Index: module_builder.drush.inc
===================================================================
RCS file: /cvs/drupal-contrib/contributions/modules/module_builder/drush/module_builder.drush.inc,v
retrieving revision 1.1.2.68
diff -u -p -r1.1.2.68 module_builder.drush.inc
--- module_builder.drush.inc	26 Jan 2011 20:17:09 -0000	1.1.2.68
+++ module_builder.drush.inc	3 Feb 2011 03:43:27 -0000
@@ -464,7 +464,15 @@ function module_builder_drush_output_cod
     if (substr($module_dir, -1, 1) != '/') {
       $module_dir .= '/';
     }
-    
+
+    // If drush has appended 'contrib', hack it out and put the code in 'custom'.
+    if (substr($module_dir, -8, 7) == 'contrib') {
+      $module_custom_dir = substr_replace($module_dir, 'custom', -8, 7);
+      if(is_dir($module_custom_dir)) {
+        $module_dir = $module_custom_dir;
+      }
+    }
+
     if (drush_get_option('parent')) {
       // The --parent option allows the user to specify a location for the new module folder.
       $parent_dir = drush_get_option('parent');