diff --git a/ant/src/plugin-resources/templates/build.jelly b/ant/src/plugin-resources/templates/build.jelly
index 33c61629..64b800f4 100644
--- a/ant/src/plugin-resources/templates/build.jelly
+++ b/ant/src/plugin-resources/templates/build.jelly
@@ -42,15 +42,21 @@
 
 <project name="${pom.artifactId}" default="jar" basedir=".">
   
-  <property name="defaulttargetdir" value="${maven.build.dir}"/> 
-  <property name="libdir" value="${maven.build.dir}/lib" />
-  <property name="classesdir" value="${maven.build.dest}" />
-  <property name="testclassesdir" value="${maven.test.dest}" />
+  <j:set var="baseDirFile" value="${pom.file.canonicalFile.parentFile}"/>
+  <maven:makeRelativePath basedir="${baseDirFile}" path="${maven.build.dir}" separator="/" var="defaulttargetdir"/>
+  <property name="defaulttargetdir" value="${defaulttargetdir}"/> 
+  <property name="libdir" value="${defaulttargetdir}/lib" />
+
+  <maven:makeRelativePath basedir="${baseDirFile}" path="${maven.build.dest}" separator="/" var="classesdir"/>
+  <property name="classesdir" value="${classesdir}" />
 
   <j:if test="${unitTestSourcesPresent == 'true'}">
-    <maven:pluginVar plugin="maven-test-plugin" property="maven.test.dest" var="testclassesdir" />
+    <maven:pluginVar plugin="maven-test-plugin" property="maven.test.dest" var="abstestclassesdir" />
+    <maven:makeRelativePath basedir="${baseDirFile}" path="${abstestclassesdir}" separator="/" var="testclassesdir"/>
     <property name="testclassesdir" value="${testclassesdir}" />
-    <maven:pluginVar plugin="maven-test-plugin" property="maven.test.reportsDirectory" var="testreportdir" />
+    
+    <maven:pluginVar plugin="maven-test-plugin" property="maven.test.reportsDirectory" var="abstestreportdir" />
+    <maven:makeRelativePath basedir="${baseDirFile}" path="${abstestreportdir}" separator="/" var="testreportdir"/>
     <property name="testreportdir" value="${testreportdir}" />
   </j:if>
 
diff --git a/ant/xdocs/changes.xml b/ant/xdocs/changes.xml
index 22eca54e..f803e514 100644
--- a/ant/xdocs/changes.xml
+++ b/ant/xdocs/changes.xml
@@ -25,6 +25,7 @@
   </properties>
   <body>
     <release version="1.8-SNAPSHOT" date="In CVS">
+      <action dev="carlos" type="fix" issue="MPANT-16" due-to="Brent Worden" due-to-email="brent@worden.org">Use relative paths in directory properties.</action>
       <action dev="aheritier" type="update">Run Junit only if present in ANT (display a warning otherwise).</action>
     </release>
     <release version="1.7" date="2004-05-15">
