diff --git a/OpenSim/Framework/AssetConfig.cs b/OpenSim/Framework/AssetConfig.cs
index 9ae98d773a..cc0217f0a5 100644
--- a/OpenSim/Framework/AssetConfig.cs
+++ b/OpenSim/Framework/AssetConfig.cs
@@ -40,6 +40,7 @@ namespace OpenSim.Framework
         public string DatabaseConnect = String.Empty;
         public string DatabaseProvider = String.Empty;
         public uint HttpPort = DefaultHttpPort;
+        public string AssetSetsLocation = string.Empty;
 
         public AssetConfig(string description, string filename)
         {
@@ -58,6 +59,10 @@ namespace OpenSim.Framework
 
             configMember.addConfigurationOption("http_port", ConfigurationOption.ConfigurationTypes.TYPE_UINT32,
                                                 "Http Listener port", DefaultHttpPort.ToString(), false);
+
+            configMember.addConfigurationOption("assetset_location", ConfigurationOption.ConfigurationTypes.TYPE_STRING,
+                                        "Location of 'AssetSets.xml'",
+                                        string.Format(".{0}assets{0}AssetSets.xml", System.IO.Path.DirectorySeparatorChar), false);
         }
 
         public bool handleIncomingConfiguration(string configuration_key, object configuration_result)
@@ -70,6 +75,9 @@ namespace OpenSim.Framework
                 case "database_connect":
                     DatabaseConnect = (string) configuration_result;
                     break;
+                case "assetset_location":
+                    AssetSetsLocation = (string) configuration_result;
+                    break;
                 case "http_port":
                     HttpPort = (uint) configuration_result;
                     break;
@@ -78,4 +86,4 @@ namespace OpenSim.Framework
             return true;
         }
     }
-}
\ No newline at end of file
+}
diff --git a/OpenSim/Framework/AssetLoader/Filesystem/AssetLoaderFileSystem.cs b/OpenSim/Framework/AssetLoader/Filesystem/AssetLoaderFileSystem.cs
index 6fe9fb4863..9d0f697882 100644
--- a/OpenSim/Framework/AssetLoader/Filesystem/AssetLoaderFileSystem.cs
+++ b/OpenSim/Framework/AssetLoader/Filesystem/AssetLoaderFileSystem.cs
@@ -86,12 +86,6 @@ namespace OpenSim.Framework.AssetLoader.Filesystem
             }
         }
 
-        public void ForEachDefaultXmlAsset(Action<AssetBase> action)
-        {
-            string assetSetFilename = Path.Combine(Util.assetsDir(), "AssetSets.xml");
-
-            ForEachDefaultXmlAsset(assetSetFilename, action);
-        }
 
         public void ForEachDefaultXmlAsset(string assetSetFilename, Action<AssetBase> action)
         {
@@ -99,16 +93,18 @@ namespace OpenSim.Framework.AssetLoader.Filesystem
             if (File.Exists(assetSetFilename))
             {
                 string assetSetPath = "ERROR";
-
+                string assetRootPath = "";
                 try
                 {
                     XmlConfigSource source = new XmlConfigSource(assetSetFilename);
+                    assetRootPath = Path.GetFullPath(source.SavePath);
+                    assetRootPath = Path.GetDirectoryName(assetRootPath);
 
                     for (int i = 0; i < source.Configs.Count; i++)
                     {
                         assetSetPath = source.Configs[i].GetString("file", String.Empty);
 
-                        LoadXmlAssetSet(Path.Combine(Util.assetsDir(), assetSetPath), assets);
+                        LoadXmlAssetSet(Path.Combine(assetRootPath, assetSetPath), assets);
                     }
                 }
                 catch (XmlException e)
@@ -118,7 +114,7 @@ namespace OpenSim.Framework.AssetLoader.Filesystem
             }
             else
             {
-                m_log.Error("[ASSETS]: Asset set control file assets/AssetSets.xml does not exist!  No assets loaded.");
+                m_log.ErrorFormat("[ASSETS]: Asset set control file {0} does not exist!  No assets loaded.", assetSetFilename);
             }
 
             assets.ForEach(action);
diff --git a/OpenSim/Framework/Communications/Cache/AssetServerBase.cs b/OpenSim/Framework/Communications/Cache/AssetServerBase.cs
index a289fb79a5..137bde917c 100644
--- a/OpenSim/Framework/Communications/Cache/AssetServerBase.cs
+++ b/OpenSim/Framework/Communications/Cache/AssetServerBase.cs
@@ -106,11 +106,11 @@ namespace OpenSim.Framework.Communications.Cache
             }
         }
 
