diff --git a/client/icecc-create-env.in b/client/icecc-create-env.in
index 86c2261b0..a5c372afb 100755
--- a/client/icecc-create-env.in
+++ b/client/icecc-create-env.in
@@ -81,10 +81,14 @@ resolve_path()
 # This could use realpath, but that's reportedly not that widely available.
 convert_path_cdup ()
 {
-  local filename="$1"
-  local directory=$(dirname $filename)
-  local fixed_directory=$(cd "$directory" >/dev/null && pwd)
-  echo ${fixed_directory}/$(basename $filename)
+  # Remove all /./ sequences.
+  local path=${1//\/.\//\/}
+
+  # Remove dir/.. sequences.
+  while [[ $path =~ ([^/][^/]*/\.\./) ]]; do
+    path=${path/${BASH_REMATCH[0]}/}
+  done
+  echo $path
 }
 
 add_file ()
@@ -584,7 +588,7 @@ md5=$(for i in $target_files; do $md5sum $tempdir/$i; done | sed -e "s# $tempdir
 echo "creating $md5.tar$compress_ext"
 mydir=$(pwd)
 cd $tempdir
-tar -ch --numeric-owner -f - $target_files | "$compress_program" $compress_args > "$md5".tar"$compress_ext" || {
+tar -ch --numeric-owner -P -f - $target_files | "$compress_program" $compress_args > "$md5".tar"$compress_ext" || {
   echo "Couldn't create archive"
   exit 3
 }