diff --git a/collects/racket/contract/private/blame.rkt b/collects/racket/contract/private/blame.rkt
index cc45546817..d05f5e59eb 100644
--- a/collects/racket/contract/private/blame.rkt
+++ b/collects/racket/contract/private/blame.rkt
@@ -1,6 +1,6 @@
 #lang racket/base
 
-(require syntax/srcloc racket/pretty)
+(require syntax/srcloc racket/pretty setup/path-to-relative)
 
 (provide blame?
          make-blame
@@ -63,8 +63,8 @@
     b)))
 
 (define (default-blame-format b x custom-message)
-  (let* ([source-message (regexp-replace #rx": *$" (source-location->prefix (blame-source b)) "")]
-         [positive-message (show/display (blame-positive b))]
+  (let* ([source-message (source-location->string (blame-source b))]
+         [positive-message (show/display (convert-blame-party (blame-positive b)))]
          
          [contract-message (format "  contract: ~a" (show/write (blame-contract b)))]
          [contract-message+at (if (regexp-match #rx"\n$" contract-message)
@@ -98,7 +98,7 @@
                     "\n"))
         contract-message+at)]
       [else
-       (define negative-message (show/display (blame-negative b)))
+       (define negative-message (show/display (convert-blame-party (blame-negative b))))
        (define start-of-message
          (if (blame-value b)
              (format "~a: contract violation," (blame-value b))
@@ -141,6 +141,11 @@
     (pretty-write v port)
     (get-output-string port)))
 
+(define (convert-blame-party x)
+  (cond
+    [(path? x) (path->relative-string/library x)]
+    [else x]))
+
 (define show/display (show pretty-format/display))
 (define show/write (show pretty-format/write))
 
diff --git a/collects/tests/racket/contract-test.rktl b/collects/tests/racket/contract-test.rktl
index 6a3689c306..cad3bd360f 100644
--- a/collects/tests/racket/contract-test.rktl
+++ b/collects/tests/racket/contract-test.rktl
@@ -2933,6 +2933,14 @@
    (λ (x) 
      (and (exn? x)
           (regexp-match (regexp-quote "|x y|: 123456789") (exn-message x)))))
+
+  ;; test to make sure the collects directories are appropriately prefixed
+  (contract-error-test
+    #'(contract symbol? "not a symbol" 'pos 'neg 'not-a-symbol #'here)
+    (lambda (x)
+      (and (exn? x)
+        (regexp-match? #px"<collects>"
+          (exn-message x)))))
    
   (test/neg-blame
    '->i-protect-shared-state
@@ -11447,7 +11455,7 @@ so that propagation occurs.
        (eval '(g 12)))
    (λ (x)
      (and (exn? x)
-          (regexp-match #rx"^g.*contract from 'pce9-bug" (exn-message x)))))
+          (regexp-match #rx"^g.*contract from pce9-bug" (exn-message x)))))
   
   (contract-error-test
    #'(begin
@@ -11460,7 +11468,7 @@ so that propagation occurs.
        (eval '(g 'a)))
    (λ (x)
      (and (exn? x)
-          (regexp-match #rx"^g.*contract from 'pce10-bug" (exn-message x)))))
+          (regexp-match #rx"^g.*contract from pce10-bug" (exn-message x)))))
    
   (contract-eval
    `(,test