diff --git a/configure.ac b/configure.ac
index 62a384860..c5c96f621 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1509,8 +1509,9 @@ if test "$KDRIVE" = yes; then
 
     PKG_CHECK_MODULES(XEPHYR, x11 xext xfont xau xdmcp, [xephyr="yes"], [xephyr="no"])
     if test "x$XEPHYR" = xauto; then
-       XEPHYR=xephyr
+        XEPHYR=$xephyr
     fi
+
     # Xephyr needs nanosleep() which is in librt on Solaris
     AC_CHECK_FUNC([nanosleep], [],
         AC_CHECK_LIB([rt], [nanosleep], XEPHYR_LIBS="$XEPHYR_LIBS -lrt"))
@@ -1556,7 +1557,7 @@ AM_CONDITIONAL(H3600_TS, false)
 AM_CONDITIONAL(KDRIVEVESA, [test "x$KDRIVEVESA" = xyes])
 AM_CONDITIONAL(KDRIVEFBDEV, [test "x$XFBDEV" = xyes])
 AM_CONDITIONAL(XSDLSERVER, [test x"$XSDL" = xyes])
-AM_CONDITIONAL(XEPHYR, [test "x$KDRIVE" = xyes && test "x$xephyr" = xyes])
+AM_CONDITIONAL(XEPHYR, [test "x$KDRIVE" = xyes && test "x$XEPHYR" = xyes])
 AM_CONDITIONAL(BUILD_KDRIVEFBDEVLIB, [test "x$KDRIVE" = xyes && test "x$KDRIVEFBDEVLIB" = xyes])
 AM_CONDITIONAL(XFAKESERVER, [test "x$KDRIVE" = xyes && test "x$XFAKE" = xyes])