diff --git a/INSTALL b/INSTALL
index b2585368..fa0d0a33 100644
--- a/INSTALL
+++ b/INSTALL
@@ -15,18 +15,27 @@ this package. Some interesting variables:
   If you already have Simon Vogl's i2c package installed, you may not have
   to compile the version included in this package. In that case, check
   the file i2c/MODIFICATIONS in this package to see what versions are
-  OK.
+  safe.
 * WARN, DEBUG
   These options should only be needed if you are an active developer of
   this package.
-* MODDIR
+* PREFIX (/usr/local)
+  The prefix which is added to most directory locations below.
+* MODDIR (/lib/modules/extra/misc)
   The directory where 'make install' installs your modules.
-* INCLUDEDIR
-  The directory where 'make install' installs your include files.
+* LIBDIR ($(PREFIX)/lib)
+  The directory where 'make install' installs the shared and static libraries.
+* BINDIR ($(PREFIX)/bin)
+  The directory where 'make install' installs all executables.
+* INCLUDEDIR ($(PREFIX)/include)
+  The basic directory where 'make install' installs your include files.
+  Actually, SYSINCLUDEDIR ($(INCLUDEDIR)/linux) is used for kernel header
+  files, and LIBINCLUDEDIR ($(INCLUDEDIR)/sensors) is used for library
+  header files.
 
 Warning! In newer 2.1 kernels, there is support for I2C. This support is
-NOT compatible with this module! Actually, Simon Vogl's modules (which
-ARE compatible) is scheduled to replace the current support. If you
+NOT compatible with this module! Actually, Simon Vogl's modules package 
+(which IS compatible) is scheduled to replace the current support. If you
 actually use these modules, you have a problem; they can not coexist
 with Simon's modules. Theoretically, you should be able to replace
 the old modules with the new stuff in our i2c directory, recompile
diff --git a/doc/makefiles b/doc/makefiles
index 87c81fe9..d5890f77 100644
--- a/doc/makefiles
+++ b/doc/makefiles
@@ -55,11 +55,21 @@ Several files are generated by Makefiles:
     Dependency files for modules. Automatically generated.
   * .rd
     Dependency files for executables. Automatically generated.
+  * .ao
+    Dependency files for static libraries. Automatically generated.
+  * .lo
+    Dependency files for shared libraries. Automatically generated.
+  * .o
+    Generated modules
   * .ro
     Object files for executables. They will be linked together to create
     the executable. This extension is used to distinguish them from 
     modules (which end on .o). Also, using a different extensions makes
     the Makefile fragments much simpler.
+  * .ao
+    Object files for static libraries
+  * .lo
+    Object files for shared libraries
 
 There are lots of comments within the main Makefile. Please read them if
 you want to know more.
diff --git a/i2c/Module.mk b/i2c/Module.mk
index c542410c..cbf5b91d 100644
--- a/i2c/Module.mk
+++ b/i2c/Module.mk
@@ -35,9 +35,9 @@ all-i2c: $(I2CTARGETS)
 all :: all-i2c
 
 install-i2c:
-	$(MKDIR) $(MODDIR) $(INCLUDEDIR)
+	$(MKDIR) $(MODDIR) $(SYSINCLUDEDIR)
 	install -o root -g root -m 644 $(I2CTARGETS) $(MODDIR)
-	install -o root -g root -m 644 $(I2CHEADERFILES) $(INCLUDEDIR)
+	install -o root -g root -m 644 $(I2CHEADERFILES) $(SYSINCLUDEDIR)
 install :: install-i2c
 
 clean-i2c:
diff --git a/kernel/Module.mk b/kernel/Module.mk
index 08ead741..9340178d 100644
--- a/kernel/Module.mk
+++ b/kernel/Module.mk
@@ -38,9 +38,9 @@ all-src: $(SRCTARGETS)
 all :: all-src
 
 install-src:
-	$(MKDIR) $(MODDIR) $(INCLUDEDIR)
+	$(MKDIR) $(MODDIR) $(SYSINCLUDEDIR)
 	install -o root -g root -m 644 $(SRCTARGETS) $(MODDIR)
-	install -o root -g root -m 644 $(SRCHEADERFILES) $(INCLUDEDIR)
+	install -o root -g root -m 644 $(SRCHEADERFILES) $(SYSINCLUDEDIR)
 install :: install-src
 
 clean-src:
diff --git a/src/Module.mk b/src/Module.mk
index 08ead741..9340178d 100644
--- a/src/Module.mk
+++ b/src/Module.mk
@@ -38,9 +38,9 @@ all-src: $(SRCTARGETS)
 all :: all-src
 
 install-src:
-	$(MKDIR) $(MODDIR) $(INCLUDEDIR)
+	$(MKDIR) $(MODDIR) $(SYSINCLUDEDIR)
 	install -o root -g root -m 644 $(SRCTARGETS) $(MODDIR)
-	install -o root -g root -m 644 $(SRCHEADERFILES) $(INCLUDEDIR)
+	install -o root -g root -m 644 $(SRCHEADERFILES) $(SYSINCLUDEDIR)
 install :: install-src
 
 clean-src: