [ "\$ITER" == "\$MAXTRIES" ]
-      then
+      		then
 				echo "You're dead.  rpower \$ME boot to play again."
 				echo "Possible problems:
 1.  This initrd wasn't created for statelite node?  rerun genimage with the -m statelite flag, then rerun 'nodeset \$ME statelite'
@@ -665,54 +659,108 @@ if [ "\$NFSROOT" = "1" ]; then
 	if [ ! -e "\$NEWROOT/\$RWDIR" ]
 	then
 		echo ""
-		echo -e "\${RED}Hmmm... this NFS root directory doesn't have a /.snapshot directory for me to mount a rw filesystem.  You'd better create it... \${NORMAL}"
+		echo -e "\${RED}Hmmm... this NFS root directory doesn't have a /\$RWDIR directory for me to mount a rw filesystem.  You'd better create it... \${NORMAL}"
 		echo "."
 		shell
 	fi
 
-	grep '\(shell\)' /proc/cmdline >/dev/null && shell
-	if [ -e "\$NEWROOT/\$RWDIR/files" ]; then
-		mkdir -p /rw  
-		mount -t tmpfs rw /rw
-		cp \$NEWROOT/\$RWDIR/files /rw/  # copy the files from .snapshot here now
-		mount -n --bind /rw \$NEWROOT/\$RWDIR  # remount read/writable
-
-		for i in `grep -v "^#" \$NEWROOT/\$RWDIR/files`; do
-			if [ -e \$NEWROOT/\$i ]; then
-				mountfile \$i \$ME
-			fi;
-		done
-	else
-		echo -e "\${RED}\$NEWROOT/\$RWDIR/files does not exist!  I need a list of files to mount read write... or else we'll try mounting everything read only. \$RESET"
+	while [ ! -e "\$NEWROOT/etc/init.d/statelite" ]
+	do
+		echo ""
+		echo -e "\${RED}Hmmm... \$NEWROOT/etc/init.d/statelite doesn't exist.  Perhaps you didn't create this image with the -m statelite mode"
+		echo ""
 		shell
+	done
+	grep '\\(shell\\)' /proc/cmdline >/dev/null && shell
+	mount -t tmpfs rw \$NEWROOT/\$RWDIR
+	mkdir -p \$NEWROOT/\$RWDIR/tmpfs
+
+
+	# mount the SNAPSHOT directory here for persistent use.
+	if [ ! -z \$SNAPSHOTSERVER ]
+	then
+		mkdir -p \$NEWROOT/\$RWDIR/persistent
+ 		MAXTRIES=5
+		ITER=0
+		while ! mount \$SNAPSHOTSERVER:\$SNAPSHOTROOT  \$NEWROOT/\$RWDIR/persistent
+		do
+			ITER=\$(expr \$ITER + 1)
+			if [ "\$ITER" == "\$MAXTRIES" ]
+      			then
+				echo "You're dead.  rpower \$ME boot to play again."
+				echo "Possible problems:
+1.  \$SNAPSHOTSERVER is not exporting \$SNAPSHOTROOT ?
+2.  Is DNS set up?  Maybe that's why I can't mount \$SNAPSHOTSERVER."
+				shell
+				exit
+			fi
+			echo -e "\${RED}Hmmm... Can't mount \$SNAPSHOTSERVER:\$SNAPSHOTROOT. \${NORMAL}"
+			RS=`expr \$RANDOM % 20`
+			echo -e "Trying again in \$RS seconds"
+			sleep \$RS	
+		done
 	fi
 
+	grep '\\(shell\\)' /proc/cmdline >/dev/null && shell
 
 	# have to preserve the initial DHCP request.  So we link it.
 
-	if [ ! -d \$NEWROOT/\$RWDIR/\$ME/var/lib/dhclient ]
+	if [ ! -d \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhclient ]
 	then
-		mkdir -p \$NEWROOT/\$RWDIR/\$ME/var/lib/dhclient
+		mkdir -p \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhclient
+	fi
+	if [ ! -d \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhcp ]
+	then
+		mkdir -p \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhcp
 	fi
 
