--- 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: 1.39 $)dnl
+AC_REVISION($Revision: 1.40 $)dnl
 AC_PREREQ(1.8)dnl
 AC_INIT(src/octave.cc)
 AC_CONFIG_HEADER(config.h)
@@ -73,16 +73,34 @@
 dnl
 AC_ENABLE(dld, use_dld=true, use_dld=false)dnl
 dnl
-dnl Makes Octave look for info and function files in the same
-dnl directory tree as the sources
+dnl some defaults
 dnl
-AC_ENABLE(run-in-place, run_in_place=true, run_in_place=false)dnl
-OCTAVE_HOME=/usr/local
-if test -n "$prefix"; then
-  OCTAVE_HOME=$prefix
-fi
-OCTAVE_LIB_DIR=
-OCTAVE_INFO_DIR=
+exec_prefix='$(prefix)'
+bindir='$(exec_prefix)/bin'
+datadir='$(prefix)/lib'
+libdir='$(exec_prefix)/lib'
+includedir='$(prefix)/include'
+mandir='$(prefix)/man/man1'
+infodir='$(prefix)/info'
+fcnfiledir='$(datadir)/octave/$(version)/m'
+localfcnfilepath='$(datadir)/octave/site-m'
+archlibdir='$(libdir)/octave/$(version)/$(target_host_type)/exec'
+octfiledir='$(archlibdir)/oct'
+localoctfilepath='$(datadir)/octave/$(target_host_type)/site-oct'
+fcnfilepath='.:$(localoctfilepath):$(localfcnfilepath):$(octfiledir):$(fcnfiledir)'
+dnl
+dnl Handle --enable-run-in-place.  This option makes Octave look for
+dnl info and function files in the same directory tree as the sources.
+dnl
+AC_ENABLE(run-in-place, [
+  run_in_place=true;
+  if test "$enableval" = "yes"; then
+    builddir="."
+  else
+    builddir=enableval
+  fi
+], run_in_place=false)dnl
+dnl
 if $run_in_place; then
   AC_DEFINE(RUN_IN_PLACE, 1)dnl
   case "$srcdir" in
@@ -90,20 +108,53 @@
       absolute_srcdir=$srcdir
     ;;
     *)
-      AC_WARN([making OCTAVE_HOME absolute -- may lose with automounter])
+      AC_WARN([making srcdir 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
+  case "$builddir" in
+    /*)
+      absolute_builddir=$builddir
+    ;;
+    *)
+      AC_WARN([making builddir absolute -- may lose with automounter])
+      absolute_builddir=`(cd $builddir; pwd)`
+    ;;
+  esac
+  absolute_builddir=$absolute_builddir
+  prefix=$absolute_srcdir
+  infodir=$absolute_srcdir/info
+  fcnfiledir=$absolute_srcdir/scripts
+  archlibdir=$absolute_builddir
+  fcnfilepath='.:$(fcnfiledir)'
 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
+AC_VERBOSE([setting prefix to $prefix])
+AC_VERBOSE([setting exec_prefix to $exec_prefix])
+AC_VERBOSE([setting bindir to $bindir])
+AC_VERBOSE([setting datadir to $datadir])
+AC_VERBOSE([setting libdir to $libdir])
+AC_VERBOSE([setting includedir to $includedir])
+AC_VERBOSE([setting mandir to $mandir])
+AC_VERBOSE([setting infodir to $infodir])
+AC_VERBOSE([setting fcnfiledir to $fcnfiledir])
+AC_VERBOSE([setting localfcnfilepath to $localfcnfilepath])
+AC_VERBOSE([setting archlibdir to $archlibdir])
+AC_VERBOSE([setting octfiledir to $octfiledir])
+AC_VERBOSE([setting localoctfilepath to $localoctfilepath])
+AC_VERBOSE([setting fcnfilepath to $fcnfilepath])
+AC_SUBST(exec_prefix)
+AC_SUBST(bindir)
+AC_SUBST(datadir)
+AC_SUBST(libdir)
+AC_SUBST(includedir)
+AC_SUBST(mandir)
+AC_SUBST(infodir)
+AC_SUBST(fcnfiledir)
+AC_SUBST(localfcnfilepath)
+AC_SUBST(archlibdir)
+AC_SUBST(octfiledir)
+AC_SUBST(localoctfilepath)
+AC_SUBST(fcnfilepath)
 dnl
 DYNAMIC_LD_OBJ=
 DLD_DIR=
@@ -412,7 +463,7 @@
 dnl
 AC_HAVE_FUNCS(setvbuf getcwd gethostname bzero rindex vfprintf vsprintf)dnl
 AC_HAVE_FUNCS(stricmp strnicmp strcasecmp strncasecmp strerror)dnl
-AC_HAVE_FUNCS(atexit on_exit mktemp)dnl
+AC_HAVE_FUNCS(atexit on_exit tempnam)dnl
 dnl
 dnl Check to see if we have IEEE math functions, and if so, which ones.
 dnl