diff --git a/build.xml b/build.xml
index 696cf2d5..98d0cfef 100644
--- a/build.xml
+++ b/build.xml
@@ -17,7 +17,7 @@
   <!-- declare our classpath business -->
   <path id="classpath">
     <pathelement location="${classes.dir}"/>
-    <fileset dir="lib" includes="**/*.jar"/>
+    <fileset dir="${deploy.dir}/lib" includes="**/*.jar"/>
   </path>
 
   <!-- generates additional methods for distributed object classes -->
@@ -124,6 +124,7 @@
   <!-- prepares the application directories -->
   <target name="prepare">
     <mkdir dir="${deploy.dir}"/>
+    <mkdir dir="${deploy.dir}/lib"/>
     <mkdir dir="${classes.dir}"/>
     <mkdir dir="${classes.dir}/rsrc"/>
     <mkdir dir="${javadoc.home}"/>
@@ -134,6 +135,9 @@
     <copy todir="${classes.dir}/rsrc">
       <fileset dir="rsrc" includes="**/*" excludes="**/bundles/**"/>
     </copy>
+    <copy todir="${deploy.dir}/lib">
+      <fileset dir="lib" includes="**/*.jar"/>
+    </copy>
   </target>
 
   <!-- cleans out the installed application -->
@@ -219,14 +223,13 @@
     </jar>
   </target>
 
-  <!-- various bits used by the retroweaver tasks -->
-  <taskdef name="weave" classpathref="classpath"
-           classname="com.rc.retroweaver.ant.RetroWeaverTask"/>
-  <property name="inpre" value="${deploy.dir}/${app.name}"/>
-  <property name="outpre" value="${deploy.dir}/retro/${app.name}"/>
-
   <!-- a helper task for 'retro' -->
   <target name="vweave">
+    <!-- various bits used by the retroweaver tasks -->
+    <taskdef name="weave" classpathref="classpath"
+             classname="com.rc.retroweaver.ant.RetroWeaverTask"/>
+    <property name="inpre" value="${deploy.dir}/${app.name}"/>
+    <property name="outpre" value="${deploy.dir}/retro/${app.name}"/>
     <path id="retrocp">
       <pathelement location="/usr/local/jdk1.4/jre/lib/rt.jar"/>
       <fileset dir="lib" includes="**/*.jar"/>
diff --git a/tests/build.xml b/tests/build.xml
index 1124c595..f5daf7cd 100644
--- a/tests/build.xml
+++ b/tests/build.xml
@@ -15,7 +15,7 @@
   <path id="classpath">
     <pathelement location="${classes.dir}"/>
     <pathelement location="${vilya.classes.dir}"/>
-    <fileset dir="../lib" includes="**/*.jar"/>
+    <fileset dir="../${deploy.dir}/lib" includes="**/*.jar"/>
   </path>
 
   <!-- generates additional methods for distributed object classes -->