diff --git a/Makefile.am b/Makefile.am
index c5c0b579..a389ebe7 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,30 +1,25 @@
 MAINTAINERCLEANFILES	= Makefile.in aclocal.m4 configure depcomp \
 			  config.guess config.sub missing install-sh \
 			  ltmain.sh compile config.h.in config.h.in~ \
 			  autoscan.log configure.scan
 
 AUTOMAKE_OPTIONS	= foreign
 
 ACLOCAL_AMFLAGS		= -I m4
 
-SUBDIRS			= libtap libknet libvty kronosnetd tests
+SUBDIRS			= libtap libknet kronosnetd tests
 
 if BUILD_DOCS
 SUBDIRS			+= docs
 endif
 
-AM_CFLAGS		= \
-			  -I$(top_srcdir)/libtap \
-			  -I$(top_srcdir)/libknet \
-			  -I$(top_srcdir)/libvty
-
 dist_doc_DATA		= \
 			  COPYING.applications \
 			  COPYING.libraries \
 			  COPYRIGHT \
 			  README.licence \
 			  README \
 			  TODO
 
 maintainer-clean-local:
 	rm -rf m4
diff --git a/configure.ac b/configure.ac
index 783f3dc6..e6a5f32d 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,292 +1,290 @@
 #                                               -*- Autoconf -*-
 # Process this file with autoconf to produce a configure script.
 
 AC_PREREQ([2.63])
 AC_INIT([kronosnetd], [0.1], [fabbione@kronosnet.org])
 AM_INIT_AUTOMAKE([1.11.1 dist-bzip2 dist-xz color-tests -Wno-portability])
 LT_PREREQ([2.2.6])
 LT_INIT
 
 AC_CONFIG_MACRO_DIR([m4])
 AC_CONFIG_SRCDIR([kronosnetd/main.c])
 AC_CONFIG_HEADERS([config.h])
 
 AC_CANONICAL_HOST
 AC_PROG_LIBTOOL
 
 AC_LANG([C])
 
 if test "$prefix" = "NONE"; then
 	prefix="/usr"
 	if test "$localstatedir" = "\${prefix}/var"; then
 		localstatedir="/var"
 	fi
 	if test "$sysconfdir" = "\${prefix}/etc"; then
 		sysconfdir="/etc"
 	fi
 fi
 
 # Checks for programs.
 if ! ${MAKE-make} --version /cannot/make/this >/dev/null 2>&1; then
 	AC_MSG_ERROR(["you don't seem to have GNU make; it is required"])
 fi
 
 AC_PROG_CC
 AM_PROG_CC_C_O
 AC_PROG_LN_S
 AC_PROG_INSTALL
 AC_PROG_MAKE_SET
 AC_PROG_CXX
 AC_PROG_RANLIB
 AC_CHECK_PROGS([PUBLICAN], [publican], [:])
 AC_CHECK_PROGS([PKGCONFIG], [pkg-config])
 
 ## local helper functions
 # this function checks if CC support options passed as
 # args. Global CFLAGS are ignored during this test.
 cc_supports_flag() {
 	saveCPPFLAGS="$CPPFLAGS"
 	CPPFLAGS="$@"
 	AC_MSG_CHECKING([whether $CC supports "$@"])
 	AC_PREPROC_IFELSE([AC_LANG_PROGRAM([])],
 			  [RC=0; AC_MSG_RESULT([yes])],
 			  [RC=1; AC_MSG_RESULT([no])])
 	CPPFLAGS="$saveCPPFLAGS"
 	return $RC
 }
 
 # helper macro to check libs without adding them to LIBS
 check_lib_no_libs() {
 	lib_no_libs_arg1=$1
 	shift
 	lib_no_libs_arg2=$1
 	shift
 	lib_no_libs_args=$@
 	AC_CHECK_LIB([$lib_no_libs_arg1],
 		     [$lib_no_libs_arg2],,,
 		     [$lib_no_libs_args])
         LIBS=$ac_check_lib_save_LIBS
 }
 
