diff --git a/cmd/cloudcfg/cloudcfg.go b/cmd/cloudcfg/cloudcfg.go
index 10d5e3b17ae..bf9d89399a9 100644
--- a/cmd/cloudcfg/cloudcfg.go
+++ b/cmd/cloudcfg/cloudcfg.go
@@ -21,7 +21,6 @@ import (
 	"fmt"
 	"io/ioutil"
 	"log"
-	"net/http"
 	"net/url"
 	"os"
 	"strconv"
@@ -48,6 +47,7 @@ var (
 	yaml         = flag.Bool("yaml", false, "If true, print raw YAML for responses")
 	verbose      = flag.Bool("verbose", false, "If true, print extra information")
 	proxy        = flag.Bool("proxy", false, "If true, run a proxy to the api server")
+	www          = flag.String("www", "", "If -proxy is true, use this directory to serve static files")
 )
 
 func usage() {
@@ -98,11 +98,6 @@ func main() {
 		os.Exit(0)
 	}
 
-	if len(flag.Args()) < 1 {
-		usage()
-		os.Exit(1)
-	}
-	method := flag.Arg(0)
 	secure := true
 	parsedUrl, err := url.Parse(*httpServer)
 	if err != nil {
@@ -121,14 +116,17 @@ func main() {
 	}
 
 	if *proxy {
-		server := cloudcfg.ProxyServer{
-			Host:   *httpServer,
-			Client: &http.Client{},
-		}
-		http.Handle("/api/", &server)
-		log.Fatal(http.ListenAndServe(":8001", nil))
+		log.Println("Starting to serve on localhost:8001")
+		server := cloudcfg.NewProxyServer(*www, *httpServer, auth)
+		log.Fatal(server.Serve())
 	}
 
+	if len(flag.Args()) < 1 {
+		usage()
+		os.Exit(1)
+	}
+	method := flag.Arg(0)
+
 	matchFound := executeAPIRequest(method, auth) || executeControllerRequest(method, auth)
 	if matchFound == false {
 		log.Fatalf("Unknown command %s", method)
diff --git a/pkg/api/types.go b/pkg/api/types.go
index a9d15a3f47b..f0e43638bb0 100644
--- a/pkg/api/types.go
+++ b/pkg/api/types.go
@@ -197,7 +197,8 @@ type Status struct {
 	// One of: "success", "failure", "working" (for operations not yet completed)
 	// TODO: if "working", include an operation identifier so final status can be
 	// checked.
-	Status string `json:"status,omitempty" yaml:"status,omitempty"`
+	Status  string `json:"status,omitempty" yaml:"status,omitempty"`
+	Details string `json:"details,omitempty" yaml:"details,omitempty"`
 }
 
 // Values of Status.Status
diff --git a/pkg/client/request.go b/pkg/client/request.go
index a8ad1da0bbc..30bd13ccb83 100644
--- a/pkg/client/request.go
+++ b/pkg/client/request.go
@@ -147,7 +147,7 @@ func (r *Request) Body(obj interface{}) *Request {
 	return r
 }
 
-// Format and execute the request.
+// Format and xecute the request. Returns the API object received, or an error.
 func (r *Request) Do() Result {
 	if r.err != nil {
 		return Result{err: r.err}
diff --git a/pkg/cloudcfg/cloudcfg.go b/pkg/cloudcfg/cloudcfg.go
index cafaaddaa4d..b4ca4b807a6 100644
--- a/pkg/cloudcfg/cloudcfg.go
+++ b/pkg/cloudcfg/cloudcfg.go
@@ -79,7 +79,9 @@ func Update(name string, client client.ClientInterface, updatePeriod time.Durati
 		return err
 	}
 	for _, pod := range podList.Items {
-		_, err = client.UpdatePod(pod)
+		// We delete the pod here, the controller will recreate it.  This will result in pulling
+		// a new Docker image.  This isn't a full "update" but its what we support for now.
+		err = client.DeletePod(pod.ID)
 		if err != nil {
 			return err
 		}
diff --git a/pkg/cloudcfg/cloudcfg_test.go b/pkg/cloudcfg/cloudcfg_test.go
index b016fccca3d..e8e57d41288 100644
--- a/pkg/cloudcfg/cloudcfg_test.go
+++ b/pkg/cloudcfg/cloudcfg_test.go
@@ -131,8 +131,9 @@ func TestUpdateWithPods(t *testing.T) {
 	}
 	validateAction(Action{action: "get-controller", value: "foo"}, client.actions[0], t)
 	validateAction(Action{action: "list-pods"}, client.actions[1], t)
-	validateAction(Action{action: "update-pod", value: "pod-1"}, client.actions[2], t)
-	validateAction(Action{action: "update-pod", value: "pod-2"}, client.actions[3], t)
+	// Update deletes the pods, it relies on the replication controller to replace them.
+	validateAction(Action{action: "delete-pod", value: "pod-1"}, client.actions[2], t)
+	validateAction(Action{action: "delete-pod", value: "pod-2"}, client.actions[3], t)
 }
 
