diff --git a/bochs/.bochsrc b/bochs/.bochsrc
index 99e5e964a..9ff25472f 100644
--- a/bochs/.bochsrc
+++ b/bochs/.bochsrc
@@ -63,10 +63,11 @@
 # You now need to load a ROM BIOS into F0000-FFFFF.  I've wiped
 # out most of the BIOS hooks, and replace them with real BIOS
 # support.  Normally, you can use a precompiled BIOS in the bios/
-# directory, named BIOS-bochs-latest. 
+# directory of the source tree, named BIOS-bochs-latest. 
+# You can also use the environment variable $BXSHARE to specify the
+# location of the BIOS.
 #=======================================================================
-#romimage: bios/BIOS-bochs-970717a
-romimage: file=bios/BIOS-bochs-latest, address=0xf0000
+romimage: file=$BXSHARE/BIOS-bochs-latest, address=0xf0000
 #romimage: file=bios/BIOS-bochs-2-processors, address=0xf0000
 #romimage: file=bios/BIOS-bochs-4-processors, address=0xf0000
 #romimage: file=bios/rombios.bin, address=0xf0000
@@ -106,7 +107,8 @@ megs: 32
 # You now need to load a VGA ROM BIOS into C0000.
 #=======================================================================
 #vgaromimage: bios/VGABIOS-lgpl-latest
-vgaromimage: bios/VGABIOS-elpin-2.40
+#vgaromimage: bios/VGABIOS-elpin-2.40
+vgaromimage: $BXSHARE/VGABIOS-elpin-2.40
 
 #=======================================================================
 # FLOPPYA:
@@ -658,8 +660,8 @@ i440fxsupport: enabled=0
 # for Macintosh, use the style of pathnames in the following
 # examples.
 #
-# vgaromimage: :bios:VGABIOS-elpin-2.20
-# romimage: file=:bios:BIOS-bochs-981222a, address=0xf0000
+# vgaromimage: :bios:VGABIOS-elpin-2.40
+# romimage: file=:bios:BIOS-bochs-latest, address=0xf0000
 # floppya: 1_44=[fd:], status=inserted
 #=======================================================================
 
diff --git a/bochs/doc/man/bochsrc.5 b/bochs/doc/man/bochsrc.5
index 425dfd186..19d755295 100644
--- a/bochs/doc/man/bochsrc.5
+++ b/bochs/doc/man/bochsrc.5
@@ -13,6 +13,22 @@ for bochsrc  can also be used as command line  arguments
 for Bochs. The .bochsrc  file should be placed either in
 the current  directory  before running  Bochs or in your
 home directory.
+
+Starting with Bochs 1.3, you can use environment variables in
+the bochsrc file, for example: 
+
+  diskc: file="$IMAGES/30M.sample", cyl=615, heads=6, spt=17
+
+Starting with version 2.0, two environment variables have a built-in
+default value which is set at compile time.  $BXSHARE points to the
+"share" directory which is typically /usr/local/share/bochs on UNIX
+machines.  See the $(sharedir) variable in the Makefile for the exact
+value.  $BXSHARE is used by disk images to locate the directory where 
+the BIOS images and keymaps can be found.  If $BXSHARE is not defined, Bochs
+will supply the default value.  Also, $LTDL_LIBRARY_PATH points to a list of
+directories (separated by colons if more than one) to search in for Bochs
+plugins.  A compile-time default is provided if this variable is not defined
+by the user.
 .\".\"DONT_SPLIT"
 .SH OPTIONS
 
@@ -74,16 +90,16 @@ Example:
 
 .TP
 .I "romimage:"
-You need to load  a ROM BIOS into  F0000-FFFFF.
-The  BIOS  controls  what  the PC does when it
-first  powers  on.  Normally,  you  can use  a
+You need to load  a ROM BIOS into F0000-FFFFF. The BIOS controls
+what  the PC does when it first  powers  on.  Normally, you can use a
 precompiled BIOS in the
 .B bios/
-directory, named
-BIOS-bochs-latest.
+directory of the source tree, named BIOS-bochs-latest. You can also use
+the environment variable $BXSHARE to specify the location of the BIOS.
 
-Example:
-  romimage: file=bios/BIOS-bochs-latest
+Examples:
+  romimage: file=bios/BIOS-bochs-latest, address=0xf0000
+  romimage: file=$BXSHARE/BIOS-bochs-latest, address=0xf0000
 
 .TP
 .I "megs:"
@@ -120,6 +136,7 @@ C0000.
 Examples:
   vgaromimage: bios/VGABIOS-elpin-2.40
   vgaromimage: bios/VGABIOS-lgpl-latest
+  vgaromimage: $BXSHARE/VGABIOS-lgpl-latest
 
 .TP
 .I "floppya: \fPor \fIfloppyb:"