diff -up freeradius-1.1.7/raddb/radiusd.conf.in.db_dir freeradius-1.1.7/raddb/radiusd.conf.in
--- freeradius-1.1.7/raddb/radiusd.conf.in.db_dir	2007-08-07 15:41:35.000000000 +0200
+++ freeradius-1.1.7/raddb/radiusd.conf.in	2007-08-07 15:44:47.000000000 +0200
@@ -33,6 +33,11 @@ radacctdir = @radacctdir@
 confdir = ${raddbdir}
 run_dir = ${localstatedir}/run/radiusd
 
+# Location of db files
+# Please use this directory for all db files (e.g. db.daily, db.ippool and
+# db.ipindex).
+db_dir = ${localstatedir}/lib/radiusd
+
 #
 #  The logging messages for the server are appended to the
 #  tail of this file.
@@ -1398,7 +1403,7 @@ $INCLUDE ${confdir}/eap.conf
 	#  'check-name' attribute.
 	#
 	counter daily {
-		filename = ${raddbdir}/db.daily
+		filename = ${db_dir}/db.daily
 		key = User-Name
 		count-attribute = Acct-Session-Time
 		reset = daily
@@ -1713,10 +1718,10 @@ $INCLUDE ${confdir}/eap.conf
 		cache-size = 800
 
 		# session-db: The main db file used to allocate ip's to clients
-		session-db = ${raddbdir}/db.ippool
+		session-db = ${db_dir}/db.ippool
 
 		# ip-index: Helper db index file used in multilink
-		ip-index = ${raddbdir}/db.ipindex
+		ip-index = ${db_dir}/db.ipindex
 
 		# override: Will this ippool override a Framed-IP-Address already set
 		override = no