diff --git a/boot/boot-stage-1-init.sh b/boot/boot-stage-1-init.sh
index f992637184c..a3f8f8ef7e3 100644
--- a/boot/boot-stage-1-init.sh
+++ b/boot/boot-stage-1-init.sh
@@ -8,6 +8,16 @@ fail() {
 }
 
 
+# Poor man's `basename'.
+basename() {
+    local s="$1"
+    set -- $(IFS=/; echo $s)
+    local res
+    while test $# != 0; do res=$1; shift; done
+    echo $res
+}
+
+
 # Print a greeting.
 echo
 echo "<<< NixOS Stage 1 >>>"
@@ -34,7 +44,7 @@ mount -t sysfs none /sys
 
 
 # Process the kernel command line.
-stage2Init=
+stage2Init=/init
 for o in $(cat /proc/cmdline); do
     case $o in
         init=*)
@@ -59,10 +69,9 @@ done
 
 
 # Load some kernel modules.
-export MODULE_DIR=@modulesDir@/lib/modules/
-for i in @modules@; do
-    echo "trying to load $i..."
-    modprobe $i
+for i in $(cat @modulesClosure@/insmod-list); do
+    echo "loading module $(basename $i)..."
+    insmod $i
 done
 
 
@@ -84,8 +93,8 @@ echo shutdown > /sys/power/disk
 
 # Create device nodes in /dev.
 export UDEV_CONFIG_FILE=/udev.conf
-echo 'udev_rules="/no-rules"' > $UDEV_CONFIG_FILE
-echo -n > /no-rules
+echo 'udev_rules="/rules"' > $UDEV_CONFIG_FILE
+mkdir /rules
 udevd --daemon
 udevadm trigger
 udevadm settle
diff --git a/boot/boot-stage-1.nix b/boot/boot-stage-1.nix
index d5ab319894a..edb8dab10da 100644
--- a/boot/boot-stage-1.nix
+++ b/boot/boot-stage-1.nix
@@ -5,7 +5,7 @@
 # is supposed to be put into an initial RAM disk (initrd).
 
 { substituteAll, staticShell, klibcShrunk
-, module_init_tools, extraUtils, modules, modulesDir
+, extraUtils, modulesClosure
 
 , # Whether to find root device automatically using its label.
   autoDetectRootDevice
@@ -48,7 +48,7 @@ substituteAll {
   
   isExecutable = true;
   
-  inherit staticShell modules modulesDir;
+  inherit staticShell modulesClosure;
   
   inherit autoDetectRootDevice isLiveCD mountPoints devices fsTypes optionss resumeDevice;
   
@@ -56,7 +56,6 @@ substituteAll {
   
   path = [
     extraUtils
-    module_init_tools
     klibcShrunk
   ];
 }
diff --git a/configuration/rescue-cd.nix b/configuration/rescue-cd.nix
index 488b2a73c88..ee2c7c2a510 100644
--- a/configuration/rescue-cd.nix
+++ b/configuration/rescue-cd.nix
@@ -300,6 +300,8 @@ rec {
     bootImage = "boot/grub/stage2_eltorito";
 
     inherit compressImage;
+
+    volumeID = "NIXOS_INSTALLATION_CD";
   };
 
 
diff --git a/helpers/make-iso9660-image.nix b/helpers/make-iso9660-image.nix
index fbabb7c0f49..0262bc653bb 100644
--- a/helpers/make-iso9660-image.nix
+++ b/helpers/make-iso9660-image.nix
@@ -1,7 +1,7 @@
 { stdenv, perl, cdrkit, nixpkgsPath
 
-  # The file name of the resulting ISO image.
-, isoName ? "cd.iso"
+, # The file name of the resulting ISO image.
+  isoName ? "cd.iso"
 
 , # The files and directories to be placed in the ISO file system.
   # This is a list of attribute sets {source, target} where `source'
@@ -16,18 +16,20 @@
   # to `source' that will be added to the CD.
   storeContents ? []
 
-, 
-  buildStoreContents ? []
+, buildStoreContents ? []
 
-  # Whether this should be an El-Torito bootable CD.
-, bootable ? false
+, # Whether this should be an El-Torito bootable CD.
+  bootable ? false
 
-  # The path (in the ISO file system) of the boot image.
-, bootImage ? ""
+, # The path (in the ISO file system) of the boot image.
+  bootImage ? ""
 
 , # Whether to compress the resulting ISO image with bzip2.
   compressImage ? false
 
+, # The volume ID.
+  volumeID ? ""
+
 }:
 
 assert bootable -> bootImage != "";
@@ -36,7 +38,8 @@ stdenv.mkDerivation {
   name = "iso9660-image";
   builder = ./make-iso9660-image.sh;
   buildInputs = [perl cdrkit];
-  inherit isoName bootable bootImage compressImage;
+  
+  inherit isoName bootable bootImage compressImage volumeID;
 
   # !!! should use XML.
   sources = map (x: x.source) contents;
diff --git a/helpers/make-iso9660-image.sh b/helpers/make-iso9660-image.sh
index e4997c8112a..03f4208375c 100644
--- a/helpers/make-iso9660-image.sh
+++ b/helpers/make-iso9660-image.sh
@@ -61,13 +61,13 @@ cat pathlist | sed -e 's/=\(.*\)=\(.*\)=/\\=\1=\2\\=/' | tee pathlist.safer
 
 
 ensureDir $out/iso
-genCommand="genisoimage -iso-level 4 -r -J $bootFlags -hide-rr-moved -graft-points -path-list pathlist.safer"
+genCommand="genisoimage -iso-level 4 -r -J $bootFlags -hide-rr-moved -graft-points -path-list pathlist.safer ${volumeID:+-V $volumeID}"
 if test -z "$compressImage"; then
     $genCommand -o $out/iso/$isoName
 else
     $genCommand | bzip2 > $out/iso/$isoName.bz2
 fi
-    
+
 
 ensureDir $out/nix-support
 echo $system > $out/nix-support/system
diff --git a/system/system.nix b/system/system.nix
index 654a6b3181d..b4c7078b4cd 100644
--- a/system/system.nix
+++ b/system/system.nix
@@ -107,8 +107,7 @@ rec {
   # mounting the root FS).
   bootStage1 = import ../boot/boot-stage-1.nix {
     inherit (pkgs) substituteAll;
-    inherit (pkgsDiet) module_init_tools;
-    inherit extraUtils;
+    inherit extraUtils modulesClosure;
     inherit (kernelPackages) klibcShrunk;
     inherit (config.boot) autoDetectRootDevice isLiveCD;
     fileSystems =
@@ -116,8 +115,6 @@ rec {
         (fs: fs.mountPoint == "/" || (fs ? neededForBoot && fs.neededForBoot))
         config.fileSystems;
     rootLabel = config.boot.rootLabel;
-    modulesDir = modulesClosure;
-    modules = rootModules;
     staticShell = stdenvLinuxStuff.bootstrapTools.bash;
     resumeDevice = config.boot.resumeDevice;
   };