diff --git a/Distribution/Client/SetupWrapper.hs b/Distribution/Client/SetupWrapper.hs
--- a/Distribution/Client/SetupWrapper.hs
+++ b/Distribution/Client/SetupWrapper.hs
@@ -257,8 +257,6 @@
 
   installedCabalVersion :: SetupScriptOptions -> Compiler
                         -> ProgramConfiguration -> IO Version
-  installedCabalVersion _ _ _ | packageName pkg == PackageName "Cabal" =
-    return (packageVersion pkg)
   installedCabalVersion options' comp conf = do
     index <- maybeGetInstalledPackages options' comp conf
     let cabalDep = Dependency (PackageName "Cabal") (useCabalVersion options')
@@ -423,7 +421,9 @@
             , ghcOptObjDir          = Flag setupDir
             , ghcOptHiDir           = Flag setupDir
             , ghcOptSourcePathClear = Flag True
-            , ghcOptSourcePath      = [workingDir]
+            , ghcOptSourcePath      = case bt of
+                                      Custom -> [workingDir]
+                                      _      -> []
             , ghcOptPackageDBs      = usePackageDB options''
             , ghcOptPackages        =
               maybe []
diff --git a/bootstrap.sh b/bootstrap.sh
--- a/bootstrap.sh
+++ b/bootstrap.sh
@@ -53,7 +53,7 @@
 DEEPSEQ_VER="1.3.0.2"; DEEPSEQ_VER_REGEXP="1\.[1-9]\."         # >= 1.1 && < 2
 TEXT_VER="1.1.0.0";    TEXT_VER_REGEXP="((1\.[01]\.)|(0\.([2-9]|(1[0-1]))\.))" # >= 0.2 && < 1.2
 NETWORK_VER="2.6.0.2"; NETWORK_VER_REGEXP="2\."                # == 2.*
-CABAL_VER="1.18.1.6";  CABAL_VER_REGEXP="1\.1[89]\."           # >= 1.18 && < 1.20
+CABAL_VER="1.18.1.7";  CABAL_VER_REGEXP="1\.1[89]\."           # >= 1.18 && < 1.20
 TRANS_VER="0.3.0.0";   TRANS_VER_REGEXP="0\.[23]\."            # >= 0.2.* && < 0.4.*
 MTL_VER="2.1.2";       MTL_VER_REGEXP="[2]\."                  #  == 2.*
 HTTP_VER="4000.2.16.1";  HTTP_VER_REGEXP="4000\.[012]\."         # == 4000.0.* || 4000.1.* || 4000.2.*
diff --git a/cabal-install.cabal b/cabal-install.cabal
--- a/cabal-install.cabal
+++ b/cabal-install.cabal
@@ -1,5 +1,5 @@
 Name:               cabal-install
-Version:            1.18.1.0
+Version:            1.18.2.0
 Synopsis:           The command-line interface for Cabal and Hackage.
 Description:
     The \'cabal\' command-line program simplifies the process of managing
@@ -119,7 +119,7 @@
     -- in bootstrap.sh.
     build-depends:
         array      >= 0.1      && < 0.6,
-        base       >= 4        && < 5,
+        base       >= 4        && < 4.8,
         bytestring >= 0.9      && < 1,
         Cabal      >= 1.18.0   && < 1.19,
         containers >= 0.1      && < 0.6,