diff --git a/board/common/busybox.config b/board/common/busybox.config
index 1a3a02eda5..f70c01fc58 100644
--- a/board/common/busybox.config
+++ b/board/common/busybox.config
@@ -1,7 +1,7 @@
 #
 # Automatically generated make config: don't edit
 # Busybox version: 1.29.2
-# Fri Jan 25 20:24:12 2019
+# Fri Feb  1 22:19:53 2019
 #
 CONFIG_HAVE_DOT_CONFIG=y
 
@@ -384,9 +384,9 @@ CONFIG_RESET=y
 # CONFIG_RUN_PARTS is not set
 # CONFIG_FEATURE_RUN_PARTS_LONG_OPTIONS is not set
 # CONFIG_FEATURE_RUN_PARTS_FANCY is not set
-CONFIG_START_STOP_DAEMON=y
-CONFIG_FEATURE_START_STOP_DAEMON_LONG_OPTIONS=y
-CONFIG_FEATURE_START_STOP_DAEMON_FANCY=y
+# CONFIG_START_STOP_DAEMON is not set
+# CONFIG_FEATURE_START_STOP_DAEMON_LONG_OPTIONS is not set
+# CONFIG_FEATURE_START_STOP_DAEMON_FANCY is not set
 CONFIG_WHICH=y
 
 #
@@ -621,7 +621,7 @@ CONFIG_HWCLOCK=y
 # CONFIG_IPCS is not set
 # CONFIG_LAST is not set
 # CONFIG_FEATURE_LAST_FANCY is not set
-# CONFIG_LOSETUP is not set
+CONFIG_LOSETUP=y
 # CONFIG_LSPCI is not set
 CONFIG_LSUSB=y
 # CONFIG_MDEV is not set
diff --git a/board/common/overlay/etc/init.d/S00datapart b/board/common/overlay/etc/init.d/S00datapart
index b1f25768eb..5c76f928fa 100755
--- a/board/common/overlay/etc/init.d/S00datapart
+++ b/board/common/overlay/etc/init.d/S00datapart
@@ -1,5 +1,8 @@
 #!/bin/bash
 
+DATA_OFFS="1024"  # up to 1024MB reserved for boot + root
+
+
 test -n "${OS_VERSION}" || source /etc/init.d/base
 
 case "$1" in
@@ -23,7 +26,7 @@ case "$1" in
         test -b ${data_dev} && exit 0
 
         msg_begin "Creating data partition"
-        data_start=$((1024 * 2048)) # up to 1024MB reserved for boot + root
+        data_start=$((DATA_OFFS * 2048))
         echo -e "n
             p
             3
diff --git a/board/common/overlay/etc/init.d/S02restorebackups b/board/common/overlay/etc/init.d/S02restorebackups
new file mode 100755
index 0000000000..fd5e733a4b
--- /dev/null
+++ b/board/common/overlay/etc/init.d/S02restorebackups
@@ -0,0 +1,47 @@
+#!/bin/bash
+
+BACKUPS_DIR="/boot"
+BACKUP_PATTERN="backup-*.tar.gz"
+DATA_DIR="/data"
+
+
+test -n "${OS_VERSION}" || source /etc/init.d/base
+
+
+case "$1" in
+    start)
+        if ! ls ${BACKUPS_DIR}/${BACKUP_PATTERN} &>/dev/null; then
+            exit;  # no backups
+        fi
+        
+        mount -o remount,rw /boot
+
+        for file in ${BACKUPS_DIR}/${BACKUP_PATTERN}; do
+            msg_begin "Restoring backup from $(basename ${file})"
+            tar -mxf ${file} -C ${DATA_DIR}
+            if [[ $? == 0 ]]; then
+                rm ${file}
+                msg_done
+            else
+                msg_fail
+            fi
+        done
+        
+        # source os_conf again, as it might have changed after restore
+        test -f /etc/init.d/os_conf && source /etc/init.d/os_conf
+        if [[ "${OS_DEBUG}" != "true" ]]; then
+            mount -o remount,ro /boot
+        fi
+        ;;
+
+    stop)
+        true
+        ;;
+
+    *)
+        echo "Usage: $0 {start}"
+        exit 1
+esac
+
+exit $?
+
diff --git a/board/common/overlay/etc/init.d/S02modules b/board/common/overlay/etc/init.d/S03modules
similarity index 100%
rename from board/common/overlay/etc/init.d/S02modules
rename to board/common/overlay/etc/init.d/S03modules
diff --git a/board/common/overlay/etc/init.d/S03hostname b/board/common/overlay/etc/init.d/S04hostname
similarity index 100%
rename from board/common/overlay/etc/init.d/S03hostname
rename to board/common/overlay/etc/init.d/S04hostname
diff --git a/board/common/overlay/etc/init.d/S04syslog b/board/common/overlay/etc/init.d/S05syslog
similarity index 100%
rename from board/common/overlay/etc/init.d/S04syslog
rename to board/common/overlay/etc/init.d/S05syslog
diff --git a/board/common/overlay/sbin/fwupdate b/board/common/overlay/sbin/fwupdate
index 4e66f01bb5..d9097227eb 100755
--- a/board/common/overlay/sbin/fwupdate
+++ b/board/common/overlay/sbin/fwupdate
@@ -4,14 +4,14 @@
 #### usage ####
 
