diff --git a/CHANGELOG b/CHANGELOG
index 76121a175..80b93a01d 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,7 +1,11 @@
 Changes between 1.3.4 and 2.0.0dev0
 ----------------------------------------------
 
-- pytest-2.0 is now its own package and depends on pylib
+- pytest-2.0 is now its own package and depends on pylib-2.0
+- introduce a new way to set config options via ini-style files,
+  by default setup.cfg and tox.ini files are searched.  The old
+  ways (certain environment variables, dynamic conftest.py reading 
+  is removed).
 - fix issue126 - introduce py.test.set_trace() to trace execution via
   PDB during the running of tests even if capturing is ongoing.
 - fix issue123 - new "python -m py.test" invocation for py.test
diff --git a/doc/conf.py b/doc/conf.py
index f1bc56f46..a6c82a057 100644
--- a/doc/conf.py
+++ b/doc/conf.py
@@ -258,3 +258,9 @@ epub_copyright = u'2010, holger krekel et aliter'
 
 # Example configuration for intersphinx: refer to the Python standard library.
 intersphinx_mapping = {'http://docs.python.org/': None}
+def setup(app):
+    #from sphinx.ext.autodoc import cut_lines
+    #app.connect('autodoc-process-docstring', cut_lines(4, what=['module']))
+    app.add_description_unit('confval', 'confval',
+                             objname='configuration value',
+                             indextemplate='pair: %s; configuration value')
diff --git a/doc/customize.txt b/doc/customize.txt
index 91404806f..47b6433f9 100644
--- a/doc/customize.txt
+++ b/doc/customize.txt
@@ -5,33 +5,57 @@ Customizing and Extending py.test
 basic test configuration
 ===================================
 
-Command line options
----------------------------------
+Command line options and configuration file settings
+-----------------------------------------------------------------
 
-You can see command line options by running::
+You can get help on options and configuration options by running::
 
-    py.test -h
+    py.test -h   # prints options _and_ config file settings
 
-This will display all available command line options
-in your specific environment.
+This will display command line and configuration file settings
+which were registered by installed plugins.
 
+how test configuration is read from setup/tox ini-files
+--------------------------------------------------------
 
-setting persistent option defaults
-------------------------------------
+py.test looks for the first ``[pytest]`` section in either the first ``setup.cfg`` or the first ``tox.ini`` file found upwards from the arguments.  Example::
 
-py.test will lookup option values in this order:
+    py.test path/to/testdir
 
-* command line
-* conftest.py files
-* environment variables
+will look in the following dirs for a config file::
 
-To get an overview on existing names and settings type::
+    path/to/testdir/setup.cfg
+    path/to/setup.cfg
+    path/setup.cfg
+    setup.cfg
+    ... # up until root of filesystem
+    path/to/testdir/tox.ini
+    path/to/tox.ini
+    path/tox.ini
+    ... # up until root of filesystem
 
-    py.test --help-config
+If no path was provided at all the current working directory is used for the lookup.
 
-This will print information about all available options
-in your environment, including your local plugins and
-command line options.
+builtin configuration file options
+----------------------------------------------
+
+.. confval:: minversion = VERSTRING
+
+   specifies the minimal pytest version that is needed for this test suite.
+
+        minversion = 2.1  # will fail if we run with pytest-2.0
+
+.. confval:: addargs = OPTS
+
+   add the specified ``OPTS`` to the set of command line arguments as if they
+   had been specified by the user. Example: if you have this ini file content::
+
+       [pytest]
+       addargs = --maxfail=2 -rf  # exit after 2 failures, report fail info
+
+   issuing ``py.test test_hello.py`` actually means::
+
+       py.test --maxfail=2 -rf test_hello.py
 
 .. _`function arguments`: funcargs.html
 .. _`extensions`:
@@ -49,10 +73,8 @@ extensions and customizations close to test code.
 local conftest.py plugins
 --------------------------------------------------------------
 
-local `conftest.py` plugins are usually automatically loaded and
-registered but its contained hooks are only called when collecting or
-running tests in files or directories next to or below the ``conftest.py``
-file.  Assume the following layout and content of files::
+local ``conftest.py`` plugins contain directory-specific hook implemenations.  Its contained runtest- and collection- related hooks are called when collecting or running tests in files or directories next to or below the ``conftest.py``
+file.  Example: Assume the following layout and content of files::
 
     a/conftest.py:
         def pytest_runtest_setup(item):
@@ -72,20 +94,22 @@ Here is how you might run it::
      py.test a/test_sub.py  # will show "setting up"
 
 ``py.test`` loads all ``conftest.py`` files upwards from the command
-line file arguments.  It usually looks up configuration values or hooks
-right-to-left, i.e. the closer conftest files are checked before
-the further away ones.  This means you can have a ``conftest.py``
-in your home directory to provide global configuration values.
+line file arguments.  It usually performs look up right-to-left, i.e. 
+the hooks in "closer" conftest files will be called earlier than further
+away ones.  This means you can even have a ``conftest.py`` file in your home
+directory to customize test functionality globally for all of your projects.
 
 .. Note::
-    if you have ``conftest.py`` files which do not reside in a
+    If you have ``conftest.py`` files which do not reside in a
     python package directory (i.e. one containing an ``__init__.py``) then
-    "import conftest" will be ambigous and should be avoided. If you
-    ever want to import anything from a ``conftest.py`` file
-    put it inside a package.  You avoid trouble this way.
+    "import conftest" can be ambigous because there might be other
+    ``conftest.py`` files as well on your PYTHONPATH or ``sys.path``.
+    It is good practise for projects to put ``conftest.py`` within a package
+    scope or to never import anything from the conftest.py file.
 
 .. _`named plugins`: plugin/index.html
 
+
 Plugin discovery at tool startup
 --------------------------------------------
 
@@ -93,9 +117,6 @@ py.test loads plugin modules at tool startup in the following way:
 
 * by loading all plugins registered through `setuptools entry points`_.
 
-* by reading the ``PYTEST_PLUGINS`` environment variable
-  and importing the comma-separated list of named plugins.
-
 * by pre-scanning the command line for the ``-p name`` option
   and loading the specified plugin before actual command line parsing.
 
@@ -105,39 +126,17 @@ py.test loads plugin modules at tool startup in the following way:
   not loaded at tool startup.
 
 * by recursively loading all plugins specified by the
-  ``pytest_plugins`` variable in a ``conftest.py`` file
+  ``pytest_plugins`` variable in ``conftest.py`` files
 
 Requiring/Loading plugins in a test module or plugin
 -------------------------------------------------------------
 
-You can specify plugins in a test module or a plugin like this::
+You can require plugins in a test module or a plugin like this::
 
     pytest_plugins = "name1", "name2",
 
 When the test module or plugin is loaded the specified plugins
-will be loaded.  If you specify plugins without the ``pytest_``
-prefix it will be automatically added.  All plugin names
-must be lowercase.
-
-.. _`conftest.py plugin`:
-.. _`conftestplugin`:
-
-Writing per-project plugins (conftest.py)
-------------------------------------------------------
-
-The purpose of :file:`conftest.py` files is to allow project-specific
-test customization.  They thus make for a good place to implement
-project-specific test related features through hooks.  For example you may
-set the ``collect_ignore`` variable depending on a command line option
-by defining the following hook in a ``conftest.py`` file::
-
-    # ./conftest.py in your root or package dir
-    collect_ignore = ['hello', 'test_world.py']
-    def pytest_addoption(parser):
-        parser.addoption("--runall", action="store_true", default=False)
-    def pytest_configure(config):
-        if config.getvalue("runall"):
-            collect_ignore[:] = []
+will be loaded.
 
