It seems to me that looking for a loadable module in the same
directory that the VM exists in is a very sensible behavior.  For some
reason, the Linux VM does not do this.  There seems to be no security
reason for this; if a terrorist could put bad plugins in the VM
directory, said terrorist could also replace the VM with their own.

On a related note, "Smalltalk vmPath" incorrectly answers the
directory that the image resides in. 

Joshua