diff --git a/bin/minigem b/bin/minigem
index 1877e55..4549c10 100644
--- a/bin/minigem
+++ b/bin/minigem
@@ -72,7 +72,7 @@ elsif ARGV[0] == 'revert'
 elsif ARGV[0] == 'install' || ARGV[0] == 'update'
   # Install or update a rubygem and prepare it for minigems.
   command = ARGV.shift.to_sym # skip command argument
-  ensure_in_load_path!
+  ensure_in_load_path!(ARGV.empty?)
   # Remove any gems that have been specified.
   unless ARGV.empty?
     cmd = Gem::GemRunner.new.run_command(command, ARGV)
diff --git a/lib/minigems.rb b/lib/minigems.rb
index b59ad4e..33110a3 100644
--- a/lib/minigems.rb
+++ b/lib/minigems.rb
@@ -114,20 +114,18 @@ def self.activate(gem, *version_requirements)
         elsif already_loaded
           return false
         end
-      
+            
         # Keep track of loaded gems - by name instead of full specs (memory!)
         self.loaded_gems[gem_spec.name] = gem_spec.full_name
       
         # Load dependent gems first
         gem_spec.runtime_dependencies.each { |dep_gem| activate(dep_gem) }
-            
-        # Add gem bindir path to $LOAD_PATH
-        unless gem_spec.executables.empty? 
-          $LOAD_PATH.unshift File.join(gem_spec.full_gem_path, gem_spec.bindir)
-        end
+        
+        # bin directory must come before library directories
+        gem_spec.require_paths.unshift(gem_spec.bindir) if gem_spec.bindir
       
         # Add gem require paths to $LOAD_PATH
-        gem_spec.require_paths.each do |require_path|
+        gem_spec.require_paths.reverse.each do |require_path|
           $LOAD_PATH.unshift File.join(gem_spec.full_gem_path, require_path)
         end
         return true
diff --git a/spec/minigems_spec.rb b/spec/minigems_spec.rb
index 4747fa0..abf6e65 100644
--- a/spec/minigems_spec.rb
+++ b/spec/minigems_spec.rb
@@ -51,24 +51,28 @@
     gem_bin_path = File.join(@gem_dir, "gems", "gem_with_lib-0.0.2", "bin")
     $LOAD_PATH.should_not include(gem_lib_path)
     gem("gem_with_lib").should be_true
-    $LOAD_PATH.first.should == gem_lib_path
-    $LOAD_PATH.should include(gem_bin_path)
+    $LOAD_PATH.first.should == gem_bin_path
+    $LOAD_PATH.should include(gem_lib_path)
     $LOAD_PATH.select { |path| path == gem_lib_path }.length.should == 1
     lambda { GemWithLib::Awesome }.should raise_error(NameError)
   end
   
   it "uses 'gem' to setup additional load path entries (for a specific gem version)" do
     gem_lib_path = File.join(@gem_dir, "gems", "gem_with_lib-0.0.1", "lib")
+    gem_bin_path = File.join(@gem_dir, "gems", "gem_with_lib-0.0.1", "bin")
     $LOAD_PATH.should_not include(gem_lib_path)
     gem("gem_with_lib", "0.0.1").should be_true
-    $LOAD_PATH.first.should == gem_lib_path
+    $LOAD_PATH.first.should == gem_bin_path
+    $LOAD_PATH.should include(gem_lib_path)
   end
   
   it "uses 'gem' to setup additional load path entries (for a gem version requirement)" do
     gem_lib_path = File.join(@gem_dir, "gems", "gem_with_lib-0.0.2", "lib")
+    gem_bin_path = File.join(@gem_dir, "gems", "gem_with_lib-0.0.2", "bin")
     $LOAD_PATH.should_not include(gem_lib_path)
     gem("gem_with_lib", ">0.0.1").should be_true
-    $LOAD_PATH.first.should == gem_lib_path
+    $LOAD_PATH.first.should == gem_bin_path
+    $LOAD_PATH.should include(gem_lib_path)
   end
   
   it "correctly requires a file from the load path" do