diff --git a/LICENSE b/LICENSE
--- a/LICENSE
+++ b/LICENSE
@@ -1,4 +1,4 @@
-Copyright (c)2012, Evan Czaplicki
+Copyright (c)2012-2013, Evan Czaplicki
 
 All rights reserved.
 
diff --git a/Server.hs b/Server.hs
--- a/Server.hs
+++ b/Server.hs
@@ -1,7 +1,6 @@
-
 module Main where
 
-import Control.Monad (msum,guard)
+import Control.Monad (msum,guard,when)
 import Control.Monad.Trans (MonadIO(liftIO))
 import Data.List (isPrefixOf, isSuffixOf, (\\))
 import Data.Version (showVersion)
@@ -13,7 +12,7 @@
 import System.FilePath
 import System.Process
 import GHC.IO.Handle
-import qualified Language.Elm as Elm
+import qualified Elm.Internal.Paths as ElmPaths
 import Paths_elm_server
 
 runtime = "/elm-runtime.js"
@@ -35,23 +34,34 @@
 pageTitle = dropExtension . takeBaseName
 
 serveElm :: FilePath -> ServerPartT IO Response
-serveElm fp = do
-  guard (takeExtension fp == ".elm")
-  let file = tail fp
-      args = [ "--make" ,"--runtime=" ++ runtime, "--cache-dir=elm-server-cache", file ]
-  (_, stdout, _, handle) <- liftIO $ createProcess $ (proc "elm" args) { std_out = CreatePipe }
+serveElm fp =
+  do fileExists <- liftIO $ doesFileExist file
+     guard (fileExists && takeExtension fp == ".elm")
+     onSuccess compile serve
+  where
+    file = tail fp
+
+    compile = liftIO $ createProcess $ (proc "elm" args) { std_out = CreatePipe }
+        where args = [ "--make", "--runtime=" ++ runtime, file ]
+
+    serve = serveFile (asContentType "text/html")
+                      ("build" </> replaceExtension file "html")
+
+onSuccess action success = do
+  (_, stdout, _, handle) <- action
   exitCode <- liftIO $ waitForProcess handle
-  liftIO $ removeDirectoryRecursive "elm-server-cache"
   case (exitCode, stdout) of
+    (ExitFailure 127, _) ->
+        badRequest $ toResponse "Error: elm binary not found in your path."
     (ExitFailure _, Just out) ->
         do str <- liftIO $ hGetContents out
            badRequest $ toResponse str
     (ExitFailure _, Nothing) ->
         badRequest $ toResponse "See command line for error message."
-    (ExitSuccess, _) ->
-        serveFile (asContentType "text/html") ("build" </> replaceExtension file "html")
+    (ExitSuccess, _) -> success
 
-serveLib :: FilePath -> [Char] -> ServerPartT IO Response
+
+serveLib :: FilePath -> String -> ServerPartT IO Response
 serveLib libLoc fp = do
   guard (fp == runtime)
   serveFile (asContentType "application/javascript") libLoc
@@ -63,9 +73,11 @@
 parse ("--help":_) = putStrLn usage
 parse ("--version":_) = putStrLn ("The Elm Server " ++ showVersion version)
 parse args =
-  case null remainingArgs of
-    True -> serve portNumber =<< elmRuntime
-    False -> putStrLn usageMini
+  if null remainingArgs then
+      serve portNumber elmRuntime
+  else
+      putStrLn usageMini
+
   where
     runtimeArg = filter (isPrefixOf "--runtime-location=") args
     portArg = filter (isPrefixOf "--port=") args
@@ -73,7 +85,10 @@
 
     argValue arg = tail $ dropWhile (/= '=') (head arg)
     portNumber = if null portArg then 8000 else read (argValue portArg) :: Int
-    elmRuntime = if null runtimeArg then Elm.runtime else return $ argValue runtimeArg
+    elmRuntime = if null runtimeArg then
+                     ElmPaths.runtime
+                 else
+                     argValue runtimeArg
 
 usageMini :: String
 usageMini =
diff --git a/elm-server.cabal b/elm-server.cabal
--- a/elm-server.cabal
+++ b/elm-server.cabal
@@ -1,5 +1,5 @@
 Name:                elm-server
-Version:             0.9.0.2
+Version:             0.10.1
 Synopsis:            The Elm language server.
 Description:         This package provides a standalone, Happstack-based Elm server.
 
@@ -10,7 +10,7 @@
 
 Author:              Evan Czaplicki
 Maintainer:          info@elm-lang.org
-Copyright:           Copyright: (c) 2011-2012 Evan Czaplicki
+Copyright:           Copyright: (c) 2011-2013 Evan Czaplicki
 
 Category:            Compiler, Language
 
@@ -36,5 +36,5 @@
                        happstack-server,
                        deepseq,
                        filepath,
-                       Elm >= 0.9.0.2,
+                       Elm >= 0.10.1,
                        process