diff --git a/smartgears/smartgears_egi_image/templates/smartgears-setup.sh.j2 b/smartgears/smartgears_egi_image/templates/smartgears-setup.sh.j2
index 4f89d4aa..8374c14e 100755
--- a/smartgears/smartgears_egi_image/templates/smartgears-setup.sh.j2
+++ b/smartgears/smartgears_egi_image/templates/smartgears-setup.sh.j2
@@ -1,11 +1,16 @@
 #!/bin/bash
 
 SM_DIR={{ smartgears_install_path }}
-SM_CONF_F=${SM_DIR}/container.xml
+SM_CONF_F={{ smartgears_user_home }}/.containerxml/1-container.xml
+SM_CONF_TOKENS_F={{ smartgears_user_home }}/.containerxml/2-container.xml
+SM_CONF_TAIL_F={{ smartgears_user_home }}/.containerxml/3-container.xml
+SM_CONF_SCOPES_F=/usr/local/etc/scopes.list
+SM_CONF_DEST_F=${SM_DIR}/container.xml
 SM_LIB_DIR=${SM_DIR}/lib
 SM_STATE_DIR=${SM_DIR}/state/
 GET_KEYS_SCRIPT=/usr/local/bin/get-gcube-keys
 SVC=tomcat-instance-{{ smartgears_http_port }}
+TOMCAT_DEFAULT=/etc/default/${SVC}
 LOG_FILE=/var/log/smartgears-node-setup.log
 HOSTS_FILE=/etc/hosts
 FQDN_HOST=
@@ -13,94 +18,182 @@ PUB_FQDN_HOST=
 PUBLIC_IP=
 MAIN_IP=
 RETVAL=0
+MEM=$( free -m | egrep ^Mem | awk '{ print $2 }'  )
+JAVA_MAX_HEAP=$( expr $MEM - 2048 )
+
+# Init some variables that should be passed
+if [ -z "${SMARTGEARS_SCOPES}" ] ; then
+    SMARTGEARS_SCOPES=
+fi
+if [ -z "${HOST}" ] ; then
+    HOST=
+fi
 
 {% raw %}
 > $LOG_FILE
-if [ -z "${HOST}" ] ; then
-    echo "No hostname was passed from the outside. Trying to find it out by ourselves" >> $LOG_FILE
-    FQDN_HOST=$( /bin/hostname -f )
-    if [ -z "${FQDN_HOST}" ] ; then
-        echo "The machine has no FQDN. Revert to plain hostname" >> $LOG_FILE
-        HOST=$( /bin/hostname )
-        echo "Setting the plain hostname: $HOST" >> $LOG_FILE
-    else
-        HOST=$FQDN_HOST
+function setup_hostname() {
+    echo "-- setup_hostname" >> $LOG_FILE
+    if [ -z "${HOST}" ] ; then
+        echo "No hostname was passed from the outside. Trying to find it out by ourselves" >> $LOG_FILE
+        FQDN_HOST=$( /bin/hostname -f )
+        if [ -z "${FQDN_HOST}" ] ; then
+            echo "The machine has no FQDN. Revert to plain hostname if available" >> $LOG_FILE
+            HOST=$( /bin/hostname )
+            echo "Setting the plain hostname: $HOST" >> $LOG_FILE
+        else
+            HOST=$FQDN_HOST
+        fi
     fi
-fi
-# We don't know if we have been assigned a private or public IP address
-PUBLIC_IP=$( wget http://ipecho.net/plain -qO - )
-MAIN_IP=$( ip addr show scope global dev eth0 | grep inet | awk '{ print $2 }' | cut -d "/" -f 1 )
-echo "Our main IP is ${MAIN_IP}" >> $LOG_FILE
-if [ -z $PUBLIC_IP ] ; then
-    # We have some kind of problem
-    echo "We cannot obtain our public IP from outside. Using our main IP address as public IP" >> $LOG_FILE
-    PUBLIC_IP=$MAIN_IP
-else
-    echo "Our public IP is ${PUBLIC_IP}"  >> $LOG_FILE
-fi
-# Try to know our public FQDN
-TMP_FQDN_HOST=$( host $PUBLIC_IP )
-RET_FQDN=$?
-if [ $RET_FQDN -eq 0 ] ; then
-    PUB_FQDN_HOST=$( host $PUBLIC_IP | awk '{print $5}' | sed -e 's/\.$//g' )
-fi
-# Set the hosts file with the new data
-grep -v $HOST $HOSTS_FILE > $HOSTS_FILE.tmp
-echo "${PUBLIC_IP} ${FQDN_HOST} ${PUB_FQDN_HOST} ${HOST}" >> $HOSTS_FILE.tmp
-mv $HOSTS_FILE.tmp $HOSTS_FILE
-chmod 644 $HOSTS_FILE
-chown root:root $HOSTS_FILE
-    
-if [ -z "${INFRA_NAME}" ] ; then
-    echo "The infrastructure name is void" >> $LOG_FILE
-    RETVAL=1
-fi
-if [ -z "${SCOPE}" ] ; then
-    echo "The scope is void" >> $LOG_FILE
-    RETVAL=1
-fi
-if [ -z "${COUNTRY}" ] ; then
-    echo "The country code is void" >> $LOG_FILE
-    RETVAL=1
-elif [ ${#COUNTRY} -ne 2 ] ; then
-    echo "The country code is wrong. It must be two characters long" >> $LOG_FILE
-    RETVAL=1
-fi
-if [ $RETVAL -eq 1 ] ; then
-    echo "Exiting because of errors. The SmartExecutor will not start" >> $LOG_FILE
-    exit 1
-fi
+}
 