 .. _`setuptools entry points`:
 .. _registered:
@@ -332,12 +331,28 @@ Reference of important objects involved in hooks
 .. autoclass:: pytest.plugin.config.Config
     :members:
 
-.. autoclass:: pytest.plugin.session.Item
-    :inherited-members:
-
-.. autoclass:: pytest.plugin.session.Node
+.. autoclass:: pytest.plugin.config.Parser
     :members:
 
+.. autoclass:: pytest.plugin.session.Node(name, parent)
+    :members:
+
+.. 
+    .. autoclass:: pytest.plugin.session.File(fspath, parent)
+        :members:
+
+    .. autoclass:: pytest.plugin.session.Item(name, parent)
+        :members:
+
+    .. autoclass:: pytest.plugin.python.Module(name, parent)
+        :members:
+
+    .. autoclass:: pytest.plugin.python.Class(name, parent)
+        :members:
+
+    .. autoclass:: pytest.plugin.python.Function(name, parent)
+        :members:
+
 .. autoclass:: pytest.plugin.runner.CallInfo
     :members:
 
@@ -345,29 +360,3 @@ Reference of important objects involved in hooks
     :members:
 
 
-conftest.py configuration files
-=================================================
-
-conftest.py reference docs
-
-A unique feature of py.test are its ``conftest.py`` files which allow
-project and directory specific customizations to testing.
-
-* `set option defaults`_
-
-or set particular variables to influence the testing process:
-
-* ``pytest_plugins``: list of named plugins to load
-
-* ``collect_ignore``: list of paths to ignore during test collection, relative to the containing ``conftest.py`` file
-
-* ``rsyncdirs``: list of to-be-rsynced directories for distributed
-  testing, relative to the containing ``conftest.py`` file.
-
-You may put a conftest.py files in your project root directory or into
-your package directory if you want to add project-specific test options.
-
-
-.. _`specify funcargs`: funcargs.html#application-setup-tutorial-example
-
-.. _`set option defaults`:
diff --git a/doc/example/marking.txt b/doc/example/controlskip.txt
similarity index 94%
rename from doc/example/marking.txt
rename to doc/example/controlskip.txt
index c879931b3..7eb358978 100644
--- a/doc/example/marking.txt
+++ b/doc/example/controlskip.txt
@@ -1,7 +1,4 @@
 
-Customizing test function through marks and hooks
-====================================================
-
 .. _`retrieved by hooks as item keywords`:
 
 control skipping of tests according to command line option
diff --git a/doc/example/misc.txt b/doc/example/detectpytest.txt
similarity index 92%
rename from doc/example/misc.txt
rename to doc/example/detectpytest.txt
index 842de7ef4..50490f344 100644
--- a/doc/example/misc.txt
+++ b/doc/example/detectpytest.txt
@@ -1,7 +1,4 @@
 
-Misc examples
-====================================================
-
 Detect if running from within a py.test run
 --------------------------------------------------------------
 
diff --git a/doc/example/mysetup.txt b/doc/example/mysetup.txt
index 60cee65f1..d98f2277e 100644
--- a/doc/example/mysetup.txt
+++ b/doc/example/mysetup.txt
@@ -1,6 +1,8 @@
 
 .. highlightlang:: python
 
+.. _mysetup:
+
 mysetup pattern: application specific test fixtures
 ==========================================================
 
diff --git a/doc/example/nonpython.txt b/doc/example/nonpython.txt
new file mode 100644
index 000000000..25a40d960
--- /dev/null
+++ b/doc/example/nonpython.txt
@@ -0,0 +1,68 @@
+
+.. _`non-python tests`:
+
+Working with non-python tests
+====================================================
+
+a basic example for specifying tests in Yaml files
+--------------------------------------------------------------
+
+.. _`pytest-yamlwsgi`: http://bitbucket.org/aafshar/pytest-yamlwsgi/src/tip/pytest_yamlwsgi.py
+.. _`PyYAML`: http://pypi.python.org/pypi/PyYAML/
+
+Here is an example ``conftest.py`` (extracted from Ali Afshnars special purpose `pytest-yamlwsgi`_ plugin).   This ``conftest.py`` will  collect ``test*.yml`` files and will execute the yaml-formatted content as custom tests:
+
+.. include:: nonpython/conftest.py
+    :literal:
+
+You can create a simple example file:
+
+.. include:: nonpython/test_simple.yml
+    :literal:
+
+and if you installed `PyYAML`_ or a compatible YAML-parser you can
+now execute the test specification::
+
+    nonpython $ py.test
+    =========================== test session starts ============================
+    platform linux2 -- Python 2.6.5 -- pytest-2.0.0.dev10
+    test path 1: /home/hpk/p/pytest/doc/example/nonpython
+    
+    test_simple.yml .F
+    
+    ================================= FAILURES =================================
+    ______________________________ usecase: hello ______________________________
+    usecase execution failed
+       spec failed: 'some': 'other'
+       no further details known at this point.
+    ==================== 1 failed, 1 passed in 0.06 seconds ====================
+
+You get one dot for the passing ``sub1: sub1`` check and one failure.
+Obviously in the above ``conftest.py`` you'll want to implement a more
+interesting interpretation of the yaml-values.  Note that ``reportinfo()``
+is used for representing the test location and is also consulted for
+reporting in ``verbose`` mode::
+
+    nonpython $ py.test -v
+    =========================== test session starts ============================
+    platform linux2 -- Python 2.6.5 -- pytest-2.0.0.dev10 -- /home/hpk/venv/0/bin/python
+    test path 1: /home/hpk/p/pytest/doc/example/nonpython
+    
+    test_simple.yml:1: usecase: ok PASSED
+    test_simple.yml:1: usecase: hello FAILED
+    
+    ================================= FAILURES =================================
+    ______________________________ usecase: hello ______________________________
+    usecase execution failed
+       spec failed: 'some': 'other'
+       no further details known at this point.
+    ==================== 1 failed, 1 passed in 0.06 seconds ====================
+
+While developing your custom test collection and execution it's also
+interesting to just look at the collection tree::
+
+    nonpython $ py.test --collectonly
+    <Directory 'nonpython'>
+      <YamlFile 'test_simple.yml'>
+        <UsecaseItem 'ok'>
+        <UsecaseItem 'hello'>
diff --git a/doc/example/nonpython/conftest.py b/doc/example/nonpython/conftest.py
new file mode 100644
index 000000000..8cd15b2f1
--- /dev/null
+++ b/doc/example/nonpython/conftest.py
@@ -0,0 +1,40 @@
+# content of conftest.py
+
+import py
+
+def pytest_collect_file(path, parent):
+    if path.ext == ".yml" and path.basename.startswith("test"):
+        return YamlFile(path, parent)
+            
+class YamlFile(py.test.collect.File):
+    def collect(self):
+        import yaml # we need a yaml parser, e.g. PyYAML
+        raw = yaml.load(self.fspath.open())
+        for name, spec in raw.items():
+            yield UsecaseItem(name, self, spec)
+
+class UsecaseItem(py.test.collect.Item):
+    def __init__(self, name, parent, spec):
+        super(UsecaseItem, self).__init__(name, parent)
+        self.spec = spec
+    
+    def runtest(self):
+        for name, value in self.spec.items():
+            # some custom test execution (dumb example follows)
+            if name != value:
+                raise UsecaseException(self, name, value)
+
+    def repr_failure(self, excinfo):
+        """ called when self.runtest() raises an exception. """
+        if excinfo.errisinstance(UsecaseException):
+            return "\n".join([
+                "usecase execution failed",
+                "   spec failed: %r: %r" % excinfo.value.args[1:3],
+                "   no further details known at this point."
+            ])
+
+    def reportinfo(self):
+        return self.fspath, 0, "usecase: %s" % self.name
+
+class UsecaseException(Exception):
+    """ custom exception for error reporting. """
diff --git a/doc/example/nonpython/test_simple.yml b/doc/example/nonpython/test_simple.yml
new file mode 100644
index 000000000..f0d8d11fc
--- /dev/null
+++ b/doc/example/nonpython/test_simple.yml
@@ -0,0 +1,7 @@
+# test_simple.yml
+ok:
+    sub1: sub1
+
+hello:
+    world: world
+    some: other
diff --git a/doc/examples.txt b/doc/examples.txt
index 6a9aa7444..1fc0ced2c 100644
--- a/doc/examples.txt
+++ b/doc/examples.txt
@@ -7,6 +7,7 @@ Usages and Examples
 .. toctree::
    :maxdepth: 2
 
