Did you actually try this?
otherwise i wouldn't ask.
maybe i just don't get it, but it has always worked for me to install my modules with setting PREFIX and LIB. i just asked for an example. show me a module where it doesn't work. that's all i asked for. i would be really interested because i use the PREFIX/LIB method for my cgipan script and i would like to correct it if it has got a mistake.
in your blog you gave the reason why it doesn't work to set PREFIX. but you didn't say that using PREFIX and LIB together fails.

In reply to Re^3: Installing modules to a private module directory by tinita
in thread Installing modules to a private module directory by Dominus

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