diff --git a/Gemfile b/Gemfile
index 1e64aefe1..9df0d158a 100644
--- a/Gemfile
+++ b/Gemfile
@@ -11,6 +11,7 @@ gem "mario", "~> 0.0.6"
 # Gems required for testing only. To install run
 # gem bundle test
 group :test do
+  gem "rake"
   gem "contest", ">= 0.1.2"
   gem "mocha"
   gem "ruby-debug", ">= 0.10.3" if RUBY_VERSION < '1.9'
diff --git a/lib/vagrant/action/vm/package.rb b/lib/vagrant/action/vm/package.rb
index 3647890f0..afb338386 100644
--- a/lib/vagrant/action/vm/package.rb
+++ b/lib/vagrant/action/vm/package.rb
@@ -21,6 +21,13 @@ module Vagrant
           compress
 
           @app.call(env)
+
+          cleanup if env.error?
+        end
+
+        def cleanup
+          # Cleanup any packaged files if the packaging failed at some point.
+          File.delete(tar_path) if File.exist?(tar_path)
         end
 
         def verify_included_files
diff --git a/test/test_helper.rb b/test/test_helper.rb
index 142293ca1..776b6ba9e 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -1,10 +1,3 @@
-begin
-  require File.expand_path('../.bundle/environment', __FILE__)
-rescue LoadError
-  # Fallback on doing the resolve at runtime.
-  require "rubygems"
-end
-
 # ruby-debug, not necessary, but useful if we have it
 begin
   require 'ruby-debug'
diff --git a/test/vagrant/action/vm/package_test.rb b/test/vagrant/action/vm/package_test.rb
index 3e7fc7666..7e2a852b4 100644
--- a/test/vagrant/action/vm/package_test.rb
+++ b/test/vagrant/action/vm/package_test.rb
@@ -68,6 +68,7 @@ class PackageVMActionTest < Test::Unit::TestCase
         @instance.expects(:verify_included_files).in_sequence(seq).returns(true)
         @instance.expects(:compress).in_sequence(seq)
         @app.expects(:call).with(@env).in_sequence(seq)
+        @instance.expects(:cleanup).never
 
         @instance.call(@env)
       end
@@ -88,6 +89,40 @@ class PackageVMActionTest < Test::Unit::TestCase
         assert @env.error?
         assert_equal :package_requires_export, @env.error.first
       end
+
+      should "run cleanup if environment errors" do
+        seq = sequence("seq")
+        @instance.expects(:verify_included_files).in_sequence(seq).returns(true)
+        @instance.expects(:compress).in_sequence(seq)
+        @app.expects(:call).with(@env).in_sequence(seq)
+        @instance.expects(:cleanup).in_sequence(seq)
+
+        @env.error!(:foo)
+        @instance.call(@env)
+      end
+    end
+
+    context "cleaning up" do
+      setup do
+        File.stubs(:exist?).returns(false)
+        File.stubs(:delete)
+
+        @instance.stubs(:tar_path).returns("foo")
+      end
+
+      should "do nothing if the file doesn't exist" do
+        File.expects(:exist?).with(@instance.tar_path).returns(false)
+        File.expects(:delete).never
+
+        @instance.cleanup
+      end
+
+      should "delete the packaged box if it exists" do
+        File.expects(:exist?).returns(true)
+        File.expects(:delete).with(@instance.tar_path).once
+
+        @instance.cleanup
+      end
     end
 
     context "verifying included files" do
diff --git a/vagrant.gemspec b/vagrant.gemspec
index f0c0eca3c..8ce30253a 100644
--- a/vagrant.gemspec
+++ b/vagrant.gemspec
@@ -9,7 +9,7 @@ Gem::Specification.new do |s|
 
