We've been running and building qemu images on xs-dev; you might
consider doing root-stuff on a machine which is not dev.  xs-dev
already has qemu, etc installed.

rsync does not require you to be root; fakeroot works quite well.
Mounting loopback filesystems, on the other hand...  maybe FUSE can
help?

Don't worry too much about upgrading -- as long as your developer
tools are in /home/olpc they will be preserved across updates by the
upgrade magic which is going to land on Monday.
 --scott

-- 
                         ( http://cscott.net/ )
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