diff --git a/configure.in b/configure.in
index 62bd58dfc0..12eda791c9 100644
--- a/configure.in
+++ b/configure.in
@@ -428,13 +428,14 @@ else
 fi
 if test x$QOF_XML_DIR = x; then
         AC_MSG_RESULT([no, will use internal QOF code])
-  	QOF_LIB_DIR="\${libdir}"
+	QOF_LIB_DIR=`eval echo $libdir | sed "s%^NONE%$prefix%"`
+	QOF_LIB_DIR=`eval echo $QOF_LIB_DIR | sed "s%^NONE%$prefix%"`  
 	QOF_CFLAGS="-I\${top_srcdir}/lib/libqof/qof"
 	QOF_LIBS="\${top_srcdir}/lib/libqof/qof/libqof.la"
 #	QOF_LIB_DIR=`eval echo ${libdir}`
 	QOF_VERSION="internal"
 	QOF_PREFIX="internal"
-	QOF_XML_DIR="\${datadir}/xml/qsf"
+	QOF_XML_DIR=`eval echo ${datadir}/xml/qsf`
 	LIBQOF_LIBRARY_VERSION=1:2:0
 	LIBQOF_BACKEND_QSF_LIBRARY_VERSION=0:1:0
 	AC_SUBST(LIBQOF_LIBRARY_VERSION)