-        public virtual void LoadDefaultAssets()
+        public virtual void LoadDefaultAssets(string pAssetSetsXml)
         {
             m_log.Info("[ASSET SERVER]: Setting up asset database");
 
-            assetLoader.ForEachDefaultXmlAsset(StoreAsset);
+            assetLoader.ForEachDefaultXmlAsset(pAssetSetsXml, StoreAsset);
         }
 
         public AssetServerBase()
diff --git a/OpenSim/Framework/Communications/Cache/LibraryRootFolder.cs b/OpenSim/Framework/Communications/Cache/LibraryRootFolder.cs
index cf3490b4fe..0b05adf554 100644
--- a/OpenSim/Framework/Communications/Cache/LibraryRootFolder.cs
+++ b/OpenSim/Framework/Communications/Cache/LibraryRootFolder.cs
@@ -52,11 +52,9 @@ namespace OpenSim.Framework.Communications.Cache
         /// </summary>
         protected Dictionary<UUID, InventoryFolderImpl> libraryFolders
             = new Dictionary<UUID, InventoryFolderImpl>();
-
-        public LibraryRootFolder()
+        
+        public LibraryRootFolder(string pLibrariesLocation)
         {
-            m_log.Info("[LIBRARY INVENTORY]: Loading library inventory");
-
             Owner = libOwner;
             ID = new UUID("00000112-000f-0000-0000-000100bba000");
             Name = "OpenSim Library";
@@ -66,7 +64,7 @@ namespace OpenSim.Framework.Communications.Cache
 
             libraryFolders.Add(ID, this);
 
-            LoadLibraries(Path.Combine(Util.inventoryDir(), "Libraries.xml"));
+            LoadLibraries(pLibrariesLocation);
         }
 
         public InventoryItemBase CreateItem(UUID inventoryID, UUID assetID, string name, string description,
@@ -96,9 +94,7 @@ namespace OpenSim.Framework.Communications.Cache
         /// <param name="assets"></param>
         protected void LoadLibraries(string librariesControlPath)
         {
-            m_log.InfoFormat(
-                "[LIBRARY INVENTORY]: Loading libraries control file {0}", librariesControlPath);
-
+            m_log.InfoFormat("[LIBRARY INVENTORY]: Loading library control file {0}", librariesControlPath);
             LoadFromFile(librariesControlPath, "Libraries control", ReadLibraryFromConfig);
         }
 
@@ -106,17 +102,18 @@ namespace OpenSim.Framework.Communications.Cache
         /// Read a library set from config
         /// </summary>
         /// <param name="config"></param>
-        protected void ReadLibraryFromConfig(IConfig config)
+        protected void ReadLibraryFromConfig(IConfig config, string path)
         {
+            string basePath = Path.GetDirectoryName(path);
             string foldersPath
                 = Path.Combine(
-                    Util.inventoryDir(), config.GetString("foldersFile", String.Empty));
+                    basePath, config.GetString("foldersFile", String.Empty));
 
             LoadFromFile(foldersPath, "Library folders", ReadFolderFromConfig);
 
             string itemsPath
                 = Path.Combine(
-                    Util.inventoryDir(), config.GetString("itemsFile", String.Empty));
+                    basePath, config.GetString("itemsFile", String.Empty));
 
