cygwin1.dll 1.7 problem

What steps will reproduce the problem?
1. install cygwin 1.5.25 in c:\cygwin
2. install cygwin2 1.7 in c:\cygwin2 (for example :)
3. install puttycyg in c:\cygwin2\usr\local\bin
4. run putty -cygterm -

What is the expected output?
$ uname -r
1.7.0(0.186/5/3)

What do you see instead?
$ uname -r
1.5.25(0.156/4/2)

Which version of PuTTYcyg are you using?
20071202

Which version of Windows?
Vista SP1

What version of Cygwin?
both 1.5.25 ant 1.7

Do you have a dual-core system or multiple CPUs?
yes

Any firewall software installed?
no

Please provide any additional information below.
cthelper search cygwin1.dll in :
c:\cygwin2\usr\local\bin
c:\windows\system32
c:\windows\system
c:\windows
then
c:\cygwin2
$PATH
c:\cygwin\bin

while it should also search for :
c:\cygwin2\usr\bin
c:\cygwin2\bin

from its run path before to try for :
c:\cygwin2

to bypass this problem, simply copy
c:\cygwin2\bin\cygwin1.dll to c:\cygwin2

but that's not ideal in case of
c:\cygwin2\bin\cygwin1.dll upgrade

thanks to sysinternal procmon which help
me to locate the problem...

Original issue reported on code.google.com by lefevre.cyrille@gmail.com on 14 Nov 2008 at 3:22

maxming2333 / puttycyg

cygwin1.dll 1.7 problem #12