diff --git a/IPython/utils/genutils.py b/IPython/utils/genutils.py
index ed4f799..d27db86 100644
--- a/IPython/utils/genutils.py
+++ b/IPython/utils/genutils.py
@@ -614,10 +614,18 @@ def filefind(filename, path_dirs=None):
     -------
     Raises :exc:`IOError` or returns absolute path to file.
     """
+    
+    # If paths are quoted, abspath gets confused, strip them...
+    filename = filename.strip('"').strip("'")
+    # If the input is an absolute path, just check it exists
+    if os.path.isabs(filename) and os.path.isfile(filename):
+        return filename
+        
     if path_dirs is None:
         path_dirs = ("",)
     elif isinstance(path_dirs, basestring):
         path_dirs = (path_dirs,)
+        
     for path in path_dirs:
         if path == '.': path = os.getcwd()
         testname = expand_path(os.path.join(path, filename))
@@ -883,6 +891,7 @@ def get_ipython_dir():
     """
     ipdir_def = '.ipython'
     home_dir = get_home_dir()
+    #import pdb; pdb.set_trace()  # dbg
     ipdir = os.environ.get(
         'IPYTHON_DIR', os.environ.get(
             'IPYTHONDIR', os.path.join(home_dir, ipdir_def)
diff --git a/IPython/utils/tests/test_genutils.py b/IPython/utils/tests/test_genutils.py
index 21fd622..678cd95 100644
--- a/IPython/utils/tests/test_genutils.py
+++ b/IPython/utils/tests/test_genutils.py
@@ -55,7 +55,7 @@ env = os.environ
 TEST_FILE_PATH = split(abspath(__file__))[0]
 TMP_TEST_DIR = tempfile.mkdtemp()
 HOME_TEST_DIR = join(TMP_TEST_DIR, "home_test_dir")
-IP_TEST_DIR = join(HOME_TEST_DIR,'_ipython')
+IP_TEST_DIR = join(HOME_TEST_DIR,'.ipython')
 #
 # Setup/teardown functions/decorators
 #
@@ -88,19 +88,17 @@ def setup_environment():
     each testfunction needs a pristine environment.
     """
     global oldstuff, platformstuff
-    oldstuff = (env.copy(), os.name, genutils.get_home_dir, IPython.__file__,)
+    oldstuff = (env.copy(), os.name, genutils.get_home_dir, IPython.__file__)
 
     if os.name == 'nt':
         platformstuff = (wreg.OpenKey, wreg.QueryValueEx,)
 
-    # Remove both spellings of env variables if present
-    env.pop('IPYTHON_DIR', None)
-    env.pop('IPYTHONDIR', None)
-
+ 
 def teardown_environment():
     """Restore things that were remebered by the setup_environment function
     """
     (oldenv, os.name, genutils.get_home_dir, IPython.__file__,) = oldstuff
+        
     for key in env.keys():
         if key not in oldenv:
             del env[key]
@@ -233,6 +231,8 @@ def test_get_ipython_dir_2():
     """test_get_ipython_dir_2, Testcase to see if we can call get_ipython_dir without Exceptions."""
     genutils.get_home_dir = lambda : "someplace"
     os.name = "posix"
+    env.pop('IPYTHON_DIR', None)
+    env.pop('IPYTHONDIR', None)
     ipdir = genutils.get_ipython_dir()
     nt.assert_equal(ipdir, os.path.join("someplace", ".ipython"))