             LoadFromFile(itemsPath, "Library items", ReadItemFromConfig);
         }
@@ -125,7 +122,7 @@ namespace OpenSim.Framework.Communications.Cache
         /// Read a library inventory folder from a loaded configuration
         /// </summary>
         /// <param name="source"></param>
-        private void ReadFolderFromConfig(IConfig config)
+        private void ReadFolderFromConfig(IConfig config, string path)
         {
             InventoryFolderImpl folderInfo = new InventoryFolderImpl();
 
@@ -158,7 +155,7 @@ namespace OpenSim.Framework.Communications.Cache
         /// Read a library inventory item metadata from a loaded configuration
         /// </summary>
         /// <param name="source"></param>
-        private void ReadItemFromConfig(IConfig config)
+        private void ReadItemFromConfig(IConfig config, string path)
         {
             InventoryItemBase item = new InventoryItemBase();
             item.Owner = libOwner;
@@ -195,7 +192,7 @@ namespace OpenSim.Framework.Communications.Cache
             }
         }
 
-        private delegate void ConfigAction(IConfig config);
+        private delegate void ConfigAction(IConfig config, string path);
 
         /// <summary>
         /// Load the given configuration at a path and perform an action on each Config contained within it
@@ -213,7 +210,7 @@ namespace OpenSim.Framework.Communications.Cache
 
                     for (int i = 0; i < source.Configs.Count; i++)
                     {
-                        action(source.Configs[i]);
+                        action(source.Configs[i], path);
                     }
                 }
                 catch (XmlException e)
diff --git a/OpenSim/Framework/ConfigSettings.cs b/OpenSim/Framework/ConfigSettings.cs
index 02b8465f1e..3d66311168 100644
--- a/OpenSim/Framework/ConfigSettings.cs
+++ b/OpenSim/Framework/ConfigSettings.cs
@@ -179,5 +179,30 @@ namespace OpenSim.Framework
             get { return m_dumpAssetsToFile; }
             set { m_dumpAssetsToFile = value; }
         }
+
+        protected string m_librariesXMLFile;
+        public string LibrariesXMLFile
+        {
+            get
+            {
+                return m_librariesXMLFile;
+            }
+            set
+            {
+                m_librariesXMLFile = value;
+            }
+        }
+        protected string m_assetSetsXMLFile;
+        public string AssetSetsXMLFile
+        {
+            get
+            {
+                return m_assetSetsXMLFile;
+            }
+            set
+            {
+                m_assetSetsXMLFile = value;
+            }
+        }
     }
 }
diff --git a/OpenSim/Framework/IAssetLoader.cs b/OpenSim/Framework/IAssetLoader.cs
index 6aa71d35fb..3ecc051cbc 100644
--- a/OpenSim/Framework/IAssetLoader.cs
+++ b/OpenSim/Framework/IAssetLoader.cs
@@ -31,7 +31,6 @@ namespace OpenSim.Framework
 {
     public interface IAssetLoader
     {
-        void ForEachDefaultXmlAsset(Action<AssetBase> action);
         void ForEachDefaultXmlAsset(string assetSetFilename, Action<AssetBase> action);
     }
 }
\ No newline at end of file
diff --git a/OpenSim/Framework/UserConfig.cs b/OpenSim/Framework/UserConfig.cs
index 87ba271465..cc048b73ea 100644
--- a/OpenSim/Framework/UserConfig.cs
+++ b/OpenSim/Framework/UserConfig.cs
@@ -47,6 +47,7 @@ namespace OpenSim.Framework
         public uint HttpPort = DefaultHttpPort;
         public bool HttpSSL = DefaultHttpSSL;
         public uint DefaultUserLevel = 0;
+        public string LibraryXmlfile = "";
 
         private Uri m_inventoryUrl;
 
