diff --git a/racket/collects/compiler/embed.rkt b/racket/collects/compiler/embed.rkt
index 9c58d28b80..8ed985785f 100644
--- a/racket/collects/compiler/embed.rkt
+++ b/racket/collects/compiler/embed.rkt
@@ -1486,8 +1486,11 @@
                                            (mac-dest->executable dest mred?)
                                            mred?)
                     (when mred?
-                      ;; adjust relative path (since GRacket is off by one):
-                      (update-framework-path "@executable_path/../../../lib/"
+                      ;; adjust relative path (since GRacket is normally off by one):
+                      (define rel (find-relative-path (find-gui-bin-dir)
+                                                      (find-lib-dir)))
+                      (update-framework-path (format "@executable_path/../../../~a"
+                                                     (path->directory-path rel))
                                              (mac-dest->executable dest mred?)
                                              #t)))
                 ;; Check whether we need an absolute path to frameworks:
diff --git a/racket/collects/launcher/launcher.rkt b/racket/collects/launcher/launcher.rkt
index 162fc5b939..8bf48c802d 100644
--- a/racket/collects/launcher/launcher.rkt
+++ b/racket/collects/launcher/launcher.rkt
@@ -399,7 +399,14 @@
                                   (find-lib-dir)
                                   (let ([p (path-only dest)])
                                     (if (eq? 'macosx (cross-system-type))
-                                        (build-path p 'up)
+                                        (let* ([cdir (find-console-bin-dir)]
+                                               [gdir (find-gui-bin-dir)]
+                                               [rel (find-relative-path cdir gdir)])
+                                          (cond
+                                           [(relative-path? rel)
+                                            (build-path p rel)]
+                                           [(equal? cdir gdir) p]
+                                           [else rel]))
                                         p))))
                             (find-console-bin-dir))])
             (if (let ([a (assq 'relative? aux)])
diff --git a/racket/collects/racket/path.rkt b/racket/collects/racket/path.rkt
index 3210cc69d5..2a8f04ec4f 100644
--- a/racket/collects/racket/path.rkt
+++ b/racket/collects/racket/path.rkt
@@ -133,8 +133,10 @@
         (let loop ([dir (cdr dir)]
                    [file (cdr file)])
           (cond [(null? dir) (if (null? file) filename (apply build-path file))]
-                [(null? file) (apply build-path/convention-type 
-				     (path-convention-type filename)
+                [(null? file) (apply build-path/convention-type
+                                     (if (string? filename)
+                                         (system-path-convention-type)
+                                         (path-convention-type filename))
 				     (map (lambda (x) 'up) dir))]
                 [(equal? (car dir) (car file))
                  (loop (cdr dir) (cdr file))]
diff --git a/racket/src/configure b/racket/src/configure
index 86e48fb970..4056d18e26 100755
--- a/racket/src/configure
+++ b/racket/src/configure
@@ -639,13 +639,16 @@ CGC
 MMM_CAP_INSTALLED
 MMM_INSTALLED
 MMM
+GR_APP_CONFIG_PATH
 GUI_CONFIG_PATH
 CONFIG_PATH
+GR_APP_COLLECTS_PATH
 GUI_COLLECTS_PATH
 COLLECTS_PATH
 includepltdir
 etcpltdir
 sharepltdir
+libpltdir_rel
 libpltdir
 appsdir
 collectsdir
@@ -2872,7 +2875,9 @@ else
   case "$host_os" in
   darwin*)
     enable_quartz=yes
-    enable_origtree=yes
+    if test "${enable_origtree}" != "no" ; then
+      enable_origtree=yes
+    fi
     if test "${prefix}" != "NONE" ; then
       if test "${enable_macprefix}" != "yes" ; then
         echo "ERROR: --prefix not allowed for a Mac OS X build, unless either"
@@ -2952,6 +2957,7 @@ if test "${unixstyle}" = "no" ; then
   fi
   bindir='${prefix}/bin'
   libpltdir='${prefix}/lib'
+  libpltdir_rel='lib'
   sharepltdir='${prefix}/share'
   etcpltdir='${prefix}/etc'
   includepltdir='${prefix}/include'
@@ -2961,6 +2967,8 @@ if test "${unixstyle}" = "no" ; then
   appsdir='${prefix}/share/applications'
   COLLECTS_PATH="../collects"
   CONFIG_PATH="../etc"
+  GR_APP_COLLECTS_PATH="../../../../collects"
+  GR_APP_CONFIG_PATH="../../../../etc"
   INSTALL_ORIG_TREE=yes
 else
   if test "${prefix}" = "NONE" ; then
@@ -2968,12 +2976,20 @@ else
     prefix="${ac_default_prefix}"
   fi
   libpltdir="${libdir}/"'${PACKAGE}'
+  libpltdir_rel=""
+  if test "${libpltdir}" = '${exec_prefix}/lib/${PACKAGE}' ; then
+    if test "${bindir}" = '${exec_prefix}/bin' ; then
+      libpltdir_rel="lib/"'${PACKAGE}'
+    fi
+  fi
   sharepltdir="${datadir}/"'${PACKAGE}'
   etcpltdir="${sysconfdir}/"'${PACKAGE}'
   includepltdir="${includedir}/"'${PACKAGE}'
   MAKE_COPYTREE=copytree
   COLLECTS_PATH='${collectsdir}'
   CONFIG_PATH='${etcpltdir}'
+  GR_APP_COLLECTS_PATH="${COLLECTS_PATH}"
+  GR_APP_CONFIG_PATH="${CONFIG_PATH}"
   INSTALL_ORIG_TREE=no
 fi
 
