diff --git a/Dockerfile b/Dockerfile
index bca6b339c..6a036bdad 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,13 +1,17 @@
-FROM ubuntu:13.10
+FROM phusion/baseimage:0.9.9
 
 ENV DEBIAN_FRONTEND noninteractive
+ENV HOME /root
+
 RUN apt-get update
-RUN apt-get install -y git python-virtualenv python-dev phantomjs libjpeg8 libjpeg62-dev libfreetype6 libfreetype6-dev libevent-dev gdebi-core
+RUN apt-get install -y git python-virtualenv python-dev phantomjs libjpeg8 libjpeg62-dev libfreetype6 libfreetype6-dev libevent-dev gdebi-core g++
 
 ADD binary_dependencies binary_dependencies
 RUN gdebi --n binary_dependencies/*.deb
 
-ADD requirements.enterprise requirements.txt
+RUN apt-get clean && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
+
+ADD requirements.txt requirements.txt
 RUN virtualenv --distribute venv
 RUN venv/bin/pip install -r requirements.txt
 
@@ -28,10 +32,15 @@ ADD workers workers
 ADD app.py app.py
 ADD application.py application.py
 ADD config.py config.py
-ADD run.sh run.sh
+
+ADD conf/init/mklogsdir.sh /etc/my_init.d/
+ADD conf/init/gunicorn.sh /etc/service/gunicorn/run
+ADD conf/init/nginx.sh /etc/service/nginx/run
+ADD conf/init/diffsworker.sh /etc/service/diffsworker/run
+ADD conf/init/webhookworker.sh /etc/service/webhookworker/run
 
 VOLUME ["/conf/stack", "/mnt/logs"]
 
 EXPOSE 443 80
 
-ENTRYPOINT ["./run.sh"]
\ No newline at end of file
+CMD ["/sbin/my_init"]
\ No newline at end of file
diff --git a/README.md b/README.md
index fdacaba51..eb7c477d2 100644
--- a/README.md
+++ b/README.md
@@ -15,30 +15,13 @@ sudo mkdir -p /mnt/logs/
 sudo docker run -d -p 80:80 -p 443:443 -v /mnt/logs:/mnt/logs -v `pwd`/quayconfig/production:/conf/stack quay.io/quay/quay
 ```
 
-start the log shipper:
+start the log shipper (DEPRECATED):
 
 ```
 sudo docker pull quay.io/quay/logstash
 sudo docker run -d -e REDIS_PORT_6379_TCP_ADDR=logs.quay.io -v /mnt/logs:/mnt/logs quay.io/quay/logstash quay.conf
 ```
 
-start the workers (FIXME):
-
-```
-STACK=prod python -m workers.diffsworker -D
-STACK=prod python -m workers.webhookworker -D
-```
-
-bouncing the servers (FIXME):
-
-```
-sudo kill -HUP `cat /mnt/logs/nginx.pid`
-kill -HUP `cat /mnt/logs/gunicorn.pid`
-
-kill <pids of worker daemons>
-restart daemons
-```
-
 running the tests:
 