@@ -109,6 +110,11 @@ namespace OpenSim.Framework
                                                 "Default Inventory Server URI",
                                                 "http://127.0.0.1:" + InventoryConfig.DefaultHttpPort + "/",
                                                 false);
+            configMember.addConfigurationOption("library_location",
+                                                ConfigurationOption.ConfigurationTypes.TYPE_STRING_NOT_EMPTY,
+                                                "Path to library control file",
+                                                string.Format(".{0}inventory{0}Libraries.xml", System.IO.Path.DirectorySeparatorChar), false);            
+            
             configMember.addConfigurationOption("database_provider", ConfigurationOption.ConfigurationTypes.TYPE_STRING,
                                                 "DLL for database provider", "OpenSim.Data.MySQL.dll", false);
             configMember.addConfigurationOption("database_connect", ConfigurationOption.ConfigurationTypes.TYPE_STRING,
@@ -173,7 +179,10 @@ namespace OpenSim.Framework
 
                 case "default_loginLevel":
                     DefaultUserLevel = (uint)configuration_result;
-                     break;
+                    break;
+                case "library_location":
+                    LibraryXmlfile = (string)configuration_result;
+                    break;
             }
 
             return true;
diff --git a/OpenSim/Grid/AssetServer/Main.cs b/OpenSim/Grid/AssetServer/Main.cs
index 6d1028bbc4..72300b5dfc 100644
--- a/OpenSim/Grid/AssetServer/Main.cs
+++ b/OpenSim/Grid/AssetServer/Main.cs
@@ -87,8 +87,8 @@ namespace OpenSim.Grid.AssetServer
             m_log.Info("[ASSET]: Setting up asset DB");
             setupDB(config);
 
-            m_log.Info("[ASSET]: Loading default asset set..");
-            LoadDefaultAssets();
+            m_log.Info("[ASSET]: Loading default asset set from '" + config.AssetSetsLocation + "'");
+            LoadDefaultAssets(config.AssetSetsLocation);
 
             m_log.Info("[ASSET]: Starting HTTP process");
             m_httpServer = new BaseHttpServer(config.HttpPort);
@@ -142,9 +142,9 @@ namespace OpenSim.Grid.AssetServer
             }
         }
 
-        public void LoadDefaultAssets()
+        public void LoadDefaultAssets(string pAssetSetsLocation)
         {
-            assetLoader.ForEachDefaultXmlAsset(StoreAsset);
+            assetLoader.ForEachDefaultXmlAsset(pAssetSetsLocation, StoreAsset);
         }
 
         protected void StoreAsset(AssetBase asset)
diff --git a/OpenSim/Grid/UserServer/Main.cs b/OpenSim/Grid/UserServer/Main.cs
index f688e4c2eb..324675712f 100644
--- a/OpenSim/Grid/UserServer/Main.cs
+++ b/OpenSim/Grid/UserServer/Main.cs
@@ -137,7 +137,7 @@ namespace OpenSim.Grid.UserServer
         protected virtual void StartupLoginService(IInterServiceInventoryServices inventoryService)
         {
             m_loginService = new UserLoginService(
-                m_userManager, inventoryService, new LibraryRootFolder(), Cfg, Cfg.DefaultStartupMsg);
+                m_userManager, inventoryService, new LibraryRootFolder(Cfg.LibraryXmlfile), Cfg, Cfg.DefaultStartupMsg);
         }
 
         protected virtual void AddHttpHandlers()
diff --git a/OpenSim/Region/Application/ConfigurationLoader.cs b/OpenSim/Region/Application/ConfigurationLoader.cs
index bfaf5af7dc..12cb0ea070 100644
--- a/OpenSim/Region/Application/ConfigurationLoader.cs
+++ b/OpenSim/Region/Application/ConfigurationLoader.cs
@@ -43,8 +43,7 @@ namespace OpenSim
         protected NetworkServersInfo m_networkServersInfo;
 
         public ConfigurationLoader()
-        {
-           
+        {           
         }
 
         public OpenSimConfigSource LoadConfigSettings(IConfigSource configSource, out ConfigSettings configSettings, out NetworkServersInfo networkInfo)
@@ -149,7 +148,9 @@ namespace OpenSim
                 config.Set("userDatabase_plugin", "OpenSim.Data.SQLite.dll");
                 config.Set("user_source", "");
                 config.Set("asset_plugin", "OpenSim.Data.SQLite.dll");
-                config.Set("asset_source", "");
+                config.Set("asset_source", "");                
+                config.Set("LibrariesXMLFile", string.Format(".{0}inventory{0}Libraries.xml", Path.DirectorySeparatorChar));
+                config.Set("AssetSetsXMLFile", string.Format(".{0}assets{0}AssetSets.xml", Path.DirectorySeparatorChar));
                 config.Set("dump_assets_to_file", false);
             }
 
