diff --git a/Gruntfile.js b/Gruntfile.js
index b354171234..6c61a18c68 100644
--- a/Gruntfile.js
+++ b/Gruntfile.js
@@ -3,13 +3,8 @@ var execFile = require('child_process').execFile;
 var packagejson = require('./package.json');
 var electron = require('electron-prebuilt');
 
-var dockerHostname = packagejson['docker-version'].indexOf('rc') !== -1 ? 'test.docker.com' : 'get.docker.com';
-
-var WINDOWS_DOCKER_URL = 'https://' + dockerHostname + '/builds/Windows/x86_64/docker-' + packagejson['docker-version'] + '.exe';
-var DARWIN_DOCKER_URL = 'https://' + dockerHostname + '/builds/Darwin/x86_64/docker-' + packagejson['docker-version'];
 var WINDOWS_DOCKER_MACHINE_URL = 'https://github.com/docker/machine/releases/download/v' + packagejson['docker-machine-version'] + '/docker-machine_windows-amd64.exe';
 var DARWIN_DOCKER_MACHINE_URL = 'https://github.com/docker/machine/releases/download/v' + packagejson['docker-machine-version'] + '/docker-machine_darwin-amd64';
-var DARWIN_COMPOSE_URL = 'https://github.com/docker/compose/releases/download/' + packagejson['docker-compose-version'] + '/docker-compose-Darwin-x86_64';
 
 module.exports = function (grunt) {
   require('load-grunt-tasks')(grunt);
@@ -143,20 +138,10 @@ module.exports = function (grunt) {
 
     // docker binaries
     'download-binary': {
-      docker: {
-        version: packagejson['docker-version'],
-        binary: path.join('resources', 'docker'),
-        download: 'curl:docker'
-      },
       'docker-machine': {
         version: packagejson['docker-machine-version'],
         binary: path.join('resources', 'docker-machine'),
         download: 'curl:docker-machine'
-      },
-      'docker-compose': {
-        version: packagejson['docker-compose-version'],
-        binary: path.join('resources', 'docker-compose'),
-        download: 'curl:docker-compose'
       }
     },
 
@@ -221,17 +206,9 @@ module.exports = function (grunt) {
 
     // download binaries
     curl: {
-      docker: {
-        src: process.platform === 'win32' ? WINDOWS_DOCKER_URL : DARWIN_DOCKER_URL,
-        dest: process.platform === 'win32' ? path.join('resources', 'docker.exe') : path.join('resources', 'docker')
-      },
       'docker-machine': {
         src: process.platform === 'win32' ? WINDOWS_DOCKER_MACHINE_URL : DARWIN_DOCKER_MACHINE_URL,
         dest: process.platform === 'win32' ? path.join('resources', 'docker-machine.exe') : path.join('resources', 'docker-machine')
-      },
-      'docker-compose': {
-        src: DARWIN_COMPOSE_URL,
-        dest: 'resources/docker-compose'
       }
     },
 
@@ -256,22 +233,6 @@ module.exports = function (grunt) {
       }
     },
 
-    // javascript
-    babel: {
-      options: {
-        sourceMap: 'inline',
-        blacklist: 'regenerator'
-      },
-      dist: {
-        files: [{
-          expand: true,
-          cwd: 'src/',
-          src: ['**/*.js'],
-          dest: 'build/',
-        }]
-      }
-    },
-
     plistbuddy: {
       addBundleURLTypes: {
         method: 'Add',
@@ -307,6 +268,22 @@ module.exports = function (grunt) {
       }
     },
 
+    // javascript
+    babel: {
+      options: {
+        sourceMap: 'inline',
+        blacklist: 'regenerator'
+      },
+      dist: {
+        files: [{
+          expand: true,
+          cwd: 'src/',
+          src: ['**/*.js'],
+          dest: 'build/',
+        }]
+      }
+    },
+
     shell: {
       electron: {
         command: electron + ' ' + 'build',
@@ -361,14 +338,10 @@ module.exports = function (grunt) {
     }
   });
 
