diff --git a/var/spack/packages/binutils/package.py b/var/spack/packages/binutils/package.py
index cac0a0407f936253d279eaea127e8fea0cf2d984..be5a9b714b408cd2ba53d5dea034ff00c573c36f 100644
--- a/var/spack/packages/binutils/package.py
+++ b/var/spack/packages/binutils/package.py
@@ -20,7 +20,8 @@ def install(self, spec, prefix):
             '--enable-multilib',
             '--enable-shared',
             '--enable-64-bit-bfd',
-            '--enable-targets=all']
+            '--enable-targets=all',
+            '--with-sysroot=/']
 
         if '+libiberty' in spec:
             configure_args.append('--enable-install-libiberty')
diff --git a/var/spack/packages/gcc/package.py b/var/spack/packages/gcc/package.py
index f58c1bd4169c730fbc3772752cc0493aee25dda4..b5dc585be79b28359b9e0d3c8b573c0df7440e01 100644
--- a/var/spack/packages/gcc/package.py
+++ b/var/spack/packages/gcc/package.py
@@ -38,6 +38,7 @@ class Gcc(Package):
 
     DEPENDS_ON_ISL_PREDICATE = '@5.0:'
 
+    version('5.3.0', 'c9616fd448f980259c31de613e575719')
     version('5.2.0', 'a51bcfeb3da7dd4c623e27207ed43467')
     version('4.9.3', '6f831b4d251872736e8e9cc09746f327')
     version('4.9.2', '4df8ee253b7f3863ad0b86359cd39c43')
@@ -80,7 +81,8 @@ def install(self, spec, prefix):
                    "--with-quad"]
         # Binutils
         static_bootstrap_flags = "-static-libstdc++ -static-libgcc"
-        binutils_options = ["--with-stage1-ldflags=%s %s" % (self.rpath_args, static_bootstrap_flags),
+        binutils_options = ["--with-sysroot=/",
+                            "--with-stage1-ldflags=%s %s" % (self.rpath_args, static_bootstrap_flags),
                             "--with-boot-ldflags=%s %s"   % (self.rpath_args, static_bootstrap_flags),
                             "--with-ld=%s/bin/ld" % spec['binutils'].prefix,
                             "--with-as=%s/bin/as" % spec['binutils'].prefix]
@@ -90,9 +92,10 @@ def install(self, spec, prefix):
             isl_options = ["--with-isl=%s" % spec['isl'].prefix]
             options.extend(isl_options)
 
-        with working_dir('spack-build', create=True):
+        build_dir = join_path(self.stage.path, 'spack-build')
+        configure = Executable( join_path(self.stage.source_path, 'configure') )
+        with working_dir(build_dir, create=True):
             # Rest of install is straightforward.
-            configure = Executable('../configure')
             configure(*options)
             make()
             make("install")