diff --git a/Examples/Makefile.in b/Examples/Makefile.in
index 240274278..6b4ca778e 100644
--- a/Examples/Makefile.in
+++ b/Examples/Makefile.in
@@ -455,11 +455,11 @@ octave_clean:
 
 # Make sure these locate your Guile installation
 GUILE         = @GUILE@
-GUILE_INCLUDE = @GUILEINCLUDE@
-GUILE_LIB     = @GUILELIB@
+GUILE_CFLAGS  = @GUILE_CFLAGS@
 GUILE_SO      = @GUILE_SO@
+GUILE_LIBS    = @GUILE_LIBS@
+GUILE_LIBOPTS = @LIBS@ $(SYSLIBS)
 GUILE_LIBPREFIX = lib
-GUILE_LIBOPTS = @GUILELINK@ @LIBS@ $(SYSLIBS)
 GUILE_SCRIPT  = $(RUNME).scm
 
 #------------------------------------------------------------------
@@ -467,13 +467,14 @@ GUILE_SCRIPT  = $(RUNME).scm
 #------------------------------------------------------------------
 guile: $(SRCS)
 	$(SWIG) -guile -scm -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ISRCS) $(SRCS)
+	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ISRCS) $(SRCS)
 	$(LDSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
 
-guile_cpp: $(SRCS)
+guile_cpp: $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
+$(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO): $(SRCS)
 	$(SWIG) -c++ -guile -scm -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
-	$(CXXSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) $(CPP_DLLIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
+	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
+	$(CXXSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) $(CPP_DLLIBS) -o $@
 
 guile_externalhdr:
 	$(SWIG) -guile -external-runtime $(TARGET)
@@ -483,12 +484,12 @@ guile_externalhdr:
 #------------------------------------------------------------------
 guile_gh: $(SRCS)
 	$(SWIG) -guile -gh -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ISRCS) $(SRCS)
+	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ISRCS) $(SRCS)
 	$(LDSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
 
 guile_gh_cpp: $(SRCS)
 	$(SWIG) -c++ -guile -gh -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
+	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
 	$(CXXSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) $(CPP_DLLIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
 
 # -----------------------------------------------------------------
@@ -497,12 +498,12 @@ guile_gh_cpp: $(SRCS)
 
 guile_passive: $(SRCS)
 	$(SWIG) -guile -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ISRCS) $(SRCS)
+	$(CC) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ISRCS) $(SRCS)
 	$(LDSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
 
 guile_passive_cpp: $(SRCS)
 	$(SWIG) -c++ -guile -Linkage passive $(SWIGOPT) $(INTERFACEPATH)
-	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_INCLUDE) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
+	$(CXX) -c $(CCSHARED) $(CFLAGS) $(INCLUDES) $(GUILE_CFLAGS) $(ICXXSRCS) $(SRCS) $(CXXSRCS)
 	$(CXXSHARED) $(CFLAGS) $(OBJS) $(IOBJS) $(LIBS) $(CPP_DLLIBS) -o $(GUILE_LIBPREFIX)$(TARGET)$(GUILE_SO)
 
 # -----------------------------------------------------------------
@@ -513,23 +514,23 @@ guile_static: $(SRCS)
 	$(SWIG) -guile -lguilemain.i -Linkage ltdlmod $(SWIGOPT) $(INTERFACEPATH)
 	$(CC) $(CFLAGS) $(ISRCS) $(SRCS) $(INCLUDES) \
 	  -DSWIGINIT="SCM scm_init_$(TARGET)_module(void); scm_init_$(TARGET)_module();" \
-	  $(GUILE_INCLUDE) $(LIBS) -L$(GUILE_LIB) $(GUILE_LIBOPTS) -o $(TARGET)-guile
+	  $(GUILE_CFLAGS) $(LIBS) -L$(GUILE_LIBS) $(GUILE_LIBOPTS) -o $(TARGET)-guile
 