@@ -4847,9 +4863,13 @@ fi
         FRAMEWORK_REL_INSTALL=no
         FRAMEWORK_PREFIX=''
       else
-        FRAMEWORK_INSTALL_DIR='${libdir}'
+        FRAMEWORK_INSTALL_DIR='${libpltdir}'
         FRAMEWORK_REL_INSTALL=yes
-        FRAMEWORK_PREFIX='$(FRAMEWORK_REL_PREFIX)'
+        if test "${libpltdir_rel}" = "" ; then
+          FRAMEWORK_PREFIX='$(FRAMEWORK_ABS_PREFIX)'
+        else
+          FRAMEWORK_PREFIX='$(FRAMEWORK_REL_PREFIX)'
+        fi
       fi
     else
       PREFLAGS="$PREFLAGS -DXONX "
@@ -6995,6 +7015,9 @@ LIBS="$LIBS $EXTRALIBS"
 
 
 
+
+
+
 
 
 
diff --git a/racket/src/gracket/Makefile.in b/racket/src/gracket/Makefile.in
index 7bdf0793b8..f8b97111ef 100644
--- a/racket/src/gracket/Makefile.in
+++ b/racket/src/gracket/Makefile.in
@@ -11,6 +11,7 @@ datarootdir = @datarootdir@
 bindir = @bindir@
 libdir = @libdir@
 libpltdir = @libpltdir@
+libpltdir_rel = @libpltdir_rel@
 etcpltdir = @etcpltdir@
 sharepltdir = @sharepltdir@
 collectsdir = @collectsdir@
@@ -235,6 +236,7 @@ install-wx_xt-post-collects:
 # Mac OS X ----------------------------------------
 
 FRAMEWORK_REL_PREFIX="@executable_path/../../../"
+FRAMEWORK_ABS_PREFIX = "$(libpltdir)/"
 
 install-wx_mac:
 	$(MAKE) install-common
@@ -242,28 +244,28 @@ install-wx_mac:
 	cd ..; rm -rf $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app"
 
 install-wx_mac-cgc:
-	cd ..; $(ICP) -r gracket/GRacket@CGC@.app $(DESTDIR)"$(prefix)/lib/GRacket@CGC_CAP_INSTALLED@.app"
-	@RUN_RACKET_CGC@ $(SELF_RACKET_FLAGS) -cqu "$(srcdir)/../mac/rename-app.rkt" $(DESTDIR)"$(prefix)/lib/GRacket@CGC_CAP_INSTALLED@.app" "GRacket@CGC@" "GRacket@CGC_CAP_INSTALLED@"
-	/usr/bin/install_name_tool -change "@executable_path/../../../../racket/Racket.framework/Versions/$(FWVERSION)/Racket" "@FRAMEWORK_PREFIX@Racket.framework/Versions/$(FWVERSION)/Racket" $(DESTDIR)"$(prefix)/lib/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@"
-	@RUN_RACKET_CGC@ $(SELF_RACKET_FLAGS) -cu "$(srcdir)/../racket/collects-path.rkt" $(DESTDIR)"$(prefix)/lib/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@" ../../../../collects ../../../../etc
-	@STRIP_DEBUG@ $(DESTDIR)"$(prefix)/lib/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@"
+	cd ..; $(ICP) -r gracket/GRacket@CGC@.app $(DESTDIR)"$(libpltdir)/GRacket@CGC_CAP_INSTALLED@.app"
+	@RUN_RACKET_CGC@ $(SELF_RACKET_FLAGS) -cqu "$(srcdir)/../mac/rename-app.rkt" $(DESTDIR)"$(libpltdir)/GRacket@CGC_CAP_INSTALLED@.app" "GRacket@CGC@" "GRacket@CGC_CAP_INSTALLED@"
+	/usr/bin/install_name_tool -change "@executable_path/../../../../racket/Racket.framework/Versions/$(FWVERSION)/Racket" "@FRAMEWORK_PREFIX@Racket.framework/Versions/$(FWVERSION)/Racket" $(DESTDIR)"$(libpltdir)/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@"
+	@RUN_RACKET_CGC@ $(SELF_RACKET_FLAGS) -cu "$(srcdir)/../racket/collects-path.rkt" $(DESTDIR)"$(libpltdir)/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@" @GR_APP_COLLECTS_PATH@ @GR_APP_CONFIG_PATH@
+	@STRIP_DEBUG@ $(DESTDIR)"$(libpltdir)/GRacket@CGC_CAP_INSTALLED@.app/Contents/MacOS/GRacket@CGC_CAP_INSTALLED@"
 
