Previously, we would only search for default*.do in the same directory in
the target; now we search parent directories as well.
Let's say we're in a/b/ and trying to build foo.o. If we find
../../default.o.do, then we'll run
cd ../..; sh default.o.do a/b/foo .o $TMPNAME
In other words, we still always chdir to the same directory as the .do file.
But now $1 might have a path in it, not just a basename.