careful when naming your include files with .inc, because if I can guess the name of your include or a php file shows a warning with the filename in it or whatever, then I can request the file and get the code from that file.
So make sure you add the .inc type to your webserver so php processes it, or do as I do, and name all you include files like _includefile.php.
I use the _ to denote it's a library file with commonly used user defined functions.
As for the path problem. I either keep everything in the same directory. The _include files are all clumped together so it usually works out well.
Or I use subdirectories. So my root has only a index.php with no includes and redirects to a subdir/index.php.
Then I can keep my files to be included in the root. No files in the root do the including, only the files in the subdirs do.
Then in subdir/index.php I can:
require('../_library.php');
Make sense? I think I even confuse myself sometimes.