Don't change to ttydrv to install registry, regedit doesn't use X.
Make sure the current dir is mapped in DOS.

tools/wineinstall

diff --git a/tools/wineinstall b/tools/wineinstall
index 7e6594c..691a60a 100755
--- a/tools/wineinstall
+++ b/tools/wineinstall
@@ -613,9 +613,9 @@
   fi
   echo "Preparing to install default Wine registry entries..."
 
-  # edit config files so we don't have to run regedit under X
+  # Make sure we are on a Windows drive
   mv $LCONF $LCONF.orig
-  sed "s/\"GraphicsDriver\" = .*/\"GraphicsDriver\" = \"ttydrv\"/" $LCONF.orig > $LCONF
+  sed "s/\"Path\" = \"\${HOME}\"$/\"Path\" = \"\${PWD}\"/" $LCONF.orig> $LCONF
 
   echo "Installing default Wine registry entries..."
   echo