diff --git a/image_to_usb.sh b/image_to_usb.sh
index 69d7ba465d..e22e2bf62d 100755
--- a/image_to_usb.sh
+++ b/image_to_usb.sh
@@ -90,33 +90,6 @@ FLAGS_to=`eval readlink -f ${FLAGS_to}`
 # Use this image as the source image to copy
 SRC_IMAGE="${FLAGS_from}/chromiumos_image.bin"
 
-# If we're asked to modify the image for test, then let's make a copy and
-# modify that instead.
-if [ ${FLAGS_test_image} -eq ${FLAGS_TRUE} ] ; then
-  if [ ! -f "${FLAGS_from}/chromiumos_test_image.bin" ] || \
-     [ ${FLAGS_force_copy} -eq ${FLAGS_TRUE} ] ; then
-    # Copy it.
-    echo "Creating test image from original..."
-    cp -f "${SRC_IMAGE}" "${FLAGS_from}/chromiumos_test_image.bin"
-
-    # Check for manufacturing image.
-    if [ ${FLAGS_factory} -eq ${FLAGS_TRUE} ] ; then
-      FACTORY_ARGS="--factory"
-    fi
-
-    # Modify it.  Pass --yes so that mod_image_for_test.sh won't ask us if we
-    # really want to modify the image; the user gave their assent already with
-    # --test-image and the original image is going to be preserved.
-    "${SCRIPTS_DIR}/mod_image_for_test.sh" --image \
-      "${FLAGS_from}/chromiumos_test_image.bin" ${FACTORY_ARGS} --yes
-    echo "Done with mod_image_for_test."
-  else
-    echo "Using cached test image."
-  fi
-  SRC_IMAGE="${FLAGS_from}/chromiumos_test_image.bin"
-  echo "Source test image is: ${SRC_IMAGE}"
-fi
-
 STATEFUL_DIR="${FLAGS_from}/stateful_partition"
 mkdir -p "${STATEFUL_DIR}"
 
@@ -175,6 +148,34 @@ if [ ${FLAGS_install_autotest} -eq ${FLAGS_TRUE} ] ; then
 fi
 
 
+# If we're asked to modify the image for test, then let's make a copy and
+# modify that instead.
+if [ ${FLAGS_test_image} -eq ${FLAGS_TRUE} ] ; then
+  if [ ! -f "${FLAGS_from}/chromiumos_test_image.bin" ] || \
+     [ ${FLAGS_force_copy} -eq ${FLAGS_TRUE} ] ; then
+    # Copy it.
+    echo "Creating test image from original..."
+    cp -f "${SRC_IMAGE}" "${FLAGS_from}/chromiumos_test_image.bin"
+
+    # Check for manufacturing image.
+    if [ ${FLAGS_factory} -eq ${FLAGS_TRUE} ] ; then
+      FACTORY_ARGS="--factory"
+    fi
+
+    # Modify it.  Pass --yes so that mod_image_for_test.sh won't ask us if we
+    # really want to modify the image; the user gave their assent already with
+    # --test-image and the original image is going to be preserved.
+    "${SCRIPTS_DIR}/mod_image_for_test.sh" --image \
+      "${FLAGS_from}/chromiumos_test_image.bin" ${FACTORY_ARGS} --yes
+    echo "Done with mod_image_for_test."
+  else
+    echo "Using cached test image."
+  fi
+  SRC_IMAGE="${FLAGS_from}/chromiumos_test_image.bin"
+  echo "Source test image is: ${SRC_IMAGE}"
+fi
+
+
 # Let's do it.
 if [ -b "${FLAGS_to}" ]
 then
diff --git a/mod_for_factory_scripts/400configAutotest b/mod_for_factory_scripts/400configAutotest
new file mode 100755
index 0000000000..360a7e0cd7
--- /dev/null
+++ b/mod_for_factory_scripts/400configAutotest
@@ -0,0 +1,17 @@
+#!/bin/bash
+
+# Copyright (c) 2010 The Chromium OS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+
+echo "Create global_config.ini in autotest directory."
+
+pushd ${STATEFUL_DIR}
+
+cat > ${STATEFUL_DIR}/home/autotest-client/global_config.ini <<EOF
+[CLIENT]
+drop_caches: False
+drop_caches_between_iterations: False
+EOF
+
+popd
diff --git a/mod_image_for_test.sh b/mod_image_for_test.sh
index 0707d206af..5bc1b2fbb0 100755
--- a/mod_image_for_test.sh
+++ b/mod_image_for_test.sh
@@ -46,37 +46,44 @@ if [ ! -f $FLAGS_image ] ; then
   exit 1
 fi
 
