diff --git a/packages/toolchain/sysutils/squashfs/build b/packages/toolchain/sysutils/squashfs/build
index 94ce8827f1..9400815e14 100755
--- a/packages/toolchain/sysutils/squashfs/build
+++ b/packages/toolchain/sysutils/squashfs/build
@@ -3,6 +3,7 @@
 . config/options $1
 
 $SCRIPTS/build toolchain
+$SCRIPTS/build attr
 $SCRIPTS/unpack lzma
 
 LZMA_DIR=`ls -d $ROOT/$BUILD/lzma*`
@@ -11,7 +12,10 @@ setup_toolchain host
 
 cd $BUILD/$1*/squashfs-tools
 
-make mksquashfs LZMA_SUPPORT=1 LZMA_DIR=$LZMA_DIR
+make mksquashfs \
+     LZMA_SUPPORT=1 LZMA_DIR=$LZMA_DIR \
+     LZO_SUPPORT=1 \
+     INCLUDEDIR="-I. -I$ROOT/$TOOLCHAIN/include -I$LZMA_DIR/C"
 
 mkdir -p $ROOT/$TOOLCHAIN/bin
   cp mksquashfs $ROOT/$TOOLCHAIN/bin
diff --git a/packages/toolchain/sysutils/squashfs/patches/squashfs_remove_defaults.diff b/packages/toolchain/sysutils/squashfs/patches/squashfs_remove_defaults.diff
deleted file mode 100644
index ef264ccba4..0000000000
--- a/packages/toolchain/sysutils/squashfs/patches/squashfs_remove_defaults.diff
+++ /dev/null
@@ -1,14 +0,0 @@
-diff -Naur squashfs4.0-20091205/squashfs-tools/Makefile squashfs4.0-20091205.patch/squashfs-tools/Makefile
---- squashfs4.0-20091205/squashfs-tools/Makefile	2009-10-14 05:32:57.000000000 +0200
-+++ squashfs4.0-20091205.patch/squashfs-tools/Makefile	2009-12-05 18:24:48.241450813 +0100
-@@ -2,8 +2,8 @@
- # Building LZMA support
- # Download LZMA sdk (4.65 used in development, other versions may work),
- # set LZMA_DIR to unpacked source, and uncomment next line
--LZMA_SUPPORT = 1
--LZMA_DIR = ../../../LZMA/lzma465
-+#LZMA_SUPPORT = 1
-+#LZMA_DIR = ../../../LZMA/lzma465
- 
- #Compression default.
- COMP_DEFAULT = gzip
diff --git a/packages/toolchain/sysutils/squashfs/url b/packages/toolchain/sysutils/squashfs/url
index ab8bb8b165..0a1e085f9c 100644
--- a/packages/toolchain/sysutils/squashfs/url
+++ b/packages/toolchain/sysutils/squashfs/url
@@ -1 +1 @@
-http://sources.openelec.tv/svn/squashfs4.0-20091205.tar.bz2
+http://downloads.sourceforge.net/project/squashfs/squashfs/squashfs4.1/squashfs4.1.tar.gz
\ No newline at end of file