 install-wx_mac-cgc-final:
 	$(NOOP)
 
 install-wx_mac-3m:
-	cd ..; $(ICP) -r "gracket/GRacket@MMM@.app" $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app"
-	@RUN_RACKET_MMM@ $(SELF_RACKET_FLAGS) -cqu "$(srcdir)/../mac/rename-app.rkt" $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app" "GRacket@MMM@" "GRacket@MMM_CAP_INSTALLED@"
-	/usr/bin/install_name_tool -change "@executable_path/../../../../racket/Racket.framework/Versions/$(FWVERSION)_3m/Racket" "@FRAMEWORK_PREFIX@Racket.framework/Versions/$(FWVERSION)_3m/Racket" $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@"
-	@RUN_RACKET_MMM@ $(SELF_RACKET_FLAGS) -cu "$(srcdir)/../racket/collects-path.rkt" $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@" "../../../../collects" ../../../../etc
-	@STRIP_DEBUG@ $(DESTDIR)"$(prefix)/lib/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@"
+	cd ..; $(ICP) -r "gracket/GRacket@MMM@.app" $(DESTDIR)"$(libpltdir)/GRacket@MMM_CAP_INSTALLED@.app"
+	@RUN_RACKET_MMM@ $(SELF_RACKET_FLAGS) -cqu "$(srcdir)/../mac/rename-app.rkt" $(DESTDIR)"$(libpltdir)/GRacket@MMM_CAP_INSTALLED@.app" "GRacket@MMM@" "GRacket@MMM_CAP_INSTALLED@"
+	/usr/bin/install_name_tool -change "@executable_path/../../../../racket/Racket.framework/Versions/$(FWVERSION)_3m/Racket" "@FRAMEWORK_PREFIX@Racket.framework/Versions/$(FWVERSION)_3m/Racket" $(DESTDIR)"$(libpltdir)/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@"
+	@RUN_RACKET_MMM@ $(SELF_RACKET_FLAGS) -cu "$(srcdir)/../racket/collects-path.rkt" $(DESTDIR)"$(libpltdir)/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@" @GR_APP_COLLECTS_PATH@ @GR_APP_CONFIG_PATH@
+	@STRIP_DEBUG@ $(DESTDIR)"$(libpltdir)/GRacket@MMM_CAP_INSTALLED@.app/Contents/MacOS/GRacket@MMM_CAP_INSTALLED@"
 
 install-wx_mac-3m-final:
 	$(NOOP)
 
 install-wx_mac-post-collects:
-	cd ..; rm -rf $(DESTDIR)$(prefix)/lib/Starter.app
-	cd ..; $(ICP) -r gracket/Starter.app $(DESTDIR)$(prefix)/lib/.
+	cd ..; rm -rf $(DESTDIR)$(libpltdir)/Starter.app
+	cd ..; $(ICP) -r gracket/Starter.app $(DESTDIR)$(libpltdir)/.
 
 
 @INCLUDEDEP@ grmain.d
diff --git a/racket/src/racket/Makefile.in b/racket/src/racket/Makefile.in
index 8c52c7ba34..e6d234053b 100644
--- a/racket/src/racket/Makefile.in
+++ b/racket/src/racket/Makefile.in
@@ -12,6 +12,7 @@ bindir = @bindir@
 libdir = @libdir@
 includepltdir = @includepltdir@
 libpltdir = @libpltdir@
+libpltdir_rel = @libpltdir_rel@
 etcpltdir = @etcpltdir@
 sharepltdir = @sharepltdir@
 collectsdir = @collectsdir@
@@ -494,7 +495,8 @@ mingw-install-3m-final:
 
