diff --git a/command b/command
index 780e50dd6da..b1a9ce30213 100755
--- a/command
+++ b/command
@@ -4,17 +4,26 @@ try:
 	import json
 except ImportError:
 	import simplejson as json
+
 import subprocess
 import sys
 import datetime
+import traceback
 
 args = sys.argv[1:]
 startd = datetime.datetime.now()
 
-cmd = subprocess.Popen(args, shell=False, 
-    stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+try:
+    cmd = subprocess.Popen(args, shell=False, 
+        stdout=subprocess.PIPE, stderr=subprocess.PIPE)
+    out, err = cmd.communicate()
+except:
+    print json.dumps({
+        "failed" : 1,
+        "traceback" : traceback.format_exc()
+    })   
+    sys.exit(1)
 
-out, err = cmd.communicate()
 endd = datetime.datetime.now()
 delta = endd - startd
 
diff --git a/setup b/setup
index 77cc1c23005..de52cba7098 100755
--- a/setup
+++ b/setup
@@ -2,7 +2,6 @@
 
 ANSIBLE_DIR       = "/etc/ansible"
 ANSIBLE_SETUP     = "/etc/ansible/setup"
-ANSIBLE_TEMPLATES = "/srv/ansible/templates"
 
 import sys
 import os
@@ -18,12 +17,6 @@ except ImportError:
 input_data = sys.argv[1:]
 new_options = dict([ x.split("=") for x in input_data ])
 
-# make a directory to store templates
-# if it does not already exist
-
-if not os.path.exists(ANSIBLE_TEMPLATES):
-    os.makedirs(ANSIBLE_TEMPLATES)
-
 # create the config dir if it doesn't exist
 
 if not os.path.exists(ANSIBLE_DIR):
diff --git a/template b/template
index db68911cea7..5348dd6147b 100644
--- a/template
+++ b/template
@@ -1,3 +1,72 @@
 #!/usr/bin/python
 
-print {}
+import sys
+import os
+import jinja2
+try:
+     import json
+except ImportError:
+     import simplejson as json
+
+source   = sys.argv[1]
+dest     = sys.argv[2]
+metadata = sys.argv[3]
+ 
+# raise an error if there is no template metadata
+if not os.path.exists(metadata):
+    print json.dumps({
+        "failed" : 1,
+        "msg"    : "Missing %s, did you run the setup module yet?" % metadata
+    })
+    sys.exit(1)
+
+# raise an error if we can't parse the template metadata
+try:
+   f = open(metadata)
+   data = json.loads(f.read())
+   f.close()
+except:
+   print json.dumps({
+       "failed" : 1,
+       "msg"    : "Failed to parse/load %s, rerun the setup module?" % metadata
+   })
+   sys.exit(1)
+
+if not os.path.exists(source):
+    print json.dumps({
+        "failed" : 1,
+        "msg"    : "Source template could not be read: %s" % source
+    })
+    sys.exit(1)
+
+source = file(source).read()
+
+# record md5sum of original source file so we can report if it changed
+changed = False
+md5sum = None
+if os.path.exists(dest):
+   md5sum = os.popen("md5sum %s" % dest).read()
+
+# call Jinja2 here and save the new template file
+template = jinja2.Template(source)
+data_out = template.render(data)
+f = open(dest, "w+")
+f.write(data_out)
+f.close()
+
+# TODO: catch templating errors and do not clobber the file on the
+# other end unless things were successful
+
+# record m5sum and return success and whether things have changed
+md5sum2 = os.popen("md5sum %s" % dest).read()
+
+if md5sum != md5sum2:
+   changed = True
+
+# mission accomplished
+print json.dumps({
+   "md5sum"   : md5sum2,
+   "changed"  : changed 
+})
+
+