diff --git a/policy-20070703.patch b/policy-20070703.patch
index 853a0b9..d196d98 100644
--- a/policy-20070703.patch
+++ b/policy-20070703.patch
@@ -9334,7 +9334,7 @@ diff --exclude-from=exclude -N -u -r nsaserefpolicy/policy/modules/services/xser
 +
 diff --exclude-from=exclude -N -u -r nsaserefpolicy/policy/modules/services/xserver.te serefpolicy-3.0.7/policy/modules/services/xserver.te
 --- nsaserefpolicy/policy/modules/services/xserver.te	2007-08-22 07:14:07.000000000 -0400
-+++ serefpolicy-3.0.7/policy/modules/services/xserver.te	2007-09-07 15:02:10.000000000 -0400
++++ serefpolicy-3.0.7/policy/modules/services/xserver.te	2007-09-07 16:19:01.000000000 -0400
 @@ -16,6 +16,13 @@
  
  ## <desc>
@@ -9370,14 +9370,14 @@ diff --exclude-from=exclude -N -u -r nsaserefpolicy/policy/modules/services/xser
  
  allow xdm_t xdm_xserver_t:process signal;
  allow xdm_t xdm_xserver_t:unix_stream_socket connectto;
-@@ -189,6 +200,7 @@
+@@ -185,6 +196,7 @@
+ corenet_udp_sendrecv_all_ports(xdm_t)
+ corenet_tcp_bind_all_nodes(xdm_t)
+ corenet_udp_bind_all_nodes(xdm_t)
++corenet_udp_bind_xdmcp_port(xdm_t)
+ corenet_tcp_connect_all_ports(xdm_t)
  corenet_sendrecv_all_client_packets(xdm_t)
  # xdm tries to bind to biff_port_t
- corenet_dontaudit_tcp_bind_all_ports(xdm_t)
-+corenet_udp_bind_xdmcp_ports(xdm_t)
- 
- dev_read_rand(xdm_t)
- dev_read_sysfs(xdm_t)
 @@ -246,6 +258,7 @@
  auth_domtrans_pam_console(xdm_t)
  auth_manage_pam_pid(xdm_t)
diff --git a/selinux-policy.spec b/selinux-policy.spec
index 86d1930..8afa942 100644
--- a/selinux-policy.spec
+++ b/selinux-policy.spec
@@ -17,7 +17,7 @@
 Summary: SELinux policy configuration
 Name: selinux-policy
 Version: 3.0.7
-Release: 6%{?dist}
+Release: 7%{?dist}
 License: GPLv2+
 Group: System Environment/Base
 Source: serefpolicy-%{version}.tgz
@@ -194,8 +194,8 @@ make clean
 %if %{BUILD_TARGETED}
 # Build targeted policy
 # Commented out because only targeted ref policy currently builds
-%setupCmds targeted mcs y y
-%installCmds targeted mcs y y
+%setupCmds targeted mcs n y
+%installCmds targeted mcs n y
 %endif
 
 %if %{BUILD_MLS}
@@ -207,8 +207,8 @@ make clean
 %if %{BUILD_OLPC}
 # Build targeted policy
 # Commented out because only targeted ref policy currently builds
-%setupCmds olpc mcs y y
-%installCmds olpc mcs y y
+%setupCmds olpc mcs n y
+%installCmds olpc mcs n y
 %endif
 
 make NAME=targeted TYPE=targeted-mcs DISTRO=%{distro} DIRECT_INITRC=n MONOLITHIC=%{monolithic} DESTDIR=%{buildroot} PKGNAME=%{name}-%{version} POLY=y MLS_CATS=1024 MCS_CATS=1024 install-headers install-docs
@@ -362,6 +362,9 @@ exit 0
 %endif
 
 %changelog
+* Fri Sep 7 2007 Dan Walsh <dwalsh@redhat.com> 3.0.7-7
+- Turn off direct transition
+
 * Fri Sep 7 2007 Dan Walsh <dwalsh@redhat.com> 3.0.7-6
 - Allow wine to run in system role