diff --git a/Makefile b/Makefile
index 75d73aa0..eccac07c 100644
--- a/Makefile
+++ b/Makefile
@@ -4,7 +4,8 @@
 
 TOP ?= .
 include $(TOP)/config.mak
-VPATH = $(TOP)
+VPATH = $(TOPSRC)
+CFLAGS += -I$(TOP)
 
 ifeq (-$(findstring gcc,$(CC))-,-gcc-)
  ifeq (-$(GCC_MAJOR)-$(findstring $(GCC_MINOR),56789)-,-4--)
@@ -206,7 +207,7 @@ libtcc.dll : $(LIBTCC_OBJ) tiny_impdef$(EXESUF)
 libtcc.dll : NATIVE_DEFINES += -DLIBTCC_AS_DLL
 
 # windows : utilities
-tiny_%$(EXESUF): $(SRCTOP)/win32/tools/tiny_%.c
+tiny_%$(EXESUF): $(TOPSRC)/win32/tools/tiny_%.c
 	$(CC) -o $@ $< $(CFLAGS) $(LDFLAGS) $(NATIVE_DEFINES)
 
 ifneq ($(LIBTCC1),)
@@ -246,21 +247,21 @@ install: $(PROGS) $(TCCLIBS) $(TCCDOCS)
 ifneq ($(LIBTCC1),)
 	$(INSTALL) -m644 $(LIBTCC1) "$(tccdir)"
 endif
-	$(INSTALL) -m644 $(addprefix include/,$(TCC_INCLUDES)) tcclib.h "$(tccdir)/include"
+	$(INSTALL) -m644 $(addprefix $(TOPSRC)/include/,$(TCC_INCLUDES)) $(TOPSRC)/tcclib.h "$(tccdir)/include"
 	mkdir -p "$(libdir)"
 	$(INSTALL) -m644 $(LIBTCC) "$(libdir)"
 	mkdir -p "$(includedir)"
-	$(INSTALL) -m644 libtcc.h "$(includedir)"
+	$(INSTALL) -m644 $(TOPSRC)/libtcc.h "$(includedir)"
 	mkdir -p "$(docdir)"
 	-$(INSTALL) -m644 tcc-doc.html "$(docdir)"
 ifdef CONFIG_CROSS
 	mkdir -p "$(tccdir)/win32/lib/32"
 	mkdir -p "$(tccdir)/win32/lib/64"
-	$(INSTALL) -m644 win32/lib/*.def "$(tccdir)/win32/lib"
+	$(INSTALL) -m644 $(TOPSRC)/win32/lib/*.def "$(tccdir)/win32/lib"
 	-$(INSTALL) -m644 lib/i386-win32/libtcc1.a "$(tccdir)/win32/lib/32"
 	-$(INSTALL) -m644 lib/x86_64-win32/libtcc1.a "$(tccdir)/win32/lib/64"
-	cp -r win32/include/. "$(tccdir)/win32/include"
-	cp -r "$(tccdir)/include" "$(tccdir)/win32"
+	cp -r $(TOPSRC)/include/. "$(tccdir)/win32/include"
+	cp -r $(TOPSRC)/win32/include/. "$(tccdir)/win32/include"
 endif
 
 uninstall:
@@ -282,13 +283,13 @@ install: $(PROGS) $(TCCLIBS) $(TCCDOCS)
 	mkdir -p "$(tccdir)/doc"
 	mkdir -p "$(tccdir)/libtcc"
 	$(INSTALLBIN) -m755 $(PROGS) $(LIBTCC) "$(tccdir)"
-	$(INSTALL) -m644 libtcc1.a win32/lib/*.def "$(tccdir)/lib"
-	cp -r win32/include/. "$(tccdir)/include"
-	cp -r win32/examples/. "$(tccdir)/examples"
-	cp tests/libtcc_test.c "$(tccdir)/examples"
-	$(INSTALL) -m644 $(addprefix include/,$(TCC_INCLUDES)) tcclib.h "$(tccdir)/include"
-	$(INSTALL) -m644 tcc-doc.html win32/tcc-win32.txt "$(tccdir)/doc"
-	$(INSTALL) -m644 libtcc.h libtcc.def "$(tccdir)/libtcc"
+	$(INSTALL) -m644 libtcc1.a $(TOPSRC)/win32/lib/*.def "$(tccdir)/lib"
+	cp -r $(TOPSRC)/win32/include/. "$(tccdir)/include"
+	cp -r $(TOPSRC)/win32/examples/. "$(tccdir)/examples"
+	cp $(TOPSRC)/tests/libtcc_test.c "$(tccdir)/examples"
+	$(INSTALL) -m644 $(addprefix $(TOPSRC)/include/,$(TCC_INCLUDES)) $(TOPSRC)/tcclib.h "$(tccdir)/include"
+	$(INSTALL) -m644 tcc-doc.html $(TOPSRC)/win32/tcc-win32.txt "$(tccdir)/doc"
+	$(INSTALL) -m644 $(TOPSRC)/libtcc.h libtcc.def "$(tccdir)/libtcc"
 ifdef CONFIG_CROSS
 	mkdir -p "$(tccdir)/lib/32"
 	mkdir -p "$(tccdir)/lib/64"
diff --git a/configure b/configure
index 89e32fe8..b6a0b219 100755
--- a/configure
+++ b/configure
@@ -519,11 +519,11 @@ echo "@set VERSION $version" > config.texi
 
