Problem with \installfont in fontinst 1.8

[Rebecca and Rowland]

I've just downloaded fontinst 1.8 from CTAN and tried this:

\input fontinst.sty

\installfonts
%
\installfamily{OT1}{cmrod}{\hyphenchar\font45 }
       \installfont {cmrod10} {cmr10, cmmi10,dostretch} {OT19}
                    {OT1} {cmrod}{m}{n} {<10> <10.95>}

[snip]

\endinstallfonts

The directory containing the above file also contains:

cmcsc10.pl
cmcsc8.pl
cmcsc9.pl
dostretch.mtx

Now...  The fontinst documentation says that the second argument to
\installfont should refer to afm, mtx, or pl files.  What I get from
fontinst is this:

! I can't find file `cmr10.mtx'.
<to be read again>
                   \x_relax
\inputmtx ...rimitiveinput #1.mtx\x_relax
                                          \let \relax =\x_relax
\input_mtx_file ...i \inputmtx \file_name
                                          \fi \fi
<argument> \input_mtx_file {cmr10}
                                  \input_mtx_files  cmmi10,dostretch,...
\identity_one #1->#1

\install_font ...ax ,\end_input_mtx_files
                                          \global \let \prev_file_lis...
l.8 ... {OT1} {cmrod}{m}{n} {<10> <10.95>}


which implies that it no longer looks for anything but mtx files.  Can
anyone explain what's going on, and what should be done about it?

Rowland.