diff --git a/xbps-src/libexec/xbps-src-doinst-helper.sh.in b/xbps-src/libexec/xbps-src-doinst-helper.sh.in
index 33faeec34f..2423276953 100644
--- a/xbps-src/libexec/xbps-src-doinst-helper.sh.in
+++ b/xbps-src/libexec/xbps-src-doinst-helper.sh.in
@@ -40,28 +40,6 @@ set_defvars
 . $XBPS_SHUTILSDIR/common_funcs.sh
 . $XBPS_SHUTILSDIR/builddep_funcs.sh
 
-strip_files()
-{
-	local lver="$1"
-
-	if [ ! -x /usr/bin/strip ]; then
-		return 0
-	fi
-	[ -n "$nostrip" ] && return 0
-
-	msg_normal "Package '$pkgname ($lver)': stripping files, please wait..."
-	for f in $(find ${DESTDIR} -type f); do
-		case "$(file -biz $f)" in
-		application/x-executable*)
-			/usr/bin/strip $f && \
-				echo "   Stripped executable: $(basename $f)";;
-		application/x-sharedlib*|application/x-archive*)
-			/usr/bin/strip -S $f && \
-				echo "   Stripped library: $(basename $f)";;
-		esac
-	done
-}
-
 install_src_phase()
 {
 	local f i subpkg lver spkgrev saved_wrksrc
@@ -160,11 +138,6 @@ install_src_phase()
 		msg_normal "Package '$pkgname ($lver)': removing empty dirs..."
 		find ${DESTDIR} -depth -type d -exec rmdir 2>/dev/null {} \;
 	fi
-	# Strip bins/libs.
-	if [ -z "$noarch" ]; then
-		strip_files "$lver"
-	fi
-
 	msg_normal "Package '$pkgname ($lver)': installed into destdir."
 
 	if [ "$build_style" != "custom-install" -a -z "$distfiles" ]; then
@@ -216,7 +189,6 @@ install_src_phase()
 #
 # Installs a package via 'make install ...'.
 #
-
 make_install()
 {
 	local lver="$1"
@@ -224,10 +196,7 @@ make_install()
 	if [ -z "$make_install_target" ]; then
 		make_install_target="DESTDIR=${DESTDIR} install"
 	fi
-
 	[ -z "$make_cmd" ] && make_cmd=make
-	. $XBPS_SHUTILSDIR/buildvars_funcs.sh
-
 	#
 	# Install package via make.
 	#
diff --git a/xbps-src/shutils/build_funcs.sh b/xbps-src/shutils/build_funcs.sh
index 687eed96d9..c2f484ac8d 100644
--- a/xbps-src/shutils/build_funcs.sh
+++ b/xbps-src/shutils/build_funcs.sh
@@ -74,9 +74,6 @@ build_src_phase()
 		fi
 	fi
 
-	. $XBPS_SHUTILSDIR/buildvars_funcs.sh
-	set_build_vars
-
 	msg_normal "Package '$pkgname ($lver)': running build phase."
 
 	if [ "$build_style" = "custom-install" ]; then
@@ -109,7 +106,6 @@ build_src_phase()
 	fi
 
 	unset makejobs
-	unset_build_vars
 
 	touch -f $XBPS_BUILD_DONE
 }
diff --git a/xbps-src/shutils/configure_funcs.sh b/xbps-src/shutils/configure_funcs.sh
index 698a779510..01c1c90694 100644
--- a/xbps-src/shutils/configure_funcs.sh
+++ b/xbps-src/shutils/configure_funcs.sh
@@ -84,9 +84,6 @@ configure_src_phase()
 		cd $build_wrksrc || return 1
 	fi
 