 if test "$source_path_used" = "yes" ; then
     case $source_path in
-       /*) echo "SRCTOP=$source_path";;
-	*) echo "SRCTOP=\$(TOP)/$source_path";;
+       /*) echo "TOPSRC=$source_path";;
+	*) echo "TOPSRC=\$(TOP)/$source_path";;
      esac >>config.mak
 else
-     echo 'SRCTOP=$(TOP)' >>config.mak
+     echo 'TOPSRC=$(TOP)' >>config.mak
 fi
 
 diff $TMPH config.h >/dev/null 2>&1
@@ -553,7 +553,11 @@ fn_makelink()
 	 esac
 	 ;;
     esac
-    ln -sfn $tgt $2
+    if test "$mingw32" = "yes" ; then
+        cmd //c mklink `echo "$2 $tgt" | sed 's,/,\\\\,g'`
+    else
+        ln -sfn $tgt $2
+    fi
 }
 
 if test "$source_path_used" = "yes" ; then
diff --git a/lib/Makefile b/lib/Makefile
index 94dcbe34..da678efc 100644
--- a/lib/Makefile
+++ b/lib/Makefile
@@ -4,7 +4,7 @@
 
 TOP = ..
 include $(TOP)/Makefile
-VPATH = $(TOP)/lib $(TOP)/win32/lib
+VPATH = $(TOPSRC)/lib $(TOPSRC)/win32/lib
 
 ifndef TARGET
  # we're building the native libtcc1.a
@@ -51,31 +51,31 @@ PICFLAGS = -fPIC
 ifeq "$(TARGET)" "i386-win32"
  OBJ = $(addprefix $(DIR)/,$(WIN32_O))
  TGT = -DTCC_TARGET_I386 -DTCC_TARGET_PE
- XCC = $(TCC) -B$(TOP)/win32 -I$(TOP)/include
+ XCC = $(TCC) -B$(TOPSRC)/win32 -I$(TOPSRC)/include
  XAR = $(DIR)/tiny_libmaker$(EXESUF)
  XFLAGS = $(TGT)
 else ifeq "$(TARGET)" "x86_64-win32"
  OBJ = $(addprefix $(DIR)/,$(WIN64_O))
  TGT = -DTCC_TARGET_X86_64 -DTCC_TARGET_PE
- XCC = $(TCC) -B$(TOP)/win32 -I$(TOP)/include
+ XCC = $(TCC) -B$(TOPSRC)/win32 -I$(TOPSRC)/include
  XAR = $(DIR)/tiny_libmaker$(EXESUF)
  XFLAGS = $(TGT)
 else ifeq "$(TARGET)" "i386"
  OBJ = $(addprefix $(DIR)/,$(I386_O))
  TGT = -DTCC_TARGET_I386
- XCC ?= $(TCC) -B$(TOP)
+ XCC ?= $(TCC) -B$(TOPSRC)
 else ifeq "$(TARGET)" "x86_64"
  OBJ = $(addprefix $(DIR)/,$(X86_64_O))
  TGT = -DTCC_TARGET_X86_64
- XCC ?= $(TCC) -B$(TOP)
+ XCC ?= $(TCC) -B$(TOPSRC)
 else ifeq "$(TARGET)" "arm"
  OBJ = $(addprefix $(DIR)/,$(ARM_O))
  TGT = -DTCC_TARGET_ARM
- XCC ?= $(TCC) -B$(TOP)
+ XCC ?= $(TCC) -B$(TOPSRC)
 else ifeq "$(TARGET)" "arm64"
  OBJ = $(addprefix $(DIR)/,$(ARM64_O))
  TGT = -DTCC_TARGET_ARM64
- XCC ?= $(TCC) -B$(top_srcdir)
+ XCC ?= $(TCC) -B$(TOPSRC)
 else
  $(error libtcc1.a not supported on target '$(TARGET)')
 endif
@@ -99,7 +99,7 @@ $(DIR)/%.o : %.c
 $(DIR)/%.o : %.S
 	$(XCC) -c $< -o $@ $(XFLAGS)
 # windows : utilities
-$(DIR)/tiny_%$(EXESUF) : $(TOP)/win32/tools/tiny_%.c
+$(DIR)/tiny_%$(EXESUF) : $(TOPSRC)/win32/tools/tiny_%.c
 	$(CC) -o $@ $< $(CFLAGS) $(LDFLAGS) $(TGT)
 
