diff --git a/xos/observers/vcpe/steps/ansible_test/inventory.txt b/xos/observers/vcpe/steps/ansible_test/inventory.txt
new file mode 100644
index 0000000..d5ff47e
--- /dev/null
+++ b/xos/observers/vcpe/steps/ansible_test/inventory.txt
@@ -0,0 +1,7 @@
+[onlab_hpc-355]
+node67.washington.vicci.org instance_id=instance-00000045 sliver_name=onlab_hpc-355
+
+[onlab_test405-372]
+node67.washington.vicci.org instance_id=instance-0000004c sliver_name=onlab_test405-372
+
+
diff --git a/xos/observers/vcpe/steps/ansible_test/test.sh b/xos/observers/vcpe/steps/ansible_test/test.sh
new file mode 100755
index 0000000..157ba9c
--- /dev/null
+++ b/xos/observers/vcpe/steps/ansible_test/test.sh
@@ -0,0 +1,2 @@
+#! /bin/bash
+ansible-playbook --private-key /home/smbaker/.ssh/id_rsa -i ./inventory.txt test.yaml
diff --git a/xos/observers/vcpe/steps/ansible_test/test.yaml b/xos/observers/vcpe/steps/ansible_test/test.yaml
new file mode 100644
index 0000000..6a29d56
--- /dev/null
+++ b/xos/observers/vcpe/steps/ansible_test/test.yaml
@@ -0,0 +1,12 @@
+---
+- hosts: onlab_test405-372
+  connection: xos
+  user: ubuntu
+  vars:
+     foo: 25
+#  instance_name: instance-00000045
+#  slice_name: onlab_hpc-355
+
+  tasks:
+    - name: foobar
+      shell: echo foo > /tmp/foobar
diff --git a/xos/observers/vcpe/steps/ansible_test/xos.py b/xos/observers/vcpe/steps/ansible_test/xos.py
new file mode 100755
index 0000000..3ef72ab
--- /dev/null
+++ b/xos/observers/vcpe/steps/ansible_test/xos.py
@@ -0,0 +1,444 @@
+# (c) 2012, Michael DeHaan <michael.dehaan@gmail.com>
+#
+# This file is part of Ansible
+#
+# Ansible is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# Ansible is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with Ansible.  If not, see <http://www.gnu.org/licenses/>.
+#
+
+import os
+import re
+import subprocess
+import shlex
+import pipes
+import random
+import select
+import fcntl
+import hmac
+import pwd
+import gettext
+import pty
+from hashlib import sha1
+import ansible.constants as C
+from ansible.callbacks import vvv
+from ansible import errors
+from ansible import utils
+
+class Connection(object):
+    ''' ssh based connections '''
+
+    def __init__(self, runner, host, port, user, password, private_key_file, *args, **kwargs):
+        self.runner = runner
+        self.host = host
+        self.ipv6 = ':' in self.host
+        self.port = port
+        self.user = str(user)
+        self.password = password
+        self.private_key_file = private_key_file
+        self.HASHED_KEY_MAGIC = "|1|"
+        self.has_pipelining = True
+        #self.instance_id = "instance-00000045" # C.get_config(C.p, "xos", "instance_id", "INSTANCE_ID", None)
+        #self.sliver_name = "onlab_hpc-355" # C.get_config(C.p, "xos", "sliver_name", "SLIVER_NAME", None)
+
+        inject={}
+        inject= utils.combine_vars(inject, self.runner.inventory.get_variables(self.host))
+
+        self.instance_id = inject["instance_id"]
+        self.sliver_name = inject["sliver_name"]
+
+        fcntl.lockf(self.runner.process_lockfile, fcntl.LOCK_EX)
+        self.cp_dir = utils.prepare_writeable_dir('$HOME/.ansible/cp',mode=0700)
+        fcntl.lockf(self.runner.process_lockfile, fcntl.LOCK_UN)
+
+    def connect(self):
+        ''' connect to the remote host '''
+
+        vvv("ESTABLISH CONNECTION FOR USER: %s" % self.user, host=self.host)
+
+        self.common_args = []
+        extra_args = C.ANSIBLE_SSH_ARGS
+        if extra_args is not None:
+            # make sure there is no empty string added as this can produce weird errors
+            self.common_args += [x.strip() for x in shlex.split(extra_args) if x.strip()]
+        else:
+            self.common_args += ["-o", "ControlMaster=auto",
+                                 "-o", "ControlPersist=60s",
+                                 "-o", "ControlPath=%s" % (C.ANSIBLE_SSH_CONTROL_PATH % dict(directory=self.cp_dir))]
+
+        self.common_args += ["-o", "ProxyCommand ssh -q -i %s %s@%s" % (self.private_key_file, self.instance_id, self.host)]
+
+        cp_in_use = False
+        cp_path_set = False
+        for arg in self.common_args:
+            if "ControlPersist" in arg:
+                cp_in_use = True
