Take a look at how phpBB or SMF handle this issue. A typical way is to specify a "config" file which holds the paths you need.
SMF for example uses:
$boardurl = 'http://127.0.0.1/smf'; #URL to your forum
$boarddir = dirname(__FILE__); #absolute path to folder
$sourcedir = dirname(__FILE__) . '/Sources'; #path to sources folder
Now, they have a unique way to do administration in that they call index.php?action=admin rather than using /admin/index.php. I personally prefer the first method as paths are not needed anymore.
However, if you really want to work around this, you might want to read over at [url=http://********instance.com]getInstance[/url] Matt Zandstra's article "Death to the Dot" which talks about two ways to remove "relative" paths from include() statements.