diff --git a/.gitignore b/.gitignore
index 4645aa431..e9683996c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -23,6 +23,7 @@
 bindtests.tmp
 cscope.out
 .deps
+.dirstamp
 .gdb_history
 .libs
 Makefile
diff --git a/builder/Makefile.am b/builder/Makefile.am
index 597b943e3..f48efb03f 100644
--- a/builder/Makefile.am
+++ b/builder/Makefile.am
@@ -69,13 +69,13 @@ SOURCES_ML = \
 	builder.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/fsync-c.c \
-	$(top_srcdir)/mllib/uri-c.c \
-	$(top_srcdir)/mllib/mkdtemp-c.c \
-	$(top_srcdir)/customize/perl_edit-c.c \
-	$(top_srcdir)/customize/crypt-c.c \
-	$(top_srcdir)/fish/uri.c \
-	$(top_srcdir)/fish/file-edit.c \
+	../mllib/fsync-c.c \
+	../mllib/uri-c.c \
+	../mllib/mkdtemp-c.c \
+	../customize/perl_edit-c.c \
+	../customize/crypt-c.c \
+	../fish/uri.c \
+	../fish/file-edit.c \
 	index-scan.c \
 	index-struct.c \
 	index-parse.c \
diff --git a/configure.ac b/configure.ac
index 49a52f3d2..d54ce7da0 100644
--- a/configure.ac
+++ b/configure.ac
@@ -47,7 +47,7 @@ m4_define([serial_tests], [
                      }'
     ])
 ])
-AM_INIT_AUTOMAKE(foreign serial_tests) dnl NB: Do not [quote] this parameter.
+AM_INIT_AUTOMAKE(foreign serial_tests subdir-objects) dnl NB: Do not [quote] this parameter.
 
 m4_ifndef([AM_SILENT_RULES], [m4_define([AM_SILENT_RULES],[])])
 AM_SILENT_RULES([yes]) # make --enable-silent-rules the default.
diff --git a/customize/Makefile.am b/customize/Makefile.am
index 1974b8095..6e876a426 100644
--- a/customize/Makefile.am
+++ b/customize/Makefile.am
@@ -65,10 +65,10 @@ SOURCES_ML = \
 	customize_main.ml
 
 SOURCES_C = \
-	$(top_srcdir)/fish/uri.c \
-	$(top_srcdir)/fish/file-edit.c \
-	$(top_srcdir)/fish/file-edit.h \
-	$(top_srcdir)/mllib/uri-c.c \
+	../fish/uri.c \
+	../fish/file-edit.c \
+	../fish/file-edit.h \
+	../mllib/uri-c.c \
 	crypt-c.c \
 	perl_edit-c.c
 
diff --git a/dib/Makefile.am b/dib/Makefile.am
index 8932e64ae..0a7975ce0 100644
--- a/dib/Makefile.am
+++ b/dib/Makefile.am
@@ -30,7 +30,7 @@ SOURCES_ML = \
 	dib.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/mkdtemp-c.c
+	../mllib/mkdtemp-c.c
 
 bin_PROGRAMS =
 
diff --git a/get-kernel/Makefile.am b/get-kernel/Makefile.am
index f21712884..a4a23a4a9 100644
--- a/get-kernel/Makefile.am
+++ b/get-kernel/Makefile.am
@@ -27,8 +27,8 @@ SOURCES_ML = \
 	get_kernel.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/uri-c.c \
-	$(top_srcdir)/fish/uri.c
+	../mllib/uri-c.c \
+	../fish/uri.c
 
 man_MANS =
 noinst_DATA =
diff --git a/mllib/Makefile.am b/mllib/Makefile.am
index 272c9817d..39f1b338c 100644
--- a/mllib/Makefile.am
+++ b/mllib/Makefile.am
@@ -50,8 +50,8 @@ SOURCES_ML = \
 	JSON.ml
 
 SOURCES_C = \
-	$(top_srcdir)/fish/progress.c \
-	$(top_srcdir)/fish/uri.c \
+	../fish/progress.c \
+	../fish/uri.c \
 	fsync-c.c \
 	mkdtemp-c.c \
 	progress-c.c \
diff --git a/resize/Makefile.am b/resize/Makefile.am
index 657b626b0..d14228854 100644
--- a/resize/Makefile.am
+++ b/resize/Makefile.am
@@ -30,11 +30,11 @@ SOURCES_ML = \
 	resize.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/fsync-c.c \
-	$(top_srcdir)/fish/progress.c \
-	$(top_srcdir)/mllib/progress-c.c \
-	$(top_srcdir)/fish/uri.c \
-	$(top_srcdir)/mllib/uri-c.c
+	../mllib/fsync-c.c \
+	../fish/progress.c \
+	../mllib/progress-c.c \
+	../fish/uri.c \
+	../mllib/uri-c.c
 
 if HAVE_OCAML
 
diff --git a/sparsify/Makefile.am b/sparsify/Makefile.am
index 98ab7291f..ab9af7a85 100644
--- a/sparsify/Makefile.am
+++ b/sparsify/Makefile.am
@@ -33,8 +33,8 @@ SOURCES_ML = \
 	sparsify.ml
 
 SOURCES_C = \
-	$(top_srcdir)/fish/progress.c \
-	$(top_srcdir)/mllib/progress-c.c \
+	../fish/progress.c \
+	../mllib/progress-c.c \
 	statvfs-c.c
 
 if HAVE_OCAML
diff --git a/sysprep/Makefile.am b/sysprep/Makefile.am
index 9424c40f9..1e304559b 100644
--- a/sysprep/Makefile.am
+++ b/sysprep/Makefile.am
@@ -79,12 +79,12 @@ SOURCES_ML = \
 	main.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/uri-c.c \
-	$(top_srcdir)/mllib/mkdtemp-c.c \
-	$(top_srcdir)/customize/crypt-c.c \
-	$(top_srcdir)/customize/perl_edit-c.c \
-	$(top_srcdir)/fish/uri.c \
-	$(top_srcdir)/fish/file-edit.c
+	../mllib/uri-c.c \
+	../mllib/mkdtemp-c.c \
+	../customize/crypt-c.c \
+	../customize/perl_edit-c.c \
+	../fish/uri.c \
+	../fish/file-edit.c
 
 if HAVE_OCAML
 
diff --git a/tests/mount-local/Makefile.am b/tests/mount-local/Makefile.am
index 89b92f2a9..6ae416108 100644
--- a/tests/mount-local/Makefile.am
+++ b/tests/mount-local/Makefile.am
@@ -27,8 +27,8 @@ check_PROGRAMS = $(TESTS)
 
 test_parallel_mount_local_SOURCES = \
 	test-parallel-mount-local.c \
-	$(top_srcdir)/df/estimate-max-threads.c \
-	$(top_srcdir)/df/estimate-max-threads.h
+	../../df/estimate-max-threads.c \
+	../../df/estimate-max-threads.h
 test_parallel_mount_local_CPPFLAGS = \
 	-DGUESTFS_WARN_DEPRECATED=1 \
 	-I$(top_srcdir)/gnulib/lib -I$(top_builddir)/gnulib/lib \
diff --git a/v2v/Makefile.am b/v2v/Makefile.am
index 06da002d0..e957a15cc 100644
--- a/v2v/Makefile.am
+++ b/v2v/Makefile.am
@@ -97,7 +97,7 @@ SOURCES_ML = \
 	v2v.ml
 
 SOURCES_C = \
-	$(top_srcdir)/mllib/mkdtemp-c.c \
+	../mllib/mkdtemp-c.c \
 	domainxml-c.c \
 	kvmuid-c.c \
 	utils-c.c \