diff --git a/borg/archiver.py b/borg/archiver.py
index 3583870ce..ff0c259ba 100644
--- a/borg/archiver.py
+++ b/borg/archiver.py
@@ -34,6 +34,9 @@ from .remote import RepositoryServer, RemoteRepository
 
 has_lchflags = hasattr(os, 'lchflags')
 
+# default umask, overriden by --umask, defaults to read/write only for owner
+UMASK_DEFAULT = 0o077
+
 
 class ToggleAction(argparse.Action):
     """argparse action to handle "toggle" flags easily
@@ -55,9 +58,10 @@ class Archiver:
         self.exit_code = EXIT_SUCCESS
         self.lock_wait = lock_wait
 
-    def open_repository(self, location, create=False, exclusive=False, lock=True):
+    def open_repository(self, args, create=False, exclusive=False, lock=True):
+        location = args.location  # note: 'location' must be always present in args
         if location.proto == 'ssh':
-            repository = RemoteRepository(location, create=create, lock_wait=self.lock_wait, lock=lock)
+            repository = RemoteRepository(location, create=create, lock_wait=self.lock_wait, lock=lock, args=args)
         else:
             repository = Repository(location.path, create=create, exclusive=exclusive, lock_wait=self.lock_wait, lock=lock)
         repository._location = location
@@ -84,8 +88,8 @@ class Archiver:
 
     def do_init(self, args):
         """Initialize an empty repository"""
-        logger.info('Initializing repository at "%s"' % args.repository.canonical_path())
-        repository = self.open_repository(args.repository, create=True, exclusive=True)
+        logger.info('Initializing repository at "%s"' % args.location.canonical_path())
+        repository = self.open_repository(args, create=True, exclusive=True)
         key = key_creator(repository, args)
         manifest = Manifest(key, repository)
         manifest.key = key
@@ -96,7 +100,7 @@ class Archiver:
 
     def do_check(self, args):
         """Check repository consistency"""
-        repository = self.open_repository(args.repository, exclusive=args.repair)
+        repository = self.open_repository(args, exclusive=args.repair)
         if args.repair:
             msg = ("'check --repair' is an experimental feature that might result in data loss." +
                    "\n" +
@@ -108,14 +112,14 @@ class Archiver:
             if not repository.check(repair=args.repair, save_space=args.save_space):
                 return EXIT_WARNING
         if not args.repo_only and not ArchiveChecker().check(
-                repository, repair=args.repair, archive=args.repository.archive,
+                repository, repair=args.repair, archive=args.location.archive,
                 last=args.last, save_space=args.save_space):
             return EXIT_WARNING
         return EXIT_SUCCESS
 
     def do_change_passphrase(self, args):
         """Change repository key file passphrase"""
-        repository = self.open_repository(args.repository)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
         key.change_passphrase()
         return EXIT_SUCCESS
@@ -126,13 +130,13 @@ class Archiver:
         dry_run = args.dry_run
         t0 = datetime.now()
         if not dry_run:
-            repository = self.open_repository(args.archive, exclusive=True)
+            repository = self.open_repository(args, exclusive=True)
             manifest, key = Manifest.load(repository)
             compr_args = dict(buffer=COMPR_BUFFER)
             compr_args.update(args.compression)
             key.compressor = Compressor(**compr_args)
             cache = Cache(repository, key, manifest, do_files=args.cache_files, lock_wait=self.lock_wait)
-            archive = Archive(repository, key, manifest, args.archive.archive, cache=cache,
+            archive = Archive(repository, key, manifest, args.location.archive, cache=cache,
                               create=True, checkpoint_interval=args.checkpoint_interval,
                               numeric_owner=args.numeric_owner, progress=args.progress,
                               chunker_params=args.chunker_params, start=t0)
@@ -146,9 +150,9 @@ class Archiver:
         except IOError:
             pass
         # Add local repository dir to inode_skip list
-        if not args.archive.host:
+        if not args.location.host:
             try:
-                st = os.stat(args.archive.path)
+                st = os.stat(args.location.path)
                 skip_inodes.add((st.st_ino, st.st_dev))
             except IOError:
                 pass
@@ -271,9 +275,9 @@ class Archiver:
             logger.warning('Warning: File system encoding is "ascii", extracting non-ascii filenames will not be supported.')
             if sys.platform.startswith(('linux', 'freebsd', 'netbsd', 'openbsd', 'darwin', )):
                 logger.warning('Hint: You likely need to fix your locale setup. E.g. install locales and use: LANG=en_US.UTF-8')
-        repository = self.open_repository(args.archive)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
-        archive = Archive(repository, key, manifest, args.archive.archive,
+        archive = Archive(repository, key, manifest, args.location.archive,
                           numeric_owner=args.numeric_owner)
         patterns = adjust_patterns(args.paths, args.excludes)
         dry_run = args.dry_run
@@ -313,10 +317,10 @@ class Archiver:
 
