diff --git a/extra/IdeBplInstall/IdeBplInstall.dpr b/extra/IdeBplInstall/IdeBplInstall.dpr
index d7f7399d..ccbadd7d 100644
--- a/extra/IdeBplInstall/IdeBplInstall.dpr
+++ b/extra/IdeBplInstall/IdeBplInstall.dpr
@@ -10,9 +10,11 @@ uses
 
 const
   baseKey = '\Software\Borland';
-  finalKey = 'Known Packages';
+  pkgKey = 'Known Packages';
+  envKey = 'Environment Variables';
 
 var
+  path: string;
   bpl: string;
   descr: string;
   reg: TRegistry;
@@ -22,17 +24,18 @@ var
   s: string;
 
 begin
-  if ParamCount <> 2 then begin
+  if ParamCount <> 3 then begin
     WriteLn('');
     WriteLn('Usage:');
-    WriteLn('  ' + ExtractFileName(ParamStr(0)) + ' <fully qualified bpl path + filename> <description>');
+    WriteLn('  ' + ExtractFileName(ParamStr(0)) + ' <fully qualified bpl path> <filename> <description>');
     WriteLn('');
     ExitCode := 1;
     Exit;
   end;
 
-  bpl := ParamStr(1);
-  descr := ParamStr(2);
+  path := ParamStr(1);
+  bpl := path + '\' + ParamStr(2);
+  descr := ParamStr(3);
   if
     ((bpl[1] = '"') and (bpl[Length(bpl)] = '"')) or
     ((bpl[1] = '''') and (bpl[Length(bpl)] = '''')) then begin
@@ -85,7 +88,8 @@ begin
           reg.GetKeyNames(versionKeys);
           reg.CloseKey;
           if versionKeys.Count > 0 then for j := 0 to versionKeys.Count - 1 do begin
-            s := baseKey + '\' + productKeys[i] + '\' + versionKeys[j] + '\' + finalKey;
+            // Install package in IDE.
+            s := baseKey + '\' + productKeys[i] + '\' + versionKeys[j] + '\' + pkgKey;
             reg.Access := KEY_WRITE;
             if reg.KeyExists(s) then begin
               if not reg.OpenKey(s, false) then begin
@@ -96,6 +100,24 @@ begin
               reg.WriteString(bpl, descr);
               reg.CloseKey;
             end;
+            // Work around Delphi bug #23225.
+            s := baseKey + '\' + productKeys[i] + '\' + versionKeys[j] + '\' + envKey;
+            reg.Access := KEY_READ or KEY_WRITE;
+            if reg.KeyExists(s) then begin
+              if not reg.OpenKey(s, false) then begin
+                WriteLn('Error: Could not open key ' + s + '.');
+                ExitCode := 6;
+                Exit;
+              end;
+              s := reg.ReadString('Path');
+              s := StringReplace(s, path, '', [rfReplaceAll, rfIgnoreCase]);
+              s := s + ';' + path;
+              while Pos(';;', s) > 0 do s := StringReplace(s, ';;', ';', [rfReplaceAll]);
+              while (Length(s) > 0) and (s[1] = ';') do Delete(s, 1, 1);
+              while (Length(s) > 0) and (s[Length(s)] = ';') do Delete(s, 1, 1);
+              reg.WriteString('Path', s);
+              reg.CloseKey;
+            end;
           end;
         finally
           FreeAndNil(versionKeys);
diff --git a/extra/IdeBplInstall/IdeBplInstall.exe b/extra/IdeBplInstall/IdeBplInstall.exe
index 3535b8a4..87fafe4b 100644
Binary files a/extra/IdeBplInstall/IdeBplInstall.exe and b/extra/IdeBplInstall/IdeBplInstall.exe differ
diff --git a/extra/install_ide_components.cmd b/extra/install_ide_components.cmd
index effee834..d63ba4ad 100644
--- a/extra/install_ide_components.cmd
+++ b/extra/install_ide_components.cmd
@@ -87,14 +87,13 @@ goto :start
 :install
 echo Installing component %1, package %2%package_suffix%.bpl.
 rem
-rem    Drop a copy of all BPLs in a directory which is in PATH.
-rem    This is a workaround for bug #23225 in BDS 2006.
+rem    There is a workaround for bug #23225 in IdeBplInstall.exe.
 rem    (technically a regression since Delphi 7 worked OK.)
 rem
-rem    see here: http://qc.borland.com/wc/qcmain.aspx?d=23225
+rem    see: http://qc.borland.com/wc/qcmain.aspx?d=23225
 rem
-copy /y "%base_dir%\components\%1\build\*.bpl" "%USERPROFILE%\My Documents\Borland Studio Projects\Bpl\" >NUL:
-"%start_dir%\IdeBplInstall\IdeBplInstall.exe" "%base_dir%\components\%1\build\%2%package_suffix%.bpl" "%1"
+del /f /q "%USERPROFILE%\My Documents\Borland Studio Projects\Bpl\%2%package_suffix%.bpl" 2>NUL:
+"%start_dir%\IdeBplInstall\IdeBplInstall.exe" "%base_dir%\components\%1\build" "%2%package_suffix%.bpl" "%1"
 set err=%errorlevel%
 echo.
 goto :eof
diff --git a/readme.html b/readme.html
index 6d03ea99..d5663444 100644
--- a/readme.html
+++ b/readme.html
@@ -186,8 +186,9 @@
 	</p>
 
 	<p>
-		Open these projects in Delphi 2006 and perform the action listed:
-		(Delphi 2007 users will have to open the *.groupproj files instead of *.bdsproj or *.bdsgroup)
+		Open these projects in Delphi 2006 and perform the action listed.<br />
+		Note: Delphi 2007 users will have to open the *.groupproj files instead of *.bdsproj or *.bdsgroup.<br />
+		Note: Before you can install components into the IDE, you will also need to either (a) copy the generated BPL files from the build folders to somewhere in your path, or (b) add the build folders to your Delphi PATH environment variable override.  The override can be found under Tools --> Options --> Environment Options --> Environment Variables.
 	</p>
 	<table>
 		<tr>