diff --git a/bin/nova-dhcpbridge b/bin/nova-dhcpbridge
index 828aba3d..cecc1c80 100755
--- a/bin/nova-dhcpbridge
+++ b/bin/nova-dhcpbridge
@@ -22,7 +22,6 @@ Handle lease database updates from DHCP servers.
 """
 
 import gettext
-import logging
 import os
 import sys
 
@@ -39,6 +38,7 @@ gettext.install('nova', unicode=1)
 from nova import context
 from nova import db
 from nova import flags
+from nova import log as logging
 from nova import rpc
 from nova import utils
 from nova.network import linux_net
@@ -50,10 +50,15 @@ flags.DECLARE('num_networks', 'nova.network.manager')
 flags.DECLARE('update_dhcp_on_disassociate', 'nova.network.manager')
 
 
+LOG = logging.getLogger('nova-dhcpbridge')
+if FLAGS.verbose:
+    LOG.setLevel(logging.DEBUG)
+
+
 def add_lease(mac, ip_address, _hostname, _interface):
     """Set the IP that was assigned by the DHCP server."""
     if FLAGS.fake_rabbit:
-        logging.debug("leasing ip")
+        LOG.debug("leasing ip")
         network_manager = utils.import_object(FLAGS.network_manager)
         network_manager.lease_fixed_ip(context.get_admin_context(),
                                        mac,
@@ -68,14 +73,14 @@ def add_lease(mac, ip_address, _hostname, _interface):
 
 def old_lease(mac, ip_address, hostname, interface):
     """Update just as add lease."""
-    logging.debug("Adopted old lease or got a change of mac/hostname")
+    LOG.debug("Adopted old lease or got a change of mac/hostname")
     add_lease(mac, ip_address, hostname, interface)
 
 
 def del_lease(mac, ip_address, _hostname, _interface):
     """Called when a lease expires."""
     if FLAGS.fake_rabbit:
-        logging.debug("releasing ip")
+        LOG.debug("releasing ip")
         network_manager = utils.import_object(FLAGS.network_manager)
         network_manager.release_fixed_ip(context.get_admin_context(),
                                          mac,
@@ -100,6 +105,7 @@ def main():
     flagfile = os.environ.get('FLAGFILE', FLAGS.dhcpbridge_flagfile)
     utils.default_flagfile(flagfile)
     argv = FLAGS(sys.argv)
+    logging.basicConfig()
     interface = os.environ.get('DNSMASQ_INTERFACE', 'br0')
     if int(os.environ.get('TESTING', '0')):
         FLAGS.fake_rabbit = True
@@ -117,9 +123,9 @@ def main():
         mac = argv[2]
         ip = argv[3]
         hostname = argv[4]
-        logging.debug("Called %s for mac %s with ip %s and "
-                      "hostname %s on interface %s",
-                      action, mac, ip, hostname, interface)
+        LOG.debug("Called %s for mac %s with ip %s and "
+                  "hostname %s on interface %s",
+                  action, mac, ip, hostname, interface)
         globals()[action + '_lease'](mac, ip, hostname, interface)
     else:
         print init_leases(interface)
diff --git a/bin/nova-instancemonitor b/bin/nova-instancemonitor
index 5dac3ffe..17f573b9 100755
--- a/bin/nova-instancemonitor
+++ b/bin/nova-instancemonitor
@@ -23,7 +23,6 @@
 
 import gettext
 import os
-import logging
 import sys
 from twisted.application import service
 
@@ -37,19 +36,23 @@ if os.path.exists(os.path.join(possible_topdir, 'nova', '__init__.py')):
 
 gettext.install('nova', unicode=1)
 
+from nova import log as logging
 from nova import utils
 from nova import twistd
 from nova.compute import monitor
 
+# TODO(todd): shouldn't this be done with flags?  And what about verbose?
 logging.getLogger('boto').setLevel(logging.WARN)
 
+LOG = logging.getLogger('nova-instancemonitor')
+
 
 if __name__ == '__main__':
     utils.default_flagfile()
     twistd.serve(__file__)
 
 if __name__ == '__builtin__':
-    logging.warn('Starting instance monitor')
+    LOG.warn(_('Starting instance monitor'))
     # pylint: disable-msg=C0103
     monitor = monitor.InstanceMonitor()
 
diff --git a/bin/nova-logspool b/bin/nova-logspool
new file mode 100644
index 00000000..d5aef475
--- /dev/null
+++ b/bin/nova-logspool
@@ -0,0 +1,156 @@
+#!/usr/bin/env python
+
+# Copyright 2010 United States Government as represented by the
+# Administrator of the National Aeronautics and Space Administration.
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License");
+#    you may not use this file except in compliance with the License.
+#    You may obtain a copy of the License at
+#
+#        http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS,
+#    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#    See the License for the specific language governing permissions and
+#    limitations under the License.
+
+"""
+Tools for working with logs generated by nova components
+"""
+
+
+import json
+import os
+import re
+import sys
+
+
+class Request(object):
+    
+    def __init__(self):
+        self.time = ""
+        self.host = ""
+        self.logger = ""
+        self.message = ""
+        self.trace = ""
+        self.env = ""
+        self.request_id = ""
+
+    def add_error_line(self, error_line):
+        self.time = " ".join(error_line.split(" ")[:3])
+        self.host = error_line.split(" ")[3]
+        self.logger = error_line.split("(")[1].split(" ")[0]
+        self.request_id = error_line.split("[")[1].split(" ")[0]
+        error_lines = error_line.split("#012")
+        self.message = self.clean_log_line(error_lines.pop(0))
+        self.trace = "\n".join([self.clean_trace(l) for l in error_lines])
+
+    def add_environment_line(self, env_line):
+        self.env = self.clean_env_line(env_line)
+
+    def clean_log_line(self, line):
+        """Remove log format for time, level, etc: split after context"""
+        return line.split('] ')[-1]
+
+    def clean_env_line(self, line):
+        """Also has an 'Environment: ' string in the message"""
+        return re.sub(r'^Environment: ', '', self.clean_log_line(line))
+
+    def clean_trace(self, line):
+        """trace has a different format, so split on TRACE:"""
+        return line.split('TRACE: ')[-1]
+
+    def to_dict(self):
+        return {'traceback': self.trace, 'message': self.message,
+                'host': self.host, 'env': self.env, 'logger': self.logger,
+                'request_id': self.request_id}
+
+class LogReader(object):
+    def __init__(self, filename):
+        self.filename = filename
+        self._errors = {}
+
+    def process(self, spooldir):
+        with open(self.filename) as f:
+            line = f.readline()
+            while len(line) > 0:
+                parts = line.split(" ")
+                level = (len(parts) < 6) or parts[5]
+                if level == 'ERROR':
+                    self.handle_logged_error(line)
+                elif level == '[-]' and self.last_error:
+                    # twisted stack trace line
+                    clean_line = " ".join(line.split(" ")[6:])
+                    self.last_error.trace = self.last_error.trace + clean_line
+                else:
+                    self.last_error = None
+                line = f.readline()
+        self.update_spool(spooldir)
+
+    def handle_logged_error(self, line):
+        request_id = re.search(r' \[([A-Z0-9\-/]+)', line)
+        if not request_id:
+            raise Exception("Unable to parse request id from %s" % line)
+        request_id = request_id.group(1)
+        data = self._errors.get(request_id, Request())
+        if self.is_env_line(line):
+            data.add_environment_line(line)
+        elif self.is_error_line(line):
+            data.add_error_line(line)
+        else:
+            # possibly error from twsited
+            data.add_error_line(line)
+        self.last_error = data
+        self._errors[request_id] = data
+
+    def is_env_line(self, line):
+        return re.search('Environment: ', line)
+
+    def is_error_line(self, line):
+        return re.search('raised', line)
+
+    def update_spool(self, directory):
+        processed_dir = "%s/processed" % directory
+        self._ensure_dir_exists(processed_dir)
+        for rid, value in self._errors.iteritems():
+            if not self.has_been_processed(processed_dir, rid):
+                with open("%s/%s" % (directory, rid), "w") as spool:
+                    spool.write(json.dumps(value.to_dict()))
+        self.flush_old_processed_spool(processed_dir)
+
+    def _ensure_dir_exists(self, d):
+        mkdir = False
+        try:
+            os.stat(d)
+        except:
+            mkdir = True
+        if mkdir:
+            os.mkdir(d)
+
+    def has_been_processed(self, processed_dir, rid):
+        rv = False
+        try:
+            os.stat("%s/%s" % (processed_dir, rid))
+            rv = True
+        except:
+            pass
+        return rv
+
+    def flush_old_processed_spool(self, processed_dir):
+        keys = self._errors.keys()
+        procs = os.listdir(processed_dir)
+        for p in procs:
+            if p not in keys:
+                # log has rotated and the old error won't be seen again
+                os.unlink("%s/%s" % (processed_dir, p))
+
+if __name__ == '__main__':
+    filename = '/var/log/nova.log'
+    spooldir = '/var/spool/nova'
+    if len(sys.argv) > 1:
+        filename = sys.argv[1]
+    if len(sys.argv) > 2:
+        spooldir = sys.argv[2]
+    LogReader(filename).process(spooldir)
diff --git a/bin/nova-manage b/bin/nova-manage
index 3416c1a5..169ab5f6 100755
--- a/bin/nova-manage
+++ b/bin/nova-manage
@@ -55,8 +55,8 @@
 