 ```
diff --git a/binary_dependencies/nginx_1.4.2-nobuffer-2_amd64.deb b/binary_dependencies/nginx_1.4.2-nobuffer-2_amd64.deb
new file mode 100644
index 000000000..dfc530e7f
Binary files /dev/null and b/binary_dependencies/nginx_1.4.2-nobuffer-2_amd64.deb differ
diff --git a/conf/gunicorn_config.py b/conf/gunicorn_config.py
index c7332fe96..162c617b9 100644
--- a/conf/gunicorn_config.py
+++ b/conf/gunicorn_config.py
@@ -2,7 +2,6 @@ bind = 'unix:/tmp/gunicorn.sock'
 workers = 8
 worker_class = 'gevent'
 timeout = 2000
-daemon = True
 pidfile = '/mnt/logs/gunicorn.pid'
 errorlog = '/mnt/logs/application.log'
 loglevel = 'debug'
diff --git a/conf/init/diffsworker.sh b/conf/init/diffsworker.sh
new file mode 100755
index 000000000..68d3c38b4
--- /dev/null
+++ b/conf/init/diffsworker.sh
@@ -0,0 +1,8 @@
+#! /bin/bash
+
+echo 'Starting diffs worker'
+
+cd /
+venv/bin/python -m workers.diffsworker --log=/mnt/logs/diffsworker.log
+
+echo 'Diffs worker exited'
\ No newline at end of file
diff --git a/conf/init/gunicorn.sh b/conf/init/gunicorn.sh
new file mode 100755
index 000000000..a61e7c651
--- /dev/null
+++ b/conf/init/gunicorn.sh
@@ -0,0 +1,8 @@
+#! /bin/bash
+
+echo 'Starting gunicon'
+
+cd /
+venv/bin/gunicorn -c conf/gunicorn_config.py application:application
+
+echo 'Gunicorn exited'
\ No newline at end of file
diff --git a/conf/init/mklogsdir.sh b/conf/init/mklogsdir.sh
new file mode 100755
index 000000000..4ca2880d0
--- /dev/null
+++ b/conf/init/mklogsdir.sh
@@ -0,0 +1,4 @@
+#! /bin/sh
+
+echo 'Creating logs directory'
+mkdir -p /mnt/logs
\ No newline at end of file
diff --git a/conf/init/nginx.sh b/conf/init/nginx.sh
new file mode 100755
index 000000000..6cd4b3430
--- /dev/null
+++ b/conf/init/nginx.sh
@@ -0,0 +1,14 @@
+#! /bin/bash
+
+echo 'Starting nginx'
+
+if [ -f /conf/stack/ssl.key ]
+then
+  echo "Using HTTPS"
+  /usr/local/nginx/sbin/nginx -c /conf/nginx-enterprise.conf
+else
+  echo "No SSL key provided, using HTTP"
+  /usr/local/nginx/sbin/nginx -c /conf/nginx-enterprise-nossl.conf
+fi
+
+echo 'Nginx exited'
\ No newline at end of file
diff --git a/conf/init/webhookworker.sh b/conf/init/webhookworker.sh
new file mode 100755
index 000000000..7ab6340d8
--- /dev/null
+++ b/conf/init/webhookworker.sh
@@ -0,0 +1,8 @@
+#! /bin/bash
+
+echo 'Starting webhook worker'
+
+cd /
+venv/bin/python -m workers.webhookworker --log=/mnt/logs/webhookworker.log
+
+echo 'Webhook worker exited'
\ No newline at end of file
diff --git a/conf/nginx-enterprise-nossl.conf b/conf/nginx-enterprise-nossl.conf
index 6561e4c10..73a9c7605 100644
--- a/conf/nginx-enterprise-nossl.conf
+++ b/conf/nginx-enterprise-nossl.conf
@@ -4,6 +4,8 @@ worker_processes 2;
 
 user root nogroup;
 
+daemon off;
+
 http {
     include http-base.conf;
 
diff --git a/conf/nginx-enterprise.conf b/conf/nginx-enterprise.conf
index b704dc2db..43c21b6ca 100644
--- a/conf/nginx-enterprise.conf
+++ b/conf/nginx-enterprise.conf
@@ -4,6 +4,8 @@ worker_processes 2;
 
 user root nogroup;
 
+daemon off;
+
 http {
     include http-base.conf;
 
diff --git a/requirements.txt b/requirements.txt
index 3df9f03e0..06f341226 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -18,7 +18,6 @@ argparse==1.2.1
 beautifulsoup4==4.3.2
 blinker==1.3
 boto==2.27.0
-distribute==0.6.34
 git+https://github.com/DevTable/docker-py.git
 ecdsa==0.11
 gevent==1.0
diff --git a/test/data/test.db b/test/data/test.db
index 88b7213c5..6471bc3e4 100644
Binary files a/test/data/test.db and b/test/data/test.db differ
diff --git a/workers/diffsworker.py b/workers/diffsworker.py
index 1d6ee56af..c5d9b2b5a 100644
--- a/workers/diffsworker.py
+++ b/workers/diffsworker.py
@@ -1,5 +1,4 @@
 import logging
-import daemon
 import argparse
 
 from data.queue import image_diff_queue
@@ -34,26 +33,16 @@ class DiffsWorker(Worker):
 
     return True
 
-
 parser = argparse.ArgumentParser(description='Worker daemon to compute diffs')
-parser.add_argument('-D', action='store_true', default=False,
-                    help='Run the worker in daemon mode.')
-parser.add_argument('--log', default='diffsworker.log',
-                    help='Specify the log file for the worker as a daemon.')
+parser.add_argument('--log', help='Specify the log file for the worker as a daemon.')
 args = parser.parse_args()
 
