diff --git a/karma.conf.js b/karma.conf.js
index ccc4f2e193..43ad307a3c 100644
--- a/karma.conf.js
+++ b/karma.conf.js
@@ -99,7 +99,7 @@ module.exports = function(config) {
     logLevel: config.LOG_INFO,
 
     // enable / disable watching file and executing tests whenever any file changes
-    autoWatch: false,
+    //autoWatch: true,
 
     /*
      * start these browsers
@@ -136,7 +136,7 @@ module.exports = function(config) {
      * Continuous Integration mode
      * if true, Karma captures browsers, runs the tests and exits
      */
-    singleRun: true
+    //singleRun: true
   };
 
   if (process.env.TRAVIS){
diff --git a/package.json b/package.json
index 292e8ccb89..237bc43133 100644
--- a/package.json
+++ b/package.json
@@ -50,14 +50,14 @@
     "debug:build:prod": "node-nightly --inspect --debug-brk node_modules/webpack/bin/webpack.js  --config webpack.prod.config.ts",
     "docs": "typedoc --options typedoc.json ./src",
     "lint": "tslint \"src/**/*.ts\" || true",
-    "global": "npm install -g angular-cli nodemon npm-check-updates rimraf ts-node typedoc typescript webpack webpack-bundle-size-analyzer rollup marked node-gyp protractor",
-    "postglobal": "npm link protractor",
-    "protractor": "protractor",
+    "global": "npm install -g angular-cli nodemon npm-check-updates rimraf ts-node typedoc typescript webpack webpack-bundle-size-analyzer rollup marked node-gyp",
+    "protractor": "node node_modules/protractor/bin/protractor",
     "e2e": "npm run protractor",
-    "test": "karma start",
+    "test": "karma start --single-run",
+    "test:watch": "karma start --no-single-run --auto-watch",
     "coverage": "http-server -c-1 -o -p 9875 ./coverage",
-    "webdriver:start": "webdriver-manager start --seleniumPort 4444",
-    "webdriver:update": "webdriver-manager update --standalone"
+    "webdriver:start": "node node_modules/protractor/bin/webdriver-manager start --seleniumPort 4444",
+    "webdriver:update": "node node_modules/protractor/bin/webdriver-manager update --standalone"
   },
   "dependencies": {
     "@angular/common": "2.2.3",
@@ -140,6 +140,7 @@
     "karma-webpack": "1.8.0",
     "node-sass": "4.0.0",
     "nodemon": "1.11.0",
+    "protractor": "~4.0.14",
     "protractor-istanbul-plugin": "~2.0.0",
     "raw-loader": "0.5.1",
     "reflect-metadata": "0.1.8",
@@ -159,10 +160,10 @@
     "typedoc": "0.5.1",
     "typescript": "2.0.10",
     "v8-lazy-parse-webpack-plugin": "0.3.0",
-    "webpack": "2.1.0-beta.27",
+    "webpack": "2.2.0-rc.3",
     "webpack-bundle-analyzer": "1.4.1",
     "webpack-dev-middleware": "1.9.0",
-    "webpack-dev-server": "2.1.0-beta.11",
+    "webpack-dev-server": "2.2.0-rc.0",
     "webpack-merge": "1.1.1"
   }
 }
diff --git a/spec-bundle.js b/spec-bundle.js
index 45954f4088..36026d530f 100644
--- a/spec-bundle.js
+++ b/spec-bundle.js
@@ -47,7 +47,7 @@ testing.TestBed.initTestEnvironment(
  * any file that ends with spec.ts and get its path. By passing in true
  * we say do this recursively
  */
-var testContext = require.context('./src/tests', true, /\.spec\.ts/);
+var testContext = require.context('./src', true, /\.spec\.ts/);
 
 /*
  * get all the files, for each file, call the context function
diff --git a/src/tests/app.component.spec.ts b/src/app/app.component.spec.ts
similarity index 91%
rename from src/tests/app.component.spec.ts
rename to src/app/app.component.spec.ts
index d69b35850d..4f53b0ba93 100644
--- a/src/tests/app.component.spec.ts
+++ b/src/app/app.component.spec.ts
@@ -15,8 +15,8 @@ import { Store } from "@ngrx/store";
 
 
 // Load the implementations that should be tested
-import { AppComponent } from '../app/app.component';
-import { HeaderComponent } from '../app/header/header.component';
+import { AppComponent } from './app.component';
+import { HeaderComponent } from './header/header.component';
 
 import { CommonModule } from '@angular/common';
 
diff --git a/src/tests/.gitkeep b/src/tests/.gitkeep
deleted file mode 100644
index e69de29bb2..0000000000
diff --git a/webpack.config.ts b/webpack.config.ts
index 1d4b927e13..e6128264b1 100644
--- a/webpack.config.ts
+++ b/webpack.config.ts
@@ -67,6 +67,11 @@ export var commonConfig = {
       }
     ],
   },
+
+  performance: {
+    hints: false
+  },
+
   plugins: [
     // Use commonPlugins.
   ]
diff --git a/webpack.test.config.js b/webpack.test.config.js
index cd288ce894..4f3530e8de 100644
--- a/webpack.test.config.js
+++ b/webpack.test.config.js
@@ -166,6 +166,10 @@ module.exports = function (options) {
       ]
     },
 
+    performance: {
+      hints: false
+    },
+
     /**
      * Add additional plugins to the compiler.
      *