 import datetime
 import gettext
-import logging
 import os
+import re
 import sys
 import time
 
@@ -77,6 +77,7 @@ from nova import crypto
 from nova import db
 from nova import exception
 from nova import flags
+from nova import log as logging
 from nova import quota
 from nova import utils
 from nova.auth import manager
@@ -499,6 +500,15 @@ class ServiceCommands(object):
         db.service_update(ctxt, svc['id'], {'disabled': True})
 
 
+class LogCommands(object):
+    def request(self, request_id, logfile='/var/log/nova.log'):
+        """Show all fields in the log for the given request.  Assumes you
+        haven't changed the log format too much.
+        ARGS: request_id [logfile]"""
+        lines = utils.execute("cat %s | grep '\[%s '" % (logfile, request_id))
+        print re.sub('#012', "\n", "\n".join(lines))
+
+
 CATEGORIES = [
     ('user', UserCommands),
     ('project', ProjectCommands),
@@ -507,7 +517,8 @@ CATEGORIES = [
     ('vpn', VpnCommands),
     ('floating', FloatingIpCommands),
     ('network', NetworkCommands),
-    ('service', ServiceCommands)]
+    ('service', ServiceCommands),
+    ('log', LogCommands)]
 
 
 def lazy_match(name, key_value_tuples):
@@ -546,9 +557,7 @@ def main():
     utils.default_flagfile()
     argv = FLAGS(sys.argv)
 
-    if FLAGS.verbose:
-        logging.getLogger().setLevel(logging.DEBUG)
-
+    logging._set_log_levels()
     script_name = argv.pop(0)
     if len(argv) < 1:
         print script_name + " category action [<args>]"
diff --git a/bin/nova-spoolsentry b/bin/nova-spoolsentry
new file mode 100644
index 00000000..ab20268a
--- /dev/null
+++ b/bin/nova-spoolsentry
@@ -0,0 +1,97 @@
+#!/usr/bin/env python
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+# Copyright 2010 United States Government as represented by the
+# Administrator of the National Aeronautics and Space Administration.
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+
+import base64
+import json
+import logging
+import os
+import shutil
+import sys
+import urllib
+import urllib2
+try:
+    import cPickle as pickle
+except:
+    import pickle
+
+
+class SpoolSentry(object):
+    def __init__(self, spool_dir, sentry_url, key=None):
+        self.spool_dir = spool_dir
+        self.sentry_url = sentry_url
+        self.key = key
+
+    def process(self):
+        for fname in os.listdir(self.spool_dir):
+            if fname == "processed":
+                continue
+            try:
+                sourcefile = "%s/%s" % (self.spool_dir, fname)
+                with open(sourcefile) as f:
+                    fdata = f.read()
+                data_from_json = json.loads(fdata)
+                data = self.build_data(data_from_json)
+                self.send_data(data)
+                destfile = "%s/processed/%s" % (self.spool_dir, fname)
+                shutil.move(sourcefile, destfile)
+            except:
+                logging.exception("Unable to upload record %s", fname)
+                raise
+
+    def build_data(self, filejson):
+        env = {'SERVER_NAME': 'unknown', 'SERVER_PORT': '0000',
+               'SCRIPT_NAME': '/unknown/', 'PATH_INFO': 'unknown'}
+        if filejson['env']:
+            env = json.loads(filejson['env'])
+        url = "http://%s:%s%s%s" % (env['SERVER_NAME'], env['SERVER_PORT'],
+                                    env['SCRIPT_NAME'], env['PATH_INFO'])
+        rv = {'logger': filejson['logger'], 'level': logging.ERROR,
+              'server_name': filejson['host'], 'url': url,
+              'message': filejson['message'],
+              'traceback': filejson['traceback']}
+        rv['data'] = {}
+        if filejson['env']:
+            rv['data']['META'] = env
+        if filejson['request_id']:
+            rv['data']['request_id'] = filejson['request_id']
+        return rv
+
+    def send_data(self, data):
+        data = {
+            'data': base64.b64encode(pickle.dumps(data).encode('zlib')),
+            'key': self.key
+        }
+        req = urllib2.Request(self.sentry_url)
+        res = urllib2.urlopen(req, urllib.urlencode(data))
+        if res.getcode() != 200:
+            raise Exception("Bad HTTP code: %s" % res.getcode())
+        txt = res.read()
+
+if __name__ == '__main__':
+    sentryurl = 'http://127.0.0.1/sentry/store/'
+    key = ''
+    spooldir = '/var/spool/nova'
+    if len(sys.argv) > 1:
+        sentryurl = sys.argv[1]
+    if len(sys.argv) > 2:
+        key = sys.argv[2]
+    if len(sys.argv) > 3:
+        spooldir = sys.argv[3]
+    SpoolSentry(spooldir, sentryurl, key).process()
diff --git a/nova/auth/ldapdriver.py b/nova/auth/ldapdriver.py
index 7616ff11..3e0837ba 100644
--- a/nova/auth/ldapdriver.py
+++ b/nova/auth/ldapdriver.py
@@ -24,11 +24,11 @@ other backends by creating another class that exposes the same
 public methods.
 """
 
-import logging
 import sys
 
 from nova import exception
 from nova import flags
+from nova import log as logging
 
 
 FLAGS = flags.FLAGS
@@ -66,6 +66,9 @@ flags.DEFINE_string('ldap_developer',
     'cn=developers,ou=Groups,dc=example,dc=com', 'cn for Developers')
 
