diff --git a/runtime.go b/runtime.go
index 3268892d56..071e94acd8 100644
--- a/runtime.go
+++ b/runtime.go
@@ -734,18 +734,18 @@ func NewRuntimeFromDirectory(config *DaemonConfig) (*Runtime, error) {
 		return nil, fmt.Errorf("Could not locate dockerinit: This usually means docker was built incorrectly. See http://docs.docker.io/en/latest/contributing/devenvironment for official build instructions.")
 	}
 
-	if !utils.IAMSTATIC {
-		if err := os.Mkdir(path.Join(config.Root, fmt.Sprintf("init")), 0700); err != nil && !os.IsExist(err) {
+	if sysInitPath != localCopy {
+		// When we find a suitable dockerinit binary (even if it's our local binary), we copy it into config.Root at localCopy for future use (so that the original can go away without that being a problem, for example during a package upgrade).
+		if err := os.Mkdir(path.Dir(localCopy), 0700); err != nil && !os.IsExist(err) {
 			return nil, err
 		}
-
 		if _, err := utils.CopyFile(sysInitPath, localCopy); err != nil {
 			return nil, err
 		}
-		sysInitPath = localCopy
-		if err := os.Chmod(sysInitPath, 0700); err != nil {
+		if err := os.Chmod(localCopy, 0700); err != nil {
 			return nil, err
 		}
+		sysInitPath = localCopy
 	}
 
 	runtime := &Runtime{
diff --git a/utils/utils.go b/utils/utils.go
index 6864dddf82..473302bc97 100644
--- a/utils/utils.go
+++ b/utils/utils.go
@@ -162,14 +162,23 @@ func Trunc(s string, maxlen int) string {
 	return s[:maxlen]
 }
 
-// Figure out the absolute path of our own binary
+// Figure out the absolute path of our own binary (if it's still around).
 func SelfPath() string {
 	path, err := exec.LookPath(os.Args[0])
 	if err != nil {
+		if os.IsNotExist(err) {
+			return ""
+		}
+		if execErr, ok := err.(*exec.Error); ok && os.IsNotExist(execErr.Err) {
+			return ""
+		}
 		panic(err)
 	}
 	path, err = filepath.Abs(path)
 	if err != nil {
+		if os.IsNotExist(err) {
+			return ""
+		}
 		panic(err)
 	}
 	return path
@@ -190,7 +199,13 @@ func dockerInitSha1(target string) string {
 }
 
 func isValidDockerInitPath(target string, selfPath string) bool { // target and selfPath should be absolute (InitPath and SelfPath already do this)
+	if target == "" {
+		return false
+	}
 	if IAMSTATIC {
+		if selfPath == "" {
+			return false
+		}
 		if target == selfPath {
 			return true
 		}
@@ -229,6 +244,9 @@ func DockerInitPath(localCopy string) string {
 		"/usr/local/lib/docker/dockerinit",
 	}
 	for _, dockerInit := range possibleInits {
+		if dockerInit == "" {
+			continue
+		}
 		path, err := exec.LookPath(dockerInit)
 		if err == nil {
 			path, err = filepath.Abs(path)