diff --git a/diskimage_builder/elements/__init__.py b/diskimage_builder/elements/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/diskimage_builder/elements/cache-url/tests/test_cache_url.py b/diskimage_builder/elements/cache-url/tests/test_cache_url.py
index 8f389e06..e3ac0522 100644
--- a/diskimage_builder/elements/cache-url/tests/test_cache_url.py
+++ b/diskimage_builder/elements/cache-url/tests/test_cache_url.py
@@ -27,15 +27,15 @@ class TestCacheUrl(base.ScriptTestBase):
         source = 'http://fake/url'
         # Write fake data to the target file and return success
         self._stub_script('curl', 'echo "test" > ${3:7:100}\necho 200')
-        self._run_command(['elements/cache-url/bin/cache-url',
-                           source,
-                           target])
+        self._run_command(
+            ['diskimage_builder/elements/cache-url/bin/cache-url',
+             source, target])
         self.assertTrue(os.path.exists(target))
         modification_time = os.path.getmtime(target)
         # Make sure that the timestamp would change if the file does
         time.sleep(1)
         self._stub_script('curl', 'echo "304"')
-        self._run_command(['elements/cache-url/bin/cache-url',
-                           source,
-                           target])
+        self._run_command(
+            ['diskimage_builder/elements/cache-url/bin/cache-url',
+             source, target])
         self.assertEqual(modification_time, os.path.getmtime(target))
diff --git a/diskimage_builder/elements/svc-map/__init__.py b/diskimage_builder/elements/svc-map/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/diskimage_builder/lib/common-functions b/diskimage_builder/lib/common-functions
index 48b90897..09b81795 100644
--- a/diskimage_builder/lib/common-functions
+++ b/diskimage_builder/lib/common-functions
@@ -111,11 +111,15 @@ function generate_hooks () {
 
         for dir in $(find $element_dir \
                           -follow -mindepth 1 -maxdepth 1 \
-                          -type d -not -name tests); do
+                          -type d \
+                          -not -name tests \
+                          -not -name __pycache__); do
             copy_hooks_not_overwrite $dir
         done
         for file in $(find $element_dir \
-                           -follow -maxdepth 1 -type f); do
+                           -follow -maxdepth 1 \
+                           -type f \
+                           -not -name '*.pyc'); do
             cp -t $TMP_HOOKS_PATH -a $file
         done
     done