+            if "ControlPath" in arg:
+                cp_path_set = True
+
+        if cp_in_use and not cp_path_set:
+            self.common_args += ["-o", "ControlPath=%s" % (C.ANSIBLE_SSH_CONTROL_PATH % dict(directory=self.cp_dir))]
+
+        if not C.HOST_KEY_CHECKING:
+            self.common_args += ["-o", "StrictHostKeyChecking=no"]
+
+        if self.port is not None:
+            self.common_args += ["-o", "Port=%d" % (self.port)]
+        if self.private_key_file is not None:
+            self.common_args += ["-o", "IdentityFile=\"%s\"" % os.path.expanduser(self.private_key_file)]
+        elif self.runner.private_key_file is not None:
+            self.common_args += ["-o", "IdentityFile=\"%s\"" % os.path.expanduser(self.runner.private_key_file)]
+        if self.password:
+            self.common_args += ["-o", "GSSAPIAuthentication=no",
+                                 "-o", "PubkeyAuthentication=no"]
+        else:
+            self.common_args += ["-o", "KbdInteractiveAuthentication=no",
+                                 "-o", "PreferredAuthentications=gssapi-with-mic,gssapi-keyex,hostbased,publickey",
+                                 "-o", "PasswordAuthentication=no"]
+        if self.user != pwd.getpwuid(os.geteuid())[0]:
+            self.common_args += ["-o", "User="+self.user]
+        self.common_args += ["-o", "ConnectTimeout=%d" % self.runner.timeout]
+
+        return self
+
+    def _run(self, cmd, indata):
+        if indata:
+            # do not use pseudo-pty
+            p = subprocess.Popen(cmd, stdin=subprocess.PIPE,
+                                     stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+            stdin = p.stdin
+        else:
+            # try to use upseudo-pty
+            try:
+                # Make sure stdin is a proper (pseudo) pty to avoid: tcgetattr errors
+                master, slave = pty.openpty()
+                p = subprocess.Popen(cmd, stdin=slave,
+                                     stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+                stdin = os.fdopen(master, 'w', 0)
+                os.close(slave)
+            except:
+                p = subprocess.Popen(cmd, stdin=subprocess.PIPE,
+                                     stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+                stdin = p.stdin
+
+        return (p, stdin)
+
+    def _password_cmd(self):
+        if self.password:
+            try:
+                p = subprocess.Popen(["sshpass"], stdin=subprocess.PIPE,
+                    stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+                p.communicate()
+            except OSError:
+                raise errors.AnsibleError("to use the 'ssh' connection type with passwords, you must install the sshpass program")
+            (self.rfd, self.wfd) = os.pipe()
+            return ["sshpass", "-d%d" % self.rfd]
+        return []
+
+    def _send_password(self):
+        if self.password:
+            os.close(self.rfd)
+            os.write(self.wfd, "%s\n" % self.password)
+            os.close(self.wfd)
+
+    def _communicate(self, p, stdin, indata, su=False, sudoable=False, prompt=None):
+        fcntl.fcntl(p.stdout, fcntl.F_SETFL, fcntl.fcntl(p.stdout, fcntl.F_GETFL) & ~os.O_NONBLOCK)
+        fcntl.fcntl(p.stderr, fcntl.F_SETFL, fcntl.fcntl(p.stderr, fcntl.F_GETFL) & ~os.O_NONBLOCK)
+        # We can't use p.communicate here because the ControlMaster may have stdout open as well
+        stdout = ''
+        stderr = ''
+        rpipes = [p.stdout, p.stderr]
+        if indata:
+            try:
+                stdin.write(indata)
+                stdin.close()
+            except:
+                raise errors.AnsibleError('SSH Error: data could not be sent to the remote host. Make sure this host can be reached over ssh')
+        # Read stdout/stderr from process
+        while True:
+            rfd, wfd, efd = select.select(rpipes, [], rpipes, 1)
+
+            # fail early if the sudo/su password is wrong
+            if self.runner.sudo and sudoable:
+                if self.runner.sudo_pass:
+                    incorrect_password = gettext.dgettext(
+                        "sudo", "Sorry, try again.")