-   example/marking.txt
+   example/controlskip.txt
    example/mysetup.txt
-   example/misc.txt
+   example/detectpytest.txt
+   example/nonpython.txt
diff --git a/doc/features.txt b/doc/features.txt
index 2a6ede0e5..7828044c7 100644
--- a/doc/features.txt
+++ b/doc/features.txt
@@ -45,7 +45,8 @@ supports several testing practises and methods
 
 - supports extended `xUnit style setup`_
 - can integrate nose_, `unittest.py` and `doctest.py`_ style tests
-- supports generating testing coverage
+- supports generating testing coverage reports
+- supports :ref:`non-python tests`
 - `Javasript unit- and functional testing`_
 
 .. _`Javasript unit- and functional testing`: plugin/oejskit.html
diff --git a/doc/goodpractises.txt b/doc/goodpractises.txt
index 47b6b43c5..14ea561f2 100644
--- a/doc/goodpractises.txt
+++ b/doc/goodpractises.txt
@@ -1,4 +1,5 @@
 
+.. highlightlang:: python
 .. _`good practises`:
 
 Good Practises
@@ -28,8 +29,7 @@ py.test supports common test layouts.
 
 XXX
 
-
-
+.. _`genscript method`:
 
 Generating a py.test standalone Script
 -------------------------------------------
@@ -38,12 +38,12 @@ If you are a maintainer or application developer and want users
 to run tests you can use a facility to generate a standalone
 "py.test" script that you can tell users to run::
 
-    py.test --genscript=mytest
+    py.test --genscript=runtests.py
 
 will generate a ``mytest`` script that is, in fact, a ``py.test`` under
 disguise.  You can tell people to download and then e.g. run it like this::
 
-    python mytest --pastebin=all
+    python runtests.py --pastebin=all
 
 and ask them to send you the resulting URL.  The resulting script has
 all core features and runs unchanged under Python2 and Python3 interpreters.
@@ -51,4 +51,46 @@ all core features and runs unchanged under Python2 and Python3 interpreters.
 .. _`Distribute for installation`: http://pypi.python.org/pypi/distribute#installation-instructions
 .. _`distribute installation`: http://pypi.python.org/pypi/distribute
 
+
+Integrating with distutils / ``python setup.py test``
+--------------------------------------------------------
+
+You can easily integrate test runs into your distutils or
+setuptools based project.  Use the `genscript method`_
+to generate a standalone py.test script::
+
+    py.test --genscript=runtests.py
+
+and make this script part of your distribution and then add
+this to your ``setup.py`` file::
+
+    from distutils.core import setup, Command
+    # you can also import from setuptools
+
+    class PyTest(Command):
+        user_options = []
+        def initialize_options(self):
+            pass
+        def finalize_options(self):
+            pass
+        def run(self):
+            import sys,subprocess
+            errno = subprocess.call([sys.executable, 'runtest.py'])
+            raise SystemExit(errno)
+    setup(
+        #...,
+        cmdclass = {'test': PyTest},
+        #...,
+    )
+
+If you now type::
+
+    python setup.py test
+
+this will execute your tests using ``runtest.py``. As this is a
+standalone version of ``py.test`` no prior installation whatsoever is
+required for calling the test command. You can also pass additional
+arguments to the subprocess-calls like your test directory or other
+options.
+
 .. include:: links.inc
diff --git a/doc/talks.txt b/doc/talks.txt
index 428c16d05..1b8963e5d 100644
--- a/doc/talks.txt
+++ b/doc/talks.txt
@@ -16,8 +16,8 @@ basic usage and funcargs:
 
 function arguments:
 
+- :ref:`mysetup`
 - `application setup in test functions with funcargs`_
-- `making funcargs dependendent on command line options`_
 - `monkey patching done right`_ (blog post, consult `monkeypatch
   plugin`_ for actual 1.0 API)
 
@@ -39,7 +39,6 @@ plugin specific examples:
 - `many examples in the docs for plugins`_
 
 .. _`skipping slow tests by default in py.test`: http://bruynooghe.blogspot.com/2009/12/skipping-slow-test-by-default-in-pytest.html
-.. _`making funcargs dependendent on command line options`: funcargs.html#tut-cmdlineoption
 .. _`many examples in the docs for plugins`: plugin/index.html
 .. _`monkeypatch plugin`: plugin/monkeypatch.html
 .. _`application setup in test functions with funcargs`: funcargs.html#appsetup
diff --git a/example/assertion/test_failures.py b/example/assertion/test_failures.py
index 336d5b586..7fecc345f 100644
--- a/example/assertion/test_failures.py
+++ b/example/assertion/test_failures.py
@@ -2,8 +2,6 @@
 import py
 failure_demo = py.path.local(__file__).dirpath('failure_demo.py')
 
-pytest_plugins = "pytest_pytester"
-
 def test_failure_demo_fails_properly(testdir):
     target = testdir.tmpdir.join(failure_demo.basename)
     failure_demo.copy(target)
diff --git a/pytest/__init__.py b/pytest/__init__.py
index afc40b3f1..a535a9579 100644
--- a/pytest/__init__.py
+++ b/pytest/__init__.py
@@ -5,11 +5,12 @@ see http://pytest.org for documentation and details
 
