diff --git a/cmd/control/bootstrap.go b/cmd/control/bootstrap.go
index 7d322567..35f0405f 100644
--- a/cmd/control/bootstrap.go
+++ b/cmd/control/bootstrap.go
@@ -15,12 +15,15 @@ import (
 )
 
 func bootstrapAction(c *cli.Context) error {
+	log.Debugf("bootstrapAction")
 	if err := UdevSettle(); err != nil {
 		log.Errorf("Failed to run udev settle: %v", err)
 	}
 
+	log.Debugf("bootstrapAction: loadingConfig")
 	cfg := config.LoadConfig()
 
+	log.Debugf("bootstrapAction: MdadmScan(%v)", cfg.Rancher.State.MdadmScan)
 	if cfg.Rancher.State.MdadmScan {
 		if err := mdadmScan(); err != nil {
 			log.Errorf("Failed to run mdadm scan: %v", err)
@@ -28,12 +31,14 @@ func bootstrapAction(c *cli.Context) error {
 	}
 
 	stateScript := cfg.Rancher.State.Script
+	log.Debugf("bootstrapAction: stateScript(%v)", stateScript)
 	if stateScript != "" {
 		if err := runStateScript(stateScript); err != nil {
 			log.Errorf("Failed to run state script: %v", err)
 		}
 	}
 
+	log.Debugf("bootstrapAction: RunCommandSequence(%v)", cfg.Bootcmd)
 	util.RunCommandSequence(cfg.Bootcmd)
 
 	if cfg.Rancher.State.Dev != "" && cfg.Rancher.State.Wait {
@@ -41,12 +46,14 @@ func bootstrapAction(c *cli.Context) error {
 	}
 
 	autoformatDevices := cfg.Rancher.State.Autoformat
+	log.Debugf("bootstrapAction: Autoformat(%v)", cfg.Rancher.State.Autoformat)
 	if len(autoformatDevices) > 0 {
 		if err := autoformat(autoformatDevices); err != nil {
 			log.Errorf("Failed to run autoformat: %v", err)
 		}
 	}
 
+	log.Debugf("bootstrapAction: udev settle2")
 	if err := UdevSettle(); err != nil {
 		log.Errorf("Failed to run udev settle: %v", err)
 	}
diff --git a/config/disk.go b/config/disk.go
index c5a9ebf2..a1de8b36 100644
--- a/config/disk.go
+++ b/config/disk.go
@@ -4,6 +4,7 @@ import (
 	"io/ioutil"
 	"os"
 	"path"
+	"path/filepath"
 	"sort"
 	"strings"
 
@@ -171,7 +172,7 @@ func readCmdline() map[interface{}]interface{} {
 		return nil
 	}
 
-	log.Debugf("Config cmdline %s", cmdLine)
+	//log.Debugf("Config cmdline %s", cmdLine)
 
 	cmdLineObj := parseCmdline(strings.TrimSpace(util.UnescapeKernelParams(string(cmdLine))))
 
@@ -219,6 +220,10 @@ func WriteToFile(data interface{}, filename string) error {
 		return err
 	}
 
+	if err := os.MkdirAll(filepath.Dir(filename), os.ModeDir|0755); err != nil {
+		return err
+	}
+
 	return util.WriteFileAtomic(filename, content, 400)
 }
 
diff --git a/init/bootstrap.go b/init/bootstrap.go
index 1c5a0e4a..a171cc0b 100644
--- a/init/bootstrap.go
+++ b/init/bootstrap.go
@@ -12,6 +12,8 @@ import (
 
 func bootstrapServices(cfg *config.CloudConfig) (*config.CloudConfig, error) {
 	if util.ResolveDevice(cfg.Rancher.State.Dev) != "" && len(cfg.Bootcmd) == 0 {
+		log.Info("NOT Running Bootstrap")
+
 		return cfg, nil
 	}
 	log.Info("Running Bootstrap")
@@ -56,6 +58,8 @@ func stopDocker(c chan interface{}) error {
 
