--- a/src/lib-settings/settings.c	Mon Apr 20 14:54:49 2009 -0400
+++ b/src/lib-settings/settings.c	Tue Apr 21 13:33:53 2009 -0400
@@ -70,6 +70,24 @@
 	return t_strconcat("Unknown setting: ", key, NULL);
 }
 
+static const char *
+fix_relative_path(const char *path, struct input_stack *input)
+{
+	const char *p;
+
+	if (*path == '/')
+		return path;
+
+	while (input->prev != NULL)
+		input = input->prev;
+
+	p = strrchr(input->path, '/');
+	if (p == NULL)
+		return path;
+
+	return t_strconcat(t_strdup_until(input->path, p+1), path, NULL);
+}
+
 #define IS_WHITE(c) ((c) == ' ' || (c) == '\t')
 
 static bool
@@ -169,17 +187,19 @@
 		if (strcmp(key, "!include_try") == 0 ||
 		    strcmp(key, "!include") == 0) {
 			struct input_stack *tmp;
+			const char *path;
 
+			path = fix_relative_path(line, input);
 			for (tmp = input; tmp != NULL; tmp = tmp->prev) {
-				if (strcmp(tmp->path, line) == 0)
+				if (strcmp(tmp->path, path) == 0)
 					break;
 			}
 			if (tmp != NULL) {
 				errormsg = "Recursive include";
-			} else if ((fd = open(line, O_RDONLY)) != -1) {
+			} else if ((fd = open(path, O_RDONLY)) != -1) {
 				new_input = t_new(struct input_stack, 1);
 				new_input->prev = input;
-				new_input->path = t_strdup(line);
+				new_input->path = t_strdup(path);
 				input = new_input;
 				goto newfile;
 			} else {