diff --git a/History.txt b/History.txt
index 389b0e4f..f0f06e13 100644
--- a/History.txt
+++ b/History.txt
@@ -9,6 +9,7 @@
   * Bug Fixes
     * Change YAML delimiter matcher so as to not chew up 2nd level markdown headers [github.com/mreid]
     * Fix bug that meant page data (such as the date) was not available in templates [github.com/mreid]
+    * Properly reject directories in _layouts
 
 == 0.2.1 / 2008-12-15
   * Major Changes
diff --git a/lib/jekyll/site.rb b/lib/jekyll/site.rb
index b808bc59..433c754a 100644
--- a/lib/jekyll/site.rb
+++ b/lib/jekyll/site.rb
@@ -35,7 +35,7 @@ module Jekyll
     def read_layouts
       base = File.join(self.source, "_layouts")
       entries = Dir.entries(base)
-      entries = entries.reject { |e| File.directory?(e) }
+      entries = entries.reject { |e| File.directory?(File.join(base, e)) }
       
       entries.each do |f|
         name = f.split(".")[0..-2].join(".")