diff --git a/README.livemedia-creator b/README.livemedia-creator
index 630f6399..76ae1e0e 100644
--- a/README.livemedia-creator
+++ b/README.livemedia-creator
@@ -24,7 +24,7 @@ If you are using the lorax git repo you can run it like so:
 
 sudo PATH=./src/sbin/:$PATH PYTHONPATH=./src/ ./src/sbin/livemedia-creator \
 --make-iso --iso=/extra/iso/Fedora-16-x86_64-netinst.iso \
---ks=./docs/livemedia-example.ks --lorax-templates=./share/
+--ks=./docs/fedora-livemedia.ks --lorax-templates=./share/
 
 If you want to watch the install you can pass '--vnc vnc' and use a vnc
 client to connect to localhost:0
@@ -35,8 +35,7 @@ to monitor the logs for fatal errors, but may not catch everything.
 
 HOW IT WORKS
 ------------
-The --make-* switches define the final output. Currently only --make-iso
-and --make-disk are working.
+The --make-* switches define the final output.
 
 You then need to either pass --iso and --ks in order to create a disk image
 using virt-install, or --disk-image to use a disk image from a previous run
@@ -48,19 +47,19 @@ customize the installed system in the same way that current spin-kickstarts
 do.
 
 livemedia-creator monitors the install process for problems by watching the
-install logs. They are written to the current directory or to the base directory
-specified by the --logfile command. You can also monitor the install by passing
---vnc vnc and using a vnc client. This is recommended when first modifying a
-kickstart, since there are still places where Anaconda may get stuck without
-the log monitor catching it.
+install logs. They are written to the current directory or to the base
+directory specified by the --logfile command. You can also monitor the install
+by passing --vnc vnc and using a vnc client. This is recommended when first
+modifying a kickstart, since there are still places where Anaconda may get
+stuck without the log monitor catching it.
 
 The output from this process is a partitioned disk image. kpartx can be used
 to mount and examine it when there is a problem with the install. It can also
 be booted using kvm.
 
-Once the disk image is created it copies the / partition into a formatted
-disk image which is then used as the input to lorax for creation of the
-final media.
+When creating an iso the disk image's / partition is copied into a formatted
+disk image which is then used as the input to lorax for creation of the final
+media.
 
 The final image is created by lorax, using the templates in /usr/share/lorax/
 or the directory specified by --lorax-templates
@@ -169,6 +168,38 @@ This will produce an ami-root.img file in the working directory.
 At this time I have not tested the image with EC2. Feedback would we welcome.
 
 
+APPLIANCE CREATION ------------------ livemedia-creator can now replace
+appliance-tools by using the --make-appliance switch. This will create the
+partitioned disk image and an XML file that can be used with virt-image to
+setup a virtual system.
+
+The XML is generated using the Mako template from
+/usr/share/lorax/appliance/virt-image.xml You can use a different template by
+passing --app-template <template path>
+
+Documentation on the Mako template system can be found here:
+http://docs.makotemplates.org/en/latest/index.html
+
+The name of the final output XML is appliance.xml, this can be changed with
+--app-file <file path>
+
+The following variables are passed to the template:
+disks           A list of disk_info about each disk.
+                Each entry has the following attributes:
+    name           base name of the disk image file
+    format         "raw"
+    checksum_type  "sha256"
+    checksum       sha256 checksum of the disk image
+name            Name of appliance, from --app-name argument
+arch            Architecture
+memory          Memory in KB (from --ram)
+vcpus           from --vcpus
+networks        list of networks from the kickstart or []
+title           from --title
+project         from --project
+releasever      from --releasever
+
+
 DEBUGGING PROBLEMS
 ------------------
 Cleaning up an aborted (ctrl-c) virt-install run (as root):
@@ -190,21 +221,6 @@ Cleaning up aborted --no-virt installs can sometimes be accomplished by running
 the anaconda-cleanup script.
 
 
-THE FUTURE
-----------
-The current release supports creating live iso's and ami images. In the future
-I also want it to be able to create appliance images.
-
-It is also limited to x86 architectures because of it's use of virt-install.
-I hope to be able to support other arches by using Anaconda's image install
-feature instead of virt-install. This will require that livemedia-creator
-be running on the same release as is being created in order to avoid odd
-problems.
-
-I would like to provide a set of alternate lorax template scripts to create
-other media.
-
-
 HACKING
 -------
 Development on this will take place as part of the lorax project, and on the
diff --git a/lorax.spec b/lorax.spec
index 5d34b774..5d1ef9a4 100644
--- a/lorax.spec
+++ b/lorax.spec
@@ -32,6 +32,7 @@ Requires:       squashfs-tools >= 4.2
 Requires:       util-linux
 Requires:       xz
 Requires:       yum
+Requires:       pykickstart
 