   s.required_rubygems_version = Gem::Requirement.new("> 1.3.1") if s.respond_to? :required_rubygems_version=
   s.authors = ["Mitchell Hashimoto", "John Bender"]
-  s.date = %q{2010-07-17}
+  s.date = %q{2010-07-18}
   s.default_executable = %q{vagrant}
   s.description = %q{Vagrant is a tool for building and distributing virtualized development environments.}
   s.email = ["mitchell.hashimoto@gmail.com", "john.m.bender@gmail.com"]
@@ -208,94 +208,94 @@ Gem::Specification.new do |s|
   s.homepage = %q{http://github.com/mitchellh/vagrant}
   s.rdoc_options = ["--charset=UTF-8"]
   s.require_paths = ["lib"]
-  s.rubygems_version = %q{1.3.6}
+  s.rubygems_version = %q{1.3.7}
   s.summary = %q{Vagrant is a tool for building and distributing virtualized development environments.}
   s.test_files = [
     "test/test_helper.rb",
-     "test/vagrant/vm_test.rb",
-     "test/vagrant/command_test.rb",
+     "test/vagrant/action/box/destroy_test.rb",
+     "test/vagrant/action/box/download_test.rb",
+     "test/vagrant/action/box/unpackage_test.rb",
+     "test/vagrant/action/box/verify_test.rb",
+     "test/vagrant/action/builder_test.rb",
+     "test/vagrant/action/env/error_halt_test.rb",
+     "test/vagrant/action/env/set_test.rb",
      "test/vagrant/action/environment_test.rb",
      "test/vagrant/action/exception_catcher_test.rb",
-     "test/vagrant/action/box/verify_test.rb",
-     "test/vagrant/action/box/destroy_test.rb",
-     "test/vagrant/action/box/unpackage_test.rb",
-     "test/vagrant/action/box/download_test.rb",
-     "test/vagrant/action/vm/suspend_test.rb",
      "test/vagrant/action/vm/boot_test.rb",
-     "test/vagrant/action/vm/package_test.rb",
-     "test/vagrant/action/vm/share_folders_test.rb",
-     "test/vagrant/action/vm/forward_ports_helpers_test.rb",
-     "test/vagrant/action/vm/persist_test.rb",
-     "test/vagrant/action/vm/nfs_test.rb",
-     "test/vagrant/action/vm/clear_nfs_exports_test.rb",
-     "test/vagrant/action/vm/destroy_test.rb",
-     "test/vagrant/action/vm/halt_test.rb",
-     "test/vagrant/action/vm/clear_forwarded_ports_test.rb",
      "test/vagrant/action/vm/check_guest_additions_test.rb",
-     "test/vagrant/action/vm/destroy_unused_network_interfaces_test.rb",
-     "test/vagrant/action/vm/import_test.rb",
-     "test/vagrant/action/vm/nfs_helpers_test.rb",
-     "test/vagrant/action/vm/customize_test.rb",
-     "test/vagrant/action/vm/network_test.rb",
-     "test/vagrant/action/vm/export_test.rb",
-     "test/vagrant/action/vm/provision_test.rb",
-     "test/vagrant/action/vm/clear_shared_folders_test.rb",
      "test/vagrant/action/vm/clean_machine_folder_test.rb",
-     "test/vagrant/action/vm/resume_test.rb",
-     "test/vagrant/action/vm/match_mac_address_test.rb",
+     "test/vagrant/action/vm/clear_forwarded_ports_test.rb",
+     "test/vagrant/action/vm/clear_nfs_exports_test.rb",
+     "test/vagrant/action/vm/clear_shared_folders_test.rb",
+     "test/vagrant/action/vm/customize_test.rb",
+     "test/vagrant/action/vm/destroy_test.rb",
+     "test/vagrant/action/vm/destroy_unused_network_interfaces_test.rb",
+     "test/vagrant/action/vm/export_test.rb",
+     "test/vagrant/action/vm/forward_ports_helpers_test.rb",
      "test/vagrant/action/vm/forward_ports_test.rb",
-     "test/vagrant/action/builder_test.rb",
-     "test/vagrant/action/env/set_test.rb",
-     "test/vagrant/action/env/error_halt_test.rb",
-     "test/vagrant/environment_test.rb",
-     "test/vagrant/util_test.rb",
+     "test/vagrant/action/vm/halt_test.rb",
+     "test/vagrant/action/vm/import_test.rb",
+     "test/vagrant/action/vm/match_mac_address_test.rb",
+     "test/vagrant/action/vm/network_test.rb",
+     "test/vagrant/action/vm/nfs_helpers_test.rb",
+     "test/vagrant/action/vm/nfs_test.rb",
+     "test/vagrant/action/vm/package_test.rb",
