diff -Naur catalyst/modules/catalyst_support.py catalyst-xz/modules/catalyst_support.py
--- catalyst/modules/catalyst_support.py	2013-12-13 21:24:46.000000000 -0500
+++ catalyst-xz/modules/catalyst_support.py	2013-12-13 20:53:14.898398000 -0500
@@ -72,6 +72,8 @@
 				_ = 'tar-tvz'
 			elif file.endswith('.tbz2') or file.endswith('.tar.bz2'):
 				_ = 'tar-tvj'
+			elif file.endswith('.xz') or file.endswith('.tar.xz'):
+				_ = 'tar-tvJ'
 			elif file.endswith('.tar'):
 				_ = 'tar-tv'
 
@@ -109,6 +111,7 @@
 	"tar-tv":[calc_contents,"tar tvf %(file)s"],
 	"tar-tvz":[calc_contents,"tar tvzf %(file)s"],
 	"tar-tvj":[calc_contents,"tar -I lbzip2 -tvf %(file)s"],
+	"tar-tvJ":[calc_contents,"tar -I pixz -tvf %(file)s"],
 	"isoinfo-l":[calc_contents,"isoinfo -l -i %(file)s"],
 	# isoinfo-f should be a last resort only
 	"isoinfo-f":[calc_contents,"isoinfo -f -i %(file)s"],
diff -Naur catalyst/modules/generic_stage_target.py catalyst-xz/modules/generic_stage_target.py
--- catalyst/modules/generic_stage_target.py	2013-12-13 21:24:45.000000000 -0500
+++ catalyst-xz/modules/generic_stage_target.py	2013-12-13 20:53:14.923843000 -0500
@@ -295,7 +295,7 @@
 
 	def set_target_path(self):
 		self.settings["target_path"]=normpath(self.settings["storedir"]+\
-			"/builds/"+self.settings["target_subpath"]+".tar.bz2")
+			"/builds/"+self.settings["target_subpath"]+".tar.xz")
 		if "AUTORESUME" in self.settings\
 			and os.path.exists(self.settings["autoresume_path"]+\
 				"setup_target_path"):
@@ -381,7 +381,10 @@
 				"/tmp/"+self.settings["source_subpath"]+"/")
 		else:
 			self.settings["source_path"]=normpath(self.settings["storedir"]+\
-				"/builds/"+self.settings["source_subpath"]+".tar.bz2")
+				"/builds/"+self.settings["source_subpath"]+".tar.xz")
+			if not os.path.isfile(self.settings["source_path"]):
+				self.settings["source_path"]=normpath(self.settings["storedir"]+\
+					"/builds/"+self.settings["source_subpath"]+".tar.bz2")
 			if os.path.isfile(self.settings["source_path"]):
 				# XXX: Is this even necessary if the previous check passes?
 				if os.path.exists(self.settings["source_path"]):
@@ -395,7 +398,7 @@
 			print "\tseedcache in the options of catalyst.conf the source path"
 			print "\twill then be "+\
 				normpath(self.settings["storedir"]+"/builds/"+\
-				self.settings["source_subpath"]+".tar.bz2\n")
+				self.settings["source_subpath"]+".tar.xz\n")
 
 	def set_dest_path(self):
 		if "root_path" in self.settings:
@@ -653,9 +656,13 @@
 					self.settings["source_path"]+"\nto "+\
 					self.settings["chroot_path"]+\
 						" (This may take some time) ...\n"
-				if "bz2" == self.settings["chroot_path"][-3:]:
+				print "fuck this file"+self.settings["source_path"]
+				if "bz2" == self.settings["source_path"][-3:]:
 					unpack_cmd="tar -I lbzip2 -xpf "+self.settings["source_path"]+" -C "+\
 						self.settings["chroot_path"]
+				elif "xz" == self.settings["source_path"][-2:]:
+					unpack_cmd="tar -I pixz -xpf "+self.settings["source_path"]+" -C "+\
+						self.settings["chroot_path"]
 				else:
 					unpack_cmd="tar -I lbzip2 -xpf "+self.settings["source_path"]+" -C "+\
 						self.settings["chroot_path"]
@@ -668,9 +675,12 @@
 				self.settings["source_path"]+"\nto "+\
 				self.settings["chroot_path"]+\
 				" (This may take some time) ...\n"
-			if "bz2" == self.settings["chroot_path"][-3:]:
+			if "bz2" == self.settings["source_path"][-3:]:
 				unpack_cmd="tar -I lbzip2 -xpf "+self.settings["source_path"]+" -C "+\
 					self.settings["chroot_path"]
+			elif "xz" == self.settings["source_path"][-2:]:
+				unpack_cmd="tar -I pixz -xpf "+self.settings["source_path"]+" -C "+\
+					self.settings["chroot_path"]
 			else:
 				unpack_cmd="tar -I lbzip2 -xpf "+self.settings["source_path"]+" -C "+\
 					self.settings["chroot_path"]
@@ -770,8 +780,10 @@
 				read_from_clst(self.settings["snapshot_cache_path"]+\
 				"catalyst-hash")
 			destdir=self.settings["snapshot_cache_path"]
-			if "bz2" == self.settings["chroot_path"][-3:]:
+			if "bz2" == self.settings["snapshot_path"][-3:]:
 				unpack_cmd="tar -I lbzip2 -xpf "+self.settings["snapshot_path"]+" -C "+destdir
+			elif "xz" == self.settings["snapshot_path"][-3:]:
+				unpack_cmd="tar -I pixz -xpf "+self.settings["snapshot_path"]+" -C "+destdir
 			else:
 				unpack_cmd="tar xpf "+self.settings["snapshot_path"]+" -C "+destdir
 			unpack_errmsg="Error unpacking snapshot"
@@ -789,9 +801,12 @@
 			cleanup_errmsg="Error removing existing snapshot directory."
 			cleanup_msg=\
 				"Cleaning up existing portage tree (This can take a long time)..."
-			if "bz2" == self.settings["chroot_path"][-3:]:
+			if "bz2" == self.settings["snapshot_path"][-3:]:
 				unpack_cmd="tar -I lbzip2 -xpf "+self.settings["snapshot_path"]+" -C "+\
 					self.settings["chroot_path"]+"/usr"
+			elif "xz" == self.settings["snapshot_path"][-3:]:
+				unpack_cmd="tar -I pixz -xpf "+self.settings["snapshot_path"]+" -C "+\
+					self.settings["chroot_path"]+"/usr"
 			else:
 				unpack_cmd="tar xpf "+self.settings["snapshot_path"]+" -C "+\
 					self.settings["chroot_path"]+"/usr"
@@ -1215,7 +1230,7 @@
 
