diff --git a/private_files.module b/private_files.module
index e928ec5..376e8fa 100644
--- a/private_files.module
+++ b/private_files.module
@@ -36,32 +36,37 @@
   * Implementation of system_settings_form().
   */
   function private_files_settings($form, $form_state) {
-    if(file_default_scheme() == 'public') {
+
+    // Terminate this form with a message if private path is not set.
+    if (!variable_get('file_private_path', FALSE)) {
+      // @todo Add link to file system config page.
       drupal_set_message("You need to enable the private file system before you setup this module.", "error");
+      return;
     }
-    else {
-      $options = array();
-      foreach(scandir("private://") as $folder) {
-        if($folder != '..' && $folder != '.' && $folder != '' && is_dir("private://".$folder)) {
-          $options[$folder] = $folder;
-          $default = variable_get('private_files_folder_'.$folder);
-          if(!isset($default)) { 
-            variable_set('private_files_folder_'.$folder, 'all');
-          }
+
+    // @todo Add some description to the form and/or the the radio's.
+    $options = array();
+    foreach(scandir("private://") as $folder) {
+      if($folder != '..' && $folder != '.' && $folder != '' && is_dir("private://".$folder)) {
+        $options[$folder] = $folder;
+        $default = variable_get('private_files_folder_'.$folder);
+        if(!isset($default)) { 
+          variable_set('private_files_folder_'.$folder, 'all');
         }
       }
-      foreach($options as $folder) {
-        $form['private_files_folder_'.$folder] = array(
-          '#type' => "radios",
-          '#title' => $folder,
-          '#default_value' => variable_get('private_files_folder_'.$folder, ''),
-          '#options' => array("all" => "Everyone", "users" => "Logged In Users", "owner" => "File Owner"),
-        );
-      }
+    }
+    // @todo: handle the case when no folders are found.
+    foreach($options as $folder) {
+      $form['private_files_folder_'.$folder] = array(
+        '#type' => "radios",
+        '#title' => $folder,
+        '#default_value' => variable_get('private_files_folder_'.$folder, ''),
+        '#options' => array("all" => "Everyone", "users" => "Logged In Users", "owner" => "File Owner"),
+      );
     }
     return system_settings_form($form);
   }
-  
+
   /**
   * Implementation of hook_file_download().
   */