diff --git a/pkgs/os-specific/linux/fuse/builder.sh b/pkgs/os-specific/linux/fuse/builder.sh
index 3b6e11870080..c0c468e228b0 100644
--- a/pkgs/os-specific/linux/fuse/builder.sh
+++ b/pkgs/os-specific/linux/fuse/builder.sh
@@ -1,11 +1,7 @@
 source $stdenv/setup
 
 export MOUNT_FUSE_PATH=$out/sbin
+export INIT_D_PATH=$out/etc/init.d
+export UDEV_RULES_PATH=$out/etc/udev/rules.d
 
-installPhase () {
-    # !!! quick hack to get fuse to install; it currently tries to
-    # install a device node /dev/fuse.
-    make install || true
-}
-
-genericBuild
\ No newline at end of file
+genericBuild
diff --git a/pkgs/os-specific/linux/fuse/default.nix b/pkgs/os-specific/linux/fuse/default.nix
index 6342a64b2f41..dd5b929e1e4b 100644
--- a/pkgs/os-specific/linux/fuse/default.nix
+++ b/pkgs/os-specific/linux/fuse/default.nix
@@ -1,11 +1,11 @@
 {stdenv, fetchurl}:
 
 stdenv.mkDerivation {
-  name = "fuse-2.4.1";
+  name = "fuse-2.6.1";
   builder = ./builder.sh;
   src = fetchurl {
-    url = http://nix.cs.uu.nl/dist/tarballs/fuse-2.4.1.tar.gz;
-    md5 = "553bd9c5a4f3cd27f3e2b93844711e4c";
+    url = http://heanet.dl.sourceforge.net/sourceforge/fuse/fuse-2.6.1.tar.gz;
+    md5 = "13e1873086a1d7a95f470bbc7428c528";
   };
   configureFlags = [ "--disable-kernel-module" ];
 }