diff --git a/CHANGELOG.md b/CHANGELOG.md
index dea7b712c..1da8dca7e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,7 +15,10 @@ IMPROVEMENTS:
 
 BUG FIXES:
 
-  - core/nfs: Exporting sub-directories of other exported folders now
+  - Boxes downloaded as part of `vagrant up` are now done so _prior_ to
+    config validation. This allows Vagrantfiles to references files that
+    may be in the box itself. [GH-1061]
+  - NFS synced folders exporting sub-directories of other exported folders now
     works properly. [GH-785]
 
 ## 1.2.3 (July 9, 2013)
diff --git a/lib/vagrant/action/builtin/handle_box_url.rb b/lib/vagrant/action/builtin/handle_box_url.rb
index 7cbac6570..5dbbf65fa 100644
--- a/lib/vagrant/action/builtin/handle_box_url.rb
+++ b/lib/vagrant/action/builtin/handle_box_url.rb
@@ -1,5 +1,7 @@
 require "thread"
 
+require "log4r"
+
 module Vagrant
   module Action
     module Builtin
@@ -13,9 +15,16 @@ module Vagrant
 
         def initialize(app, env)
           @app = app
+          @logger = Log4r::Logger.new("vagrant::action::builtin::handle_box_url")
         end
 
         def call(env)
+          if !env[:machine].config.vm.box || !env[:machine].config.vm.box_url
+            @logger.info("Skipping HandleBoxUrl because box or box_url not set.")
+            @app.call(env)
+            return
+          end
+
           if !env[:machine].box
             # Get a "big lock" to make sure that our more fine grained
             # lock access is thread safe.
diff --git a/plugins/providers/virtualbox/action.rb b/plugins/providers/virtualbox/action.rb
index 513583d4e..972c5c8c4 100644
--- a/plugins/providers/virtualbox/action.rb
+++ b/plugins/providers/virtualbox/action.rb
@@ -293,12 +293,21 @@ module VagrantPlugins
       def self.action_up
         Vagrant::Action::Builder.new.tap do |b|
           b.use CheckVirtualbox
+
+          # Handle box_url downloading early so that if the Vagrantfile
+          # references any files in the box or something it all just
+          # works fine.
+          b.use Call, Created do |env, b2|
+            if !env[:result]
+              b2.use HandleBoxUrl
+            end
+          end
+
           b.use ConfigValidate
           b.use Call, Created do |env, b2|
             # If the VM is NOT created yet, then do the setup steps
             if !env[:result]
               b2.use CheckAccessible
-              b2.use HandleBoxUrl
               b2.use Import
               b2.use MatchMACAddress
             end