diff --git a/Rakefile b/Rakefile
index 51f7b2a3..c7768517 100644
--- a/Rakefile
+++ b/Rakefile
@@ -19,7 +19,8 @@ namespace :build do
 
   desc "Compile the Narwhal interface for --interactive and --run"
   task :narwhal do
-    sh "bin/coffee lib/coffee_script/narwhal/*.coffee -o lib/coffee_script/narwhal/js"
+    sh "bin/coffee lib/coffee_script/narwhal/*.coffee -o lib/coffee_script/narwhal/lib/coffee-script"
+    sh "mv lib/coffee_script/narwhal/lib/coffee-script/coffee-script.js lib/coffee_script/narwhal/lib/coffee-script.js"
   end
 
 end
diff --git a/coffee-script.gemspec b/coffee-script.gemspec
index ef684aa0..ec801ec3 100644
--- a/coffee-script.gemspec
+++ b/coffee-script.gemspec
@@ -22,5 +22,5 @@ Gem::Specification.new do |s|
   s.require_paths     = ['lib']
   s.executables       = ['coffee']
 
-  s.files = Dir['bin/*', 'examples/*', 'lib/**/*', 'coffee-script.gemspec', 'LICENSE', 'README']
+  s.files = Dir['bin/*', 'examples/*', 'lib/**/*', 'coffee-script.gemspec', 'LICENSE', 'README', 'package.json']
 end
\ No newline at end of file
diff --git a/lib/coffee_script/command_line.rb b/lib/coffee_script/command_line.rb
index 1074d911..fe5898d2 100644
--- a/lib/coffee_script/command_line.rb
+++ b/lib/coffee_script/command_line.rb
@@ -19,8 +19,9 @@ Usage:
     # Seconds to pause between checks for changed source files.
     WATCH_INTERVAL = 0.5
 
-    # Path to the Narwhal Launcher:
-    LAUNCHER = File.expand_path(File.dirname(__FILE__)) + '/narwhal/js/launcher.js'
+    # Command to execute in Narwhal
+    PACKAGE = File.dirname(File.dirname(File.dirname(__FILE__)))
+    LAUNCHER = "narwhal -p #{PACKAGE} -e 'require(\"coffee-script\").run(system.args);'"
 
     # Run the CommandLine off the contents of ARGV.
     def initialize
@@ -107,7 +108,7 @@ Usage:
 
     # Use Narwhal to run an interactive CoffeeScript session.
     def launch_repl
-      exec "narwhal #{LAUNCHER}"
+      exec "#{LAUNCHER}"
     rescue Errno::ENOENT
       puts "Error: Narwhal must be installed to use the interactive REPL."
       exit(1)
@@ -116,7 +117,7 @@ Usage:
     # Use Narwhal to compile and execute CoffeeScripts.
     def run_scripts
       sources = @sources.join(' ')
-      exec "narwhal #{LAUNCHER} #{sources}"
+      exec "#{LAUNCHER} #{sources}"
     rescue Errno::ENOENT
       puts "Error: Narwhal must be installed in order to execute CoffeeScripts."
       exit(1)
diff --git a/lib/coffee_script/narwhal/js/launcher.js b/lib/coffee_script/narwhal/js/launcher.js
deleted file mode 100644
index c8442a18..00000000
--- a/lib/coffee_script/narwhal/js/launcher.js
+++ /dev/null
@@ -1,3 +0,0 @@
-(function(){
-  require("./coffee-script").run(system.args);
-})();
\ No newline at end of file
diff --git a/lib/coffee_script/narwhal/launcher.coffee b/lib/coffee_script/narwhal/launcher.coffee
deleted file mode 100644
index ec83edef..00000000
--- a/lib/coffee_script/narwhal/launcher.coffee
+++ /dev/null
@@ -1 +0,0 @@
-require("./coffee-script").run(system.args)
\ No newline at end of file
diff --git a/lib/coffee_script/narwhal/js/coffee-script.js b/lib/coffee_script/narwhal/lib/coffee-script.js
similarity index 99%
rename from lib/coffee_script/narwhal/js/coffee-script.js
rename to lib/coffee_script/narwhal/lib/coffee-script.js
index dc283606..08204763 100644
--- a/lib/coffee_script/narwhal/js/coffee-script.js
+++ b/lib/coffee_script/narwhal/lib/coffee-script.js
@@ -65,7 +65,7 @@
   exports.makeNarwhalFactory = function(path) {
     var code, factoryText;
     code = exports.compileFile(path);
-    factoryText = "function(require,exports,module,system,print){ 1 + 1 /**/\n}";
+    factoryText = "function(require,exports,module,system,print){ " + code + " /**/\n}";
     if (system.engine === "rhino") {
       return Packages.org.mozilla.javascript.Context.getCurrentContext().compileFunction(global, factoryText, path, 0, null);
     } else {
diff --git a/lib/coffee_script/narwhal/js/loader.js b/lib/coffee_script/narwhal/lib/coffee-script/loader.js
similarity index 90%
rename from lib/coffee_script/narwhal/js/loader.js
rename to lib/coffee_script/narwhal/lib/coffee-script/loader.js
index cf4c1ed4..1a79dbbb 100644
--- a/lib/coffee_script/narwhal/js/loader.js
+++ b/lib/coffee_script/narwhal/lib/coffee-script/loader.js
@@ -7,7 +7,7 @@
   loader = {
     // Reload the coffee-script environment from source.
     reload: function(topId, path) {
-      coffeescript = coffeescript || require('./coffee-script');
+      coffeescript = coffeescript || require('coffee-script');
       return (factories[topId] = coffeescript.makeNarwhalFactory(path));
     },
     // Ensure that the coffee-script environment is loaded.
diff --git a/lib/coffee_script/narwhal/loader.coffee b/lib/coffee_script/narwhal/loader.coffee
index 9797408a..509a533e 100644
--- a/lib/coffee_script/narwhal/loader.coffee
+++ b/lib/coffee_script/narwhal/loader.coffee
@@ -7,7 +7,7 @@ loader: {
 
   # Reload the coffee-script environment from source.
   reload: topId, path =>
-    coffeescript ||= require('./coffee-script')
+    coffeescript ||= require('coffee-script')
     factories[topId]: coffeescript.makeNarwhalFactory(path).
 
   # Ensure that the coffee-script environment is loaded.
diff --git a/package.json b/package.json
index 7d83b675..d3811285 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
     "name":         "coffee-script",
-    "lib":          "lib/coffee_script/narwhal/js",
-    "preload":      ["loader"],
+    "lib":          "lib/coffee_script/narwhal/lib",
+    "preload":      ["coffee-script/loader"],
     "description":  "Unfancy JavaScript",
     "keywords":     ["javascript", "language"],
     "author":       "Jeremy Ashkenas",