diff --git a/Config.in b/Config.in
index 9cd3504..a8235da 100644
--- a/Config.in
+++ b/Config.in
@@ -723,6 +723,9 @@ menu "--- General Settings"
 		default "/mnt/build_dir"
 		help
 			#-- The directory where the created system will be located.
+			#   NOTE: A working directory named jhalfs will be created
+			#   here, so ensure this does not conflict with the jhalfs
+			#   source directory.
 
 	config	GETPKG
 		bool "Retrieve source files"
diff --git a/jhalfs b/jhalfs
index 964600d..7b4b4ac 100755
--- a/jhalfs
+++ b/jhalfs
@@ -119,6 +119,14 @@ SET_WARNINGS=${SET_WARNINGS:=n}
 SET_MISC=${SET_MISC:=n}
 SET_BLOWFISH=${SET_BLOWFISH:=n}
 
+# Sanity check on the location of $BUILDDIR / $JHALFSDIR
+CWD=$(cd `dirname $0` && pwd)
+if [[ $JHALFSDIR == $CWD ]]; then
+    echo " The jhalfs source directory conflicts with the jhalfs build directory."
+    echo " Please move the source directory or change the build directory."
+    exit 2
+fi
+
 # Book surces envars
 BRANCH_ID=${BRANCH_ID:=development}