Index: lib/dbtexmf/dblatex/grubber/bibtex.py
--- lib/dbtexmf/dblatex/grubber/bibtex.py.orig
+++ lib/dbtexmf/dblatex/grubber/bibtex.py
@@ -263,6 +263,7 @@ class BibTex(TexModule):
         if len(self.bst_path) != 1:
             os.environ["BSTINPUTS"] = string.join(self.bst_path +
                 [os.getenv("BSTINPUTS", "")], ":")
+        os.environ['TEXMFOUTPUT'] = dirname(self.base)
         rc = subprocess.call(["bibtex", self.base], stdout=msg.stdout)
         if rc != 0:
             msg.error(_("There were errors making the bibliography."))
