diff --git a/chat/chat.py b/chat/chat.py
index 42011584..45dc2251 100755
--- a/chat/chat.py
+++ b/chat/chat.py
@@ -13,14 +13,14 @@ import sys
 
 try:
 	import activity
+	from Group import *
 	from sugar_globals import *
 except ImportError:
 	from sugar import activity
+	from sugar.Group import *
 	from sugar.sugar_globals import *
 
-import BuddyList
 import richtext
-import p2p
 
 class Chat(activity.Activity):
 	def __init__(self, controller):
@@ -208,17 +208,9 @@ class GroupChat(Chat):
 		Chat.__init__(self, self)
 
 	def _start(self):
-		group = p2p.Group.get_instance()
-		
-		self._buddy_list = group.get_buddy_list()
-		self._buddy_list.add_buddy_listener(self._on_buddy_presence_event)
-
-		input_pipe = p2p.InputPipe(group, "group-chat")
-		input_pipe.listen(self.recv_message)
-		self._output_pipe = p2p.BroadcastOutputPipe(group, "group-chat")
-
-		input_pipe = p2p.InputPipe(group, "buddy-chat")
-		input_pipe.listen(self._buddy_recv_message)
+		self._group = LocalGroup()
+		self._group.add_listener(self._on_group_event)
+		self._group.join()
 
 	def _create_sidebar(self):
 		vbox = gtk.VBox(False, 6)
@@ -302,12 +294,12 @@ class GroupChat(Chat):
 			buddy.set_chat(chat)
 			chat.activity_connect_to_shell()
 
-	def _on_buddy_presence_event(self, action, buddy):
-		if action == BuddyList.ACTION_BUDDY_ADDED:
+	def _on_group_event(self, action, buddy):
+		if action == BUDDY_JOIN:
 			aniter = self._buddy_list_model.append(None)
-			self._buddy_list_model.set(aniter, self._MODEL_COL_NICK, buddy.nick(),
+			self._buddy_list_model.set(aniter, self._MODEL_COL_NICK, buddy.get_nick_name(),
 					self._MODEL_COL_ICON, None, self._MODEL_COL_BUDDY, buddy)
-		elif action == BuddyList.ACTION_BUDDY_REMOVED:
+		elif action == BUDDY_LEAVE:
 			aniter = self._get_iter_for_buddy(buddy)
 			if aniter:
 				self._buddy_list_model.remove(aniter)
diff --git a/chat/network.py b/p2p/network.py
similarity index 100%
rename from chat/network.py
rename to p2p/network.py
diff --git a/chat/presence.py b/p2p/presence.py
similarity index 97%
rename from chat/presence.py
rename to p2p/presence.py
index 8b88492f..c1dcab4e 100644
--- a/chat/presence.py
+++ b/p2p/presence.py
@@ -33,7 +33,7 @@ class PresenceDiscovery(object):
 		self.server.ResolveService(int(interface), int(protocol), name, stype, domain, avahi.PROTO_UNSPEC, dbus.UInt32(0), reply_handler=reply_handler, error_handler=error_handler)
 
 	def new_service(self, interface, protocol, name, stype, domain, flags):
-#		print "Found service '%s' (%d) of type '%s' in domain '%s' on %i.%i." % (name, flags, stype, domain, interface, protocol)
+		print "Found service '%s' (%d) of type '%s' in domain '%s' on %i.%i." % (name, flags, stype, domain, interface, protocol)
 		for listener in self._service_listeners:
 			listener(ACTION_SERVICE_NEW, interface, protocol, name, stype, domain, flags)
 
diff --git a/setup-run-from-source.sh b/setup-run-from-source.sh
index 69a68477..35559d25 100755
--- a/setup-run-from-source.sh
+++ b/setup-run-from-source.sh
@@ -1,7 +1,9 @@
 #!/bin/sh
 
+export PYTHONPATH=`pwd`/p2p
+
 # for activity.py
-export PYTHONPATH=`pwd`/shell/src/
+export PYTHONPATH=$PYTHONPATH:`pwd`/shell/src/
 
 # for sugar_globals.py
 export PYTHONPATH=$PYTHONPATH:`pwd`/