+                    if stdout.endswith("%s\r\n%s" % (incorrect_password,
+                                                     prompt)):
+                        raise errors.AnsibleError('Incorrect sudo password')
+
+                if stdout.endswith(prompt):
+                    raise errors.AnsibleError('Missing sudo password')
+
+            if self.runner.su and su and self.runner.su_pass:
+                incorrect_password = gettext.dgettext(
+                    "su", "Sorry")
+                if stdout.endswith("%s\r\n%s" % (incorrect_password, prompt)):
+                    raise errors.AnsibleError('Incorrect su password')
+
+            if p.stdout in rfd:
+                dat = os.read(p.stdout.fileno(), 9000)
+                stdout += dat
+                if dat == '':
+                    rpipes.remove(p.stdout)
+            if p.stderr in rfd:
+                dat = os.read(p.stderr.fileno(), 9000)
+                stderr += dat
+                if dat == '':
+                    rpipes.remove(p.stderr)
+            # only break out if no pipes are left to read or
+            # the pipes are completely read and
+            # the process is terminated
+            if (not rpipes or not rfd) and p.poll() is not None:
+                break
+            # No pipes are left to read but process is not yet terminated
+            # Only then it is safe to wait for the process to be finished
+            # NOTE: Actually p.poll() is always None here if rpipes is empty
+            elif not rpipes and p.poll() == None:
+                p.wait()
+                # The process is terminated. Since no pipes to read from are
+                # left, there is no need to call select() again.
+                break
+        # close stdin after process is terminated and stdout/stderr are read
+        # completely (see also issue #848)
+        stdin.close()
+        return (p.returncode, stdout, stderr)
+
+    def not_in_host_file(self, host):
+        if 'USER' in os.environ:
+            user_host_file = os.path.expandvars("~${USER}/.ssh/known_hosts")
+        else:
+            user_host_file = "~/.ssh/known_hosts"
+        user_host_file = os.path.expanduser(user_host_file)
+        
+        host_file_list = []
+        host_file_list.append(user_host_file)
+        host_file_list.append("/etc/ssh/ssh_known_hosts")
+        host_file_list.append("/etc/ssh/ssh_known_hosts2")
+        
+        hfiles_not_found = 0
+        for hf in host_file_list:
+            if not os.path.exists(hf):
+                hfiles_not_found += 1
+                continue
+            try:
+                host_fh = open(hf)
+            except IOError, e:
+                hfiles_not_found += 1
+                continue
+            else:
+                data = host_fh.read()
+                host_fh.close()
+                
+            for line in data.split("\n"):
+                if line is None or " " not in line:
+                    continue
+                tokens = line.split()
+                if tokens[0].find(self.HASHED_KEY_MAGIC) == 0:
+                    # this is a hashed known host entry
+                    try:
+                        (kn_salt,kn_host) = tokens[0][len(self.HASHED_KEY_MAGIC):].split("|",2)
+                        hash = hmac.new(kn_salt.decode('base64'), digestmod=sha1)
+                        hash.update(host)
+                        if hash.digest() == kn_host.decode('base64'):
+                            return False
+                    except:
+                        # invalid hashed host key, skip it
+                        continue
+                else:
+                    # standard host file entry
+                    if host in tokens[0]:
+                        return False
+
