diff --git a/build_image.sh b/build_image.sh
index 251a159240..06005372db 100755
--- a/build_image.sh
+++ b/build_image.sh
@@ -148,7 +148,7 @@ if [ ! -e /etc/mtab ]; then
   sudo touch /etc/mtab
 fi
 UUID=`uuidgen`
-DISK_LABEL=C-$CHROMEOS_VERSION_STRING
+DISK_LABEL=C-ROOT
 LOOP_DEV=`sudo losetup -f`
 sudo losetup "$LOOP_DEV" "$ROOT_FS_IMG"
 sudo mkfs.ext3 "$LOOP_DEV"
diff --git a/file_copy.py b/file_copy.py
new file mode 100755
index 0000000000..33a693b2f9
--- /dev/null
+++ b/file_copy.py
@@ -0,0 +1,100 @@
+#!/usr/bin/env python
+
+# This program operates much like dd, but with two important differences:
+# 1. Many features lacking
+# 2. seek_bytes= param can specify seek offset in bytes, not block size
+
+import os
+import sys
+import time
+
+def parseNumber(numstr):
+  if numstr.endswith("GB"):
+    return int(numstr[:-2]) * 1000 * 1000 * 1000
+  if numstr.endswith("MB"):
+    return int(numstr[:-2]) * 1000 * 1000
+  if numstr.endswith("kB"):
+    return int(numstr[:-2]) * 1000
+  if numstr.endswith("G"):
+    return int(numstr[:-1]) * 1024 * 1024 * 1024
+  if numstr.endswith("M"):
+    return int(numstr[:-1]) * 1024 * 1024
+  if numstr.endswith("K"):
+    return int(numstr[:-1]) * 1024
+  if numstr.endswith("b"):
+    return int(numstr[:-1]) * 512
+  if numstr.endswith("w"):
+    return int(numstr[:-1]) * 2
+  if numstr.endswith("c"):
+    return int(numstr[:-1])
+  if not numstr.isdigit():
+    print >> sys.stderr, "Don't know how to parse number", numstr
+    sys.exit(1)
+  return int(numstr)
+
+def main(argv):
+  arg_if = ""
+  arg_of = ""
+  arg_bs = 512
+  arg_seek = -1
+  arg_seek_bytes = -1
+  
+  for i in argv:
+    if i.startswith("if="):
+      arg_if=i[3:]
+    elif i.startswith("of="):
+      arg_of=i[3:]
+    elif i.startswith("bs="):
+      arg_bs=parseNumber(i[3:])
+    elif i.startswith("seek="):
+      arg_seek=int(i[5:])
+    elif i.startswith("seek_bytes="):
+      arg_seek_bytes=parseNumber(i[11:])
+
+  if arg_seek >= 0 and arg_seek_bytes >= 0:
+    print >> sys.stderr, "you can't specify seek= and seek_bytes="
+    sys.exit(1)
+  
+  seek_bytes = 0
+  if arg_seek >= 0:
+    seek_bytes = arg_seek * arg_bs
+  elif arg_seek_bytes >= 0:
+    seek_bytes = arg_seek_bytes
+
+  if_fd = 0
+  of_fd = 1
+  if len(arg_if) != 0:
+    print >> sys.stderr, "opening for read", arg_if
+    if_fd = os.open(arg_if, os.O_RDONLY)
+  if len(arg_of) != 0:
+    print >> sys.stderr, "opening for write", arg_of
+    of_fd = os.open(arg_of, os.O_WRONLY | os.O_TRUNC | os.O_CREAT)
+  
+  if arg_seek_bytes > 0:
+    print >> sys.stderr, "seeking to", seek_bytes, "bytes in output file"
+    os.lseek(of_fd, seek_bytes, os.SEEK_SET)
+  
+  bytes_copied = 0
+  
+  t1 = time.time()
+
+  buf = os.read(if_fd, arg_bs)
+  while len(buf) > 0:
+    bytes_written = 0
+    while bytes_written < len(buf):
+      bytes_written += os.write(of_fd, buf[bytes_written:])
+      bytes_copied += bytes_written
+    buf = os.read(if_fd, arg_bs)
+  
+  t2 = time.time()
+
+  os.close(if_fd)
+  os.close(of_fd)
+  
+  # print timing info
+  print >> sys.stderr, 'copy %d bytes took %0.3f s' % (bytes_copied, t2 - t1)
+  print >> sys.stderr, 'speed: %0.1f MB/s' % \
+      ((bytes_copied / 1000000) / (t2 - t1))
+
+if __name__ == '__main__':
+  main(sys.argv)
diff --git a/image_to_usb.sh b/image_to_usb.sh
index 83b31e9ad6..660575369c 100755
--- a/image_to_usb.sh
+++ b/image_to_usb.sh
@@ -45,6 +45,10 @@ set -e
 FLAGS_from=`eval readlink -f $FLAGS_from`
 FLAGS_to=`eval readlink -f $FLAGS_to`
 
+function do_cleanup {
+  sudo losetup -d "$LOOP_DEV"
+}
+
 # Copy MBR and rootfs to output image
 if [ -b "$FLAGS_to" ]
 then
@@ -65,15 +69,40 @@ then
     fi
   fi
   
-  STATE_PART="$FLAGS_to"1
-  ROOT_PART="$FLAGS_to"3
+  echo "attempting to unmount any mounts on the USB device"
+  for i in "$FLAGS_to"*
+  do
+    ! sudo umount "$i"
+  done
+  sleep 3
+  
+  PART_SIZE=$(stat -c%s "${FLAGS_from}/rootfs.image")  # Bytes
 
-  sudo dd if="${FLAGS_from}/mbr.image" of="$FLAGS_to"
+  echo "Copying root fs..."
+  sudo ./file_copy.py if="${FLAGS_from}/rootfs.image" of="$FLAGS_to" bs=4M \
+      seek_bytes=$(( ($PART_SIZE * 2) + 512 ))
+
+  # Set up loop device
+  LOOP_DEV=$(sudo losetup -f)
+  if [ -z "$LOOP_DEV" ]
+  then
+    echo "No free loop device. Free up a loop device or reboot. exiting."
+    exit 1
+  fi
+  
+  trap do_cleanup EXIT
+
+  echo "Creating stateful partition..."
+  sudo losetup -o 512 "$LOOP_DEV" "$FLAGS_to"
+  sudo mkfs.ext3 -F -b 4096 -L C-STATE "$LOOP_DEV" $(( $PART_SIZE / 4096 ))
   sync
-  sudo partprobe "$FLAGS_to"
+  sudo losetup -d "$LOOP_DEV"
   sync
-  sudo dd if="${FLAGS_from}/rootfs.image" of="$ROOT_PART" bs=4M
-  sudo mkfs.ext3 -F -L C-STATE "$STATE_PART"
+  
+  trap - EXIT
+
+  echo "Copying MBR..."
+  sudo ./file_copy.py if="${FLAGS_from}/mbr.image" of="$FLAGS_to"
   sync
   echo "Done."
 else