diff --git a/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/PollWebGuiAvailableTaskTest.java b/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/PollWebGuiAvailableTaskTest.java
index 4fd42255..b858d273 100644
--- a/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/PollWebGuiAvailableTaskTest.java
+++ b/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/PollWebGuiAvailableTaskTest.java
@@ -23,7 +23,6 @@ public class PollWebGuiAvailableTaskTest extends AndroidTestCase {
         super.setUp();
 
         mConfig = new ConfigXml(new MockContext(getContext()));
-        mConfig.updateIfNeeded();
     }
 
     @Override
diff --git a/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/RestApiTest.java b/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/RestApiTest.java
index f9dd0a4f..2fba8936 100644
--- a/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/RestApiTest.java
+++ b/src/androidTest/java/com/nutomic/syncthingandroid/test/syncthing/RestApiTest.java
@@ -32,8 +32,7 @@ public class RestApiTest extends AndroidTestCase {
                 getContext().getApplicationInfo().dataDir + "/" + SyncthingService.BINARY_NAME);
 
         mConfig = new ConfigXml(new MockContext(getContext()));
-        mConfig.createCameraFolder();
-        mConfig.updateIfNeeded();
+        mConfig.changeDefaultFolder();
 
         final CountDownLatch latch = new CountDownLatch(2);
         new PollWebGuiAvailableTask() {
diff --git a/src/androidTest/java/com/nutomic/syncthingandroid/test/util/ConfigXmlTest.java b/src/androidTest/java/com/nutomic/syncthingandroid/test/util/ConfigXmlTest.java
index 7262e6cc..997f5b92 100644
--- a/src/androidTest/java/com/nutomic/syncthingandroid/test/util/ConfigXmlTest.java
+++ b/src/androidTest/java/com/nutomic/syncthingandroid/test/util/ConfigXmlTest.java
@@ -4,9 +4,13 @@ import android.test.AndroidTestCase;
 import android.test.suitebuilder.annotation.MediumTest;
 import android.test.suitebuilder.annotation.SmallTest;
 
+import com.nutomic.syncthingandroid.syncthing.SyncthingService;
 import com.nutomic.syncthingandroid.test.MockContext;
 import com.nutomic.syncthingandroid.util.ConfigXml;
 
+import java.io.File;
+import java.io.IOException;
+
 public class ConfigXmlTest extends AndroidTestCase {
 
     private MockContext mContext;
@@ -44,22 +48,9 @@ public class ConfigXmlTest extends AndroidTestCase {
     public void testCreateCameraFolder() {
         long oldTime = ConfigXml.getConfigFile(mContext).lastModified();
         long oldSize = ConfigXml.getConfigFile(mContext).length();
-        mConfig.createCameraFolder();
+        mConfig.changeDefaultFolder();
         assertNotSame(oldTime, ConfigXml.getConfigFile(mContext).lastModified());
         assertNotSame(oldSize, ConfigXml.getConfigFile(mContext).lastModified());
     }
 
-    /**
-     * Same as {@link #testCreateCameraFolder()}.
-     */
-    @MediumTest
-    public void testUpdateIfNeeded() {
-        long oldTime = ConfigXml.getConfigFile(mContext).lastModified();
-        long oldSize = ConfigXml.getConfigFile(mContext).length();
-        mConfig.updateIfNeeded();
-        assertNotSame(oldTime, ConfigXml.getConfigFile(mContext).lastModified());
-        assertNotSame(oldSize, ConfigXml.getConfigFile(mContext).lastModified());
-        assertNotNull(mConfig.getApiKey());
-    }
-
 }
diff --git a/src/main/java/com/nutomic/syncthingandroid/syncthing/SyncthingService.java b/src/main/java/com/nutomic/syncthingandroid/syncthing/SyncthingService.java
index b4791869..2285ae25 100644
--- a/src/main/java/com/nutomic/syncthingandroid/syncthing/SyncthingService.java
+++ b/src/main/java/com/nutomic/syncthingandroid/syncthing/SyncthingService.java
@@ -77,8 +77,6 @@ public class SyncthingService extends Service {
 
     private LinkedList<FolderObserver> mObservers = new LinkedList<>();
 
-    private SyncthingRunnable mSyncthingRunnable;
-
     private final SyncthingServiceBinder mBinder = new SyncthingServiceBinder(this);
 
     /**
@@ -182,7 +180,6 @@ public class SyncthingService extends Service {
 
             Log.i(TAG, "Starting syncthing according to current state and preferences");
             mConfig = new ConfigXml(SyncthingService.this);
-            mConfig.updateIfNeeded();
             mCurrentState = State.STARTING;
             registerOnWebGuiAvailableListener(mApi);
             new PollWebGuiAvailableTaskImpl().execute(mConfig.getWebGuiUrl());
@@ -270,14 +267,8 @@ public class SyncthingService extends Service {
         @Override
         protected Pair<String, String> doInBackground(Void... voids) {
             moveConfigFiles();
-            mConfig = new ConfigXml(SyncthingService.this);
-            mConfig.updateIfNeeded();
 
-            if (isFirstStart()) {
-                Log.i(TAG, "App started for the first time. " +
-                        "Copying default config, keys will be generated automatically");
-                mConfig.createCameraFolder();
-            }
+            mConfig = new ConfigXml(SyncthingService.this);
 
             return new Pair<>(mConfig.getWebGuiUrl(), mConfig.getApiKey());
         }
diff --git a/src/main/java/com/nutomic/syncthingandroid/util/ConfigXml.java b/src/main/java/com/nutomic/syncthingandroid/util/ConfigXml.java
index 82ba0c6d..f798f1e1 100644
--- a/src/main/java/com/nutomic/syncthingandroid/util/ConfigXml.java
+++ b/src/main/java/com/nutomic/syncthingandroid/util/ConfigXml.java
@@ -4,7 +4,8 @@ import android.content.Context;
 import android.os.Environment;
 import android.util.Log;
 
