--- octave-3.4.0/scripts/pkg/pkg.m.pkgbuilddir	2011-02-08 03:00:51.000000000 -0700

+++ octave-3.4.0/scripts/pkg/pkg.m	2011-03-18 09:31:24.670165643 -0600

@@ -644,7 +644,14 @@

     for i = 1:length (files)

       tgz = files{i};

-      if (exist (tgz, "file"))

+      ## The filename pointed to an uncompressed package to begin with.

+      if (exist (tgz, "dir"))

+        if (tgz(1) == '/')

+          packdir = tgz;

+        else

+          packdir = fullfile (pwd(), tgz);

+        endif

+      elseif (exist (tgz, "file"))

         ## Create a temporary directory.

         tmpdir = tmpnam ();

         tmpdirs{end+1} = tmpdir;

@@ -671,20 +678,12 @@

         if (length (dirlist) > 3)

           error ("bundles of packages are not allowed");

         endif

-      endif

-      ## The filename pointed to an uncompressed package to begin with.

-      if (exist (tgz, "dir"))

-        dirlist = {".", "..", tgz};

+        ## The two first entries of dirlist are "." and "..".

+        packdir = fullfile (tmpdir, dirlist{3});

       endif

       if (exist (tgz, "file") || exist (tgz, "dir"))

-        ## The two first entries of dirlist are "." and "..".

-        if (exist (tgz, "file"))

-          packdir = fullfile (tmpdir, dirlist{3});

-        else

-          packdir = fullfile (pwd(), dirlist{3});

-        endif

         packdirs{end+1} = packdir;

         ## Make sure the package contains necessary files.