diff --git a/services/presence/sugar-presence-service b/services/presence/sugar-presence-service
index 05dfdaaa..b2261b40 100755
--- a/services/presence/sugar-presence-service
+++ b/services/presence/sugar-presence-service
@@ -1,10 +1,16 @@
 #!/usr/bin/python
-
 import logging
+import sys
+import os
+
+from sugar import logger
+from sugar import env
+
+sys.path.insert(0, env.get_services_dir())
+
 from presence import PresenceService
-import sugar.logger
 
-sugar.logger.start('presenceservice')
+logger.start('presenceservice')
 
 logging.info('Starting presence service')
 
diff --git a/sugar/__installed__.py.in b/sugar/__installed__.py.in
index ff0a830d..d9cdfd54 100644
--- a/sugar/__installed__.py.in
+++ b/sugar/__installed__.py.in
@@ -4,6 +4,6 @@ sugar_activities_dir = '@prefix@/share/sugar/activities'
 sugar_services_dir = '@prefix@/share/sugar/services'
 sugar_dbus_config = '@prefix@/share/sugar/dbus-installed.conf'
 
-sugar_python_path = ['@prefix@/share/sugar/activities',
-					 '@prefix@/share/sugar/services']
+sugar_python_path = ['@prefix@/share/sugar/activities']
+
 sugar_bin_path = []
diff --git a/sugar/__uninstalled__.py.in b/sugar/__uninstalled__.py.in
index 869901df..c454a86b 100644
--- a/sugar/__uninstalled__.py.in
+++ b/sugar/__uninstalled__.py.in
@@ -3,17 +3,16 @@ import tempfile
 
 sugar_source_dir = os.path.dirname(os.path.dirname(__file__))
 sugar_data_dir = os.path.join(sugar_source_dir, 'shell/data')
+sugar_services_dir = os.path.join(sugar_source_dir, 'services')
 
 __tmpdir = os.path.join(tempfile.gettempdir(), 'sugar')
 sugar_activities_dir = __tmpdir
-sugar_service_dir = __tmpdir
 
 sugar_dbus_config = os.path.join(sugar_source_dir, 'dbus-uninstalled.conf')
 
 sugar_python_path = []
 sugar_python_path.append(sugar_source_dir)
 sugar_python_path.append(os.path.join(sugar_source_dir, 'activities'))
-sugar_python_path.append(os.path.join(sugar_source_dir, 'services'))
 
 sugar_bin_path = []
 sugar_bin_path.append(os.path.join(sugar_source_dir))
diff --git a/sugar/env.py b/sugar/env.py
index a2dfa457..bd7a9191 100644
--- a/sugar/env.py
+++ b/sugar/env.py
@@ -75,5 +75,8 @@ def get_data_dir():
 def get_activities_dir():
 	return sugar_activities_dir
 
+def get_services_dir():
+	return sugar_services_dir
+
 def get_dbus_config():
 	return sugar_dbus_config