diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index dcb038ec30..072e5e5331 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -17,6 +17,11 @@
    past entries belonging to author(s): Viktor Szakats.
 */
 
+2009-08-16 10:37 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
+  * config/global.cf
+    + Package creation now only works if run from Harbour source root.
+    + 'clean' of pkg dir will only happen now if run from Harbour source root.
+
 2009-08-16 10:18 UTC+0200 Viktor Szakats (harbour.01 syenar.hu)
   * external/libpng/pngconf.h
   * external/libpng/pngset.c
diff --git a/harbour/config/global.cf b/harbour/config/global.cf
index 3e2202e375..82e7662f20 100644
--- a/harbour/config/global.cf
+++ b/harbour/config/global.cf
@@ -192,11 +192,15 @@ ifeq ($(HB_INIT_DONE),)
       else
          ifeq ($(findstring install,$(HB_MAKECMDGOALS)),)
             export HB_BUILD_PKG := no
+         else
+            ifeq ($(HB_POSTINST),)
+               export HB_BUILD_PKG := no
+            endif
          endif
       endif
 
       ifeq ($(HB_BUILD_PKG),no)
-         $(warning ! Warning: You have to use 'clean install' to create a release package.)
+         $(warning ! Warning: Use 'clean install' from Harbour root directory to create a release package.)
       endif
 
       # Enforce some basic setting for release packages
@@ -606,7 +610,10 @@ ARCH_COMP := $(HB_ARCHITECTURE)/$(HB_COMPILER)$(subst \,/,$(HB_BUILD_NAME))
 OBJ_DIR := obj/$(ARCH_COMP)
 BIN_DIR := $(TOP)$(ROOT)bin/$(ARCH_COMP)
 LIB_DIR := $(TOP)$(ROOT)lib/$(ARCH_COMP)
-PKG_DIR := $(TOP)$(ROOT)pkg/$(ARCH_COMP)
+# define PKG_DIR only if run from root Makefile
+ifneq ($(HB_POSTINST),)
+   PKG_DIR := $(TOP)$(ROOT)pkg/$(ARCH_COMP)
+endif
 
 # Assemble relative path from OBJ_DIR to source.
 GRANDP := $(subst $(subst x,x, ),,$(foreach item, $(subst /, ,$(OBJ_DIR)), ../))