diff --git a/recipes-extended/libvirt/libvirt-python.inc b/recipes-extended/libvirt/libvirt-python.inc
index 0b01833c..49d15fb3 100644
--- a/recipes-extended/libvirt/libvirt-python.inc
+++ b/recipes-extended/libvirt/libvirt-python.inc
@@ -1,13 +1,14 @@
 inherit python-dir
 
 # Enable the Python tool support
-EXTRA_OECONF += "--with-python=yes"
+EXTRA_OECONF += "--with-python=yes --with-python-inc-dir=-I${STAGING_INCDIR}/python${PYTHON_BASEVERSION}"
 
-SRC_URI += " file://oe_PYTHON_INCLUDES.patch"
+SRC_URI += " file://python_incdir.patch"
 
 DEPENDS  += "python python-native"
-RDEPENDS_${PN}-python += "python xen-python"
+RDEPENDS_${PN}-python += "python"
+PACKAGECONFIG_${PN}-python[xen] = ",,,xen-python"
 
 PACKAGES += "${PN}-python-dbg ${PN}-python"
-FILES_${PN}-python-dbg += "${libdir}/${PYTHON_DIR}/site-packages/.debug/"
-FILES_${PN}-python += "${libdir}/${PYTHON_DIR}/site-packages"
+FILES_${PN}-python-dbg += "${libdir}/${PYTHON_DIR}/dist-packages/.debug/"
+FILES_${PN}-python += "${libdir}/${PYTHON_DIR}/dist-packages"
diff --git a/recipes-extended/libvirt/libvirt/oe_PYTHON_INCLUDES.patch b/recipes-extended/libvirt/libvirt/oe_PYTHON_INCLUDES.patch
deleted file mode 100644
index a4913ba3..00000000
--- a/recipes-extended/libvirt/libvirt/oe_PYTHON_INCLUDES.patch
+++ /dev/null
@@ -1,39 +0,0 @@
---- libvirt-0.9.10/configure.ac.sav	2012-03-14 15:03:11.042785629 -0600
-+++ libvirt-0.9.10/configure.ac	2012-03-14 15:17:13.722309867 -0600
-@@ -2052,26 +2052,22 @@
-         AM_PATH_PYTHON(,, [:])
- 
-         if test "$PYTHON" != : ; then
--            PYTHON_CONFIG="$PYTHON-config"
--
--            if test -x "$PYTHON_CONFIG"
-+            if test -r `$as_dirname $PYTHON`/../include/python$PYTHON_VERSION/Python.h
-+            then
-+                PYTHON_INCLUDES=-I`$as_dirname $PYTHON`/../include/python$PYTHON_VERSION
-+            elif test -r $PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION/Python.h
-             then
--                PYTHON_INCLUDES=`$PYTHON_CONFIG --includes`
-+                PYTHON_INCLUDES=-I$PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION
-             else
--                if test -r $PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION/Python.h
-+                if test -r $prefix/include/python$PYTHON_VERSION/Python.h
-                 then
--                    PYTHON_INCLUDES=-I$PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION
-+                    PYTHON_INCLUDES=-I$prefix/include/python$PYTHON_VERSION
-                 else
--                    if test -r $prefix/include/python$PYTHON_VERSION/Python.h
-+                    if test -r /usr/include/python$PYTHON_VERSION/Python.h
-                     then
--                        PYTHON_INCLUDES=-I$prefix/include/python$PYTHON_VERSION
-+                        PYTHON_INCLUDES=-I/usr/include/python$PYTHON_VERSION
-                     else
--                        if test -r /usr/include/python$PYTHON_VERSION/Python.h
--                        then
--                            PYTHON_INCLUDES=-I/usr/include/python$PYTHON_VERSION
--                        else
--                            AC_MSG_ERROR([You must install python-devel to build Python bindings])
--                        fi
-+                        AC_MSG_ERROR([You must install python-devel to build Python bindings])
-                     fi
-                 fi
-             fi
diff --git a/recipes-extended/libvirt/libvirt/python_incdir.patch b/recipes-extended/libvirt/libvirt/python_incdir.patch
new file mode 100644
index 00000000..6c77b09a
--- /dev/null
+++ b/recipes-extended/libvirt/libvirt/python_incdir.patch
@@ -0,0 +1,68 @@
+Index: libvirt-0.10.2/configure.ac
+===================================================================
+--- libvirt-0.10.2.orig/configure.ac	2012-10-29 11:59:27.091615491 +0200
++++ libvirt-0.10.2/configure.ac	2012-10-29 12:09:50.067603647 +0200
+@@ -2397,6 +2397,11 @@
+ 
+ PYTHON_VERSION=
+ PYTHON_INCLUDES=
++
++AC_ARG_WITH(python-inc-dir,
++  AS_HELP_STRING([--with-python-inc-dir=DIR], [directory with Python include files]),
++   [PYTHON_INCLUDES="${withval}"], [])
++   
+ if test "$with_python" != "no" ; then
+     if test -x "$with_python/bin/python"
+     then
+@@ -2422,29 +2427,30 @@
+         AM_PATH_PYTHON(,, [:])
+ 
+         if test "$PYTHON" != : ; then
+-            PYTHON_CONFIG="$PYTHON-config"
+-
+-            if test -x "$PYTHON_CONFIG"
+-            then
+-                PYTHON_INCLUDES=`$PYTHON_CONFIG --includes`
+-            else
+-                if test -r $PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION/Python.h
+-                then
+-                    PYTHON_INCLUDES=-I$PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION
+-                else
+-                    if test -r $prefix/include/python$PYTHON_VERSION/Python.h
+-                    then
+-                        PYTHON_INCLUDES=-I$prefix/include/python$PYTHON_VERSION
+-                    else
+-                        if test -r /usr/include/python$PYTHON_VERSION/Python.h
+-                        then
+-                            PYTHON_INCLUDES=-I/usr/include/python$PYTHON_VERSION
+-                        else
+-                            AC_MSG_ERROR([You must install python-devel to build Python bindings])
+-                        fi
++            if ! test -n "$PYTHON_INCLUDES"; then
++              PYTHON_CONFIG="$PYTHON-config"
++              if test -x "$PYTHON_CONFIG"
++              then
++                  PYTHON_INCLUDES=`$PYTHON_CONFIG --includes`
++              else
++                  if test -r $PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION/Python.h
++                  then
++                      PYTHON_INCLUDES=-I$PYTHON_EXEC_PREFIX/include/python$PYTHON_VERSION
++                  else
++                      if test -r $prefix/include/python$PYTHON_VERSION/Python.h
++                      then
++                          PYTHON_INCLUDES=-I$prefix/include/python$PYTHON_VERSION
++                      else
++                          if test -r /usr/include/python$PYTHON_VERSION/Python.h
++                          then
++                              PYTHON_INCLUDES=-I/usr/include/python$PYTHON_VERSION
++                          else
++                              AC_MSG_ERROR([You must install python-devel to build Python bindings])
++                          fi
++                       fi
+                     fi
+                 fi
+-            fi
++             fi
+         else
+             AC_MSG_ERROR([You must install python to build Python bindings])
+         fi
diff --git a/recipes-extended/libvirt/libvirt_0.10.2.bb b/recipes-extended/libvirt/libvirt_0.10.2.bb
index ca09b2c2..23cd885b 100644
--- a/recipes-extended/libvirt/libvirt_0.10.2.bb
+++ b/recipes-extended/libvirt/libvirt_0.10.2.bb
@@ -5,9 +5,12 @@ LIC_FILES_CHKSUM = "file://COPYING;md5=fb919cc88dbe06ec0b0bd50e001ccf1f"
 SECTION = "console/tools"
 PR = "r0"
 
