diff -Nru gradle-1.1/subprojects/base-services/src/main/java/org/gradle/internal/SystemProperties.java gradle-1.1-gil/subprojects/base-services/src/main/java/org/gradle/internal/SystemProperties.java
--- gradle-1.1/subprojects/base-services/src/main/java/org/gradle/internal/SystemProperties.java	2012-07-23 17:34:16.000000000 +0200
+++ gradle-1.1-gil/subprojects/base-services/src/main/java/org/gradle/internal/SystemProperties.java	2012-08-05 10:55:16.592443878 +0200
@@ -35,7 +35,7 @@
     }
 
     public static String getUserHome() {
-        return System.getProperty("user.home");
+        return System.getenv("user.home");
     }
 
     public static String getJavaVersion() {
diff -Nru gradle-1.1/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java gradle-1.1-gil/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java
--- gradle-1.1/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java	2012-07-23 17:34:16.000000000 +0200
+++ gradle-1.1-gil/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java	2012-08-05 10:53:35.717188516 +0200
@@ -307,7 +307,7 @@
      * @return the file that we save our settings to.
      */
     private File getSettingsFile() {
-        return new File(System.getProperty("user.dir"), "gradle-app" + SETTINGS_EXTENSION);
+        return new File(System.getProperty("user.home"), "gradle-app" + SETTINGS_EXTENSION);
     }
 
     private class SettingsImportInteraction implements DOM4JSerializer.ImportInteraction {