+        if (hfiles_not_found == len(host_file_list)):
+            vvv("EXEC previous known host file not found for %s" % host)
+        return True
+
+    def exec_command(self, cmd, tmp_path, sudo_user=None, sudoable=False, executable='/bin/sh', in_data=None, su_user=None, su=False):
+        ''' run a command on the remote host '''
+
+        ssh_cmd = self._password_cmd()
+        ssh_cmd += ["ssh", "-C"]
+        if not in_data:
+            # we can only use tty when we are not pipelining the modules. piping data into /usr/bin/python
+            # inside a tty automatically invokes the python interactive-mode but the modules are not
+            # compatible with the interactive-mode ("unexpected indent" mainly because of empty lines)
+            ssh_cmd += ["-tt"]
+        if utils.VERBOSITY > 3:
+            ssh_cmd += ["-vvv"]
+        else:
+            ssh_cmd += ["-q"]
+        ssh_cmd += self.common_args
+
+        if self.ipv6:
+            ssh_cmd += ['-6']
+        #ssh_cmd += [self.host]
+        ssh_cmd += [self.sliver_name]
+
+        if su and su_user:
+            sudocmd, prompt, success_key = utils.make_su_cmd(su_user, executable, cmd)
+            prompt_re = re.compile(prompt)
+            ssh_cmd.append(sudocmd)
+        elif not self.runner.sudo or not sudoable:
+            prompt = None
+            if executable:
+                ssh_cmd.append(executable + ' -c ' + pipes.quote(cmd))
+            else:
+                ssh_cmd.append(cmd)
+        else:
+            sudocmd, prompt, success_key = utils.make_sudo_cmd(sudo_user, executable, cmd)
+            ssh_cmd.append(sudocmd)
+
+        vvv("EXEC %s" % ssh_cmd, host=self.host)
+
+        not_in_host_file = self.not_in_host_file(self.host)
+
+        if C.HOST_KEY_CHECKING and not_in_host_file:
+            # lock around the initial SSH connectivity so the user prompt about whether to add 
+            # the host to known hosts is not intermingled with multiprocess output.
+            fcntl.lockf(self.runner.process_lockfile, fcntl.LOCK_EX)
+            fcntl.lockf(self.runner.output_lockfile, fcntl.LOCK_EX)
+
+        # create process
+        (p, stdin) = self._run(ssh_cmd, in_data)
+
+        self._send_password()
+
+        if (self.runner.sudo and sudoable and self.runner.sudo_pass) or \
+                (self.runner.su and su and self.runner.su_pass):
+            # several cases are handled for sudo privileges with password
+            # * NOPASSWD (tty & no-tty): detect success_key on stdout
+            # * without NOPASSWD:
+            #   * detect prompt on stdout (tty)
+            #   * detect prompt on stderr (no-tty)
+            fcntl.fcntl(p.stdout, fcntl.F_SETFL,
+                        fcntl.fcntl(p.stdout, fcntl.F_GETFL) | os.O_NONBLOCK)
+            fcntl.fcntl(p.stderr, fcntl.F_SETFL,
+                        fcntl.fcntl(p.stderr, fcntl.F_GETFL) | os.O_NONBLOCK)
+            sudo_output = ''
+            sudo_errput = ''
+
+            while True:
+                if success_key in sudo_output or \
+                    (self.runner.sudo_pass and sudo_output.endswith(prompt)) or \
+                    (self.runner.su_pass and prompt_re.match(sudo_output)):
+                    break
+
+                rfd, wfd, efd = select.select([p.stdout, p.stderr], [],
+                                              [p.stdout], self.runner.timeout)
+                if p.stderr in rfd:
+                    chunk = p.stderr.read()
+                    if not chunk:
+                        raise errors.AnsibleError('ssh connection closed waiting for sudo or su password prompt')
+                    sudo_errput += chunk
+                    incorrect_password = gettext.dgettext(
+                        "sudo", "Sorry, try again.")
