diff --git a/Dockerfile b/Dockerfile
index 9bf4e5fd..c73403e2 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,7 +1,9 @@
 FROM debian:jessie
+ENV DEBIAN_FRONTEND noninteractive
+RUN apt-get update && apt-get install -y grub2 parted
+
 COPY ./scripts/installer /scripts
-COPY ./scripts/version /scripts/
-RUN /scripts/bootstrap
+COPY ./build.conf /scripts/
 
 COPY ./dist/artifacts/vmlinuz /dist/vmlinuz
 COPY ./dist/artifacts/initrd  /dist/initrd
diff --git a/Makefile b/Makefile
index 40d6a15d..97d39da4 100644
--- a/Makefile
+++ b/Makefile
@@ -1,4 +1,5 @@
-include common.make
+include build.conf
+FORCE_PULL := 0
 
 
 compile: bin/rancheros
@@ -30,6 +31,10 @@ build-all: ros-build-image
 	docker cp ros-build:/go/src/github.com/rancherio/os/dist/artifacts dist/
 
 
+installer: ros-build-image
+	./scripts/docker-run.sh --rm make -f Makefile.docker FORCE_PULL=$(FORCE_PULL) $@
+
+
 version:
 	@echo $(VERSION)
 
@@ -38,4 +43,4 @@ clean:
 	rm -rf bin build dist gopath .dockerfile
 
 
-.PHONY: all compile clean build-all ros-build-image ros-build-base version bin/rancheros
+.PHONY: all compile clean build-all ros-build-image ros-build-base version bin/rancheros installer
diff --git a/Makefile.docker b/Makefile.docker
index b0ff821a..e162f925 100644
--- a/Makefile.docker
+++ b/Makefile.docker
@@ -1,8 +1,6 @@
-include common.make
+include build.conf
+FORCE_PULL := 0
 
-DOCKER_BINARY_URL := https://github.com/rancher/docker/releases/download/v1.8.1-ros/docker-1.8.1
-KERNEL_URL        := https://github.com/rancher/os-kernel/releases/download/Ubuntu-3.19.0-27.29-ros1/linux-3.19.8-ckt5-rancher-x86.tar.gz
-DFS_IMAGE         := rancher/docker:1.8.1
 
 bin/rancheros:
 	mkdir -p $(dir $@)
@@ -26,7 +24,7 @@ $(DIST)/artifacts/vmlinuz: $(BUILD)/kernel/
 
 
 $(BUILD)/kernel/:
-	mkdir -p $@ && curl -L "$(KERNEL_URL)" | tar -xzf - -C $@ --strip=0
+	mkdir -p $@ && curl -L "$(COMPILED_KERNEL_URL)" | tar -xzf - -C $@ --strip=0
 
 
 $(BUILD)/images.tar: bin/rancheros
@@ -38,7 +36,7 @@ $(DIST)/artifacts/initrd: bin/rancheros assets/docker $(BUILD)/kernel/ $(BUILD)/
 	DFS_IMAGE=$(DFS_IMAGE) ./scripts/mk-initrd.sh
 
 
-$(DIST)/artifacts/rancheros.iso: $(DIST)/artifacts/initrd $(DIST)/artifacts/vmlinuz
+$(DIST)/artifacts/rancheros.iso: minimal
 	./scripts/mk-rancheros-iso.sh
 
 
@@ -49,18 +47,16 @@ $(DIST)/artifacts/iso-checksums.txt: $(DIST)/artifacts/rancheros.iso
 version:
 	@echo $(VERSION)
 
-installer: $(DIST)/artifacts/initrd $(DIST)/artifacts/vmlinuz
-	docker build -t rancher/os:$(VERSION) .
+installer: minimal
+	docker build -t $(IMAGE_NAME):$(VERSION) .
 
-build-all: \
-	installer \
-	bin/rancheros \
-	$(DIST)/artifacts/initrd \
-	$(DIST)/artifacts/vmlinuz \
-	$(DIST)/artifacts/rancheros.iso \
-	$(DIST)/artifacts/iso-checksums.txt
+build-all: minimal installer iso
+
+minimal: $(DIST)/artifacts/initrd $(DIST)/artifacts/vmlinuz
+
+iso: $(DIST)/artifacts/rancheros.iso $(DIST)/artifacts/iso-checksums.txt
 
 integration-tests:
 	cd tests/integration && tox
 
-.PHONY: build-all installer version bin/rancheros integration-tests
+.PHONY: build-all minimal iso installer version bin/rancheros integration-tests
diff --git a/build.conf b/build.conf
new file mode 100644
index 00000000..f1213d64
--- /dev/null
+++ b/build.conf
@@ -0,0 +1,6 @@
+IMAGE_NAME=rancher/os
+VERSION=v0.4.0-dev
+
+DOCKER_BINARY_URL=https://github.com/rancher/docker/releases/download/v1.8.1-ros/docker-1.8.1
+COMPILED_KERNEL_URL=https://github.com/rancher/os-kernel/releases/download/Ubuntu-3.19.0-27.29-ros1/linux-3.19.8-ckt5-rancher-x86.tar.gz
+DFS_IMAGE=rancher/docker:1.8.1
diff --git a/common.make b/common.make
deleted file mode 100644
index 264bfecf..00000000
--- a/common.make
+++ /dev/null
@@ -1,3 +0,0 @@
-
-FORCE_PULL := 0
-include scripts/version
diff --git a/scripts/ci b/scripts/ci
index 0a2d2382..037af254 100755
--- a/scripts/ci
+++ b/scripts/ci
@@ -9,4 +9,4 @@ fi
 