-  if (process.platform === 'win32') {
-    grunt.registerTask('default', ['download-binary:docker', 'download-binary:docker-machine', 'newer:babel', 'less', 'newer:copy:dev', 'shell:electron', 'watchChokidar']);
-  } else {
-    grunt.registerTask('default', ['download-binary', 'newer:babel', 'less', 'newer:copy:dev', 'shell:electron', 'watchChokidar']);
-  }
+  grunt.registerTask('default', ['download-binary', 'newer:babel', 'less', 'newer:copy:dev', 'shell:electron', 'watchChokidar']);
 
   if (process.platform === 'win32') {
-    grunt.registerTask('release', ['clean:release', 'download-binary:docker', 'download-binary:docker-machine', 'less', 'copy:dev', 'electron:windows', 'copy:windows', 'rcedit:exes', 'prompt:create-windows-installer', 'create-windows-installer', 'rename:installer']);
+    grunt.registerTask('release', ['clean:release', 'download-binary', 'babel', 'less', 'copy:dev', 'electron:windows', 'copy:windows', 'rcedit:exes', 'prompt:create-windows-installer', 'create-windows-installer', 'rename:installer']);
   } else {
     grunt.registerTask('release', ['clean:release', 'download-binary', 'babel', 'less', 'copy:dev', 'electron:osx', 'copy:osx', 'plistbuddy', 'shell:sign', 'shell:zip']);
   }
diff --git a/package.json b/package.json
index f76476b0bd..8b41e88ef6 100644
--- a/package.json
+++ b/package.json
@@ -22,9 +22,8 @@
       "url": "http://www.apache.org/licenses/LICENSE-2.0.html"
     }
   ],
-  "docker-version": "1.8.0-rc1",
-  "docker-machine-version": "0.4.0-rc1",
-  "docker-compose-version": "1.4.0rc2",
+  "docker-version": "1.8.0-rc2",
+  "docker-machine-version": "0.4.0-rc2",
   "electron-version": "0.27.2",
   "virtualbox-version": "5.0.0",
   "virtualbox-filename": "VirtualBox-5.0.0.pkg",
diff --git a/resources/terminal b/resources/terminal
index af5af69872..ea55c18810 100755
--- a/resources/terminal
+++ b/resources/terminal
@@ -1,8 +1,7 @@
 #!/bin/bash
 
 DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )"
-PATH=$DIR:$PATH
-CMD="export PATH='$PATH' && clear && $*"
+CMD="clear && $*"
 
 ITERM_EXISTS=`osascript <<EOF
 set doesExist to false
diff --git a/src/stores/SetupStore.js b/src/stores/SetupStore.js
index b1f15f00c5..9d8418bbe9 100644
--- a/src/stores/SetupStore.js
+++ b/src/stores/SetupStore.js
@@ -73,7 +73,8 @@ var _steps = [{
 
     var isoversion = machine.isoversion();
     var packagejson = util.packagejson();
-    if (!isoversion || util.compareVersions(isoversion, packagejson['docker-version']) < 0) {
+    var packagejsonVersion = packagejson['docker-version'].split('-')[0];
+    if (!isoversion || util.compareVersions(isoversion, packagejsonVersion) < 0) {
       yield machine.start();
       yield machine.upgrade();
     }
diff --git a/src/utils/DockerMachineUtil.js b/src/utils/DockerMachineUtil.js
index 0d37f9f48f..915bb8326c 100644
--- a/src/utils/DockerMachineUtil.js
+++ b/src/utils/DockerMachineUtil.js
@@ -5,19 +5,17 @@ import fs from 'fs';
 import util from './Util';
 import resources from './ResourcesUtil';
 
-var NAME = 'docker-vm';
-
 var DockerMachine = {
   command: function () {
     return resources.dockerMachine();
   },
   name: function () {
-    return NAME;
+    return 'docker-vm';
   },
   isoversion: function (machineName = this.name()) {
     try {
-      var data = fs.readFileSync(path.join(util.home(), '.docker', 'machine', 'machines', machineName, 'boot2docker-virtualbox.iso'), 'utf8');
-      var match = data.match(/Docker v(\d+\.\d+\.\d+)/);
+      var data = fs.readFileSync(path.join(util.home(), '.docker', 'machine', 'machines', machineName, 'boot2docker.iso'), 'utf8');
+      var match = data.match(/Boot2Docker-v(\d+\.\d+\.\d+)/);
       if (match) {
         return match[1];
       } else {