Index: Makefile.in.in
===================================================================
RCS file: /cvs/gnome/intltool/Makefile.in.in,v
retrieving revision 1.2
diff -u -r1.2 Makefile.in.in
--- Makefile.in.in	4 Nov 2004 05:23:48 -0000	1.2
+++ Makefile.in.in	4 Dec 2004 01:14:14 -0000
@@ -46,8 +46,8 @@
 XGETTEXT = @XGETTEXT@
 INTLTOOL_UPDATE = @INTLTOOL_UPDATE@
 INTLTOOL_EXTRACT = @INTLTOOL_EXTRACT@
-MSGMERGE = INTLTOOL_EXTRACT=$(INTLTOOL_EXTRACT) $(INTLTOOL_UPDATE) --gettext-package $(GETTEXT_PACKAGE) --dist
-GENPOT   = INTLTOOL_EXTRACT=$(INTLTOOL_EXTRACT) $(INTLTOOL_UPDATE) --gettext-package $(GETTEXT_PACKAGE) --pot
+MSGMERGE = INTLTOOL_EXTRACT=$(INTLTOOL_EXTRACT) srcdir=$(srcdir) $(INTLTOOL_UPDATE) --gettext-package $(GETTEXT_PACKAGE) --dist
+GENPOT   = INTLTOOL_EXTRACT=$(INTLTOOL_EXTRACT) srcdir=$(srcdir) $(INTLTOOL_UPDATE) --gettext-package $(GETTEXT_PACKAGE) --pot
 
 DEFS = @DEFS@
 CFLAGS = @CFLAGS@
Index: intltool-update.in.in
===================================================================
RCS file: /cvs/gnome/intltool/intltool-update.in.in,v
retrieving revision 1.114
diff -u -r1.114 intltool-update.in.in
--- intltool-update.in.in	5 Nov 2004 15:35:59 -0000	1.114
+++ intltool-update.in.in	4 Dec 2004 01:14:15 -0000
@@ -651,7 +651,7 @@
 	elsif (/\.($xml_support|$ini_support)$/ || /^\[/)
 	{
 	    s/^\[.*]\s*//;
-	    print OUTFILE "$_.h\n";
+	    print OUTFILE "../$_.h\n";
 	    push @temp_headers, "../$_.h";
 	    $gettext_code = &TextFile_DetermineEncoding ("../$_.h") if ($gettext_support_nonascii and not defined $forced_gettext_code);
 	} 
@@ -703,7 +703,7 @@
     unlink "$MODULE.pot";
     my @xgettext_argument=("$XGETTEXT",
 			   "--add-comments",
-			   "--directory\=\.\.",
+			   "--directory\=\.",
 			   "--output\=$MODULE\.pot",
 			   "--files-from\=\.\/POTFILES\.in\.temp");
     my $XGETTEXT_KEYWORDS = &FindPOTKeywords;