 func TestUpdateNoPods(t *testing.T) {
diff --git a/pkg/cloudcfg/proxy_server.go b/pkg/cloudcfg/proxy_server.go
index 77270edad73..f0ae0bbda7f 100644
--- a/pkg/cloudcfg/proxy_server.go
+++ b/pkg/cloudcfg/proxy_server.go
@@ -17,33 +17,74 @@ limitations under the License.
 package cloudcfg
 
 import (
+	"fmt"
 	"io/ioutil"
-	"log"
 	"net/http"
+
+	"github.com/GoogleCloudPlatform/kubernetes/pkg/api"
+	"github.com/GoogleCloudPlatform/kubernetes/pkg/client"
 )
 
 type ProxyServer struct {
 	Host   string
-	Client *http.Client
+	Auth   *client.AuthInfo
+	Client *client.Client
+}
+
+func NewProxyServer(filebase, host string, auth *client.AuthInfo) *ProxyServer {
+	server := &ProxyServer{
+		Host:   host,
+		Auth:   auth,
+		Client: client.New(host, auth),
+	}
+	fileServer := &fileServer{
+		prefix: "/static/",
+		base:   filebase,
+	}
+	http.Handle("/api/", server)
+	http.Handle("/static/", fileServer)
+	return server
+}
+
+// Starts the server, loops forever.
+func (s *ProxyServer) Serve() error {
+	return http.ListenAndServe(":8001", nil)
+}
+
+func (s *ProxyServer) doError(w http.ResponseWriter, err error) {
+	w.WriteHeader(http.StatusInternalServerError)
+	w.Header().Add("Content-type", "application/json")
+	data, _ := api.Encode(api.Status{
+		Status:  api.StatusFailure,
+		Details: fmt.Sprintf("internal error: %#v", err),
+	})
+	w.Write(data)
 }
 
 func (s *ProxyServer) ServeHTTP(w http.ResponseWriter, r *http.Request) {
-	req, err := http.NewRequest(r.Method, s.Host+r.URL.Path, r.Body)
-	if err != nil {
-		log.Printf("Error: %#v", err)
+	result := s.Client.Verb(r.Method).Path(r.URL.Path).Do()
+	if result.Error() != nil {
+		s.doError(w, result.Error())
 		return
 	}
-	res, err := s.Client.Do(req)
+	w.WriteHeader(http.StatusOK)
+	w.Header().Add("Content-type", "application/json")
+	data, err := result.Raw()
 	if err != nil {
-		log.Printf("Error: %#v", err)
-		return
-	}
-	w.WriteHeader(res.StatusCode)
-	defer res.Body.Close()
-	data, err := ioutil.ReadAll(res.Body)
-	if err != nil {
-		log.Printf("Error: %#v", err)
+		s.doError(w, err)
 		return
 	}
 	w.Write(data)
 }
+
+type fileServer struct {
+	prefix string
+	base   string
+}
+
+func (f *fileServer) ServeHTTP(w http.ResponseWriter, r *http.Request) {
+	filename := r.URL.Path[len(f.prefix):]
+	bytes, _ := ioutil.ReadFile(f.base + filename)
+	w.WriteHeader(http.StatusOK)
+	w.Write(bytes)
+}