diff --git a/Externals/Bochs_disasm/SConscript b/Externals/Bochs_disasm/SConscript
index a85995553c..709c00972d 100644
--- a/Externals/Bochs_disasm/SConscript
+++ b/Externals/Bochs_disasm/SConscript
@@ -19,4 +19,4 @@ env_bochs = env.Clone(
 	CXXFLAGS = env.filterWarnings(env['CXXFLAGS']),
 	)
 
-env_bochs.StaticLibrary("bdisasm", files)
+env_bochs.StaticLibrary(env['local_libs'] + "bdisasm", files)
diff --git a/Externals/LZO/SConscript b/Externals/LZO/SConscript
index 527d235409..3e7a277af7 100644
--- a/Externals/LZO/SConscript
+++ b/Externals/LZO/SConscript
@@ -10,4 +10,4 @@ env_lzo = env.Clone(
         CCFLAGS = env.filterWarnings(env['CCFLAGS']),
         CXXFLAGS = env.filterWarnings(env['CXXFLAGS']),
         )
-env_lzo.StaticLibrary("minilzo", files)
+env_lzo.StaticLibrary(env['local_libs'] + "minilzo", files)
diff --git a/SConstruct b/SConstruct
index 48eb953fcb..445342ab26 100644
--- a/SConstruct
+++ b/SConstruct
@@ -41,20 +41,21 @@ cppDefines = [
     'GCC_HASCLASSVISIBILITY',
     ]
 
+basedir = os.getcwd()+ '/'
+
 include_paths = [
-    '../../../Core/Common/Src',
-    '../../../Core/DiscIO/Src',
-    '../../../PluginSpecs',
-    '../../../',
-    '../../../Core/Core/Src',
-    '../../../Core/DebuggerWX/Src',
-    '../../../../Externals/Bochs_disasm',
-    '../../../../Externals/LZO',
-    '../../../../Externals/WiiUseSrc/Src',
-    '../../../Core/VideoCommon/Src',
-    '../../../Core/InputCommon/Src',
-    '../../../Core/AudioCommon/Src',
-    '../../../Core/DSPCore/Src',
+    basedir + 'Source/Core/Common/Src',
+    basedir + 'Source/Core/DiscIO/Src',
+    basedir + 'Source/PluginSpecs',
+    basedir + 'Source/Core/Core/Src',
+    basedir + 'Source/Core/DebuggerWX/Src',
+    basedir + 'Externals/Bochs_disasm',
+    basedir + 'Externals/LZO',
+    basedir + 'Externals/WiiUseSrc/Src',
+    basedir + 'Source/Core/VideoCommon/Src',
+    basedir + 'Source/Core/InputCommon/Src',
+    basedir + 'Source/Core/AudioCommon/Src',
+    basedir + 'Source/Core/DSPCore/Src',
     ]
 
 dirs = [
@@ -68,7 +69,7 @@ dirs = [
     'Source/Core/InputCommon/Src',
     'Source/Core/AudioCommon/Src',
     'Source/Core/DSPCore/Src',
-    'Source/DSPTool/',
+    'Source/DSPTool/Src',
     'Source/Plugins/Plugin_VideoOGL/Src',
     'Source/Plugins/Plugin_DSP_HLE/Src',
     'Source/Plugins/Plugin_DSP_LLE/Src',
@@ -92,8 +93,6 @@ if sys.platform == 'darwin':
                 writePlist(properties, str(dstNode))
     builders['Plist'] = Builder(action = createPlist)
 
-lib_paths = include_paths
-
 # handle command line options
 vars = Variables('args.cache')
 
@@ -122,9 +121,9 @@ vars.AddVariables(
 if sys.platform == 'win32':
     env = Environment(
         CPPPATH = include_paths,
-        LIBPATH = lib_paths,
         RPATH = [],
         LIBS = [],
+        LIBPATH = [],
         tools = [ 'mingw' ],
         variables = vars,
         ENV = os.environ,
@@ -138,10 +137,10 @@ if sys.platform == 'win32':
 else:
     env = Environment(
         CPPPATH = include_paths,
-        LIBPATH = lib_paths,
         RPATH = [],
         LIBS = [],
-	    variables = vars,
+        LIBPATH = [],
+        variables = vars,
         ENV = {
             'PATH' : os.environ['PATH'],
             'HOME' : os.environ['HOME']
@@ -215,8 +214,11 @@ tests = {'CheckWXConfig' : wxconfig.CheckWXConfig,
          'CheckPortaudio' : utils.CheckPortaudio,
          }
 