     def do_rename(self, args):
         """Rename an existing archive"""
-        repository = self.open_repository(args.archive, exclusive=True)
+        repository = self.open_repository(args, exclusive=True)
         manifest, key = Manifest.load(repository)
         cache = Cache(repository, key, manifest, lock_wait=self.lock_wait)
-        archive = Archive(repository, key, manifest, args.archive.archive, cache=cache)
+        archive = Archive(repository, key, manifest, args.location.archive, cache=cache)
         archive.rename(args.name)
         manifest.write()
         repository.commit()
@@ -325,11 +329,11 @@ class Archiver:
 
     def do_delete(self, args):
         """Delete an existing repository or archive"""
-        repository = self.open_repository(args.target, exclusive=True)
+        repository = self.open_repository(args, exclusive=True)
         manifest, key = Manifest.load(repository)
         cache = Cache(repository, key, manifest, do_files=args.cache_files, lock_wait=self.lock_wait)
-        if args.target.archive:
-            archive = Archive(repository, key, manifest, args.target.archive, cache=cache)
+        if args.location.archive:
+            archive = Archive(repository, key, manifest, args.location.archive, cache=cache)
             stats = Statistics()
             archive.delete(stats)
             manifest.write()
@@ -368,11 +372,11 @@ class Archiver:
             self.print_error('%s: Mountpoint must be a writable directory' % args.mountpoint)
             return self.exit_code
 
-        repository = self.open_repository(args.src)
+        repository = self.open_repository(args)
         try:
             manifest, key = Manifest.load(repository)
-            if args.src.archive:
-                archive = Archive(repository, key, manifest, args.src.archive)
+            if args.location.archive:
+                archive = Archive(repository, key, manifest, args.location.archive)
             else:
                 archive = None
             operations = FuseOperations(key, repository, manifest, archive)
@@ -388,10 +392,10 @@ class Archiver:
 
     def do_list(self, args):
         """List archive or repository contents"""
-        repository = self.open_repository(args.src)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
-        if args.src.archive:
-            archive = Archive(repository, key, manifest, args.src.archive)
+        if args.location.archive:
+            archive = Archive(repository, key, manifest, args.location.archive)
             if args.short:
                 for item in archive.iter_items():
                     print(remove_surrogates(item[b'path']))
@@ -432,10 +436,10 @@ class Archiver:
 
     def do_info(self, args):
         """Show archive details such as disk space used"""
-        repository = self.open_repository(args.archive)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
         cache = Cache(repository, key, manifest, do_files=args.cache_files, lock_wait=self.lock_wait)
-        archive = Archive(repository, key, manifest, args.archive.archive, cache=cache)
+        archive = Archive(repository, key, manifest, args.location.archive, cache=cache)
         stats = archive.calc_stats(cache)
         print('Name:', archive.name)
         print('Fingerprint: %s' % hexlify(archive.id).decode('ascii'))
@@ -451,7 +455,7 @@ class Archiver:
 
     def do_prune(self, args):
         """Prune repository archives according to specified rules"""
-        repository = self.open_repository(args.repository, exclusive=True)
+        repository = self.open_repository(args, exclusive=True)
         manifest, key = Manifest.load(repository)
         cache = Cache(repository, key, manifest, do_files=args.cache_files, lock_wait=self.lock_wait)
         archives = manifest.list_archive_infos(sort_by='ts', reverse=True)  # just a ArchiveInfo list
@@ -506,7 +510,7 @@ class Archiver:
         # to be implemented.
 
