diff --git a/PKGBUILD b/PKGBUILD
index 27b46c2..adbefcc 100644
--- a/PKGBUILD
+++ b/PKGBUILD
@@ -8,7 +8,7 @@ pkgname=('linux' 'linux-headers' 'linux-docs') # Build stock -ARCH kernel
 _kernelname=${pkgname#linux}
 _basekernel=3.4
 pkgver=${_basekernel}.4
-pkgrel=2
+pkgrel=3
 arch=('i686' 'x86_64')
 url="http://www.kernel.org/"
 license=('GPL2')
@@ -79,6 +79,9 @@ build() {
   # set extraversion to pkgrel
   sed -ri "s|^(EXTRAVERSION =).*|\1 -${pkgrel}|" Makefile
 
+  # don't run depmod on 'make install'. We'll do this ourselves in packaging
+  sed -i '2iexit 0' scripts/depmod.sh
+
   # get kernel version
   make prepare
 
@@ -153,6 +156,12 @@ package_linux() {
   # add real version for building modules and running depmod from post_install/upgrade
   mkdir -p "${pkgdir}/lib/modules/extramodules-${_basekernel}${_kernelname:--ARCH}"
   echo "${_kernver}" > "${pkgdir}/lib/modules/extramodules-${_basekernel}${_kernelname:--ARCH}/version"
+
+  # move module tree /lib -> /usr/lib
+  mv "$pkgdir/lib" "$pkgdir/usr"
+
+  # Now we call depmod...
+  depmod -b "$pkgdir" -F System.map "$_kernver"
 }
 
 package_linux-headers() {
@@ -161,10 +170,10 @@ package_linux-headers() {
   conflicts=('kernel26-headers')
   replaces=('kernel26-headers')
 
-  mkdir -p "${pkgdir}/lib/modules/${_kernver}"
+  install -dm755 "${pkgdir}/usr/lib/modules/${_kernver}"
 
-  cd "${pkgdir}/lib/modules/${_kernver}"
-  ln -sf ../../../usr/src/linux-${_kernver} build
+  cd "${pkgdir}/usr/lib/modules/${_kernver}"
+  ln -sf ../../../src/linux-${_kernver} build
 
   cd "${srcdir}/linux-${_basekernel}"
   install -D -m644 Makefile \
diff --git a/linux.install b/linux.install
index 1fe6e5e..b49d8df 100644
--- a/linux.install
+++ b/linux.install
@@ -2,7 +2,7 @@
 # arg 2:  the old package version
 
 KERNEL_NAME=
-KERNEL_VERSION=3.4.4-2-ARCH
+KERNEL_VERSION=3.4.4-3-ARCH
 
 # set a sane PATH to ensure that critical utils like depmod will be found
 export PATH='/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin'