--- rubygems-0.9.1/lib/rubygems.rb.orig 2007-02-12 15:36:46.000000000 -0800
+++ rubygems-0.9.1/lib/rubygems.rb      2007-02-12 15:43:35.000000000 -0800
@@ -457,7 +457,9 @@
       if defined? RUBY_FRAMEWORK_VERSION
         return File.join(File.dirname(Config::CONFIG["sitedir"]), "Gems")
       else
-        File.join(Config::CONFIG['libdir'], 'ruby', 'gems', Config::CONFIG['ruby_version'])
+        gemdir = File::expand_path(File::join(Config::CONFIG["sitedir"],"..","gems"))
+
+        File.join(gemdir, Config::CONFIG['ruby_version'])
       end
     end