-# We use the public FQDN if there's one. Otherwise we use the public IP
-if [ ! -z ${PUB_FQDN_HOST} ] ; then
-    sed -i -e "s#@SMARTGEARS_HOSTNAME@#${PUB_FQDN_HOST}#g" $SM_CONF_F
-else
+function find_public_ip() {
+    echo "-- find_public_ip" >> $LOG_FILE
+    # We don't know if we have been assigned a private or public IP address
+    PUBLIC_IP=$( wget http://ipecho.net/plain -qO - )
+    MAIN_IP=$( ip addr show scope global dev eth0 | grep inet | awk '{ print $2 }' | cut -d "/" -f 1 )
+    echo "Our main IP is ${MAIN_IP}" >> $LOG_FILE
+    if [ -z $PUBLIC_IP ] ; then
+        # We have some kind of problem
+        echo "We cannot obtain our public IP from outside. Using our main IP address as public IP" >> $LOG_FILE
+        PUBLIC_IP=$MAIN_IP
+    else
+        echo "Our public IP is ${PUBLIC_IP}"  >> $LOG_FILE
+    fi
+    # Try to know our public FQDN
+    TMP_FQDN_HOST=$( host $PUBLIC_IP )
+    RET_FQDN=$?
+    if [ $RET_FQDN -eq 0 ] ; then
+        PUB_FQDN_HOST=$( host $PUBLIC_IP | awk '{print $5}' | sed -e 's/\.$//g' )
+    fi
+}
+
+function modify_hosts_file() {
+    echo "-- modify_hosts_file" >> $LOG_FILE
+    # Set the hosts file with the new data
+    grep -v $HOST $HOSTS_FILE > $HOSTS_FILE.tmp
+    if [ "${FQDN_HOST}" == "${HOST}" ] ; then
+        FQDN_HOST=${HOST}.localhost
+    fi
+    echo "${PUBLIC_IP} ${FQDN_HOST} ${PUB_FQDN_HOST} ${HOST}" >> $HOSTS_FILE.tmp
+    mv $HOSTS_FILE.tmp $HOSTS_FILE
+    chmod 644 $HOSTS_FILE
+    chown root:root $HOSTS_FILE
+}
+    
+function smartgears_config_parameters_check() {
+    echo "-- smartgears_config_parameters_check" >> $LOG_FILE
+    if [ -z "${INFRA_NAME}" ] ; then
+        echo "The infrastructure name is void" >> $LOG_FILE
+        RETVAL=1
+    fi
+    if [ -z "${SCOPE}" ] ; then
+        echo "The scope is void" >> $LOG_FILE
+        RETVAL=1
+    fi
+    if [ -z "${COUNTRY}" ] ; then
+        echo "The country code is void, setting a default" >> $LOG_FILE
+        export COUNTRY="IT"
+    elif [ ${#COUNTRY} -ne 2 ] ; then
+        echo "The country code is wrong. It must be two characters long" >> $LOG_FILE
+        RETVAL=1
+    fi
+    if [ $RETVAL -eq 1 ] ; then
+        echo "Exiting because of errors. The SmartExecutor will not start" >> $LOG_FILE
+        exit 1
+    fi
+}
+
+function populate_head_containerxml() {
+    echo "-- populate_head_containerxml" >> $LOG_FILE
+    # We use the public FQDN if there's one. Otherwise we use the public IP
+    if [ ! -z ${PUB_FQDN_HOST} ] ; then
+        sed -i -e "s#@SMARTGEARS_HOSTNAME@#${PUB_FQDN_HOST}#g" $SM_CONF_F
+    else
         sed -i -e "s#@SMARTGEARS_HOSTNAME@#${PUBLIC_IP}#g" $SM_CONF_F
-fi
-sed -i -e "s#@SMARTGEARS_INFRASTRUCTURE_NAME@#${INFRA_NAME}#g" $SM_CONF_F
-sed -i -e "s#@SMARTGEARS_VO_NAME@#${SCOPE}#g" $SM_CONF_F
-sed -i -e "s#@SMARTGEARS_COUNTRY@#${COUNTRY}#g" $SM_CONF_F
-sed -i -e "s#@SMARTGEARS_LOCATION@#${LOCATION}#g" $SM_CONF_F
+    fi
+    sed -i -e "s#@SMARTGEARS_INFRASTRUCTURE_NAME@#${INFRA_NAME}#g" $SM_CONF_F
+    sed -i -e "s#@SMARTGEARS_VO_NAME@#${SCOPE}#g" $SM_CONF_F
+    sed -i -e "s#@SMARTGEARS_COUNTRY@#${COUNTRY}#g" $SM_CONF_F
+    sed -i -e "s#@SMARTGEARS_LOCATION@#${LOCATION}#g" $SM_CONF_F
+}
+
 {% endraw %}
 
