It should do this. I'm interested to know why it doesn't work (assuming deleting preferences didn't help). What it was doing before r1692 was "corrupting" the preferences by sticking a path in there all the time, so if you installed a new version it wouldn't work.
It should not need to be on the path. If it does need to be on the path, that's a bug we need to fix. In fact I'd go further: it shouldn't use the path at all, and if that fixes it, there's something else broken.
Alex
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