+     "test/vagrant/action/vm/persist_test.rb",
+     "test/vagrant/action/vm/provision_test.rb",
+     "test/vagrant/action/vm/resume_test.rb",
+     "test/vagrant/action/vm/share_folders_test.rb",
+     "test/vagrant/action/vm/suspend_test.rb",
+     "test/vagrant/action_test.rb",
+     "test/vagrant/active_list_test.rb",
      "test/vagrant/box_test.rb",
      "test/vagrant/busy_test.rb",
-     "test/vagrant/provisioners/base_test.rb",
-     "test/vagrant/provisioners/chef_test.rb",
-     "test/vagrant/provisioners/chef_server_test.rb",
-     "test/vagrant/provisioners/chef_solo_test.rb",
-     "test/vagrant/systems/linux_test.rb",
-     "test/vagrant/config_test.rb",
-     "test/vagrant/hosts/base_test.rb",
-     "test/vagrant/hosts/linux_test.rb",
-     "test/vagrant/hosts/bsd_test.rb",
-     "test/vagrant/active_list_test.rb",
+     "test/vagrant/command_test.rb",
      "test/vagrant/commands/base_test.rb",
-     "test/vagrant/commands/reload_test.rb",
-     "test/vagrant/commands/ssh_config_test.rb",
-     "test/vagrant/commands/suspend_test.rb",
-     "test/vagrant/commands/package_test.rb",
-     "test/vagrant/commands/status_test.rb",
-     "test/vagrant/commands/init_test.rb",
-     "test/vagrant/commands/destroy_test.rb",
-     "test/vagrant/commands/halt_test.rb",
-     "test/vagrant/commands/box/remove_test.rb",
      "test/vagrant/commands/box/add_test.rb",
      "test/vagrant/commands/box/list_test.rb",
-     "test/vagrant/commands/up_test.rb",
+     "test/vagrant/commands/box/remove_test.rb",
+     "test/vagrant/commands/destroy_test.rb",
+     "test/vagrant/commands/halt_test.rb",
+     "test/vagrant/commands/init_test.rb",
+     "test/vagrant/commands/package_test.rb",
      "test/vagrant/commands/provision_test.rb",
+     "test/vagrant/commands/reload_test.rb",
      "test/vagrant/commands/resume_test.rb",
+     "test/vagrant/commands/ssh_config_test.rb",
      "test/vagrant/commands/ssh_test.rb",
-     "test/vagrant/resource_logger_test.rb",
+     "test/vagrant/commands/status_test.rb",
+     "test/vagrant/commands/suspend_test.rb",
+     "test/vagrant/commands/up_test.rb",
+     "test/vagrant/config_test.rb",
      "test/vagrant/downloaders/base_test.rb",
      "test/vagrant/downloaders/file_test.rb",
      "test/vagrant/downloaders/http_test.rb",
+     "test/vagrant/environment_test.rb",
+     "test/vagrant/hosts/base_test.rb",
+     "test/vagrant/hosts/bsd_test.rb",
+     "test/vagrant/hosts/linux_test.rb",
+     "test/vagrant/provisioners/base_test.rb",
+     "test/vagrant/provisioners/chef_server_test.rb",
+     "test/vagrant/provisioners/chef_solo_test.rb",
+     "test/vagrant/provisioners/chef_test.rb",
+     "test/vagrant/resource_logger_test.rb",
+     "test/vagrant/ssh_session_test.rb",
+     "test/vagrant/ssh_test.rb",
+     "test/vagrant/systems/linux_test.rb",
+     "test/vagrant/util/plain_logger_test.rb",
+     "test/vagrant/util/platform_test.rb",
      "test/vagrant/util/stacked_proc_runner_test.rb",
      "test/vagrant/util/template_renderer_test.rb",
      "test/vagrant/util/translator_test.rb",
-     "test/vagrant/util/platform_test.rb",
-     "test/vagrant/util/plain_logger_test.rb",
-     "test/vagrant/ssh_session_test.rb",
-     "test/vagrant/action_test.rb",
-     "test/vagrant/ssh_test.rb"
+     "test/vagrant/util_test.rb",
+     "test/vagrant/vm_test.rb"
   ]
 
   if s.respond_to? :specification_version then
     current_version = Gem::Specification::CURRENT_SPECIFICATION_VERSION
     s.specification_version = 3
 
-    if Gem::Version.new(Gem::RubyGemsVersion) >= Gem::Version.new('1.2.0') then
+    if Gem::Version.new(Gem::VERSION) >= Gem::Version.new('1.2.0') then
       s.add_runtime_dependency(%q<virtualbox>, ["~> 0.7.3"])
       s.add_runtime_dependency(%q<net-ssh>, [">= 2.0.19"])
       s.add_runtime_dependency(%q<net-scp>, [">= 1.0.2"])