diff --git a/vm/README.txt b/vm/README.txt
index 1138f8bd..e6ff7df3 100644
--- a/vm/README.txt
+++ b/vm/README.txt
@@ -2,10 +2,10 @@ Create virtual disk of pan.do/ra
 
 == Preparations ==
 
-Pan.do/ra VM scripts use python-vm-builder,
-its available in ubuntu 12.04 and later
+Pan.do/ra VM scripts use vmdebootstrap 0.9 or later
+You also need qemu to run the vm and virtualbox to convert the image
 
-  apt-get install python-vm-builder
+  apt-get install vmdebootstrap virtualbox qemu
 
 
 == Building ==
@@ -14,7 +14,12 @@ You can configure some of the arguments in build.sh once done run:
 
  ./build.sh
 
-this will create a vdi image in pandora/
+this will create a vdi image in pandora-r{REVISON}.vdi
+
+If you have a local apt-cacher instance export MIRROR:
+
+export MIRROR="--mirror http://<LOCAL IP>:3142/archive.ubuntu.com/ubuntu/ --configure-apt"
+./build.sh
 
 
 == VirtualBox Usage ==
diff --git a/vm/build.sh b/vm/build.sh
index eb18bb8f..4ce9c7d6 100755
--- a/vm/build.sh
+++ b/vm/build.sh
@@ -1,30 +1,46 @@
-#!/bin/sh
-size=1048576 #in MB
-arch=amd64   #i368 or amd64
-password=pandora
+#!/bin/bash
+cd "`dirname "$0"`"
+BASE=`pwd`
+VERSION=`cd ..;git rev-list HEAD --count`
+TARGET=${BASE}/pandora-r${VERSION}.vdi
+SIZE=1T
+RELEASE=trusty
 
-hypervisor=vbox #vbox or kvm
+if [ "$MIRROR" = "" ]; then
+    MIRROR="--mirror http://archive.ubuntu.com/ubuntu/"
+fi
 
-extra=""
+if [ $(id -u) -ne 0 ]; then
+    echo "you need to run $0 as root"
+    exit 1
+fi
 
-#make available as pandora.local
-extra="--addpkg avahi-daemon"
+# make sure ubuntu-archive-keyring is installed
+test -e /usr/share/keyrings/ubuntu-archive-keyring.gpg || apt-get install ubuntu-archive-keyring
 
-#to create and include in libvirt:
-#hypervisor=kvm
-#extra="--libvirt qemu:///system"
-
-base=$(pwd)
-sudo  vmbuilder $hypervisor ubuntu --suite=trusty \
-    --verbose --debug \
-    --arch $arch \
-    --dest $base/pandora \
+vmdebootstrap \
+    --image ${TARGET}.img \
+    --size ${SIZE} \
+    --sparse \
+    --distribution=${RELEASE} \
+    $MIRROR \
+    --enable-dhcp \
+    --no-serial-console \
+    --no-kernel \
+    --package "linux-image-generic" \
+    --package "avahi-daemon" \
+    --package "ssh" \
+    --mbr \
+    --grub \
+    --sudo \
+    --lock-root-password \
+    --user pandora/pandora \
     --hostname pandora \
-    --swapsize 512 \
-    --rootsize $size \
-    --user pandora \
-    --pass $password \
-    --addpkg linux-image-generic \
-    --components main,universe,multiverse \
-    --firstboot=$base/firstboot.sh \
-    $extra
+    --customize "${BASE}/prepare.sh" \
+    --log ${TARGET}.log --log-level debug --verbose
+
+echo "Installing pan.do/ra in VM"
+qemu-system-x86_64 -enable-kvm -name pandora -m 1024 -drive "format=raw,file=${TARGET}.img" -vnc :2
+rm -rf "${TARGET}"
+/usr/bin/VBoxManage convertfromraw -format VDI "${TARGET}.img" "${TARGET}"
+rm "${TARGET}.img"
diff --git a/vm/firstboot.sh b/vm/firstboot.sh
deleted file mode 100755
index 53af4739..00000000
--- a/vm/firstboot.sh
+++ /dev/null
@@ -1,7 +0,0 @@
-#!/bin/sh
-apt-get update -q
-apt-get install -y curl
-curl -L https://pan.do/ra-install > /root/pandora_install.sh
-chmod 755 /root/pandora_install.sh
-/root/pandora_install.sh >/root/pandora_install.log 2>&1
-rm /root/pandora_install.sh
diff --git a/vm/prepare.sh b/vm/prepare.sh
new file mode 100755
index 00000000..a25388de
--- /dev/null
+++ b/vm/prepare.sh
@@ -0,0 +1,47 @@
+#!/bin/sh
+set -e
+
+rootdir=$1
+base=$(dirname $0)
+RELEASE=trusty
+
+cat > "$rootdir/root/pandora_install" << EOF
+#!/bin/bash
+DEBIAN_FRONTEND=noninteractive
+sed -i "s/main/main restricted universe multiverse/g" /etc/apt/sources.list.d/base.list
+apt-get update
+apt-get -y --force-yes dist-upgrade
+
+EOF
+cat "$base/pandora_install.sh" >> "$rootdir/root/pandora_install"
+
+#reset install proxy settings
+cat >> "$rootdir/root/pandora_install" <<EOF
+cat > /etc/apt/sources.list.d/base.list <<EOS
+deb http://archive.ubuntu.com/ubuntu $RELEASE main restricted universe multiverse
+deb-src http://archive.ubuntu.com/ubuntu $RELEASE main restricted universe multiverse
+EOS
+apt-get -qq update
+sed -i \
+    -e 's/GRUB_CMDLINE_LINUX=""/GRUB_CMDLINE_LINUX="silent"/g' \
+    /etc/default/grub
+update-grub
+EOF
+
+chmod +x "$rootdir/root/pandora_install"
+
+test -e "$rootdir/etc/rc.local" && mv "$rootdir/etc/rc.local" "$rootdir/etc/rc.local.orig"
+cat > "$rootdir/etc/rc.local" <<EOF
+#!/bin/sh -e
+
+#execute pandora_install
+if [ -e /root/pandora_install ]; then
+    /root/pandora_install 2>&1 | tee /root/pandora_install.log || true
+    mv /root/pandora_install /root/pandora_installed
+    shutdown -h now
+fi
+
+exit 0
+EOF
+chmod +x "$rootdir/etc/rc.local"
+