diff --git a/app/Console/cake.php b/app/Console/cake.php
index b9c404167..8b30ffd84 100644
--- a/app/Console/cake.php
+++ b/app/Console/cake.php
@@ -3,8 +3,6 @@
 /**
  * Command-line code generation utility to automate programmer chores.
  *
- * Shell dispatcher class
- *
  * PHP 5
  *
  * CakePHP(tm) : Rapid Development Framework (http://cakephp.org)
@@ -15,10 +13,29 @@
  *
  * @copyright     Copyright 2005-2011, Cake Software Foundation, Inc. (http://cakefoundation.org)
  * @link          http://cakephp.org CakePHP(tm) Project
- * @package       app.console
- * @since         CakePHP(tm) v 1.2.0.5012
+ * @package       app.Console
+ * @since         CakePHP(tm) v 2.0
  * @license       MIT License (http://www.opensource.org/licenses/mit-license.php)
  */
-require_once(dirname(dirname(dirname(__FILE__))) . DIRECTORY_SEPARATOR . 'lib'. DIRECTORY_SEPARATOR . 'Cake' . DIRECTORY_SEPARATOR . 'Console' . DIRECTORY_SEPARATOR . 'ShellDispatcher.php');
+$ds = DIRECTORY_SEPARATOR;
+$dispatcher = 'Cake' . $ds . 'Console' . $ds . 'ShellDispatcher.php';
+$found = false;
+$paths = explode(PATH_SEPARATOR, ini_get('include_path'));
+
+foreach ($paths as $path) {
+	if (file_exists($path . $ds . $dispatcher)) {
+		$found = $path;
+	}
+}
+
+if (!$found && function_exists('ini_set')) {
+	$root = dirname(dirname(dirname(__FILE__)));
+	ini_set('include_path', $root . $ds. 'lib' . PATH_SEPARATOR . ini_get('include_path'));
+}
+
+if (!include($dispatcher)) {
+	trigger_error('Could not locate CakePHP core files.', E_USER_ERROR);
+}
+unset($paths, $path, $found, $dispatcher, $root, $ds);
 
 return ShellDispatcher::run($argv);
diff --git a/app/webroot/index.php b/app/webroot/index.php
index 943e310aa..31901c223 100644
--- a/app/webroot/index.php
+++ b/app/webroot/index.php
@@ -44,13 +44,17 @@
 	if (!defined('APP_DIR')) {
 		define('APP_DIR', basename(dirname(dirname(__FILE__))));
 	}
+
 /**
  * The absolute path to the "cake" directory, WITHOUT a trailing DS.
  *
+ * Un-comment this line to specify a fixed path to CakePHP.
+ * This should point at the directory containg `Cake`.
+ *
+ * For ease of development CakePHP uses PHP's include_path.  If you
+ * cannot modify your include_path set this value.
  */
-	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
-		define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
-	}
+	//define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
 
 /**
  * Editing below this line should NOT be necessary.
@@ -63,11 +67,20 @@
 	if (!defined('WWW_ROOT')) {
 		define('WWW_ROOT', dirname(__FILE__) . DS);
 	}
-	if (!defined('CORE_PATH')) {
-		define('APP_PATH', ROOT . DS . APP_DIR . DS);
-		define('CORE_PATH', CAKE_CORE_INCLUDE_PATH . DS);
+
+	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
+		if (function_exists('ini_set')) {
+			ini_set('include_path', ROOT . DS . 'lib' . PATH_SEPARATOR . ini_get('include_path'));
+		}
+		if (!include('Cake' . DS . 'bootstrap.php')) {
+			$failed = true;
+		}
+	} else {
+		if (!include(CAKE_CORE_INCLUDE_PATH . DS . 'Cake' . DS . 'bootstrap.php')) {
+			$failed = true;
+		}
 	}
-	if (!include(CORE_PATH . 'Cake' . DS . 'bootstrap.php')) {
+	if (!empty($failed)) {
 		trigger_error("CakePHP core could not be found.  Check the value of CAKE_CORE_INCLUDE_PATH in APP/webroot/index.php.  It should point to the directory containing your " . DS . "cake core directory and your " . DS . "vendors root directory.", E_USER_ERROR);
 	}
 
diff --git a/app/webroot/test.php b/app/webroot/test.php
index aa6759d06..f48bfb593 100644
--- a/app/webroot/test.php
+++ b/app/webroot/test.php
@@ -44,13 +44,14 @@ ini_set('display_errors', 1);
 	if (!defined('APP_DIR')) {
 		define('APP_DIR', basename(dirname(dirname(__FILE__))));
 	}
+
 /**
  * The absolute path to the "Cake" directory, WITHOUT a trailing DS.
  *
+ * For ease of development CakePHP uses PHP's include_path.  If you
+ * need to cannot modify your include_path, you can set this path.
  */
-	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
-		define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
-	}
+	//define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
 
