diff --git a/ChangeLog b/ChangeLog
index 7f7a2f1c5d..ef80ca7e80 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,5 +1,18 @@
 2005-07-12  Andy Wingo  <wingo@pobox.com>
 
+	* configure.ac (AC_CONFIG_FILES): The makefile handles pygst.py
+	now.
+	
+	* Makefile.am (install-data-local): Actually install pygst.pth to
+	the pythondir, not pyexecdir. Also install a properly sedded
+	pygst.py.
+	(pygst.py): Sed the builddir into pygst.py, and set not writable
+	(to avoid any confusion about which file to edit).
+
+	* pygst.py.in (_pygst_dir): Set _pygst_dir from one variable,
+	@PYGSTDIR@, which is manually sedded in from the Makefile, so that
+	it works both installed and uninstalled.
+
 	* configure.ac (AC_CONFIG_FILES):
 	* examples/: Moved all examples up from examples/gst/ into
 	examples/.
diff --git a/Makefile.am b/Makefile.am
index c0b85ad55e..39e5da5c18 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -19,15 +19,25 @@ EXTRA_DIST = \
 
 include $(top_srcdir)/common/release.mak
 
-# install pth file.
-install-data-local:
+pygst.py: pygst.py.in Makefile
+	if test -f $@; then chmod +w $@; fi
+	sed -e "s|@PYGSTDIR\@|$(shell pwd)|g" \
+	    -e "s|@GST_MAJORMINOR\@|$(GST_MAJORMINOR)|g" \
+	    $< > $@
+	chmod -w $@
+
+all-local: pygst.py
+
+# rewrite pygst path in installed pygst.py, install pth file.
+install-data-local: Makefile
 	$(mkinstalldirs) $(DESTDIR)$(pythondir)
-	echo "gst-$(GST_MAJORMINOR)" > $(DESTDIR)$(pyexecdir)/pygst.pth
+	sed -e "s|@PYGSTDIR\@|$(PYTHONDIR)/$(GST_MAJORMINOR)|g" \
+	    -e "s|@GST_MAJORMINOR\@|$(GST_MAJORMINOR)|g" \
+	    $(srcdir)/pygst.py.in > $(DESTDIR)$(pythondir)/pygst.py
+	chmod 644 $(DESTDIR)$(pyexecdir)/pygst.py
+	echo "gst-$(GST_MAJORMINOR)" > $(DESTDIR)$(pythondir)/pygst.pth
+
+# also install pth file in pyexec.
 install-exec-local:
 	$(mkinstalldirs) $(DESTDIR)$(pyexecdir)
 	echo "gst-$(GST_MAJORMINOR)" > $(DESTDIR)$(pyexecdir)/pygst.pth
-uninstall-local:
-	rm -f $(DESTDIR)$(pythondir)/pygst.pth $(DESTDIR)$(pyexecdir)/pygst.pth
-
-# this file is common to all pygtk versions.
-pyexec_PYTHON = pygst.py
diff --git a/configure.ac b/configure.ac
index d1b26a4b07..e76d0d3beb 100644
--- a/configure.ac
+++ b/configure.ac
@@ -173,5 +173,4 @@ AC_OUTPUT([
   docs/gst-python.ent
   testsuite/Makefile
   gst-python.spec
-  pygst.py
 ])
diff --git a/pygst.py.in b/pygst.py.in
index 9e89dc0739..439a7e8478 100644
--- a/pygst.py.in
+++ b/pygst.py.in
@@ -31,7 +31,7 @@ import sys
 
 __all__ = ['require']
 
-_pygst_dir = '@PYTHONDIR@/gst-@GST_MAJORMINOR@'
+_pygst_dir = '@PYGSTDIR@'
 
 _pygst_version = '@GST_MAJORMINOR@'