-	. $XBPS_SHUTILSDIR/buildvars_funcs.sh
-	set_build_vars
-
 	case "$build_style" in
 	gnu_configure|gnu-configure)
 		#
@@ -141,7 +138,6 @@ configure_src_phase()
 	for f in ${configure_env}; do
 		unset eval ${f%=*}
 	done
-	unset_build_vars
 
 	touch -f $XBPS_CONFIGURE_DONE
 }
diff --git a/xbps-src/shutils/pkgtarget_funcs.sh.in b/xbps-src/shutils/pkgtarget_funcs.sh.in
index 0351d5c7bd..a745014aa1 100644
--- a/xbps-src/shutils/pkgtarget_funcs.sh.in
+++ b/xbps-src/shutils/pkgtarget_funcs.sh.in
@@ -25,6 +25,34 @@
 
 . ${XBPS_SHUTILSDIR}/tmpl_funcs.sh
 
+strip_files()
+{
+	local lver
+
+	if ! command -v strip 2>&1 >/dev/null; then
+		return 0
+	fi
+	[ -n "$nostrip" ] && return 0
+
+	if [ -n "$revision" ]; then
+		lver="${version}_${revision}"
+	else
+		lver="${version}"
+	fi
+
+	msg_normal "Package '$pkgname ($lver)': stripping files, please wait..."
+	for f in $(find ${DESTDIR} -type f); do
+		case "$(file -biz $f)" in
+		application/x-executable*)
+			strip $f && \
+				echo "   Stripped executable: $(basename $f)";;
+		application/x-sharedlib*|application/x-archive*)
+			strip -S $f && \
+				echo "   Stripped library: $(basename $f)";;
+		esac
+	done
+}
+
 #
 # Installs a pkg by reading its build template file.
 #
@@ -42,10 +70,7 @@ install_pkg()
 	fi
 
 	pkg="$curpkgn-$version"
-	if [ -n "$doing_deps" ]; then
-		reset_tmpl_vars
-		setup_tmpl $curpkgn
-	fi
+	[ -n "$doing_deps" ] && setup_tmpl $curpkgn
 
 	#
 	# Refuse to install the same package that is already installed.
@@ -112,7 +137,6 @@ install_pkg()
 	fi
 
 	# Install pkg into destdir.
-	set_build_vars
 	env xbps_machine=${xbps_machine} MASTERDIR=${_MASTERDIR}	\
 		dontrm_builddir=${dontrm_builddir} wrksrc=${wrksrc}	\
 		${fakeroot_cmd} ${fakeroot_cmd_args}			\
@@ -122,7 +146,12 @@ install_pkg()
 		msg_red "xbps-src-doinst-helper failed for '$pkgname'!"
 		return 1
 	fi
-	unset_build_vars
+
+	# Strip binaries/libraries.
+	if [ -z "$noarch" ]; then
+		. $XBPS_SHUTILSDIR/strip_files.sh
+		strip_files
+	fi
 
 	# Always write metadata to package's destdir.
 	. $XBPS_SHUTILSDIR/metadata.sh
diff --git a/xbps-src/shutils/buildvars_funcs.sh b/xbps-src/shutils/strip_files.sh
similarity index 51%
rename from xbps-src/shutils/buildvars_funcs.sh
rename to xbps-src/shutils/strip_files.sh
index bda8015509..06bb225366 100644
--- a/xbps-src/shutils/buildvars_funcs.sh
+++ b/xbps-src/shutils/strip_files.sh
@@ -1,5 +1,5 @@
 #-
-# Copyright (c) 2008-2010 Juan Romero Pardines.
+# Copyright (c) 2010 Juan Romero Pardines.
 # All rights reserved.
 #
 # Redistribution and use in source and binary forms, with or without
@@ -23,47 +23,47 @@
 # THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 #-
 
-#
-# Functions to set some env vars required to build the packages
-# required by the xbps-base-chroot package.
-#
+. ${XBPS_SHUTILSDIR}/tmpl_funcs.sh
 