 /**
  * Editing below this line should not be necessary.
@@ -63,11 +64,20 @@ if (!defined('WEBROOT_DIR')) {
 if (!defined('WWW_ROOT')) {
 	define('WWW_ROOT', dirname(__FILE__) . DS);
 }
-if (!defined('CORE_PATH')) {
-	define('APP_PATH', ROOT . DS . APP_DIR . DS);
-	define('CORE_PATH', CAKE_CORE_INCLUDE_PATH . DS);
+
+if (!defined('CAKE_CORE_INCLUDE_PATH')) {
+	if (function_exists('ini_set')) {
+		ini_set('include_path', ROOT . DS . 'lib' . PATH_SEPARATOR . ini_get('include_path'));
+	}
+	if (!include('Cake' . DS . 'bootstrap.php')) {
+		$failed = true;
+	}
+} else {
+	if (!include(CAKE_CORE_INCLUDE_PATH . DS . 'Cake' . DS . 'bootstrap.php')) {
+		$failed = true;
+	}
 }
-if (!include(CORE_PATH . 'Cake' . DS . 'bootstrap.php')) {
+if (!empty($failed)) {
 	trigger_error("CakePHP core could not be found.  Check the value of CAKE_CORE_INCLUDE_PATH in APP/webroot/index.php.  It should point to the directory containing your " . DS . "cake core directory and your " . DS . "vendors root directory.", E_USER_ERROR);
 }
 
diff --git a/lib/Cake/Console/Templates/skel/webroot/index.php b/lib/Cake/Console/Templates/skel/webroot/index.php
index 7b67ae20b..2dced12c7 100644
--- a/lib/Cake/Console/Templates/skel/webroot/index.php
+++ b/lib/Cake/Console/Templates/skel/webroot/index.php
@@ -44,13 +44,17 @@
 	if (!defined('APP_DIR')) {
 		define('APP_DIR', basename(dirname(dirname(__FILE__))));
 	}
+
 /**
  * The absolute path to the "cake" directory, WITHOUT a trailing DS.
  *
+ * Un-comment this line to specify a fixed path to CakePHP.
+ * This should point at the directory containg `Cake`.
+ *
+ * For ease of development CakePHP uses PHP's include_path.  If you
+ * need to squeeze a bit more performance you can set this path.
  */
-	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
-		define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
-	}
+	//define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
 
 /**
  * Editing below this line should NOT be necessary.
@@ -63,11 +67,20 @@
 	if (!defined('WWW_ROOT')) {
 		define('WWW_ROOT', dirname(__FILE__) . DS);
 	}
-	if (!defined('CORE_PATH')) {
-		define('APP_PATH', ROOT . DS . APP_DIR . DS);
-		define('CORE_PATH', CAKE_CORE_INCLUDE_PATH . DS);
+
+	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
+		if (function_exists('ini_set')) {
+			ini_set('include_path', ROOT . DS . 'lib' . PATH_SEPARATOR . ini_get('include_path'));
+		}
+		if (!include('Cake' . DS . 'bootstrap.php')) {
+			$failed = true;
+		}
+	} else {
+		if (!include(CAKE_CORE_INCLUDE_PATH . DS . 'Cake' . DS . 'bootstrap.php')) {
+			$failed = true;
+		}
 	}
-	if (!include(CORE_PATH . 'Cake' . DS . 'bootstrap.php')) {
+	if (!empty($failed)) {
 		trigger_error("CakePHP core could not be found.  Check the value of CAKE_CORE_INCLUDE_PATH in APP/webroot/index.php.  It should point to the directory containing your " . DS . "cake core directory and your " . DS . "vendors root directory.", E_USER_ERROR);
 	}
 