         # XXX: should auto-detect if it is an attic repository here
-        repo = AtticRepositoryUpgrader(args.repository.path, create=False)
+        repo = AtticRepositoryUpgrader(args.location.path, create=False)
         try:
             repo.upgrade(args.dry_run, inplace=args.inplace)
         except NotImplementedError as e:
@@ -515,9 +519,9 @@ class Archiver:
 
     def do_debug_dump_archive_items(self, args):
         """dump (decrypted, decompressed) archive items metadata (not: data)"""
-        repository = self.open_repository(args.archive)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
-        archive = Archive(repository, key, manifest, args.archive.archive)
+        archive = Archive(repository, key, manifest, args.location.archive)
         for i, item_id in enumerate(archive.metadata[b'items']):
             data = key.decrypt(item_id, repository.get(item_id))
             filename = '%06d_%s.items' %(i, hexlify(item_id).decode('ascii'))
@@ -529,7 +533,7 @@ class Archiver:
 
     def do_debug_get_obj(self, args):
         """get object contents from the repository and write it into file"""
-        repository = self.open_repository(args.repository)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
         hex_id = args.id
         try:
@@ -549,7 +553,7 @@ class Archiver:
 
     def do_debug_put_obj(self, args):
         """put file(s) contents into the repository"""
-        repository = self.open_repository(args.repository)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
         for path in args.paths:
             with open(path, "rb") as f:
@@ -562,7 +566,7 @@ class Archiver:
 
     def do_debug_delete_obj(self, args):
         """delete the objects with the given IDs from the repo"""
-        repository = self.open_repository(args.repository)
+        repository = self.open_repository(args)
         manifest, key = Manifest.load(repository)
         modified = False
         for hex_id in args.ids:
@@ -584,7 +588,7 @@ class Archiver:
 
     def do_break_lock(self, args):
         """Break the repository lock (e.g. in case it was left by a dead borg."""
-        repository = self.open_repository(args.repository, lock=False)
+        repository = self.open_repository(args, lock=False)
         try:
             repository.break_lock()
             Cache.break_lock(repository)
@@ -673,9 +677,9 @@ class Archiver:
                                    help='show/log the return code (rc)')
         common_parser.add_argument('--no-files-cache', dest='cache_files', action='store_false',
                                    help='do not load/update the file metadata cache used to detect unchanged files')
-        common_parser.add_argument('--umask', dest='umask', type=lambda s: int(s, 8), default=RemoteRepository.umask, metavar='M',
+        common_parser.add_argument('--umask', dest='umask', type=lambda s: int(s, 8), default=UMASK_DEFAULT, metavar='M',
                                    help='set umask to M (local and remote, default: %(default)04o)')
-        common_parser.add_argument('--remote-path', dest='remote_path', default=RemoteRepository.remote_path, metavar='PATH',
+        common_parser.add_argument('--remote-path', dest='remote_path', default='borg', metavar='PATH',
                                    help='set remote path to executable (default: "%(default)s")')
 
         parser = argparse.ArgumentParser(prog=prog, description='Borg - Deduplicated Backups')
@@ -703,7 +707,7 @@ class Archiver:
                                           description=self.do_init.__doc__, epilog=init_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_init)
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='repository to create')
         subparser.add_argument('-e', '--encryption', dest='encryption',
@@ -751,7 +755,7 @@ class Archiver:
                                           epilog=check_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_check)
-        subparser.add_argument('repository', metavar='REPOSITORY_OR_ARCHIVE', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY_OR_ARCHIVE', nargs='?', default='',
                                type=location_validator(),
                                help='repository or archive to check consistency of')
         subparser.add_argument('--repository-only', dest='repo_only', action='store_true',
@@ -779,7 +783,7 @@ class Archiver:
                                           epilog=change_passphrase_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_change_passphrase)
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False))
 
         create_epilog = textwrap.dedent("""
@@ -853,7 +857,7 @@ class Archiver:
         subparser.add_argument('-n', '--dry-run', dest='dry_run',
                                action='store_true', default=False,
                                help='do not create a backup archive')
-        subparser.add_argument('archive', metavar='ARCHIVE',
+        subparser.add_argument('location', metavar='ARCHIVE',
                                type=location_validator(archive=True),
                                help='name of archive to create (must be also a valid directory name)')
         subparser.add_argument('paths', metavar='PATH', nargs='+', type=str,
@@ -893,7 +897,7 @@ class Archiver:
         subparser.add_argument('--sparse', dest='sparse',
                                action='store_true', default=False,
                                help='create holes in output sparse file from all-zero chunks')
-        subparser.add_argument('archive', metavar='ARCHIVE',
+        subparser.add_argument('location', metavar='ARCHIVE',
                                type=location_validator(archive=True),
                                help='archive to extract')
         subparser.add_argument('paths', metavar='PATH', nargs='*', type=str,
@@ -907,7 +911,7 @@ class Archiver:
                                           epilog=rename_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_rename)
-        subparser.add_argument('archive', metavar='ARCHIVE',
+        subparser.add_argument('location', metavar='ARCHIVE',
                                type=location_validator(archive=True),
                                help='archive to rename')
         subparser.add_argument('name', metavar='NEWNAME', type=str,
@@ -932,7 +936,7 @@ class Archiver:
         subparser.add_argument('--save-space', dest='save_space', action='store_true',
                                default=False,
                                help='work slower, but using less space')
-        subparser.add_argument('target', metavar='TARGET', nargs='?', default='',
+        subparser.add_argument('location', metavar='TARGET', nargs='?', default='',
                                type=location_validator(),
                                help='archive or repository to delete')
 
