diff --git a/tools/tools/nanobsd/embedded/common b/tools/tools/nanobsd/embedded/common
index c0bbae9fb7bd..16e1ea75f019 100644
--- a/tools/tools/nanobsd/embedded/common
+++ b/tools/tools/nanobsd/embedded/common
@@ -86,7 +86,7 @@ NANO_CFG_BASE=$(pwd)
 NANO_CFG_BASE=$(realpath ${NANO_CFG_BASE}/..)
 NANO_SRC=$(realpath ${NANO_CFG_BASE}/../../..)
 #### XXX share obj 
-NANO_OBJ=${NANO_SRC}/../$NANO_NAME/obj
+NANO_OBJ=$(realpath ${NANO_SRC}/../$NANO_NAME/obj)
 # Where cust_pkg() finds packages to install
 #XXX: Is this the right place?
 #NANO_PORTS=$(realpath ${NANO_SRC}/../ports)
@@ -296,7 +296,7 @@ create_diskimage_mbr ( ) (
 		rm -fr ${NANO_OBJ}/_.${i}*
 	done
 
-	# Populate the FAT partition
+	# Populate the FAT partition, if needed
 	if [-n "${NANO_SLICE_FAT}" ]; then
 		echo Creating MSDOS partition for kernel
 		newfs_msdos -C ${NANO_SLICE_FAT_SIZE} -F 16 -L ${NANO_NAME} \
@@ -305,6 +305,11 @@ create_diskimage_mbr ( ) (
 		# makefs -t msdos once that's supported
 	fi
 
+	# Populate the Powerpc boot image, if needed
+	if [ "${NANO_LAYOUT}" = powerpc64-ibm ]; then
+		dd if=${NANO_WORLDDIR}/boot/boot1.elf of=${NANO_OBJ}/_.s1 bs=800k count=1 conv=sync
+	fi
+
 	# Populate the / partition, and place it into a slice with a
 	# bsd label
 	[ -z ${NANO_NOPRIV_BUILD} ] || extra="-F ${NANO_METALOG}"
@@ -357,9 +362,9 @@ create_diskimage_mbr ( ) (
 		# boot image is on a special partition, ala std-embedded, but that
 		# partition isn't FAT with special files, but a copy of the boot
 		# loader itself.
-		mkimg ${fmtarg} -s mbr -p ppcboot:=${NANO_WORLDDIR}/boot/boot1.elf \
+		mkimg -a 1 ${fmtarg} -s mbr -p ppcboot:=${NANO_OBJ}/_.s1 \
 			-p ${s2}:=${NANO_OBJ}/_.s2 \
-			-p ${s3}:=${NANO_OBJ}/_.s3 \
+			-p ${s3}:=${NANO_OBJ}/_.s3a \
 			-o ${NANO_OBJ}/_.disk.image.${NANO_NAME}${fmt}
 		;;
 	esac
diff --git a/tools/tools/nanobsd/embedded/qemu-powerpc64.cfg b/tools/tools/nanobsd/embedded/qemu-powerpc64.cfg
index 00f177a7c807..3789ee8098cc 100644
--- a/tools/tools/nanobsd/embedded/qemu-powerpc64.cfg
+++ b/tools/tools/nanobsd/embedded/qemu-powerpc64.cfg
@@ -31,6 +31,6 @@ NANO_KERNEL=GENERIC64
 NANO_DRIVE=ada0
 NANO_NAME=qemu-powerpc64
 
-qemu_env
+NANO_DISKIMAGE_FORMAT=qcow2
 
 . common	# Pull in common definitions, keep last