 func bootstrap(cfg *config.CloudConfig) error {
 	log.Info("Launching Bootstrap Docker")
+	log.Infof("bootstrap container: Autoformat(%v)", cfg.Rancher.State.Autoformat)
+
 	c, err := startDocker(cfg)
 	if err != nil {
 		return err
diff --git a/init/init.go b/init/init.go
index 4888713e..23bd27b4 100644
--- a/init/init.go
+++ b/init/init.go
@@ -267,7 +267,17 @@ func RunInit() error {
 				}
 			}
 
-			return cfg, nil
+			// save here so the bootstrap service can see it (when booting from iso, its very early)
+			if boot2DockerEnvironment {
+				if err := config.Set("rancher.state.dev", cfg.Rancher.State.Dev); err != nil {
+					log.Errorf("Failed to update rancher.state.dev: %v", err)
+				}
+				if err := config.Set("rancher.state.autoformat", cfg.Rancher.State.Autoformat); err != nil {
+					log.Errorf("Failed to update rancher.state.autoformat: %v", err)
+				}
+			}
+
+			return config.LoadConfig(), nil
 		},
 		func(cfg *config.CloudConfig) (*config.CloudConfig, error) {
 			var err error
@@ -278,9 +288,6 @@ func RunInit() error {
 			return cfg, nil
 		},
 		func(cfg *config.CloudConfig) (*config.CloudConfig, error) {
-			if err := os.MkdirAll(config.CloudConfigDir, os.ModeDir|0755); err != nil {
-				log.Error(err)
-			}
 
 			cfg.Rancher.CloudInit.Datasources = config.LoadConfigWithPrefix(state).Rancher.CloudInit.Datasources
 			if err := config.Set("rancher.cloud_init.datasources", cfg.Rancher.CloudInit.Datasources); err != nil {
diff --git a/os-config.tpl.yml b/os-config.tpl.yml
index 16229f20..e0f4fc7f 100644
--- a/os-config.tpl.yml
+++ b/os-config.tpl.yml
@@ -32,6 +32,7 @@ rancher:
       - /lib/firmware:/lib/firmware
       - /usr/bin/ros:/usr/bin/ros:ro
       - /usr/share/ros:/usr/share/ros:ro
+      - /var/lib/rancher:/var/lib/rancher:ro
   cloud_init_services:
     cloud-init:
       image: {{.OS_REPO}}/os-base:{{.VERSION}}{{.SUFFIX}}
diff --git a/tests/boot2docker_autoformat_test.go b/tests/boot2docker_autoformat_test.go
index 9fc35cb7..8cb904e9 100755
--- a/tests/boot2docker_autoformat_test.go
+++ b/tests/boot2docker_autoformat_test.go
@@ -2,6 +2,8 @@ package integration
 
 import . "gopkg.in/check.v1"
 
+// NOTE: the boot2docker magic string/tar file is also used by Docker-machine
+
 func (s *QemuSuite) TestBoot2DockerState(c *C) {
 	s.RunQemu(c, "--fresh", "--b2d")
 	s.CheckCall(c, "blkid | grep B2D_STATE")
@@ -12,6 +14,8 @@ func (s *QemuSuite) TestBoot2DockerState(c *C) {
 func (s *QemuSuite) TestIsoBoot2DockerState(c *C) {
 	s.RunQemu(c, "--fresh", "--b2d", "--iso")
 	s.CheckCall(c, "blkid | grep B2D_STATE")
+	s.CheckCall(c, "sudo ros config get rancher.state.dev | grep LABEL=B2D_STATE")
+	s.CheckCall(c, "sudo ros config get rancher.state.autoformat | grep vda")
 	// And once I make run create a tar file, check that its untarred in the docker user's home dir
 	// And confirm if it should add to the dir, or replace, i can't remember
 }