@@ -949,7 +953,7 @@ class Archiver:
                                help='only print file/directory names, nothing else')
         subparser.add_argument('-p', '--prefix', dest='prefix', type=str,
                                help='only consider archive names starting with this prefix')
-        subparser.add_argument('src', metavar='REPOSITORY_OR_ARCHIVE', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY_OR_ARCHIVE', nargs='?', default='',
                                type=location_validator(),
                                help='repository/archive to list contents of')
 
@@ -964,7 +968,7 @@ class Archiver:
                                           epilog=mount_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_mount)
-        subparser.add_argument('src', metavar='REPOSITORY_OR_ARCHIVE', type=location_validator(),
+        subparser.add_argument('location', metavar='REPOSITORY_OR_ARCHIVE', type=location_validator(),
                                help='repository/archive to mount')
         subparser.add_argument('mountpoint', metavar='MOUNTPOINT', type=str,
                                help='where to mount filesystem')
@@ -982,7 +986,7 @@ class Archiver:
                                           epilog=info_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_info)
-        subparser.add_argument('archive', metavar='ARCHIVE',
+        subparser.add_argument('location', metavar='ARCHIVE',
                                type=location_validator(archive=True),
                                help='archive to display information about')
 
@@ -996,7 +1000,7 @@ class Archiver:
                                           epilog=break_lock_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_break_lock)
-        subparser.add_argument('repository', metavar='REPOSITORY',
+        subparser.add_argument('location', metavar='REPOSITORY',
                                type=location_validator(archive=False),
                                help='repository for which to break the locks')
 
@@ -1052,7 +1056,7 @@ class Archiver:
         subparser.add_argument('--save-space', dest='save_space', action='store_true',
                                default=False,
                                help='work slower, but using less space')
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='repository to prune')
 
@@ -1104,7 +1108,7 @@ class Archiver:
                                default=False, action='store_true',
                                help="""rewrite repository in place, with no chance of going back to older
                                versions of the repository.""")
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='path to the repository to be upgraded')
 
@@ -1126,7 +1130,7 @@ class Archiver:
                                           epilog=debug_dump_archive_items_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_debug_dump_archive_items)
-        subparser.add_argument('archive', metavar='ARCHIVE',
+        subparser.add_argument('location', metavar='ARCHIVE',
                                type=location_validator(archive=True),
                                help='archive to dump')
 
@@ -1138,7 +1142,7 @@ class Archiver:
                                           epilog=debug_get_obj_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_debug_get_obj)
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='repository to use')
         subparser.add_argument('id', metavar='ID', type=str,
@@ -1154,7 +1158,7 @@ class Archiver:
                                           epilog=debug_put_obj_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_debug_put_obj)
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='repository to use')
         subparser.add_argument('paths', metavar='PATH', nargs='+', type=str,
@@ -1168,7 +1172,7 @@ class Archiver:
                                           epilog=debug_delete_obj_epilog,
                                           formatter_class=argparse.RawDescriptionHelpFormatter)
         subparser.set_defaults(func=self.do_debug_delete_obj)
-        subparser.add_argument('repository', metavar='REPOSITORY', nargs='?', default='',
+        subparser.add_argument('location', metavar='REPOSITORY', nargs='?', default='',
                                type=location_validator(archive=False),
                                help='repository to use')
         subparser.add_argument('ids', metavar='IDs', nargs='+', type=str,
@@ -1187,9 +1191,7 @@ class Archiver:
     def run(self, args):
         os.umask(args.umask)  # early, before opening files
         self.lock_wait = args.lock_wait
-        RemoteRepository.remote_path = args.remote_path
-        RemoteRepository.umask = args.umask
-        setup_logging(level=args.log_level)  # do not use loggers before this!
+        setup_logging(level=args.log_level, is_serve=args.func == self.do_serve)  # do not use loggers before this!
         check_extension_modules()
         keys_dir = get_keys_dir()
         if not os.path.exists(keys_dir):
@@ -1261,7 +1263,7 @@ def main():  # pragma: no cover
             msg += "\n%s\n%s" % (traceback.format_exc(), sysinfo())
         exit_code = e.exit_code
     except RemoteRepository.RPCError as e:
-        msg = 'Remote Exception.\n%s\n%s' % (str(e), sysinfo())
+        msg = '%s\n%s' % (str(e), sysinfo())
         exit_code = EXIT_ERROR
     except Exception:
         msg = 'Local Exception.\n%s\n%s' % (traceback.format_exc(), sysinfo())
diff --git a/borg/helpers.py b/borg/helpers.py
index df6f1163b..925dfb113 100644
--- a/borg/helpers.py
+++ b/borg/helpers.py
@@ -912,7 +912,8 @@ class ProgressIndicatorPercent:
             return self.output(pct)
 