-set_build_vars()
+strip_files()
 {
-	local LDLIBPATH
+	local subpkg
 
-	if [ -z "$in_chroot" ]; then
-		SAVE_LDLIBPATH=$LD_LIBRARY_PATH
-		LDFLAGS="-L$XBPS_MASTERDIR/usr/lib"
-		if [ -d /usr/lib/libfakeroot ]; then
-			LDLIBPATH="/usr/lib/libfakeroot:$XBPS_MASTERDIR/usr/lib"
-		else
-			LDLIBPATH="$XBPS_MASTERDIR/usr/lib"
-		fi
-		if [ -n "$BUILD_32BIT" ]; then
-			LDLIBPATH="/lib32:/usr/lib32:$LDLIBPATH"
-			LDFLAGS="-L/lib32 -L/usr/lib32 $LDFLAGS"
-			export PATH="/bin:/usr/bin:$PATH"
-			export CC="gcc -m32"
-			export CXX="g++ -m32"
-		fi
-		export CPPFLAGS="-I$XBPS_MASTERDIR/usr/include"
-		export LDFLAGS="$LDFLAGS"
-		export LD_LIBRARY_PATH="$LDLIBPATH"
-	fi
-	export PKG_CONFIG="$XBPS_MASTERDIR/usr/bin/pkg-config"
-	export PKG_CONFIG_LIBDIR="$XBPS_MASTERDIR/usr/lib/pkgconfig"
-	export CFLAGS="$CFLAGS $XBPS_CFLAGS"
-	export CXXFLAGS="$CXXFLAGS $XBPS_CXXFLAGS"
+	for subpkg in ${subpackages}; do
+		. $XBPS_SRCPKGDIR/${sourcepkg}/${subpkg}.template
+		pkgname=${subpkg}
+		set_tmpl_common_vars
+		strip_files_real
+		setup_tmpl ${sourcepkg}
+	done
+
+	strip_files_real
 }
 
-unset_build_vars()
+strip_files_real()
 {
-	if [ -z "$in_chroot" ]; then
-		unset LD_LIBRARY_PATH LDFLAGS
-		export LD_LIBRARY_PATH=$SAVE_LDLIBPATH
-		[ -n "$BUILD_32BIT" ] && unset CC CXX
+	local lver
+
+	if ! command -v strip 2>&1 >/dev/null; then
+		return 0
 	fi
-	unset PKG_CONFIG PKG_CONFIG_LIBDIR
-	unset CPPFLAGS CFLAGS CXXFLAGS
+	[ -n "$nostrip" ] && return 0
+
+	if [ -n "$revision" ]; then
+		lver="${version}_${revision}"
+	else
+		lver="${version}"
+	fi
+
+	msg_normal "Package '$pkgname ($lver)': stripping files, please wait..."
+	for f in $(find ${DESTDIR} -type f); do
+		case "$(file -biz $f)" in
+		application/x-executable*)
+			strip $f && \
+				echo "   Stripped executable: $(basename $f)";;
+		application/x-sharedlib*|application/x-archive*)
+			strip -S $f && \
+				echo "   Stripped library: $(basename $f)";;
+		esac
+	done
 }
diff --git a/xbps-src/shutils/tmpl_funcs.sh.in b/xbps-src/shutils/tmpl_funcs.sh.in
index 4978da437c..8f6b77e7ff 100644
--- a/xbps-src/shutils/tmpl_funcs.sh.in
+++ b/xbps-src/shutils/tmpl_funcs.sh.in
@@ -61,7 +61,6 @@ info_tmpl()
 #
 reset_tmpl_vars()
 {
-	local v=
 	local TMPL_VARS="pkgname distfiles configure_args configure_env \
 			make_build_args make_install_args build_style	\
 			short_desc maintainer long_desc checksum wrksrc	\
@@ -81,14 +80,9 @@ reset_tmpl_vars()
 			pre_remove post_remove post_stow do_build do_install \
 			XBPS_EXTRACT_DONE XBPS_CONFIGURE_DONE \
 			XBPS_BUILD_DONE XBPS_INSTALL_DONE FILESDIR DESTDIR \
-			SRCPKGDESTDIR PATCHESDIR"
-
-	for v in ${TMPL_VARS}; do
-		eval unset "$v"
-	done
-
-	. $XBPS_SHUTILSDIR/buildvars_funcs.sh
-	unset_build_vars
+			SRCPKGDESTDIR PATCHESDIR CFLAGS CXXFLAGS CPPFLAGS \
+			CC CXX LDFLAGS LD_LIBRARY_PATH"
+	eval unset "$TMPL_VARS"
 }
 