 docker build -t ros-build-base -f Dockerfile.build-base .
 docker build -t ros-build -f Dockerfile.build .
-./scripts/docker-run.sh make -f Makefile.docker build-all integration-tests
+./scripts/docker-run.sh --name ros-ci make -f Makefile.docker build-all integration-tests
diff --git a/scripts/docker-run.sh b/scripts/docker-run.sh
index 4993ab9b..37479f47 100755
--- a/scripts/docker-run.sh
+++ b/scripts/docker-run.sh
@@ -8,9 +8,32 @@ if [ -n "$BIND_DIR" ]; then
     fi
     DOCKER_ARGS="-t -v $BIND_DIR:/go/src/github.com/rancherio/os"
 fi
-if [ -c /dev/kvm ] || [ "${PRIVILEGED}" == "1" ]; then
-    DOCKER_ARGS="${DOCKER_ARGS} --privileged"
+if [ -c /dev/kvm ] || [ "${KVM}" == "1" ]; then
+    DOCKER_ARGS="${DOCKER_ARGS} --device=/dev/kvm:/dev/kvm"
 fi
 
-docker rm -fv ros-build >/dev/null 2>&1 || true
-exec docker run -i -v /var/run/docker.sock:/var/run/docker.sock $DOCKER_ARGS --name=ros-build ros-build "$@"
+NAME=ros-build
+while [ "$#" -gt 0 ]; do
+    case $1 in
+        --name)
+            shift 1
+            NAME="$1"
+            ;;
+        --rm)
+            NAME=$(mktemp ${NAME}-XXXXXX)
+            rm $NAME
+            DOCKER_ARGS="${DOCKER_ARGS} --rm"
+            ;;
+        -t)
+            DOCKER_ARGS="${DOCKER_ARGS} -t"
+            ;;
+        *)
+            break
+            ;;
+    esac
+    shift 1
+done
+
+DOCKER_ARGS="${DOCKER_ARGS} --name=${NAME}"
+docker rm -fv ${NAME} >/dev/null 2>&1 || true
+exec docker run -i -v /var/run/docker.sock:/var/run/docker.sock $DOCKER_ARGS ros-build "$@"
diff --git a/scripts/installer/bootstrap b/scripts/installer/bootstrap
deleted file mode 100755
index 426ed80f..00000000
--- a/scripts/installer/bootstrap
+++ /dev/null
@@ -1,6 +0,0 @@
-#!/bin/bash
-
-export DEBIAN_FRONTEND=noninteractive
-
-apt-get update 
-apt-get install -y grub2 parted
diff --git a/scripts/installer/lay-down-os b/scripts/installer/lay-down-os
index 2213380b..88e6d41c 100755
--- a/scripts/installer/lay-down-os
+++ b/scripts/installer/lay-down-os
@@ -1,7 +1,7 @@
 #!/bin/bash
 set -e -x
 
-. $(dirname $0)/version
+. $(dirname $0)/build.conf
 VERSION=${VERSION:?"VERSION not set"}
 
 while getopts "i:f:c:d:t:r:o:p:" OPTION
diff --git a/scripts/version b/scripts/version
deleted file mode 100644
index d502fae2..00000000
--- a/scripts/version
+++ /dev/null
@@ -1 +0,0 @@
-VERSION=v0.4.0-dev
diff --git a/tests/integration/assets/test_02/build.conf b/tests/integration/assets/test_02/build.conf
new file mode 100644
index 00000000..6b559412
--- /dev/null
+++ b/tests/integration/assets/test_02/build.conf
@@ -0,0 +1,6 @@
+IMAGE_NAME=rancher/os
+VERSION=v0.4.0-test
+
+DOCKER_BINARY_URL=https://github.com/rancher/docker/releases/download/v1.8.2-rc1-ros/docker-1.8.2-rc1
+COMPILED_KERNEL_URL=https://github.com/imikushin/os-kernel/releases/download/4.2/linux-4.2.0-rancher-x86.tar.gz
+DFS_IMAGE=rancher/docker:1.8.1
diff --git a/tests/integration/assets/test_02/test-custom-kernel.sh b/tests/integration/assets/test_02/test-custom-kernel.sh
new file mode 100755
index 00000000..857ad992
--- /dev/null
+++ b/tests/integration/assets/test_02/test-custom-kernel.sh
@@ -0,0 +1,10 @@
+#!/bin/bash
+set -ex
+
+cd $(dirname $0)/../../../..
+
+cp ./tests/integration/assets/test_02/build.conf ./
+
+make -f Makefile.docker minimal
+
+exec ./scripts/run
diff --git a/tests/integration/rancherostest/test_00_system.py b/tests/integration/rancherostest/test_00_system.py
index 32ab6dea..c4f0c5ff 100644
--- a/tests/integration/rancherostest/test_00_system.py
+++ b/tests/integration/rancherostest/test_00_system.py
@@ -1,3 +1,5 @@
+from __future__ import print_function
+import itertools as it
 import pytest
 import subprocess
 import rancherostest.util as u
@@ -8,25 +10,18 @@ def qemu(request):
     return u.run_qemu(request)
 