     def output(self, percent):
-        print(self.msg % percent, file=self.file, end='\r' if self.same_line else '\n')
+        print(self.msg % percent, file=self.file, end='\r' if self.same_line else '\n')  # python 3.3 gives us flush=True
+        self.file.flush()
 
     def finish(self):
         if self.same_line:
diff --git a/borg/key.py b/borg/key.py
index a712cd133..a39b1e318 100644
--- a/borg/key.py
+++ b/borg/key.py
@@ -363,7 +363,7 @@ class KeyfileKey(KeyfileKeyBase):
         raise KeyfileNotFoundError(self.repository._location.canonical_path(), get_keys_dir())
 
     def get_new_target(self, args):
-        filename = args.repository.to_key_filename()
+        filename = args.location.to_key_filename()
         path = filename
         i = 1
         while os.path.exists(path):
diff --git a/borg/logger.py b/borg/logger.py
index a40f676c7..f2350f8d7 100644
--- a/borg/logger.py
+++ b/borg/logger.py
@@ -52,7 +52,7 @@ def _log_warning(message, category, filename, lineno, file=None, line=None):
     logger.warning(msg)
 
 
-def setup_logging(stream=None, conf_fname=None, env_var='BORG_LOGGING_CONF', level='info'):
+def setup_logging(stream=None, conf_fname=None, env_var='BORG_LOGGING_CONF', level='info', is_serve=False):
     """setup logging module according to the arguments provided
 
     if conf_fname is given (or the config file name can be determined via
@@ -60,6 +60,9 @@ def setup_logging(stream=None, conf_fname=None, env_var='BORG_LOGGING_CONF', lev
 
     otherwise, set up a stream handler logger on stderr (by default, if no
     stream is provided).
+
+    if is_serve == True, we configure a special log format as expected by
+    the borg client log message interceptor.
     """
     global configured
     err_msg = None
@@ -84,9 +87,11 @@ def setup_logging(stream=None, conf_fname=None, env_var='BORG_LOGGING_CONF', lev
     # if we did not / not successfully load a logging configuration, fallback to this:
     logger = logging.getLogger('')
     handler = logging.StreamHandler(stream)
-    # other formatters will probably want this, but let's remove clutter on stderr
-    # example:
-    # handler.setFormatter(logging.Formatter('%(name)s: %(message)s'))
+    if is_serve:
+        fmt = '$LOG %(levelname)s Remote: %(message)s'
+    else:
+        fmt = '%(message)s'
+    handler.setFormatter(logging.Formatter(fmt))
     logger.addHandler(handler)
     logger.setLevel(level.upper())
     configured = True
diff --git a/borg/remote.py b/borg/remote.py
index f724b80d7..1fcd97c50 100644
--- a/borg/remote.py
+++ b/borg/remote.py
@@ -1,5 +1,6 @@
 import errno
 import fcntl
+import logging
 import os
 import select
 import shlex
@@ -10,7 +11,7 @@ import traceback
 
 from . import __version__
 
-from .helpers import Error, IntegrityError
+from .helpers import Error, IntegrityError, sysinfo
 from .repository import Repository
 
