diff --git a/README.md b/README.md
index b671f47..b2f238a 100644
--- a/README.md
+++ b/README.md
@@ -166,8 +166,6 @@ The resulting command would look something like this:
 binpack sprites/character.png sprites/bullet.png -o atlas
 ```
 
-## API
-
 ## License
 Copyright (c) 2013 Tylor Reynolds
 Licensed under the MIT license.
diff --git a/assetman.js b/assetman.js
index 34ca946..e7307e1 100644
--- a/assetman.js
+++ b/assetman.js
@@ -280,8 +280,11 @@ var generateGlobLists = function(ninja, filename, patternMap, path) {
 
 // Main generate function
 var generate = function(srcPath) {
-  srcPath = srcPath || '.';
-  srcPath = path.join(srcPath);
+  if (srcPath && srcPath !== '.') {
+    srcPath = path.relative(process.cwd(), srcPath);
+  } else {
+    srcPath = '.';
+  }
 
   var ninja = ninjaGen(),
       assetConfigPath = path.join(srcPath, 'assets.js'),