diff --git a/tools/xen/README.md b/tools/xen/README.md
index 8f0c10d..9f39080 100644
--- a/tools/xen/README.md
+++ b/tools/xen/README.md
@@ -34,6 +34,13 @@
      `eth0`.
    - eth3 - Public interface, connected to `PUB_BRIDGE_OR_NET_NAME` defaults to
    `"OpenStack Public Network"`.
+ - After the Ubuntu install process finished, the network configuration is
+ modified to:
+   - eth0 - Management interface, connected to `MGT_BRIDGE_OR_NET_NAME`
+   - eth1 - VM interface, connected to `VM_BRIDGE_OR_NET_NAME`
+   - eth2 - Public interface, connected to `PUB_BRIDGE_OR_NET_NAME`
+   - (eth3) - Optional network interface if quantum is used, to enforce xapi to
+   create the underlying bridge.
  - Start devstack inside the created OpenStack VM
 
 ## Step 1: Install Xenserver
@@ -92,30 +99,12 @@
     MULTI_HOST=1
     # Give extra time for boot
     ACTIVE_TIMEOUT=45
-    # Host Interface, i.e. the interface on the OpenStack vm you want to expose
-    # the services on. The default is eth3, which means the public network, but
-    # as the public network is going to be virtual, we are setting the services
-    # to listen on the management network, which defaults to 'xenbr0', the
-    # XenServer's network.
-    HOST_IP_IFACE=eth2
-
-    # Use DHCP server to configure the Management IP of OpenStack VM
-    MGT_IP="dhcp"
 
     # Settings for netinstalling Ubuntu
     UBUNTU_INST_RELEASE=precise
 
-    # First time Ubuntu network install params, use the DHCP server on the
-    # management network
-    UBUNTU_INST_IFACE="eth2"
-    UBUNTU_INST_IP="dhcp"
-
     # NOTE: the value of FLAT_NETWORK_BRIDGE will automatically be determined
     # by install_os_domU.sh script.
-
-    # Public IP address is aligned with the devstack defaults (see FLOATING_RANGE)
-    PUB_IP=172.24.4.10
-    PUB_NETMASK=255.255.255.0
     EOF
 
 ## Step 4: Run `./install_os_domU.sh` from the `tools/xen` directory
diff --git a/tools/xen/build_xva.sh b/tools/xen/build_xva.sh
index b0fd003..d0cdf17 100755
--- a/tools/xen/build_xva.sh
+++ b/tools/xen/build_xva.sh
@@ -32,6 +32,41 @@
 #
 GUEST_NAME="$1"
 
+function _print_interface_config() {
+    local device_nr
+    local ip_address
+    local netmask
+
+    device_nr="$1"
+    ip_address="$2"
+    netmask="$3"
+
+    local device
+
+    device="eth${device_nr}"
+
+    echo "auto $device"
+    if [ $ip_address == "dhcp" ]; then
+        echo "iface $device inet dhcp"
+    else
+        echo "iface $device inet static"
+        echo "  address $ip_address"
+        echo "  netmask $netmask"
+    fi
+
+    # Turn off tx checksumming for better performance
+    echo "  post-up ethtool -K $device tx off"
+}
+
+function print_interfaces_config() {
+    echo "auto lo"
+    echo "iface lo inet loopback"
+
+    _print_interface_config $PUB_DEV_NR $PUB_IP $PUB_NETMASK
+    _print_interface_config $VM_DEV_NR $VM_IP $VM_NETMASK
+    _print_interface_config $MGT_DEV_NR $MGT_IP $MGT_NETMASK
+}
+
 #
 # Mount the VDI
 #
@@ -81,42 +116,7 @@
 EOF
 
