diff --git a/contrib/src/xml/makefile.b32 b/contrib/src/xml/makefile.b32
index 760062ff22..1f67e6aad5 100644
--- a/contrib/src/xml/makefile.b32
+++ b/contrib/src/xml/makefile.b32
@@ -9,7 +9,30 @@
 
 WXDIR = $(WXWIN)
 
-EXTRACPPFLAGS=/Id:\libxml\libxml2-2.1.1
+
+# Do not specify the 'libxml' directory on
+# this -I line, as the #includes use
+# <libxml/xxxx.h>.  If your libxml is installed
+# in "d:\libxml\libxml2-2.1.1\libxml" you would use:
+# wxLIBXMLDIR=/Id:\libxml\libxml2-2.1.1
+wxLIBXMLDIR=
+
+!if "$(wxLIBXMLDIR)" == ""
+!message
+!message SETUP REQUIRED
+!message
+!message You must set the wxLIBXMLDIR variable in makefile.b32 before compiling
+!message
+!message If you do not have the libxml library, you will need to obtain & install
+!message it before compiling the wxXML code.  You can obtain libxml from:
+!message http://www.xmlsoft.org
+!message
+!error
+!endif
+
+# Set this to where your libxml directory is
+EXTRACPPFLAGS=$(wxLIBXMLDIR)
+
 
 LIBTARGET=$(WXDIR)\lib\wxxml.lib