diff --git a/ChangeLog b/ChangeLog
index 3922ff89..0fd19176 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2007-01-05  Behdad Esfahbod  <behdad@gnome.org>
+
+	* module/Makefile: Correct $PWD usage, so make install works from
+	inside module/.
+
 2006-12-09  Soren Sandmann <sandmann@daimi.au.dk>
 
 	* module/sysprof-module.c: Add forgotten put_cpu_var(). 
diff --git a/module/Makefile b/module/Makefile
index b87e2a19..b36bb973 100644
--- a/module/Makefile
+++ b/module/Makefile
@@ -12,9 +12,9 @@ endif
 MODULE    := sysprof-module
 KDIR      := /lib/modules/$(shell uname -r)/build # /home/ssp/linux-2.6.19/
 INCLUDE   := -isystem $(KDIR)/include
-MODCFLAGS := -DMODULE -D__KERNEL__ -Wall ${INCLUDE}
+MODCFLAGS := -DMODULE -D__KERNEL__ -Wall $(INCLUDE)
 
-KMAKE	  := $(MAKE) -C $(KDIR) SUBDIRS=$(PWD)
+KMAKE	  := $(MAKE) -C $(KDIR) SUBDIRS=$$PWD
 
 modules: $(MODULE).o