--- 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.