-build_dir = os.path.join('Build', platform.system() + '-' + platform.machine() + '-' + env['flavor'] + os.sep)
-VariantDir(build_dir, '.', duplicate=0)
+#object files
+env['build_dir'] = os.path.join(basedir, 'Build', platform.system() + '-' + platform.machine() + '-' + env['flavor'] + os.sep)
+
+
+VariantDir(env['build_dir'], '.', duplicate=0)
 
 conf = env.Configure(custom_tests = tests, 
                      config_h="Source/Core/Common/Src/Config.h")
@@ -342,7 +344,7 @@ else:
 env.AddMethod(utils.filterWarnings)
 
 # Where do we run from
-env['base_dir'] = os.getcwd()+ '/';
+env['base_dir'] = os.getcwd()+ '/'
 
 # install paths
 extra=''
@@ -367,6 +369,10 @@ env['data_dir'] = env['prefix']
 
 env['RPATH'].append(env['libs_dir'])
 
+# static libs goes here
+env['local_libs'] =  env['build_dir'] + os.sep + 'libs' + os.sep
+
+env['LIBPATH'].append(env['local_libs']) 
 env['LIBPATH'].append(env['libs_dir']) 
 
 
@@ -390,7 +396,7 @@ Export('env')
 for subdir in dirs:
     SConscript(
         subdir + os.sep + 'SConscript',
-        variant_dir = build_dir + subdir + os.sep,
+        variant_dir = env[ 'build_dir' ] + subdir + os.sep,
         duplicate=0
         )
 
diff --git a/Source/Core/AudioCommon/Src/SConscript b/Source/Core/AudioCommon/Src/SConscript
index e1282356e8..4b00e5631e 100644
--- a/Source/Core/AudioCommon/Src/SConscript
+++ b/Source/Core/AudioCommon/Src/SConscript
@@ -18,4 +18,4 @@ if acenv['HAVE_OPENAL']:
 if acenv['HAVE_AO']:
     files += [ 'AOSoundStream.cpp' ]
     
-acenv.StaticLibrary('audiocommon', files)
+acenv.StaticLibrary(env['local_libs'] + 'audiocommon', files)
diff --git a/Source/Core/Common/Src/SConscript b/Source/Core/Common/Src/SConscript
index 001d77e9a9..6b3551d99c 100644
--- a/Source/Core/Common/Src/SConscript
+++ b/Source/Core/Common/Src/SConscript
@@ -42,4 +42,4 @@ if sys.platform == 'win32':
 
 env_common = env.Clone()
 env_common.Append(CXXFLAGS = [ '-fPIC' ])
-env_common.StaticLibrary("common", files)
+env_common.StaticLibrary(env['local_libs'] + "common", files)
diff --git a/Source/Core/Core/Src/SConscript b/Source/Core/Core/Src/SConscript
index 8d3b274c7c..cd894f7b6d 100644
--- a/Source/Core/Core/Src/SConscript
+++ b/Source/Core/Core/Src/SConscript
@@ -129,4 +129,4 @@ libs = [
 	]
 
 env_core = env.Clone();
-env_core.StaticLibrary('core', files, LIBS=libs)
+env_core.StaticLibrary(env['local_libs'] + 'core', files, LIBS=libs)
diff --git a/Source/Core/DSPCore/Src/SConscript b/Source/Core/DSPCore/Src/SConscript
index 31bf7c0f51..49346fc012 100644
--- a/Source/Core/DSPCore/Src/SConscript
+++ b/Source/Core/DSPCore/Src/SConscript
@@ -3,22 +3,24 @@
 Import('env')
 
