diff -Nru gradle-1.0/subprojects/core-impl/src/main/groovy/org/gradle/api/internal/artifacts/mvnsettings/DefaultMavenFileLocations.java gradle-1.0-gil/subprojects/core-impl/src/main/groovy/org/gradle/api/internal/artifacts/mvnsettings/DefaultMavenFileLocations.java
--- gradle-1.0/subprojects/core-impl/src/main/groovy/org/gradle/api/internal/artifacts/mvnsettings/DefaultMavenFileLocations.java	2012-04-25 01:27:12.000000000 +0200
+++ gradle-1.0-gil/subprojects/core-impl/src/main/groovy/org/gradle/api/internal/artifacts/mvnsettings/DefaultMavenFileLocations.java	2012-08-27 10:50:25.368165545 +0200
@@ -31,7 +31,7 @@
 
     @Nullable
     public File getGlobalMavenDir() {
-        String m2Home = System.getProperty("M2_HOME");
+        String m2Home = System.getenv("M2_HOME");
         if (m2Home == null) {
             return null;
         }
diff -Nru gradle-1.0/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java gradle-1.0-gil/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java
--- gradle-1.0/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java	2012-04-25 01:27:12.000000000 +0200
+++ gradle-1.0-gil/subprojects/ui/src/main/java/org/gradle/gradleplugin/userinterface/swing/standalone/Application.java	2012-08-27 10:50:25.368165545 +0200
@@ -307,7 +307,7 @@
      * @return the file that we save our settings to.
      */
     private File getSettingsFile() {
-        return new File(System.getProperty("user.dir"), "gradle-app" + SETTINGS_EXTENSION);
+        return new File(System.getProperty("user.home"), "gradle-app" + SETTINGS_EXTENSION);
     }
 
     private class SettingsImportInteraction implements DOM4JSerializer.ImportInteraction {