diff --git a/.cvsignore b/.cvsignore
index 2e93d6f..21138a0 100644
--- a/.cvsignore
+++ b/.cvsignore
@@ -1 +1 @@
-setup-2.7.7.tar.bz2
+setup-2.8.1.tar.bz2
diff --git a/setup-2.7.7-rxvt.patch b/setup-2.7.7-rxvt.patch
deleted file mode 100644
index 72f4a00..0000000
--- a/setup-2.7.7-rxvt.patch
+++ /dev/null
@@ -1,12 +0,0 @@
-diff -urNp setup-2.7.7-orig/inputrc setup-2.7.7/inputrc
---- setup-2.7.7-orig/inputrc	2009-01-22 14:00:18.000000000 +0100
-+++ setup-2.7.7/inputrc	2009-01-30 10:49:40.000000000 +0100
-@@ -26,6 +26,8 @@ $if mode=emacs
- 
- # for rxvt
- "\e[8~": end-of-line
-+"\eOc": forward-word
-+"\eOd": backward-word
- 
- # for non RH/Debian xterm, can't hurt for RH/DEbian xterm
- "\eOH": beginning-of-line
diff --git a/setup-2.7.7-uidgid.patch b/setup-2.7.7-uidgid.patch
deleted file mode 100644
index 9289027..0000000
--- a/setup-2.7.7-uidgid.patch
+++ /dev/null
@@ -1,21 +0,0 @@
-diff -urNp setup-2.7.7-orig/uidgid setup-2.7.7/uidgid
---- setup-2.7.7-orig/uidgid	2009-01-22 14:00:18.000000000 +0100
-+++ setup-2.7.7/uidgid	2009-01-29 12:40:37.000000000 +0100
-@@ -23,6 +23,7 @@ gopher	13	30	/usr/lib/gopher-data		/sbin
- ftp	14	50	/var/ftp		/sbin/nologin	setup
- man	-	15	-		-	setup
- pkiuser	17	17	/usr/share/pki		/sbin/nologin	pki-ca,rhpki-ca
-+dialout	-	18	-		-	udev,MAKEDEV
- floppy	-	19	-		-	dev,MAKEDEV
- games	-	20	-		-	setup
- slocate	-	21	-		-	slocate
-@@ -92,8 +93,7 @@ clamav	83	83	/tmp		/sbin/nologin	clamav
- screen	-	84	-		-	screen
- quaggavt	-	85	-		-	quagga
- sabayon	86	86	-		/sbin/nologin	sabayon
--polkituser	87	-	/		/sbin/nologin	PolicyKit
--dialout	-	87	-		-	udev,MAKEDEV
-+polkituser	87	87	/		/sbin/nologin	PolicyKit
- wbpriv	-	88	-		-	samba-common
- postfix	89	89	/var/spool/postfix		/bin/true	postfix
- postdrop	-	90	-		-	postfix
diff --git a/setup.spec b/setup.spec
index ad2b3bf..8a05db3 100644
--- a/setup.spec
+++ b/setup.spec
@@ -1,17 +1,14 @@
 Summary: A set of system configuration and setup files
 Name: setup
-Version: 2.7.7
-Release: 5%{?dist}
+Version: 2.8.1
+Release: 1%{?dist}
 License: Public Domain
 Group: System Environment/Base
 URL: https://fedorahosted.org/setup/
 Source: setup-%{version}.tar.bz2
-Patch1: setup-2.7.7-uidgid.patch
-Patch2: setup-2.7.7-rxvt.patch
 Buildroot: %{_tmppath}/%{name}-%{version}-%{release}-root-%(%{__id_u} -n)
 BuildArch: noarch
 BuildRequires: bash tcsh perl
-
 Conflicts: initscripts < 4.26, bash <= 2.0.4-21
 
 %description
@@ -20,8 +17,7 @@ setup files, such as passwd, group, and profile.
 
 %prep
 %setup -q
-%patch1 -p1
-%patch2 -p1
+./shadowconvert.sh
 
 %build
 
@@ -35,7 +31,6 @@ mkdir -p %{buildroot}/etc/profile.d
 cp -ar * %{buildroot}/etc
 rm -f %{buildroot}/etc/uidgid
 mkdir -p %{buildroot}/var/log
-touch %{buildroot}/etc/{shadow,gshadow}
 touch %{buildroot}/var/log/lastlog
 touch %{buildroot}/etc/environment
 chmod 0644 %{buildroot}/etc/environment
@@ -48,24 +43,34 @@ touch %{buildroot}/etc/mtab
 rm -f %{buildroot}/etc/Makefile
 rm -f %{buildroot}/etc/serviceslint
 rm -f %{buildroot}/etc/uidgidlint
+rm -f %{buildroot}/etc/shadowconvert.sh
 rm -f %{buildroot}/etc/setup.spec
 
 %clean
 rm -rf %{buildroot}
 
+%postun
+#throw away useless and dangerous update stuff until rpm will be able to
+#handle it ( http://rpm.org/ticket/6 )
+rm -f /etc/passwd.rpmnew
+rm -f /etc/shadow.rpmnew
+rm -f /etc/group.rpmnew
+rm -f /etc/gshadow.rpmnew
+
 %files
 %defattr(-,root,root)
 %doc uidgid
 %verify(not md5 size mtime) %config(noreplace) /etc/passwd
 %verify(not md5 size mtime) %config(noreplace) /etc/group
-%ghost %verify(not md5 size mtime) %config(noreplace,missingok) /etc/shadow
-%ghost %verify(not md5 size mtime) %config(noreplace,missingok) /etc/gshadow
+%verify(not md5 size mtime) %config(noreplace,missingok) /etc/shadow
+%verify(not md5 size mtime) %config(noreplace,missingok) /etc/gshadow
 %verify(not md5 size mtime) %config(noreplace) /etc/services
 %verify(not md5 size mtime) %config(noreplace) /etc/exports
 %config(noreplace) /etc/aliases
 %config(noreplace) /etc/environment
 %config(noreplace) /etc/filesystems
 %config(noreplace) /etc/host.conf
+%verify(not md5 size mtime) %config(noreplace) /etc/hosts
 %verify(not md5 size mtime) %config(noreplace) /etc/hosts.allow
 %verify(not md5 size mtime) %config(noreplace) /etc/hosts.deny
 %verify(not md5 size mtime) %config(noreplace) /etc/motd
@@ -84,6 +89,14 @@ rm -rf %{buildroot}
 %ghost %verify(not md5 size mtime) %config(noreplace,missingok) /etc/mtab
 
 %changelog
+* Thu Feb 26 2009 Ondrej Vasik <ovasik@redhat.com> 2.8.1-1
+- do ship/generate /etc/{shadow,gshadow} files(#483251)
+- do ship default /etc/hosts with setup (#483244)
+- activate multi on (required for IPv6 only localhost
+  recognition out-of-the-box) (#486461)
+- added postun section for cleaning of dangerous .rpmnew
+  files after updates
+
 * Wed Feb 25 2009 Fedora Release Engineering <rel-eng@lists.fedoraproject.org> - 2.7.7-5
 - Rebuilt for https://fedoraproject.org/wiki/Fedora_11_Mass_Rebuild
 
diff --git a/sources b/sources
index aabf400..48052ef 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-233a73e23b7a51f57e9417b4f9c85eaf  setup-2.7.7.tar.bz2
+14d864dd3ea5e023ca6c176b21b181ab  setup-2.8.1.tar.bz2