Take Sam Elkhateeb's path for "path" dependencies and clean it up some.

utils/tests/pub/install/path/nonexistent_dir_test.dart

-// Copyright (c) 2012, the Dart project authors.  Please see the AUTHORS file
+// Copyright (c) 2013, the Dart project authors.  Please see the AUTHORS file
 // for details. All rights reserved. Use of this source code is governed by a
 // BSD-style license that can be found in the LICENSE file.
 
-library pub_tests;
+import 'dart:io';
 
-import 'dart:io';
+import '../../../../../pkg/path/lib/path.dart' as path;
 
 import '../../test_pub.dart';
 
 main() {
-  integration('fails gracefully if the url does not resolve', () {
+  initConfig();
+  integration('path dependency to non-existent directory', () {
+    var badPath = path.join(sandboxDir, "bad_path");
+
     dir(appPath, [
       pubspec({
         "name": "myapp",
         "dependencies": {
-          "foo": {
-            "hosted": {
-              "name": "foo",
-              "url": "http://pub.invalid"
-            }
-          }
-         }
+          "foo": {"path": badPath}
+        }
       })
     ]).scheduleCreate();
 
     schedulePub(args: ['install'],
-        error: new RegExp('Could not resolve URL "http://pub.invalid".'),
+        error:
+            new RegExp("Could not find package 'foo' at '$badPath'."),
         exitCode: 1);
   });
-}
+}