 # Checks for C features
 AC_C_INLINE
 
 # Checks for libraries.
 AC_CHECK_LIB([pthread], [pthread_create])
 AC_CHECK_LIB([rt], [clock_gettime])
 
 PKG_CHECK_MODULES([nss],[nss])
 PKG_CHECK_MODULES([LIBQB], [libqb])
 
 AC_CHECK_LIB([qb], [qb_log_thread_priority_set],
 	     [have_qb_log_thread_priority_set="yes"],
              [have_qb_log_thread_priority_set="no"])
 
 if test "x${have_qb_log_thread_priority_set}" = xyes; then
 	AC_DEFINE_UNQUOTED([HAVE_QB_LOG_THREAD_PRIORITY_SET], 1, [have qb_log_thread_priority_set])
 fi
 
 # Checks for header files.
 AC_CHECK_HEADERS([fcntl.h])
 AC_CHECK_HEADERS([stdlib.h])
 AC_CHECK_HEADERS([string.h])
 AC_CHECK_HEADERS([sys/ioctl.h])
 AC_CHECK_HEADERS([syslog.h])
 AC_CHECK_HEADERS([unistd.h])
 AC_CHECK_HEADERS([netinet/in.h])
 AC_CHECK_HEADERS([sys/socket.h])
 AC_CHECK_HEADERS([arpa/inet.h])
 AC_CHECK_HEADERS([netdb.h])
 AC_CHECK_HEADERS([limits.h])
 
 # Checks for typedefs, structures, and compiler characteristics.
 AC_TYPE_SIZE_T
 AC_TYPE_PID_T
 AC_TYPE_SSIZE_T
 AC_TYPE_UINT8_T
 AC_TYPE_UINT16_T
 AC_TYPE_UINT32_T
 
 # Checks for library functions.
 AC_FUNC_ALLOCA
 AC_FUNC_FORK
 AC_FUNC_MALLOC
 AC_FUNC_REALLOC
 AC_CHECK_FUNCS([memset])
 AC_CHECK_FUNCS([strdup])
 AC_CHECK_FUNCS([strerror])
 AC_CHECK_FUNCS([dup2])
 AC_CHECK_FUNCS([select])
 AC_CHECK_FUNCS([socket])
 AC_CHECK_FUNCS([inet_ntoa])
 AC_CHECK_FUNCS([memmove])
 AC_CHECK_FUNCS([strchr])
 AC_CHECK_FUNCS([atexit])
 AC_CHECK_FUNCS([ftruncate])
 AC_CHECK_FUNCS([strrchr])
 AC_CHECK_FUNCS([strstr])
 AC_CHECK_FUNCS([clock_gettime])
 
 # PAM check
 AC_CHECK_HEADERS([security/pam_appl.h],
 		 [AC_CHECK_LIB([pam], [pam_start])],
 		 [AC_MSG_ERROR([Unable to find LinuxPAM devel files])])
 
 AC_CHECK_HEADERS([security/pam_misc.h],
 		 [AC_CHECK_LIB([pam_misc], [misc_conv])],
 		 [AC_MSG_ERROR([Unable to find LinuxPAM MISC devel files])])
 
 # local options
 AC_ARG_ENABLE([debug],
 	[  --enable-debug          enable debug build. ],
 	[ default="no" ])
 
 AC_ARG_ENABLE([publicandocs],
 	[  --enable-publicandocs   enable docs build. ],
 	[ default="no" ])
 
 AC_ARG_WITH([syslogfacility],
 	[  --with-syslogfacility=FACILITY
 			  default syslog facility. ],
 	[ SYSLOGFACILITY="$withval" ],
 	[ SYSLOGFACILITY="LOG_DAEMON" ])
 
 AC_ARG_WITH([sysloglevel],
 	[  --with-sysloglevel=LEVEL
 			  default syslog level. ],
 	[ SYSLOGLEVEL="$withval" ],
 	[ SYSLOGLEVEL="LOG_INFO" ])
 
