diff --git a/engine/storage/image/src/org/apache/cloudstack/storage/image/ImageServiceImpl.java b/engine/storage/image/src/org/apache/cloudstack/storage/image/ImageServiceImpl.java
index 5898b1b0794..99b1013f964 100644
--- a/engine/storage/image/src/org/apache/cloudstack/storage/image/ImageServiceImpl.java
+++ b/engine/storage/image/src/org/apache/cloudstack/storage/image/ImageServiceImpl.java
@@ -21,11 +21,13 @@ package org.apache.cloudstack.storage.image;
 import javax.inject.Inject;
 
 import org.apache.cloudstack.engine.subsystem.api.storage.CommandResult;
+import org.apache.cloudstack.engine.subsystem.api.storage.CopyCommandResult;
 import org.apache.cloudstack.engine.subsystem.api.storage.CreateCmdResult;
 import org.apache.cloudstack.engine.subsystem.api.storage.DataObject;
 import org.apache.cloudstack.engine.subsystem.api.storage.DataStore;
 import org.apache.cloudstack.engine.subsystem.api.storage.ImageService;
 import org.apache.cloudstack.engine.subsystem.api.storage.ObjectInDataStoreStateMachine;
+import org.apache.cloudstack.engine.subsystem.api.storage.ObjectInDataStoreStateMachine.Event;
 import org.apache.cloudstack.engine.subsystem.api.storage.SnapshotInfo;
 import org.apache.cloudstack.engine.subsystem.api.storage.TemplateEvent;
 import org.apache.cloudstack.engine.subsystem.api.storage.TemplateInfo;
@@ -37,6 +39,7 @@ import org.apache.cloudstack.framework.async.AsyncRpcConext;
 import org.apache.cloudstack.storage.datastore.DataObjectManager;
 import org.apache.cloudstack.storage.datastore.ObjectInDataStoreManager;
 import org.apache.cloudstack.storage.image.store.TemplateObject;
+import org.apache.cloudstack.storage.motion.DataMotionService;
 import org.apache.log4j.Logger;
 import org.springframework.stereotype.Component;
 
@@ -49,6 +52,8 @@ public class ImageServiceImpl implements ImageService {
     ObjectInDataStoreManager objectInDataStoreMgr;
     @Inject
     DataObjectManager dataObjectMgr;
+    @Inject
+    DataMotionService motionSrv;
     
     class CreateTemplateContext<T> extends AsyncRpcConext<T> {
         final TemplateInfo srcTemplate;
@@ -140,17 +145,91 @@ public class ImageServiceImpl implements ImageService {
         return null;
     }
 
+    private class CopyTemplateContext<T> extends AsyncRpcConext<T> {
+        final AsyncCallFuture<CommandResult> future;
+        final DataObject object;
+        /**
+         * @param callback
+         */
+        public CopyTemplateContext(AsyncCompletionCallback<T> callback, AsyncCallFuture<CommandResult> future, DataObject object) {
+            super(callback);
+            this.future = future;
+            this.object = object;
+        }
+        
+    }
     @Override
     public AsyncCallFuture<CommandResult> createTemplateFromSnapshotAsync(
             SnapshotInfo snapshot, TemplateInfo template, DataStore store) {
-        // TODO Auto-generated method stub
+        AsyncCallFuture<CommandResult> future = new AsyncCallFuture<CommandResult>();
+        DataObject templateOnStore = null;
+        try {
+            templateOnStore = store.create(template);
+            templateOnStore.processEvent(Event.CreateOnlyRequested);
+
+            CopyTemplateContext<CommandResult> context = new CopyTemplateContext<CommandResult>(null, future, templateOnStore);
+            AsyncCallbackDispatcher<ImageServiceImpl, CopyCommandResult> caller =  AsyncCallbackDispatcher.create(this);
+            caller.setCallback(caller.getTarget().copyTemplateAsyncCallback(null, null))
+            .setContext(context);
+            this.motionSrv.copyAsync(snapshot, templateOnStore, caller);
+        } catch (Exception e) {
+            s_logger.debug("Failed to create template: " + template.getId() + "from snapshot: " + snapshot.getId() + ", due to " + e.toString());
+            if (templateOnStore != null) {
+                try {
+                templateOnStore.processEvent(Event.OperationFailed);
+                } catch (Exception e1) {
+                    
+                }
+            }
+            CommandResult result = new CommandResult();
+            result.setResult(e.toString());
+            future.complete(result);
+        }
+        return future;
+    }
+    
+    protected Void copyTemplateAsyncCallback(AsyncCallbackDispatcher<ImageServiceImpl, CopyCommandResult> callback, CopyTemplateContext<CommandResult> context) {
+        CopyCommandResult result = callback.getResult();
+        AsyncCallFuture<CommandResult> future = context.future;
+        DataObject object = context.object;
+        CommandResult res = new CommandResult();
+        if (result.isFailed()) {
+            res.setResult(result.getResult());
+            object.processEvent(Event.OperationFailed);
+        } else {
+            object.processEvent(Event.OperationSuccessed);
+        }
+        future.complete(res);
         return null;
     }
 