-	cp -fp /var/lib/dhclient/dhclient.leases \$NEWROOT/\$RWDIR/\$ME/var/lib/dhclient/dhclient-$prinic.leases
+	cp -fp /var/lib/dhclient/dhclient.leases \${NEWROOT}/\${RWDIR}/tmpfs/var/lib/dhclient/dhclient-$prinic.leases
+	cp -fp /var/lib/dhclient/dhclient.leases \${NEWROOT}/\${RWDIR}/tmpfs/var/lib/dhcp/dhclient-$prinic.leases
 
-	while ! mount -n --bind \$NEWROOT/\$RWDIR/\$ME/var/lib/dhclient/dhclient-$prinic.leases \$NEWROOT/var/lib/dhclient/dhclient-$prinic.leases;
+	# dhclient
+	#while ! mount -n --bind \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhclient/dhclient-$prinic.leases \$NEWROOT/var/lib/dhclient/dhclient-$prinic.leases
+	#do
+	#	echo "Can't mount /tmpfs/var/lib/dhclient/dhclient-$prinic.leases to /var/lib/dhclient/dhclient-$prinic.leases"
+	#	shell
+	#done
+
+	# dhcp
+	#while ! mount -n --bind \$NEWROOT/\$RWDIR/tmpfs/var/lib/dhcp/dhclient-$prinic.leases \$NEWROOT/var/lib/dhcp/dhclient-$prinic.leases
+	#do
+	#	echo "Can't mount /tmpfs/var/lib/dhcp/dhclient-$prinic.leases to /var/lib/dhcp/dhclient-$prinic.leases"
+	#	shell
+	#done
+
+	
+
+	[ -e /etc/ntp.conf ] && mkdir -p \$NEWROOT/\$RWDIR/tmpfs/etc && cp /etc/ntp.conf \$NEWROOT/\$RWDIR/tmpfs/etc/ 
+
+	
+	[ -e /etc/ntp/step-kickers ] && mkdir -p \$NEWROOT/\$RWDIR/tmpfs/etc/ntp && cp /etc/ntp/step-kickers \$NEWROOT/\$RWDIR/tmpfs/etc/ntp 
+
+	
+	[ -e /etc/resolv.conf ] && mkdir -p \$NEWROOT/\$RWDIR/tmpfs/etc && cp /etc/resolv.conf \$NEWROOT/\$RWDIR/tmpfs/etc/ 
+
+	# now that everything is mounted, lets do this
+	# hmmm, apparently I'm checking this twice... so I'd better
+	# be really sure the file is there.
+	while [ -z \$NEWROOT/etc/init.d/statelite ]
 	do
-		echo -e "\${RED}The file /var/lib/dhclient/dhclient-$prinic.leases on your NFS root doesn't exist. I can't bind mount to it :-( \${RESET}"
-		echo -e "\${PINK}You'd better create it! :-) \${RESET}"
+		echo "\$NEWROOT/etc/init.d/statelite does not exist in image!"
 		shell
 	done
 
-	# mount /etc/resolv.conf!
-	mkdir -p \$NEWROOT/\$RWDIR/\$ME/etc
-  	cp /etc/resolv.conf \$NEWROOT/\$RWDIR/\$ME/etc/
-	mount -n --bind \$NEWROOT/\$RWDIR/\$ME/etc/resolv.conf \$NEWROOT/\$RWDIR/\$ME/etc/resolv.conf
+	# do all the mounts:
+	\$NEWROOT/etc/init.d/statelite	
+
+	# give the debug shell just before we go if specified!
+	grep '\(shell\)' /proc/cmdline > /dev/null && shell
 
 	echo 0x100 > /proc/sys/kernel/real-root-dev
 	export keep_old_ip=yes
 	export fastboot=yes
 	export READONLY=yes
+	grep '\\(shell\\)' /proc/cmdline >/dev/null && shell
 	mount -n --bind /dev /sysroot/dev
 	umount /sys
 	umount /proc
@@ -721,7 +769,7 @@ if [ "\$NFSROOT" = "1" ]; then
 	then
 		echo ""
 		echo -e "\${RED}Couldn't switch_root.  Something must be wrong with NFS root image.\${RESET}"
-		mount -t proc proc /proc
+	#	mount -t proc proc /proc
 		shell
 	fi
 	exit