-
-worker = DiffsWorker(image_diff_queue)
-
-if args.D:
+if args.log is not None:
   handler = logging.FileHandler(args.log)
-  handler.setFormatter(formatter)
-  root_logger.addHandler(handler)
-  with daemon.DaemonContext(files_preserve=[handler.stream]):
-    worker.start()
-
 else:
   handler = logging.StreamHandler()
-  handler.setFormatter(formatter)
-  root_logger.addHandler(handler)
-  worker.start()
\ No newline at end of file
+handler.setFormatter(formatter)
+root_logger.addHandler(handler)
+
+worker = DiffsWorker(image_diff_queue)
+worker.start()
\ No newline at end of file
diff --git a/workers/dockerfilebuild.py b/workers/dockerfilebuild.py
index 21d4c5cab..4d7b0e306 100644
--- a/workers/dockerfilebuild.py
+++ b/workers/dockerfilebuild.py
@@ -461,7 +461,7 @@ parser.add_argument('--log', default='dockerfilebuild.log',
 args = parser.parse_args()
 
 
-worker = DockerfileBuildWorker(dockerfile_build_queue)
+worker = DockerfileBuildWorker(dockerfile_build_queue, reservation_seconds=60*60)  # 1 hour
 
 if args.D:
   handler = logging.FileHandler(args.log)
diff --git a/workers/webhookworker.py b/workers/webhookworker.py
index 575c11f41..f3d193ee9 100644
--- a/workers/webhookworker.py
+++ b/workers/webhookworker.py
@@ -1,5 +1,4 @@
 import logging
-import daemon
 import argparse
 import requests
 import json
@@ -37,25 +36,16 @@ class WebhookWorker(Worker):
 
 
 parser = argparse.ArgumentParser(description='Worker daemon to send webhooks')
-parser.add_argument('-D', action='store_true', default=False,
-                    help='Run the worker in daemon mode.')
-parser.add_argument('--log', default='webhooks.log',
-                    help='Specify the log file for the worker as a daemon.')
+parser.add_argument('--log', help='Specify the log file for the worker as a daemon.')
 args = parser.parse_args()
 
+if args.log is not None:
+  handler = logging.FileHandler(args.log)
+else:
+  handler = logging.StreamHandler()
+handler.setFormatter(formatter)
+root_logger.addHandler(handler)
 
 worker = WebhookWorker(webhook_queue, poll_period_seconds=15,
                        reservation_seconds=3600)
-
-if args.D:
-  handler = logging.FileHandler(args.log)
-  handler.setFormatter(formatter)
-  root_logger.addHandler(handler)
-  with daemon.DaemonContext(files_preserve=[handler.stream]):
-    worker.start()
-
-else:
-  handler = logging.StreamHandler()
-  handler.setFormatter(formatter)
-  root_logger.addHandler(handler)
-  worker.start()
\ No newline at end of file
+worker.start()
\ No newline at end of file
diff --git a/workers/worker.py b/workers/worker.py
index a525913a1..5b6d6785c 100644
--- a/workers/worker.py
+++ b/workers/worker.py
@@ -1,5 +1,6 @@
 import logging
 import json
+import signal
 
 from threading import Event
 from apscheduler.scheduler import Scheduler
@@ -52,8 +53,16 @@ class Worker(object):
     self._sched.add_interval_job(self.poll_queue, seconds=self._poll_period_seconds)
     self._sched.add_interval_job(self.watchdog, seconds=self._watchdog_period_seconds)
 
+    signal.signal(signal.SIGTERM, self.join)
+    signal.signal(signal.SIGINT, self.join)   
+
     while not self._stop.wait(1):
       pass
 
-  def join(self):
+    logger.debug('Waiting for running tasks to complete.')
+    self._sched.shutdown()
+    logger.debug('Finished.')
+
+  def join(self, signal_num=None, stack_frame=None):
+    logger.debug('Shutting down worker gracefully.')
     self._stop.set()