 AC_ARG_WITH([defaultadmgroup],
 	[  --with-defaultadmgroup=GROUP
 			  define PAM group. Users part of this group will be
 			  allowed to configure kronosnet. Others will only
 			  receive read-only rights. ],
 	[ DEFAULTADMGROUP="$withval" ],
 	[ DEFAULTADMGROUP="kronosnetadm" ])
 
 ## random vars
 LOGDIR=${localstatedir}/log/
 RUNDIR=${localstatedir}/run/
 DEFAULT_CONFIG_DIR=${sysconfdir}/kronosnet
 
 ## do subst
 
 AM_CONDITIONAL([BUILD_DOCS], [test "x${enable_publicandocs}" = xyes])
 
 AC_SUBST([DEFAULT_CONFIG_DIR])
 AC_DEFINE_UNQUOTED([DEFAULT_CONFIG_DIR],
 		   ["$(eval echo ${DEFAULT_CONFIG_DIR})"],
 		   [Default config directory])
 
 AC_DEFINE_UNQUOTED([DEFAULT_CONFIG_FILE],
 		   ["$(eval echo ${DEFAULT_CONFIG_DIR}/kronosnetd.conf)"],
 		   [Default config file])
 
 AC_DEFINE_UNQUOTED([LOGDIR],
 		   ["$(eval echo ${LOGDIR})"],
 		   [Default logging directory])
 
 AC_DEFINE_UNQUOTED([DEFAULT_LOG_FILE],
 		   ["$(eval echo ${LOGDIR}/kronosnetd.log)"],
 		   [Default log file])
 
 AC_DEFINE_UNQUOTED([RUNDIR],
 		   ["$(eval echo ${RUNDIR})"],
 		   [Default run directory])
 
 AC_DEFINE_UNQUOTED([SYSLOGFACILITY],
 		   [$(eval echo ${SYSLOGFACILITY})],
 		   [Default syslog facility])
 
 AC_DEFINE_UNQUOTED([SYSLOGLEVEL],
 		   [$(eval echo ${SYSLOGLEVEL})],
 		   [Default syslog level])
 
 AC_DEFINE_UNQUOTED([DEFAULTADMGROUP],
 		   ["$(eval echo ${DEFAULTADMGROUP})"],
 		   [Default admin group])
 
 ## *FLAGS handling
 ENV_CFLAGS="$CFLAGS"
 ENV_CPPFLAGS="$CPPFLAGS"
 ENV_LDFLAGS="$LDFLAGS"
 
 # debug build stuff
 if test "x${enable_debug}" = xyes; then
 	AC_DEFINE_UNQUOTED([DEBUG], [1], [Compiling Debugging code])
 	OPT_CFLAGS="-O0"
 else
 	OPT_CFLAGS="-O3"
 fi
 
 # gdb flags
 if test "x${GCC}" = xyes; then
 	GDB_FLAGS="-ggdb3"
 else
 	GDB_FLAGS="-g"
 fi
 
 # extra warnings
 EXTRA_WARNINGS=""
 
 WARNLIST="
 	all
 	shadow
 	missing-prototypes
 	missing-declarations
 	strict-prototypes
 	declaration-after-statement
 	pointer-arith
 	write-strings
 	cast-align
 	bad-function-cast
 	missing-format-attribute
 	format=2
 	format-security
 	format-nonliteral
 	no-long-long
 	unsigned-char
 	gnu89-inline
 	no-strict-aliasing
 	error
 	address
 	cpp
 	enum-compare
 	overflow
 	parentheses
 	sequence-point
 	switch
 	uninitialized
 	unused-but-set-variable
 	unused-function
 	unused-result
 	unused-value
 	unused-variable
 	"
 
 for j in $WARNLIST; do
 	if cc_supports_flag -W$j; then
 		EXTRA_WARNINGS="$EXTRA_WARNINGS -W$j";
 	fi
 done
 
 CFLAGS="$ENV_CFLAGS $lt_prog_compiler_pic $OPT_CFLAGS $GDB_FLAGS \
 	$EXTRA_WARNINGS $WERROR_CFLAGS"
 CPPFLAGS="$ENV_CPPFLAGS"
 LDFLAGS="$ENV_LDFLAGS $lt_prog_compiler_pic"
 