 
+LOG = logging.getLogger("nova.ldapdriver")
+
+
 # TODO(vish): make an abstract base class with the same public methods
 #             to define a set interface for AuthDrivers. I'm delaying
 #             creating this now because I'm expecting an auth refactor
@@ -502,7 +505,7 @@ class LdapDriver(object):
         try:
             self.conn.modify_s(group_dn, attr)
         except self.ldap.OBJECT_CLASS_VIOLATION:
-            logging.debug(_("Attempted to remove the last member of a group. "
+            LOG.debug(_("Attempted to remove the last member of a group. "
                             "Deleting the group at %s instead."), group_dn)
             self.__delete_group(group_dn)
 
diff --git a/nova/auth/manager.py b/nova/auth/manager.py
index d3e26695..bfac7fc2 100644
--- a/nova/auth/manager.py
+++ b/nova/auth/manager.py
@@ -20,7 +20,6 @@
 Nova authentication management
 """
 
-import logging
 import os
 import shutil
 import string  # pylint: disable-msg=W0402
@@ -33,6 +32,7 @@ from nova import crypto
 from nova import db
 from nova import exception
 from nova import flags
+from nova import log as logging
 from nova import utils
 from nova.auth import signer
 
@@ -71,6 +71,9 @@ flags.DEFINE_string('auth_driver', 'nova.auth.dbdriver.DbDriver',
                     'Driver that auth manager uses')
 
 
+LOG = logging.getLogger('nova.authmanager')
+
+
 class AuthBase(object):
     """Base class for objects relating to auth
 
@@ -254,43 +257,51 @@ class AuthManager(object):
         # TODO(vish): check for valid timestamp
         (access_key, _sep, project_id) = access.partition(':')
 
-        logging.info(_('Looking up user: %r'), access_key)
+        LOG.debug(_('Looking up user: %r'), access_key)
         user = self.get_user_from_access_key(access_key)
-        logging.info('user: %r', user)
+        LOG.debug('user: %r', user)
         if user == None:
+            LOG.audit(_("Failed authorization for access key %s"), access_key)
             raise exception.NotFound(_('No user found for access key %s')
                                      % access_key)
 
         # NOTE(vish): if we stop using project name as id we need better
         #             logic to find a default project for user
         if project_id == '':
+            LOG.debug(_("Using project name = user name (%s)"), user.name)
             project_id = user.name
 
         project = self.get_project(project_id)
         if project == None:
+            LOG.audit(_("failed authorization: no project named %s (user=%s)"),
+                      project_id, user.name)
             raise exception.NotFound(_('No project called %s could be found')
                                      % project_id)
         if not self.is_admin(user) and not self.is_project_member(user,
                                                                   project):
+            LOG.audit(_("Failed authorization: user %s not admin and not "
+                        "member of project %s"), user.name, project.name)
             raise exception.NotFound(_('User %s is not a member of project %s')
                                      % (user.id, project.id))
         if check_type == 's3':
             sign = signer.Signer(user.secret.encode())
             expected_signature = sign.s3_authorization(headers, verb, path)
-            logging.debug('user.secret: %s', user.secret)
-            logging.debug('expected_signature: %s', expected_signature)
-            logging.debug('signature: %s', signature)
+            LOG.debug('user.secret: %s', user.secret)
+            LOG.debug('expected_signature: %s', expected_signature)
+            LOG.debug('signature: %s', signature)
             if signature != expected_signature:
+                LOG.audit(_("Invalid signature for user %s"), user.name)
                 raise exception.NotAuthorized(_('Signature does not match'))
         elif check_type == 'ec2':
             # NOTE(vish): hmac can't handle unicode, so encode ensures that
             #             secret isn't unicode
             expected_signature = signer.Signer(user.secret.encode()).generate(
                     params, verb, server_string, path)
-            logging.debug('user.secret: %s', user.secret)
-            logging.debug('expected_signature: %s', expected_signature)
-            logging.debug('signature: %s', signature)
+            LOG.debug('user.secret: %s', user.secret)
+            LOG.debug('expected_signature: %s', expected_signature)
+            LOG.debug('signature: %s', signature)
             if signature != expected_signature:
+                LOG.audit(_("Invalid signature for user %s"), user.name)
                 raise exception.NotAuthorized(_('Signature does not match'))
         return (user, project)
 
@@ -398,6 +409,12 @@ class AuthManager(object):
             raise exception.NotFound(_("The %s role can not be found") % role)
         if project is not None and role in FLAGS.global_roles:
             raise exception.NotFound(_("The %s role is global only") % role)
+        if project:
+            LOG.audit(_("Adding role %s to user %s in project %s"), role,
+                      User.safe_id(user), Project.safe_id(project))
+        else:
+            LOG.audit(_("Adding sitewide role %s to user %s"), role,
+                      User.safe_id(user))
         with self.driver() as drv:
             drv.add_role(User.safe_id(user), role, Project.safe_id(project))
 
@@ -418,6 +435,12 @@ class AuthManager(object):
         @type project: Project or project_id
         @param project: Project in which to remove local role.
         """
+        if project:
+            LOG.audit(_("Removing role %s from user %s on project %s"),
+                      role, User.safe_id(user), Project.safe_id(project))
+        else:
+            LOG.audit(_("Removing sitewide role %s from user %s"), role,
+                      User.safe_id(user))
         with self.driver() as drv:
             drv.remove_role(User.safe_id(user), role, Project.safe_id(project))
 
@@ -480,6 +503,8 @@ class AuthManager(object):
                                               description,
                                               member_users)
             if project_dict:
+                LOG.audit(_("Created project %s with manager %s"), name,
+                          manager_user)
                 project = Project(**project_dict)
                 return project
 
@@ -496,6 +521,7 @@ class AuthManager(object):
         @param project: This will be the new description of the project.
 
         """
+        LOG.audit(_("modifying project %s"), Project.safe_id(project))
         if manager_user:
             manager_user = User.safe_id(manager_user)
         with self.driver() as drv:
@@ -505,6 +531,8 @@ class AuthManager(object):
 
     def add_to_project(self, user, project):
         """Add user to project"""
+        LOG.audit(_("Adding user %s to project %s"), User.safe_id(user),
+                  Project.safe_id(project))
         with self.driver() as drv:
             return drv.add_to_project(User.safe_id(user),
                                        Project.safe_id(project))
@@ -523,6 +551,8 @@ class AuthManager(object):
 
     def remove_from_project(self, user, project):
         """Removes a user from a project"""
+        LOG.audit(_("Remove user %s from project %s"), User.safe_id(user),
+                  Project.safe_id(project))
         with self.driver() as drv:
             return drv.remove_from_project(User.safe_id(user),
                                             Project.safe_id(project))
@@ -549,6 +579,7 @@ class AuthManager(object):
 
     def delete_project(self, project):
         """Deletes a project"""
+        LOG.audit(_("Deleting project %s"), Project.safe_id(project))
         with self.driver() as drv:
             drv.delete_project(Project.safe_id(project))
 
@@ -603,13 +634,16 @@ class AuthManager(object):
         with self.driver() as drv:
             user_dict = drv.create_user(name, access, secret, admin)
             if user_dict:
-                return User(**user_dict)
+                rv = User(**user_dict)
+                LOG.audit(_("Created user %s (admin: %r)"), rv.name, rv.admin)
+                return rv
 
     def delete_user(self, user):
         """Deletes a user
 
         Additionally deletes all users key_pairs"""
         uid = User.safe_id(user)
+        LOG.audit(_("Deleting user %s"), uid)
         db.key_pair_destroy_all_by_user(context.get_admin_context(),
                                         uid)
         with self.driver() as drv:
@@ -618,6 +652,12 @@ class AuthManager(object):
     def modify_user(self, user, access_key=None, secret_key=None, admin=None):
         """Modify credentials for a user"""
         uid = User.safe_id(user)
+        if access_key:
+            LOG.audit(_("Access Key change for user %s"), uid)
+        if secret_key:
+            LOG.audit(_("Secret Key change for user %s"), uid)
+        if admin is not None:
+            LOG.audit(_("Admin status set to %r for user %s"), admin, uid)
         with self.driver() as drv:
             drv.modify_user(uid, access_key, secret_key, admin)
 