 #
@@ -99,6 +93,7 @@ setup_tmpl()
 	local pkg="$1"
 
 	[ -z "$pkg" ] && return 1
+
 	if [ "$pkgname" = "$pkg" ]; then
 		[ -n "$DESTDIR" ] && return 0
 	fi
@@ -111,7 +106,6 @@ setup_tmpl()
 		reset_tmpl_vars
 		. $XBPS_SRCPKGDIR/${pkg}/template
 		prepare_tmpl
-		set_build_vars
 	else
 		msg_error "Cannot find $pkg build template file."
 	fi
@@ -242,14 +236,6 @@ prepare_tmpl()
 	XBPS_POST_INSTALL_DONE="$wrksrc/.xbps_post_install_done"
 
 	set_tmpl_common_vars
-
-	if [ -z "$in_chroot" ]; then
-		export PATH="$XBPS_MASTERDIR/bin:$XBPS_MASTERDIR/sbin"
-		export PATH="$PATH:$XBPS_MASTERDIR/usr/bin"
-		export PATH="$PATH:$XBPS_MASTERDIR/usr/sbin"
-		export PATH="$PATH:/bin:/sbin:/usr/bin:/usr/sbin"
-		export PATH="$PATH:/sbin:@@XBPS_INSTALL_PREFIX@@/sbin"
-	fi
 }
 
 remove_tmpl_wrksrc()
@@ -260,7 +246,7 @@ remove_tmpl_wrksrc()
 		return 1
 	fi
 
-	msg_normal "Cleaning '$pkgname' build directory... "
+	msg_normal "Cleaning '${sourcepkg}' build directory... "
 	rm -rf $lwrksrc
 	return $?
 }
@@ -276,4 +262,24 @@ set_tmpl_common_vars()
 		sourcepkg=${pkgname}
 	fi
 	SRCPKGDESTDIR=${XBPS_DESTDIR}/${sourcepkg}-${version}
+
+	export CFLAGS="$XBPS_CFLAGS"
+	export CXXFLAGS="$XBPS_CXXFLAGS"
+	export CPPFLAGS="-I$XBPS_MASTERDIR/usr/include"
+
+	if [ -z "$in_chroot" ]; then
+		if [ -d /usr/lib/libfakeroot ]; then
+			LDLIBPATH="/usr/lib/libfakeroot:$XBPS_MASTERDIR/usr/lib"
+		else
+			LDLIBPATH="$XBPS_MASTERDIR/usr/lib"
+		fi
+		if [ -n "$BUILD_32BIT" ]; then
+			export CC="gcc -m32"
+			export CXX="g++ -m32"
+			LDLIBPATH="$LDLIBPATH:/lib32:/usr/lib32"
+			LDFLAGS="-L/lib32 -L/usr/lib32"
+		fi
+		export LDFLAGS="$LDFLAGS -L$XBPS_MASTERDIR/usr/lib"
+		export LD_LIBRARY_PATH="$LDLIBPATH"
+	fi
 }
diff --git a/xbps-src/xbps-src.sh.in b/xbps-src/xbps-src.sh.in
index 5f4b88df20..06e77bcea5 100644
--- a/xbps-src/xbps-src.sh.in
+++ b/xbps-src/xbps-src.sh.in
@@ -138,32 +138,40 @@ run_file()
 
 check_config_vars()
 {
-	local val cffound f
+	local val cffound f cfpaths cf="xbps-src.conf"
 
