Index: demo.admin.inc
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/demo/demo.admin.inc,v
retrieving revision 1.1.2.9
diff -u -p -r1.1.2.9 demo.admin.inc
--- demo.admin.inc	16 May 2009 17:34:03 -0000	1.1.2.9
+++ demo.admin.inc	16 May 2009 17:47:42 -0000
@@ -307,7 +307,7 @@ function demo_get_fileconfig($filename =
   // Append site name if it is not included in file_directory_path() and if not
   // storing files in sites/all/files.
   $fileconfig['site'] = str_replace('sites', '', conf_path());
-  if (strpos(file_directory_path(), conf_path()) === FALSE && strpos(file_directory_path(), '/all/') === FALSE) {
+  if (strpos($fileconfig['path'], conf_path()) === FALSE && strpos($fileconfig['path'], '/all/') === FALSE) {
     $fileconfig['dumppath'] .= $fileconfig['site'];
   }
   
Index: demo.install
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/demo/demo.install,v
retrieving revision 1.4.2.2
diff -u -p -r1.4.2.2 demo.install
--- demo.install	16 May 2009 17:34:03 -0000	1.4.2.2
+++ demo.install	16 May 2009 17:47:56 -0000
@@ -15,8 +15,8 @@ function demo_update_6100() {
   // If file_directory_path() contains the site name already or is
   // 'sites/all/files', create new folder without site name and move existing
   // files to the new location.
-  if (strpos(file_directory_path(), conf_path()) !== FALSE || strpos(file_directory_path(), '/all/') !== FALSE) {
-    $new_path = file_directory_path() .'/demo';
+  $new_path = variable_get('demo_dump_path', file_directory_path() .'/demo');
+  if (strpos($new_path, conf_path()) !== FALSE || strpos($new_path, '/all/') !== FALSE) {
     $old_path = $new_path . str_replace('sites', '', conf_path());
     if ($new_path != $old_path && file_check_directory($old_path)) {
       // Fetch list of available files.