 AC_CONFIG_FILES([
 		Makefile
 		libtap/Makefile
 		libtap/libtap.pc
 		kronosnetd/Makefile
 		libknet/Makefile
 		libknet/libknet.pc
-		libvty/Makefile
-		libvty/libvty.pc
 		docs/Makefile
 		tests/Makefile
 		])
 
 AC_OUTPUT
diff --git a/kronosnetd/Makefile.am b/kronosnetd/Makefile.am
index b91e1bbd..6fed5491 100644
--- a/kronosnetd/Makefile.am
+++ b/kronosnetd/Makefile.am
@@ -1,25 +1,35 @@
 MAINTAINERCLEANFILES	= Makefile.in
 
 noinst_HEADERS		= \
 			  cfg.h \
-			  logging.h
+			  logging.h \
+			  netutils.h \
+			  vty.h \
+			  vty_auth.h \
+			  vty_cli.h \
+			  vty_cli_cmds.h \
+			  vty_utils.h 
 
 sbin_PROGRAMS		= kronosnetd
 
 kronosnetd_SOURCES	= \
 			  cfg.c \
 			  main.c \
-			  logging.c
+			  logging.c \
+			  netutils.c \
+			  vty.c \
+			  vty_auth.c \
+			  vty_cli.c \
+			  vty_cli_cmds.c \
+			  vty_utils.c
 
 kronosnetd_CPPFLAGS	= \
 			  -I$(top_srcdir)/libtap \
-			  -I$(top_srcdir)/libknet \
-			  -I$(top_srcdir)/libvty
+			  -I$(top_srcdir)/libknet
 
 kronosnetd_CFLAGS	= $(LIBQB_CFLAGS)
 
 kronosnetd_LDADD	= \
-			  $(top_builddir)/libvty/libvty.a \
 			  $(top_builddir)/libknet/libknet.a \
 			  $(top_builddir)/libtap/libtap.la \
 			  $(LIBQB_LIBS)
diff --git a/libvty/netutils.c b/kronosnetd/netutils.c
similarity index 100%
rename from libvty/netutils.c
rename to kronosnetd/netutils.c
diff --git a/libvty/netutils.h b/kronosnetd/netutils.h
similarity index 100%
rename from libvty/netutils.h
rename to kronosnetd/netutils.h
diff --git a/libvty/vty.c b/kronosnetd/vty.c
similarity index 100%
rename from libvty/vty.c
rename to kronosnetd/vty.c
diff --git a/libvty/vty.h b/kronosnetd/vty.h
similarity index 100%
rename from libvty/vty.h
rename to kronosnetd/vty.h
diff --git a/libvty/vty_auth.c b/kronosnetd/vty_auth.c
similarity index 100%
rename from libvty/vty_auth.c
rename to kronosnetd/vty_auth.c
diff --git a/libvty/vty_auth.h b/kronosnetd/vty_auth.h
similarity index 100%
rename from libvty/vty_auth.h
rename to kronosnetd/vty_auth.h
diff --git a/libvty/vty_cli.c b/kronosnetd/vty_cli.c
similarity index 100%
rename from libvty/vty_cli.c
rename to kronosnetd/vty_cli.c
diff --git a/libvty/vty_cli.h b/kronosnetd/vty_cli.h
similarity index 100%
rename from libvty/vty_cli.h
rename to kronosnetd/vty_cli.h
diff --git a/libvty/vty_cli_cmds.c b/kronosnetd/vty_cli_cmds.c
similarity index 100%
rename from libvty/vty_cli_cmds.c
rename to kronosnetd/vty_cli_cmds.c
diff --git a/libvty/vty_cli_cmds.h b/kronosnetd/vty_cli_cmds.h
similarity index 100%
rename from libvty/vty_cli_cmds.h
rename to kronosnetd/vty_cli_cmds.h
diff --git a/libvty/vty_test.c b/kronosnetd/vty_test.c
similarity index 100%
rename from libvty/vty_test.c
rename to kronosnetd/vty_test.c
diff --git a/libvty/vty_utils.c b/kronosnetd/vty_utils.c
similarity index 100%
rename from libvty/vty_utils.c
rename to kronosnetd/vty_utils.c
diff --git a/libvty/vty_utils.h b/kronosnetd/vty_utils.h
similarity index 100%
rename from libvty/vty_utils.h
rename to kronosnetd/vty_utils.h
diff --git a/libvty/Makefile.am b/libvty/Makefile.am
deleted file mode 100644
index 6dfc8b97..00000000
--- a/libvty/Makefile.am
+++ /dev/null
@@ -1,24 +0,0 @@
-MAINTAINERCLEANFILES	= Makefile.in
-
-AM_CFLAGS		= \
-			  -I$(top_srcdir)/libtap \
-			  -I$(top_srcdir)/libknet \
-			  -I$(top_srcdir)/kronosnetd
-
-noinst_HEADERS		= \
-			  vty.h \
-			  vty_auth.h \
-			  vty_cli.h \
-			  vty_cli_cmds.h \
-			  vty_utils.h \
-			  netutils.h
-
-noinst_LIBRARIES	= libvty.a
-
-libvty_a_SOURCES	= \
-			  vty.c \
-			  vty_auth.c \
-			  vty_cli.c \
-			  vty_cli_cmds.c \
-			  vty_utils.c \
-			  netutils.c
diff --git a/libvty/libvty.pc.in b/libvty/libvty.pc.in
deleted file mode 100644
index c4b69400..00000000
--- a/libvty/libvty.pc.in
+++ /dev/null
@@ -1,11 +0,0 @@
-prefix=@prefix@
-exec_prefix=${prefix}
-libdir=@libdir@
-includedir=${prefix}/include
-
-Name: libvty
-Version: @VERSION@
-Description: vty library
-Requires:
-Libs: -L${libdir} -lpthread
-Cflags: -I${includedir}
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 3edd6afc..23f9a910 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -1,46 +1,46 @@
 MAINTAINERCLEANFILES	= Makefile.in
 
