--- a/src/Makefile.in
+++ b/src/Makefile.in
@@ -108,8 +108,8 @@
 SOURCES := acosh.c arith-ops.cc asinh.c atanh.c data.cc dirfns.cc \
 	dynamic-ld.cc erf.c erfc.c error.cc file-info.cc file-io.cc \
 	filemode.c fnmatch.c getopt.c getopt1.c gripes.cc help.cc \
-	input.cc lex.l load-save.cc mappers.cc mkdir.c \
-	oct-hist.cc oct-map.cc oct-obj.cc pager.cc parse.y \
+	input.cc lex.l load-save.cc mappers.cc mkdir.c oct-hist.cc \
+	oct-map.cc oct-obj.cc pager.cc parse.y pathsearch.cc \
 	pr-output.cc procstream.cc pt-base.cc pt-cmd.cc pt-const.cc \
 	pt-exp-base.cc pt-exp.cc pt-fcn.cc pt-fvc-base.cc pt-fvc.cc \
 	pt-mat.cc pt-misc.cc pt-mvr-base.cc pt-mvr.cc pt-plot.cc \

--- a/src/octave.cc
+++ b/src/octave.cc
@@ -170,8 +170,6 @@
   char *tmp = strrchr (raw_prog_name, '/');
   prog_name = tmp ? strsave (tmp+1) : strsave (raw_prog_name);
 
-  kpse_set_progname (name);
-
   struct passwd *entry = getpwuid (getuid ());
   if (entry)
     user_name = strsave (entry->pw_name);
@@ -191,28 +189,6 @@
   else
     home_directory = strsave ("I have no home!");
 
-  // This may seem odd, but doing it this way means that we don't have
-  // to modify the kpathsea library...
-
-  char *odb = getenv ("OCTAVE_DB_DIR");
-
-  if (odb)
-    oct_putenv ("TEXMF", odb);
-  else
-    {
-      char *oh = getenv ("OCTAVE_HOME");
-
-      if (oh)
-	{
-	  int len = strlen (oh) + 12;
-	  char *putenv_val = new char [len];
-	  sprintf (putenv_val, "%s/lib/octave", oh);
-	  oct_putenv ("TEXMF", putenv_val);
-	}
-      else  
-	oct_putenv ("TEXMF", OCTAVE_DATADIR "/octave");
-    }
-
   exec_path = default_exec_path ();
 
   load_path = default_path ();
@@ -374,6 +350,8 @@
 
   initialize_globals (argv[0]);
 
+  initialize_pathsearch (argv[0]);
+
   int optc;
   while ((optc = getopt_long (argc, argv, short_opts, long_opts, 0)) != EOF)
     {