diff --git a/CHANGELOG b/CHANGELOG
index 565cd29..08481d8 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,3 +1,10 @@
+1.6 (dev)
+-------------------------
+
+- terser collection reporting
+
+- fix issue34 - distributed testing with -p plugin now works correctly
+
 1.5
 -------------------------
 
diff --git a/setup.py b/setup.py
index cc962b3..d3bdd11 100644
--- a/setup.py
+++ b/setup.py
@@ -2,7 +2,7 @@ from setuptools import setup
 
 setup(
     name="pytest-xdist",
-    version='1.6.dev2',
+    version='1.6.dev3',
     description='py.test xdist plugin for distributed testing and loop-on-failing modes',
     long_description=open('README.txt').read(),
     license='GPLv2 or later',
@@ -13,7 +13,7 @@ setup(
     packages = ['xdist'],
     entry_points = {'pytest11': ['xdist = xdist.plugin'],},
     zip_safe=False,
-    install_requires = ['execnet>=1.0.8', 'pytest>1.9.9'],
+    install_requires = ['execnet>=1.0.8', 'pytest>2.0.2'],
     classifiers=[
     'Development Status :: 5 - Production/Stable',
     'Intended Audience :: Developers',
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index e691e48..5d873ea 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -407,5 +407,18 @@ def test_skipping(testdir):
         "*1 skipped*"
     ])
 
-
-
+def test_issue34_pluginloading_in_subprocess(testdir):
+    testdir.tmpdir.join("plugin123.py").write(py.code.Source("""
+        def pytest_namespace():
+            return {'sample_variable': 'testing'}
+    """))
+    testdir.makepyfile("""
+        import pytest
+        def test_hello():
+            assert pytest.sample_variable == "testing"
+    """)
+    result = testdir.runpytest("-n1", "-p", "plugin123")
+    assert result.ret == 0
+    result.stdout.fnmatch_lines([
+        "*1 passed*",
+    ])
diff --git a/testing/test_remote.py b/testing/test_remote.py
index 870f0af..ad52e2e 100644
--- a/testing/test_remote.py
+++ b/testing/test_remote.py
@@ -62,7 +62,7 @@ def test_remoteinitconfig(testdir):
     config1 = testdir.parseconfig()
     config2 = remote_initconfig(config1.option.__dict__, config1.args)
     assert config2.option.__dict__ == config1.option.__dict__
-    assert config2.pluginmanager.getplugin("terminal") == None
+    assert config2.pluginmanager.getplugin("terminal") in (-1, None)
 
 class TestReportSerialization:
     def test_itemreport_outcomes(self, testdir):
diff --git a/xdist/__init__.py b/xdist/__init__.py
index 2021c97..2404b09 100644
--- a/xdist/__init__.py
+++ b/xdist/__init__.py
@@ -1,2 +1,2 @@
 #
-__version__ = '1.6.dev2'
+__version__ = '1.6.dev3'
diff --git a/xdist/looponfail.py b/xdist/looponfail.py
index 7ed7c94..9136bcd 100644
--- a/xdist/looponfail.py
+++ b/xdist/looponfail.py
@@ -120,9 +120,7 @@ def init_slave_session(channel, args, option_dict):
 
     #fullwidth, hasmarkup = channel.receive()
     from _pytest.config import Config
-    config = Config()
-    config.option.__dict__.update(option_dict)
-    config._preparse(list(args))
+    config = Config.fromdictargs(option_dict, list(args))
     config.args = args
     from xdist.looponfail import SlaveFailSession
     SlaveFailSession(config, channel).main()
diff --git a/xdist/remote.py b/xdist/remote.py
index aa382b7..9a2cc52 100644
--- a/xdist/remote.py
+++ b/xdist/remote.py
@@ -109,10 +109,8 @@ def getinfodict():
 
 def remote_initconfig(option_dict, args):
     from _pytest.config import Config
-    config = Config()
-    config.pluginmanager.unregister(name="terminal")
-    config._preparse(args, addopts=False)
-    config.option.__dict__.update(option_dict)
+    option_dict['plugins'].append("no:terminal")
+    config = Config.fromdictargs(option_dict, args)
     config.option.looponfail = False
     config.option.usepdb = False
     config.option.dist = "no"