 
-def rancheros_version():
-    with open('./scripts/version') as f:
-        for ln in f:
-            (k, _, v) = ln.partition('=')
-            if k == 'VERSION' and v.strip() != '':
-                return v.strip()
-    raise RuntimeError("Could not parse RancherOS version")
-
-
 @pytest.mark.timeout(30)
 def test_system_boot(qemu):
-    version = rancheros_version()
+    version = u.rancheros_version('./build.conf')
     print('parsed version: ' + version)
-    for ln in u.iter_lines(qemu.stdout):
-        ros_booted_substr = str.find(ln, 'RancherOS {v} started'.format(v=version))
-        print(str.strip(ln))
-        if ros_booted_substr > -1:
-            assert True
-            return
+
+    def has_ros_started_substr(s):
+        return str.find(s, 'RancherOS {v} started'.format(v=version)) > -1
+
+    for _ in it.ifilter(has_ros_started_substr,
+                        it.imap(u.with_effect(print), u.iter_lines(qemu.stdout))):
+        assert True
+        return
     assert False
 
 
@@ -40,7 +35,7 @@ def test_run_system_container(qemu):
         stdout=subprocess.PIPE, stderr=subprocess.STDOUT, universal_newlines=True)
 
     for ln in u.iter_lines(ssh.stdout):
-        print(str.strip(ln))
+        print(ln)
     ssh.wait()
 
     assert ssh.returncode == 0
diff --git a/tests/integration/rancherostest/test_02_custom_kernel.py b/tests/integration/rancherostest/test_02_custom_kernel.py
new file mode 100644
index 00000000..817064f0
--- /dev/null
+++ b/tests/integration/rancherostest/test_02_custom_kernel.py
@@ -0,0 +1,35 @@
+from __future__ import print_function
+import itertools as it
+import pytest
+import subprocess
+import rancherostest.util as u
+
+
+@pytest.fixture(scope="module")
+def build_and_run(request):
+    print('\nBuilding and running RancherOS with custom kernel')
+    p = subprocess.Popen(['./scripts/docker-run.sh', '--rm',
+                          './tests/integration/assets/test_02/test-custom-kernel.sh'],
+                         stdout=subprocess.PIPE, stderr=subprocess.STDOUT, universal_newlines=True)
+
+    def fin():
+        print('\nTerminating docker-run test-custom-kernel')
+        p.terminate()
+
+    request.addfinalizer(fin)
+    return p
+
+
+@pytest.mark.timeout(30)
+def test_system_boot(build_and_run):
+    version = u.rancheros_version('./tests/integration/assets/test_02/build.conf')
+    print('parsed version: ' + version)
+
+    def has_ros_started_substr(s):
+        return str.find(s, 'RancherOS {v} started'.format(v=version)) > -1
+
+    for _ in it.ifilter(has_ros_started_substr,
+                        it.imap(u.with_effect(print), u.iter_lines(build_and_run.stdout))):
+        assert True
+        return
+    assert False
diff --git a/tests/integration/rancherostest/util.py b/tests/integration/rancherostest/util.py
index f17f85ee..394bb359 100644
--- a/tests/integration/rancherostest/util.py
+++ b/tests/integration/rancherostest/util.py
@@ -1,10 +1,46 @@
+import itertools as it
 import pytest
 import subprocess
 import time
 
 
 def iter_lines(s):
-    return iter(s.readline, '')
+    return it.imap(str.rstrip, iter(s.readline, ''))
+
+
+def strip_comment(prefix):
+    return lambda s: s.partition(prefix)[0].strip()
+
+
+def non_empty(s):
+    return s != ''
+
+
+def parse_value(var):
+    def get_value(s):
+        (k, _, v) = s.partition('=')
+        (k, v) = (k.strip(), v.strip())
+        if k == var:
+            return v
+        return ''
+    return get_value
+
+
+def with_effect(p):
+    def effect(s):
+        p(s)
+        return s
+    return effect
+
+
+def rancheros_version(build_conf):
+    with open(build_conf) as f:
+        for v in it.ifilter(non_empty,
+                            it.imap(parse_value('VERSION'),
+                                    it.ifilter(non_empty,
+                                               it.imap(strip_comment('#'), iter_lines(f))))):
+            return v
+    raise RuntimeError("Could not parse RancherOS version")
 
 
 def run_qemu(request, run_args=[]):