diff --git a/.cvsignore b/.cvsignore
index c618bbf..b74745c 100644
--- a/.cvsignore
+++ b/.cvsignore
@@ -3,3 +3,4 @@ xterm-200.tgz
 xterm-205.tgz
 xterm-205.tgz.asc
 xterm-206.tgz
+xterm-207.tgz
diff --git a/sources b/sources
index 2a61ca6..1c0d811 100644
--- a/sources
+++ b/sources
@@ -1 +1,2 @@
 21e22fe56f2af0b952619acbe0a1d7ae  xterm-206.tgz
+3de8a3756c284a46a08c6d0308909486  xterm-207.tgz
diff --git a/xterm.spec b/xterm.spec
index 5d13d1c..fe81b2f 100644
--- a/xterm.spec
+++ b/xterm.spec
@@ -1,7 +1,7 @@
 Summary: xterm terminal emulator for the X Window System
 Name:    xterm
-Version: 206
-Release: 4
+Version: 207
+Release: 1
 URL:     http://dickey.his.com/xterm
 License: MIT
 Group:   User Interface/X
@@ -12,7 +12,6 @@ Patch1: xterm-resources-redhat.patch
 Patch2: xterm-179-ppc-fix-bug-101472.patch
 Patch3: xterm-tty-group-name.patch
 Patch4: xterm-206-appsdir.patch
-BuildRequires: xorg-x11-proto-devel
 BuildRequires: libXft-devel
 BuildRequires: freetype-devel
 BuildRequires: libXrender-devel
@@ -53,14 +52,14 @@ programs that can't use the window system directly.
            --with-utempter \
            --disable-tek4014 \
 	   --enable-narrowproto \
-	   --with-app-defaults=%{_datadir}/X11/app-defaults \
+	   --with-app-defaults=%{_sysconfdir}/X11/app-defaults \
            %{?_with_256_color:--enable-256-color};
 export XTERM_TTY_GROUP_NAME=tty;
 make
 
 %install
 rm -rf $RPM_BUILD_ROOT
-%makeinstall appsdir=$RPM_BUILD_ROOT/%{_datadir}/X11/app-defaults
+%makeinstall appsdir=$RPM_BUILD_ROOT/%{_sysconfdir}/X11/app-defaults
 mkdir -p $RPM_BUILD_ROOT/%{_mandir}/man1
 mv $RPM_BUILD_ROOT/%{_mandir}/*.1 $RPM_BUILD_ROOT/%{_mandir}/man1/
 
@@ -74,12 +73,16 @@ mv $RPM_BUILD_ROOT/%{_mandir}/*.1 $RPM_BUILD_ROOT/%{_mandir}/man1/
 %{_bindir}/xterm
 %{_mandir}/man1/resize.1*
 %{_mandir}/man1/xterm.1*
-%{_datadir}/X11/app-defaults/UXTerm
-%{_datadir}/X11/app-defaults/XTerm
-%{_datadir}/X11/app-defaults/XTerm-color
+%{_sysconfdir}/X11/app-defaults/UXTerm
+%{_sysconfdir}/X11/app-defaults/XTerm
+%{_sysconfdir}/X11/app-defaults/XTerm-color
 %doc xterm.log.html ctlseqs.ms README.i18n
 
 %changelog
+* Mon Nov 14 2005 Jason Vas Dias<jvdias@redhat.com> - 207-1
+- Upgrade to upstream version 207
+- Fix app-defaults directory for modular X11
+
 * Sun Nov 13 2005 Jeremy Katz <katzj@redhat.com> - 206-4
 - rebuild for newer modular X