 # Configure the network
-INTERFACES=$STAGING_DIR/etc/network/interfaces
-TEMPLATES_DIR=$TOP_DIR/templates
-cp $TEMPLATES_DIR/interfaces.in  $INTERFACES
-if [ $VM_IP == "dhcp" ]; then
-    echo 'eth1 on dhcp'
-    sed -e "s,iface eth1 inet static,iface eth1 inet dhcp,g" -i $INTERFACES
-    sed -e '/@ETH1_/d' -i $INTERFACES
-else
-    sed -e "s,@ETH1_IP@,$VM_IP,g" -i $INTERFACES
-    sed -e "s,@ETH1_NETMASK@,$VM_NETMASK,g" -i $INTERFACES
-fi
-
-if [ $MGT_IP == "dhcp" ]; then
-    echo 'eth2 on dhcp'
-    sed -e "s,iface eth2 inet static,iface eth2 inet dhcp,g" -i $INTERFACES
-    sed -e '/@ETH2_/d' -i $INTERFACES
-else
-    sed -e "s,@ETH2_IP@,$MGT_IP,g" -i $INTERFACES
-    sed -e "s,@ETH2_NETMASK@,$MGT_NETMASK,g" -i $INTERFACES
-fi
-
-if [ $PUB_IP == "dhcp" ]; then
-    echo 'eth3 on dhcp'
-    sed -e "s,iface eth3 inet static,iface eth3 inet dhcp,g" -i $INTERFACES
-    sed -e '/@ETH3_/d' -i $INTERFACES
-else
-    sed -e "s,@ETH3_IP@,$PUB_IP,g" -i $INTERFACES
-    sed -e "s,@ETH3_NETMASK@,$PUB_NETMASK,g" -i $INTERFACES
-fi
-
-if [ "$ENABLE_GI" == "true" ]; then
-    cat <<EOF >>$INTERFACES
-auto eth0
-iface eth0 inet dhcp
-EOF
-fi
+print_interfaces_config > $STAGING_DIR/etc/network/interfaces
 
 # Gracefully cp only if source file/dir exists
 function cp_it {
diff --git a/tools/xen/functions b/tools/xen/functions
index ebfd483..f22a561 100644
--- a/tools/xen/functions
+++ b/tools/xen/functions
@@ -224,3 +224,19 @@
     pv_args=$(xe vm-param-get param-name=PV-args uuid=$vm)
     xe vm-param-set PV-args="$pv_args $kernel_args" uuid=$vm
 }
+
+function destroy_all_vifs_of()
+{
+    local vm_name_label
+
+    vm_name_label="$1"
+
+    local vm
+
+    vm=$(_vm_uuid "$vm_name_label")
+    IFS=,
+    for vif in $(xe vif-list vm-uuid=$vm --minimal); do
+        xe vif-destroy uuid="$vif"
+    done
+    unset IFS
+}
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index a744869..be4aa16 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -238,6 +238,15 @@
     vm_uuid=$(xe vm-install template="$TNAME" new-name-label="$GUEST_NAME")
 fi
 
+## Setup network cards
+# Wipe out all
+destroy_all_vifs_of "$GUEST_NAME"
+# Tenant network
+add_interface "$GUEST_NAME" "$VM_BRIDGE_OR_NET_NAME" "$VM_DEV_NR"
+# Management network
+add_interface "$GUEST_NAME" "$MGT_BRIDGE_OR_NET_NAME" "$MGT_DEV_NR"
+# Public network
+add_interface "$GUEST_NAME" "$PUB_BRIDGE_OR_NET_NAME" "$PUB_DEV_NR"
 
 #
 # Inject DevStack inside VM disk
@@ -248,7 +257,7 @@
 # is created by XenServer). This is required for Quantum. Also pass that as a
 # kernel parameter for DomU
 if is_service_enabled quantum; then
-    add_interface "$GUEST_NAME" "$XEN_INT_BRIDGE_OR_NET_NAME" "4"
+    add_interface "$GUEST_NAME" "$XEN_INT_BRIDGE_OR_NET_NAME" $XEN_INT_DEV_NR
 
     XEN_INTEGRATION_BRIDGE=$(bridge_for "$XEN_INT_BRIDGE_OR_NET_NAME")
     append_kernel_cmdline \
@@ -275,19 +284,19 @@
 # Get hold of the Management IP of OpenStack VM
 OS_VM_MANAGEMENT_ADDRESS=$MGT_IP
 if [ $OS_VM_MANAGEMENT_ADDRESS == "dhcp" ]; then
-    OS_VM_MANAGEMENT_ADDRESS=$(find_ip_by_name $GUEST_NAME 2)
+    OS_VM_MANAGEMENT_ADDRESS=$(find_ip_by_name $GUEST_NAME $MGT_DEV_NR)
 fi
 