-DEPENDS="bridge-utils gnutls libxml2 lvm2 avahi polkit parted curl libpcap util-linux e2fsprogs xen pm-utils iptables ebtables dnsmasq"
+DEPENDS="bridge-utils gnutls libxml2 lvm2 avahi polkit parted curl libpcap util-linux e2fsprogs pm-utils iptables ebtables dnsmasq"
 
-RDEPENDS_${PN}-libvirtd = "bridge-utils iptables pm-utils dnsmasq xen ebtables dmidecode "
+RDEPENDS_${PN}-libvirtd = "bridge-utils iptables pm-utils dnsmasq ebtables dmidecode "
+
+#connman blocks the 53 port and libvirtd can't start its DNS service
+RCONFLICTS_${PN}_libvirtd = "connman"
 
 SRC_URI = "http://libvirt.org/sources/libvirt-${PV}.tar.gz \
 	file://libvirtd.sh \
@@ -19,7 +22,18 @@ SRC_URI[sha256sum] = "1fe69ae1268a097cc0cf83563883b51780d528c6493efe3e7d94c4160c
 inherit autotools gettext update-rc.d
 
 # Trimmed down version for Xen daemon server
-EXTRA_OECONF="--with-xenapi=no --with-libxl=${STAGING_DIR_TARGET}/lib --with-xen=yes --with-xen-inotify=yes --with-qemu=no --with-uml=no --with-openvz=no --with-vmware=no --with-phyp=no  --with-libvirtd -with-vbox=no --with-esx=no --with-hyperv=no --with-test=yes --with-remote=yes --with-macvtap=no"
+EXTRA_OECONF = "--with-libvirtd --with-test=yes --with-remote=yes --with-macvtap=no --with-polkit=no"
+
+PACKAGECONFIG ??= "xen"
+PACKAGECONFIG[qemu] = "--with-qemu --with-yajl,--without-qemu --without-yajl,qemu yajl"
+PACKAGECONFIG[xen] = "--with-xen --with-xenapi --with-libxl=${STAGING_DIR_TARGET}/lib --with-xen-inotify,--without-xen --without-xenapi --without-libxl --without-xen-inotify,xen"
+PACKAGECONFIG[uml] = "--with-uml, --without-uml"
+PACKAGECONFIG[openvz] = "--with-openvz,--without-openvz"
+PACKAGECONFIG[vmware] = "--with-vmware,--without-vmware"
+PACKAGECONFIG[phyp] = "--with-phyp,--without-phyp"
+PACKAGECONFIG[vbox] = "--with-vbox,--without-vbox"
+PACKAGECONFIG[esx] = "--with-esx,--without-esx"
+PACKAGECONFIG[hyperv] = "--with-hyperv,--without-hyperv"
 
 CACHED_CONFIGUREVARS += "\
 ac_cv_path_XMLLINT=/usr/bin/xmllint \