 import msgpack
@@ -62,12 +63,16 @@ class RepositoryServer:  # pragma: no cover
     def serve(self):
         stdin_fd = sys.stdin.fileno()
         stdout_fd = sys.stdout.fileno()
+        stderr_fd = sys.stdout.fileno()
         # Make stdin non-blocking
         fl = fcntl.fcntl(stdin_fd, fcntl.F_GETFL)
         fcntl.fcntl(stdin_fd, fcntl.F_SETFL, fl | os.O_NONBLOCK)
         # Make stdout blocking
         fl = fcntl.fcntl(stdout_fd, fcntl.F_GETFL)
         fcntl.fcntl(stdout_fd, fcntl.F_SETFL, fl & ~os.O_NONBLOCK)
+        # Make stderr blocking
+        fl = fcntl.fcntl(stderr_fd, fcntl.F_GETFL)
+        fcntl.fcntl(stderr_fd, fcntl.F_SETFL, fl & ~os.O_NONBLOCK)
         unpacker = msgpack.Unpacker(use_list=False)
         while True:
             r, w, es = select.select([stdin_fd], [], [], 10)
@@ -90,7 +95,9 @@ class RepositoryServer:  # pragma: no cover
                             f = getattr(self.repository, method)
                         res = f(*args)
                     except BaseException as e:
-                        exc = "Remote Traceback by Borg %s%s%s" % (__version__, os.linesep, traceback.format_exc())
+                        logging.exception('Borg %s: exception in RPC call:', __version__)
+                        logging.error(sysinfo())
+                        exc = "Remote Exception (see remote log for the traceback)"
                         os.write(stdout_fd, msgpack.packb((1, msgid, e.__class__.__name__, exc)))
                     else:
                         os.write(stdout_fd, msgpack.packb((1, msgid, None, res)))
@@ -117,15 +124,12 @@ class RepositoryServer:  # pragma: no cover
 
 class RemoteRepository:
     extra_test_args = []
-    remote_path = 'borg'
-    # default umask, overriden by --umask, defaults to read/write only for owner
-    umask = 0o077
 
     class RPCError(Exception):
         def __init__(self, name):
             self.name = name
 
-    def __init__(self, location, create=False, lock_wait=None, lock=True):
+    def __init__(self, location, create=False, lock_wait=None, lock=True, args=None):
         self.location = location
         self.preload_ids = []
         self.msgid = 0
@@ -135,21 +139,19 @@ class RemoteRepository:
         self.responses = {}
         self.unpacker = msgpack.Unpacker(use_list=False)
         self.p = None
-        # XXX: ideally, the testsuite would subclass Repository and
-        # override ssh_cmd() instead of this crude hack, although
-        # __testsuite__ is not a valid domain name so this is pretty
-        # safe.
-        if location.host == '__testsuite__':
-            args = [sys.executable, '-m', 'borg.archiver', 'serve' ] + self.extra_test_args
-        else:  # pragma: no cover
-            args = self.ssh_cmd(location)
-        self.p = Popen(args, bufsize=0, stdin=PIPE, stdout=PIPE)
+        testing = location.host == '__testsuite__'
+        borg_cmd = self.borg_cmd(args, testing)
+        if not testing:
+            borg_cmd = self.ssh_cmd(location) + borg_cmd
+        self.p = Popen(borg_cmd, bufsize=0, stdin=PIPE, stdout=PIPE, stderr=PIPE)
         self.stdin_fd = self.p.stdin.fileno()
         self.stdout_fd = self.p.stdout.fileno()
+        self.stderr_fd = self.p.stderr.fileno()
         fcntl.fcntl(self.stdin_fd, fcntl.F_SETFL, fcntl.fcntl(self.stdin_fd, fcntl.F_GETFL) | os.O_NONBLOCK)
         fcntl.fcntl(self.stdout_fd, fcntl.F_SETFL, fcntl.fcntl(self.stdout_fd, fcntl.F_GETFL) | os.O_NONBLOCK)
-        self.r_fds = [self.stdout_fd]
-        self.x_fds = [self.stdin_fd, self.stdout_fd]
+        fcntl.fcntl(self.stderr_fd, fcntl.F_SETFL, fcntl.fcntl(self.stderr_fd, fcntl.F_GETFL) | os.O_NONBLOCK)
+        self.r_fds = [self.stdout_fd, self.stderr_fd]
+        self.x_fds = [self.stdin_fd, self.stdout_fd, self.stderr_fd]
 
         try:
             version = self.call('negotiate', RPC_PROTOCOL_VERSION)
@@ -165,10 +167,28 @@ class RemoteRepository:
     def __repr__(self):
         return '<%s %s>' % (self.__class__.__name__, self.location.canonical_path())
 