 files = [
-	"disassemble.cpp",
-	"gdsp_aram.cpp",
-	"gdsp_condition_codes.cpp",
-	"gdsp_ext_op.cpp",
-	"gdsp_interface.cpp",
-	"gdsp_interpreter.cpp",
-	"gdsp_memory.cpp",
-	"gdsp_registers.cpp",
-	"DSPAnalyzer.cpp",
-	"DSPInterpreter.cpp",
-	"DSPJit.cpp",
-#	"DSPHost.cpp",
-	"DSPTables.cpp",
+    "assemble.cpp",
+    "disassemble.cpp",
+    "gdsp_aram.cpp",
+    "gdsp_condition_codes.cpp",
+    "gdsp_ext_op.cpp",
+    "gdsp_interface.cpp",
+    "gdsp_interpreter.cpp",
+    "gdsp_memory.cpp",
+    "gdsp_registers.cpp",
+    "DSPAnalyzer.cpp",
+    "DSPInterpreter.cpp",
+    "DSPJit.cpp",
+    "DSPCodeUtil.cpp",
+    #	"DSPHost.cpp",
+    "DSPTables.cpp",
     ]
 
 acenv = env.Clone()
 acenv.Append(CXXFLAGS = [ '-fPIC' ])
 
-acenv.StaticLibrary('dspcore', files)
+acenv.StaticLibrary(env['local_libs'] + 'dspcore', files, LIBS = [ 'common'] )
diff --git a/Source/Core/DebuggerWX/Src/SConscript b/Source/Core/DebuggerWX/Src/SConscript
index 2eeb171a3e..75b784cad7 100644
--- a/Source/Core/DebuggerWX/Src/SConscript
+++ b/Source/Core/DebuggerWX/Src/SConscript
@@ -34,4 +34,4 @@ libs = [
     'common'
 ]
 
-wxenv.StaticLibrary("debwx", files, LIBS = libs)
+wxenv.StaticLibrary(env['local_libs'] + "debwx", files, LIBS = libs)
diff --git a/Source/Core/DiscIO/Src/SConscript b/Source/Core/DiscIO/Src/SConscript
index 384df46f5b..d02cc6c4e7 100644
--- a/Source/Core/DiscIO/Src/SConscript
+++ b/Source/Core/DiscIO/Src/SConscript
@@ -24,4 +24,4 @@ files = [
 libs = [
 	'common'
 	]
-env.StaticLibrary('discio', files, LIBS = libs)
+env.StaticLibrary(env['local_libs'] + 'discio', files, LIBS = libs)
diff --git a/Source/Core/InputCommon/Src/SConscript b/Source/Core/InputCommon/Src/SConscript
index 2c33e85cbc..c5059b3222 100644
--- a/Source/Core/InputCommon/Src/SConscript
+++ b/Source/Core/InputCommon/Src/SConscript
@@ -11,4 +11,4 @@ files = [
 
 env_inputcommon = env.Clone()
 env_inputcommon.Append(CXXFLAGS = [ '-fPIC' ])
-env_inputcommon.StaticLibrary("inputcommon", files)
+env_inputcommon.StaticLibrary(env['local_libs'] + "inputcommon", files)
diff --git a/Source/Core/VideoCommon/Src/SConscript b/Source/Core/VideoCommon/Src/SConscript
index 1d00101deb..9f0a42c47b 100644
--- a/Source/Core/VideoCommon/Src/SConscript
+++ b/Source/Core/VideoCommon/Src/SConscript
@@ -34,4 +34,4 @@ files = [
 
 env_common = env.Clone()
 env_common.Append(CXXFLAGS = [ '-fPIC' ])
-env_common.StaticLibrary("videocommon", files)
+env_common.StaticLibrary(env['local_libs'] + "videocommon", files)
diff --git a/Source/DSPTool/Src/SConscript b/Source/DSPTool/Src/SConscript
index 74ca19f354..c862ef8b2b 100644
--- a/Source/DSPTool/Src/SConscript
+++ b/Source/DSPTool/Src/SConscript
@@ -9,8 +9,8 @@ files = [
     ]
 
 libs = [
-    'common',
     'dspcore',
+    'common',
 ]