Here is the installed TeX & Metafont hierarchy (as of 4sep94) that
we have been working on.  Please send comments to mackay@cs.washington.edu,
unixtex@u.washington.edu, and kb@cs.umb.edu.
(Especially if you try to actually install TeX like this!)

First, pick a root directory for the library files:
TEXMF = /usr/local/lib/texmf

(Or, in make variable terms: $(datadir)/texmf.)

All the files are installed relative to $TEXMF.  Top-level directories:
bibtex		-- bib/*.bib, bst/*.bst
doc		-- bibtex/, fontname/, eplain/, ...
fonts 		-- see below
tex		-- see below
mf		-- utility MF sources
                   ({plain, expr, null, io, slant, modes, ...}.mf)
ini		-- .base, .fmt, .pool
dvips		-- only if you have a PostScript printer, naturally

In general, where possible, the same setup as ctan is clearly a win.

Under dvips, have the .pro/.ps/psfonts.map files.

Under tex, at least:
plain	({plain, manmac, null, plain, story, testfont, webmac}.tex,
	 perhaps also texinfo.tex, eplain.tex, other single-file sources)
latex	(with subdirectories base/ for M&S's files,
	 misc/ for one-file styles, and other distributions by directory)
tugboat	(tugboat.cmn, tugboat.sty, etc.)
mft	(*.mft)

Under fonts:
<source>/<typeface>/
  for <source> in public, adobe, ams, bitstream, urw, ...
  for public/<typeface> in cm, concrete, punk, ...
  for ams/<typeface> in euler, symbols, ...
  for adobe/<typeface> in times, palatino, avantgar, ...
  See the *.map files in fontname 2.0 for canonical directory names.

Under .../<source>/<typeface>/
src/*.mf
tfm/*.tfm
vf/*.vf
afm/*.afm
pk/$MAKETEX_MODE (including pseudo-modes for gsrenderfont, ps2pk, gsftopk)
type1/*.{pfa,pfb,gsf}
truetype/*.ttf

See the TeX directory structure node in the manual for an additional
complication with MAKETEX_MODE.

For example:
texmf/fonts/public/cm/pk/cx/cmr10.300pk
texmf/fonts/public/sauter/src/b-cmbx.mf
texmf/fonts/adobe/utopia/type1/putr.pfa


For default path values, see texmf.cnf[.in].