-    def umask_flag(self):
-        return ['--umask', '%03o' % self.umask]
+    def borg_cmd(self, args, testing):
+        """return a borg serve command line"""
+        # give some args/options to "borg serve" process as they were given to us
+        opts = []
+        if args is not None:
+            opts.append('--umask=%03o' % args.umask)
+            root_logger = logging.getLogger()
+            if root_logger.isEnabledFor(logging.DEBUG):
+                opts.append('--debug')
+            elif root_logger.isEnabledFor(logging.INFO):
+                opts.append('--info')
+            elif root_logger.isEnabledFor(logging.WARNING):
+                pass  # warning is default
+            else:
+                raise ValueError('log level missing, fix this code')
+        if testing:
+            return [sys.executable, '-m', 'borg.archiver', 'serve' ] + opts + self.extra_test_args
+        else:  # pragma: no cover
+            return [args.remote_path, 'serve'] + opts
 
     def ssh_cmd(self, location):
+        """return a ssh command line that can be prefixed to a borg command line"""
         args = shlex.split(os.environ.get('BORG_RSH', 'ssh'))
         if location.port:
             args += ['-p', str(location.port)]
@@ -176,8 +196,6 @@ class RemoteRepository:
             args.append('%s@%s' % (location.user, location.host))
         else:
             args.append('%s' % location.host)
-        # use local umask also for the remote process
-        args += [self.remote_path, 'serve'] + self.umask_flag()
         return args
 
     def call(self, cmd, *args, **kw):
@@ -228,19 +246,32 @@ class RemoteRepository:
             r, w, x = select.select(self.r_fds, w_fds, self.x_fds, 1)
             if x:
                 raise Exception('FD exception occurred')
-            if r:
-                data = os.read(self.stdout_fd, BUFSIZE)
-                if not data:
-                    raise ConnectionClosed()
-                self.unpacker.feed(data)
-                for unpacked in self.unpacker:
-                    if not (isinstance(unpacked, tuple) and len(unpacked) == 4):
-                        raise Exception("Unexpected RPC data format.")
-                    type, msgid, error, res = unpacked
-                    if msgid in self.ignore_responses:
-                        self.ignore_responses.remove(msgid)
-                    else:
-                        self.responses[msgid] = error, res
+            for fd in r:
+                if fd is self.stdout_fd:
+                    data = os.read(fd, BUFSIZE)
+                    if not data:
+                        raise ConnectionClosed()
+                    self.unpacker.feed(data)
+                    for unpacked in self.unpacker:
+                        if not (isinstance(unpacked, tuple) and len(unpacked) == 4):
+                            raise Exception("Unexpected RPC data format.")
+                        type, msgid, error, res = unpacked
+                        if msgid in self.ignore_responses:
+                            self.ignore_responses.remove(msgid)
+                        else:
+                            self.responses[msgid] = error, res
+                elif fd is self.stderr_fd:
+                    data = os.read(fd, 32768)
+                    if not data:
+                        raise ConnectionClosed()
+                    data = data.decode('utf-8')
+                    for line in data.splitlines(True):  # keepends=True for py3.3+
+                        if line.startswith('$LOG '):
+                            _, level, msg = line.split(' ', 2)
+                            level = getattr(logging, level, logging.CRITICAL)  # str -> int
+                            logging.log(level, msg.rstrip())
+                        else:
+                            sys.stderr.write("Remote: " + line)
             if w:
                 while not self.to_send and (calls or self.preload_ids) and len(waiting_for) < 100:
                     if calls:
diff --git a/borg/testsuite/key.py b/borg/testsuite/key.py
index 2f234dd8a..b2011d8f5 100644
--- a/borg/testsuite/key.py
+++ b/borg/testsuite/key.py
@@ -13,7 +13,7 @@ from . import BaseTestCase
 class KeyTestCase(BaseTestCase):
 
     class MockArgs:
-        repository = Location(tempfile.mkstemp()[1])
+        location = Location(tempfile.mkstemp()[1])
 
     keyfile2_key_file = """
         BORG_KEY 0000000000000000000000000000000000000000000000000000000000000000
diff --git a/borg/testsuite/repository.py b/borg/testsuite/repository.py
index 4094df407..7027cb59a 100644
--- a/borg/testsuite/repository.py
+++ b/borg/testsuite/repository.py
@@ -1,5 +1,6 @@
 import os
 import shutil
+import sys
 import tempfile
 
