diff --git a/README.md b/README.md
index e93323764..536632996 100644
--- a/README.md
+++ b/README.md
@@ -22,7 +22,7 @@ themselves. To create libraries/packages please read the [guidelines](http://pac
         }
     }
     ```
-    
+
 3. Run Composer: `php composer.phar install`
 4. Browse for more packages on [Packagist](http://packagist.org).
 
@@ -51,7 +51,7 @@ in a system wide way.
 Configuration
 -------------
 
-Additional options for composer can be configured in `composer.json` by using the `config` section. 
+Additional options for composer can be configured in `composer.json` by using the `config` section.
 
 ``` json
 {
diff --git a/bin/composer b/bin/composer
index 0f31a0228..dd23d99dc 100755
--- a/bin/composer
+++ b/bin/composer
@@ -35,12 +35,11 @@ if (isset($packageConfig['config']) && is_array($packageConfig['config'])) {
     $packageConfig['config'] = $composerConfig;
 }
 
-// easy local access
-$vendorPath = $packageConfig['config']['vendor-dir'];
+$vendorDir = $packageConfig['config']['vendor-dir'];
 
 // initialize repository manager
 $rm = new Repository\RepositoryManager();
-$rm->setLocalRepository(new Repository\FilesystemRepository(new JsonFile($vendorPath.'/.composer/installed.json')));
+$rm->setLocalRepository(new Repository\FilesystemRepository(new JsonFile($vendorDir.'/.composer/installed.json')));
 $rm->setRepositoryClass('composer', 'Composer\Repository\ComposerRepository');
 $rm->setRepositoryClass('vcs', 'Composer\Repository\VcsRepository');
 $rm->setRepositoryClass('pear', 'Composer\Repository\PearRepository');
@@ -55,9 +54,9 @@ $dm->setDownloader('pear', new Downloader\PearDownloader());
 $dm->setDownloader('zip',  new Downloader\ZipDownloader());
 
 // initialize installation manager
-$im = new Installer\InstallationManager($vendorPath);
-$im->addInstaller(new Installer\LibraryInstaller($vendorPath, $dm, $rm->getLocalRepository(), null));
-$im->addInstaller(new Installer\InstallerInstaller($vendorPath, $dm, $rm->getLocalRepository(), $im));
+$im = new Installer\InstallationManager($vendorDir);
+$im->addInstaller(new Installer\LibraryInstaller($vendorDir, $dm, $rm->getLocalRepository(), null));
+$im->addInstaller(new Installer\InstallerInstaller($vendorDir, $dm, $rm->getLocalRepository(), $im));
 
 // load package
 $loader  = new Package\Loader\ArrayLoader($rm);
diff --git a/src/Composer/Autoload/AutoloadGenerator.php b/src/Composer/Autoload/AutoloadGenerator.php
index a95ea66fb..efcb3979d 100644
--- a/src/Composer/Autoload/AutoloadGenerator.php
+++ b/src/Composer/Autoload/AutoloadGenerator.php
@@ -54,6 +54,8 @@ EOF;
 
 // autoload_namespace.php generated by Composer
 
+$baseDir = dirname(__DIR__);
+
 return array(
 
 EOF;
@@ -77,7 +79,7 @@ EOF;
             foreach ($autoloads['psr-0'] as $def) {
                 if (!$this->isAbsolutePath($def['path'])) {
                     $def['path'] = substr($def['path'], strlen($vendorPath));
-                    $baseDir = "dirname(__DIR__).";
+                    $baseDir = '$baseDir . ';
                 } else {
                     $baseDir = '';
                 }
diff --git a/src/Composer/Installer/InstallationManager.php b/src/Composer/Installer/InstallationManager.php
index f2d3f5af2..4ae07c1a4 100644
--- a/src/Composer/Installer/InstallationManager.php
+++ b/src/Composer/Installer/InstallationManager.php
@@ -32,21 +32,21 @@ class InstallationManager
 
     /**
      * Creates an instance of InstallationManager
-     * 
-     * @param    string    $vendorPath    Relative path to the vendor directory
+     *
+     * @param    string    $vendorDir    Relative path to the vendor directory
      * @throws   \InvalidArgumentException
      */
-    public function __construct($vendorPath = 'vendor')
+    public function __construct($vendorDir = 'vendor')
     {
-        if (substr($vendorPath, 0, 1) === '/' || substr($vendorPath, 1, 1) === ':') {
+        if (substr($vendorDir, 0, 1) === '/' || substr($vendorDir, 1, 1) === ':') {
             $basePath = getcwd();
-            if (0 !== strpos($vendorPath, $basePath)) {
-                throw new \InvalidArgumentException("Vendor path ($vendorPath) must be within the current working directory ($basePath).");
+            if (0 !== strpos($vendorDir, $basePath)) {
+                throw new \InvalidArgumentException("Vendor dir ($vendorDir) must be within the current working directory ($basePath).");
             }
             // convert to relative path
-            $this->vendorPath = substr($vendorPath, strlen($basePath)+1);
+            $this->vendorPath = substr($vendorDir, strlen($basePath)+1);
         } else {
-            $this->vendorPath = $vendorPath;
+            $this->vendorPath = $vendorDir;
         }
     }
 
@@ -174,7 +174,7 @@ class InstallationManager
 
     /**
      * Returns the vendor path
-     * 
+     *
      * @param   boolean  $absolute  Whether or not to return an absolute path
      * @return  string path
      */
diff --git a/tests/Composer/Test/Installer/InstallationManagerTest.php b/tests/Composer/Test/Installer/InstallationManagerTest.php
index 73c547066..9182ad308 100644
--- a/tests/Composer/Test/Installer/InstallationManagerTest.php
+++ b/tests/Composer/Test/Installer/InstallationManagerTest.php
@@ -209,7 +209,7 @@ class InstallationManagerTest extends \PHPUnit_Framework_TestCase
     public function testGetVendorPathAbsolute()
     {
         $manager = new InstallationManager('vendor');
-        $this->assertEquals(realpath('').DIRECTORY_SEPARATOR.'vendor', $manager->getVendorPath(true));
+        $this->assertEquals(getcwd().DIRECTORY_SEPARATOR.'vendor', $manager->getVendorPath(true));
     }
 
     public function testGetVendorPathRelative()