@@ -76,5 +89,6 @@
 	}
 
 	App::uses('Dispatcher', 'Routing');
+
 	$Dispatcher = new Dispatcher();
 	$Dispatcher->dispatch(new CakeRequest(), new CakeResponse(array('charset' => Configure::read('App.encoding'))));
diff --git a/lib/Cake/Console/Templates/skel/webroot/test.php b/lib/Cake/Console/Templates/skel/webroot/test.php
index aa6759d06..f48bfb593 100644
--- a/lib/Cake/Console/Templates/skel/webroot/test.php
+++ b/lib/Cake/Console/Templates/skel/webroot/test.php
@@ -44,13 +44,14 @@ ini_set('display_errors', 1);
 	if (!defined('APP_DIR')) {
 		define('APP_DIR', basename(dirname(dirname(__FILE__))));
 	}
+
 /**
  * The absolute path to the "Cake" directory, WITHOUT a trailing DS.
  *
+ * For ease of development CakePHP uses PHP's include_path.  If you
+ * need to cannot modify your include_path, you can set this path.
  */
-	if (!defined('CAKE_CORE_INCLUDE_PATH')) {
-		define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
-	}
+	//define('CAKE_CORE_INCLUDE_PATH', ROOT . DS . 'lib');
 
 /**
  * Editing below this line should not be necessary.
@@ -63,11 +64,20 @@ if (!defined('WEBROOT_DIR')) {
 if (!defined('WWW_ROOT')) {
 	define('WWW_ROOT', dirname(__FILE__) . DS);
 }
-if (!defined('CORE_PATH')) {
-	define('APP_PATH', ROOT . DS . APP_DIR . DS);
-	define('CORE_PATH', CAKE_CORE_INCLUDE_PATH . DS);
+
+if (!defined('CAKE_CORE_INCLUDE_PATH')) {
+	if (function_exists('ini_set')) {
+		ini_set('include_path', ROOT . DS . 'lib' . PATH_SEPARATOR . ini_get('include_path'));
+	}
+	if (!include('Cake' . DS . 'bootstrap.php')) {
+		$failed = true;
+	}
+} else {
+	if (!include(CAKE_CORE_INCLUDE_PATH . DS . 'Cake' . DS . 'bootstrap.php')) {
+		$failed = true;
+	}
 }
-if (!include(CORE_PATH . 'Cake' . DS . 'bootstrap.php')) {
+if (!empty($failed)) {
 	trigger_error("CakePHP core could not be found.  Check the value of CAKE_CORE_INCLUDE_PATH in APP/webroot/index.php.  It should point to the directory containing your " . DS . "cake core directory and your " . DS . "vendors root directory.", E_USER_ERROR);
 }
 
diff --git a/lib/Cake/Console/cake.php b/lib/Cake/Console/cake.php
index 6e4381516..28282e675 100644
--- a/lib/Cake/Console/cake.php
+++ b/lib/Cake/Console/cake.php
@@ -19,6 +19,6 @@
  * @since         CakePHP(tm) v 1.2.0.5012
  * @license       MIT License (http://www.opensource.org/licenses/mit-license.php)
  */
-require_once(dirname(__FILE__) . DIRECTORY_SEPARATOR. 'ShellDispatcher.php');
+require_once(dirname(__FILE__) . DIRECTORY_SEPARATOR . 'ShellDispatcher.php');
 
 return ShellDispatcher::run($argv);
diff --git a/lib/Cake/bootstrap.php b/lib/Cake/bootstrap.php
index 2696b06b1..21b2a1e6d 100644
--- a/lib/Cake/bootstrap.php
+++ b/lib/Cake/bootstrap.php
@@ -23,18 +23,21 @@ if (!defined('E_DEPRECATED')) {
 }
 error_reporting(E_ALL & ~E_DEPRECATED);
 
-/**
- * If the index.php file is used instead of an .htaccess file
- * or if the user can not set the web root to use the public
- * directory we will define ROOT there, otherwise we set it
- * here.
- */
-	if (!defined('ROOT')) {
-		define('ROOT', '../');
-	}
-	if (!defined('WEBROOT_DIR')) {
-		define('WEBROOT_DIR', 'webroot');
-	}
+if (!defined('CAKE_CORE_INCLUDE_PATH')) {
+	define('CAKE_CORE_INCLUDE_PATH', dirname(dirname(__FILE__)));
+}
+
+if (!defined('CORE_PATH')) {
+	define('CORE_PATH', CAKE_CORE_INCLUDE_PATH . DS);
+}
+
+if (!defined('APP_PATH')) {
+	define('APP_PATH', ROOT . DS . APP_DIR . DS);
+}
+
+if (!defined('WEBROOT_DIR')) {
+	define('WEBROOT_DIR', 'webroot');
+}
 
 /**
  * Path to the cake directory.