 VALGRIND = valgrind -q --error-exitcode=127 --track-fds=yes --leak-check=full
 HELGRIND = valgrind -v --tool=helgrind
 
 check-valgrind: $(check_PROGRAMS)
 	$(MAKE) TESTS_ENVIRONMENT="$(VALGRIND)" check
 
 check-helgrind: $(check_PROGRAMS)
 	$(MAKE) TESTS_ENVIRONMENT="$(HELGRIND)" check
 
 noinst_PROGRAMS = \
 		  ping_test \
 		  khandle_test \
 		  lookup_bench \
 		  $(check_PROGRAMS)
 
 check_PROGRAMS = \
 		  netutils_test \
 		  listener_test \
 		  timediff_test
 
 TESTS = $(check_PROGRAMS)
 
 AM_CPPFLAGS		= -DTEST \
-			  -I$(srcdir)/../ \
 			  -I$(srcdir)/../libtap/ \
 			  -I$(srcdir)/../libknet/ \
-			  -I$(srcdir)/../libvty/
+			  -I$(srcdir)/../kronosnetd/
 
 AM_LDFLAGS		= \
 			  $(top_builddir)/libtap/libtap.la \
-			  $(top_builddir)/libknet/libknet.a \
-			  $(top_builddir)/libvty/libvty.a
+			  $(top_builddir)/libknet/libknet.a 
 
 ping_test_SOURCES	= ping_test.c
 
 khandle_test_SOURCES	= khandle_test.c
 
-lookup_bench_SOURCES	= lookup_bench.c
+lookup_bench_SOURCES	= lookup_bench.c \
+			  $(srcdir)/../kronosnetd/netutils.c
 
 listener_test_SOURCES	= listener_test.c
 
-netutils_test_SOURCES	= netutils_test.c
+netutils_test_SOURCES	= netutils_test.c \
+			  $(srcdir)/../kronosnetd/netutils.c
 
 timediff_test_SOURCES	= timediff_test.c