+### CONFIGURE ENVIRONMENTS
+
+# copy in admin and testuser home to tmp
+echo "### copying admin and testuser homes..."
+cp -a "$TESTDIR"/home/admin "$TEMPDIR"/
+cp -a "$TESTDIR"/home/testuser "$TEMPDIR"/
+
+# set up environment for testuser
+TESTHOME="$TEMPDIR"/testuser
+export GNUPGHOME="$TESTHOME"/.gnupg
+export SSH_ASKPASS="$TESTHOME"/.ssh/askpass
+export MONKEYSPHERE_HOME="$TESTHOME"/.monkeysphere
+cat <<EOF >> "$TESTHOME"/.ssh/config
+UserKnownHostsFile $TESTHOME/.ssh/known_hosts
+IdentityFile $TESTHOME/.ssh/no-such-identity
+ProxyCommand $TESTHOME/.ssh/proxy-command %h %p $SOCKET
+EOF
+cat <<EOF >> "$MONKEYSPHERE_HOME"/monkeysphere.conf
+KNOWN_HOSTS=$TESTHOME/.ssh/known_hosts
+EOF
+get_gpg_prng_arg >> "$GNUPGHOME"/gpg.conf
+
+# set up sshd
+echo "### configuring sshd..."
+cp etc/ssh/sshd_config "$SSHD_CONFIG"
+# write the sshd_config
+cat <<EOF >> "$SSHD_CONFIG"
+HostKey ${MONKEYSPHERE_SYSDATADIR}/ssh_host_rsa_key
+AuthorizedKeysFile ${MONKEYSPHERE_SYSDATADIR}/authorized_keys/%u
+EOF
+
+# set up monkeysphere-server
+echo "### configuring monkeysphere..."
+mkdir -p -m 750 "$MONKEYSPHERE_SYSDATADIR"/gnupg-host
+mkdir -p -m 700 "$MONKEYSPHERE_SYSDATADIR"/gnupg-authentication
+mkdir -p -m 700 "$MONKEYSPHERE_SYSDATADIR"/authorized_keys
+mkdir -p -m 700 "$MONKEYSPHERE_SYSDATADIR"/tmp
+cp etc/monkeysphere/monkeysphere-server.conf "$TEMPDIR"/monkeysphere-server.conf
+cat <<EOF >> "$TEMPDIR"/monkeysphere-server.conf
+AUTHORIZED_USER_IDS="$MONKEYSPHERE_HOME/authorized_user_ids"
+EOF
+cat <<EOF > "$MONKEYSPHERE_SYSDATADIR"/gnupg-authentication/gpg.conf
+primary-keyring ${MONKEYSPHERE_SYSDATADIR}/gnupg-authentication/pubring.gpg
+keyring ${MONKEYSPHERE_SYSDATADIR}/gnupg-host/pubring.gpg
+EOF