diff --git a/meta/classes/sanity.bbclass b/meta/classes/sanity.bbclass
index 9f86b20ca0..c2f57a3837 100644
--- a/meta/classes/sanity.bbclass
+++ b/meta/classes/sanity.bbclass
@@ -154,6 +154,14 @@ def check_sanity(e):
 			os.system(bb.data.expand("cd ${TMPDIR}/stamps; for i in */*do_populate_staging; do new=`echo $i | sed -e 's/do_populate_staging/do_populate_sysroot/'`; mv $i $new; done", e.data))
 			f = file(abifile, "w")
 			f.write(current_abi)
+		elif abi == "3" and current_abi == "4":
+                        bb.note("Converting staging layout from version 3 to layout version 4")
+                        if os.path.exists(bb.data.expand("${STAGING_DIR_NATIVE}${bindir_native}/${MULTIMACH_HOST_SYS}", e.data)):
+                            os.system(bb.data.expand("mv ${STAGING_DIR_NATIVE}${bindir_native}/${MULTIMACH_HOST_SYS} ${STAGING_BINDIR_CROSS}", e.data))
+                            os.system(bb.data.expand("ln -s ${STAGING_BINDIR_CROSS} ${STAGING_DIR_NATIVE}${bindir_native}/${MULTIMACH_HOST_SYS}", e.data))
+
+                        f = file(abifile, "w")
+                        f.write(current_abi)
 		elif (abi != current_abi):
 			# Code to convert from one ABI to another could go here if possible.
 			messages = messages + "Error, TMPDIR has changed ABI (%s to %s) and you need to either rebuild, revert or adjust it at your own risk.\n" % (abi, current_abi)
diff --git a/meta/conf/abi_version.conf b/meta/conf/abi_version.conf
index 3ffcb616ca..a3287a56fc 100644
--- a/meta/conf/abi_version.conf
+++ b/meta/conf/abi_version.conf
@@ -4,4 +4,4 @@
 # that breaks the format and have been previously discussed on the mailing list 
 # with general agreement from the core team.
 #
-OELAYOUT_ABI = "3"
+OELAYOUT_ABI = "4"
diff --git a/meta/conf/bitbake.conf b/meta/conf/bitbake.conf
index 1745688fa8..ee652e79e1 100644
--- a/meta/conf/bitbake.conf
+++ b/meta/conf/bitbake.conf
@@ -254,7 +254,7 @@ STAGING_DIR = "${TMPDIR}/sysroots"
 
 STAGING_DIR_NATIVE = "${STAGING_DIR}/${BUILD_SYS}"
 STAGING_BINDIR_NATIVE = "${STAGING_DIR_NATIVE}${bindir_native}"
-STAGING_BINDIR_CROSS  = "${STAGING_DIR_NATIVE}${bindir_native}/${MULTIMACH_HOST_SYS}"
+STAGING_BINDIR_CROSS = "${STAGING_BINDIR}/crossscripts"
 STAGING_LIBDIR_NATIVE = "${STAGING_DIR_NATIVE}${libdir_native}"
 STAGING_INCDIR_NATIVE = "${STAGING_DIR_NATIVE}${includedir_native}"
 STAGING_ETCDIR_NATIVE = "${STAGING_DIR_NATIVE}${sysconfdir_native}"