 (c) Holger Krekel and others, 2004-2010
 """
-__version__ = '2.0.0.dev10'
+__version__ = '2.0.0.dev11'
 
 __all__ = ['config', 'cmdline']
 
 from pytest import _core as cmdline
+UsageError = cmdline.UsageError
 
 def __main__():
     raise SystemExit(cmdline.main())
\ No newline at end of file
diff --git a/pytest/_core.py b/pytest/_core.py
index d28ab2643..4022af993 100644
--- a/pytest/_core.py
+++ b/pytest/_core.py
@@ -345,13 +345,16 @@ def main(args=None):
     if args is None:
         args = sys.argv[1:]
     hook = pluginmanager.hook
-    config = hook.pytest_cmdline_parse(pluginmanager=pluginmanager, args=args)
     try:
+        config = hook.pytest_cmdline_parse(
+                pluginmanager=pluginmanager, args=args)
         exitstatus = hook.pytest_cmdline_main(config=config)
-    except config.Error:
+    except UsageError:
         e = sys.exc_info()[1]
         sys.stderr.write("ERROR: %s\n" %(e.args[0],))
         exitstatus = 3
     pluginmanager = PluginManager(load=True)
     return exitstatus
 
+class UsageError(Exception):
+    """ error in py.test usage or invocation"""
diff --git a/pytest/plugin/config.py b/pytest/plugin/config.py
index 619e84983..194536a8e 100644
--- a/pytest/plugin/config.py
+++ b/pytest/plugin/config.py
@@ -2,6 +2,7 @@
 import py
 import sys, os
 from pytest._core import PluginManager
+import pytest
 
 
 def pytest_cmdline_parse(pluginmanager, args):
@@ -9,6 +10,10 @@ def pytest_cmdline_parse(pluginmanager, args):
     config.parse(args)
     return config
 
+def pytest_addoption(parser):
+    parser.addini('addargs', 'default command line arguments')
+    parser.addini('minversion', 'minimally required pytest version')
+
 class Parser:
     """ Parser for command line arguments. """
 
@@ -17,6 +22,7 @@ class Parser:
         self._groups = []
         self._processopt = processopt
         self._usage = usage
+        self._inidict = {}
         self.hints = []
 
     def processoption(self, option):
@@ -28,6 +34,12 @@ class Parser:
         self._notes.append(note)
 
     def getgroup(self, name, description="", after=None):
+        """ get (or create) a named option Group.
+       
+        :name: unique name of the option group.
+        :description: long description for --help output.
+        :after: name of other group, used for ordering --help output.
+        """
         for group in self._groups:
             if group.name == name:
                 return group
@@ -44,7 +56,7 @@ class Parser:
         self._anonymous.addoption(*opts, **attrs)
 
     def parse(self, args):
-        optparser = MyOptionParser(self)
+        self.optparser = optparser = MyOptionParser(self)
         groups = self._groups + [self._anonymous]
         for group in groups:
             if group.options:
@@ -52,7 +64,7 @@ class Parser:
                 optgroup = py.std.optparse.OptionGroup(optparser, desc)
                 optgroup.add_options(group.options)
                 optparser.add_option_group(optgroup)
-        return optparser.parse_args([str(x) for x in args])
+        return self.optparser.parse_args([str(x) for x in args])
 
     def parse_setoption(self, args, option):
         parsedoption, args = self.parse(args)
@@ -60,6 +72,9 @@ class Parser:
             setattr(option, name, value)
         return args
 
+    def addini(self, name, description, type=None):
+        """ add an ini-file option with the given name and description. """
+        self._inidict[name] = (description, type)
 
 class OptionGroup:
     def __init__(self, name, description="", parser=None):
@@ -90,7 +105,8 @@ class OptionGroup:
 class MyOptionParser(py.std.optparse.OptionParser):
     def __init__(self, parser):
         self._parser = parser
-        py.std.optparse.OptionParser.__init__(self, usage=parser._usage)
+        py.std.optparse.OptionParser.__init__(self, usage=parser._usage,
+            add_help_option=False)
     def format_epilog(self, formatter):
         hints = self._parser.hints
         if hints:
@@ -226,13 +242,8 @@ class CmdOptions(object):
     def __repr__(self):
         return "<CmdOptions %r>" %(self.__dict__,)
 
-class Error(Exception):
-    """ Test Configuration Error. """
-
 class Config(object):
     """ access to configuration values, pluginmanager and plugin hooks.  """
-    Option = py.std.optparse.Option
-    Error = Error
     basetemp = None
 
     def __init__(self, pluginmanager=None):
@@ -251,6 +262,11 @@ class Config(object):
         self.trace("loaded conftestmodule %r" %(conftestmodule,))
         self.pluginmanager.consider_conftest(conftestmodule)
 
+    def _processopt(self, opt):
+        if hasattr(opt, 'default') and opt.dest:
+            if not hasattr(self.option, opt.dest):
+                setattr(self.option, opt.dest, opt.default)
+
     def _getmatchingplugins(self, fspath):
         allconftests = self._conftest._conftestpath2mod.values()
         plugins = [x for x in self.pluginmanager.getplugins()
@@ -262,28 +278,6 @@ class Config(object):
         if getattr(self.option, 'traceconfig', None):
             self.hook.pytest_trace(category="config", msg=msg)
 
-    def _processopt(self, opt):
-        if hasattr(opt, 'default') and opt.dest:
-            val = os.environ.get("PYTEST_OPTION_" + opt.dest.upper(), None)
-            if val is not None:
-                if opt.type == "int":
-                    val = int(val)
-                elif opt.type == "long":
-                    val = long(val)
-                elif opt.type == "float":
-                    val = float(val)
-                elif not opt.type and opt.action in ("store_true", "store_false"):
-                    val = eval(val)
-                opt.default = val
-            else:
-                name = "option_" + opt.dest
-                try:
-                    opt.default = self._conftest.rget(name)
-                except (ValueError, KeyError):
-                    pass
-            if not hasattr(self.option, opt.dest):
-                setattr(self.option, opt.dest, opt.default)
-
     def _setinitialconftest(self, args):
         # capture output during conftest init (#issue93)
         name = hasattr(os, 'dup') and 'StdCaptureFD' or 'StdCapture'
@@ -299,14 +293,31 @@ class Config(object):
             raise
 
     def _preparse(self, args):
+        self.inicfg = getcfg(args, ["setup.cfg", "tox.ini",])
+        if self.inicfg:
+            newargs = self.inicfg.get("addargs", None)
+            if newargs:
+                args[:] = args + py.std.shlex.split(newargs)
+        self._checkversion()
         self.pluginmanager.consider_setuptools_entrypoints()
         self.pluginmanager.consider_env()
         self.pluginmanager.consider_preparse(args)
         self._setinitialconftest(args)
         self.pluginmanager.do_addoption(self._parser)
 