 MZFWDIR = @FRAMEWORK_INSTALL_DIR@/Racket.framework
 MZFWMMM = Racket.framework/Versions/$(FWVERSION)_3m/Racket
-FRAMEWORK_REL_PREFIX = "@executable_path/../lib/"
+FRAMEWORK_REL_PREFIX = "@executable_path/../$(libpltdir_rel)/"
+FRAMEWORK_ABS_PREFIX = "$(libpltdir)/"
 
 osx-install:
 	$(MAKE) unix-install
diff --git a/racket/src/racket/configure.ac b/racket/src/racket/configure.ac
index e37b39ec5a..7b1481c1e6 100644
--- a/racket/src/racket/configure.ac
+++ b/racket/src/racket/configure.ac
@@ -143,7 +143,9 @@ else
   case "$host_os" in
   darwin*)
     enable_quartz=yes
-    enable_origtree=yes
+    if test "${enable_origtree}" != "no" ; then
+      enable_origtree=yes
+    fi
     if test "${prefix}" != "NONE" ; then
       if test "${enable_macprefix}" != "yes" ; then
         echo "ERROR: --prefix not allowed for a Mac OS X build, unless either"
@@ -223,6 +225,7 @@ if test "${unixstyle}" = "no" ; then
   fi
   bindir='${prefix}/bin'
   libpltdir='${prefix}/lib'
+  libpltdir_rel='lib'
   sharepltdir='${prefix}/share'
   etcpltdir='${prefix}/etc'
   includepltdir='${prefix}/include'
@@ -232,6 +235,8 @@ if test "${unixstyle}" = "no" ; then
   appsdir='${prefix}/share/applications'
   COLLECTS_PATH="../collects"
   CONFIG_PATH="../etc"
+  GR_APP_COLLECTS_PATH="../../../../collects"
+  GR_APP_CONFIG_PATH="../../../../etc"
   INSTALL_ORIG_TREE=yes
 else
   if test "${prefix}" = "NONE" ; then
@@ -239,12 +244,20 @@ else
     prefix="${ac_default_prefix}"
   fi
   libpltdir="${libdir}/"'${PACKAGE}'
+  libpltdir_rel=""
+  if test "${libpltdir}" = '${exec_prefix}/lib/${PACKAGE}' ; then
+    if test "${bindir}" = '${exec_prefix}/bin' ; then
+      libpltdir_rel="lib/"'${PACKAGE}'
+    fi
+  fi
   sharepltdir="${datadir}/"'${PACKAGE}'
   etcpltdir="${sysconfdir}/"'${PACKAGE}'
   includepltdir="${includedir}/"'${PACKAGE}'
   MAKE_COPYTREE=copytree
   COLLECTS_PATH='${collectsdir}'
   CONFIG_PATH='${etcpltdir}'
+  GR_APP_COLLECTS_PATH="${COLLECTS_PATH}"
+  GR_APP_CONFIG_PATH="${CONFIG_PATH}"
   INSTALL_ORIG_TREE=no
 fi
 
@@ -928,9 +941,13 @@ case "$host_os" in
         FRAMEWORK_REL_INSTALL=no
         FRAMEWORK_PREFIX=''
       else
-        FRAMEWORK_INSTALL_DIR='${libdir}'
+        FRAMEWORK_INSTALL_DIR='${libpltdir}'
         FRAMEWORK_REL_INSTALL=yes
-        FRAMEWORK_PREFIX='$(FRAMEWORK_REL_PREFIX)'
+        if test "${libpltdir_rel}" = "" ; then
+          FRAMEWORK_PREFIX='$(FRAMEWORK_ABS_PREFIX)'
+        else
+          FRAMEWORK_PREFIX='$(FRAMEWORK_REL_PREFIX)'
+        fi
       fi
     else
       PREFLAGS="$PREFLAGS -DXONX "
@@ -1817,14 +1834,17 @@ AC_SUBST(LTA)
 AC_SUBST(collectsdir)
 AC_SUBST(appsdir)
 AC_SUBST(libpltdir)
+AC_SUBST(libpltdir_rel)
 AC_SUBST(sharepltdir)
 AC_SUBST(etcpltdir)
 AC_SUBST(includepltdir)
 AC_SUBST(docdir)
 AC_SUBST(COLLECTS_PATH)
 AC_SUBST(GUI_COLLECTS_PATH)
+AC_SUBST(GR_APP_COLLECTS_PATH)
 AC_SUBST(CONFIG_PATH)
 AC_SUBST(GUI_CONFIG_PATH)
+AC_SUBST(GR_APP_CONFIG_PATH)
 
 AC_SUBST(MMM)
 AC_SUBST(MMM_INSTALLED)