diff --git a/cli/lmi/shell/LMIConnection.py b/cli/lmi/shell/LMIConnection.py
index 301fa52..7c693c7 100644
--- a/cli/lmi/shell/LMIConnection.py
+++ b/cli/lmi/shell/LMIConnection.py
@@ -17,6 +17,7 @@ import os
 import sys
 import atexit
 import pywbem
+import logging
 import readline
 import urlparse
 
@@ -57,8 +58,8 @@ def __lmi_raw_input(prompt, use_echo=True):
         get_input = raw_input
         stream = sys.stdout
     if not sys.stderr.isatty() and not sys.stdout.isatty():
-        LOG.warn('both stdout and stderr are detached from terminal,'
-            ' using stdout for prompt')
+        logging.getLogger("").warn(
+            'Both stdout and stderr are detached from terminal, using stdout for prompt')
     if not use_echo:
         os.system("stty -echo")
     try:
@@ -126,6 +127,7 @@ def connect(uri, username="", password="", **kwargs):
     if kwargs:
         raise TypeError("connect() got an unexpected keyword arguments: %s" % ", ".join(kwargs.keys()))
 
+    logger = logging.getLogger("")
     connection = None
     netloc = urlparse.urlparse(uri).netloc
     destination = netloc if netloc else uri
@@ -135,8 +137,11 @@ def connect(uri, username="", password="", **kwargs):
         connection = LMIConnection(uri, None, None, interactive=interactive,
             use_cache=use_cache, conn_type=LMIBaseClient.CONN_TYPE_PEGASUS_UDS,
             verify_server_cert=verify_server_cert)
-        if not connection.verify_credentials():
+        (rval, _, errorstr) = connection.verify_credentials()
+        if not rval:
             connection = None
+        else:
+            logger.info("Connected via Unix-socket")
     if connection is None:
         if interactive and not key_file and not cert_file:
             try:
@@ -150,8 +155,12 @@ def connect(uri, username="", password="", **kwargs):
         connection = LMIConnection(uri, username, password, interactive=interactive,
             use_cache=use_cache, conn_type=LMIBaseClient.CONN_TYPE_WBEM,
             key_file=key_file, cert_file=cert_file, verify_server_cert=verify_server_cert)
-        if not connection.verify_credentials():
+        (rval, _, errorstr) = connection.verify_credentials()
+        if not rval:
+            logger.error("Error connecting to %s, %s", uri, errorstr)
             return None
+        else:
+            logger.info("Connected to %s", uri)
     return connection
 
 class LMIConnection(object):
@@ -282,8 +291,13 @@ class LMIConnection(object):
         ``CIM_ERR_NOT_FOUND`` set. Otherwise, the should receive
         :py:exc:`pywbem.AuthError`.
 
-        :returns: True if provided credentials are OK; False otherwise
+        :returns: :py:class:`LMIReturnValue` object with rval set to True, if
+            the user was properly authenticated; False otherwise. In case of any
+            error, rval is set to False and errorstr contains appropriate error
+            string.
+        :rtype: :py:class:`LMIReturnValue`
         """
+        errorstr = ""
         try:
             use_exceptions = lmi_get_use_exceptions()
             lmi_set_use_exceptions(True)
@@ -295,13 +309,16 @@ class LMIConnection(object):
                 lmi_set_use_exceptions(use_exceptions)
         except pywbem.cim_operations.CIMError, e:
             if e.args[0] == pywbem.cim_constants.CIM_ERR_NOT_FOUND:
-                return True
+                return LMIReturnValue(rval=True)
             lmi_raise_or_dump_exception(e)
+            errorstr = e.args[1]
         except pywbem.cim_http.AuthError, e:
             lmi_raise_or_dump_exception(e)
+            errorstr = e.args[0]
         except OpenSSL.SSL.Error, e:
             lmi_raise_or_dump_exception(e)
-        return False
+            errorstr = e.args[0][0][2]
+        return LMIReturnValue(rval=False, errorstr=errorstr)
 
     def subscribe_indication(self, **kwargs):
         """
diff --git a/cli/lmishell b/cli/lmishell
index e493af5..aaa8f7b 100755
--- a/cli/lmishell
+++ b/cli/lmishell
@@ -22,24 +22,23 @@ from lmi.shell import LMIShellOptions
 
 if __name__ == "__main__":
     options = LMIShellOptions(sys.argv)
+    logging.basicConfig(format='%(levelname)s: %(message)s')
+    logger = logging.getLogger("")
     if options.log == LMIShellOptions._LOG_MORE_VERBOSE:
         # Print out all the log messages to stderr stream
-        logger = logging.getLogger("")
         logger.setLevel(logging.DEBUG)
-        logger.addHandler(logging.StreamHandler(sys.stderr))
     elif options.log == LMIShellOptions._LOG_VERBOSE:
         # Print out only a set of log messages to stderr stream
-        logger = logging.getLogger("")
         logger.setLevel(logging.INFO)
-        logger.addHandler(logging.StreamHandler(sys.stderr))
     elif options.log == LMIShellOptions._LOG_QUIET:
         # Quiet flag seen, drop all the log messages
-        logging.getLogger("").addHandler(logging.NullHandler())
+        handlers = logger.handlers
+        for handler in handlers:
+            logger.removeHandler(handler)
+        logger.addHandler(logging.NullHandler())
     else:
         # By default, print error messages to stderr stream
-        logger = logging.getLogger("")
         logger.setLevel(logging.ERROR)
-        logger.addHandler(logging.StreamHandler(sys.stderr))
 
     console = LMIConsole()
     console.set_verify_server_certificate(options.verify_server_cert)