 guile_static_cpp: $(SRCS)
 	$(SWIG) -c++ -guile -lguilemain.i -Linkage ltdlmod $(SWIGOPT) $(INTERFACEPATH)
 	$(CXX) $(CFLAGS) $(ICXXSRCS) $(SRCS) $(CXXSRCS) $(INCLUDES) \
 	  -DSWIGINIT="SCM scm_init_$(TARGET)_module(void); scm_init_$(TARGET)_module();" \
-	  $(GUILE_INCLUDE) $(LIBS) -L$(GUILE_LIB) $(GUILE_LIBOPTS) -o $(TARGET)-guile
+	  $(GUILE_CFLAGS) $(LIBS) -L$(GUILE_LIBS) $(GUILE_LIBOPTS) -o $(TARGET)-guile
 
 guile_simple: $(SRCS)
 	$(SWIG) -guile -lguilemain.i -Linkage simple $(SWIGOPT) $(INTERFACEPATH)
 	$(CC) $(CFLAGS) $(ISRCS) $(SRCS) $(INCLUDES) \
-	  $(GUILE_INCLUDE) $(LIBS) -L$(GUILE_LIB) $(GUILE_LIBOPTS) -o $(TARGET)-guile
+	  $(GUILE_CFLAGS) $(LIBS) -L$(GUILE_LIBS) $(GUILE_LIBOPTS) -o $(TARGET)-guile
 
 guile_simple_cpp: $(SRCS)
 	$(SWIG) -c++ -guile -lguilemain.i -Linkage simple $(SWIGOPT) $(INTERFACEPATH)
 	$(CXX) $(CFLAGS) $(ICXXSRCS) $(SRCS) $(CXXSRCS) $(INCLUDES) \
-	  $(GUILE_INCLUDE) $(LIBS) -L$(GUILE_LIB) $(GUILE_LIBOPTS) -o $(TARGET)-guile
+	  $(GUILE_CFLAGS) $(LIBS) -L$(GUILE_LIBS) $(GUILE_LIBOPTS) -o $(TARGET)-guile
 
 # -----------------------------------------------------------------
 # Running a Guile example
diff --git a/Examples/guile/Makefile.in b/Examples/guile/Makefile.in
index 9e6f9f6c6..3110ac994 100644
--- a/Examples/guile/Makefile.in
+++ b/Examples/guile/Makefile.in
@@ -7,8 +7,8 @@ SWIG		= ../$(top_srcdir)/preinst-swig
 CC		= @CC@
 CXX		= @CXX@
 CFLAGS		= @PLATFLAGS@
-GUILEINCLUDE	= @GUILEINCLUDE@
-GUILELINK	= @GUILELINK@
+GUILE_CFLAGS	= @GUILE_CFLAGS@
+GUILE_LIBS	= @GUILE_LIBS@
 SWIGOPT		=
 
 WRAP		= $(IFILE:.i=_wrap.c)
@@ -31,10 +31,10 @@ guile_clean:
 
 sub-all:
 	$(SWIG) -guile $(SWIGOPT) $(IFILE)
-	$(CC) $(CFLAGS) -o $(TARGET) $(SRCS) $(WRAP) $(GUILEINCLUDE) $(GUILELINK)
+	$(CC) $(CFLAGS) -o $(TARGET) $(SRCS) $(WRAP) $(GUILE_CFLAGS) $(GUILE_LIBS)
 
 sub-all-cxx:
 	$(SWIG) -c++ -guile $(SWIGOPT) $(IFILE)
-	$(CXX) $(CFLAGS) -o $(TARGET) $(SRCS) $(CXXWRAP) $(GUILEINCLUDE) $(GUILELINK)
+	$(CXX) $(CFLAGS) -o $(TARGET) $(SRCS) $(CXXWRAP) $(GUILE_CFLAGS) $(GUILE_LIBS)
 
