diff --git a/doc/Changelog.html b/doc/Changelog.html
index 06859375..51ae3606 100644
--- a/doc/Changelog.html
+++ b/doc/Changelog.html
@@ -33,6 +33,7 @@ a:visited { color: #0000EE; }
 <li>Improved "downmix" filter by using explicit channel mappings for each number of input channels
 <li>Fixed a potential bug in CPU type detection that might have caused the wrong binary to be used
 <li>Fixed Cue Sheet import for tracks with certain characters in the title
+<li>Fixed a bug with "Prepend relative source file path to output file" under certain conditions
 <li>Workaround for malicious "anti-virus" programs that prevent innocent applications from functioning
 <li>Enabled "Aero Glass" theme in installer and web-update program (Vista and Windows 7 only)
 <li>Restored Windows 2000 support with Visual Studio 2010 builds (this is experimental!)
diff --git a/src/Config.h b/src/Config.h
index 601f361d..52cd1d37 100644
--- a/src/Config.h
+++ b/src/Config.h
@@ -29,8 +29,8 @@
 #define VER_LAMEXP_MINOR_HI					0
 #define VER_LAMEXP_MINOR_LO					3
 #define VER_LAMEXP_TYPE						RC
-#define VER_LAMEXP_PATCH					1
-#define VER_LAMEXP_BUILD					754
+#define VER_LAMEXP_PATCH					2
+#define VER_LAMEXP_BUILD					756
 
 ///////////////////////////////////////////////////////////////////////////////
 // Tools versions
diff --git a/src/Dialog_Processing.cpp b/src/Dialog_Processing.cpp
index a8d12a58..d4b323e2 100644
--- a/src/Dialog_Processing.cpp
+++ b/src/Dialog_Processing.cpp
@@ -671,7 +671,7 @@ void ProcessingDialog::startNextJob(void)
 		(m_settings->outputToSourceDir() ? QFileInfo(currentFile.filePath()).absolutePath() : m_settings->outputDir()),
 		(m_settings->customTempPathEnabled() ? m_settings->customTempPath() : lamexp_temp_folder2()),
 		encoder,
-		m_settings->prependRelativeSourcePath()
+		m_settings->prependRelativeSourcePath() && (!m_settings->outputToSourceDir())
 	);
 
 	//Add audio filters