diff --git a/src/gnome-shell.in b/src/gnome-shell.in
old mode 100644
new mode 100755
index e5ef5095e..b009ec495
--- a/src/gnome-shell.in
+++ b/src/gnome-shell.in
@@ -53,9 +53,7 @@ def start_xephyr():
     time.sleep(1)
 
     # Start some windows in our session.
-    subprocess.Popen(["xterm", "-geometry", "+30+30"])
-    subprocess.Popen(["xlogo", "-geometry", "-0-0"])
-    subprocess.Popen(["xeyes", "-geometry", "-0+30"])
+    subprocess.Popen(["gnome-terminal"])
 
     return xephyr;
 
diff --git a/tools/build/gnome-shell-build-setup.sh b/tools/build/gnome-shell-build-setup.sh
index 1f5ddd474..223500353 100755
--- a/tools/build/gnome-shell-build-setup.sh
+++ b/tools/build/gnome-shell-build-setup.sh
@@ -53,12 +53,10 @@ fi
 #
 # Non-devel packages needed by gnome-shell and its deps:
 # glxinfo, gstreamer-plugins-base, gstreamer-plugins-good,
-# python, pygobject, gnome-python (gconf),
-# Xephyr, xeyes*, xlogo*, xterm*, zenity
+# python, pygobject, gnome-python (gconf), gnome-terminal*
+# Xephyr*, zenity
 #
-# (*)ed packages are only needed because gnome-shell launches them
-# when running in Xephyr mode, and we should probably change it to use
-# less lame things.
+# (*) only needed for --xephyr
 
 # Can this be simplified? Obvious ways don't handle handle packages
 # that have been installed then removed. ('purged' status, e.g.)
@@ -82,7 +80,7 @@ if test x$system = xUbuntu -o x$system = xDebian -o x$system = xLinuxMint ; then
     libdbus-glib-1-dev libgconf2-dev libgtk2.0-dev libffi-dev \
     libgnome-menu-dev libgnome-desktop-dev librsvg2-dev libwnck-dev libgl1-mesa-dev \
     libreadline5-dev mesa-common-dev mesa-utils python-dev python-gconf python-gobject \
-    xulrunner-dev xserver-xephyr libcroco3-dev \
+    xulrunner-dev xserver-xephyr gnome-terminal libcroco3-dev \
     libgstreamer0.10-dev gstreamer0.10-plugins-base gstreamer0.10-plugins-good \
     ; do
       if ! dpkg_is_installed $pkg; then
@@ -106,7 +104,7 @@ if test x$system = xFedora ; then
     gnome-desktop-devel librsvg2-devel libwnck-devel mesa-libGL-devel python-devel pygobject2 \
     readline-devel xulrunner-devel libXdamage-devel libcroco-devel \
     gstreamer-devel gstreamer-plugins-base gstreamer-plugins-good \
-    glx-utils xorg-x11-apps xorg-x11-server-Xephyr xterm zenity \
+    glx-utils xorg-x11-server-Xephyr gnome-terminal zenity \
     ; do
       if ! rpm -q $pkg > /dev/null 2>&1; then
         reqd="$pkg $reqd"
@@ -124,7 +122,7 @@ if test x$system = xSUSE ; then
     bison flex gnome-doc-utils-devel \
     gconf2-devel libffi-devel gnome-desktop-devel librsvg-devel libwnck-devel \
     xorg-x11-proto-devel readline-devel mozilla-xulrunner190-devel \
-    libcroco-devel xorg-x11-devel xterm xorg-x11 xorg-x11-server-extra \
+    libcroco-devel xorg-x11-devel xorg-x11 xorg-x11-server-extra \
     ; do
       if ! rpm -q $pkg > /dev/null 2>&1; then
         reqd="$pkg $reqd"
@@ -144,7 +142,7 @@ if test x$system = xMandrivaLinux ; then
     bison flex gnome-common gnome-doc-utils gtk-doc intltool \
     libGConf2-devel ffi5-devel libgnomeui2-devel librsvg2-devel \
     libwnck-1-devel GL-devel readline-devel libxulrunner-devel \
-    libxdamage-devel mesa-demos x11-server-xephyr x11-apps xterm zenity \
+    libxdamage-devel mesa-demos x11-server-xephyr zenity \
     libcroco0.6-devel \
     ; do
       if ! rpm -q --whatprovides $pkg > /dev/null 2>&1; then