@@ -666,7 +706,7 @@ class AuthManager(object):
                                   port=vpn_port)
             zippy.writestr(FLAGS.credential_vpn_file, config)
         else:
-            logging.warn(_("No vpn data for project %s"), pid)
+            LOG.warn(_("No vpn data for project %s"), pid)
 
         zippy.writestr(FLAGS.ca_file, crypto.fetch_ca(pid))
         zippy.close()
diff --git a/nova/auth/signer.py b/nova/auth/signer.py
index f7d29f53..744e315d 100644
--- a/nova/auth/signer.py
+++ b/nova/auth/signer.py
@@ -46,7 +46,6 @@ Utility class for parsing signed AMI manifests.
 import base64
 import hashlib
 import hmac
-import logging
 import urllib
 
 # NOTE(vish): for new boto
@@ -54,9 +53,13 @@ import boto
 # NOTE(vish): for old boto
 import boto.utils
 
+from nova import log as logging
 from nova.exception import Error
 
 
+LOG = logging.getLogger('nova.signer')
+
+
 class Signer(object):
     """Hacked up code from boto/connection.py"""
 
@@ -120,7 +123,7 @@ class Signer(object):
 
     def _calc_signature_2(self, params, verb, server_string, path):
         """Generate AWS signature version 2 string."""
-        logging.debug('using _calc_signature_2')
+        LOG.debug('using _calc_signature_2')
         string_to_sign = '%s\n%s\n%s\n' % (verb, server_string, path)
         if self.hmac_256:
             current_hmac = self.hmac_256
@@ -136,13 +139,13 @@ class Signer(object):
             val = urllib.quote(val, safe='-_~')
             pairs.append(urllib.quote(key, safe='') + '=' + val)
         qs = '&'.join(pairs)
-        logging.debug('query string: %s', qs)
+        LOG.debug('query string: %s', qs)
         string_to_sign += qs
-        logging.debug('string_to_sign: %s', string_to_sign)
+        LOG.debug('string_to_sign: %s', string_to_sign)
         current_hmac.update(string_to_sign)
         b64 = base64.b64encode(current_hmac.digest())
-        logging.debug('len(b64)=%d', len(b64))
-        logging.debug('base64 encoded digest: %s', b64)
+        LOG.debug('len(b64)=%d', len(b64))
+        LOG.debug('base64 encoded digest: %s', b64)
         return b64
 
 
diff --git a/nova/fakerabbit.py b/nova/fakerabbit.py
index 79d8b894..7c2d7177 100644
--- a/nova/fakerabbit.py
+++ b/nova/fakerabbit.py
@@ -18,12 +18,16 @@
 
 """Based a bit on the carrot.backeds.queue backend... but a lot better."""
 
-import logging
 import Queue as queue
 
 from carrot.backends import base
 from eventlet import greenthread
 
+from nova import log as logging
+
+
+LOG = logging.getLogger("nova.fakerabbit")
+
 
 EXCHANGES = {}
 QUEUES = {}
@@ -41,12 +45,12 @@ class Exchange(object):
         self._routes = {}
 
     def publish(self, message, routing_key=None):
-        logging.debug(_('(%s) publish (key: %s) %s'),
-                      self.name, routing_key, message)
+        LOG.debug(_('(%s) publish (key: %s) %s'),
+                  self.name, routing_key, message)
         routing_key = routing_key.split('.')[0]
         if routing_key in self._routes:
             for f in self._routes[routing_key]:
-                logging.debug(_('Publishing to route %s'), f)
+                LOG.debug(_('Publishing to route %s'), f)
                 f(message, routing_key=routing_key)
 
     def bind(self, callback, routing_key):
@@ -76,19 +80,19 @@ class Backend(base.BaseBackend):
     def queue_declare(self, queue, **kwargs):
         global QUEUES
         if queue not in QUEUES:
-            logging.debug(_('Declaring queue %s'), queue)
+            LOG.debug(_('Declaring queue %s'), queue)
             QUEUES[queue] = Queue(queue)
 
     def exchange_declare(self, exchange, type, *args, **kwargs):
         global EXCHANGES
         if exchange not in EXCHANGES:
-            logging.debug(_('Declaring exchange %s'), exchange)
+            LOG.debug(_('Declaring exchange %s'), exchange)
             EXCHANGES[exchange] = Exchange(exchange, type)
 
     def queue_bind(self, queue, exchange, routing_key, **kwargs):
         global EXCHANGES
         global QUEUES
-        logging.debug(_('Binding %s to %s with key %s'),
+        LOG.debug(_('Binding %s to %s with key %s'),
                       queue, exchange, routing_key)
         EXCHANGES[exchange].bind(QUEUES[queue].push, routing_key)
 
@@ -113,7 +117,7 @@ class Backend(base.BaseBackend):
                           content_type=content_type,
                           content_encoding=content_encoding)
         message.result = True
-        logging.debug(_('Getting from %s: %s'), queue, message)
+        LOG.debug(_('Getting from %s: %s'), queue, message)
         return message
 
     def prepare_message(self, message_data, delivery_mode,
diff --git a/nova/flags.py b/nova/flags.py
index 4b733492..f5c2d423 100644
--- a/nova/flags.py
+++ b/nova/flags.py
@@ -29,8 +29,6 @@ import sys
 
 import gflags
 
-from nova import utils
-
 
 class FlagValues(gflags.FlagValues):
     """Extension of gflags.FlagValues that allows undefined and runtime flags.
@@ -213,10 +211,10 @@ DEFINE_string('connection_type', 'libvirt', 'libvirt, xenapi or fake')
 DEFINE_string('aws_access_key_id', 'admin', 'AWS Access ID')
 DEFINE_string('aws_secret_access_key', 'admin', 'AWS Access Key')
 DEFINE_integer('glance_port', 9292, 'glance port')
-DEFINE_string('glance_host', utils.get_my_ip(), 'glance host')
+DEFINE_string('glance_host', '127.0.0.1', 'glance host')
 DEFINE_integer('s3_port', 3333, 's3 port')
-DEFINE_string('s3_host', utils.get_my_ip(), 's3 host (for infrastructure)')
-DEFINE_string('s3_dmz', utils.get_my_ip(), 's3 dmz ip (for instances)')
+DEFINE_string('s3_host', '127.0.0.1', 's3 host (for infrastructure)')
+DEFINE_string('s3_dmz', '127.0.0.1', 's3 dmz ip (for instances)')
 DEFINE_string('compute_topic', 'compute', 'the topic compute nodes listen on')
 DEFINE_string('scheduler_topic', 'scheduler',
               'the topic scheduler nodes listen on')
@@ -236,8 +234,8 @@ DEFINE_integer('rabbit_retry_interval', 10, 'rabbit connection retry interval')
 DEFINE_integer('rabbit_max_retries', 12, 'rabbit connection attempts')
 DEFINE_string('control_exchange', 'nova', 'the main exchange to connect to')
 DEFINE_string('ec2_prefix', 'http', 'prefix for ec2')
-DEFINE_string('cc_host', utils.get_my_ip(), 'ip of api server')
-DEFINE_string('cc_dmz', utils.get_my_ip(), 'internal ip of api server')
+DEFINE_string('cc_host', '127.0.0.1', 'ip of api server')
+DEFINE_string('cc_dmz', '127.0.0.1', 'internal ip of api server')
 DEFINE_integer('cc_port', 8773, 'cloud controller port')
 DEFINE_string('ec2_suffix', '/services/Cloud', 'suffix for ec2')
 