 # Get hold of the Service IP of OpenStack VM
-if [ $HOST_IP_IFACE == "eth2" ]; then
+if [ $HOST_IP_IFACE == "eth${MGT_DEV_NR}" ]; then
     OS_VM_SERVICES_ADDRESS=$MGT_IP
     if [ $MGT_IP == "dhcp" ]; then
-        OS_VM_SERVICES_ADDRESS=$(find_ip_by_name $GUEST_NAME 2)
+        OS_VM_SERVICES_ADDRESS=$(find_ip_by_name $GUEST_NAME $MGT_DEV_NR)
     fi
 else
     OS_VM_SERVICES_ADDRESS=$PUB_IP
     if [ $PUB_IP == "dhcp" ]; then
-        OS_VM_SERVICES_ADDRESS=$(find_ip_by_name $GUEST_NAME 3)
+        OS_VM_SERVICES_ADDRESS=$(find_ip_by_name $GUEST_NAME $PUB_DEV_NR)
     fi
 fi
 
diff --git a/tools/xen/templates/interfaces.in b/tools/xen/templates/interfaces.in
deleted file mode 100644
index 74b41cc..0000000
--- a/tools/xen/templates/interfaces.in
+++ /dev/null
@@ -1,23 +0,0 @@
-auto lo
-iface lo inet loopback
-
-# If eth3 is static, the order should not matter
-# and eth0 will have the default gateway. If not,
-# we probably want the default gateway to be
-# what is on the public interface. Hence changed
-# the order here.
-auto eth3
-iface eth3 inet static
-        address @ETH3_IP@
-        netmask @ETH3_NETMASK@
-
-auto eth1
-iface eth1 inet static
-        address @ETH1_IP@
-        netmask @ETH1_NETMASK@
-post-up ethtool -K eth1 tx off
-
-auto eth2
-iface eth2 inet static
-        address @ETH2_IP@
-        netmask @ETH2_NETMASK@
diff --git a/tools/xen/xenrc b/tools/xen/xenrc
index 0ed3a6a..2bd7be7 100644
--- a/tools/xen/xenrc
+++ b/tools/xen/xenrc
@@ -30,32 +30,35 @@
 # VM Password
 GUEST_PASSWORD=${GUEST_PASSWORD:-secrete}
 
+# Extracted variables for OpenStack VM network device numbers.
+# Make sure, they form a continous sequence starting from 0
+MGT_DEV_NR=0
+VM_DEV_NR=1
+PUB_DEV_NR=2
+XEN_INT_DEV_NR=3
+
 # Host Interface, i.e. the interface on the nova vm you want to expose the
-# services on. Usually eth2 (management network) or eth3 (public network) and
-# not eth0 (private network with XenServer host) or eth1 (VM traffic network)
-HOST_IP_IFACE=${HOST_IP_IFACE:-eth3}
+# services on. Usually the device connected to the management network or the
+# one connected to the public network is used.
+HOST_IP_IFACE=${HOST_IP_IFACE:-"eth${MGT_DEV_NR}"}
 
 #
 # Our nova host's network info
 #
 
 # Management network
-MGT_IP=${MGT_IP:-172.16.100.55}
-MGT_NETMASK=${MGT_NETMASK:-255.255.255.0}
+MGT_IP=${MGT_IP:-dhcp}
+MGT_NETMASK=${MGT_NETMASK:-ignored}
 
 # VM Network
 VM_IP=${VM_IP:-10.255.255.255}
 VM_NETMASK=${VM_NETMASK:-255.255.255.0}
 
 # Public network
-PUB_IP=${PUB_IP:-192.168.1.55}
+# Aligned with stack.sh - see FLOATING_RANGE
+PUB_IP=${PUB_IP:-172.24.4.10}
 PUB_NETMASK=${PUB_NETMASK:-255.255.255.0}
 
-# Decide if you should enable eth0,
-# the guest installer network
-# You need to disable this on xcp-xapi on Ubuntu 12.04
-ENABLE_GI=true
-
 # Ubuntu install settings
 UBUNTU_INST_RELEASE="oneiric"
 UBUNTU_INST_TEMPLATE_NAME="Ubuntu 11.10 (64-bit) for DevStack"
@@ -69,8 +72,11 @@
 UBUNTU_INST_HTTP_PROXY=""
 UBUNTU_INST_LOCALE="en_US"
 UBUNTU_INST_KEYBOARD="us"
-# network configuration for ubuntu netinstall
-UBUNTU_INST_IFACE="eth3"
+# network configuration for ubuntu netinstall.
+# TODO(matelakat): get rid of legacy network interfaces
+# specify "eth2" to use the management network
+# specify "eth3" to use the public network
+UBUNTU_INST_IFACE="eth2"
 UBUNTU_INST_IP="dhcp"
 UBUNTU_INST_NAMESERVERS=""
 UBUNTU_INST_NETMASK=""