diff --git a/Makefile-rpm-ostree.am b/Makefile-rpm-ostree.am
index a68f2d2f..8ff33945 100644
--- a/Makefile-rpm-ostree.am
+++ b/Makefile-rpm-ostree.am
@@ -17,7 +17,7 @@
 
 bin_SCRIPTS += rpm-ostree
 
-rpm-ostree: fedora/rpm-ostree.in Makefile
+rpm-ostree: src/rpm-ostree.in Makefile
 	$(AM_V_GEN) sed -e s,@PYTHON\@,$(PYTHON), -e s,@pkglibdir\@,$(pkglibdir), $< > $@.tmp && mv $@.tmp $@
 	@chmod a+x $@
 
diff --git a/configure.ac b/configure.ac
index b929d9fc..5c07ab6d 100644
--- a/configure.ac
+++ b/configure.ac
@@ -35,6 +35,8 @@ PKG_CHECK_MODULES(PKGDEP_GIO_UNIX, [gio-unix-2.0])
 PKG_CHECK_MODULES(PKGDEP_OSTREE, [ostree-1])
 AC_PATH_PROG([XSLTPROC], [xsltproc])
 
+AM_PATH_PYTHON(2.7)
+
 AC_CONFIG_FILES([
 Makefile
 ])
diff --git a/src/rpm-ostree.in b/src/rpm-ostree.in
index 84937f64..e3aeb822 100644
--- a/src/rpm-ostree.in
+++ b/src/rpm-ostree.in
@@ -26,6 +26,6 @@ __builtin__.__dict__['PKGLIBDIR'] = "@pkglibdir@"
 path = os.path.join('@pkglibdir@', 'rpm-ostree')
 sys.path.insert(0, path)
 
-import rpmrpmrpmostree
+import rpmostree
 
 sys.exit(rpmostree.main())
diff --git a/src/rpm-ostree.py b/src/rpmostree.py
similarity index 97%
rename from src/rpm-ostree.py
rename to src/rpmostree.py
index 3aa907f1..6b13cb10 100755
--- a/src/rpm-ostree.py
+++ b/src/rpmostree.py
@@ -217,11 +217,10 @@ def _create_rootfs_from_yumroot_content(targetroot, yumroot):
     ensuredir(target_tmpfilesd)
     shutil.copy(os.path.join(PKGLIBDIR, 'tmpfiles-gnome-ostree.conf'), target_tmpfilesd)
 
-def yuminstall(yumroot, packages):
+def runyum(argv, yumroot):
     yumargs = ['yum', '-y', '--releasever=%s' % (opts.os_version, ), '--nogpg', '--setopt=keepcache=1', '--installroot=' + yumroot, '--disablerepo=*']
     yumargs.extend(map(lambda x: '--enablerepo=' + x, opts.enablerepo))
-    yumargs.append('install')
-    yumargs.extend(packages)
+    yumargs.extend(argv)
     print "Running: %s" % (subprocess.list2cmdline(yumargs), )
     yum_env = dict(os.environ)
     yum_env['KERNEL_INSTALL_NOOP'] = 'yes'
@@ -230,6 +229,14 @@ def yuminstall(yumroot, packages):
     if rcode != 0:
         raise ValueError("Yum exited with code %d" % (rcode, ))
 
+def yuminstall(yumroot, packages):
+    argv = list(['install'])
+    argv.extend(packages)
+    runyum(argv, yumroot)
+
+def yumgroupinstall(yumroot, group):
+    runyum(['group', 'install', group], yumroot)
+
 def main():
     parser = optparse.OptionParser('%prog ACTION PACKAGE1 [PACKAGE2...]')
     parser.add_option('', "--repo",
@@ -337,7 +344,14 @@ def main():
         open(os.path.join(yumroot, 'usr/lib', n), 'w').close()
     replace_nsswitch(os.path.join(yumroot, 'etc'))
 
-    yuminstall(yumroot, packages)
+    plain_packages = []
+    for package in packages:
+        if package[0] == '@':
+            yumgroupinstall(package)
+        else:
+            plain_packages.append(package)
+
+    yuminstall(yumroot, plain_packages)
 
     if opts.breakpoint == 'post-yum-phase2':
         return