diff --git a/INSTALL.txt b/INSTALL.txt
index ec437cf..4e4897b 100644
--- a/INSTALL.txt
+++ b/INSTALL.txt
@@ -14,10 +14,10 @@ still supported, but this might change in the future.)
 
 [1] http://code.google.com/p/solr-php-client/downloads/list
 
-Afterwards, unpack this archive to drupal's libraries folder, so the directory
+Afterwards, unpack this archive to Drupal's libraries folder, so the directory
 tree looks like this:
 
-/path/to/drupal/sites/all/libraries/
+DRUPAL_ROOT/sites/all/libraries/
   |- SolrPhpClient
      |- Apache/
      |- ChangeLog
@@ -25,15 +25,24 @@ tree looks like this:
 
 The library should then be found by the module.
 
+Note: If you have the Libraries API [2] module installed, you can also place the
+library into any other directory recognized by the Libraries API, e.g.
+(depending on the module version):
+- DRUPAL_ROOT/libraries
+- DRUPAL_ROOT/profiles/PROFILE/libraries
+- DRUPAL_ROOT/sites/CONF_DIR/libraries
+
+[2] http://drupal.org/project/libraries
+
 Setting up Solr
 ---------------
 
 In order for this module to work, you will first need to set up a Solr server.
 Download the latest stable version of Solr (1.4.1 at the time of this writing)
-from [2] and unpack the archive somewhere outside of your web server's document
+from [3] and unpack the archive somewhere outside of your web server's document
 tree.
 
-[2] http://www.apache.org/dyn/closer.cgi/lucene/solr/
+[3] http://www.apache.org/dyn/closer.cgi/lucene/solr/
 
 For small websites, using the example application, located in $SOLR/example/,
 usually suffices. In any case, you can use it for developing andd testing. The
@@ -49,9 +58,9 @@ issue the following command (assuming Java is correctly installed):
 
 java -jar start.jar
 
-Afterwards, go to [3] in your web browser to ensure Solr is running correctly.
+Afterwards, go to [4] in your web browser to ensure Solr is running correctly.
 
-[3] http://localhost:8983/solr/admin/
+[4] http://localhost:8983/solr/admin/
 
 You can then enable this module and create a new server, using the "Solr search"
 service class. Enter the hostname, port and path corresponding to your Solr
diff --git a/search_api_solr.module b/search_api_solr.module
index 02730ea..f90791c 100644
--- a/search_api_solr.module
+++ b/search_api_solr.module
@@ -12,26 +12,51 @@ function search_api_solr_init() {
 }
 
 /**
+ * Return path to SolrPhpClient library path, or FALSE if not found.
+ */
+function _search_api_solr_solrphpclient_path() {
+  static $path = NULL;
+
+  if (!isset($path)) {
+    $path = FALSE;
+    // If Libraries API is installed, we first use that to try and find the
+    // library. Otherwise we manually check a few locations.
+    $search_dir = array();
+    if (function_exists('libraries_get_path')) {
+      $search_dir[] = libraries_get_path('SolrPhpClient');
+    }
+    else {
+      $search_dir[] = 'sites/all/libraries/SolrPhpClient';
+    }
+    $search_dir[] = drupal_get_path('module', 'search_api_solr') . '/SolrPhpClient';
+    foreach ($search_dir as $dir) {
+      $dir = DRUPAL_ROOT . '/' . $dir;
+      if (is_dir($dir)) {
+        $path = $dir;
+        break;
+      }
+    }
+  }
+
+  if ($path == FALSE) {
+    throw new Exception('SolrPhpClient library not found! Please follow the instructions in search_api_solr/INSTALL.txt for installing the Solr search module.');
+  }
+
+  return $path;
+}
+
+/**
  * Autoloader for the SolrPhpClient classes.
  */
 function _search_api_solr_autoload($name) {
-  static $path, $lookup_cache = array();
+  static $lookup_cache = array();
 
   if (isset($lookup_cache[$name])) {
     return $lookup_cache[$name];
   }
   elseif (substr($name, 0, 11) == 'Apache_Solr') {
-    if (!isset($path)) {
-      foreach (array(dirname(__FILE__), DRUPAL_ROOT . '/sites/all/libraries', NULL) as $path) {
-        if (!$path || is_dir($path .=  '/SolrPhpClient/')) {
-          break;
-        }
-      }
-      if (!$path) {
-        throw new Exception('SolrPhpClient library not found! Please follow the instructions in search_api_solr/INSTALL.txt for installing the Solr search module.');
-      }
-    }
-    if (file_exists($file_path = $path . str_replace('_', '/', $name) . '.php')) {
+    $path = _search_api_solr_solrphpclient_path();
+    if (file_exists($file_path = $path . '/' . str_replace('_', '/', $name) . '.php')) {
       require_once $file_path;
       $lookup_cache[$name] = TRUE;
       return TRUE;