diff --git a/shell/sugar b/shell/sugar
index ad1905b9..60391bee 100755
--- a/shell/sugar
+++ b/shell/sugar
@@ -9,6 +9,13 @@ import pygtk
 pygtk.require('2.0')
 import gobject
 
+def add_to_python_path(path):
+	sys.path.insert(0, path)
+	if os.environ.has_key('PYTHONPATH'):
+		os.environ['PYTHONPATH'] += ':' + path
+	else:
+		os.environ['PYTHONPATH'] = path
+
 def start_dbus():
 	curdir = os.path.dirname(__file__)
 	args = "/bin/dbus-daemon --session --print-address".split()
@@ -53,14 +60,13 @@ if not os.environ.has_key("SUGAR_NICK_NAME"):
 curdir = os.path.abspath(os.path.dirname(__file__))
 basedir = os.path.dirname(curdir)
 
-import sugar.env
-
 if os.path.isfile(os.path.join(basedir, 'sugar/__uninstalled__.py')):
 	print 'Running sugar from ' + basedir + ' ...'
-	sugar.env.add_to_python_path(basedir)
-	sugar.env.add_to_python_path(os.path.join(basedir, 'shell'))
+	add_to_python_path(basedir)
+	add_to_python_path(os.path.join(basedir, 'shell'))
 else:
-	sugar.env.add_to_python_path(os.path.join(sugar.env.get_data_dir(), 'shell'))
+	import sugar.env
+	add_to_python_path(os.path.join(sugar.env.get_data_dir(), 'shell'))
 	print 'Running the installed sugar...'
 	
 print 'Redirecting output to the console, press ctrl+d to open it.'