diff --git a/config/etc/Makefile.am b/config/etc/Makefile.am
index 81d770921..03193da04 100644
--- a/config/etc/Makefile.am
+++ b/config/etc/Makefile.am
@@ -1,12 +1,8 @@
 configdir = $(sysconfdir)/lxc
 config_DATA = default.conf
-distroconf = @LXC_DISTRO_CONF@
 
 EXTRA_DIST = default.conf.ubuntu default.conf.libvirt default.conf.unknown
 
-default.conf:
-	cp $(distroconf) $@
-
 clean-local:
 	@$(RM) -f default.conf
 
diff --git a/configure.ac b/configure.ac
index 462217e06..152ef5a49 100644
--- a/configure.ac
+++ b/configure.ac
@@ -73,6 +73,8 @@ AC_MSG_RESULT([$with_distro])
 AM_CONDITIONAL([HAVE_DEBIAN], [test x"$with_distro" = "xdebian" -o x"$with_distro" = "xubuntu" -o x"$with_distro" = "xraspbian"])
 AM_CONDITIONAL([DISTRO_UBUNTU], [test "x$with_distro" = "xubuntu"])
 
+AC_CONFIG_LINKS([config/etc/default.conf:config/etc/${distroconf}])
+
 # Check for init system type
 AC_MSG_CHECKING([for init system type])
 AC_ARG_WITH([init-script],
@@ -523,7 +525,6 @@ AS_AC_EXPAND(LXC_DEFAULT_CONFIG, "$sysconfdir/lxc/default.conf")
 AS_AC_EXPAND(DATADIR, "$datadir")
 AS_AC_EXPAND(LOCALSTATEDIR, "$localstatedir")
 AS_AC_EXPAND(DOCDIR, "$docdir")
-AS_AC_EXPAND(LXC_DISTRO_CONF, "$distroconf")
 AS_AC_EXPAND(LXC_GENERATE_DATE, "$(date)")
 AS_AC_EXPAND(LXCPATH, "$with_config_path")
 AS_AC_EXPAND(LXC_GLOBAL_CONF, "$with_global_conf")
@@ -759,6 +760,7 @@ AC_CONFIG_FILES([
 	src/lxc/lxc.functions
 	src/lxc/version.h
 	src/python-lxc/Makefile
+	src/python-lxc/setup.py
 
 	src/lua-lxc/Makefile
 
diff --git a/src/lua-lxc/Makefile.am b/src/lua-lxc/Makefile.am
index 6201adcaf..9b73df133 100644
--- a/src/lua-lxc/Makefile.am
+++ b/src/lua-lxc/Makefile.am
@@ -11,13 +11,13 @@ so_PROGRAMS = core.so
 
 core_so_SOURCES = core.c
 
-AM_CFLAGS=-I$(top_srcdir)/src $(LUA_CFLAGS) -DVERSION=\"$(VERSION)\" -DLXCPATH=\"$(LXCPATH)\"
+AM_CFLAGS=-I$(top_builddir)/src -I$(top_srcdir)/src $(LUA_CFLAGS) -DVERSION=\"$(VERSION)\" -DLXCPATH=\"$(LXCPATH)\"
 
 core_so_CFLAGS = -fPIC -DPIC $(AM_CFLAGS)
 
 core_so_LDFLAGS = \
 	-shared \
-	-L$(top_srcdir)/src/lxc \
+	-L$(top_builddir)/src/lxc \
 	-Wl,-soname,core.so.$(firstword $(subst ., ,$(VERSION)))
 
 core_so_LDADD = -llxc
diff --git a/src/python-lxc/Makefile.am b/src/python-lxc/Makefile.am
index b1c10b54f..4a014df7d 100644
--- a/src/python-lxc/Makefile.am
+++ b/src/python-lxc/Makefile.am
@@ -7,7 +7,7 @@ else
 endif
 
 all:
-	CFLAGS="$(CFLAGS) -I ../../src -L../../src/lxc/" $(PYTHON) setup.py build
+	$(PYTHON) setup.py build
 
 install:
 	if [ "$(DESTDIR)" = "" ]; then \
@@ -21,7 +21,6 @@ clean-local:
 
 endif
 EXTRA_DIST = \
-	setup.py \
 	lxc.c \
 	lxc/__init__.py \
 	examples/api_test.py \
diff --git a/src/python-lxc/setup.py b/src/python-lxc/setup.py.in
similarity index 79%
rename from src/python-lxc/setup.py
rename to src/python-lxc/setup.py.in
index a1061f14e..31e849c16 100644
--- a/src/python-lxc/setup.py
+++ b/src/python-lxc/setup.py.in
@@ -19,15 +19,18 @@
 #
 # You should have received a copy of the GNU Lesser General Public
 # License along with this library; if not, write to the Free Software
-# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301  USA
+# Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301
+# USA
 
 from distutils.core import setup, Extension
 
-module = Extension('_lxc', sources=['lxc.c'], libraries=['lxc'])
+module = Extension('_lxc', sources=['@srcdir@/lxc.c'],
+                   include_dirs=['@top_builddir@/src', '@top_srcdir@/src'],
+                   library_dirs=['@top_builddir@/src/lxc'], libraries=['lxc'])
 
 setup(name='_lxc',
       version='0.1',
       description='LXC',
       packages=['lxc'],
-      package_dir={'lxc': 'lxc'},
+      package_dir={'lxc': '@srcdir@/lxc'},
       ext_modules=[module])