--- a/configure.in
+++ b/configure.in
@@ -21,7 +21,7 @@
 dnl along with Octave; see the file COPYING.  If not, write to the Free
 dnl Software Foundation, 675 Mass Ave, Cambridge, MA 02139, USA.
 dnl
-AC_REVISION($Revision: 1.30 $)dnl
+AC_REVISION($Revision: 1.31 $)dnl
 AC_PREREQ(1.8)dnl
 AC_INIT(src/octave.cc)
 AC_CONFIG_HEADER(config.h)
@@ -77,17 +77,33 @@
 dnl directory tree as the sources
 dnl
 AC_ENABLE(run-in-place, run_in_place=true, run_in_place=false)dnl
-if test -n "$prefix"
-  AC_DEFINE(OCTAVE_HOME, $prefix)dnl
-else
-  AC_DEFINE(OCTAVE_HOME, /usr/local)dnl
+OCTAVE_HOME=/usr/local
+if test -n "$prefix"; then
+  OCTAVE_HOME=$prefix
 fi
-if $run_in_place
+OCTAVE_LIB_DIR=
+OCTAVE_INFO_DIR=
+if $run_in_place; then
   AC_DEFINE(RUN_IN_PLACE, 1)dnl
-  AC_DEFINE(OCTAVE_HOME, $srcdir)dnl
-  AC_DEFINE(OCTAVE_LIB_DIR, $srcdir/scripts)dnl
-  AC_DEFINE(OCTAVE_INFO_DIR, $srcdir/doc)dnl
+  case "$srcdir" in
+    /*)
+      absolute_srcdir=$srcdir
+    ;;
+    *)
+      AC_WARN([making OCTAVE_HOME absolute -- may lose with automounter])
+      absolute_srcdir=`(cd $srcdir; pwd)`
+    ;;
+  esac
+  OCTAVE_HOME=$absolute_srcdir
+  OCTAVE_LIB_DIR=$absolute_srcdir/scripts
+  OCTAVE_INFO_DIR=$absolute_srcdir/doc
 fi
+AC_VERBOSE([setting OCTAVE_HOME to $OCTAVE_HOME])
+AC_VERBOSE([setting OCTAVE_LIB_DIR to $OCTAVE_LIB_DIR])
+AC_VERBOSE([setting OCTAVE_INFO_DIR to $OCTAVE_INFO_DIR])
+AC_SUBST(OCTAVE_HOME)dnl
+AC_SUBST(OCTAVE_LIB_DIR)dnl
+AC_SUBST(OCTAVE_INFO_DIR)dnl
 dnl
 DYNAMIC_LD_OBJ=
 DLD_DIR=