 %ifarch %{ix86} x86_64
 Requires:       syslinux >= 4.02-5
diff --git a/share/appliance/libvirt.tmpl b/share/appliance/libvirt.tmpl
new file mode 100644
index 00000000..a739e635
--- /dev/null
+++ b/share/appliance/libvirt.tmpl
@@ -0,0 +1,35 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<image>
+  <name>${name}</name>
+  <domain>
+    <boot type='hvm'>
+      <guest>
+        <arch>${arch}</arch>
+      </guest>
+      <os>
+        <loader dev='hd'/>
+      </os>
+%for disk, letter in zip(disks, xrange(97, 123)):
+      <drive disk='${disk.name}' target='hd${chr(letter)}'/>
+%endfor
+    </boot>
+    <devices>
+      <vcpu>${vcpus}</vcpu>
+      <memory>${memory}</memory>
+%for net in networks:
+      <interface/>
+%endfor
+      <graphics/>
+    </devices>
+  </domain>
+  <storage>
+%for disk in disks:
+  <disk file='${disk.name}' use='system' format='${disk.format}'>
+  %if disk.checksum:
+    <checksum type='${disk.checksum_type}'>${disk.checksum}</checksum>
+  %endif
+  </disk>
+%endfor
+  </storage>
+</image>
+
diff --git a/src/sbin/livemedia-creator b/src/sbin/livemedia-creator
index 3c37cb5b..5a2ecae1 100755
--- a/src/sbin/livemedia-creator
+++ b/src/sbin/livemedia-creator
@@ -36,11 +36,16 @@ from time import sleep
 import shutil
 import traceback
 import argparse
+import hashlib
 
 # Use pykickstart to calculate disk image size
 from pykickstart.parser import KickstartParser
 from pykickstart.version import makeVersion
 
+# Use Mako templates for appliance builder descriptions
+from mako.template import Template
+from mako.exceptions import text_error_template
+
 # Use the Lorax treebuilder branch for iso creation
 from pylorax.base import DataHolder
 from pylorax.treebuilder import TreeBuilder, RuntimeBuilder, udev_escape
@@ -332,7 +337,11 @@ def is_image_mounted(disk_img):
 
 def anaconda_install( disk_img, disk_size, kickstart, repo, args ):
     """
-
+    disk_img    Full path of the disk image
+    disk_size   Disk size in GB
+    kickstart   Full path to kickstart file
+    repo        URL of repository
+    args        Extra args to pass to anaconda --image install
     """
     # Create the sparse image
     mksparse( disk_img, disk_size * 1024**3 )
@@ -354,6 +363,53 @@ def get_kernels( boot_dir ):
     return [f[8:] for f in files if f.startswith("vmlinuz-")]
 
 
+def make_appliance(disk_img, name, template, outfile, networks=None, ram=1024,
+                   vcpus=1, title="Linux", project="Linux", releasever=17):
+    """
+    Generate an appliance description file
+
+    disk_img    Full path of the disk image
+    name        Name of the appliance, passed to the template
+    template    Full path of Mako template
+    outfile     Full path of file to write, using template
+    networks    List of networks from the kickstart
+    ram         Ram, in MB, passed to template. Default is 1024
+    vcpus       CPUs, passed to template. Default is 1
+    title       Title, passed to template. Default is 'Linux'
+    project     Project, passed to template. Default is 'Linux'
+    releasever  Release version, passed to template. Default is 17
+    """
+    if not (disk_img and template and outfile):
+        return None
+
+    log.info("Creating appliance definition using ${0}".format(template))
+
+    # Mount the disk and figure out the arch
+    arch = "x86_64"
+
+    log.info("Calculating SHA256 checksum of {0}".format(disk_img))
+    sha256 = hashlib.sha256()
+    with open(disk_img) as f:
+        while True:
+            data = f.read(1024*1024)
+            if not data:
+                break
+            sha256.update(data)
+    log.info("SHA256 of {0} is {1}".format(disk_img, sha256.hexdigest()))
+    disk_info = DataHolder(name=os.path.basename(disk_img), format="raw",
+                           checksum_type="sha256", checksum=sha256.hexdigest())
+    try:
+        result = Template(filename=template).render(disks=[disk_info], name=name,
+                          arch=arch, memory=ram*1024, vcpus=vcpus, networks=networks,
+                          title=title, project=project, releasever=releasever)
+    except Exception:
+        log.error(text_error_template().render())
+        raise
+
+    with open(outfile, "w") as f:
+        f.write(result)
+
+
 def make_ami( disk_img, ami_img="ami-root.img", ami_label="AMI" ):
     """
     Copy the / partition to an un-partitioned disk image
@@ -483,6 +539,8 @@ if __name__ == '__main__':
 
     parser.add_argument( "--ks", action="append", type=os.path.abspath,
                          help="Kickstart file defining the install." )
+    parser.add_argument( "--image-name", default=None,
+                         help="Name of disk image to create. Default is a random name." )
     parser.add_argument( "--image-only", action="store_true",
                          help="Exit after creating disk image." )
     parser.add_argument( "--keep-image", action="store_true",
@@ -508,6 +566,15 @@ if __name__ == '__main__':
                          help="Directory to copy the resulting images and iso into. "
                               "Defaults to the temporary working directory")
 
