diff --git a/HACKING b/HACKING
index bdee483dde..e49921e81f 100644
--- a/HACKING
+++ b/HACKING
@@ -139,8 +139,11 @@ However, I did not find valgrind to be useful.  It reported a bunch of
 guile bugs, some g_hash_table bugs, and then the program exited prematurely 
 for no apparent reason. :-( 
 
-For the moment, use the suppressions in src/valgrind-gnucash.supp
+For the moment, gnucash-valgrind uses the suppressions in 
+src/debug/valgrind/valgrind-*.supp
 
+For valgrind-gnucash.supp, this comment was made (but is perhaps outdated 
+by now ?):
 This file needs to be cleaned up in two ways:
 
 1/ There are a bunch of duplicate suppressions in the file.
diff --git a/configure.in b/configure.in
index bdf4a87edb..2862d70045 100644
--- a/configure.in
+++ b/configure.in
@@ -1549,7 +1549,9 @@ AC_CONFIG_FILES(po/Makefile.in
           src/bin/test/Makefile
           src/core-utils/Makefile
           src/calculation/Makefile 
-          src/calculation/test/Makefile 
+          src/calculation/test/Makefile
+          src/debug/Makefile
+          src/debug/valgrind/Makefile 
           src/doc/Makefile
           src/doc/design/Makefile
           src/doc/xml/Makefile
diff --git a/src/Makefile.am b/src/Makefile.am
index 1f0d1cd666..7ca2fb0a60 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -1,5 +1,6 @@
 NONGUI_SUBDIRS = \
   libqof \
+  debug \
   doc \
   pixmaps \
   core-utils \
@@ -51,6 +52,5 @@ EXTRA_DIST = \
   base-typemaps.i \
   README.modules \
   gnc-test-env \
-  valgrind-gnucash.supp \
   guile-mappings.h \
   glib-compat.h
diff --git a/src/bin/Makefile.am b/src/bin/Makefile.am
index d4dda605ec..3661a0f846 100644
--- a/src/bin/Makefile.am
+++ b/src/bin/Makefile.am
@@ -57,7 +57,7 @@ gnucash-valgrind: gnucash-valgrind.in ${top_builddir}/config.status Makefile
 	rm -f $@.tmp
 	sed < $< > $@.tmp \
 	    -e 's#@-BIN_DIR-@#${bindir}#g' \
-	    -e "s#@-TOP_SRC_DIR-@#`pwd`/${top_srcdir}#g" \
+	    -e "s#@-TOP_SRC_DIR-@#${abs_top_srcdir}#g" \
 	    -e "s#@-GNUCASH_SETUP_ENV_INSTALL_NAME-@#${GNUCASH_SETUP_ENV_INSTALL_NAME}#g" \
 	    -e "s#@-GNUCASH_BIN_INSTALL_NAME-@#${GNUCASH_BIN_INSTALL_NAME}#g"
 	mv $@.tmp $@
diff --git a/src/bin/gnucash-valgrind.in b/src/bin/gnucash-valgrind.in
index 65092eaf00..4e99f7acf5 100644
--- a/src/bin/gnucash-valgrind.in
+++ b/src/bin/gnucash-valgrind.in
@@ -10,13 +10,13 @@ TOP_SRC_DIR="@-TOP_SRC_DIR-@"
 export G_SLICE=always-malloc
 export G_DEBUG=gc-friendly
 exec valgrind -v \
-    --suppressions=${TOP_SRC_DIR}/src/valgrind-gnucash.supp \
-    --suppressions=${TOP_SRC_DIR}/src/valgrind-glib.supp \
-    --suppressions=${TOP_SRC_DIR}/src/valgrind-libfontconfig.supp \
-    --suppressions=${TOP_SRC_DIR}/src/valgrind-libgda.supp \
-    --suppressions=${TOP_SRC_DIR}/src/valgrind-libguile.supp \
-	--num-callers=25 \
+    --suppressions=${TOP_SRC_DIR}/src/debug/valgrind/valgrind-gnucash.supp \
+    --suppressions=${TOP_SRC_DIR}/src/debug/valgrind/valgrind-glib.supp \
