@@ -104,11 +104,15 @@
 	  (set-run-config-vars db run-id)
 	  ;; environment overrides are done *before* the remaining critical envars.
 	  (alist->env-vars env-ovrd)
 	  (set-megatest-env-vars db run-id)
 	  (set-item-env-vars itemdat)
-	  (save-environment-as-files "megatest")
+	  (save-environment-as-files "megatest" 
+				     flst:      '("DISPLAY")
+				     overrides: (if (config-lookup *configdat* "setup" "homedir")
+						    (list (list "HOME" (config-lookup *configdat* "setup" "homedir"))
+						    (list (list "HOME" work-area)))))
 	  (test-set-meta-info db run-id test-name itemdat)
 	  (test-set-status! db test-id "REMOTEHOSTSTART" "n/a" (args:get-arg "-m") #f)
 	  (if (args:get-arg "-xterm")
 	      (set! fullrunscript "xterm")
 	      (if (and fullrunscript (not (file-execute-access? fullrunscript)))
@@ -354,10 +358,17 @@
   (set! *configdat*  (if (car *configinfo*)(car *configinfo*) #f))
   (set! *toppath*    (if (car *configinfo*)(cadr *configinfo*) #f))
   (if *toppath*
       (setenv "MT_RUN_AREA_HOME" *toppath*) ;; to be deprecated
       (debug:print 0 "ERROR: failed to find the top path to your run setup."))
+  ;; here we extract the path to the megatest executable and append it to the path
+  (let ((path (pathname-directory (car (argv)))))
+    (if path
+	(setenv "PATH" (conc
+			(get-environment-variable "PATH")
+			":"
+			(posix-extras#resolve-pathname path)))))
   *toppath*)
 
 (define (get-best-disk confdat)
   (let* ((disks    (hash-table-ref/default confdat "disks" #f))
 	 (best     #f)