-import com.nutomic.syncthingandroid.R;
+import com.nutomic.syncthingandroid.syncthing.SyncthingRunnable;
+import com.nutomic.syncthingandroid.syncthing.SyncthingService;
 
 import org.w3c.dom.Document;
 import org.w3c.dom.Element;
@@ -13,9 +14,7 @@ import org.w3c.dom.NodeList;
 import org.xml.sax.SAXException;
 
 import java.io.File;
-import java.io.FileOutputStream;
 import java.io.IOException;
-import java.io.InputStream;
 import java.util.Random;
 
 import javax.xml.parsers.DocumentBuilder;
@@ -47,15 +46,25 @@ public class ConfigXml {
 
     public ConfigXml(Context context) {
         mConfigFile = getConfigFile(context);
-        if (!mConfigFile.exists()) {
-            copyDefaultConfig(context);
+        boolean isFirstStart = !mConfigFile.exists();
+        if (isFirstStart) {
+            Log.i(TAG, "App started for the first time. Generating keys and config.");
+            new SyncthingRunnable(context, context.getApplicationInfo().dataDir + "/" +
+                    SyncthingService.BINARY_NAME + " -generate='" + context.getFilesDir() + "'")
+                    .run();
         }
+
         try {
             DocumentBuilder db = DocumentBuilderFactory.newInstance().newDocumentBuilder();
             mConfig = db.parse(mConfigFile);
         } catch (SAXException | ParserConfigurationException | IOException e) {
             throw new RuntimeException("Failed to open config file", e);
         }
+
+        if (isFirstStart) {
+            changeDefaultFolder();
+        }
+        updateIfNeeded();
     }
 
     public static File getConfigFile(Context context) {
@@ -79,7 +88,7 @@ public class ConfigXml {
      * Coming from 0.3.0 and earlier, the ignorePerms flag is set to true on every folder.
      */
     @SuppressWarnings("SdCardPath")
-    public void updateIfNeeded() {
+    private void updateIfNeeded() {
         Log.i(TAG, "Checking for needed config updates");
         boolean changed = false;
         Element options = (Element) mConfig.getDocumentElement()
@@ -191,17 +200,15 @@ public class ConfigXml {
     }
 
     /**
-     * Creates a folder for the default camera folder.
+     * Change default folder id to camera and path to camera folder path.
      */
-    public void createCameraFolder() {
-        Element cameraFolder = mConfig.createElement("folder");
-        cameraFolder.setAttribute("id", "camera");
-        cameraFolder.setAttribute("directory", Environment
+    public void changeDefaultFolder() {
+        Element folder = (Element) mConfig.getDocumentElement()
+                .getElementsByTagName("folder").item(0);
+        folder.setAttribute("id", "camera");
+        folder.setAttribute("path", Environment
                 .getExternalStoragePublicDirectory(Environment.DIRECTORY_DCIM).getAbsolutePath());
-        cameraFolder.setAttribute("ro", "true");
-        cameraFolder.setAttribute("ignorePerms", "true");
-        mConfig.getDocumentElement().appendChild(cameraFolder);
-
+        folder.setAttribute("ro", "true");
         saveChanges();
     }
 
@@ -221,31 +228,4 @@ public class ConfigXml {
         }
     }
 
-    /**
-     * Copies the default config file from res/raw/config_default.xml to (data folder)/config.xml.
-     */
-    private void copyDefaultConfig(Context context) {
-        InputStream in = null;
-        FileOutputStream out = null;
-        try {
-            in = context.getResources().openRawResource(R.raw.config_default);
-            out = new FileOutputStream(mConfigFile);
-            byte[] buff = new byte[1024];
-            int read;
-
-            while ((read = in.read(buff)) > 0) {
-                out.write(buff, 0, read);
-            }
-        } catch (IOException e) {
-            throw new RuntimeException("Failed to write config file", e);
-        } finally {
-            try {
-                in.close();
-                out.close();
-            } catch (IOException e) {
-                Log.w(TAG, "Failed to close stream while copying config", e);
-            }
-        }
-    }
-
 }
diff --git a/src/main/res/raw/config_default.xml b/src/main/res/raw/config_default.xml
deleted file mode 100644
index 03ab8196..00000000
--- a/src/main/res/raw/config_default.xml
+++ /dev/null
@@ -1,17 +0,0 @@
-<configuration version="2">
-    <gui enabled="true">
-        <address>127.0.0.1:8080</address>
-    </gui>
-    <options>
-        <listenAddress>0.0.0.0:22000</listenAddress>
-        <globalAnnounceServer>194.126.249.5:22026</globalAnnounceServer>
-        <globalAnnounceEnabled>true</globalAnnounceEnabled>
-        <localAnnounceEnabled>true</localAnnounceEnabled>
-        <parallelRequests>16</parallelRequests>
-        <maxSendKbps>0</maxSendKbps>
-        <reconnectionIntervalS>60</reconnectionIntervalS>
-        <maxChangeKbps>1000</maxChangeKbps>
-        <startBrowser>false</startBrowser>
-        <upnpEnabled>true</upnpEnabled>
-    </options>
-</configuration>