 function exit_usage() {
-    echo "Usage: fwupdate versions [-j]                 (lists available versions, optionally outputting json)"
-    echo "       fwupdate current                       (shows the current version"
-    echo "       fwupdate download <version|url|file>   (downloads a firmware version)"
-    echo "       fwupdate extract                       (extracts the downloaded firmware archive)"
-    echo "       fwupdate flashboot                     (flashes the boot partition from extracted image)"
-    echo "       fwupdate flashreboot                   (prepares for reboot + root partititon flash)"
-    echo "       fwupdate status                        (shows the current firmware updating status; see below)"
-    echo "       fwupdate upgrade <version|url|file>    (performs all the operations necessary for upgrading)"
+    echo "Usage: fwupdate versions [-j]                     (lists available versions, optionally outputting json)"
+    echo "       fwupdate current                           (shows the current version"
+    echo "       fwupdate download <version|url|file>       (downloads a firmware version)"
+    echo "       fwupdate extract                           (extracts the downloaded firmware archive)"
+    echo "       fwupdate flashboot                         (flashes the boot partition from extracted image)"
+    echo "       fwupdate flashreboot                       (prepares for reboot + root partititon flash)"
+    echo "       fwupdate status                            (shows the current firmware updating status; see below)"
+    echo "       fwupdate upgrade <version|url|file>        (performs all the operations necessary for upgrading)"
     echo ""
     echo "Statuses:"
     echo "       idle"
@@ -33,8 +33,12 @@ fi
 
 #### configuration ####
 
+set -a
+set -e
+
 SYS_VERSION_FILE=/etc/version
 SYS_BOARD_FILE=/etc/board
+OS_CONF_FILE=/etc/init.d/os_conf
 
 MIN_FREE_DISK=$((500*1024))  # 500 MB
 VER_FILE=version
@@ -58,11 +62,15 @@ XZCAT_PID_FILE=xzcat.pid
 DD_LOG_FILE=dd.log
 DD_PID_FILE=dd.pid
 
+source ${OS_CONF_FILE}
+source ${SYS_VERSION_FILE}
+
 
 #### disk & partition devices ####
 
 BOOT_DEV=$(mount | grep /boot | cut -d ' ' -f 1)
 ROOT_DEV=${BOOT_DEV:0:-1}2
+DATA_DEV=${BOOT_DEV:0:-1}3
 DISK_DEV=$(mount | grep /boot | cut -d ' ' -f 1)
 if [[ "${ROOT_DEV}" =~ ^([/a-z0-9]+)(p[0-9])$ ]]; then  # e.g. /dev/mmcblk0p2
     DISK_DEV=${BASH_REMATCH[1]}
@@ -77,8 +85,6 @@ fi
 #### versions ####
 
 function show_versions() {
-    source /etc/init.d/os_conf  # we need this for the OS_ vars
-    
     board=$(cat ${SYS_BOARD_FILE})
     show_json=$1
   
@@ -112,8 +118,6 @@ function show_versions() {
 }
 
 function show_current() {
-    source ${SYS_VERSION_FILE}
-    
     echo ${OS_VERSION}
 }
 
