diff --git a/colorbox.admin.inc b/colorbox.admin.inc
index 4f8946a..94ac810 100644
--- a/colorbox.admin.inc
+++ b/colorbox.admin.inc
@@ -11,7 +11,30 @@
 function colorbox_admin_settings() {
   drupal_add_js(drupal_get_path('module', 'colorbox') . '/js/colorbox_admin_settings.js', array('preprocess' => FALSE));
 
-  $colorbox_path = variable_get('colorbox_path', COLORBOX_PATH);
+  $colorbox_path = colorbox_get_path();
+
+  $form['colorbox_plugin_settings'] = array(
+    '#type' => 'fieldset',
+    '#title' => t('Colorbox plugin settings'),
+    '#collapsible' => TRUE,
+    '#collapsed' => TRUE
+  );
+  $form['colorbox_plugin_settings']['colorbox_path'] = array(
+    '#type' => 'textfield',
+    '#title' => t('Path'),
+    '#default_value' => $colorbox_path,
+    '#description' => t('The location where Colorbox plugin is installed. Relative paths are from the Drupal root directory.'),
+    '#after_build' => array('_colorbox_admin_settings_check_plugin_path'),
+  );
+  $form['colorbox_plugin_settings']['colorbox_compression_type'] = array(
+    '#type' => 'radios',
+    '#title' => t('Choose Colorbox compression level'),
+    '#options' => array(
+      'min' => t('Production (Minified)'),
+      'none' => t('Development (Uncompressed Code)'),
+    ),
+    '#default_value' => variable_get('colorbox_compression_type', 'min'),
+  );
 
   if (module_exists('image')) {
     $form['colorbox_imagefield'] = array(
@@ -303,21 +326,6 @@ function colorbox_admin_settings() {
     '#prefix' => '<div class="colorbox-title-trim-settings' . $js_hide . '">',
     '#suffix' => '</div>',
   );
-  $form['colorbox_advanced_settings']['colorbox_path'] = array(
-    '#type' => 'textfield',
-    '#title' => t('Path to Colorbox'),
-    '#default_value' => $colorbox_path,
-    '#description' => t('Enter the path relative to Drupal root where the Colorbox plugin directory is located. NO trailing slash!'),
-  );
-  $form['colorbox_advanced_settings']['colorbox_compression_type'] = array(
-    '#type' => 'radios',
-    '#title' => t('Choose Colorbox compression level'),
-    '#options' => array(
-      'min' => t('Production (Minified)'),
-      'none' => t('Development (Uncompressed Code)'),
-    ),
-    '#default_value' => variable_get('colorbox_compression_type', 'min'),
-  );
   $form['colorbox_advanced_settings']['colorbox_pages'] = array(
     '#type' => 'textarea',
     '#title' => t('Deactivate Colorbox on specific pages'),
@@ -328,3 +336,19 @@ function colorbox_admin_settings() {
   return system_settings_form($form);
 }
 
+/**
+ * Checks if the directory in $form_element exists and contains a file named
+ * 'jquery.colorbox.js'. If validation fails, the form element is flagged
+ * with an error from within the file_check_directory function.
+ *
+ * @param $form_element
+ *   The form element containing the name of the directory to check.
+ */
+function _colorbox_admin_settings_check_plugin_path($form_element) {
+  $library_path = $form_element['#value'];
+  if (!is_dir($library_path) || !(file_exists($library_path .'/colorbox/jquery.colorbox.js') && file_exists($library_path .'/colorbox/jquery.colorbox-min.js'))) {
+    form_set_error($form_element['#parents'][0], t('You need to download the !colorbox and extract the entire contents of the archive into the %path folder of your server.', array('!colorbox' => l(t('Colorbox plugin'), 'http://colorpowered.com/colorbox/'), '%path' => $library_path)));
+  }
+
+  return $form_element;
+}
diff --git a/colorbox.install b/colorbox.install
index c2ceb12..43e4030 100644
--- a/colorbox.install
+++ b/colorbox.install
@@ -13,21 +13,22 @@ function colorbox_requirements($phase) {
 
   if ($phase == 'runtime') {
     $t = get_t();
-    $status = _colorbox_status();
+    $library_path = colorbox_get_path();
+    $colorbox_version = colorbox_get_version();
 
-    if (!$status['colorbox_plugin']) {
+    if (version_compare($colorbox_version, COLORBOX_MIN_PLUGIN_VERSION, '>=')) {
       $requirements['colorbox_plugin'] = array(
         'title' => $t('Colorbox plugin'),
-        'value' => $t('At least @a', array('@a' => COLORBOX_MIN_PLUGIN_VERSION)),
-        'severity' => REQUIREMENT_ERROR,
-        'description' => $t('You need to download the !colorbox and extract the entire contents of the archive into the %path folder of your server.', array('!colorbox' => l(t('Colorbox plugin'), 'http://colorpowered.com/colorbox/'), '%path' => 'sites/all/libraries')),
+        'severity' => REQUIREMENT_OK,
+        'value' => $colorbox_version,
       );
     }
     else {
       $requirements['colorbox_plugin'] = array(
         'title' => $t('Colorbox plugin'),
-        'severity' => REQUIREMENT_OK,
-        'value' => colorbox_get_version(),
+        'value' => $t('At least @a', array('@a' => COLORBOX_MIN_PLUGIN_VERSION)),
+        'severity' => REQUIREMENT_ERROR,
+        'description' => $t('You need to download the !colorbox and extract the entire contents of the archive into the %path folder of your server.', array('!colorbox' => l(t('Colorbox plugin'), 'http://colorpowered.com/colorbox/'), '%path' => $library_path)),
       );
     }
   }
diff --git a/colorbox.module b/colorbox.module
index f26f496..46d5046 100644
--- a/colorbox.module
+++ b/colorbox.module
@@ -134,25 +134,6 @@ function _colorbox_form_page_access($form_id) {
 }
 
