diff --git a/bin/qw b/bin/qw
index 99c961a..a927204 100755
--- a/bin/qw
+++ b/bin/qw
@@ -34,9 +34,9 @@ opts = OptionParser.new do |opts|
   end
   
   opts.on("--customize", "Create and edit files for customizing Qwandry") do
-    dir = ENV['HOME'] && ENV['HOME'] + '/.qwandry/'
+    dir = Qwandry.config_dir
     if !dir
-      puts "Home directory must be defined."
+      puts "HOME directory must be defined."
       exit(1)
     else
       FileUtils.mkdir(dir, :verbose=>true) unless File.exist?(dir)
diff --git a/lib/qwandry.rb b/lib/qwandry.rb
index 7108127..f1803cf 100644
--- a/lib/qwandry.rb
+++ b/lib/qwandry.rb
@@ -21,4 +21,20 @@ module Qwandry
   autoload :FlatRepository,             "qwandry/flat_repository"
   autoload :LibraryRepository,          "qwandry/library_repository"
   autoload :Package,                    "qwandry/package"
+end
+
+def Qwandry.config_dir
+  subdir = '/.qwandry/'
+  
+  case
+    # If available, use XDG_CONFIG_HOME
+    #   http://standards.freedesktop.org/basedir-spec/basedir-spec-latest.html
+    when ENV['XDG_CONFIG_HOME'] then File.join(ENV['XDG_CONFIG_HOME'], subdir)
+      
+    # Otherwise fallback to qwandry's default and use the standard home dir
+    when ENV['HOME']            then File.join(ENV['HOME'], subdir)
+    
+    # If HOME isn't defined, all bets are off.
+    else nil 
+  end
 end
\ No newline at end of file
diff --git a/lib/qwandry/launcher.rb b/lib/qwandry/launcher.rb
index 2b1d4f3..8c8f818 100644
--- a/lib/qwandry/launcher.rb
+++ b/lib/qwandry/launcher.rb
@@ -95,9 +95,11 @@ module Qwandry
     end
     
     def custom_configuration!
-      custom_path = ENV['HOME'] && ENV['HOME'] + '/.qwandry/init.rb'
-      if File.exist? custom_path
-        eval IO.read(custom_path)
+      if config_dir = Qwandry.config_dir
+        custom_path = File.join(config_dir, 'init.rb')
+        if File.exist?(custom_path)
+          eval IO.read(custom_path) 
+        end
       end
     end
     
diff --git a/qwandry.gemspec b/qwandry.gemspec
index 58c3e71..f394e0c 100644
--- a/qwandry.gemspec
+++ b/qwandry.gemspec
@@ -5,7 +5,7 @@
 
 Gem::Specification.new do |s|
   s.name = %q{qwandry}
-  s.version = "0.1.0"
+  s.version = "0.0.2"
 
   s.required_rubygems_version = Gem::Requirement.new(">= 0") if s.respond_to? :required_rubygems_version=
   s.authors = ["Adam Sanderson"]