diff --git a/src/gnome-utils/dialog-utils.c b/src/gnome-utils/dialog-utils.c
index 045d89db6d..725fb4d8ce 100644
--- a/src/gnome-utils/dialog-utils.c
+++ b/src/gnome-utils/dialog-utils.c
@@ -820,9 +820,22 @@ gnc_glade_xml_new (const char *filename, const char *root)
     }
 
     gnc_glade_dir = gnc_path_get_gladedir ();
+    if (!g_file_test(gnc_glade_dir, G_FILE_TEST_IS_DIR))
+    {
+        g_critical("Directory for glade UI files \"%s\" is not found. Your installation is incomplete and cannot be run.", gnc_glade_dir);
+        g_free (gnc_glade_dir);
+        return NULL;
+    }
+
     fname = g_build_filename(gnc_glade_dir, filename, (char *)NULL);
     g_free (gnc_glade_dir);
 
+    if (!g_file_test(fname, G_FILE_TEST_EXISTS))
+    {
+        g_critical("The glade UI file \"%s\" is not found. Your installation is incomplete and cannot be run.", fname);
+        return NULL;
+    }
+
     xml = glade_xml_new (fname, root, NULL);
 
     g_free (fname);
diff --git a/src/gnome-utils/druid-gconf-setup.c b/src/gnome-utils/druid-gconf-setup.c
index e70e5ae50c..77063e8f63 100644
--- a/src/gnome-utils/druid-gconf-setup.c
+++ b/src/gnome-utils/druid-gconf-setup.c
@@ -676,7 +676,14 @@ druid_gconf_install_check_schemas (void)
 #endif /* G_OS_WIN32 */
 
     xml = gnc_glade_xml_new ("druid-gconf-setup.glade", "GConf Query");
+    if (!xml)
+    {
+        gnc_error_dialog(NULL, "The glade UI files were not found. Your installation is incomplete and cannot be run.");
+        exit(-1); /* quit immediately */
+    }
+    g_assert(xml);
     dialog = glade_xml_get_widget (xml, "GConf Query");
+    g_assert(dialog);
     do
     {
         response = gtk_dialog_run(GTK_DIALOG(dialog));
diff --git a/src/gnome-utils/gnc-gnome-utils.c b/src/gnome-utils/gnc-gnome-utils.c
index fa9aeb6b0f..53da66cdeb 100644
--- a/src/gnome-utils/gnc-gnome-utils.c
+++ b/src/gnome-utils/gnc-gnome-utils.c
@@ -260,6 +260,25 @@ gnc_gnome_init (int argc, char **argv, const char * version)
     gchar *pkgsysconfdir = gnc_path_get_pkgsysconfdir ();
     gchar *pkgdatadir = gnc_path_get_pkgdatadir ();
     gchar *pkglibdir = gnc_path_get_pkglibdir ();
+    gboolean installation_ok = TRUE;
+
+    /* Verify all the various directory before proceeding */
+    if (!g_file_test(pkgdatadir, G_FILE_TEST_IS_DIR))
+    {
+        g_critical("The installation data directory \"%s\" was not found. Your installation is incomplete and cannot be run.", pkgdatadir);
+        installation_ok = FALSE;
+    }
+    if (!g_file_test(pkglibdir, G_FILE_TEST_IS_DIR))
+    {
+        g_critical("The installation lib directory \"%s\" was not found. Your installation is incomplete and cannot be run.", pkglibdir);
+        installation_ok = FALSE;
+    }
+
+    if (!g_file_test(pkgsysconfdir, G_FILE_TEST_IS_DIR))
+    {
+        g_critical("The installation sysconf directory \"%s\" was not found. Your installation is incomplete and cannot be run.", pkgsysconfdir);
+        installation_ok = FALSE;
+    }
 
     gnc_gtk_add_rc_file();
     gnucash_program = gnome_program_init(
@@ -270,11 +289,29 @@ gnc_gnome_init (int argc, char **argv, const char * version)
                           GNOME_PARAM_APP_DATADIR, pkgdatadir,
                           GNOME_PARAM_APP_LIBDIR, pkglibdir,
                           GNOME_PARAM_NONE);
+    if (!installation_ok)
+    {
+        /* The following string does not need translation because if
+         * it shows up, the program is unusable anyway. */
+        gnc_error_dialog(NULL, "The installation directories were not found.\n\ndatadir=%s\nlibdir=%s\nsysconfdir=%s\n\nYour installation is incomplete and cannot be run.",
+                         pkgdatadir, pkglibdir, pkgsysconfdir);
+        /* gnc_error_dialog must not be called before gnome_program_init. */
+    }
+
     g_free (prefix);
     g_free (pkgsysconfdir);
     g_free (pkgdatadir);
     g_free (pkglibdir);
 
+    /* Did the installation directory check fail? Terminate
+     * immediately because it will inevitably fail in the glade file
+     * lookup. */
+    if (!installation_ok)
+    {
+        /* No correct installation? Shut down immediately. */
+        exit(-1);
+    }
+
 #ifdef G_OS_WIN32
     /* workaround for bug #421792 */
     xmlCleanupInputCallbacks();