 # Makefile ends here
diff --git a/Makefile.in b/Makefile.in
index 6b7a99220..c33889587 100644
--- a/Makefile.in
+++ b/Makefile.in
@@ -59,7 +59,7 @@ skip-tcl	= test -n "@SKIP_TCL@"
 skip-perl5	= test -n "@SKIP_PERL5@"
 skip-python	= test -n "@SKIP_PYTHON@"
 skip-java	= test -n "@SKIP_JAVA@"
-skip-guilegh   = test -n "@SKIP_GUILEGH@"
+skip-guilegh    = test -n "@SKIP_GUILEGH@"
 skip-guile	= test -n "@SKIP_GUILE@"
 skip-mzscheme	= test -n "@SKIP_MZSCHEME@"
 skip-ruby	= test -n "@SKIP_RUBY@"
diff --git a/configure.ac b/configure.ac
index 7b259c78d..28696529d 100644
--- a/configure.ac
+++ b/configure.ac
@@ -157,7 +157,7 @@ if test "$GCC" = yes; then
 else
     ISYSTEM="-I"
 fi
-
+AC_MSG_NOTICE(ISYSTEM: $ISYSTEM)
 
 dnl Info for building shared libraries ... in order to run the examples
 
@@ -1148,125 +1148,123 @@ AC_SUBST(NDKBUILD)
 # Look for Guile
 #----------------------------------------------------------------
 
-GUILEPACKAGE=
-GUILEINCLUDE=
 GUILE=
-GUILELIB=
-GUILELINK=
-GUILEPKGDATADIR=
+GUILE_CFLAGS=
+GUILE_LIBS=
 
-AC_ARG_WITH(guile-config,AS_HELP_STRING([--without-guile], [Disable Guile])
-AS_HELP_STRING([--with-guile-config=path], [Set location of guile-config]),[ GUILE_CONFIG="$withval"], [GUILE_CONFIG=])
-AC_ARG_WITH(guilepackage, AS_HELP_STRING([--with-guile-prefix=path], [Set location of Guile tree]),[
-	GUILEPACKAGE="$withval"])
-AC_ARG_WITH(guile,[  --with-guile=path       Set location of Guile executable],[
-	GUILE="$withval"], [GUILE=yes])
-AC_ARG_WITH(guileincl,[  --with-guileincl=path   Set location of Guile include directory],[
-	GUILEINCLUDE="$withval"])
-AC_ARG_WITH(guilelib,[  --with-guilelib=path    Set location of Guile library directory],[
-	GUILELIB="$withval"])
+AC_ARG_WITH(guile, AS_HELP_STRING([--without-guile], [Disable Guile])
+AS_HELP_STRING([--with-guile=path], [Set location of Guile executable]),[GUILE="$withval"], [GUILE=yes])
+AC_ARG_WITH(guile-cflags,[  --with-guile-cflags=cflags   Set cflags required to compile against Guile],[
+	GUILE_CFLAGS="$withval"])
+AC_ARG_WITH(guile-libs,[  --with-guile-libs=ldflags    Set ldflags needed to link with Guile],[
+	GUILE_LIBS="$withval"])
 
 # First, check for "--without-guile" or "--with-guile=no".
 if test x"${GUILE}" = xno -o x"${with_alllang}" = xno ; then 
-AC_MSG_NOTICE([Disabling Guile])
+  AC_MSG_NOTICE([Disabling Guile])
+  GUILE=
+  GUILE_CFLAGS=
+  GUILE_LIBS=
 else
 
-if test -z "$GUILE_CONFIG" ; then
-  AC_PATH_PROG(GUILE_CONFIG, guile-config)
-fi
-
-if test -n "$GUILE_CONFIG" ; then
-  GUILEPACKAGE="`$GUILE_CONFIG info prefix`"
-  GUILEINCLUDE="`$GUILE_CONFIG info includedir`"
-  GUILELIB="`$GUILE_CONFIG info libdir`"
-  GUILE="`$GUILE_CONFIG info bindir`/guile"
-  GUILELINK="`$GUILE_CONFIG link`"
-  GUILEPKGDATADIR="`$GUILE_CONFIG info pkgdatadir`"
-fi
-
-  if test -z "$GUILE" -o "x$GUILE" = xyes; then
-     if test -n "$GUILEPACKAGE"; then
-  	GUILE="$GUILEPACKAGE/bin/guile"
-     else
-  	GUILE=
-     fi
+  # Use pkg-config to find guile specific config parameters
+  # Note: if guile is not installed in a standard system path
+  # you can set the environment variable PKG_CONFIG_PATH to
+  # the directory where the guile package config file is stored
+  AC_PATH_PROG(PKG_CONFIG,pkg-config)
+  if test "x$PKG_CONFIG" = x; then
+    # @*%&$ Ximian programmers renamed this application
+    AC_PATH_PROG(PKG_CONFIG,pkgconfig)
   fi
+  if test "x$PKG_CONFIG" = x; then
+    AC_MSG_NOTICE([Could not find the pkg-config (or pkgconfig) program required to set up Guile. Disabling Guile],)
+    GUILE=
+    GUILE_CFLAGS=
+    GUILE_LIBS=""
+  else
 