diff --git a/nova/log.py b/nova/log.py
new file mode 100644
index 00000000..88a961e1
--- /dev/null
+++ b/nova/log.py
@@ -0,0 +1,261 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+# Copyright 2010 United States Government as represented by the
+# Administrator of the National Aeronautics and Space Administration.
+# All Rights Reserved.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+"""
+Nova logging handler.
+
+This module adds to logging functionality by adding the option to specify
+a context object when calling the various log methods.  If the context object
+is not specified, default formatting is used.
+
+It also allows setting of formatting information through flags.
+"""
+
+
+import cStringIO
+import json
+import logging
+import logging.handlers
+import traceback
+
+from nova import flags
+# TODO(todd): fix after version.py merge
+# from nova import version
+
+
+FLAGS = flags.FLAGS
+
+# TODO(todd): fix after version.py merge
+# '(%(name)s %(nova_version)s): %(levelname)s '
+flags.DEFINE_string('logging_context_format_string',
+                    '(%(name)s): %(levelname)s '
+                    '[%(request_id)s %(user)s '
+                    '%(project)s] %(message)s',
+                    'format string to use for log messages')
+
+# TODO(todd): fix after version.py merge
+# '(%(name)s %(nova_version)s): %(levelname)s [N/A] '
+flags.DEFINE_string('logging_default_format_string',
+                    '(%(name)s): %(levelname)s [N/A] '
+                    '%(message)s',
+                    'format string to use for log messages')
+
+flags.DEFINE_string('logging_debug_format_suffix',
+                    'from %(processName)s (pid=%(process)d) %(funcName)s'
+                    ' %(pathname)s:%(lineno)d',
+                    'data to append to log format when level is DEBUG')
+
+flags.DEFINE_string('logging_exception_prefix',
+                    '(%(name)s): TRACE: ',
+                    'prefix each line of exception output with this format')
+
+flags.DEFINE_list('default_log_levels',
+                  ['amqplib=WARN',
+                   'sqlalchemy=WARN',
+                   'audit=INFO'],
+                  'list of logger=LEVEL pairs')
+
+flags.DEFINE_bool('use_syslog', False, 'output to syslog')
+flags.DEFINE_string('logfile', None, 'output to named file')
+
+
+
+# A list of things we want to replicate from logging.
+# levels
+CRITICAL = logging.CRITICAL
+FATAL = logging.FATAL
+ERROR = logging.ERROR
+WARNING = logging.WARNING
+WARN = logging.WARN
+INFO = logging.INFO
+DEBUG = logging.DEBUG
+NOTSET = logging.NOTSET
+# methods
+getLogger = logging.getLogger
+debug = logging.debug
+info = logging.info
+warning = logging.warning
+warn = logging.warn
+error = logging.error
+exception = logging.exception
+critical = logging.critical
+log = logging.log
+# handlers
+StreamHandler = logging.StreamHandler
+FileHandler = logging.FileHandler
+# logging.SysLogHandler is nicer than logging.logging.handler.SysLogHandler.
+SysLogHandler = logging.handlers.SysLogHandler
+
+
+# our new audit level
+AUDIT = logging.INFO + 1
+logging.addLevelName(AUDIT, 'AUDIT')
+
+
+def _dictify_context(context):
+    if context == None:
+        return None
+    if not isinstance(context, dict) \
+    and getattr(context, 'to_dict', None):
+       context = context.to_dict()
+    return context
+
+
+def basicConfig():
+    logging.basicConfig()
+    for handler in logging.root.handlers:
+        handler.setFormatter(_formatter)
+    if FLAGS.verbose:
+        logging.root.setLevel(logging.DEBUG)
+    if FLAGS.use_syslog:
+        syslog = SysLogHandler(address='/dev/log')
+        syslog.setFormatter(_formatter)
+        logging.root.addHandler(syslog)
+    if FLAGS.logfile:
+        logfile = FileHandler(FLAGS.logfile)
+        logfile.setFormatter(_formatter)
+        logging.root.addHandler(logfile)
+
+
+class NovaLogger(logging.Logger):
+    """
+    NovaLogger manages request context and formatting.
+
+    This becomes the class that is instanciated by logging.getLogger.
+    """
+    def __init__(self, name, level=NOTSET):
+        level_name = self._get_level_from_flags(name, FLAGS)
+        level = globals()[level_name]
+        logging.Logger.__init__(self, name, level)
+
+    def _get_level_from_flags(self, name, FLAGS):
+        # if exactly "nova", or a child logger, honor the verbose flag
+        if (name == "nova" or name.startswith("nova.")) and FLAGS.verbose:
+            return 'DEBUG'
+        for pair in FLAGS.default_log_levels:
+            logger, _sep, level = pair.partition('=')
+            # NOTE(todd): if we set a.b, we want a.b.c to have the same level
+            #             (but not a.bc, so we check the dot)
+            if name == logger:
+                return level
+            if name.startswith(logger) and name[len(logger)] == '.':
+                return level
+        return 'INFO'
+
+    def _log(self, level, msg, args, exc_info=None, extra=None, context=None):
+        """Extract context from any log call"""
+        if not extra:
+            extra = {}
+        if context:
+            extra.update(_dictify_context(context))
+        # TODO(todd): fix after version.py merge
+        #extra.update({"nova_version": version.string_with_vcs()})
+        logging.Logger._log(self, level, msg, args, exc_info, extra)
+
+    def addHandler(self, handler):
+        """Each handler gets our custom formatter"""
+        handler.setFormatter(_formatter)
+        logging.Logger.addHandler(self, handler)
+
+    def audit(self, msg, *args, **kwargs):
+        """Shortcut for our AUDIT level"""
+        if self.isEnabledFor(AUDIT):
+            self._log(AUDIT, msg, args, **kwargs)
+
+    def exception(self, msg, *args, **kwargs):
+        """Logging.exception doesn't handle kwargs, so breaks context"""
+        if not kwargs.get('exc_info'):
+            kwargs['exc_info'] = 1
+        self.error(msg, *args, **kwargs)
+        # NOTE(todd): does this really go here, or in _log ?
+        extra = kwargs.get('extra')
+        if not extra:
+            return
+        env = extra.get('environment')
+        if env:
+            env = env.copy()
+            for k in env.keys():
+                if not isinstance(env[k], str):
+                    env.pop(k)
+            message = "Environment: %s" % json.dumps(env)
+            kwargs.pop('exc_info')
+            self.error(message, **kwargs)
+
+logging.setLoggerClass(NovaLogger)
+
+
+class NovaRootLogger(NovaLogger):
+    pass
+
+if not isinstance(logging.root, NovaRootLogger):
+    logging.root = NovaRootLogger("nova.root", WARNING)
+    NovaLogger.root = logging.root
+    NovaLogger.manager.root = logging.root
+
+
+class NovaFormatter(logging.Formatter):
+    """
+    A nova.context.RequestContext aware formatter configured through flags.
+
+    The flags used to set format strings are: logging_context_foramt_string
+    and logging_default_format_string.  You can also specify
+    logging_debug_format_suffix to append extra formatting if the log level is
+    debug.
+
+    For information about what variables are available for the formatter see:
+    http://docs.python.org/library/logging.html#formatter
+    """
+
+    def format(self, record):
+        """Uses contextstring if request_id is set, otherwise default"""
+        if record.__dict__.get('request_id', None):
+            self._fmt = FLAGS.logging_context_format_string
+        else:
+            self._fmt = FLAGS.logging_default_format_string
+        if record.levelno == logging.DEBUG \
+        and FLAGS.logging_debug_format_suffix:
+            self._fmt += " " + FLAGS.logging_debug_format_suffix
+        # Cache this on the record, Logger will respect our formated copy
+        if record.exc_info:
+            record.exc_text = self.formatException(record.exc_info, record)
+        return logging.Formatter.format(self, record)
+
+    def formatException(self, exc_info, record=None):
+        """Format exception output with FLAGS.logging_exception_prefix"""
+        if not record:
+            return logging.Formatter.formatException(self, exc_info)
+        stringbuffer = cStringIO.StringIO()
+        traceback.print_exception(exc_info[0], exc_info[1], exc_info[2],
+                                  None, stringbuffer)
+        lines = stringbuffer.getvalue().split("\n")
+        stringbuffer.close()
+        formatted_lines = []
+        for line in lines:
+            pl = FLAGS.logging_exception_prefix % record.__dict__
+            fl = "%s%s" % (pl, line)
+            formatted_lines.append(fl)
+        return "\n".join(formatted_lines)
+
+_formatter = NovaFormatter()
+
+
+def audit(msg, *args, **kwargs):
+    """Shortcut for logging to root log with sevrity 'AUDIT'."""
+    if len(logging.root.handlers) == 0:
+        basicConfig()
+    logging.root.log(AUDIT, msg, *args, **kwargs)
diff --git a/nova/rpc.py b/nova/rpc.py
index 84408834..02052485 100644
--- a/nova/rpc.py
+++ b/nova/rpc.py
@@ -22,7 +22,6 @@ No fan-out support yet.
 """
 
