diff --git a/setup/bindir/cloud-set-guest-password.in b/setup/bindir/cloud-set-guest-password.in
index 8e50d2bb3fd..aedcf155e79 100755
--- a/setup/bindir/cloud-set-guest-password.in
+++ b/setup/bindir/cloud-set-guest-password.in
@@ -8,39 +8,72 @@
 # Modify this line to specify the user (default is root)
 user=root
 
-# Add your DHCP lease file here
-DHCP_FILES="/var/lib/dhclient/dhclient-eth0.leases /var/lib/dhcp3/dhclient.eth0.leases"
+# Add your DHCP lease folders here
+DHCP_FOLDERS="/var/lib/dhclient/* /var/lib/dhcp3/*"
+password_received=0
 
-for DHCP_FILE in $DHCP_FILES
+for DHCP_FILE in $DHCP_FOLDERS
 do
 	if [ -f $DHCP_FILE ]
 	then
-		DOMR_IP=$(grep dhcp-server-identifier $DHCP_FILE | tail -1 | awk '{print $NF}' | tr -d '\;')
-		break;
+		PASSWORD_SERVER_IP=$(grep dhcp-server-identifier $DHCP_FILE | tail -1 | awk '{print $NF}' | tr -d '\;')
+
+		if [ -n $PASSWORD_SERVER_IP ]
+		then
+			logger -t "cloud" "Sending request to password server at $PASSWORD_SERVER_IP"
+			password=$(wget -t 3 -T 20 -O - --header "DomU_Request: send_my_password" $PASSWORD_SERVER_IP:8080)
+
+			if [ $? -eq 0 ]
+			then
+				logger -t "cloud" "Got a password from server at $PASSWORD_SERVER_IP"
+				password_received=1
+				break
+			fi
+		fi
 	fi
 done
 
-password=$(wget -t 3 -T 20 -O - --header "DomU_Request: send_my_password" $DOMR_IP:8080)
-
-if [ $? -ne 0 ]
+if [ "$password_received" == "0" ]
 then
+	logger -t "cloud" "Failed to get password from server"
 	exit 1
 fi
 
 password=$(echo $password | tr -d '\r')
 
-if [ -n "$password" ] && [ "$password" != "bad_request" ] && [ "$password" != "saved_password" ]
-then
-	echo $password | passwd --stdin $user
-	if [ $? -gt 0 ]
-	then
-		usermod -p `mkpasswd $password 42` $user
-		if [ $? -gt 0 ]
-		then
-			exit 1
-		fi
-	fi
-	wget -t 3 -T 20 -O - --header "DomU_Request: saved_password" $DOMR_IP:8080
-fi
+case $password in
 
-exit 0
+	"")					logger -t "cloud" "Password server did not have any password for the VM."
+  						exit 0
+						;;
+						
+	"bad_request")		logger -t "cloud" "VM sent an invalid request to password server."
+						exit 1
+						;;
+						
+	"saved_password") 	logger -t "cloud" "VM has already saved a password from the password server."
+						exit 0
+						;;
+
+	*)					logger -t "cloud" "Changing password for the VM..."
+						echo $password | passwd --stdin $user
+						
+						if [ $? -gt 0 ]
+						then
+							usermod -p `mkpasswd $password 42` $user
+		
+							if [ $? -gt 0 ]
+							then
+								logger -t "cloud" "Failed to change password for user $user"
+								exit 1
+							else
+								logger -t "cloud" "Successfully changed password for user $user"
+							fi
+						fi
+						
+						logger -t "cloud" "Sending acknowledgment to password server at $PASSWORD_SERVER_IP"
+						wget -t 3 -T 20 -O - --header "DomU_Request: saved_password" $PASSWORD_SERVER_IP:8080
+						exit 0
+						;;
+	
+esac