diff --git a/cmds/installd/commands.c b/cmds/installd/commands.c
index c8d1397785bca..654ee68fcd53d 100644
--- a/cmds/installd/commands.c
+++ b/cmds/installd/commands.c
@@ -404,6 +404,15 @@ int get_size(const char *pkgname, const char *apkpath,
         }
     }
 
+        /* count the source apk as code -- but only if it's not
+         * installed on the sdcard
+         */
+    if (strncmp(apkpath, SDCARD_DIR_PREFIX, 7) != 0) {
+        if (stat(apkpath, &s) == 0) {
+            codesize += stat_size(&s);
+        }
+    }
+
 
         /* count the cached dexfile as code */
     if (!create_cache_path(path, apkpath)) {
diff --git a/core/java/com/android/internal/content/PackageHelper.java b/core/java/com/android/internal/content/PackageHelper.java
index de6a1758e6049..80efca4da04da 100644
--- a/core/java/com/android/internal/content/PackageHelper.java
+++ b/core/java/com/android/internal/content/PackageHelper.java
@@ -40,6 +40,10 @@ public class PackageHelper {
     public static final int RECOMMEND_FAILED_ALREADY_EXISTS = -4;
     private static final boolean localLOGV = true;
     private static final String TAG = "PackageHelper";
+    // App installation location settings values
+    public static final int APP_INSTALL_AUTO = 0;
+    public static final int APP_INSTALL_INTERNAL = 1;
+    public static final int APP_INSTALL_EXTERNAL = 2;
 
     public static IMountService getMountService() {
         IBinder service = ServiceManager.getService("mount");
diff --git a/packages/DefaultContainerService/src/com/android/defcontainer/DefaultContainerService.java b/packages/DefaultContainerService/src/com/android/defcontainer/DefaultContainerService.java
index 4635f488c76c4..7714911514cdb 100644
--- a/packages/DefaultContainerService/src/com/android/defcontainer/DefaultContainerService.java
+++ b/packages/DefaultContainerService/src/com/android/defcontainer/DefaultContainerService.java
@@ -349,11 +349,11 @@ public class DefaultContainerService extends IntentService {
                 int installPreference = Settings.System.getInt(getApplicationContext()
                         .getContentResolver(),
                         Settings.System.DEFAULT_INSTALL_LOCATION,
-                        PackageInfo.INSTALL_LOCATION_AUTO);
-                if (installPreference == 1) {
+                        PackageHelper.APP_INSTALL_AUTO);
+                if (installPreference == PackageHelper.APP_INSTALL_INTERNAL) {
                     installOnlyInternal = true;
                     auto = false;
-                } else if (installPreference == 2) {
+                } else if (installPreference == PackageHelper.APP_INSTALL_EXTERNAL) {
                     installOnlyOnSd = true;
                     auto = false;
                 }
diff --git a/packages/SettingsProvider/res/values/defaults.xml b/packages/SettingsProvider/res/values/defaults.xml
index 64bb0efb49bb9..34302c4792abe 100644
--- a/packages/SettingsProvider/res/values/defaults.xml
+++ b/packages/SettingsProvider/res/values/defaults.xml
@@ -56,7 +56,10 @@
     <bool name="def_mount_ums_autostart">false</bool>
     <bool name="def_mount_ums_prompt">true</bool>
     <bool name="def_mount_ums_notify_enabled">true</bool>
+    <!-- Enable User preference for setting install location -->
     <bool name="set_install_location">true</bool>
+    <!-- Default install location if user preference for setting install location is turned on. -->
+    <integer name="def_install_location">2</integer>
 
     <!-- user interface sound effects -->
     <integer name="def_power_sounds_enabled">1</integer>
@@ -72,5 +75,4 @@
 