 from mock import patch
@@ -326,13 +327,24 @@ class RemoteRepositoryTestCase(RepositoryTestCase):
         self.assert_raises(InvalidRPCMethod, lambda: self.repository.call('__init__', None))
 
     def test_ssh_cmd(self):
-        assert self.repository.umask is not None
-        assert self.repository.ssh_cmd(Location('example.com:foo')) == ['ssh', 'example.com', 'borg', 'serve'] + self.repository.umask_flag()
-        assert self.repository.ssh_cmd(Location('ssh://example.com/foo')) == ['ssh', 'example.com', 'borg', 'serve'] + self.repository.umask_flag()
-        assert self.repository.ssh_cmd(Location('ssh://user@example.com/foo')) == ['ssh', 'user@example.com', 'borg', 'serve'] + self.repository.umask_flag()
-        assert self.repository.ssh_cmd(Location('ssh://user@example.com:1234/foo')) == ['ssh', '-p', '1234', 'user@example.com', 'borg', 'serve'] + self.repository.umask_flag()
+        assert self.repository.ssh_cmd(Location('example.com:foo')) == ['ssh', 'example.com']
+        assert self.repository.ssh_cmd(Location('ssh://example.com/foo')) == ['ssh', 'example.com']
+        assert self.repository.ssh_cmd(Location('ssh://user@example.com/foo')) == ['ssh', 'user@example.com']
+        assert self.repository.ssh_cmd(Location('ssh://user@example.com:1234/foo')) == ['ssh', '-p', '1234', 'user@example.com']
         os.environ['BORG_RSH'] = 'ssh --foo'
-        assert self.repository.ssh_cmd(Location('example.com:foo')) == ['ssh', '--foo', 'example.com', 'borg', 'serve'] + self.repository.umask_flag()
+        assert self.repository.ssh_cmd(Location('example.com:foo')) == ['ssh', '--foo', 'example.com']
+
+    def test_borg_cmd(self):
+        class MockArgs:
+            remote_path = 'borg'
+            umask = 0o077
+
+        assert self.repository.borg_cmd(None, testing=True) == [sys.executable, '-m', 'borg.archiver', 'serve' ]
+        args = MockArgs()
+        # note: test logger is on info log level, so --info gets added automagically
+        assert self.repository.borg_cmd(args, testing=False) == ['borg', 'serve', '--umask=077', '--info']
+        args.remote_path = 'borg-0.28.2'
+        assert self.repository.borg_cmd(args, testing=False) == ['borg-0.28.2', 'serve', '--umask=077', '--info']
 
 
 class RemoteRepositoryCheckTestCase(RepositoryCheckTestCase):
diff --git a/borg/testsuite/upgrader.py b/borg/testsuite/upgrader.py
index 3d0459126..9a1f823f9 100644
--- a/borg/testsuite/upgrader.py
+++ b/borg/testsuite/upgrader.py
@@ -12,7 +12,7 @@ except ImportError:
 from ..upgrader import AtticRepositoryUpgrader, AtticKeyfileKey
 from ..helpers import get_keys_dir
 from ..key import KeyfileKey
-from ..remote import RemoteRepository
+from ..archiver import UMASK_DEFAULT
 from ..repository import Repository
 
 
@@ -169,7 +169,7 @@ def test_convert_all(tmpdir, attic_repo, attic_key_file, inplace):
     orig_inode = first_inode(attic_repo.path)
     repo = AtticRepositoryUpgrader(str(tmpdir), create=False)
     # replicate command dispatch, partly
-    os.umask(RemoteRepository.umask)
+    os.umask(UMASK_DEFAULT)
     backup = repo.upgrade(dryrun=False, inplace=inplace)
     if inplace:
         assert backup is None
@@ -179,7 +179,7 @@ def test_convert_all(tmpdir, attic_repo, attic_key_file, inplace):
         assert first_inode(repo.path) != first_inode(backup)
         # i have seen cases where the copied tree has world-readable
         # permissions, which is wrong
-        assert stat_segment(backup).st_mode & 0o007 == 0
+        assert stat_segment(backup).st_mode & UMASK_DEFAULT == 0
 
     assert key_valid(attic_key_file.path)
     assert repo_valid(tmpdir)