diff --git a/simgear/package/CatalogTest.cxx b/simgear/package/CatalogTest.cxx
index f61763c2..8e752e82 100644
--- a/simgear/package/CatalogTest.cxx
+++ b/simgear/package/CatalogTest.cxx
@@ -593,7 +593,7 @@ void testInstallArchiveType(HTTP::Client* cl)
     SGPath p(rootPath);
     p.append("org.flightgear.test.catalog1");
     p.append("Aircraft");
-    p.append("movies_6789"); // FIXME once archive-dir support is decided
+    p.append("movies");
     
     SG_CHECK_EQUAL(p, ins->path());
     
diff --git a/simgear/package/Install.cxx b/simgear/package/Install.cxx
index 96cd11e6..78272005 100644
--- a/simgear/package/Install.cxx
+++ b/simgear/package/Install.cxx
@@ -169,7 +169,12 @@ protected:
 
         // build a path like /path/to/packages/org.some.catalog/Aircraft/extract_xxxx/MyAircraftDir
         SGPath extractedPath = m_extractPath;
-        extractedPath.append(m_owner->package()->dirName());
+        if (m_owner->package()->properties()->hasChild("archive-path")) {
+            extractedPath.append(m_owner->package()->properties()->getStringValue("archive-path"));
+        } else {
+            extractedPath.append(m_owner->package()->dirName());
+        }
+
 
         // rename it to path/to/packages/org.some.catalog/Aircraft/MyAircraftDir
         bool ok = extractedPath.rename(m_owner->path());
@@ -179,6 +184,8 @@ protected:
         }
 
         // extract_xxxx directory is now empty, so remove it
+        // (note it might not be empty if the archive contained some other
+        // files, but we delete those in such a case
         if (m_extractPath.exists()) {
             simgear::Dir(m_extractPath).remove();
         }
diff --git a/simgear/package/catalogTest1/catalog.xml b/simgear/package/catalogTest1/catalog.xml
index 1b8b7b59..2a46604f 100644
--- a/simgear/package/catalogTest1/catalog.xml
+++ b/simgear/package/catalogTest1/catalog.xml
@@ -183,10 +183,11 @@
         <id>movies</id>
         <name>movies files for test catalog aircraft</name>
         <revision>10</revision>
-        <dir>movies_6789</dir>
+        <dir>movies</dir>
         <!-- url has no file extension, instead we set arcive-type -->
         <url>http://localhost:2000/catalogTest1/movies?wierd=foo;bar=thing</url>
         <archive-type>zip</archive-type>
+        <archive-path>movies_6789</archive-path>
         <file-size-bytes>232</file-size-bytes>
         <md5>e5f89c3f1ed1bdda16174c868f3c7b30</md5>
     </package>