+    def _checkversion(self):
+        minver = self.inicfg.get('minversion', None)
+        if minver:
+            ver = minver.split(".")
+            myver = pytest.__version__.split(".")
+            if myver < ver:
+                raise pytest.UsageError(
+                    "%s:%d: requires pytest-%s, actual pytest-%s'" %(
+                    self.inicfg.config.path, self.inicfg.lineof('minversion'),
+                    minver, pytest.__version__))
+
     def parse(self, args):
-        # cmdline arguments into this config object.
+        # parse given cmdline arguments into this config object.
         # Note that this can only be called once per testing process.
         assert not hasattr(self, 'args'), (
                 "can only parse cmdline args at most once per Config object")
@@ -340,12 +351,28 @@ class Config(object):
             return py.path.local.make_numbered_dir(prefix=basename,
                 keep=0, rootdir=basetemp, lock_timeout=None)
 
-    def getconftest_pathlist(self, name, path=None):
-        """ return a matching value, which needs to be sequence
-            of filenames that will be returned as a list of Path
-            objects (they can be relative to the location
-            where they were found).
-        """
+    def getini(self, name):
+        """ return configuration value from an ini file. If the
+        specified name hasn't been registered through a prior ``parse.addini``
+        call (usually from a plugin), a ValueError is raised. """
+        try:
+            description, type = self._parser._inidict[name]
+        except KeyError:
+            raise ValueError("unknown configuration value: %r" %(name,))
+        try:
+            value = self.inicfg[name]
+        except KeyError:
+            return # None indicates nothing found
+        if type == "pathlist":
+            dp = py.path.local(self.inicfg.config.path).dirpath()
+            l = []
+            for relpath in py.std.shlex.split(value):
+                l.append(dp.join(relpath, abs=True))
+            return l
+        else:
+            return value
+
+    def _getconftest_pathlist(self, name, path=None):
         try:
             mod, relroots = self._conftest.rget_with_confmod(name, path)
         except KeyError:
@@ -359,6 +386,22 @@ class Config(object):
             l.append(relroot)
         return l
 
+    def _getconftest(self, name, path=None, check=False):
+        if check:
+            self._checkconftest(name)
+        return self._conftest.rget(name, path)
+
+    def getvalue(self, name, path=None):
+        """ return ``name`` value looked set from command line options.
+
+        (deprecated) if we can't find the option also lookup
+        the name in a matching conftest file.
+        """
+        try:
+            return getattr(self.option, name)
+        except AttributeError:
+            return self._getconftest(name, path, check=False)
+
     def getvalueorskip(self, name, path=None):
         """ return getvalue(name) or call py.test.skip if no value exists. """
         try:
@@ -369,15 +412,27 @@ class Config(object):
         except KeyError:
             py.test.skip("no %r value found" %(name,))
 
-    def getvalue(self, name, path=None):
-        """ return 'name' value looked up from the 'options'
-            and then from the first conftest file found up
-            the path (including the path itself).
-            if path is None, lookup the value in the initial
-            conftest modules found during command line parsing.
-        """
-        try:
-            return getattr(self.option, name)
-        except AttributeError:
-            return self._conftest.rget(name, path)
+
+def getcfg(args, inibasenames):
+    if not args:
+        args = [py.path.local()]
+    for inibasename in inibasenames:
+        for p in args:
+            x = findupwards(p, inibasename)
+            if x is not None:
+                iniconfig = py.iniconfig.IniConfig(x)
+                if 'pytest' in iniconfig.sections:
+                    return iniconfig['pytest']
+    return {}
+   
+def findupwards(current, basename):
+    current = py.path.local(current)
+    while 1:
+        p = current.join(basename)
+        if p.check():
+            return p
+        p = current.dirpath()
+        if p == current:
+            return
+        current = p
 
diff --git a/pytest/plugin/genscript.py b/pytest/plugin/genscript.py
index 2b379294e..a9188add9 100755
--- a/pytest/plugin/genscript.py
+++ b/pytest/plugin/genscript.py
@@ -58,7 +58,7 @@ def pytest_cmdline_main(config):
     genscript = config.getvalue("genscript")
     if genscript:
         script = generate_script(
-            'import py; py.test.cmdline.main()',
+            'import py; raise SystemExit(py.test.cmdline.main())',
             ['py', 'pytest'],
         )
 
diff --git a/pytest/plugin/helpconfig.py b/pytest/plugin/helpconfig.py
index 18c810f70..96e61ff16 100644
--- a/pytest/plugin/helpconfig.py
+++ b/pytest/plugin/helpconfig.py
@@ -1,12 +1,15 @@
 """ provide version info, conftest/environment config names.
 """
 import py
+import pytest
 import inspect, sys
 
 def pytest_addoption(parser):
     group = parser.getgroup('debugconfig')
     group.addoption('--version', action="store_true",
-            help="display py lib version and import information.")
+            help="display pytest lib version and import information.")
+    group._addoption("-h", "--help", action="store_true", dest="help",
+            help="show help message and configuration info")
     group._addoption('-p', action="append", dest="plugins", default = [],
                metavar="name",
                help="early-load given plugin (multi-allowed).")
@@ -19,67 +22,55 @@ def pytest_addoption(parser):
     group.addoption('--debug',
                action="store_true", dest="debug", default=False,
                help="generate and show internal debugging information.")
-    group.addoption("--help-config", action="store_true", dest="helpconfig",
-            help="show available conftest.py and ENV-variable names.")
 
 
 def pytest_cmdline_main(config):
     if config.option.version:
-        p = py.path.local(py.__file__).dirpath()
+        p = py.path.local(pytest.__file__).dirpath()
         sys.stderr.write("This is py.test version %s, imported from %s\n" %
             (py.__version__, p))
         return 0
-    elif config.option.helpconfig:
+    elif config.option.help:
         config.pluginmanager.do_configure(config)
-        showpluginhelp(config)
+        showhelp(config)
         return 0
 
-def showpluginhelp(config):
-    options = []
-    for group in config._parser._groups:
-        options.extend(group.options)
-    widths = [0] * 10
+def showhelp(config):
     tw = py.io.TerminalWriter()
-    tw.sep("-")
-    tw.line("%-13s | %-18s | %-25s | %s" %(
-            "cmdline name", "conftest.py name", "ENV-variable name", "help"))
-    tw.sep("-")
+    tw.write(config._parser.optparser.format_help())
+    tw.line()
+    tw.line()
+    #tw.sep( "=", "config file settings")
+    tw.line("setup.cfg or tox.ini options to be put into [pytest] section:")
+    tw.line()
 
-    options = [opt for opt in options if opt._long_opts]
-    options.sort(key=lambda x: x._long_opts)
-    for opt in options:
-        if not opt._long_opts or not opt.dest:
-            continue
-        optstrings = list(opt._long_opts) # + list(opt._short_opts)
-        optstrings = filter(None, optstrings)
-        optstring = "|".join(optstrings)
-        line = "%-13s | %-18s | %-25s | %s" %(
-            optstring,
-            "option_%s" % opt.dest,
-            "PYTEST_OPTION_%s" % opt.dest.upper(),
-            opt.help and opt.help or "",
-            )
+    for name, help in sorted(config._parser._inidict.items()):
+        line = "   %-15s  %s" %(name, help)
         tw.line(line[:tw.fullwidth])
-    for name, help in conftest_options:
-        line = "%-13s | %-18s | %-25s | %s" %(
-            "",
-            name,
-            "",
-            help,
-            )
-        tw.line(line[:tw.fullwidth])
-    tw.sep("-")
 
