diff --git a/FunKey/board/funkey/rootfs-overlay/usr/local/sbin/share b/FunKey/board/funkey/rootfs-overlay/usr/local/sbin/share
index e2915ec..5da452c 100755
--- a/FunKey/board/funkey/rootfs-overlay/usr/local/sbin/share
+++ b/FunKey/board/funkey/rootfs-overlay/usr/local/sbin/share
@@ -49,6 +49,12 @@ mount_share () {
 
     # Create the directory structure if required
     (cd /mnt; mkdir -p "Atari lynx" "Game Boy" "Game Boy Color" "Game Boy Advance" "Game Gear" "Neo Geo Pocket" "NES" "PS1" "Sega Genesis" "Sega Master System" "SNES" "WonderSwan")
+
+    # Check if there is an updte file
+    if [ -f /mnt/FunKey-*.swu ]; then
+	warn "found an update file, going into recovery mode"
+	recovery_mode
+    fi
     return 0
 }
 
@@ -73,7 +79,7 @@ stop_share () {
     # Stop sharing the backing store partition
     echo > $BACKING_STORE_FILE || die 11 "the backing store partition is still mounted on host"
 
-    # 3) Mount the backing store partition locally
+    # Mount the backing store partition locally
     mount_share
 
     info "stopped sharing the backing store partition"
diff --git a/FunKey/board/funkey/sw-description b/FunKey/board/funkey/sw-description
index 8f72206..a7099c4 100644
--- a/FunKey/board/funkey/sw-description
+++ b/FunKey/board/funkey/sw-description
@@ -2,13 +2,21 @@ software =
 {
         version = "0.6";
 
-        hardware-compatibility = [ "#RE:^Rev\.[A-E]$" ];
+        hardware-compatibility = [ "#RE:^Rev\.[D-E]$" ];
 
         images: (
         {
-                filename = "rootfs.ext2.tar.gz";
+                filename = "rootfs.ext2.gz";
                 device = "/dev/mmcblk0p2";
-		compression = "zlib";
+		type = "raw";
+		installed-directly = true;
+		compressed = "zlib";
         }
         );
+	scripts: (
+	{
+		filename = "update_partition";
+		type = "shellscript";
+	}
+	);
 }
diff --git a/FunKey/board/funkey/update_partition b/FunKey/board/funkey/update_partition
new file mode 100755
index 0000000..f4b2852
--- /dev/null
+++ b/FunKey/board/funkey/update_partition
@@ -0,0 +1,77 @@
+#!/bin/sh
+# Update partition script
+
+source /usr/local/lib/utils
+
+root_part_num=2
+root_part=/dev/mmcblk0p${root_part_num}
+root_mount=/tmp/rootfs
+
+do_preinst()
+{
+    notif "1/7 Extract update"
+    exit 0
+}
+
+do_postinst()
+{
+    local version
+
+    notif "2/7 Resize root filesystem"
+    resize2fs ${root_part} >/dev/null 2>&1
+    if [ $? -ne 0 ]; then
+	notif "Cannot resize root filesystem"
+	exit 1
+    fi
+    notif "3/7 Mount root filesystem"
+    mkdir -p ${root_mount}
+    mount -t ext4 ${root_part} ${root_mount} >/dev/null 2>&1
+    if [ $? -ne 0 ]; then
+	notif "Cannot mount root filesystem"
+	exit 1
+    fi
+    notif "4/7 Create swap"
+
+    # Create an empty 128MB /swap file, change its permissions and format it as swap
+    dd if=/dev/zero of=${root_mount}/swap bs=1M count=128 >/dev/null 2>&1 &&
+	chmod 0600 ${root_mount}/swap >/dev/null 2>&1 &&
+	mkswap ${root_mount}/swap >/dev/null 2>&1
+    if [ $? -ne 0 ]; then
+	rm ${root_mount}/swap
+	umount ${root_mount} >/dev/null 2>&1
+	notif "Cannot create swap file"
+	exit 1
+    fi
+    notif "5/7 Unmount root filesystem"
+    umount ${root_mount} >/dev/null 2>&1
+    if [ $? -ne 0 ]; then
+	notif "Cannot unmount root filesystem"
+	exit 1
+    fi
+    for file in /mnt/FunKey-*.swu; do
+	version=$(basename "${file}" .swu | cut -d '-' -f 2)
+	notif "6/7 Setting rootfs version to ${version}"
+	sed -i '/^rootfs/d' /etc/sw-versions
+	notif "7/7 Erase update file"
+	echo -e "rootfs\t${version}" >> /etc/sw-versions
+	rm -f "${file}"
+    done
+    exit 0
+}
+
+echo $0 $1
+
+case "$1" in
+preinst)
+    notif "call do_preinst"
+    do_preinst
+    ;;
+postinst)
+    notif "call do_postinst"
+    do_postinst
+    ;;
+*)
+    notif "default"
+    exit 1
+    ;;
+esac
diff --git a/Makefile b/Makefile
index f8b214b..97084ac 100644
--- a/Makefile
+++ b/Makefile
@@ -33,7 +33,7 @@ TERM_RESET := $(shell tput rmso 2>/dev/null)
 
 .IGNORE: _Makefile_
 
-all: update
+all: image update
 	@:
 
 _Makefile_:
@@ -42,10 +42,10 @@ _Makefile_:
 %/Makefile:
 	@:
 
-buildroot: buildroot/README
+buildroot: buildroot/.git
 	@:
 
-buildroot/README:
+buildroot/.git:
 	@$(call MESSAGE,"Getting buildroot")
 	@git submodule init
 	@git submodule update
@@ -86,9 +86,13 @@ update: fun
 	@rm -rf tmp
 	@mkdir -p tmp
 	@cp FunKey/board/funkey/sw-description tmp/
-	@tar -C FunKey/output/images -zcf tmp/rootfs.ext2.tar.gz rootfs.ext2
+	@cp FunKey/board/funkey/update_partition tmp/
+	@cd FunKey/output/images && \
+	rm -f rootfs.ext2.gz && \
+	gzip -k rootfs.ext2 &&\
+	mv rootfs.ext2.gz ../../../tmp/
 	@cd tmp && \
-	echo sw-description rootfs.ext2.tar.gz | \
+	echo sw-description rootfs.ext2.gz update_partition | \
 	tr " " "\n" | \
 	cpio -o -H crc --quiet > ../images/FunKey-$(shell cat FunKey/board/funkey/rootfs-overlay/etc/sw-versions | cut -f 2).swu
 	@rm -rf tmp
diff --git a/Recovery/board/funkey/rootfs-overlay/etc/init.d/S01update b/Recovery/board/funkey/rootfs-overlay/etc/init.d/S01update
new file mode 100755
index 0000000..84336a1
--- /dev/null
+++ b/Recovery/board/funkey/rootfs-overlay/etc/init.d/S01update
@@ -0,0 +1,24 @@
+#!/bin/sh
+
+THIS=$(basename $0)
+
+case "$1" in
+    start)
+	for file in /mnt/FunKey-*.swu; do
+	    swupdate -v -i "${file}"
+	    if [ $? -ne 0 ]; then
+	        share start
+	       	mkdir -p /run/network
+	       	/sbin/ifup -a
+	       	exit 1
+	    fi
+	done
+	normal_mode
+	;;
+    stop)
+	;;
+    *)
+	echo "Usage: $0 {start|stop}" >&2
+	exit 1
+	;;
+esac