--- daemon/Makefile.am 
+++ daemon/Makefile.am.fixed 
@@ -42,7 +42,7 @@
 %.service: %.service.in ../config.log
 	sed -e "s|\@libexecdir\@|$(libexecdir)|" $< > $@
 
-servicedir = $(DBUS_SERVICE_DIR)
+servicedir = $(DESTDIR)$(DBUS_SERVICE_DIR)
 service_in_files = gnome-vfs-daemon.service.in
 service_DATA = gnome-vfs-daemon.service