diff --git a/bin/railway b/bin/railway
index 18e671a..94fae04 100755
--- a/bin/railway
+++ b/bin/railway
@@ -1,8 +1,17 @@
 #!/usr/bin/env node
 
 var sys = require('util');
-require('coffee-script');
-var app = require(process.cwd() + '/server');
+var fs = require('fs');
+var srvFile = process.cwd() + '/server';
+var app;
+if (fs.existsSync(srvFile + '.js')) {
+    app = require(srvFile);
+} else if (fs.existsSync(srvFile + '.coffee')) {
+    require('coffee-script');
+    app = require(srvFile);
+} else {
+    app = require('../lib/onrailway').createServer();
+}
 var railway = app.railway;
 var generators = railway.generators;
 var tools = railway.tools;
diff --git a/lib/onrailway.js b/lib/onrailway.js
index 1e88b2d..e2c0903 100644
--- a/lib/onrailway.js
+++ b/lib/onrailway.js
@@ -70,7 +70,7 @@ Railway.prototype.version = require('../package').version;
  *
  */
 exports.init = function initRailway(app) {
-    app.root = app.root || process.cwd();
+    app.root = app.root || path.dirname(module.parent.filename);
 
     // create API publishing object
     var railway = new Railway(app);
diff --git a/templates/config/environment.coffee b/templates/config/environment.coffee
index 1f953f9..0a054db 100644
--- a/templates/config/environment.coffee
+++ b/templates/config/environment.coffee
@@ -1,13 +1,12 @@
 express = require 'express'
 
 app.configure ->
-    cwd = process.cwd()
     PREPEND_MIDDLEWARE
     app.set 'view engine', 'VIEWENGINE'
     app.set 'view options', complexNames: true
     app.enable 'coffee'
 
-    app.use express.static(cwd + '/public', maxAge: 86400000)
+    app.use express.static(app.root + '/public', maxAge: 86400000)
     app.use express.bodyParser()
     app.use express.cookieParser 'secret'
     app.use express.session secret: 'secret'
diff --git a/templates/config/environment.js b/templates/config/environment.js
index ceb6f5b..2ccab9b 100644
--- a/templates/config/environment.js
+++ b/templates/config/environment.js
@@ -1,9 +1,8 @@
 var express = require('express');
 
 app.configure(function(){
-    var cwd = process.cwd();
     PREPEND_MIDDLEWARE
-    app.use(express.static(cwd + '/public', {maxAge: 86400000}));
+    app.use(express.static(app.root + '/public', {maxAge: 86400000}));
     app.set('view engine', 'VIEWENGINE');
     app.set('view options', {complexNames: true});
     app.set('jsDirectory', '/javascripts/');