-# Make sure anything mounted in the rootfs is cleaned up ok on exit.
-cleanup_rootfs_mounts() {
+# Make sure anything mounted in the rootfs/stateful is cleaned up ok on exit.
+cleanup_mounts() {
   # Occasionally there are some daemons left hanging around that have our
-  # root image file system open. We do a best effort attempt to kill them.
-  PIDS=`sudo lsof -t "${ROOT_FS_DIR}" | sort | uniq`
+  # root/stateful image file system open. We do a best effort attempt to kill
+  # them.
+  PIDS=`sudo lsof -t "$1" | sort | uniq`
   for pid in ${PIDS}
   do
     local cmdline=`cat /proc/$pid/cmdline`
-    echo "Killing process that has open file on our rootfs: $cmdline"
+    echo "Killing process that has open file on the mounted directory: $cmdline"
     sudo kill $pid || /bin/true
   done
 }
 
-cleanup_rootfs_loop() {
-  sudo umount "${LOOP_DEV}"
-  sleep 1  # in case $LOOP_DEV is in use
-  sudo losetup -d "${LOOP_DEV}"
+cleanup_loop() {
+  sudo umount "$1"
+  sleep 1  # in case the loop device is in use
+  sudo losetup -d "$1"
 }
 
 cleanup() {
   # Disable die on error.
   set +e
 
-  cleanup_rootfs_mounts
-  if [ -n "${LOOP_DEV}" ]
+  cleanup_mounts "${ROOT_FS_DIR}"
+  if [ -n "${ROOT_LOOP_DEV}" ]
   then
-    cleanup_rootfs_loop
+    cleanup_loop "${ROOT_LOOP_DEV}"
   fi
-
   rmdir "${ROOT_FS_DIR}"
 
+  cleanup_mounts "${STATEFUL_DIR}"
+  if [ -n "${STATEFUL_LOOP_DEV}" ]
+  then
+    cleanup_loop "${STATEFUL_LOOP_DEV}"
+  fi
+  rmdir "${STATEFUL_DIR}"
+
   # Turn die on error back on.
   set -e
 }
@@ -100,19 +107,34 @@ set -e
 ROOT_FS_DIR=$(dirname "${FLAGS_image}")/rootfs
 mkdir -p "${ROOT_FS_DIR}"
 
+STATEFUL_DIR=$(dirname "${FLAGS_image}")/stateful_partition
+mkdir -p "${STATEFUL_DIR}"
+
 trap cleanup EXIT
 
 # Figure out how to loop mount the rootfs partition. It should be partition 3
 # on the disk image.
 offset=$(partoffset "${FLAGS_image}" 3)
 
-LOOP_DEV=$(sudo losetup -f)
-if [ -z "$LOOP_DEV" ]; then
+ROOT_LOOP_DEV=$(sudo losetup -f)
+if [ -z "$ROOT_LOOP_DEV" ]; then
   echo "No free loop device"
   exit 1
 fi
-sudo losetup -o $(( $offset * 512 )) "${LOOP_DEV}" "${FLAGS_image}"
-sudo mount "${LOOP_DEV}" "${ROOT_FS_DIR}"
+sudo losetup -o $(( $offset * 512 )) "${ROOT_LOOP_DEV}" "${FLAGS_image}"
+sudo mount "${ROOT_LOOP_DEV}" "${ROOT_FS_DIR}"
+
+# The stateful partition should be partition 1 on the disk image.
+offset=$(partoffset "${FLAGS_image}" 1)
+
+STATEFUL_LOOP_DEV=$(sudo losetup -f)
+if [ -z "$STATEFUL_LOOP_DEV" ]; then
+  echo "No free loop device"
+  exit 1
+fi
+sudo losetup -o $(( $offset * 512 )) "${STATEFUL_LOOP_DEV}" "${FLAGS_image}"
+sudo mount "${STATEFUL_LOOP_DEV}" "${STATEFUL_DIR}"
+STATEFUL_DIR="${STATEFUL_DIR}"
 
 MOD_TEST_ROOT="${GCLIENT_ROOT}/src/scripts/mod_for_test_scripts"
 # Run test setup script to modify the image
@@ -123,7 +145,8 @@ if [ ${FLAGS_factory} -eq ${FLAGS_TRUE} ]; then
   MOD_FACTORY_ROOT="${GCLIENT_ROOT}/src/scripts/mod_for_factory_scripts"
   # Run factory setup script to modify the image
   sudo GCLIENT_ROOT="${GCLIENT_ROOT}" ROOT_FS_DIR="${ROOT_FS_DIR}" \
-      QUALDB="${FLAGS_qualdb}" "${MOD_FACTORY_ROOT}/factory_setup.sh"
+      STATEFUL_DIR="${STATEFUL_DIR}/dev_image" QUALDB="${FLAGS_qualdb}" \
+      "${MOD_FACTORY_ROOT}/factory_setup.sh"
 fi
 
 cleanup