diff --git a/lib/Doctrine/ORM/Tools/Setup.php b/lib/Doctrine/ORM/Tools/Setup.php
index 33bdbf53a..ddfc552e8 100644
--- a/lib/Doctrine/ORM/Tools/Setup.php
+++ b/lib/Doctrine/ORM/Tools/Setup.php
@@ -115,7 +115,7 @@ class Setup
      */
     static public function createAnnotationMetadataConfiguration(array $paths, $isDevMode = false, $proxyDir = null, Cache $cache = null)
     {
-        $config = self::createConfiguration($isDevMode, $cache, $proxyDir);
+        $config = self::createConfiguration($isDevMode, $proxyDir, $cache);
         $config->setMetadataDriverImpl($config->newDefaultAnnotationDriver($paths));
         return $config;
     }
@@ -131,7 +131,7 @@ class Setup
      */
     static public function createXMLMetadataConfiguration(array $paths, $isDevMode = false, $proxyDir = null, Cache $cache = null)
     {
-        $config = self::createConfiguration($isDevMode, $cache, $proxyDir);
+        $config = self::createConfiguration($isDevMode, $proxyDir, $cache);
         $config->setMetadataDriverImpl(new XmlDriver($paths));
         return $config;
     }
@@ -147,7 +147,7 @@ class Setup
      */
     static public function createYAMLMetadataConfiguration(array $paths, $isDevMode = false, $proxyDir = null, Cache $cache = null)
     {
-        $config = self::createConfiguration($isDevMode, $cache, $proxyDir);
+        $config = self::createConfiguration($isDevMode, $proxyDir, $cache);
         $config->setMetadataDriverImpl(new YamlDriver($paths));
         return $config;
     }
@@ -162,6 +162,7 @@ class Setup
      */
     static public function createConfiguration($isDevMode = false, $proxyDir = null, Cache $cache = null)
     {
+        $proxyDir = $proxyDir ?: sys_get_temp_dir();
         if ($isDevMode === false && $cache === null) {
             if (extension_loaded('apc')) {
                 $cache = new \Doctrine\Common\Cache\ApcCache;
@@ -175,16 +176,16 @@ class Setup
             } else {
                 $cache = new ArrayCache;
             }
-            $cache->setNamespace("dc2_"); // to avoid collisions
         } else if ($cache === null) {
             $cache = new ArrayCache;
         }
+        $cache->setNamespace("dc2_" . md5($proxyDir) . "_"); // to avoid collisions
         
         $config = new Configuration();
         $config->setMetadataCacheImpl($cache);
         $config->setQueryCacheImpl($cache);
         $config->setResultCacheImpl($cache);
-        $config->setProxyDir( $proxyDir ?: sys_get_temp_dir() );
+        $config->setProxyDir( $proxyDir );
         $config->setProxyNamespace('DoctrineProxies');
         $config->setAutoGenerateProxyClasses($isDevMode);
         
diff --git a/tests/Doctrine/Tests/ORM/Tools/SetupTest.php b/tests/Doctrine/Tests/ORM/Tools/SetupTest.php
index 27a1f413c..643464df0 100644
--- a/tests/Doctrine/Tests/ORM/Tools/SetupTest.php
+++ b/tests/Doctrine/Tests/ORM/Tools/SetupTest.php
@@ -3,6 +3,7 @@
 namespace Doctrine\Tests\ORM\Tools;
 
 use Doctrine\ORM\Tools\Setup;
+use Doctrine\Common\Cache\ArrayCache;
 
 require_once __DIR__ . '/../../TestInit.php';
 
@@ -69,6 +70,28 @@ class SetupTest extends \Doctrine\Tests\OrmTestCase
         $this->assertInstanceOf('Doctrine\ORM\Configuration', $config);
         $this->assertInstanceOf('Doctrine\ORM\Mapping\Driver\YamlDriver', $config->getMetadataDriverImpl());
     }
+
+    /**
+     * @group DDC-1350
+     */
+    public function testConfigureProxyDir()
+    {
+        $config = Setup::createAnnotationMetadataConfiguration(array(), true, "/foo");
+        $this->assertEquals('/foo', $config->getProxyDir());
+    }
+
+    /**
+     * @group DDC-1350
+     */
+    public function testConfigureCache()
+    {
+        $cache = new ArrayCache();
+        $config = Setup::createAnnotationMetadataConfiguration(array(), true, null, $cache);
+        
+        $this->assertSame($cache, $config->getResultCacheImpl());
+        $this->assertSame($cache, $config->getMetadataCacheImpl());
+        $this->assertSame($cache, $config->getQueryCacheImpl());
+    }
     
     public function tearDown()
     {