 import json
-import logging
 import sys
 import time
 import traceback
@@ -36,13 +35,12 @@ from nova import context
 from nova import exception
 from nova import fakerabbit
 from nova import flags
+from nova import log as logging
 from nova import utils
 
 
 FLAGS = flags.FLAGS
-
-LOG = logging.getLogger('amqplib')
-LOG.setLevel(logging.DEBUG)
+LOG = logging.getLogger('nova.rpc')
 
 
 class Connection(carrot_connection.BrokerConnection):
@@ -91,14 +89,14 @@ class Consumer(messaging.Consumer):
                 self.failed_connection = False
                 break
             except:  # Catching all because carrot sucks
-                logging.exception(_("AMQP server on %s:%d is unreachable."
-                    " Trying again in %d seconds.") % (
-                    FLAGS.rabbit_host,
-                    FLAGS.rabbit_port,
-                    FLAGS.rabbit_retry_interval))
+                LOG.exception(_("AMQP server on %s:%d is unreachable."
+                                " Trying again in %d seconds.") % (
+                                FLAGS.rabbit_host,
+                                FLAGS.rabbit_port,
+                                FLAGS.rabbit_retry_interval))
                 self.failed_connection = True
         if self.failed_connection:
-            logging.exception(_("Unable to connect to AMQP server"
+            LOG.exception(_("Unable to connect to AMQP server"
                 " after %d tries. Shutting down.") % FLAGS.rabbit_max_retries)
             sys.exit(1)
 
@@ -116,14 +114,14 @@ class Consumer(messaging.Consumer):
                 self.declare()
             super(Consumer, self).fetch(no_ack, auto_ack, enable_callbacks)
             if self.failed_connection:
-                logging.error(_("Reconnected to queue"))
+                LOG.error(_("Reconnected to queue"))
                 self.failed_connection = False
         # NOTE(vish): This is catching all errors because we really don't
         #             exceptions to be logged 10 times a second if some
         #             persistent failure occurs.
         except Exception:  # pylint: disable-msg=W0703
             if not self.failed_connection:
-                logging.exception(_("Failed to fetch message from queue"))
+                LOG.exception(_("Failed to fetch message from queue"))
                 self.failed_connection = True
 
     def attach_to_eventlet(self):
@@ -242,8 +240,8 @@ def msg_reply(msg_id, reply=None, failure=None):
     if failure:
         message = str(failure[1])
         tb = traceback.format_exception(*failure)
-        logging.error(_("Returning exception %s to caller"), message)
-        logging.error(tb)
+        LOG.error(_("Returning exception %s to caller"), message)
+        LOG.error(tb)
         failure = (failure[0].__name__, str(failure[1]), tb)
     conn = Connection.instance(True)
     publisher = DirectPublisher(connection=conn, msg_id=msg_id)
diff --git a/nova/tests/objectstore_unittest.py b/nova/tests/objectstore_unittest.py
index ceac17ad..da86e6e1 100644
--- a/nova/tests/objectstore_unittest.py
+++ b/nova/tests/objectstore_unittest.py
@@ -23,7 +23,6 @@ Unittets for S3 objectstore clone.
 import boto
 import glob
 import hashlib
-import logging
 import os
 import shutil
 import tempfile
@@ -63,7 +62,6 @@ class ObjectStoreTestCase(test.TestCase):
         self.flags(buckets_path=os.path.join(OSS_TEMPDIR, 'buckets'),
                    images_path=os.path.join(OSS_TEMPDIR, 'images'),
                    ca_path=os.path.join(os.path.dirname(__file__), 'CA'))
-        logging.getLogger().setLevel(logging.DEBUG)
 
         self.auth_manager = manager.AuthManager()
         self.auth_manager.create_user('user1')
diff --git a/nova/tests/test_access.py b/nova/tests/test_access.py
index 58fdea3b..0929903c 100644
--- a/nova/tests/test_access.py
+++ b/nova/tests/test_access.py
@@ -17,7 +17,6 @@
 #    under the License.
 
 import unittest
-import logging
 import webob
 
 from nova import context
diff --git a/nova/tests/test_auth.py b/nova/tests/test_auth.py
index 15d40bc5..35ffffb6 100644
--- a/nova/tests/test_auth.py
+++ b/nova/tests/test_auth.py
@@ -16,17 +16,18 @@
 #    License for the specific language governing permissions and limitations
 #    under the License.
 
-import logging
 from M2Crypto import X509
 import unittest
 
 from nova import crypto
 from nova import flags
+from nova import log as logging
 from nova import test
 from nova.auth import manager
 from nova.api.ec2 import cloud
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.auth_unittest')
 
 
 class user_generator(object):
@@ -211,12 +212,12 @@ class AuthManagerTestCase(object):
             # NOTE(vish): Setup runs genroot.sh if it hasn't been run
             cloud.CloudController().setup()
             _key, cert_str = crypto.generate_x509_cert(user.id, project.id)
-            logging.debug(cert_str)
+            LOG.debug(cert_str)
 
             full_chain = crypto.fetch_ca(project_id=project.id, chain=True)
             int_cert = crypto.fetch_ca(project_id=project.id, chain=False)
             cloud_cert = crypto.fetch_ca()
-            logging.debug("CA chain:\n\n =====\n%s\n\n=====" % full_chain)
+            LOG.debug("CA chain:\n\n =====\n%s\n\n=====", full_chain)
             signed_cert = X509.load_cert_string(cert_str)
             chain_cert = X509.load_cert_string(full_chain)
             int_cert = X509.load_cert_string(int_cert)
@@ -331,7 +332,7 @@ class AuthManagerLdapTestCase(AuthManagerTestCase, test.TestCase):
         test.TestCase.__init__(self, *args, **kwargs)
         import nova.auth.fakeldap as fakeldap
         if FLAGS.flush_db:
-            logging.info("Flushing datastore")
+            LOG.info("Flushing datastore")
             r = fakeldap.Store.instance()
             r.flushdb()
 
diff --git a/nova/tests/test_cloud.py b/nova/tests/test_cloud.py
index 70d2c44d..e6ad2432 100644
--- a/nova/tests/test_cloud.py
+++ b/nova/tests/test_cloud.py
@@ -18,7 +18,6 @@
 
 from base64 import b64decode
 import json
-import logging
 from M2Crypto import BIO
 from M2Crypto import RSA
 import os
@@ -31,6 +30,7 @@ from nova import context
 from nova import crypto
 from nova import db
 from nova import flags
+from nova import log as logging
 from nova import rpc
 from nova import service
 from nova import test
@@ -41,6 +41,7 @@ from nova.objectstore import image
 
