diff --git a/MANIFEST b/MANIFEST
index 8cf609ae9..f32c63e68 100644
--- a/MANIFEST
+++ b/MANIFEST
@@ -6,6 +6,7 @@ _findpy.py
 doc/announce/release-0.9.0.txt
 doc/announce/release-0.9.2.txt
 doc/announce/release-1.0.0.txt
+doc/announce/release-1.0.1.txt
 doc/announce/releases.txt
 doc/bin.txt
 doc/code.txt
@@ -244,6 +245,7 @@ py/misc/testing/test_cache.py
 py/misc/testing/test_com.py
 py/misc/testing/test_error.py
 py/misc/testing/test_initpkg.py
+py/misc/testing/test_install.py
 py/misc/testing/test_std.py
 py/misc/testing/test_svnlook.py
 py/misc/testing/test_terminal.py
@@ -386,7 +388,6 @@ py/test/testing/test_conftesthandle.py
 py/test/testing/test_deprecated_api.py
 py/test/testing/test_funcargs.py
 py/test/testing/test_genitems.py
-py/test/testing/test_install.py
 py/test/testing/test_outcome.py
 py/test/testing/test_parseopt.py
 py/test/testing/test_pickling.py
diff --git a/doc/announce/release-1.0.1.txt b/doc/announce/release-1.0.1.txt
new file mode 100644
index 000000000..593e45873
--- /dev/null
+++ b/doc/announce/release-1.0.1.txt
@@ -0,0 +1,45 @@
+1.0.1: bug fixes, nose/unittest.py support, improved reporting
+--------------------------------------------------------------------
+
+The py.test/pylib 1.0.1 release is a bugfix release for 1.0.1, coming
+with improved documentation and more support for running existing
+nose/unittest.py style test suites.  Checkout:
+
+    quickstart: http://codespeak.net/py/current/test/quickstart.html
+
+    pytest: http://pytest.org 
+
+    pylib: http://pylib.org 
+
+or read on for the changelog. 
+
+Changes 1.0.0 to 1.0.1 
+------------------------
+
+* added a 'pytest_nose' plugin which handles nose.SkipTest, 
+  nose-style function/method/generator setup/teardown and 
+  tries to report functions correctly.  
+
+* much improved documentation layout: see http://pytest.org 
+
+* unicode fixes: capturing and unicode writes to sys.stdout 
+  (through e.g a print statement) now work within tests, 
+  they are encoded as "utf8" by default, also terminalwriting 
+  was adapted and somewhat unified between windows and linux 
+
+* fix issue #27: better reporting on non-collectable items given on commandline 
+  (e.g. pyc files)
+
+* fix issue #33: added --version flag (thanks Benjamin Peterson) 
+
+* fix issue #32: adding support for "incomplete" paths to wcpath.status()
+
+* "Test" prefixed classes are *not* collected by default anymore if they 
+  have an __init__ method 
+
+* monkeypatch setenv() now accepts a "prepend" parameter
+
+* improved reporting of collection error tracebacks
+
+* simplified multicall mechanism and plugin architecture, 
+  renamed some internal methods and argnames 
diff --git a/example/assertion/test_failures.py b/example/assertion/test_failures.py
index b5a05fffb..b2b2bae6f 100644
--- a/example/assertion/test_failures.py
+++ b/example/assertion/test_failures.py
@@ -11,4 +11,4 @@ def test_failure_demo_fails_properly(testdir):
     assert failed == 20, failed
     colreports = reprec.getreports("pytest_collectreport")
     failed = len([x.failed for x in colreports])
-    assert failed == 5
+    assert failed == 4
diff --git a/py/test/testing/test_install.py b/py/misc/testing/test_install.py
similarity index 100%
rename from py/test/testing/test_install.py
rename to py/misc/testing/test_install.py
diff --git a/py/test/plugin/test_pytest_terminal.py b/py/test/plugin/test_pytest_terminal.py
index 6b4ddff56..97683babc 100644
--- a/py/test/plugin/test_pytest_terminal.py
+++ b/py/test/plugin/test_pytest_terminal.py
@@ -249,7 +249,7 @@ class TestTerminal:
         ])
         result = testdir.runpytest("-v", p2)
         result.stdout.fnmatch_lines([
-            "*test_p2.py <- test_p1.py:2: TestMore.test_p1*",
+            "*test_p2.py <- *test_p1.py:2: TestMore.test_p1*",
         ])
 
     def test_keyboard_interrupt_dist(self, testdir, option):