diff --git a/Makefile.am b/Makefile.am
index c609ffa..904aeb4 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,4 +1,4 @@
-SUBDIRS = include src
+SUBDIRS = modbus tests
 
 pkgconfigdir = $(libdir)/pkgconfig
 pkgconfig_DATA = modbus.pc
diff --git a/configure.ac b/configure.ac
index 502ecd3..f3d0191 100644
--- a/configure.ac
+++ b/configure.ac
@@ -24,11 +24,9 @@ AC_FUNC_MALLOC
 AC_FUNC_SELECT_ARGTYPES
 AC_CHECK_FUNCS([inet_ntoa memset select socket])
 
-AC_SUBST(modbus_pkgdeps)
 AC_OUTPUT([
 Makefile
-src/Makefile
-include/Makefile
-include/modbus/Makefile
+modbus/Makefile
+tests/Makefile
 modbus.pc
 ])
diff --git a/include/Makefile.am b/include/Makefile.am
deleted file mode 100644
index 09b00d9..0000000
--- a/include/Makefile.am
+++ /dev/null
@@ -1,3 +0,0 @@
-## Process this file with automake to produce Makefile.in
-
-SUBDIRS = modbus
diff --git a/include/modbus/Makefile.am b/modbus/Makefile.am
index 41b5fa7..4efe9c6 100644
--- a/include/modbus/Makefile.am
+++ b/modbus/Makefile.am
@@ -1,5 +1,10 @@
-## Process this file with automake to produce Makefile.in
+lib_LTLIBRARIES = libmodbus.la
+libmodbus_la_SOURCES = modbus.c modbus.h
+libmodbus_la_LDFLAGS = -version-info 2:0:0
 
 # Include files to install
 libmodbusincludedir = $(includedir)/modbus
-libmodbusinclude_HEADERS = modbus.h
\ No newline at end of file
+libmodbusinclude_HEADERS = modbus.h
+
+INCLUDES = -I$(top_srcdir)
+CLEANFILES = *~
diff --git a/src/modbus.c b/modbus/modbus.c
index 00bb0f8..00bb0f8 100644
--- a/src/modbus.c
+++ b/modbus/modbus.c
diff --git a/include/modbus/modbus.h b/modbus/modbus.h
index 59ae7bc..59ae7bc 100644
--- a/include/modbus/modbus.h
+++ b/modbus/modbus.h
diff --git a/modbus/wscript b/modbus/wscript
new file mode 100644
index 0000000..ae50800
--- /dev/null
+++ b/modbus/wscript
@@ -0,0 +1,8 @@
+def build(bld):
+    obj = bld.create_obj('cc', 'shlib')
+    obj.source = 'modbus.c'
+    obj.includes = '.'
+    obj.target = 'modbus'
+    obj.vnum = '2.0.0'
+
+    install_files('PREFIX', 'include/modbus', 'modbus.h')
diff --git a/src/Makefile.am b/src/Makefile.am
deleted file mode 100644
index 2c29b3f..0000000
--- a/src/Makefile.am
+++ /dev/null
@@ -1,12 +0,0 @@
-lib_LTLIBRARIES = libmodbus.la
-libmodbus_la_SOURCES = modbus.c modbus.h
-
-bin_PROGRAMS = test-modbus-master test-modbus-slave
-test_modbus_master_SOURCES = test-modbus-master.c
-test_modbus_master_LDADD = libmodbus.la
-
-test_modbus_slave_SOURCES = test-modbus-slave.c
-test_modbus_slave_LDADD = libmodbus.la
-
-INCLUDES = -I$(top_srcdir)/include
-CLEANFILES = *~
diff --git a/tests/Makefile.am b/tests/Makefile.am
new file mode 100644
index 0000000..6f0729e
--- /dev/null
+++ b/tests/Makefile.am
@@ -0,0 +1,15 @@
+noinst_PROGRAMS = \
+	test-modbus-master \
+	test-modbus-slave
+
+common_ldflags = \
+	$(top_builddir)/modbus/libmodbus.la
+
+test_modbus_master_SOURCES = test-modbus-master.c
+test_modbus_master_LDADD = $(common_ldflags)
+
+test_modbus_slave_SOURCES = test-modbus-slave.c
+test_modbus_slave_LDADD = $(common_ldflags)
+
+INCLUDES = -I$(top_srcdir)
+CLEANFILES = *~
diff --git a/src/test-modbus-master.c b/tests/test-modbus-master.c
index 8c8091e..8c8091e 100644
--- a/src/test-modbus-master.c
+++ b/tests/test-modbus-master.c
diff --git a/src/test-modbus-slave.c b/tests/test-modbus-slave.c
index bc6e348..bc6e348 100644
--- a/src/test-modbus-slave.c
+++ b/tests/test-modbus-slave.c
diff --git a/src/wscript b/tests/wscript
index fe9c145..2c5b6e7 100644
--- a/src/wscript
+++ b/tests/wscript
@@ -1,19 +1,14 @@
 def build(bld):
-    obj = bld.create_obj('cc', 'shlib')
-    obj.source = 'modbus.c'
-    obj.includes = '.'
-    obj.uselib = 'GLIB'
-    obj.target = 'modbus'
-    obj.vnum = '1.2.4'
-
     obj = bld.create_obj('cc', 'program')
     obj.source = 'test-modbus-master.c'
     obj.includes = '.'
     obj.uselib_local = 'modbus'
     obj.target = 'test-modbus-master'
+    obj.inst_var = 0
 
     obj = bld.create_obj('cc', 'program')
     obj.source = 'test-modbus-slave.c'
     obj.includes = '.'
     obj.uselib_local = 'modbus'
     obj.target = 'test-modbus-slave'
+    obj.inst_var = 0
diff --git a/wscript b/wscript
index 4088f0f..2c5698c 100644
--- a/wscript
+++ b/wscript
@@ -8,9 +8,6 @@ APPNAME='libmodbus'
 srcdir = '.'
 blddir = 'build'
 
-def init():
-     print "A groovy libmodbus for Linux!"
-
 def set_options(opt):
      # options provided by the modules
      opt.tool_options('compiler_cc')
@@ -51,17 +48,18 @@ def configure(conf):
 def build(bld):
      import misc
 
-     bld.add_subdirs('src')  
+     bld.add_subdirs('modbus tests')  
 
      obj = bld.create_obj('subst')
      obj.source = 'modbus.pc.in'
      obj.target = 'modbus.pc'
-    
      obj.dict = {'VERSION' : VERSION, 
                  'prefix': bld.env()['PREFIX'], 
                  'exec_prefix': bld.env()['PREFIX'],
-                 'libdir': bld.env()['PREFIX'] + '/lib', 
-                 'includedir': bld.env()['PREFIX'] + '/include'}
+                 'libdir': bld.env()['PREFIX'] + 'lib', 
+                 'includedir': bld.env()['PREFIX'] + 'include'}
+
+     install_files('PREFIX', 'lib/pkgconfig', 'modbus.pc')
 
 def shutdown():
      import UnitTest