diff --git a/Makefile.in b/Makefile.in
index 9d3aea2c1..047a49a9d 100644
--- a/Makefile.in
+++ b/Makefile.in
@@ -16,7 +16,7 @@
 #    59 Temple Place - Suite 330
 #    Boston, MA 02111-1307, USA
 #
-#ident "$Id: Makefile.in,v 1.129 2002/06/30 02:21:31 steve Exp $"
+#ident "$Id: Makefile.in,v 1.130 2002/07/03 23:20:12 steve Exp $"
 #
 #
 SHELL = /bin/sh
@@ -179,7 +179,8 @@ ifeq (@WIN32@,yes)
 
 else
 iverilog-vpi: iverilog-vpi.sh
-	sed -e 's;@SHARED@;@shared@;' -e 's;@PIC@;@PICFLAG@;' $< > $@
+	sed -e 's;@SHARED@;@shared@;' -e 's;@PIC@;@PICFLAG@;' \
+	    -e 's;@INCLUDEDIR@;@includedir@;' -e 's;@LIBDIR@;@libdir@;' $< > $@
 	chmod +x $@
 endif
 
diff --git a/iverilog-vpi.sh b/iverilog-vpi.sh
index f591b8bfe..fba1737f9 100644
--- a/iverilog-vpi.sh
+++ b/iverilog-vpi.sh
@@ -17,17 +17,17 @@
 #    59 Temple Place - Suite 330
 #    Boston, MA 02111-1307, USA
 #
-#ident "$Id: iverilog-vpi.sh,v 1.4 2002/05/23 03:35:05 steve Exp $"
+#ident "$Id: iverilog-vpi.sh,v 1.5 2002/07/03 23:20:12 steve Exp $"
 
 # These are the variables used for compiling files
 CC=gcc
 CXX=gcc
-CFLAGS="@PIC@ -O"
+CFLAGS="@PIC@ -O -I@INCLUDEDIR@"
 
 # These are used for linking...
 LD=gcc
 LDFLAGS="@SHARED@"
-LDLIBS="-lveriuser -lvpi"
+LDLIBS="-L@LIBDIR@ -lveriuser -lvpi"
 
 CCSRC=
 CXSRC=
@@ -70,7 +70,7 @@ do
 done
 
 if [ x$OUT = x ]; then
-    echo "Usage: vpi-tool [src and obj files]..."
+    echo "Usage: $0 [src and obj files]..."
     exit 0
 fi
 
@@ -87,7 +87,7 @@ do
     obj=$base".o"
 
     echo "Compiling $src..."
-    $CC -c -o $obj $src || compile_errors=`expr $compile_errors + 1`
+    $CC -c -o $obj $CFLAGS $src || compile_errors=`expr $compile_errors + 1`
     OBJ="$OBJ $obj"
 done
 
@@ -98,7 +98,7 @@ do
     obj=$base".o"
 
     echo "Compiling $src..."
-    $CXX -c -o $obj $src || compile_errors=`expr $compile_errors + 1`
+    $CXX -c -o $obj $CFLAGS $src || compile_errors=`expr $compile_errors + 1`
     OBJ="$OBJ $obj"
 done