diff -urp --strip-trailing-cr ../drupal-6.x-dev/includes/file.inc ./includes/file.inc
--- ../drupal-6.x-dev/includes/file.inc	2007-12-19 22:40:04.000000000 +0100
+++ ./includes/file.inc	2007-12-21 00:31:47.000000000 +0100
@@ -959,7 +963,7 @@ function file_directory_temp() {
  * @return A string containing the path to Drupal's 'files' directory.
  */
 function file_directory_path() {
-  return variable_get('file_directory_path', 'files');
+  return variable_get('file_directory_path', 'sites/default/files');
 }
 
 /**
diff -urp --strip-trailing-cr ../drupal-6.x-dev/INSTALL.txt ./INSTALL.txt
--- ../drupal-6.x-dev/INSTALL.txt	2007-12-19 18:45:41.000000000 +0100
+++ ./INSTALL.txt	2007-12-20 23:49:23.000000000 +0100
@@ -72,16 +72,14 @@ INSTALLATION
 
      chmod o+w sites/default
 
-3. CREATE AND GRANT WRITE PERMISSIONS TO FILES DIRECTORY
+3. GRANT WRITE PERMISSIONS TO FILES DIRECTORY
 
    Drupal requires the files directory be present and writable during
    the installation (the location of the files directory can be changed
-   after Drupal is installed). Use the following commands (from the
-   installation directory) to create this directory and grant the
-   web server write privileges to it:
+   after Drupal is installed). Use the following command (from the
+   installation directory) to grant the web server write privileges to it:
 
-     mkdir files
-     chmod o+w files
+     chmod o+w sites/default/files
 
 4. CREATE THE DRUPAL DATABASE
 
@@ -137,16 +135,11 @@ INSTALLATION
 
      * your site runs multiple Drupal installations from a single codebase
        (modify the file system path of each installation to a different
-       directory so that uploads do not overlap between installations);
+       directory so that uploads do not overlap between installations); or,
 
      * your site runs a number of web server front-ends behind a load
        balancer or reverse proxy (modify the file system path on each
-       server to point to a shared file repository); or,
-
-     * your site policies specify that all site-related files are stored
-       under the sites directory in order to simplify backup and restore
-       operations (modify the file system path to point to a newly-created
-       directory underneath sites).
+       server to point to a shared file repository).
 
    To modify the file system path:
 
diff -urp --strip-trailing-cr ../drupal-6.x-dev/modules/system/system.install ./modules/system/system.install
--- ../drupal-6.x-dev/modules/system/system.install	2007-12-19 23:18:15.000000000 +0100
+++ ./modules/system/system.install	2007-12-21 00:38:09.000000000 +0100
@@ -151,6 +151,14 @@ function system_requirements($phase) {
 
   // Test files directory
   $directory = file_directory_path();
+
+  // For installer, create the directory if possible.
+  if ($phase == 'install' && !is_dir($directory)) {
+    if (@mkdir($directory)) {
+      @chmod($directory, 0775); // Necessary for non-webserver users.
+    }
+  }
+
   $is_writable = is_writable($directory);
   $is_directory = is_dir($directory);
   if (!$is_writable || !$is_directory) {
@@ -170,7 +178,7 @@ function system_requirements($phase) {
     else if ($phase == 'install') {
       // For the installer UI, we need different wording. 'value' will
       // be treated as version, so provide none there.
-      $requirements['file system']['description'] = $error .' '. $t('To proceed with the installation, please ensure that the files directory exists and is writable by the installer. If you are unsure how to create this directory and modify its permissions, please consult the <a href="@handbook_url">on-line handbook</a> or INSTALL.txt.', array('%directory' => $directory, '@handbook_url' => 'http://drupal.org/getting-started'));
+      $requirements['file system']['description'] = $error .' '. $t('This means, that an automated attempt to create the directory failed. To proceed with the installation, please ensure that the directory may be created, or else create it and/or make it writable for the installer manually. If you are unsure how to create this directory and modify its permissions, please consult the <a href="@handbook_url">on-line handbook</a> or INSTALL.txt.', array('@handbook_url' => 'http://drupal.org/getting-started'));
       $requirements['file system']['value'] = '';
     }
   }