-  if test -z "$GUILEINCLUDE"; then
-     if test -n "$GUILEPACKAGE"; then
-  	GUILEINCLUDE="$GUILEPACKAGE/include"
-     fi
-  fi
+    # If the user has given these values, cache them to override the
+    # detected values.
+    if test "x$GUILE_LIBS" != x; then
+      saved_GUILE_LIBS="$GUILE_LIBS"
+    fi
+    if test "x$GUILE_CFLAGS" != x; then
+      saved_GUILE_CFLAGS="$GUILE_CFLAGS"
+    fi
 
-  if test -z "$GUILELIB"; then
-     if test -n "$GUILEPACKAGE"; then
-  	GUILELIB="$GUILEPACKAGE/lib"
-     fi
-  fi
+    # Look up GUILE_CFLAGS and GUILE_LIBS, and version check
+    GUILE_SERIES=""
+    PKG_CHECK_MODULES(GUILE, [guile-1.8], [ GUILE_SERIES="18" ], [
+      PKG_CHECK_MODULES(GUILE, [guile-2.0], [GUILE_SERIES="20" ], [AC_MSG_NOTICE([
+        Only Guile 1.8 or 2.0 is supported. Neither version appears to be installed correctly. Disabling Guile
+      ])])
+    ])
 
+    if test "x$GUILE-SERIES" = x; then
+      GUILE=
+      GUILE_CFLAGS=
+      GUILE_LIBS=
+    else
+      # Look up GUILE executable
+      if test "x$GUILE" = xyes; then
+        GUILE=
+        if test "$xGUILE_SERIES" = "x18"; then
+          AC_PATH_PROG(GUILE18, guile-1.8)
+          if test "x$GUILE18" != x; then
+            GUILE="$GUILE18"
+          fi
+        fi
+        if test "$xGUILE_SERIES" = "x20"; then
+          AC_PATH_PROG(GUILE20, guile-2.0)
+          if test "x$GUILE20" != x; then
+            GUILE="$GUILE20"
+          fi
+        fi
+        if test "x$GUILE" = x; then
+          AC_PATH_PROG(GUILE, guile)
+        fi
+      fi
 
-AC_MSG_CHECKING(for Guile header files)
+      if test "x$saved_GUILE_LIBS" != x; then
+        GUILE_LIBS="$saved_GUILE_LIBS"
+      fi
+      if test "x$saved_GUILE_CFLAGS" != x; then
+        GUILE_CFLAGS="$saved_GUILE_CFLAGS"
+      fi
 
-  dirs="$GUILEINCLUDE"
-  for i in $dirs ; do
-  	if test -r $i/guile/gh.h; then
-  		AC_MSG_RESULT($i)
-  		GUILEINCLUDE="$ISYSTEM$i"
-  		break
-  	fi
-  done
-  if test -z "$GUILEINCLUDE"; then
-      	AC_MSG_RESULT(not found)
-  fi
+      guilesafe_CFLAGS=$CFLAGS
+      guilesafe_LIBS=$LIBS
+      # Filter out "-ansi -pedantic" because Guile header files will not compile with these flags.
+      # (The flags -ansi -pedantic are automatically added by ac_compile_warnings.m4)
+      CFLAGS="`echo $CFLAGS | sed 's/-ansi//g;s/-pedantic//g;'` $GUILE_CFLAGS"
+      LIBS="$LIBS $GUILE_LIBS"
 