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.cloud')
 
 # Temp dirs for working with image attributes through the cloud controller
 # (stole this from objectstore_unittest.py)
@@ -56,7 +57,6 @@ class CloudTestCase(test.TestCase):
                    images_path=IMAGES_PATH)
 
         self.conn = rpc.Connection.instance()
-        logging.getLogger().setLevel(logging.DEBUG)
 
         # set up our cloud
         self.cloud = cloud.CloudController()
@@ -178,7 +178,7 @@ class CloudTestCase(test.TestCase):
 
     def test_run_instances(self):
         if FLAGS.connection_type == 'fake':
-            logging.debug("Can't test instances without a real virtual env.")
+            LOG.debug(_("Can't test instances without a real virtual env."))
             return
         image_id = FLAGS.default_image
         instance_type = FLAGS.default_instance_type
@@ -190,25 +190,25 @@ class CloudTestCase(test.TestCase):
         # TODO: check for proper response
         instance_id = rv['reservationSet'][0].keys()[0]
         instance = rv['reservationSet'][0][instance_id][0]
-        logging.debug("Need to watch instance %s until it's running..." %
-                      instance['instance_id'])
+        LOG.debug(_("Need to watch instance %s until it's running..."),
+                  instance['instance_id'])
         while True:
             greenthread.sleep(1)
             info = self.cloud._get_instance(instance['instance_id'])
-            logging.debug(info['state'])
+            LOG.debug(info['state'])
             if info['state'] == power_state.RUNNING:
                 break
         self.assert_(rv)
 
-        if connection_type != 'fake':
+        if FLAGS.connection_type != 'fake':
             time.sleep(45)  # Should use boto for polling here
         for reservations in rv['reservationSet']:
             # for res_id in reservations.keys():
-            #     logging.debug(reservations[res_id])
+            #     LOG.debug(reservations[res_id])
             # for instance in reservations[res_id]:
             for instance in reservations[reservations.keys()[0]]:
                 instance_id = instance['instance_id']
-                logging.debug("Terminating instance %s" % instance_id)
+                LOG.debug(_("Terminating instance %s"), instance_id)
                 rv = yield self.compute.terminate_instance(instance_id)
 
     def test_instance_update_state(self):
diff --git a/nova/tests/test_compute.py b/nova/tests/test_compute.py
index 1fb9143f..889ffe99 100644
--- a/nova/tests/test_compute.py
+++ b/nova/tests/test_compute.py
@@ -20,12 +20,12 @@ Tests For Compute
 """
 
 import datetime
-import logging
 
 from nova import context
 from nova import db
 from nova import exception
 from nova import flags
+from nova import log as logging
 from nova import test
 from nova import utils
 from nova.auth import manager
@@ -33,12 +33,12 @@ from nova.compute import api as compute_api
 
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.compute')
 
 
 class ComputeTestCase(test.TestCase):
     """Test case for compute"""
     def setUp(self):
-        logging.getLogger().setLevel(logging.DEBUG)
         super(ComputeTestCase, self).setUp()
         self.flags(connection_type='fake',
                    stub_network=True,
@@ -101,13 +101,13 @@ class ComputeTestCase(test.TestCase):
         self.compute.run_instance(self.context, instance_id)
 
         instances = db.instance_get_all(context.get_admin_context())
-        logging.info(_("Running instances: %s"), instances)
+        LOG.info(_("Running instances: %s"), instances)
         self.assertEqual(len(instances), 1)
 
         self.compute.terminate_instance(self.context, instance_id)
 
         instances = db.instance_get_all(context.get_admin_context())
-        logging.info(_("After terminating instances: %s"), instances)
+        LOG.info(_("After terminating instances: %s"), instances)
         self.assertEqual(len(instances), 0)
 
     def test_run_terminate_timestamps(self):
diff --git a/nova/tests/test_log.py b/nova/tests/test_log.py
new file mode 100644
index 00000000..d8dd3870
--- /dev/null
+++ b/nova/tests/test_log.py
@@ -0,0 +1,107 @@
+import cStringIO
+
+from nova import context
+from nova import log
+from nova import test
+
+
+def _fake_context():
+    return context.RequestContext(1, 1)
+
+
+class RootLoggerTestCase(test.TrialTestCase):
+    def setUp(self):
+        super(RootLoggerTestCase, self).setUp()
+        self.log = log.logging.root
+
+    def tearDown(self):
+        super(RootLoggerTestCase, self).tearDown()
+        log.NovaLogger.manager.loggerDict = {}
+
+    def test_is_nova_instance(self):
+        self.assert_(isinstance(self.log, log.NovaLogger))
+
+    def test_name_is_nova_root(self):
+        self.assertEqual("nova.root", self.log.name)
+
+    def test_handlers_have_nova_formatter(self):
+        formatters = []
+        for h in self.log.handlers:
+            f = h.formatter
+            if isinstance(f, log.NovaFormatter):
+                formatters.append(f)
+        self.assert_(formatters)
+        self.assertEqual(len(formatters), len(self.log.handlers))
+
+    def test_handles_context_kwarg(self):
+        self.log.info("foo", context=_fake_context())
+        self.assert_(True) # didn't raise exception
+
+    def test_module_level_methods_handle_context_arg(self):
+        log.info("foo", context=_fake_context())
+        self.assert_(True) # didn't raise exception
+
+    def test_module_level_audit_handles_context_arg(self):
+        log.audit("foo", context=_fake_context())
+        self.assert_(True) # didn't raise exception
+
+class NovaFormatterTestCase(test.TrialTestCase):
+    def setUp(self):
+        super(NovaFormatterTestCase, self).setUp()
+        self.flags(logging_context_format_string="HAS CONTEXT "\
+                                              "[%(request_id)s]: %(message)s",
+                   logging_default_format_string="NOCTXT: %(message)s",
+                   logging_debug_format_suffix="--DBG")
+        self.log = log.logging.root
+        self.stream = cStringIO.StringIO()
+        handler = log.StreamHandler(self.stream)
+        self.log.addHandler(handler)
+        self.log.setLevel(log.DEBUG)
+
+    def tearDown(self):
+        super(NovaFormatterTestCase, self).tearDown()
+        log.NovaLogger.manager.loggerDict = {}
+
+    def test_uncontextualized_log(self):
+        self.log.info("foo")
+        self.assertEqual("NOCTXT: foo\n", self.stream.getvalue())
+
+    def test_contextualized_log(self):
+        ctxt = _fake_context()
+        self.log.info("bar", context=ctxt)
+        expected = "HAS CONTEXT [%s]: bar\n" % ctxt.request_id
+        self.assertEqual(expected, self.stream.getvalue())
+
+    def test_debugging_log(self):
+        self.log.debug("baz")
+        self.assertEqual("NOCTXT: baz --DBG\n", self.stream.getvalue())
+
+class NovaLoggerTestCase(test.TrialTestCase):
+    def setUp(self):
+        super(NovaLoggerTestCase, self).setUp()
+        self.flags(default_log_levels=["nova-test=AUDIT"], verbose=False)
+        self.log = log.getLogger('nova-test')
+
+    def tearDown(self):
+        super(NovaLoggerTestCase, self).tearDown()
+        log.NovaLogger.manager.loggerDict = {}
+
+    def test_has_level_from_flags(self):
+        self.assertEqual(log.AUDIT, self.log.level)
+
+    def test_child_log_has_level_of_parent_flag(self):
+        l = log.getLogger('nova-test.foo')
+        self.assertEqual(log.AUDIT, l.level)
+
+class VerboseLoggerTestCase(test.TrialTestCase):
+    def setUp(self):
+        super(VerboseLoggerTestCase, self).setUp()
+        self.flags(default_log_levels=["nova.test=AUDIT"], verbose=True)
+        self.log = log.getLogger('nova.test')
+
+    def tearDown(self):
+        super(VerboseLoggerTestCase, self).tearDown()
+        log.NovaLogger.manager.loggerDict = {}
+
+    def test_will_be_verbose_if_named_nova_and_verbose_flag_set(self):
+        self.assertEqual(log.DEBUG, self.log.level)
diff --git a/nova/tests/test_network.py b/nova/tests/test_network.py
index 96473ac7..349e20f8 100644
--- a/nova/tests/test_network.py
+++ b/nova/tests/test_network.py
@@ -20,18 +20,18 @@ Unit Tests for network code
 """
 import IPy
 import os
-import logging
 