+    --suppressions=${TOP_SRC_DIR}/src/debug/valgrind/valgrind-libfontconfig.supp \
+    --suppressions=${TOP_SRC_DIR}/src/debug/valgrind/valgrind-libgda.supp \
+    --suppressions=${TOP_SRC_DIR}/src/debug/valgrind/valgrind-libguile.supp \
+    --num-callers=25 \
     --error-limit=no \
     --tool=memcheck \
-	--leak-check=full \
+    --leak-check=full \
     @-GNUCASH_BIN_INSTALL_NAME-@ "$@"
diff --git a/src/debug/Makefile.am b/src/debug/Makefile.am
new file mode 100644
index 0000000000..19ab052446
--- /dev/null
+++ b/src/debug/Makefile.am
@@ -0,0 +1,3 @@
+
+SUBDIRS = \
+  valgrind
\ No newline at end of file
diff --git a/src/debug/valgrind/Makefile.am b/src/debug/valgrind/Makefile.am
new file mode 100644
index 0000000000..efcaae1b20
--- /dev/null
+++ b/src/debug/valgrind/Makefile.am
@@ -0,0 +1,9 @@
+
+EXTRA_DIST = \
+  valgrind-gdk.supp \
+  valgrind-glib.supp \
+  valgrind-gnucash.supp \
+  valgrind-libfontconfig.supp \
+  valgrind-libgda.supp \
+  valgrind-libguile.supp \
+  valgrind-x11.supp
\ No newline at end of file
diff --git a/src/valgrind-gdk.supp b/src/debug/valgrind/valgrind-gdk.supp
similarity index 100%
rename from src/valgrind-gdk.supp
rename to src/debug/valgrind/valgrind-gdk.supp
diff --git a/src/valgrind-glib.supp b/src/debug/valgrind/valgrind-glib.supp
similarity index 100%
rename from src/valgrind-glib.supp
rename to src/debug/valgrind/valgrind-glib.supp
diff --git a/src/valgrind-gnucash.supp b/src/debug/valgrind/valgrind-gnucash.supp
similarity index 100%
rename from src/valgrind-gnucash.supp
rename to src/debug/valgrind/valgrind-gnucash.supp
diff --git a/src/valgrind-libfontconfig.supp b/src/debug/valgrind/valgrind-libfontconfig.supp
similarity index 100%
rename from src/valgrind-libfontconfig.supp
rename to src/debug/valgrind/valgrind-libfontconfig.supp
diff --git a/src/valgrind-libgda.supp b/src/debug/valgrind/valgrind-libgda.supp
similarity index 100%
rename from src/valgrind-libgda.supp
rename to src/debug/valgrind/valgrind-libgda.supp
diff --git a/src/valgrind-libguile.supp b/src/debug/valgrind/valgrind-libguile.supp
similarity index 100%
rename from src/valgrind-libguile.supp
rename to src/debug/valgrind/valgrind-libguile.supp
diff --git a/src/valgrind-x11.supp b/src/debug/valgrind/valgrind-x11.supp
similarity index 100%
rename from src/valgrind-x11.supp
rename to src/debug/valgrind/valgrind-x11.supp
diff --git a/src/doc/Makefile.am b/src/doc/Makefile.am
index 903e664eae..e133873108 100644
--- a/src/doc/Makefile.am
+++ b/src/doc/Makefile.am
@@ -7,6 +7,7 @@ EXTRA_DIST = \
   README \
   backup.txt \
   budget.txt \
+  callgrind.txt \
   constderv.html \
   finderv.html \
   finutil.html \
@@ -26,7 +27,6 @@ EXTRA_DIST = \
   netlogin.txt \
   guid.txt \
   qif.txt \
-  valgrind.txt \
   generic-druid-framework.txt \
   user-prefs-howto.txt
 
diff --git a/src/doc/valgrind.txt b/src/doc/callgrind.txt
similarity index 100%
rename from src/doc/valgrind.txt
rename to src/doc/callgrind.txt