diff --git a/collects/drscheme/private/module-language.ss b/collects/drscheme/private/module-language.ss
index 6026d41dc1..a69f2e62c5 100644
--- a/collects/drscheme/private/module-language.ss
+++ b/collects/drscheme/private/module-language.ss
@@ -171,7 +171,20 @@
            (compile-context-preservation-enabled (module-language-settings-full-trace? settings))
            
            (when (module-language-settings-compilation-on? settings)
+             
+             (let ([annotations (drscheme:language:simple-settings-annotations settings)])
+               (case annotations
+                 [(none)
+                  (use-compiled-file-paths
+                   (cons (build-path "compiled" "drscheme")
+                         (use-compiled-file-paths)))]
+                 [(debug)
+                  (use-compiled-file-paths
+                   (cons (build-path "compiled" "drscheme" "errortrace")
+                         (use-compiled-file-paths)))]))
+             
              (current-load/use-compiled (make-compilation-manager-load/use-compiled-handler))
+             
              (manager-skip-file-handler
               (λ (p)
                 ;; iterate over all of the collection paths; if we find that this path is
diff --git a/collects/tests/drscheme/module-lang-test.ss b/collects/tests/drscheme/module-lang-test.ss
index e2a034e6b4..300ef3cea7 100644
--- a/collects/tests/drscheme/module-lang-test.ss
+++ b/collects/tests/drscheme/module-lang-test.ss
@@ -3,6 +3,31 @@
 (require "module-lang-test-utils.ss")
 (provide run-test)
 
+(error #<<--
+need to add tests cases that check the value of the use-compiled-file handler:
+
+non-errortrace mode, saving compiled-files
+
+> (list (build-path "compiled" "drscheme") (build-path "compiled"))
+
+non-errortrace mode, not saving compiled files:
+
+  the default, eg (list (build-path "compiled"))
+
+> >> errortrace mode, saving compiled files:
+> >>
+> >>   (list (build-path "compiled" "drscheme" "errortrace")
+> >>         (build-path "compiled" "errortrace"))
+> >>
+> >> errortrace mode, not saving compiled files:
+> >>
+> >>   (list (build-path "compiled" "errortrace"))
+> >>
+> >> And the two lists should also include (list (build-path
+> >> "compiled")) at the end.
+--
+)
+
 ;; set up for tests that need external files
 (write-test-modules
  (module module-lang-test-tmp1 mzscheme