-  AC_MSG_CHECKING(for Guile library)
-  dirs="$GUILELIB"
-  for i in $dirs ; do
-  	if test -r $i/libguile.so; then
-  	    AC_MSG_RESULT($i)
-  	    GUILELIB="$i"
-  	    break
-  	fi
-  done
-  if test -z "$GUILELIB"; then
-  	AC_MSG_RESULT(not found)
-  fi
-
-if test -z "$GUILELINK"; then
-  GUILELINK="-L$GUILELIB -lguile"
-fi
-
-guilesafe_CFLAGS=$CFLAGS
-guilesafe_LIBS=$LIBS
-# Filter out "-ansi -pedantic" because Guile header files will not compile with these flags.
-# (The flags -ansi -pedantic are automatically added by ac_compile_warnings.m4)
-CFLAGS="`echo $CFLAGS | sed 's/-ansi//g;s/-pedantic//g;'` $GUILEINCLUDE"
-LIBS="$LIBS $GUILELINK"
-
-AC_MSG_CHECKING(whether Guile's gh_ API works)
-AC_LINK_IFELSE([AC_LANG_SOURCE([#include <guile/gh.h>
-  int main() { SCM s; return gh_scm2int(s); }])], GUILE_GH_INTERFACE=1, )
-if test -n "$GUILE_GH_INTERFACE" ; then
+      AC_MSG_CHECKING(whether Guile's gh_ API works)
+      AC_LINK_IFELSE([AC_LANG_SOURCE([#include <guile/gh.h>
+        int main() { SCM s; return gh_scm2int(s); }])], GUILE_GH_INTERFACE=1, )
+      if test -n "$GUILE_GH_INTERFACE" ; then
         AC_MSG_RESULT(yes)
-else
-	AC_MSG_RESULT(no)
-fi
-AC_MSG_CHECKING(whether Guile's SCM_ API works)
-AC_LINK_IFELSE([AC_LANG_SOURCE([#include <libguile.h>
-  int main() { SCM s; scm_slot_exists_p(SCM_BOOL_F, SCM_BOOL_F); return SCM_STRING_LENGTH(s); }])], GUILE_SCM_INTERFACE=1, )
-if test -n "$GUILE_SCM_INTERFACE" ; then
+      else
+        AC_MSG_RESULT(no)
+      fi
+      AC_MSG_CHECKING(whether Guile's SCM_ API works)
+      AC_LINK_IFELSE([AC_LANG_SOURCE([#include <libguile.h>
+        int main() { SCM s; scm_slot_exists_p(SCM_BOOL_F, SCM_BOOL_F); return SCM_STRING_LENGTH(s); }])], GUILE_SCM_INTERFACE=1, )
+      if test -n "$GUILE_SCM_INTERFACE" ; then
         AC_MSG_RESULT(yes)
-else
-	AC_MSG_RESULT(no)
-fi
-CFLAGS=$guilesafe_CFLAGS
-LIBS=$guilesafe_LIBS
+      else
+        AC_MSG_RESULT(no)
+      fi
+
+      CFLAGS=$guilesafe_CFLAGS
+      LIBS=$guilesafe_LIBS
+    fi
+  fi
 fi
 
 AC_SUBST(GUILE)
-AC_SUBST(GUILEINCLUDE)
-AC_SUBST(GUILELIB)
-AC_SUBST(GUILELINK)
+AC_SUBST(GUILE_CFLAGS)
+AC_SUBST(GUILE_LIBS)
 AC_SUBST(GUILE_GH_INTERFACE)
 AC_SUBST(GUILE_SCM_INTERFACE)
 
@@ -2268,13 +2266,13 @@ AC_SUBST(SKIP_JAVA)
 
 
 SKIP_GUILE=
-if test -z "$GUILEINCLUDE" || test -z "$GUILELIB" || test -z "$GUILE_SCM_INTERFACE"; then
+if test -z "$GUILE_CFLAGS" || test -z "$GUILE_LIBS" || test -z "$GUILE_SCM_INTERFACE"; then
     SKIP_GUILE="1"
 fi
 AC_SUBST(SKIP_GUILE)
 
 SKIP_GUILEGH=
-if test -z "$GUILEINCLUDE" || test -z "$GUILELIB" || test -z "$GUILE_GH_INTERFACE"; then
+if test -z "$GUILE_CFLAGS" || test -z "$GUILE_LIBS" || test -z "$GUILE_GH_INTERFACE"; then
     SKIP_GUILEGH="1"
 fi
 AC_SUBST(SKIP_GUILEGH)