-# Get and install the gcube security keys
-if [ -x $GET_KEYS_SCRIPT ] ; then
-    echo "Getting the infrastructure keys" >> $LOG_FILE
-    $GET_KEYS_SCRIPT ${INFRA_NAME} >> $LOG_FILE
-    rm -f $GET_KEYS_SCRIPT
-    echo "Done" >> $LOG_FILE
-else
-    echo "Not getting the infrastructure keys, the script is not available." >> $LOG_FILE
-fi
+function set_scopes_list() {
+    echo "-- set_scopes_list" >> $LOG_FILE
+    if [ -z "${SMARTGEARS_SCOPES}" ] ; then
+        SMARTGEARS_SCOPES=""
+        echo "No scopes were defined" >> $LOG_FILE
+    else
+        echo "The scopes list is $SMARTGEARS_SCOPES" >> $LOG_FILE
+    fi
+    echo "SCOPES_LIST='${SMARTGEARS_SCOPES}'" > $SM_CONF_SCOPES_F
+}
 
-/etc/init.d/${SVC} stop
+function get_smartgears_scope_tokens() {
+    # The SMARTGEARS_TOKEN variable need to be set outside the contextualization script
+    echo "-- get_smartgears_scope_tokens" >> $LOG_FILE
+    if [ -z "${SMARTGEARS_TOKEN}" ] ; then
+        echo "No infrastructure token was passed, aborting" >> $LOG_FILE
+        echo "" > $SM_CONF_TOKENS_F
+    else
+        /usr/local/bin/get-scopes $( echo ${SMARTGEARS_TOKEN}) >> $LOG_FILE
+    fi
+}
+
+function merge_container_xml() {
+    echo "-- merge_container_xml: compose the file" >> $LOG_FILE
+    cat $SM_CONF_F $SM_CONF_TOKENS_F $SM_CONF_TAIL_F > $SM_CONF_DEST_F
+    chown gcube:gcube $SM_CONF_DEST_F
+    chmod 640 $SM_CONF_DEST_F
+}
+
+function get_gcube_keys() {
+    echo "-- get_gcube_keys" >> $LOG_FILE
+    # Get and install the gcube security keys
+    if [ -x $GET_KEYS_SCRIPT ] ; then
+        echo "Getting the infrastructure keys" >> $LOG_FILE
+        $GET_KEYS_SCRIPT ${INFRA_NAME} >> $LOG_FILE
+        rm -f $GET_KEYS_SCRIPT
+        echo "Done" >> $LOG_FILE
+    else
+        echo "Not getting the infrastructure keys, the script is not available." >> $LOG_FILE
+    fi
+}
+
+function set_java_heap() {
+    echo "-- set_java_heap" >> $LOG_FILE
+    if [ $JAVA_MAX_HEAP -lt 1024 ] ; then
+        JAVA_MAX_HEAP=1024
+    fi
+    grep -v ^JAVA_HEAP $TOMCAT_DEFAULT > $TOMCAT_DEFAULT.tmp
+    echo 'JAVA_HEAP="-Xms${JAVA_MAX_HEAP}m -Xmx${JAVA_MAX_HEAP}m"' >> $TOMCAT_DEFAULT.tmp
+    mv $TOMCAT_DEFAULT.tmp $TOMCAT_DEFAULT
+}
+
+
+##############################
+#
+# Main
+#
+
+/etc/init.d/${SVC} stop >> $LOG_FILE 2>&1
 rm -fr ${SM_STATE_DIR}/*
 rm -f ${SM_DIR}/ghn.log
-sleep 20
-/usr/sbin/update-rc.d  ${SVC} enable
-/etc/init.d/${SVC} start
+
+setup_hostname
+find_public_ip
+modify_hosts_file
+smartgears_config_parameters_check
+set_scopes_list
+populate_head_containerxml
+get_smartgears_scope_tokens
+merge_container_xml
+get_gcube_keys
+set_java_heap
+
+/usr/sbin/update-rc.d  ${SVC} enable >> $LOG_FILE 2>&1
+/etc/init.d/${SVC} start >> $LOG_FILE 2>&1
 
 exit 0
 
-
-