@@ -186,7 +187,6 @@ namespace OpenSim
                 m_configSettings.Standalone = !startupConfig.GetBoolean("gridmode", false);
                 m_configSettings.PhysicsEngine = startupConfig.GetString("physics");
                 m_configSettings.MeshEngineName = startupConfig.GetString("meshing");
-
                 m_configSettings.PhysicalPrim = startupConfig.GetBoolean("physical_prim", true);
 
                 m_configSettings.See_into_region_from_neighbor = startupConfig.GetBoolean("see_into_this_sim_from_neighbor", true);
@@ -218,7 +218,10 @@ namespace OpenSim
                 m_configSettings.StandaloneAssetPlugin = standaloneConfig.GetString("asset_plugin");
                 m_configSettings.StandaloneAssetSource = standaloneConfig.GetString("asset_source");
 
-                m_configSettings.DumpAssetsToFile = standaloneConfig.GetBoolean("dump_assets_to_file", false);
+                m_configSettings.LibrariesXMLFile = standaloneConfig.GetString("LibrariesXMLFile");
+                m_configSettings.AssetSetsXMLFile = standaloneConfig.GetString("AssetSetsXMLFile");
+                
+                m_configSettings.DumpAssetsToFile = standaloneConfig.GetBoolean("dump_assets_to_file", false);                                
             }
 
             m_networkServersInfo.loadFromConfiguration(m_config.Source);
diff --git a/OpenSim/Region/Application/OpenSimBase.cs b/OpenSim/Region/Application/OpenSimBase.cs
index 832043d441..9031a8ba81 100644
--- a/OpenSim/Region/Application/OpenSimBase.cs
+++ b/OpenSim/Region/Application/OpenSimBase.cs
@@ -178,7 +178,7 @@ namespace OpenSim
             
             m_stats = StatsManager.StartCollectingSimExtraStats();
             
-            LibraryRootFolder libraryRootFolder = new LibraryRootFolder();
+            LibraryRootFolder libraryRootFolder = new LibraryRootFolder(m_configSettings.LibrariesXMLFile);
 
             // StandAlone mode? is determined by !startupConfig.GetBoolean("gridmode", false)
             if (m_configSettings.Standalone)
@@ -291,7 +291,7 @@ namespace OpenSim
             else
             {
                 SQLAssetServer sqlAssetServer = new SQLAssetServer(m_configSettings.StandaloneAssetPlugin, m_configSettings.StandaloneAssetSource);
-                sqlAssetServer.LoadDefaultAssets();
+                sqlAssetServer.LoadDefaultAssets(m_configSettings.AssetSetsXMLFile);
                 assetServer = sqlAssetServer;
             }
 
diff --git a/bin/OpenSim.ini.example b/bin/OpenSim.ini.example
index bd48f8c82a..cc117ad0ae 100644
--- a/bin/OpenSim.ini.example
+++ b/bin/OpenSim.ini.example
@@ -178,7 +178,7 @@
 
     ;WorldMapModule = "WorldMap"
     ;MapImageModule = "MapImageModule"
-
+	
 
 [StandAlone]
     accounts_authenticate = true
@@ -225,6 +225,14 @@
     ; User Source MySQL example
     ;user_source = "Data Source=localhost;Database=opensim;User ID=opensim;Password=****;"
 
+    ; Specifies the location and filename of the default inventory library control file.  The path can be relative or absolute
+    ; Default is ./inventory/Libraries.xml
+    ;LibrariesXMLFile="./inventory/Libraries.xml"
+    
+    ; Specifies the location and filename of the inventory library assets control file.  The path can be relative or absolute
+    ; Setting is optional. Default is ./assets/AssetSets.xml
+    ;AssetSetsXMLFile="./assets/AssetSets.xml"
+
     dump_assets_to_file = false