diff --git a/clang/Driver/clang.cpp b/clang/Driver/clang.cpp
index 525c27faccc9..d17f77b0a878 100644
--- a/clang/Driver/clang.cpp
+++ b/clang/Driver/clang.cpp
@@ -1090,14 +1090,21 @@ void InitializeIncludePaths(const char *Argv0, HeaderSearch &Headers,
 
   Init.AddDefaultEnvVarPaths(Lang);
 
-  // Add the clang headers, which are relative to the clang driver.
+  // Add the clang headers, which are relative to the clang binary.
   llvm::sys::Path MainExecutablePath = 
      llvm::sys::Path::GetMainExecutable(Argv0,
                                     (void*)(intptr_t)InitializeIncludePaths);
   if (!MainExecutablePath.isEmpty()) {
     MainExecutablePath.eraseComponent();  // Remove /clang from foo/bin/clang
     MainExecutablePath.eraseComponent();  // Remove /bin   from foo/bin
-    MainExecutablePath.appendComponent("Headers"); // Get foo/Headers
+
+    // Get foo/lib/clang/1.0/include    
+    // 
+    // FIXME: Don't embed version here.
+    MainExecutablePath.appendComponent("lib");
+    MainExecutablePath.appendComponent("clang");
+    MainExecutablePath.appendComponent("1.0");
+    MainExecutablePath.appendComponent("include");
     
     // We pass true to ignore sysroot so that we *always* look for clang headers
     // relative to our executable, never relative to -isysroot.
diff --git a/clang/lib/Headers/Makefile b/clang/lib/Headers/Makefile
index 98b82c398033..77eb96dc4dc4 100644
--- a/clang/lib/Headers/Makefile
+++ b/clang/lib/Headers/Makefile
@@ -10,7 +10,8 @@
 LEVEL = ../../../..
 include $(LEVEL)/Makefile.common
 
-HeaderDir := $(PROJ_OBJ_ROOT)/$(BuildMode)/Headers
+# FIXME: Get version from a common place.
+HeaderDir := $(PROJ_OBJ_ROOT)/$(BuildMode)/lib/clang/1.0/include
 
 HEADERS := $(notdir $(wildcard $(PROJ_SRC_DIR)/*.h))
 
@@ -19,16 +20,12 @@ OBJHEADERS := $(addprefix $(HeaderDir)/, $(HEADERS))
 
 $(OBJHEADERS): $(HeaderDir)/%.h: $(PROJ_SRC_DIR)/%.h $(HeaderDir)/.dir
 	$(Verb) cp $< $@
-	@echo Copying $(notdir $<) to build dir
-        
-printit:
-	echo $(OBJHEADERS)
-	echo  $(PROJ_SRC_DIR)
- 
+	$(Echo) Copying $(notdir $<) to build dir
+
 # Hook into the standard Makefile rules.
 all-local:: $(OBJHEADERS)
 
-PROJ_headers := $(DESTDIR)$(PROJ_prefix)/Headers
+PROJ_headers := $(DESTDIR)$(PROJ_prefix)/lib/clang/1.0/include
 
 INSTHEADERS := $(addprefix $(PROJ_headers)/, $(HEADERS))
 
@@ -37,6 +34,7 @@ $(PROJ_headers):
 
 $(INSTHEADERS): $(PROJ_headers)/%.h: $(HeaderDir)/%.h | $(PROJ_headers)
 	$(Verb) $(DataInstall) $< $(PROJ_headers)
+	$(Echo) Installing compiler include file: $(notdir $<)
 
 install-local:: $(INSTHEADERS)