 $(OBJ) $(XAR) : $(DIR)/exists
diff --git a/tests/Makefile b/tests/Makefile
index b9f4bf6a..78b56448 100644
--- a/tests/Makefile
+++ b/tests/Makefile
@@ -4,8 +4,8 @@
 
 TOP = ..
 include $(TOP)/Makefile
-VPATH = $(TOP)/tests $(TOP)
-CFLAGS = -I$(TOP)
+VPATH = $(TOPSRC)/tests $(TOPSRC) $(TOP)
+CFLAGS = -I$(TOPSRC) -I$(TOP)
 
 # what tests to run
 TESTS = \
@@ -42,14 +42,14 @@ ifeq ($(CONFIG_arm_eabi),yes)
 endif
 
 # run local version of tcc with local libraries and includes
-TCCFLAGS = -B$(TOP) -I$(TOP)
+TCCFLAGS = -B$(TOP) -I$(TOPSRC)/include -I$(TOPSRC) -I$(TOP)
 ifdef CONFIG_WIN32
- TCCFLAGS = -B$(TOP)/win32 -I$(TOP)/include -I$(TOP) -L$(TOP)
+ TCCFLAGS = -B$(TOPSRC)/win32 -I$(TOPSRC)/include -I$(TOPSRC) -I$(TOP) -L$(TOP)
  PATH := $(CURDIR)/$(TOP):$(PATH) # for libtcc_test to find libtcc.dll
 endif
 
 TCC = $(TOP)/tcc $(TCCFLAGS)
-RUN_TCC = $(NATIVE_DEFINES) -DONE_SOURCE -run $(TOP)/tcc.c $(TCCFLAGS)
+RUN_TCC = $(NATIVE_DEFINES) -DONE_SOURCE -run $(TOPSRC)/tcc.c $(TCCFLAGS)
 
 ifeq ($(TARGETOS),Darwin)
  CFLAGS += -Wl,-flat_namespace,-undefined,warning
@@ -154,9 +154,9 @@ btest: boundtest.c
 speedtest: ex2 ex3
 	@echo ------------ $@ ------------
 	time ./ex2 1238 2 3 4 10 13 4
-	time $(TCC) -run $(TOP)/examples/ex2.c 1238 2 3 4 10 13 4
+	time $(TCC) -run $(TOPSRC)/examples/ex2.c 1238 2 3 4 10 13 4
 	time ./ex3 35
-	time $(TCC) -run $(TOP)/examples/ex3.c 35
+	time $(TCC) -run $(TOPSRC)/examples/ex3.c 35
 
 weaktest: tcctest.c test.ref
 	$(TCC) -c $< -o weaktest.tcc.o
@@ -165,7 +165,7 @@ weaktest: tcctest.c test.ref
 	objdump -t weaktest.gcc.o | grep ' w ' | sed -e 's/.* \([a-zA-Z0-9_]*\)$$/\1/' | LC_ALL=C sort > weaktest.gcc.o.txt
 	diff weaktest.gcc.o.txt weaktest.tcc.o.txt && echo "Weak Auto Test OK"
 
-ex%: $(TOP)/examples/ex%.c
+ex%: $(TOPSRC)/examples/ex%.c
 	$(CC) -o $@ $< $(CFLAGS)
 
 # tiny assembler testing
diff --git a/tests/pp/Makefile b/tests/pp/Makefile
index d687acab..39684818 100644
--- a/tests/pp/Makefile
+++ b/tests/pp/Makefile
@@ -2,8 +2,13 @@
 # credits: 01..13.c from the pcc cpp-tests suite
 #
 
