diff --git a/node_modules/vfs-child/parent.js b/node_modules/vfs-child/parent.js
index 733570c6..e47c0838 100644
--- a/node_modules/vfs-child/parent.js
+++ b/node_modules/vfs-child/parent.js
@@ -17,17 +17,32 @@ function Parent(fsOptions) {
     }
     options.stdio = options.customFds = [-1, -1, 2];
     var args = [require.resolve('./child.js'), JSON.stringify(fsOptions)];
-    var executablePath = process.execPath;
+    var nodeBin = fsOptions.nodeBin || [process.execPath];
     var child;
 
     // Override Consumer's connect since the transport logic is internal to this module
     this.connect = connect.bind(this);
     function connect(callback) {
-        child = spawn(executablePath, args, options);
+        child = spawn(nodeBin[0], args, options);
         child.stdin.readable = true;
-        Consumer.prototype.connect.call(this, [child.stdout, child.stdin], callback);
-        child.stdin.resume();
+        Consumer.prototype.connect.call(this, [child.stdout, child.stdin], tryNext);
         child.on("exit", disconnect);
+        child.on("error", tryNext);
+        child.stdin.resume();
+        var _self = this;
+        // try all possible locations of node before giving up
+        function tryNext(err, vfs) {
+            if (!child) return;
+            child.removeListener("error", tryNext);
+            if (err && err.code == "ENOENT" && nodeBin.length > 1) {
+                child = null;
+                nodeBin.shift();
+                _self.emit("error", err);
+                _self.connect(callback);
+            } else {
+                callback(err, vfs);
+            }
+        }
     }
 
     // Override Consumer's disconnect to kill the child process afterwards
diff --git a/node_modules/vfs-local/localfs.js b/node_modules/vfs-local/localfs.js
index 6e106dad..ed83b41e 100644
--- a/node_modules/vfs-local/localfs.js
+++ b/node_modules/vfs-local/localfs.js
@@ -60,34 +60,28 @@ function logToFile(message){
     
     });
 }
-
+console.error(process.env.PATH)
 ////////////////////////////////////////////////////////////////////////////////
 
 module.exports = function setup(fsOptions) {
     var pty;
     if (!fsOptions.nopty) {
-        var e1;
-        try {
-            pty = require('pty.js');
-        } catch(e) {
-            e1 = e;
-            
+        [fsOptions.homeDir + "/.c9/node_modules/pty.js", "pty.js", "pty.nw.js"].some(function(p) {
             try {
-                if (os.platform() == "darwin" && os.release() == "11.4.2") 
-                    throw new Error("Unsupported Platform " + os.platform() + " " + os.release());
-                    
-                pty = require('pty.nw.js');
-            } catch(e2) {
-                console.warn("unable to initialize pty.js:");
-                console.warn(e1, e2);
-                pty = function(){};
+                pty = require(p);
+                return true;
+            } catch(e) {
+                console.warn(e, p);
             }
-        }
+        });
+        if (!pty)
+            console.warn("unable to initialize pty.js:");
     }
-    else {
-        pty = function(){
+    if (!pty) {
+        pty = function(command, options, callback) {
             console.log("PTY is not supported.");
         };
+        pty.spawn = pty;
     }
 
     var TMUX       = fsOptions.tmuxBin || "tmux";
diff --git a/plugins/c9.vfs.extend/collab-server.js b/plugins/c9.vfs.extend/collab-server.js
index 89ac7283..96da46a1 100644
--- a/plugins/c9.vfs.extend/collab-server.js
+++ b/plugins/c9.vfs.extend/collab-server.js
@@ -22,6 +22,8 @@ var dbFilePath;
 var cachedWS;
 var cachedUsers;
 
+var Sequelize;
+
 var debug = false;
 
 function getHomeDir() {
@@ -39,18 +41,23 @@ function getProjectWD() {
  * npm: sqlite3 & sequelize
  */
 function installServer(callback) {
-    function checkInstalled() {
+    function checkInstalled(root) {
         try {
-            require("sqlite3");
-            require("sequelize");
+            require(root + "sqlite3");
+            Sequelize = require(root + "sequelize");
             return true;
         } catch (err) {
+            console.error(err);
             return false;
         }
     }
 
-    if (!checkInstalled()) {
-        var err = new Error("[vfs-collab] Missing dependencies - NODE_PATH: " + process.env.NODE_PATH + "; node " + process.version);
+    if (!checkInstalled(getHomeDir() + "/.c9/node_modules/") && !checkInstalled("")) {
+        var err = new Error("[vfs-collab] Couldn't load node modules sqlite3 and sequelize "
+            + "from " + getHomeDir() + "/.c9/node_modules/; "
+            + "node version: " + process.version + "; "
+            + "node execPath " + process.execPath
+            );
         err.code = "EFATAL";
         return callback(err);
     }
@@ -80,7 +87,6 @@ function wrapSeq(fun, next) {
  * @param {Function} callback
  */
 function initDB(readonly, callback) {
-    var Sequelize = require("sequelize");
     var MAX_LOG_LINE_LENGTH = 151;
 
     dbFilePath = dbFilePath || Path.join(getProjectWD(), "collab.db");
diff --git a/settings/standalone.js b/settings/standalone.js
index eb413831..c6f00ca9 100644
--- a/settings/standalone.js
+++ b/settings/standalone.js
@@ -16,8 +16,8 @@ module.exports = function(manifest, installPath) {
     
     if (win32 && process.env.HOME === undefined) {
         process.env.HOME = process.env.HOMEDRIVE + process.env.HOMEPATH;
-        if (!/msys\/bin|Git\/bin/.test(process.PATH))
-            process.PATH = path.join(process.env.HOME, ".c9", "msys/bin") + ";" + process.PATH;
+        if (!/msys\/bin|Git\/bin/.test(process.env.PATH))
+            process.env.PATH = path.join(process.env.HOME, ".c9", "msys/bin") + ";" + process.env.PATH;
     }
     
     var home = process.env.HOME;