+                    if sudo_errput.strip().endswith("%s%s" % (prompt, incorrect_password)):
+                        raise errors.AnsibleError('Incorrect sudo password')
+                    elif sudo_errput.endswith(prompt):
+                        stdin.write(self.runner.sudo_pass + '\n')
+
+                if p.stdout in rfd:
+                    chunk = p.stdout.read()
+                    if not chunk:
+                        raise errors.AnsibleError('ssh connection closed waiting for sudo or su password prompt')
+                    sudo_output += chunk
+
+                if not rfd:
+                    # timeout. wrap up process communication
+                    stdout = p.communicate()
+                    raise errors.AnsibleError('ssh connection error waiting for sudo or su password prompt')
+
+            if success_key not in sudo_output:
+                if sudoable:
+                    stdin.write(self.runner.sudo_pass + '\n')
+                elif su:
+                    stdin.write(self.runner.su_pass + '\n')
+
+        (returncode, stdout, stderr) = self._communicate(p, stdin, in_data, su=su, sudoable=sudoable, prompt=prompt)
+
+        if C.HOST_KEY_CHECKING and not_in_host_file:
+            # lock around the initial SSH connectivity so the user prompt about whether to add 
+            # the host to known hosts is not intermingled with multiprocess output.
+            fcntl.lockf(self.runner.output_lockfile, fcntl.LOCK_UN)
+            fcntl.lockf(self.runner.process_lockfile, fcntl.LOCK_UN)
+        controlpersisterror = 'Bad configuration option: ControlPersist' in stderr or \
+                              'unknown configuration option: ControlPersist' in stderr
+
+        if C.HOST_KEY_CHECKING:
+            if ssh_cmd[0] == "sshpass" and p.returncode == 6:
+                raise errors.AnsibleError('Using a SSH password instead of a key is not possible because Host Key checking is enabled and sshpass does not support this.  Please add this host\'s fingerprint to your known_hosts file to manage this host.')
+
+        if p.returncode != 0 and controlpersisterror:
+            raise errors.AnsibleError('using -c ssh on certain older ssh versions may not support ControlPersist, set ANSIBLE_SSH_ARGS="" (or ssh_args in [ssh_connection] section of the config file) before running again')
+        if p.returncode == 255 and (in_data or self.runner.module_name == 'raw'):
+            raise errors.AnsibleError('SSH Error: data could not be sent to the remote host. Make sure this host can be reached over ssh')
+
+        return (p.returncode, '', stdout, stderr)
+
+    def put_file(self, in_path, out_path):
+        ''' transfer a file from local to remote '''
+        vvv("PUT %s TO %s" % (in_path, out_path), host=self.host)
+        if not os.path.exists(in_path):
+            raise errors.AnsibleFileNotFound("file or module does not exist: %s" % in_path)
+        cmd = self._password_cmd()
+
+        host = self.host
+        if self.ipv6:
+            host = '[%s]' % host
+
+        if C.DEFAULT_SCP_IF_SSH:
+            cmd += ["scp"] + self.common_args
+            cmd += [in_path,host + ":" + pipes.quote(out_path)]
+            indata = None
+        else:
+            cmd += ["sftp"] + self.common_args + [host]
+            indata = "put %s %s\n" % (pipes.quote(in_path), pipes.quote(out_path))
+
+        (p, stdin) = self._run(cmd, indata)
+
+        self._send_password()
+
+        (returncode, stdout, stderr) = self._communicate(p, stdin, indata)
+
+        if returncode != 0:
+            raise errors.AnsibleError("failed to transfer file to %s:\n%s\n%s" % (out_path, stdout, stderr))
+
+    def fetch_file(self, in_path, out_path):
+        ''' fetch a file from remote to local '''
+        vvv("FETCH %s TO %s" % (in_path, out_path), host=self.host)
+        cmd = self._password_cmd()
+
+        host = self.host
+        if self.ipv6:
+            host = '[%s]' % host
+
+        if C.DEFAULT_SCP_IF_SSH:
+            cmd += ["scp"] + self.common_args
+            cmd += [host + ":" + in_path, out_path]
+            indata = None
+        else:
+            cmd += ["sftp"] + self.common_args + [host]
+            indata = "get %s %s\n" % (in_path, out_path)
+
+        p = subprocess.Popen(cmd, stdin=subprocess.PIPE,
+                             stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+        self._send_password()
+        stdout, stderr = p.communicate(indata)
+
+        if p.returncode != 0:
+            raise errors.AnsibleError("failed to transfer file from %s:\n%s\n%s" % (in_path, stdout, stderr))
+
+    def close(self):
+        ''' not applicable since we're executing openssh binaries '''
+        pass
+