diff --git a/.gitignore b/.gitignore
index 1d16e5b..954f316 100644
--- a/.gitignore
+++ b/.gitignore
@@ -12,3 +12,4 @@ setup-2.8.25.tar.bz2
 /setup-2.8.34.tar.bz2
 /setup-2.8.35.tar.bz2
 /setup-2.8.37.tar.bz2
+/setup-2.8.38.tar.bz2
diff --git a/setup.spec b/setup.spec
index ca148e5..0803134 100644
--- a/setup.spec
+++ b/setup.spec
@@ -1,6 +1,6 @@
 Summary: A set of system configuration and setup files
 Name: setup
-Version: 2.8.37
+Version: 2.8.38
 Release: 1%{?dist}
 License: Public Domain
 Group: System Environment/Base
@@ -89,6 +89,13 @@ end
 %ghost %verify(not md5 size mtime) %config(noreplace,missingok) /etc/fstab
 
 %changelog
+* Tue Aug 23 2011 Ondrej Vasik <ovasik@redhat.com> 2.8.38-1
+- reserve 160:160 for swift (openstack-swift) - #732442
+- reserve 161:161 for glance (openstack-glance) - #737442
+- reserve 162:162 for nova (openstack-nova) - #737442
+- comment out 0/tcp spr-itunes /etc/services entry (#710185)
+- add hvc[01], xvc0, hvsi[012] to /etc/securetty (#728030)
+
 * Tue Aug 16 2011 Ondrej Vasik <ovasik@redhat.com> 2.8.37-1
 - dropped all suplemental groups from basic /etc/group file
   (#722529)
diff --git a/sources b/sources
index 09ed41a..c97845c 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-762722340c3661e5e9b8afb20191a98e  setup-2.8.37.tar.bz2
+31b2ba0d8767db3959cf9339b60a4834  setup-2.8.38.tar.bz2