-conftest_options = (
+    tw.line() ; tw.line()
+    #tw.sep("=")
+    return
+
+    tw.line("conftest.py options:")
+    tw.line()
+    conftestitems = sorted(config._parser._conftestdict.items())
+    for name, help in conftest_options + conftestitems:
+        line = "   %-15s  %s" %(name, help)
+        tw.line(line[:tw.fullwidth])
+    tw.line()
+    #tw.sep( "=")
+
+conftest_options = [
     ('pytest_plugins', 'list of plugin names to load'),
-    ('collect_ignore', '(relative) paths ignored during collection'),
-    ('rsyncdirs', 'to-be-rsynced directories for dist-testing'),
-)
+]
 
 def pytest_report_header(config):
     lines = []
     if config.option.debug or config.option.traceconfig:
-        lines.append("using py lib: %s" % (py.path.local(py.__file__).dirpath()))
+        lines.append("using: pytest-%s pylib-%s" % 
+            (pytest.__version__,py.__version__))
+            
     if config.option.traceconfig:
         lines.append("active plugins:")
         plugins = []
@@ -149,12 +140,11 @@ def getargs(func):
     startindex = inspect.ismethod(func) and 1 or 0
     return args[startindex:]
 
-def collectattr(obj, prefixes=("pytest_",)):
+def collectattr(obj):
     methods = {}
     for apiname in dir(obj):
-        for prefix in prefixes:
-            if apiname.startswith(prefix):
-                methods[apiname] = getattr(obj, apiname)
+        if apiname.startswith("pytest_"):
+            methods[apiname] = getattr(obj, apiname)
     return methods
 
 def formatdef(func):
diff --git a/pytest/plugin/pytester.py b/pytest/plugin/pytester.py
index 7be9be3af..293b300b3 100644
--- a/pytest/plugin/pytester.py
+++ b/pytest/plugin/pytester.py
@@ -242,9 +242,19 @@ class TmpTestdir:
     def makefile(self, ext, *args, **kwargs):
         return self._makefile(ext, args, kwargs)
 
+    def makeini(self, source):
+        return self.makefile('cfg', setup=source)
+
     def makeconftest(self, source):
         return self.makepyfile(conftest=source)
 
+    def makeini(self, source):
+        return self.makefile('.ini', tox=source)
+
+    def getinicfg(self, source):
+        p = self.makeini(source)
+        return py.iniconfig.IniConfig(p)['pytest']
+
     def makepyfile(self, *args, **kwargs):
         return self._makefile('.py', args, kwargs)
 
@@ -375,6 +385,11 @@ class TmpTestdir:
         #config.pluginmanager.do_unconfigure(config)
         return node
 
+    def collect_by_name(self, modcol, name):
+        for colitem in modcol._memocollect():
+            if colitem.name == name:
+                return colitem
+
     def popen(self, cmdargs, stdout, stderr, **kw):
         if not hasattr(py.std, 'subprocess'):
             py.test.skip("no subprocess module")
diff --git a/pytest/plugin/session.py b/pytest/plugin/session.py
index c4699f788..422a389f2 100644
--- a/pytest/plugin/session.py
+++ b/pytest/plugin/session.py
@@ -9,6 +9,7 @@ import pytest
 import os, sys
 
 def pytest_addoption(parser):
+
     group = parser.getgroup("general", "running and selection options")
     group._addoption('-x', '--exitfirst', action="store_true", default=False,
                dest="exitfirst",
@@ -32,6 +33,7 @@ def pytest_addoption(parser):
     group.addoption('--basetemp', dest="basetemp", default=None, metavar="dir",
                help="base temporary directory for this test run.")
 
+
 def pytest_namespace():
     return dict(collect=dict(Item=Item, Collector=Collector,
         File=File, Directory=Directory))
@@ -64,7 +66,7 @@ def pytest_runtest_mainloop(session):
 
 def pytest_ignore_collect(path, config):
     p = path.dirpath()
-    ignore_paths = config.getconftest_pathlist("collect_ignore", path=p)
+    ignore_paths = config._getconftest_pathlist("collect_ignore", path=p)
     ignore_paths = ignore_paths or []
     excludeopt = config.getvalue("ignore")
     if excludeopt:
@@ -128,7 +130,7 @@ class Session(object):
             config.hook.pytest_sessionstart(session=self)
             config.hook.pytest_perform_collection(session=self)
             config.hook.pytest_runtest_mainloop(session=self)
-        except self.config.Error:
+        except pytest.UsageError:
             raise
         except KeyboardInterrupt:
             excinfo = py.code.ExceptionInfo()
@@ -173,10 +175,10 @@ class Collection:
         parts = str(arg).split("::")
         path = base.join(parts[0], abs=True)
         if not path.check():
-            raise self.config.Error("file not found: %s" %(path,))
+            raise pytest.UsageError("file not found: %s" %(path,))
         topdir = self.topdir
         if path != topdir and not path.relto(topdir):
-            raise self.config.Error("path %r is not relative to %r" %
+            raise pytest.UsageError("path %r is not relative to %r" %
                 (str(path), str(topdir)))
         topparts = path.relto(topdir).split(path.sep)
         return topparts + parts[1:]
@@ -213,7 +215,7 @@ class Collection:
                 for node in self.matchnodes([self._topcollector], names):
                     items.extend(self.genitems(node))
             except NoMatch:
-                raise self.config.Error("can't collect: %s" % (arg,))
+                raise pytest.UsageError("can't collect: %s" % (arg,))
         return items
 
     def matchnodes(self, matching, names):
@@ -444,14 +446,8 @@ class Collector(Node):
         """
         raise NotImplementedError("abstract")
 