 /**
- * Check Colorbox dependencies, Colorbox plugin.
- *
- * @return
- *   array with TRUE/FALSE for each dependency.
- *
- * @see colorbox_requirements()
- */
-function _colorbox_status() {
-  $status = array();
-  $status['colorbox_plugin'] = FALSE;
-
-  if (version_compare(colorbox_get_version(), COLORBOX_MIN_PLUGIN_VERSION, '>=')) {
-    $status['colorbox_plugin'] = TRUE;
-  }
-
-  return $status;
-}
-
-/**
  * Check if Colorbox should be active for the current URL.
  *
  * @return
@@ -244,7 +225,7 @@ function _colorbox_doheader() {
   }
 
   // Add and initialise the Colorbox plugin.
-  drupal_add_js(colorbox_get_path());
+  drupal_add_js(colorbox_get_js());
   drupal_add_js($path . '/js/colorbox.js');
 
   // Add JS and CSS based on selected style.
@@ -286,30 +267,73 @@ function _colorbox_doheader() {
  *
  * @see version_compare()
  */
-function colorbox_get_version($colorbox_path = NULL) {
+function colorbox_get_version($colorbox_js = NULL) {
   $version = 0;
   $pattern = '#ColorBox v([0-9\.a-z]+)#';
 
   // No file is passed in so use the default location.
-  if (is_null($colorbox_path)) {
-    $colorbox_path = colorbox_get_path();
+  if (is_null($colorbox_js)) {
+    $colorbox_js = colorbox_get_js();
   }
 
-  // Return the version of Colorbox plugin.
-  $colorbox_plugin = file_get_contents($colorbox_path, NULL, NULL, 0, 32);
-  if (preg_match($pattern, $colorbox_plugin, $matches)) {
-    $version = $matches[1];
+  // Return the version of Colorbox plugin, it it exists.
+  if (file_exists($colorbox_js)) {
+    $colorbox_plugin = file_get_contents($colorbox_js, NULL, NULL, 0, 32);
+    if (preg_match($pattern, $colorbox_plugin, $matches)) {
+      $version = $matches[1];
+    }
   }
 
   return $version;
 }
 
 /**
+ * Return the JS filename for Colorbox plugin.
+ *
+ * @return
+ *   Boolean indicating if the JS is located.
+ */
+function colorbox_get_js() {
+  $library_path = colorbox_get_path();
+
+  if (file_exists($library_path .'/colorbox/jquery.colorbox.js') && file_exists($library_path .'/colorbox/jquery.colorbox-min.js')) {
+    $colorbox_js_map = array('none' => 'jquery.colorbox.js', 'min' => 'jquery.colorbox-min.js');
+    $colorbox_js = $colorbox_js_map[variable_get('colorbox_compression_type', 'min')];
+    return $library_path .'/colorbox/'. $colorbox_js;
+  }
+  else {
+    drupal_set_message(t('You need to download the !colorbox and extract the entire contents of the archive into the %path folder of your server.', array('!colorbox' => l(t('Colorbox plugin'), 'http://colorpowered.com/colorbox/'), '%path' => $library_path)), 'error', FALSE);
+    return FALSE;
+  }
+}
+
+/**
  * Return the path to the Colorbox plugin.
  */
 function colorbox_get_path() {
-  $colorbox_file = array('none' => 'jquery.colorbox.js', 'min' => 'jquery.colorbox-min.js');
-  return variable_get('colorbox_path', COLORBOX_PATH) . '/colorbox/' . $colorbox_file[variable_get('colorbox_compression_type', 'min')];
+  static $library_path = NULL;
+
+  // Try to locate the library path in any possible setup.
+  if ($library_path == NULL) {
+    // First check the default location.
+    $path = variable_get('colorbox_path', COLORBOX_PATH);
+    if (is_dir($path .'/colorbox')) {
+      $library_path = $path;
+    }
+    // Ask the libraries module as a fallback.
+    elseif ($library_path == NULL && module_exists('libraries')) {
+      if ($path = libraries_get_path('colorbox')) {
+        $library_path = $path;
+        variable_set('colorbox_path', $library_path);
+      }
+    }
+    // If no path is found suggest the default one.
+    elseif ($library_path == NULL) {
+      $library_path = COLORBOX_PATH;
+    }
+  }
+
+  return $library_path;
 }
 
 /**