     @Override
     public AsyncCallFuture<CommandResult> createTemplateFromVolumeAsync(
             VolumeInfo volume, TemplateInfo template, DataStore store) {
-        // TODO Auto-generated method stub
-        return null;
+        AsyncCallFuture<CommandResult> future = new AsyncCallFuture<CommandResult>();
+        DataObject templateOnStore = null;
+        try {
+            templateOnStore = store.create(template);
+            templateOnStore.processEvent(Event.CreateOnlyRequested);
+
+            CopyTemplateContext<CommandResult> context = new CopyTemplateContext<CommandResult>(null, future, templateOnStore);
+            AsyncCallbackDispatcher<ImageServiceImpl, CopyCommandResult> caller =  AsyncCallbackDispatcher.create(this);
+            caller.setCallback(caller.getTarget().copyTemplateAsyncCallback(null, null))
+            .setContext(context);
+            this.motionSrv.copyAsync(volume, templateOnStore, caller);
+        } catch (Exception e) {
+            s_logger.debug("Failed to create template: " + template.getId() + "from volume: " + volume.getId() + ", due to " + e.toString());
+            if (templateOnStore != null) {
+                try {
+                templateOnStore.processEvent(Event.OperationFailed);
+                } catch (Exception e1) {
+                    
+                }
+            }
+            CommandResult result = new CommandResult();
+            result.setResult(e.toString());
+            future.complete(result);
+        }
+        return future;
     }
 }
diff --git a/engine/storage/src/org/apache/cloudstack/storage/motion/AncientDataMotionStrategy.java b/engine/storage/src/org/apache/cloudstack/storage/motion/AncientDataMotionStrategy.java
index ad9238a937d..a6880c3f548 100644
--- a/engine/storage/src/org/apache/cloudstack/storage/motion/AncientDataMotionStrategy.java
+++ b/engine/storage/src/org/apache/cloudstack/storage/motion/AncientDataMotionStrategy.java
@@ -668,9 +668,7 @@ public class AncientDataMotionStrategy implements DataMotionStrategy {
         String checkSum = this.templateMgr
                 .getChecksum(hostId, answer.getPath());
 
-        Transaction txn = Transaction.currentTxn();
 
-        txn.start();
 
         privateTemplate.setChecksum(checkSum);
         templateDao.update(privateTemplate.getId(), privateTemplate);
@@ -685,8 +683,9 @@ public class AncientDataMotionStrategy implements DataMotionStrategy {
         templateHostVO.setLastUpdated(new Date());
         templateHostVO.setSize(answer.getVirtualSize());
         templateHostVO.setPhysicalSize(answer.getphysicalSize());
+       
         templateHostDao.persist(templateHostVO);
-        txn.close();
+  
         return answer;
     }
 
diff --git a/server/src/com/cloud/template/TemplateManagerImpl.java b/server/src/com/cloud/template/TemplateManagerImpl.java
index 576440a2ce7..c7eaa64335e 100755
--- a/server/src/com/cloud/template/TemplateManagerImpl.java
+++ b/server/src/com/cloud/template/TemplateManagerImpl.java
@@ -1716,8 +1716,17 @@ public class TemplateManagerImpl extends ManagerBase implements TemplateManager,
 
         try {
             TemplateInfo tmplInfo = this.tmplFactory.getTemplate(templateId);
-            snapshot = _snapshotDao.findById(snapshotId);
-            ZoneScope scope = new ZoneScope(snapshot.getDataCenterId());
+            ZoneScope scope = null;
+            Long zoneId = null;
+            if (snapshotId != null) {
+                snapshot = _snapshotDao.findById(snapshotId);
+                zoneId = snapshot.getDataCenterId();
+                
+            } else if (volumeId != null) {
+                volume = _volumeDao.findById(volumeId);
+                zoneId = volume.getDataCenterId();
+            }
+            scope = new ZoneScope(zoneId);
             List<DataStore> store = this.dataStoreMgr.getImageStores(scope);
             if (store.size() > 1) {
                 throw new CloudRuntimeException("muliple image data store, don't know which one to use");
@@ -1727,7 +1736,6 @@ public class TemplateManagerImpl extends ManagerBase implements TemplateManager,
                 SnapshotInfo snapInfo = this.snapshotFactory.getSnapshot(snapshotId);
                 future = this.imageSvr.createTemplateFromSnapshotAsync(snapInfo, tmplInfo, store.get(0));
             } else if (volumeId != null) {
-               volume = _volumeDao.findById(volumeId);
                VolumeInfo volInfo = this.volFactory.getVolume(volumeId);
                future = this.imageSvr.createTemplateFromVolumeAsync(volInfo, tmplInfo, store.get(0));
             } else {
@@ -1748,7 +1756,7 @@ public class TemplateManagerImpl extends ManagerBase implements TemplateManager,
                 UsageEventVO usageEvent = new UsageEventVO(
                         EventTypes.EVENT_TEMPLATE_CREATE,
                         privateTemplate.getAccountId(),
-                        snapshot.getDataCenterId(),
+                        zoneId,
                         privateTemplate.getId(), privateTemplate.getName(),
                         null, privateTemplate.getSourceTemplateId(),
                         privateTemplate.getSize());
@@ -1971,6 +1979,7 @@ public class TemplateManagerImpl extends ManagerBase implements TemplateManager,
             }
         }
         privateTemplate.setSourceTemplateId(sourceTemplateId);
+        privateTemplate.setImageDataStoreId(1);
 
         VMTemplateVO template = this._tmpltDao.persist(privateTemplate);
         // Increment the number of templates