+    # Group of arguments for appliance creation
+    app_group = parser.add_argument_group("appliance arguments")
+    app_group.add_argument( "--app-name", default=None,
+                            help="Name of appliance to pass to template")
+    app_group.add_argument( "--app-template", default=None,
+                         help="Path to template to use for appliance data.")
+    app_group.add_argument( "--app-file", default="appliance.xml",
+                         help="Appliance template results file.")
+
     # Group of arguments to pass to virt-install
     if not libvirt:
         virt_group = parser.add_argument_group("virt-install arguments (DISABLED -- no libvirt)")
@@ -590,10 +657,6 @@ if __name__ == '__main__':
         log.error( "The disk image {0} is missing.".format( opts.disk_image ) )
         sys.exit( 1 )
 
-    if opts.make_appliance:
-        log.error( "--make-appliance is not yet implemented." )
-        sys.exit( 1 )
-
     if not opts.no_virt and not opts.iso and not opts.disk_image:
         log.error( "virt-install needs an install iso." )
         sys.exit( 1 )
@@ -606,14 +669,41 @@ if __name__ == '__main__':
         log.error("virt-install requires libvirt to be installed.")
         sys.exit(1)
 
-    tempfile.tempdir = opts.tmp
+    if opts.no_virt and not os.path.exists("/usr/sbin/anaconda"):
+        log.error("no-virt requires anaconda to be installed.")
+        sys.exit(1)
 
-    # Make the disk image
-    if not opts.disk_image:
-        # Parse the kickstart to get the partition sizes
+    if opts.make_appliance and not opts.app_template:
+        opts.app_template = joinpaths(opts.lorax_templates,
+                                            "appliance/libvirt.tmpl")
+
+    if opts.make_appliance and not os.path.exists(opts.app_template):
+        log.error("The appliance template ({0}) doesn't "
+                  "exist".format(opts.app_template))
+        sys.exit(1)
+
+    if opts.image_name and os.path.exists(joinpaths(opts.tmp,opts.image_name)):
+        log.error("The disk image to be created should not exist.")
+        sys.exit(1)
+
+    if opts.app_file:
+        opts.app_file = joinpaths(opts.tmp, opts.app_file)
+
+    tempfile.tempdir = opts.tmp
+    disk_img = None
+
+    # Parse the kickstart
+    if opts.ks:
         ks_version = makeVersion()
         ks = KickstartParser( ks_version, errorsAreFatal=False, missingIncludeIsFatal=False )
         ks.readKickstart( opts.ks[0] )
+
+    # Make the disk image
+    if not opts.disk_image:
+        if not opts.ks:
+            log.error("Image creation requires a kickstart file")
+            sys.exit(1)
+
         disk_size = 1 + (sum( [p.size for p in ks.handler.partition.partitions] ) / 1024)
         log.info( "disk_size = {0}GB".format(disk_size) )
 
@@ -627,7 +717,10 @@ if __name__ == '__main__':
                       "graphical), this will interfere with livemedia-creator.")
             sys.exit(1)
 
-        disk_img = tempfile.mktemp( prefix="disk", suffix=".img", dir=opts.tmp )
+        if opts.image_name:
+            disk_img = joinpaths(opts.tmp, opts.image_name)
+        else:
+            disk_img = tempfile.mktemp( prefix="disk", suffix=".img", dir=opts.tmp )
         install_log = os.path.abspath(os.path.dirname(opts.logfile))+"/virt-install.log"
 
         log.info( "disk_img = {0}".format(disk_img) )
@@ -700,12 +793,21 @@ if __name__ == '__main__':
                                   opts.lorax_templates,
                                   opts.title, opts.project, opts.releasever,
                                   opts.volid )
+        # cleanup the mess
+        if disk_img and not opts.keep_image and not opts.disk_image:
+            os.unlink( disk_img )
+            log.info("Disk image erased")
+            disk_img = None
     elif opts.make_ami and not opts.image_only:
         result_dir = make_ami(opts.disk_image or disk_img)
-
-    # cleanup the mess
-    if disk_img and not opts.keep_image and not opts.disk_image:
-        os.unlink( disk_img )
+    elif opts.make_appliance and not opts.image_only:
+        if not opts.ks:
+            networks = []
+        else:
+            networks = ks.handler.network.network
+        make_appliance(opts.disk_image or disk_img, opts.app_name,
+                       opts.app_template, opts.app_file, networks, opts.ram,
+                       opts.vcpus, opts.arch, opts.title, opts.project, opts.releasever)
 
     if opts.result_dir and result_dir:
         shutil.copytree( result_dir, opts.result_dir )
@@ -714,10 +816,10 @@ if __name__ == '__main__':
     log.info("SUMMARY")
     log.info("-------")
     log.info("Logs are in {0}".format(os.path.abspath(os.path.dirname(opts.logfile))))
-    if opts.keep_image or opts.make_disk:
+    if disk_img:
         log.info("Disk image is at {0}".format(disk_img))
-    else:
-        log.info("Disk image erased")
+    if opts.make_appliance:
+        log.info("Appliance description is in {0}".format(opts.app_file))
     if result_dir:
         log.info("Results are in {0}".format(opts.result_dir or result_dir))