diff --git a/developer/src/tike/project/Keyman.Developer.System.Project.ProjectFile.pas b/developer/src/tike/project/Keyman.Developer.System.Project.ProjectFile.pas
index 3dae6bf319d..9b7b0da5f7a 100644
--- a/developer/src/tike/project/Keyman.Developer.System.Project.ProjectFile.pas
+++ b/developer/src/tike/project/Keyman.Developer.System.Project.ProjectFile.pas
@@ -617,8 +617,6 @@ function TProjectFile.IsSourceFile: Boolean;
 end;
 
 procedure TProjectFile.Load(node: IXMLNode);   // I4698
-var
-  i: Integer;
 begin
   if node.ChildNodes.IndexOf('ID') >= 0 then
     FID := CleanID(VarToWideStr(node.ChildValues['ID']));
@@ -651,8 +649,6 @@ procedure TProjectFile.RemoveFreeNotification(
 end;
 
 procedure TProjectFile.Save(node: IXMLNode);   // I4698
-var
-  I: Integer;
 begin
   node.AddChild('ID').NodeValue := FID;
   node.AddChild('Filename').NodeValue := ExtractFileName(FFileName);
@@ -1019,6 +1015,7 @@ function TProject.CanUpgrade: Boolean;
 var
   i: Integer;
   Path: string;
+  SourcePath: string;
 begin
   if FOptions.Version = pv20 then
   begin
@@ -1043,6 +1040,8 @@ function TProject.CanUpgrade: Boolean;
     FUpgradeMessages.Add('The BuildPath project setting contains the "$VERSION" tag, which is no longer supported');
   end;
 
+  SourcePath := '?';
+
   for i := 0 to Files.Count - 1 do
   begin
     if Assigned(Files[i].Parent) then
@@ -1051,6 +1050,21 @@ function TProject.CanUpgrade: Boolean;
     end;
 
     Path := ExtractRelativePath(FileName, Files[i].FileName);
+
+    // Ensure all compileable files
+    if Files[i].IsCompilable then
+    begin
+      if SourcePath = '?' then
+      begin
+        SourcePath := ExtractFileDir(Path)
+      end
+      else if not SameFileName(SourcePath, ExtractFileDir(Path)) then
+      begin
+        FUpgradeMessages.Add('File '+Files[i].FileName+' is not in the same folder as at least one other source file. All primary source files must be in the same folder.');
+        Result := False;
+      end;
+    end;
+
     if IsRelativePath(Path) and not Path.StartsWith('..') then
     begin
       // Path is in same folder or a subfolder of the project
@@ -1074,8 +1088,17 @@ function TProject.Upgrade: Boolean;
 
   Options.Version := pv20;
 
-  if DirectoryExists(ExtractFilePath(FileName) + 'source') then
-    Options.SourcePath := '$PROJECTPATH\source';
+  // Set location of all source files, default to 'source' if no source files
+  // are present in the project
+  Options.SourcePath := '$PROJECTPATH\source';
+  for i := 0 to Files.Count - 1 do
+  begin
+    if Files[i].IsCompilable then
+    begin
+      Options.SourcePath := '$PROJECTPATH\' + ExtractFileDir(ExtractRelativePath(FFileName, Files[i].FileName));
+      Break;
+    end;
+  end;
 
   for i := Files.Count - 1 downto 0 do
   begin
diff --git a/developer/src/tike/project/Keyman.Developer.System.Project.xmlLdmlProjectFile.pas b/developer/src/tike/project/Keyman.Developer.System.Project.xmlLdmlProjectFile.pas
index 11d6d25c88d..9609b899282 100644
--- a/developer/src/tike/project/Keyman.Developer.System.Project.xmlLdmlProjectFile.pas
+++ b/developer/src/tike/project/Keyman.Developer.System.Project.xmlLdmlProjectFile.pas
@@ -145,10 +145,6 @@ function TxmlLdmlProjectFile.GetTargetFilename: string;
 end;
 
 procedure TxmlLdmlProjectFile.GetFileParameters;
-var
-  j: Integer;
-  value: WideString;
-  FVersion: string;   // I4701
 begin
   FHeader_Name := '';
   FKVKFileName := '';
diff --git a/developer/src/tike/project/Keyman.Developer.UI.Project.xmlLdmlProjectFileUI.pas b/developer/src/tike/project/Keyman.Developer.UI.Project.xmlLdmlProjectFileUI.pas
index 793c12dff6d..e4abe152010 100644
--- a/developer/src/tike/project/Keyman.Developer.UI.Project.xmlLdmlProjectFileUI.pas
+++ b/developer/src/tike/project/Keyman.Developer.UI.Project.xmlLdmlProjectFileUI.pas
@@ -21,7 +21,6 @@ interface
   TxmlLdmlProjectFileUI = class(TOpenableProjectFileUI)
   private
     function TestKeymanWeb(FSilent: Boolean): Boolean;
-    function DebugKeyboard(FSilent: Boolean): Boolean;
     function InstallKeyboard: Boolean;
     function UninstallKeyboard: Boolean;
     function GetProjectFile: TxmlLdmlProjectFileAction;
@@ -234,15 +233,6 @@ function TxmlLdmlProjectFileUI.UninstallKeyboard: Boolean;
   Result := KeymanDeveloperUtils.UninstallKeyboard(ChangeFileExt(ExtractFileName(ProjectFile.FileName), ''));
 end;
 
-function TxmlLdmlProjectFileUI.DebugKeyboard(FSilent: Boolean): Boolean;
-var
-  editor: TfrmLdmlKeyboardEditor;
-begin
-  editor := frmKeymanDeveloper.OpenEditor(ProjectFile.FileName, TfrmLdmlKeyboardEditor) as TfrmLdmlKeyboardEditor;
-//  editor.StartDebugging;
-  Result := True;
-end;
-
 function TxmlLdmlProjectFileUI.TestKeyboardState(FCompiledName: string; FSilent: Boolean): Boolean;
 var
   ftxml, ftkmx: TDateTime;