     <!-- Default for Settings.System.VIBRATE_IN_SILENT -->
     <bool name="def_vibrate_in_silent">true</bool>
-
 </resources>
diff --git a/packages/SettingsProvider/src/com/android/providers/settings/DatabaseHelper.java b/packages/SettingsProvider/src/com/android/providers/settings/DatabaseHelper.java
index edf3923dd30e0..ba66dc5632f55 100644
--- a/packages/SettingsProvider/src/com/android/providers/settings/DatabaseHelper.java
+++ b/packages/SettingsProvider/src/com/android/providers/settings/DatabaseHelper.java
@@ -61,7 +61,7 @@ public class DatabaseHelper extends SQLiteOpenHelper {
     // database gets upgraded properly. At a minimum, please confirm that 'upgradeVersion'
     // is properly propagated through your change.  Not doing so will result in a loss of user
     // settings.
-    private static final int DATABASE_VERSION = 53;
+    private static final int DATABASE_VERSION = 54;
 
     private Context mContext;
 
@@ -650,6 +650,25 @@ public class DatabaseHelper extends SQLiteOpenHelper {
 
             upgradeVersion = 53;
         }
+        
+        if (upgradeVersion == 53) {
+            /*
+             * New settings for set install location UI.
+             */
+            db.beginTransaction();
+            try {
+                 SQLiteStatement stmt = db.compileStatement("INSERT INTO system(name,value)"
+                         + " VALUES(?,?);");
+                 loadIntegerSetting(stmt, Settings.System.DEFAULT_INSTALL_LOCATION,
+                         R.integer.def_install_location);
+                 stmt.close();
+                 db.setTransactionSuccessful();
+             } finally {
+                 db.endTransaction();
+             }
+
+            upgradeVersion = 54;
+        }
 
         // *** Remember to update DATABASE_VERSION above!
 
@@ -943,9 +962,10 @@ public class DatabaseHelper extends SQLiteOpenHelper {
 
         loadBooleanSetting(stmt, Settings.System.NOTIFICATION_LIGHT_PULSE,
                 R.bool.def_notification_pulse);
-        loadBooleanSetting(stmt, Settings.System.SET_INSTALL_LOCATION, R.bool.set_install_location);
-        loadSetting(stmt, Settings.System.DEFAULT_INSTALL_LOCATION,
-                PackageInfo.INSTALL_LOCATION_INTERNAL_ONLY);
+        loadBooleanSetting(stmt, Settings.System.SET_INSTALL_LOCATION,
+                R.bool.set_install_location);
+        loadIntegerSetting(stmt, Settings.System.DEFAULT_INSTALL_LOCATION,
+                R.integer.def_install_location);
 
         loadUISoundEffectsSettings(stmt);
 
diff --git a/tests/AndroidTests/src/com/android/unit_tests/PackageManagerTests.java b/tests/AndroidTests/src/com/android/unit_tests/PackageManagerTests.java
index d4435d35a8f2e..8c8b00cb224d1 100755
--- a/tests/AndroidTests/src/com/android/unit_tests/PackageManagerTests.java
+++ b/tests/AndroidTests/src/com/android/unit_tests/PackageManagerTests.java
@@ -16,6 +16,8 @@
 
 package com.android.unit_tests;
 
+import com.android.internal.content.PackageHelper;
+
 import android.os.storage.IMountService.Stub;
 
 import android.net.Uri;
@@ -73,9 +75,9 @@ public class PackageManagerTests extends AndroidTestCase {
     public final long MAX_WAIT_TIME=120*1000;
     public final long WAIT_TIME_INCR=20*1000;
     private static final String SECURE_CONTAINERS_PREFIX = "/mnt/asec";
-    private static final int APP_INSTALL_AUTO = 0;
-    private static final int APP_INSTALL_DEVICE = 1;
-    private static final int APP_INSTALL_SDCARD = 2;
+    private static final int APP_INSTALL_AUTO = PackageHelper.APP_INSTALL_AUTO;
+    private static final int APP_INSTALL_DEVICE = PackageHelper.APP_INSTALL_INTERNAL;
+    private static final int APP_INSTALL_SDCARD = PackageHelper.APP_INSTALL_EXTERNAL;
 
     void failStr(String errMsg) {
         Log.w(TAG, "errMsg="+errMsg);