+TOP = ../..
+include $(TOP)/config.mak
+SRC = $(TOPSRC)/tests/pp
+VPATH = $(SRC)
+
 TCC = ../../tcc
-files = $(patsubst %.$1,%.test,$(wildcard *.$1))
+files = $(patsubst %.$1,%.test,$(notdir $(wildcard $(SRC)/*.$1)))
 TESTS = $(call files,c) $(call files,S)
 
 all test : $(sort $(TESTS))
@@ -13,13 +18,13 @@ DIFF_OPTS = -Nu -b -B -I "^\#"
 %.test: %.c %.expect
 	@echo PPTest $* ...
 	-@$(TCC) -E -P $< >$*.output 2>&1 ; \
-	    diff $(DIFF_OPTS) $*.expect $*.output \
+	    diff $(DIFF_OPTS) $(SRC)/$*.expect $*.output \
 	    && rm -f $*.output
 
 %.test: %.S %.expect
 	@echo PPTest $* ...
 	-@$(TCC) -E -P $< >$*.output 2>&1 ; \
-	    diff $(DIFF_OPTS) $*.expect $*.output \
+	    diff $(DIFF_OPTS) $(SRC)/$*.expect $*.output \
 	    && rm -f $*.output
 
 # automatically generate .expect files with gcc:
diff --git a/tests/tests2/Makefile b/tests/tests2/Makefile
index 587f1e7b..67d65a44 100644
--- a/tests/tests2/Makefile
+++ b/tests/tests2/Makefile
@@ -1,14 +1,16 @@
 TOP = ../..
-include $(TOP)/Makefile
+include $(TOP)/config.mak
+SRC = $(TOPSRC)/tests/tests2
+VPATH = $(SRC)
 
 # run local version of tcc with local libraries and includes
-TCCFLAGS = -B$(TOP) -I$(TOP)
+TCCFLAGS = -B$(TOP) -I$(TOPSRC)/include
 ifdef CONFIG_WIN32
- TCCFLAGS = -B$(TOP)/win32 -I$(TOP)/include -I$(TOP) -L$(TOP)
+ TCCFLAGS = -B$(TOPSRC)/win32 -I$(TOPSRC)/include -L$(TOP)
 endif
 TCC = $(TOP)/tcc $(TCCFLAGS)
 
-TESTS = $(patsubst %.c,%.test,$(sort $(wildcard *.c)))
+TESTS = $(patsubst %.c,%.test,$(sort $(notdir $(wildcard $(SRC)/*.c))))
 
 # 34_array_assignment.test -- array assignment is not in C standard
 SKIP = 34_array_assignment.test
@@ -34,15 +36,16 @@ endif
 # Some tests might need arguments
 ARGS =
 31_args.test : ARGS = arg1 arg2 arg3 arg4 arg5
-46_grep.test : ARGS = '[^* ]*[:a:d: ]+\:\*-/: $$' 46_grep.c
+46_grep.test : ARGS = '[^* ]*[:a:d: ]+\:\*-/: $$' $(SRC)/46_grep.c
 
 # Some tests might need different flags
 76_dollars_in_identifiers.test : TCCFLAGS += -fdollars-in-identifiers
 
+# Filter source directory in warnings/errors (out-of-tree builds)
+FILTER = 2>&1 | sed 's,$(SRC)/,,g'
 # Filter some always-warning
-FILTER =
 ifeq (-$(findstring arm,$(ARCH))-,-arm-)
-FILTER = 2>&1 | grep -v 'warning: soft float ABI currently not supported'
+FILTER += 2>&1 | grep -v 'warning: soft float ABI currently not supported'
 endif
 
 all test: $(filter-out $(SKIP),$(TESTS))
@@ -51,10 +54,7 @@ all test: $(filter-out $(SKIP),$(TESTS))
 	@echo Test: $*...
 # test -run
 	@$(TCC) -run $< $(ARGS) $(FILTER) >$*.output 2>&1 || true
-	@diff -Nbu $*.expect $*.output && rm -f $*.output
-# test exe (disabled for speed)
-#	 @($(TCC) $(FLAGS) $< -o $*.exe && ./$*.exe $(ARGS)) $(FiLTER) >$*.output2 2>&1 ; \
-#	     diff -Nbu $*.expect $*.output2 && rm -f $*.output2 $*.exe
+	@diff -Nbu $(SRC)/$*.expect $*.output && rm -f $*.output
 
 # automatically generate .expect files with gcc:
 %.expect :