-    def collect_by_name(self, name):
-        """ return a child matching the given name, else None. """
-        for colitem in self._memocollect():
-            if colitem.name == name:
-                return colitem
-
     def repr_failure(self, excinfo):
-        """ represent a failure. """
+        """ represent a collection failure. """
         if excinfo.errisinstance(self.CollectError):
             exc = excinfo.value
             return str(exc.args[0])
@@ -524,8 +520,7 @@ class Directory(FSCollector):
 
 class Item(Node):
     """ a basic test invocation item. Note that for a single function
-    there might be multiple test invocation items. Attributes:
-    
+    there might be multiple test invocation items.
     """
     def reportinfo(self):
         return self.fspath, None, ""
diff --git a/setup.py b/setup.py
index 6c79bca6b..8966cdd70 100644
--- a/setup.py
+++ b/setup.py
@@ -22,7 +22,7 @@ def main():
         name='pytest',
         description='py.test: simple powerful testing with Python',
         long_description = long_description,
-        version='2.0.0.dev10',
+        version='2.0.0.dev11',
         url='http://pytest.org',
         license='MIT license',
         platforms=['unix', 'linux', 'osx', 'cygwin', 'win32'],
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index ca5d3d991..45d959fb2 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -4,7 +4,8 @@ class TestGeneralUsage:
     def test_config_error(self, testdir):
         testdir.makeconftest("""
             def pytest_configure(config):
-                raise config.Error("hello")
+                import pytest
+                raise pytest.UsageError("hello")
         """)
         result = testdir.runpytest(testdir.tmpdir)
         assert result.ret != 0
diff --git a/testing/conftest.py b/testing/conftest.py
index 45c0d6eb2..d10d8edd6 100644
--- a/testing/conftest.py
+++ b/testing/conftest.py
@@ -2,9 +2,6 @@ import py
 import sys
 
 pytest_plugins = "pytester",
-collect_ignore = ['../build', '../doc/_build']
-
-rsyncdirs = ['conftest.py', '../pytest', '../doc', '.']
 
 import os, py
 pid = os.getpid()
@@ -41,6 +38,12 @@ def pytest_unconfigure(config, __multicall__):
     assert len2 < config._numfiles + 7, out2
 
 
+def pytest_runtest_setup(item):
+    item._oldir = py.path.local()
+
+def pytest_runtest_teardown(item):
+    item._oldir.chdir()
+
 def pytest_generate_tests(metafunc):
     multi = getattr(metafunc.function, 'multi', None)
     if multi is not None:
diff --git a/testing/plugin/conftest.py b/testing/plugin/conftest.py
index d2da55eea..57274273b 100644
--- a/testing/plugin/conftest.py
+++ b/testing/plugin/conftest.py
@@ -1,6 +1,5 @@
 import py
 
-pytest_plugins = "pytester"
 import pytest.plugin
 plugindir = py.path.local(pytest.plugin.__file__).dirpath()
 from pytest._core import default_plugins
diff --git a/testing/plugin/test_genscript.py b/testing/plugin/test_genscript.py
index bb4e555c0..c71ac1526 100644
--- a/testing/plugin/test_genscript.py
+++ b/testing/plugin/test_genscript.py
@@ -19,13 +19,14 @@ class Standalone:
         return testdir._run(anypython, self.script, *args)
 
 def test_gen(testdir, anypython, standalone):
-    result = standalone.run(anypython, testdir, '-h')
-    assert result.ret == 0
     result = standalone.run(anypython, testdir, '--version')
     assert result.ret == 0
     result.stderr.fnmatch_lines([
         "*imported from*mypytest"
     ])
+    p = testdir.makepyfile("def test_func(): assert 0")
+    result = standalone.run(anypython, testdir, p)
+    assert result.ret != 0
 
 @py.test.mark.xfail(reason="fix-dist", run=False)
 def test_rundist(testdir, pytestconfig, standalone):
diff --git a/testing/plugin/test_helpconfig.py b/testing/plugin/test_helpconfig.py
index ae49e45f0..5906ccd67 100644
--- a/testing/plugin/test_helpconfig.py
+++ b/testing/plugin/test_helpconfig.py
@@ -10,11 +10,13 @@ def test_version(testdir):
         '*py.test*%s*imported from*' % (py.version, )
     ])
 
-def test_helpconfig(testdir):
-    result = testdir.runpytest("--help-config")
+def test_help(testdir):
+    result = testdir.runpytest("--help")
     assert result.ret == 0
     result.stdout.fnmatch_lines([
-        "*cmdline*conftest*ENV*",
+        "*-v*verbose*",
+        "*setup.cfg*",
+        "*minversion*",
     ])
 
 def test_collectattr():
diff --git a/testing/plugin/test_python.py b/testing/plugin/test_python.py
index 069e41d62..b5f344c1d 100644
--- a/testing/plugin/test_python.py
+++ b/testing/plugin/test_python.py
@@ -268,9 +268,9 @@ class TestSorting:
             def test_pass(): pass
             def test_fail(): assert 0
         """)
-        fn1 = modcol.collect_by_name("test_pass")
+        fn1 = testdir.collect_by_name(modcol, "test_pass")
         assert isinstance(fn1, py.test.collect.Function)
-        fn2 = modcol.collect_by_name("test_pass")
+        fn2 = testdir.collect_by_name(modcol, "test_pass")
         assert isinstance(fn2, py.test.collect.Function)
 
         assert fn1 == fn2
@@ -279,7 +279,7 @@ class TestSorting:
             assert cmp(fn1, fn2) == 0
         assert hash(fn1) == hash(fn2)
 
-        fn3 = modcol.collect_by_name("test_fail")
+        fn3 = testdir.collect_by_name(modcol, "test_fail")
         assert isinstance(fn3, py.test.collect.Function)
         assert not (fn1 == fn3)
         assert fn1 != fn3
@@ -1092,7 +1092,7 @@ class TestReportInfo:
             class TestClass:
                 def test_hello(self): pass
         """)
-        classcol = modcol.collect_by_name("TestClass")
+        classcol = testdir.collect_by_name(modcol, "TestClass")
         fspath, lineno, msg = classcol.reportinfo()
         assert fspath == modcol.fspath
         assert lineno == 1
@@ -1106,7 +1106,7 @@ class TestReportInfo:
                     assert x
                 yield check, 3
         """)
-        gencol = modcol.collect_by_name("test_gen")
+        gencol = testdir.collect_by_name(modcol, "test_gen")
         fspath, lineno, modpath = gencol.reportinfo()
         assert fspath == modcol.fspath
         assert lineno == 1
diff --git a/testing/plugin/test_terminal.py b/testing/plugin/test_terminal.py
index 5e404f435..244cd0ece 100644
--- a/testing/plugin/test_terminal.py
+++ b/testing/plugin/test_terminal.py
@@ -466,8 +466,8 @@ def test_getreportopt():
     testdict.update(dict(reportchars="sfx"))
     assert getreportopt(config) == "sfx"
 
-def test_terminalreporter_reportopt_conftestsetting(testdir):
-    testdir.makeconftest("option_report = 'skipped'")
+def test_terminalreporter_reportopt_addargs(testdir):
+    testdir.makeini("[pytest]\naddargs=-rs")
     p = testdir.makepyfile("""
         def pytest_funcarg__tr(request):
             tr = request.config.pluginmanager.getplugin("terminalreporter")
diff --git a/testing/test_collect.py b/testing/test_collect.py
index c045b49c1..f81540870 100644
--- a/testing/test_collect.py
+++ b/testing/test_collect.py
@@ -28,9 +28,9 @@ class TestCollector:
             def test_pass(): pass
             def test_fail(): assert 0
         """)
-        fn1 = modcol.collect_by_name("test_pass")
+        fn1 = testdir.collect_by_name(modcol, "test_pass")
         assert isinstance(fn1, py.test.collect.Function)
-        fn2 = modcol.collect_by_name("test_pass")
+        fn2 = testdir.collect_by_name(modcol, "test_pass")
         assert isinstance(fn2, py.test.collect.Function)
 
         assert fn1 == fn2
@@ -39,7 +39,7 @@ class TestCollector:
             assert cmp(fn1, fn2) == 0
         assert hash(fn1) == hash(fn2)
 