@@ -144,8 +148,6 @@ function do_download() {
         fi
     fi
 
-    source /etc/init.d/os_conf  # we need this for the OS_ vars
-    
     board=$(cat ${SYS_BOARD_FILE})
     url=$1
     version=$1
@@ -208,6 +210,34 @@ function download_status() {
 
 #### extract ####
 
+function run_pre_upgrade() {
+    which losetup &>/dev/null || return 0
+
+    root_start=$(cat ${FW_DIR}/${ROOT_INFO_FILE} | cut -d ' ' -f 1)
+    tmp_mnt="/tmp/fwupdate_root"
+    loop="/dev/loop4"
+    pre_upgrade="${tmp_mnt}/usr/share/pre-upgrade/*"
+    
+    mkdir -p ${tmp_mnt}
+    losetup -o $((root_start * 1024 * 1024)) ${loop} ${FW_DIR}/${FW_FILE_EXTR}
+    mount ${loop} ${tmp_mnt}
+    if [[ -d ${pre_upgrade} ]]; then
+        for script in ${pre_upgrade}/*.sh; do
+            echo "running pre-upgrade script $(basename ${script})"
+            if [[ -x ${script} ]] && ! ${script}; then
+                # non-zero exit status of pre-upgrade script indicates that
+                # the upgrade process must not be continued
+                
+                echo "aborted by pre-upgrade script"
+                return 1
+            fi
+        done
+    fi
+
+    umount ${tmp_mnt}
+    losetup -d ${loop}
+}
+
 function do_extract() {
     echo "extracting..."
     
@@ -249,35 +279,9 @@ function do_extract() {
         exit 1
     fi
     
-    # verify available partition space
-    
-    fw_boot_info=$(fdisk --bytes -l -o device,start,end,size ${FW_DIR}/${FW_FILE_EXTR} | grep "${FW_FILE_EXTR}1")
-    fw_boot_info=(${fw_boot_info})
-    fw_boot_size=${fw_boot_info[3]}
-
-    fw_root_info=$(fdisk --bytes -l -o device,start,end,size ${FW_DIR}/${FW_FILE_EXTR} | grep "${FW_FILE_EXTR}2")
-    fw_root_info=(${fw_root_info})
-    fw_root_size=${fw_root_info[3]}
-    
-    disk_boot_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep ${BOOT_DEV})
-    disk_boot_info=(${disk_boot_info})
-    disk_boot_size=${disk_boot_info[3]}
-    
-    disk_root_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep ${ROOT_DEV})
-    disk_root_info=(${disk_root_info})
-    disk_root_size=${disk_root_info[3]}
-    
-    if [[ ${disk_boot_size} -lt ${fw_boot_size} ]]; then
-        echo "not enough space on boot partition (${fw_boot_size} needed, ${disk_boot_size} available)" 1>&2
-        exit 1
-    fi
-
-    if [[ ${disk_root_size} -lt ${fw_root_size} ]]; then
-        echo "not enough space on root partition (${fw_root_size} needed, ${disk_root_size} available)" 1>&2
-        exit 1
-    fi
-
     # TODO verify hash
+    
+    run_pre_upgrade
 }
 
 function extract_status() {
@@ -303,18 +307,55 @@ function extract_status() {
 
 #### flash boot ####
 
-function flash_boot() {
+function reallocate_boot_part() {
+    boot_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep "${BOOT_DEV}")
+    boot_info=(${boot_info})
+
+    root_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep "${ROOT_DEV}")
+    root_info=(${root_info})
+
+    fw_boot_info=$(fdisk --bytes -l -o device,start,end,size ${FW_DIR}/${FW_FILE_EXTR} | grep "${FW_FILE_EXTR}1")
+    fw_boot_info=(${fw_boot_info})
+
+    if [[ ${boot_info[1]} == ${fw_boot_info[1]} ]] && 
+       [[ ${boot_info[2]} == ${fw_boot_info[2]} ]]; then
+
+        return  # all good
+    fi
+    
+    echo "reallocating boot partition..."
+    
+    # check overlapping with root partition
+    if [[ ${fw_boot_info[2]} -ge ${root_info[1]} ]]; then
+        echo "cannot reallocate boot partition: will overlap with root"
+        return 1
+    fi
+
+    fdisk -w auto ${DISK_DEV} >/dev/null <<END
+d
+1
+n
+p
+1
+${fw_boot_info[1]}
+${fw_boot_info[2]}
+w
+END
+    sync
+}
+
+function do_flash_boot() {
     echo "flashing boot..."
     
