diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/binhost/host/sdk_version.conf b/sdk_container/src/third_party/coreos-overlay/coreos/binhost/host/sdk_version.conf
index 78fecc3128..3b6720c7ec 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/binhost/host/sdk_version.conf
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/binhost/host/sdk_version.conf
@@ -1,3 +1,3 @@
-SDK_LATEST_VERSION="20130621235834"
-BOOTSTRAP_LATEST_VERSION="20130621235834"
+SDK_LATEST_VERSION="0001.1.0"
+BOOTSTRAP_LATEST_VERSION="0001.1.0"
 TC_PATH="2013/03/%(target)s-2013.03.07.000000.tar.xz"
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-host b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-host
index d50bd1f5fa..6aa2f081a0 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-host
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-host
@@ -1,9 +1,9 @@
 # See "man make.conf" for the available options.
 
-ACCEPT_KEYWORDS="amd64"
-CHOST="x86_64-pc-linux-gnu"
-CFLAGS="-O2 -pipe"
-LDFLAGS="-Wl,-O2 -Wl,--as-needed"
+# Get the current SDK version, useful for fetching the latest packages
+source "/mnt/host/source/.repo/manifests/version.txt"
+COREOS_VERSION_STRING="${COREOS_BUILD}.${COREOS_BRANCH}.${COREOS_PATCH}"
+
 FEATURES="allow-missing-manifests buildpkg clean-logs -collision-protect
           -ebuild-locks parallel-install sandbox -strict userfetch userpriv
           usersandbox -unknown-features-warn"
@@ -11,10 +11,6 @@ FEATURES="allow-missing-manifests buildpkg clean-logs -collision-protect
 # Since our portage comes from version control, we redirect distfiles
 DISTDIR="/var/lib/portage/distfiles"
 
-# Don't fool around with python3, might get bit
-USE_PYTHON="2.6"
-
-
 PORTDIR="/usr/local/portage/stable"
 
 # We initialize PORTDIR_OVERLAY here to clobber any redefinitions elsewhere.
@@ -44,7 +40,7 @@ PORT_LOGDIR="/var/log/portage"
 # rebuilt it yet. 20130621235834 contains everything built by bootstrap_sdk
 PORTAGE_BINHOST="
     http://storage.core-os.net/coreos/sdk/experimental/legacy/pkgs/
-    http://storage.core-os.net/coreos/sdk/experimental/20130621235834/pkgs/
+    http://storage.core-os.net/coreos/sdk/${ARCH}/${COREOS_VERSION_STRING}/pkgs/
 "
 
 GENTOO_MIRRORS="
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-target b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-target
index d68b4655b7..f82d08993e 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-target
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.amd64-target
@@ -5,8 +5,6 @@
 # Pull in definition of at least { ROOT, CHOST, [BOARD_OVERLAY] }
 source make.conf.board_setup
 
-ACCEPT_KEYWORDS="amd64"
-
 # Common settings across all board targets.
 source make.conf.common
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
index a30d9ef399..cf2d98f027 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/make.conf.common-target
@@ -10,10 +10,6 @@
 CBUILD=x86_64-pc-linux-gnu
 HOSTCC=x86_64-pc-linux-gnu-gcc
 
-LDFLAGS="-Wl,-O2 -Wl,--as-needed"
-
-ACCEPT_KEYWORDS="${ARCH}"
-
 # Be sure we don't overwrite pkgs from another sysroot.
 PKGDIR=${ROOT}packages/
 PORTAGE_TMPDIR=${ROOT}tmp/
@@ -27,7 +23,6 @@ FEATURES="allow-missing-manifests buildpkg clean-logs -collision-protect
 
 PORTAGE_WORKDIR_MODE="0755"
 PKG_CONFIG_PATH="${ROOT}usr/lib/pkgconfig/:${ROOT}usr/share/pkgconfig/"
-ELIBC="glibc"
 
 PORTDIR="/usr/local/portage/stable"
 
diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/base/make.defaults b/sdk_container/src/third_party/coreos-overlay/profiles/base/make.defaults
index ae189e38fe..af9832a410 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/base/make.defaults
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/base/make.defaults
@@ -127,6 +127,8 @@ BOOTSTRAP_USE="cxx unicode threads curl"
 # Default target(s) for python-r1.eclass
 PYTHON_TARGETS="python2_6"
 PYTHON_SINGLE_TARGET="python2_6"
+# TODO(marineam): remove USE_PYTHON during the 2.7 upgrade
+USE_PYTHON="2.6"
 
 # ChromeOS-specific: BOARD_USE for accessing board value in cros-board.eclass
 #                    CROS_WORKON_TREE for cros-workon
diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/default/linux/make.defaults b/sdk_container/src/third_party/coreos-overlay/profiles/default/linux/make.defaults
index 51527afa55..7b40b63b3f 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/default/linux/make.defaults
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/default/linux/make.defaults
@@ -42,7 +42,7 @@ VIDEO_CARDS="dummy fbdev v4l"
 # after discussion on the gentoo-dev ML. As we bang out a clear
 # direction with how LDFLAGS will be set by default, this entry
 # may move.
-LDFLAGS="-Wl,-O1"
+LDFLAGS="-Wl,-O1 -Wl,--as-needed"
 
 # 2009/09/21 Robin H. Johnson <robbat2@gentoo.org>
 # http://archives.gentoo.org/gentoo-dev/msg_dc705dc2c1a45e18a85aa62e8fb17009.xml