diff --git a/src/dosinst.c b/src/dosinst.c
index 3c5e59b..3fbfb5c 100644
--- a/src/dosinst.c
+++ b/src/dosinst.c
@@ -1773,9 +1773,11 @@
 
 /*
  * We used to use "homedir" as the working directory, but that is a bad choice
- * on multi-user systems.  Not specifying a directory appears to work best.
+ * on multi-user systems.  However, not specifying a directory results in the
+ * current directory to be c:\Windows\system32 on Windows 7. Use environment
+ * variables instead.
  */
-#define WORKDIR ""
+#define WORKDIR "%HOMEDRIVE%%HOMEPATH%"
 
 /*
  * Create shortcut(s) in the Start Menu\Programs\Vim folder.
diff --git a/src/version.c b/src/version.c
index 770b3c8..6e11f7d 100644
--- a/src/version.c
+++ b/src/version.c
@@ -739,6 +739,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    77,
+/**/
     76,
 /**/
     75,