-	if [ -z "$config_file_specified" ]; then
-		config_file_paths="$XBPS_CONFIG_FILE ./etc/xbps-src.conf"
-		for f in $config_file_paths; do
-			[ -f $f ] && XBPS_CONFIG_FILE=$f && \
-				cffound=yes && break
+	if [ -z "$XBPS_CONFIG_FILE" ]; then
+		cfpaths="@@XBPS_INSTALL_PREFIX@@/etc/${cf} ./etc/${cf}"
+		for f in $cfpaths; do
+			if [ -f ${f} ]; then
+				XBPS_CONFIG_FILE=${f}
+				cffound=yes
+				break
+			fi
 		done
 		[ -z "$cffound" ] && msg_error "cannot find a config file"
 	fi
 
 	run_file ${XBPS_CONFIG_FILE}
-	XBPS_CONFIG_FILE=$path_fixed
+	export XBPS_CONFIG_FILE=$path_fixed
 
 	if [ ! -f "$XBPS_CONFIG_FILE" ]; then
 		msg_error "cannot find configuration file: $XBPS_CONFIG_FILE"
 	fi
 
-	eval val="\$XBPS_MASTERDIR"
-	[ -z "$val" ] && msg_error "'XBPS_MASTERDIR' not set in configuration file"
-	if [ ! -d "$val" ]; then
-		mkdir "$val"
-		[ $? -ne 0 ] && msg_error "couldn't create 'XBPS_MASTERDIR' directory"
+	for f in XBPS_DISTRIBUTIONDIR XBPS_MASTERDIR; do
+		eval val="\$${f}"
+		if [ -z "$val" ]; then
+			msg_error "'${f}' not set in configuration file!"
+		fi
+	done
+	if [ ! -d "$XBPS_MASTERDIR" ]; then
+		mkdir -p "$val"
+		if [ $? -ne 0 ]; then
+			msg_error "couldn't create 'XBPS_MASTERDIR' directory"
+		fi
 	fi
-
-	export PATH="@@XBPS_INSTALL_PREFIX@@/sbin:$PATH"
+	export _MASTERDIR="$XBPS_MASTERDIR"
 }
 
 #
@@ -172,7 +180,7 @@ check_config_vars()
 while getopts "Cc:hm:p:" opt; do
 	case $opt in
 		C) export dontrm_builddir=yes;;
-		c) config_file_specified=yes; XBPS_CONFIG_FILE="$OPTARG";;
+		c) XBPS_CONFIG_FILE="$OPTARG";;
 		h) usage && exit 0;;
 		m)
 			_MASTERDIR="$OPTARG"
@@ -205,6 +213,10 @@ fi
 #
 check_reqhost_utils
 
+if [ -n "$in_chroot" ]; then
+	XBPS_CONFIG_FILE="/usr/local/etc/xbps-src.conf"
+fi
+
 #
 # Check configuration vars before anyting else, and set defaults vars.
 #
@@ -217,6 +229,9 @@ set_defvars
 
 . $XBPS_SHUTILSDIR/common_funcs.sh
 
+#
+# Fix up some vars when XBPS_USE_CAPABILITIES is set.
+#
 if [ -n "$XBPS_USE_CAPABILITIES" ]; then
 	chroot_cmd="@@XBPS_INSTALL_LIBEXECDIR@@/xbps-src-capchroot"
 	unset sudo_cmd
@@ -234,7 +249,25 @@ fi
 
 [ -z "$dontrm_builddir" ] && dontrm_builddir=no
 
-# Main switch
+#
+# Sanitize PATH.
+#
+if [ -z "$in_chroot" ]; then
+	# In non chroot case always prefer host tools.
+	MYPATH="/bin:/usr/bin:/sbin:/usr/sbin:$MYPATH"
+	MYPATH="$XBPS_MASTERDIR/bin:$XBPS_MASTERDIR/usr/bin:$MYPATH"
+	MYPATH="$XBPS_MASTERDIR/usr/local/bin:$MYPATH"
+	MYPATH="$XBPS_MASTERDIR/usr/local/sbin:$MYPATH"
+else
+	# In chroot always prefer tools from bootstrap.
+	MYPATH="/tools/bin:/usr/local/sbin:/usr/local/bin"
+	MYPATH="/bin:/sbin:/usr/bin:/usr/sbin:$MYPATH"
+fi
+export PATH="$MYPATH"
+
+#
+# Main switch.
+#
 case "$target" in
 bootstrap)
 	. $XBPS_SHUTILSDIR/tmpl_funcs.sh