diff --git a/new/path.jam b/new/path.jam
index 6d00c60cf..f35a434d1 100644
--- a/new/path.jam
+++ b/new/path.jam
@@ -260,34 +260,35 @@ rule glob ( dir : patterns + )
 rule all-parents ( path : upper_limit ? : cwd ? )
 {
     cwd ?= [ pwd ] ;
-    local rpath = [ root $(path) $(cwd) ] ;
+    local path_ele = [ regex.split [ root $(path) $(cwd) ] "/" ] ;
 
     if ! $(upper_limit) {
         upper_limit = / ;
-    } 
-    upper_limit = [ root $(upper_limit) $(cwd) ] ;
-
-    # Leave only directory names below 'upper_limits'
-    # Assure pruned_path[2] will have no leading '/'
-    local pruned_path = [ regex.match "($(upper_limit))/*(.*)" :  $(rpath) : 1 2 ] ;
-    if ! $(pruned_path) {
-        error "$(upper_limit) is not prefix of $(path)" ;
     }
+    local upper_ele = [ regex.split [ root $(upper_limit) $(cwd) ] "/" ] ;
 
-    if $(pruned_path[2])
-    {
-        # Length of 'tokens' is equal to the number of paths to check.
-        local tokens = [ regex.split $(pruned_path[2]) "/" ] ;
-
+    # Leave only elements in 'path_ele' below 'upper_ele'
+    while $(path_ele) && $(upper_ele[1]) = $(path_ele[1]) {
+        upper_ele = $(upper_ele[2-]) ;
+        path_ele = $(path_ele[2-]) ;
+    }
+    
+    # All upper elements removed ?
+    if ! $(upper_ele) {
+        # Create the relative paths to parents, number of elements in 'path_ele'
         local result ;
-        for local i in $(tokens) {
+        for local i in $(path_ele) {
             path = [ parent $(path) ] ;
             result += $(path) ;
         }
         return $(result) ;
     }
+    else {
+        error "$(upper_limit) is not prefix of $(path)" ;
+    }
 }
 
+
 #
 #  Search for 'pattern' in parent directories of 'dir', up till and including
 #  'upper_limit', if it is specified, or till the filesystem root otherwise.
diff --git a/test/bad_dirname.py b/test/bad_dirname.py
new file mode 100644
index 000000000..57e43abd7
--- /dev/null
+++ b/test/bad_dirname.py
@@ -0,0 +1,25 @@
+#!/usr/bin/python
+
+#  Copyright (C) Vladimir Prus 2003. Permission to copy, use, modify, sell and
+#  distribute this software is granted provided this copyright notice appears in
+#  all copies. This software is provided "as is" without express or implied
+#  warranty, and with no claim as to its suitability for any purpose.
+
+
+#  Regression test: when directory of project root contained regex metacharacters,
+#  Boost.Build failed to work. Bug reported by Michael Stevens
+
+from BoostBuild import Tester, List
+
+t = Tester()
+
+t.write("bad[abc]dirname/Jamfile", """ 
+""")
+
+t.write("bad[abc]dirname/project-root.jam", """ 
+""")
+
+t.run_build_system(subdir="bad[abc]dirname")
+
+t.cleanup()
+
diff --git a/test/test_all.py b/test/test_all.py
index 6428f0b90..2b1386cd0 100644
--- a/test/test_all.py
+++ b/test/test_all.py
@@ -95,6 +95,7 @@ tests = [ "project_test1",
           "absolute_sources",
           "dependency_property",
           "custom_generator",
+          "bad_dirname",
 	  ]
 
 if os.name == 'posix':
diff --git a/v2/test/bad_dirname.py b/v2/test/bad_dirname.py
new file mode 100644
index 000000000..57e43abd7
--- /dev/null
+++ b/v2/test/bad_dirname.py
@@ -0,0 +1,25 @@
+#!/usr/bin/python
+
+#  Copyright (C) Vladimir Prus 2003. Permission to copy, use, modify, sell and
+#  distribute this software is granted provided this copyright notice appears in
+#  all copies. This software is provided "as is" without express or implied
+#  warranty, and with no claim as to its suitability for any purpose.
+
+
+#  Regression test: when directory of project root contained regex metacharacters,
+#  Boost.Build failed to work. Bug reported by Michael Stevens
+
+from BoostBuild import Tester, List
+
+t = Tester()
+
+t.write("bad[abc]dirname/Jamfile", """ 
+""")
+
+t.write("bad[abc]dirname/project-root.jam", """ 
+""")
+
+t.run_build_system(subdir="bad[abc]dirname")
+
+t.cleanup()
+
diff --git a/v2/test/test_all.py b/v2/test/test_all.py
index 6428f0b90..2b1386cd0 100644
--- a/v2/test/test_all.py
+++ b/v2/test/test_all.py
@@ -95,6 +95,7 @@ tests = [ "project_test1",
           "absolute_sources",
           "dependency_property",
           "custom_generator",
+          "bad_dirname",
 	  ]
 
 if os.name == 'posix':
diff --git a/v2/util/path.jam b/v2/util/path.jam
index 6d00c60cf..f35a434d1 100644
--- a/v2/util/path.jam
+++ b/v2/util/path.jam
@@ -260,34 +260,35 @@ rule glob ( dir : patterns + )
 rule all-parents ( path : upper_limit ? : cwd ? )
 {
     cwd ?= [ pwd ] ;
-    local rpath = [ root $(path) $(cwd) ] ;
+    local path_ele = [ regex.split [ root $(path) $(cwd) ] "/" ] ;
 
     if ! $(upper_limit) {
         upper_limit = / ;
-    } 
-    upper_limit = [ root $(upper_limit) $(cwd) ] ;
-
-    # Leave only directory names below 'upper_limits'
-    # Assure pruned_path[2] will have no leading '/'
-    local pruned_path = [ regex.match "($(upper_limit))/*(.*)" :  $(rpath) : 1 2 ] ;
-    if ! $(pruned_path) {
-        error "$(upper_limit) is not prefix of $(path)" ;
     }
+    local upper_ele = [ regex.split [ root $(upper_limit) $(cwd) ] "/" ] ;
 
-    if $(pruned_path[2])
-    {
-        # Length of 'tokens' is equal to the number of paths to check.
-        local tokens = [ regex.split $(pruned_path[2]) "/" ] ;
-
+    # Leave only elements in 'path_ele' below 'upper_ele'
+    while $(path_ele) && $(upper_ele[1]) = $(path_ele[1]) {
+        upper_ele = $(upper_ele[2-]) ;
+        path_ele = $(path_ele[2-]) ;
+    }
+    
+    # All upper elements removed ?
+    if ! $(upper_ele) {
+        # Create the relative paths to parents, number of elements in 'path_ele'
         local result ;
-        for local i in $(tokens) {
+        for local i in $(path_ele) {
             path = [ parent $(path) ] ;
             result += $(path) ;
         }
         return $(result) ;
     }
+    else {
+        error "$(upper_limit) is not prefix of $(path)" ;
+    }
 }
 
+
 #
 #  Search for 'pattern' in parent directories of 'dir', up till and including
 #  'upper_limit', if it is specified, or till the filesystem root otherwise.