diff --git a/node_modules/vfs-local/localfs.js b/node_modules/vfs-local/localfs.js
index 95553303..5bad28f3 100644
--- a/node_modules/vfs-local/localfs.js
+++ b/node_modules/vfs-local/localfs.js
@@ -65,9 +65,14 @@ function logToFile(message){
 
 module.exports = function setup(fsOptions) {
     var pty;
+    if (fsOptions.nodePath) {
+        process.env.NODE_PATH = fsOptions.nodePath;
+        require("module")._initPaths();
+    }
     if (!fsOptions.nopty) {
         // on darwin trying to load binary for a wrong version crashes the process
-        [process.env.HOME + "/.c9/node_modules/pty.js", "pty.js", "pty.nw.js"].some(function(p) {
+        [(fsOptions.nodePath || process.env.HOME + "/.c9/node_modules") + "/pty.js",
+            "pty.js", "pty.nw.js"].some(function(p) {
             try {
                 pty = require(p);
                 return true;
diff --git a/package.json b/package.json
index 3e78dff1..89ee11d6 100644
--- a/package.json
+++ b/package.json
@@ -67,7 +67,7 @@
         "c9.ide.language.javascript.tern": "#2b0bb024da",
         "c9.ide.language.javascript.infer": "#cfec494a3c",
         "c9.ide.language.jsonalyzer": "#ba3e0d298c",
-        "c9.ide.collab": "#a228af3bc9",
+        "c9.ide.collab": "#f38dcd432e",
         "c9.ide.local": "#a9703b630c",
         "c9.ide.find": "#6cc6d3379d",
         "c9.ide.find.infiles": "#72582de3cd",