diff --git a/source/java/org/alfresco/repo/module/tool/ModuleManagementTool.java b/source/java/org/alfresco/repo/module/tool/ModuleManagementTool.java
index ebdc546666..93eb9fd9ed 100644
--- a/source/java/org/alfresco/repo/module/tool/ModuleManagementTool.java
+++ b/source/java/org/alfresco/repo/module/tool/ModuleManagementTool.java
@@ -583,6 +583,14 @@ public class ModuleManagementTool implements LogOutput
                             backupLocation = BACKUP_DIR + "/" + generateGuid() + ".bin";
                             if (preview == false)
                             {
+                                //Create the directory if it doesn't exist.
+                                TFile backupLocationDirectory = new TFile(warFileLocation+ BACKUP_DIR);
+                                if (!backupLocationDirectory.exists())
+                                {
+                                    backupLocationDirectory.mkdir();
+                                }
+                                
+                                //Backup the file
                                 TFile backupFile = new TFile(warFileLocation + backupLocation);
                                 destinationChild.cp_rp(backupFile);
                             }
diff --git a/source/java/org/alfresco/repo/module/tool/ModuleManagementToolTest.java b/source/java/org/alfresco/repo/module/tool/ModuleManagementToolTest.java
index ce9565abe1..8b7f417398 100644
--- a/source/java/org/alfresco/repo/module/tool/ModuleManagementToolTest.java
+++ b/source/java/org/alfresco/repo/module/tool/ModuleManagementToolTest.java
@@ -250,7 +250,7 @@ public class ModuleManagementToolTest extends TestCase
     {
         manager.setVerbose(true);
         
-        String warLocation = getFileLocation(".war", "module/test.war");
+        String warLocation = getFileLocation(".war", "module/alfresco-4.2.c.war");
         String ampLocation = getFileLocation(".amp", "module/test_v4.amp");
 
         try
@@ -263,8 +263,18 @@ public class ModuleManagementToolTest extends TestCase
         {
         	assertTrue(e.getMessage().contains("The amp will overwrite an existing file"));
         }
-        this.manager.installModule(ampLocation, warLocation, false, true, false); //install it again
-        this.manager.installModule(ampLocation, warLocation, false, true, false); //install it again, just to be sure
+        
+        String ampv2Location = getFileLocation(".amp", "module/test_v2.amp");
+        warLocation = getFileLocation(".war", "module/alfresco-4.2.c.war");  //Get a new war file
+        this.manager.installModule(ampLocation, warLocation, false, true, false); //install v1
+        this.manager.installModule(ampv2Location, warLocation, false, true, false); //install v2
+        
+        //install another amp that replaces the same files
+        ampLocation = getFileLocation(".amp", "module/test_v4.amp");
+        warLocation = getFileLocation(".war", "module/alfresco-4.2.c.war");  //Get a new war file
+        String amp5Location = getFileLocation(".amp", "module/test_v7.amp");  //new amp that overides existing files
+        this.manager.installModule(ampLocation, warLocation, false, true, false);
+        this.manager.installModule(amp5Location, warLocation, false, true, false);
     }
     
     public void testInstallFromDir()
diff --git a/source/test-resources/module/alfresco-4.2.c.war b/source/test-resources/module/alfresco-4.2.c.war
new file mode 100755
index 0000000000..9ddb788f99
Binary files /dev/null and b/source/test-resources/module/alfresco-4.2.c.war differ
diff --git a/source/test-resources/module/test_v7.amp b/source/test-resources/module/test_v7.amp
new file mode 100755
index 0000000000..e1b81e4aea
Binary files /dev/null and b/source/test-resources/module/test_v7.amp differ