 			print "Creating stage tarball..."
 
-			cmd("tar -I lbzip2 -cpf "+self.settings["target_path"]+" -C "+\
+			cmd("tar -I pixz -cpf "+self.settings["target_path"]+" -C "+\
 				self.settings["stage_path"]+" .",\
 				"Couldn't create stage tarball",env=self.env)
 
diff -Naur catalyst/modules/livecd_stage2_target.py catalyst-xz/modules/livecd_stage2_target.py
--- catalyst/modules/livecd_stage2_target.py	2013-12-13 21:24:45.000000000 -0500
+++ catalyst-xz/modules/livecd_stage2_target.py	2013-12-13 20:53:14.886987000 -0500
@@ -33,7 +33,7 @@
 		file_locate(self.settings, ["cdtar","controller_file"])
 
 	def set_source_path(self):
-		self.settings["source_path"]=normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.bz2")
+		self.settings["source_path"]=normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.xz")
 		if os.path.isfile(self.settings["source_path"]):
 			self.settings["source_path_hash"]=generate_hash(self.settings["source_path"])
 		else:
diff -Naur catalyst/modules/snapshot_target.py catalyst-xz/modules/snapshot_target.py
--- catalyst/modules/snapshot_target.py	2013-12-13 21:24:44.000000000 -0500
+++ catalyst-xz/modules/snapshot_target.py	2013-12-13 20:53:14.922792000 -0500
@@ -19,7 +19,7 @@
 		self.settings["target_subpath"]="portage"
 		st=self.settings["storedir"]
 		self.settings["snapshot_path"]=normpath(st+"/snapshots/portage-"+self.settings["version_stamp"]\
-			+".tar.bz2")
+			+".tar.xz")
 		self.settings["tmp_path"]=normpath(st+"/tmp/"+self.settings["target_subpath"])
 
 	def setup(self):
@@ -50,7 +50,7 @@
 			self.settings["portdir"]+"/ "+mytmp+"/portage/","Snapshot failure",env=self.env)
 
 		print "Compressing Portage snapshot tarball..."
-		cmd("tar -I lbzip2 -cf "+self.settings["snapshot_path"]+" -C "+mytmp+" portage",\
+		cmd("tar -I pixz -cf "+self.settings["snapshot_path"]+" -C "+mytmp+" portage",\
 			"Snapshot creation failure",env=self.env)
 
 		self.gen_contents_file(self.settings["snapshot_path"])
diff -Naur catalyst/modules/stage2_target.py catalyst-xz/modules/stage2_target.py
--- catalyst/modules/stage2_target.py	2013-12-13 21:24:44.000000000 -0500
+++ catalyst-xz/modules/stage2_target.py	2013-12-13 20:53:14.887345000 -0500
@@ -19,7 +19,7 @@
 		if "SEEDCACHE" in self.settings and os.path.isdir(normpath(self.settings["storedir"]+"/tmp/"+self.settings["source_subpath"]+"/tmp/stage1root/")):
 			self.settings["source_path"]=normpath(self.settings["storedir"]+"/tmp/"+self.settings["source_subpath"]+"/tmp/stage1root/")
 		else:
-			self.settings["source_path"]=normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.bz2")
+			self.settings["source_path"]=normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.xz")
 			if os.path.isfile(self.settings["source_path"]):
 				if os.path.exists(self.settings["source_path"]):
 				# XXX: Is this even necessary if the previous check passes?
@@ -28,7 +28,7 @@
 		print "Source path set to "+self.settings["source_path"]
 		if os.path.isdir(self.settings["source_path"]):
 			print "\tIf this is not desired, remove this directory or turn of seedcache in the options of catalyst.conf"
-			print "\tthe source path will then be "+normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.bz2\n")
+			print "\tthe source path will then be "+normpath(self.settings["storedir"]+"/builds/"+self.settings["source_subpath"]+".tar.xz\n")
 
 	# XXX: How do these override_foo() functions differ from the ones in
 	# generic_stage_target and why aren't they in stage3_target?