-        fn3 = modcol.collect_by_name("test_fail")
+        fn3 = testdir.collect_by_name(modcol, "test_fail")
         assert isinstance(fn3, py.test.collect.Function)
         assert not (fn1 == fn3)
         assert fn1 != fn3
@@ -57,8 +57,9 @@ class TestCollector:
                  def test_foo():
                      pass
         """)
-        cls = modcol.collect_by_name("TestClass")
-        fn = cls.collect_by_name("()").collect_by_name("test_foo")
+        cls = testdir.collect_by_name(modcol, "TestClass")
+        fn = testdir.collect_by_name(
+            testdir.collect_by_name(cls, "()"), "test_foo")
 
         parent = fn.getparent(py.test.collect.Module)
         assert parent is modcol
diff --git a/testing/test_config.py b/testing/test_config.py
index 23d347dfa..5c4226ef8 100644
--- a/testing/test_config.py
+++ b/testing/test_config.py
@@ -1,32 +1,42 @@
 import py
 
-class TestConfigCmdlineParsing:
-    def test_parser_addoption_default_env(self, testdir, monkeypatch):
-        import os
-        config = testdir.Config()
-        group = config._parser.getgroup("hello")
+from pytest.plugin.config import getcfg, Config
 
-        monkeypatch.setitem(os.environ, 'PYTEST_OPTION_OPTION1', 'True')
-        group.addoption("--option1", action="store_true")
-        assert group.options[0].default == True
+class TestParseIni:
+    def test_getcfg_and_config(self, tmpdir):
+        sub = tmpdir.mkdir("sub")
+        sub.chdir()
+        tmpdir.join("setup.cfg").write(py.code.Source("""
+            [pytest]
+            name = value
+        """))
+        cfg = getcfg([sub], ["setup.cfg"])
+        assert cfg['name'] == "value"
+        config = Config()
+        config._preparse([sub])
+        assert config.inicfg['name'] == 'value'
 
-        monkeypatch.setitem(os.environ, 'PYTEST_OPTION_OPTION2', 'abc')
-        group.addoption("--option2", action="store", default="x")
-        assert group.options[1].default == "abc"
-
-        monkeypatch.setitem(os.environ, 'PYTEST_OPTION_OPTION3', '32')
-        group.addoption("--option3", action="store", type="int")
-        assert group.options[2].default == 32
-
-        group.addoption("--option4", action="store", type="int")
-        assert group.options[3].default == ("NO", "DEFAULT")
-
-    def test_parser_addoption_default_conftest(self, testdir, monkeypatch):
-        import os
-        testdir.makeconftest("option_verbose=True")
-        config = testdir.parseconfig()
+    def test_append_parse_args(self, tmpdir):
+        tmpdir.join("setup.cfg").write(py.code.Source("""
+            [pytest]
+            addargs = --verbose
+        """))
+        config = Config()
+        config.parse([tmpdir])
         assert config.option.verbose
 
+    def test_tox_ini_wrong_version(self, testdir):
+        p = testdir.makefile('.ini', tox="""
+            [pytest]
+            minversion=9.0
+        """)
+        result = testdir.runpytest()
+        assert result.ret != 0
+        result.stderr.fnmatch_lines([
+            "*tox.ini:2*requires*9.0*actual*"
+        ])
+
+class TestConfigCmdlineParsing:
     def test_parsing_again_fails(self, testdir):
         config = testdir.reparseconfig([testdir.tmpdir])
         py.test.raises(AssertionError, "config.parse([])")
@@ -97,13 +107,43 @@ class TestConfigAPI:
         p = tmpdir.join("conftest.py")
         p.write("pathlist = ['.', %r]" % str(somepath))
         config = testdir.reparseconfig([p])
-        assert config.getconftest_pathlist('notexist') is None
-        pl = config.getconftest_pathlist('pathlist')
+        assert config._getconftest_pathlist('notexist') is None
+        pl = config._getconftest_pathlist('pathlist')
         print(pl)
         assert len(pl) == 2
         assert pl[0] == tmpdir
         assert pl[1] == somepath
 
+    def test_addini(self, testdir):
+        testdir.makeconftest("""
+            def pytest_addoption(parser):
+                parser.addini("myname", "my new ini value")
+        """)
+        testdir.makeini("""
+            [pytest]
+            myname=hello
+        """)
+        config = testdir.parseconfig()
+        val = config.getini("myname")
+        assert val == "hello"
+        py.test.raises(ValueError, config.getini, 'other')
+
+    def test_addini_pathlist(self, testdir):
+        testdir.makeconftest("""
+            def pytest_addoption(parser):
+                parser.addini("paths", "my new ini value", type="pathlist")
+                parser.addini("abc", "abc value")
+        """)
+        p = testdir.makeini("""
+            [pytest]
+            paths=hello world/sub.py
+        """)
+        config = testdir.parseconfig()
+        l = config.getini("paths")
+        assert len(l) == 2
+        assert l[0] == p.dirpath('hello')
+        assert l[1] == p.dirpath('world/sub.py')
+        py.test.raises(ValueError, config.getini, 'other')
 
 def test_options_on_small_file_do_not_blow_up(testdir):
     def runfiletest(opts):
@@ -140,3 +180,4 @@ def test_preparse_ordering(testdir, monkeypatch):
     config = testdir.parseconfig()
     plugin = config.pluginmanager.getplugin("mytestplugin")
     assert plugin.x == 42
+
diff --git a/testing/test_parseopt.py b/testing/test_parseopt.py
index 3d9672e1a..ab8f6ebca 100644
--- a/testing/test_parseopt.py
+++ b/testing/test_parseopt.py
@@ -1,12 +1,13 @@
 import py
 from pytest.plugin import config as parseopt
+from textwrap import dedent
 
 class TestParser:
-    def test_init(self, capsys):
+    def test_no_help_by_default(self, capsys):
         parser = parseopt.Parser(usage="xyz")
         py.test.raises(SystemExit, 'parser.parse(["-h"])')
         out, err = capsys.readouterr()
-        assert out.find("xyz") != -1
+        assert err.find("no such option") != -1
 
     def test_group_add_and_get(self):
         parser = parseopt.Parser()
@@ -100,6 +101,7 @@ class TestParser:
         assert option.hello == "world"
         assert option.this == 42
 
+
 @py.test.mark.skipif("sys.version_info < (2,5)")
 def test_addoption_parser_epilog(testdir):
     testdir.makeconftest("""
diff --git a/tox.ini b/tox.ini
index 982d61158..ca901ee50 100644
--- a/tox.ini
+++ b/tox.ini
@@ -48,3 +48,7 @@ changedir=testing
 commands=
     {envpython} {envbindir}/py.test-jython --no-tools-on-path \
         -rfsxX --junitxml={envlogdir}/junit-{envname}2.xml [acceptance_test.py plugin]
+
+[pytest]
+minversion=2.0
+plugins=pytester