diff --git a/ChangeLog b/ChangeLog
index 8de05dc..b521e29 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -2,6 +2,10 @@
 # Copyright 2006-2007 Gentoo Foundation; Distributed under the GPL v2
 # $Header: $
 
+  15 Jan 2007; Chris Gianelloni <wolf31o2@gentoo.org> gen_bootloader.sh:
+  Changed basename to dirname when creating the directory from grub.conf to
+  solve bug #161716.
+
   09 Jan 2007; Chris Gianelloni <wolf31o2@gentoo.org> alpha/modules_load,
   x86/modules_load, x86_64/modules_load, xen0/modules_load,
   xenU/modules_load:
diff --git a/gen_bootloader.sh b/gen_bootloader.sh
index c484b37..9fa25b4 100644
--- a/gen_bootloader.sh
+++ b/gen_bootloader.sh
@@ -39,7 +39,7 @@ EOF
 	[ ! -d ${TEMP} ] && rm -r ${TEMP}
 	
 	# Create grub configuration directory and file if it doesn't exist.
-	[ ! -e `basename $GRUB_CONF` ] && mkdir -p `basename $GRUB_CONF`
+	[ ! -e `dirname $GRUB_CONF` ] && mkdir -p `dirname $GRUB_CONF`
 
 	if [ ! -e $GRUB_CONF ]
 	then