 from nova import context
 from nova import db
 from nova import exception
 from nova import flags
-from nova import service
+from nova import log as logging
 from nova import test
 from nova import utils
 from nova.auth import manager
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.network')
 
 
 class NetworkTestCase(test.TestCase):
@@ -45,7 +45,6 @@ class NetworkTestCase(test.TestCase):
                    fake_network=True,
                    network_size=16,
                    num_networks=5)
-        logging.getLogger().setLevel(logging.DEBUG)
         self.manager = manager.AuthManager()
         self.user = self.manager.create_user('netuser', 'netuser', 'netuser')
         self.projects = []
@@ -328,7 +327,7 @@ def lease_ip(private_ip):
            'TESTING': '1',
            'FLAGFILE': FLAGS.dhcpbridge_flagfile}
     (out, err) = utils.execute(cmd, addl_env=env)
-    logging.debug("ISSUE_IP: %s, %s ", out, err)
+    LOG.debug("ISSUE_IP: %s, %s ", out, err)
 
 
 def release_ip(private_ip):
@@ -344,4 +343,4 @@ def release_ip(private_ip):
            'TESTING': '1',
            'FLAGFILE': FLAGS.dhcpbridge_flagfile}
     (out, err) = utils.execute(cmd, addl_env=env)
-    logging.debug("RELEASE_IP: %s, %s ", out, err)
+    LOG.debug("RELEASE_IP: %s, %s ", out, err)
diff --git a/nova/tests/test_rpc.py b/nova/tests/test_rpc.py
index 6ea2edca..0e72b3eb 100644
--- a/nova/tests/test_rpc.py
+++ b/nova/tests/test_rpc.py
@@ -18,15 +18,16 @@
 """
 Unit Tests for remote procedure calls using queue
 """
-import logging
 
 from nova import context
 from nova import flags
+from nova import logging
 from nova import rpc
 from nova import test
 
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.rpc')
 
 
 class RpcTestCase(test.TestCase):
@@ -115,13 +116,13 @@ class TestReceiver(object):
     @staticmethod
     def echo(context, value):
         """Simply returns whatever value is sent in"""
-        logging.debug("Received %s", value)
+        LOG.debug(_("Received %s"), value)
         return value
 
     @staticmethod
     def context(context, value):
         """Returns dictionary version of context"""
-        logging.debug("Received %s", context)
+        LOG.debug(_("Received %s"), context)
         return context.to_dict()
 
     @staticmethod
diff --git a/nova/tests/test_volume.py b/nova/tests/test_volume.py
index b13455fb..b40ca004 100644
--- a/nova/tests/test_volume.py
+++ b/nova/tests/test_volume.py
@@ -19,23 +19,23 @@
 Tests for Volume Code.
 
 """
-import logging
 
 from nova import context
 from nova import exception
 from nova import db
 from nova import flags
+from nova import log as logging
 from nova import test
 from nova import utils
 
 FLAGS = flags.FLAGS
+LOG = logging.getLogger('nova.tests.volume')
 
 
 class VolumeTestCase(test.TestCase):
     """Test Case for volumes."""
 
     def setUp(self):
-        logging.getLogger().setLevel(logging.DEBUG)
         super(VolumeTestCase, self).setUp()
         self.compute = utils.import_object(FLAGS.compute_manager)
         self.flags(connection_type='fake')
@@ -159,7 +159,7 @@ class VolumeTestCase(test.TestCase):
                                                           volume_id)
             self.assert_(iscsi_target not in targets)
             targets.append(iscsi_target)
-            logging.debug("Target %s allocated", iscsi_target)
+            LOG.debug(_("Target %s allocated"), iscsi_target)
         total_slots = FLAGS.iscsi_num_targets
         for _index in xrange(total_slots):
             volume_id = self._create_volume()
diff --git a/nova/twistd.py b/nova/twistd.py
index 29be9c4e..55627199 100644
--- a/nova/twistd.py
+++ b/nova/twistd.py
@@ -22,7 +22,6 @@ manage pid files and support syslogging.
 """
 
 import gflags
-import logging
 import os
 import signal
 import sys
@@ -34,6 +33,7 @@ from twisted.python import runtime
 from twisted.python import usage
 
 from nova import flags
+from nova import log as logging
 
 
 if runtime.platformType == "win32":
@@ -234,22 +234,12 @@ def serve(filename):
     OptionsClass = WrapTwistedOptions(TwistdServerOptions)
     options = OptionsClass()
     argv = options.parseOptions()
-    logging.getLogger('amqplib').setLevel(logging.WARN)
     FLAGS.python = filename
     FLAGS.no_save = True
     if not FLAGS.pidfile:
         FLAGS.pidfile = '%s.pid' % name
     elif FLAGS.pidfile.endswith('twistd.pid'):
         FLAGS.pidfile = FLAGS.pidfile.replace('twistd.pid', '%s.pid' % name)
-    # NOTE(vish): if we're running nodaemon, redirect the log to stdout
-    if FLAGS.nodaemon and not FLAGS.logfile:
-        FLAGS.logfile = "-"
-    if not FLAGS.logfile:
-        FLAGS.logfile = '%s.log' % name
-    elif FLAGS.logfile.endswith('twistd.log'):
-        FLAGS.logfile = FLAGS.logfile.replace('twistd.log', '%s.log' % name)
-    if FLAGS.logdir:
-        FLAGS.logfile = os.path.join(FLAGS.logdir, FLAGS.logfile)
     if not FLAGS.prefix:
         FLAGS.prefix = name
     elif FLAGS.prefix.endswith('twisted'):
@@ -270,19 +260,10 @@ def serve(filename):
         print 'usage: %s [options] [start|stop|restart]' % argv[0]
         sys.exit(1)
 
-    formatter = logging.Formatter(
-        '(%(name)s): %(levelname)s %(message)s')
-    handler = logging.StreamHandler(log.StdioOnnaStick())
-    handler.setFormatter(formatter)
-    logging.getLogger().addHandler(handler)
-
-    if FLAGS.verbose:
-        logging.getLogger().setLevel(logging.DEBUG)
-    else:
-        logging.getLogger().setLevel(logging.WARNING)
-
+    logging.basicConfig()
     logging.debug(_("Full set of FLAGS:"))
     for flag in FLAGS:
         logging.debug("%s : %s" % (flag, FLAGS.get(flag, None)))
 
+    logging.audit(_("Starting %s"), name)
     twistd.runApp(options)