     rm -f ${FW_DIR}/${BOOT_READY_FILE}
 
-    set +e
     board=$(cat ${SYS_BOARD_FILE})
 
     cp -r /boot ${FW_DIR}/old_boot
     umount /boot
     trap flash_cleanup EXIT
 
+    # prevent unwanted reboots during upgrade
     mount -o remount,rw /
     mv /sbin/reboot /sbin/reboot.bak
     ln -s /bin/true /sbin/reboot
@@ -330,6 +371,8 @@ function flash_boot() {
     root_size=$((${root_info[3]} / 1048576))  # in MB
     
     echo ${root_start} ${root_size} > ${FW_DIR}/${ROOT_INFO_FILE}
+    
+    reallocate_boot_part
 
     dd if=${FW_DIR}/${FW_FILE_EXTR} skip=${boot_start} of=${BOOT_DEV} bs=1048576 count=${boot_size} &>${FW_DIR}/${DD_LOG_FILE} &
     pid=$!
@@ -373,7 +416,51 @@ function flash_cleanup() {
 
 #### flash reboot ####
 
-function flash_reboot() {
+function reallocate_root_part() {
+    root_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep "${ROOT_DEV}")
+    root_info=(${root_info})
+
+    data_info=$(fdisk --bytes -l -o device,start,end,size ${DISK_DEV} | grep "${DATA_DEV}")
+    data_info=(${data_info})
+
+    fw_root_info=$(fdisk --bytes -l -o device,start,end,size ${FW_DIR}/${FW_FILE_EXTR} | grep "${FW_FILE_EXTR}2")
+    fw_root_info=(${fw_root_info})
+
+    if [[ ${root_info[1]} == ${fw_root_info[1]} ]] && 
+       [[ ${root_info[2]} == ${fw_root_info[2]} ]]; then
+
+        return  # all good
+    fi
+    
+    echo "reallocating root partition..."
+    
+    # check overlapping with data partition
+    if [[ ${fw_root_info[2]} -ge ${data_info[1]} ]]; then
+        echo "cannot reallocate root partition: will overlap with data"
+        return 1
+    fi
+
+    fdisk -w auto ${DISK_DEV} >/dev/null <<END
+d
+2
+n
+p
+2
+${fw_root_info[1]}
+${fw_root_info[2]}
+w
+END
+    sync
+}
+
+function do_flash_reboot() {
+    if [[ ! -f ${FW_DIR}/${ROOT_INFO_FILE} ]]; then
+        echo "extracted firmware not present"
+        return 1
+    fi
+    
+    reallocate_root_part
+
     echo "preparing for reboot..."
 
     board=$(cat ${SYS_BOARD_FILE})
@@ -397,6 +484,15 @@ function flash_reboot() {
 
 #### status ####
 
+function new_version() {
+    cat ${FW_DIR}/${VER_FILE}
+}
+
+function backup_conf() {
+    echo "backing up /data/etc..."
+    tar -acf /boot/backup-etc-${OS_VERSION}.tar.gz -C /data etc
+}
+
 function show_status() {
     status=$(flash_boot_status)
     if [ "${status}" == "running" ]; then
@@ -434,25 +530,20 @@ function show_status() {
 function do_upgrade() {
     echo "upgrading to $1"
     
-    set -e
-
     do_download "$1"
     show_status
 
     do_extract
     show_status
     
-    flash_boot
+    do_flash_boot
     show_status
     
-    flash_reboot
+    do_flash_reboot
 }
 
 
-function new_version() {
-    cat ${FW_DIR}/${VER_FILE}
-}
-
+#### main ####
 
 case "$1" in
     versions)
@@ -480,12 +571,12 @@ case "$1" in
         ;;
 
     flashboot)
-        flash_boot
+        do_flash_boot
         show_status
         ;;
 
     flashreboot)
-        flash_reboot
+        do_flash_reboot
         ;;
 
     status)