--- pathauto.admin.inc	2010-02-20 19:27:45.000000000 +0100
+++ pathauto.admin.inc	2010-06-10 20:53:30.000000000 +0200
@@ -114,9 +114,9 @@
   );
 
   $disable_transliteration = TRUE;
-  $path = drupal_get_path('module', 'pathauto');
   $transliteration_help = t('When a pattern includes certain characters (such as those with accents) should Pathauto attempt to transliterate them into the ASCII-96 alphabet? Transliteration is determined by the i18n-ascii.txt file in the Pathauto directory. <strong>This option is disabled on your site because you do not have an i18n-ascii.txt file in the Pathauto directory.</strong>');
-  if (is_file($path .'/i18n-ascii.txt')) {
+    
+  if (_pathauto_get_i18n_location()) {
     $disable_transliteration = FALSE;
     $transliteration_help = t('When a pattern includes certain characters (such as those with accents) should Pathauto attempt to transliterate them into the ASCII-96 alphabet? Transliteration is determined by the i18n-ascii.txt file in the Pathauto directory.');
   }


--- pathauto.inc	2010-05-27 03:46:53.000000000 +0200
+++ pathauto.inc	2010-06-10 21:05:22.000000000 +0200
@@ -116,11 +116,10 @@
     static $i18n_loaded = false;
     static $translations = array();

-    if (!$i18n_loaded) {
-      $path = drupal_get_path('module', 'pathauto');
-      if (is_file($path .'/i18n-ascii.txt')) {
-        $translations = parse_ini_file($path .'/i18n-ascii.txt');
-      }
+    if (!$i18n_loaded) {    
+      if ($path = _pathauto_get_i18n_location()) {
+        $translations = parse_ini_file($path);
+      }        
       $i18n_loaded = true;
     }

@@ -546,3 +545,28 @@
   }
   return $maxlength;
 }
+
+/**
+ * Fetch path to the i18n-ascii.txt transliteration file
+ *
+ * @return
+ *   The complete path or FALSE.
+ */
+function _pathauto_get_i18n_location() {
+  $paths = array(
+    0 => conf_path(),
+    1 => 'sites/all',
+    2 => drupal_get_path('module', 'pathauto'),
+  );
+
+  $file = 'i18n-ascii.txt';
+      
+  foreach ($paths as $path) {
+    $current = $path .'/' . $file;
+
+    if (is_file($current)) {
+      return $current;
+    }
+  }
+  return false;
+}

--- INSTALL.txt	2008-06-21 20:20:38.000000000 +0200
+++ INSTALL.txt	2010-06-10 18:46:21.000000000 +0200
@@ -24,6 +24,11 @@
 You can then freely edit the i18n-ascii.txt without worrying that your changes 
 will be over-written by upgrades of Pathauto.

+In addition to the module directory, Pathauto looks for the i18n-ascii.txt file in the following locations:
+
+/sites/<yoursite>/
+/sites/all/
+
 For details on how to transliterate any UTF8 character, please see the full 
 i18n-ascii-fill.txt file information at http://drupal.org/node/185664