diff --git a/.npmignore b/.npmignore
index bb31bc1..9d4619e 100644
--- a/.npmignore
+++ b/.npmignore
@@ -4,4 +4,5 @@ tsconfig.json
 tsconfig.build.json
 .editorconfig
 knip.json
+example
 node_modules/
\ No newline at end of file
diff --git a/README.md b/README.md
index 863671f..6bbe71b 100644
--- a/README.md
+++ b/README.md
@@ -206,7 +206,7 @@ Steps for updating diff algorithm:
 * Verify with `npm run build` that all code is self-contained.
 * Verify with `npm run knip` that there are no unused files or exports.
 * Run `npm test` to run all the tests.
-* Update [src/example.ts] on any API changes.
+* Update [example/example.ts] on any API changes.
 * Run `npm run example` and update this README with example usage code and output.
 * Include VS Code version and commit hash in commit message.
 
diff --git a/src/example.ts b/example/example.ts
similarity index 65%
rename from src/example.ts
rename to example/example.ts
index 42773e7..0013c56 100644
--- a/src/example.ts
+++ b/example/example.ts
@@ -1,13 +1,13 @@
-import { AdvancedLinesDiffComputer, DiffComputer, IDiffComputerOpts, ILineChange, ILinesDiffComputerOptions } from 'vscode-diff';
+import { AdvancedLinesDiffComputer, DiffComputer, IDiffComputerOpts, ILineChange, ILinesDiffComputerOptions } from '../dist';
 
 let originalLines: string[] = ["hello", "original", "world"];
 let modifiedLines: string[] = ["hello", "modified", "world", "foobar"];
 let options: IDiffComputerOpts = {
-  shouldPostProcessCharChanges: true,
-  shouldIgnoreTrimWhitespace: true,
-  shouldMakePrettyDiff: true,
-  shouldComputeCharChanges: true,
-  maxComputationTime: 0 // time in milliseconds, 0 => no computation limit.
+	shouldPostProcessCharChanges: true,
+	shouldIgnoreTrimWhitespace: true,
+	shouldMakePrettyDiff: true,
+	shouldComputeCharChanges: true,
+	maxComputationTime: 0 // time in milliseconds, 0 => no computation limit.
 }
 let diffComputer = new DiffComputer(originalLines, modifiedLines, options);
 let lineChanges: ILineChange[] = diffComputer.computeDiff().changes;
@@ -16,9 +16,9 @@ console.log(JSON.stringify(lineChanges, null, 2));
 
 
 let advOptions: ILinesDiffComputerOptions = {
-    ignoreTrimWhitespace: true,
-    computeMoves: true,
-    maxComputationTimeMs: 0
+	ignoreTrimWhitespace: true,
+	computeMoves: true,
+	maxComputationTimeMs: 0
 }
 let advDiffComputer = new AdvancedLinesDiffComputer()
 let advLineChanges = advDiffComputer.computeDiff(originalLines, modifiedLines, advOptions).changes;
diff --git a/package.json b/package.json
index 9244dea..314ebaf 100644
--- a/package.json
+++ b/package.json
@@ -19,7 +19,7 @@
     "watch": "tsc --watch",
     "build": "tsc --project tsconfig.build.json",
     "knip": "knip",
-    "example": "ts-node src/example.ts"
+    "example": "yarn build && ts-node ./example/example.ts"
   },
   "keywords": [
     "diff",
diff --git a/src/vs/base/common/assert.ts b/src/vs/base/common/assert.ts
index 4264da5..fb1fd1a 100644
--- a/src/vs/base/common/assert.ts
+++ b/src/vs/base/common/assert.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { BugIndicatingError, onUnexpectedError } from 'vs/base/common/errors';
+import { BugIndicatingError, onUnexpectedError } from './errors';
 
 
 /**
diff --git a/src/vs/base/common/diff/diff.ts b/src/vs/base/common/diff/diff.ts
index 0a938b6..2402414 100644
--- a/src/vs/base/common/diff/diff.ts
+++ b/src/vs/base/common/diff/diff.ts
@@ -3,9 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { DiffChange } from 'vs/base/common/diff/diffChange';
-import { stringHash } from 'vs/base/common/hash';
-import { Constants } from 'vs/base/common/uint';
+import { stringHash } from '../hash';
+import { Constants } from '../uint';
+import { DiffChange } from './diffChange';
 
 export class StringDiffSequence implements ISequence {
 
diff --git a/src/vs/base/common/hash.ts b/src/vs/base/common/hash.ts
index b1ebac7..2f9ff51 100644
--- a/src/vs/base/common/hash.ts
+++ b/src/vs/base/common/hash.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import * as strings from 'vs/base/common/strings';
+import * as strings from './strings';
 
 export function doHash(obj: any, hashVal: number): number {
 	switch (typeof obj) {
diff --git a/src/vs/base/common/strings.ts b/src/vs/base/common/strings.ts
index 353af4b..9558414 100644
--- a/src/vs/base/common/strings.ts
+++ b/src/vs/base/common/strings.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { CharCode } from 'vs/base/common/charCode';
+import { CharCode } from './charCode';
 
 /**
  * Returns first index of the string that is not whitespace.
diff --git a/src/vs/base/test/common/diff/diff.test.ts b/src/vs/base/test/common/diff/diff.test.ts
index 0ccb5b5..71a56b1 100644
--- a/src/vs/base/test/common/diff/diff.test.ts
+++ b/src/vs/base/test/common/diff/diff.test.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as assert from 'assert';
-import { IDiffChange, LcsDiff, StringDiffSequence } from 'vs/base/common/diff/diff';
+import { IDiffChange, LcsDiff, StringDiffSequence } from '../../../common/diff/diff';
 
 function createArray<T>(length: number, value: T): T[] {
 	const r: T[] = [];
diff --git a/src/vs/editor/common/core/lineRange.ts b/src/vs/editor/common/core/lineRange.ts
index 70acb04..f33b878 100644
--- a/src/vs/editor/common/core/lineRange.ts
+++ b/src/vs/editor/common/core/lineRange.ts
@@ -3,9 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { BugIndicatingError } from 'vs/base/common/errors';
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
-import { Range } from 'vs/editor/common/core/range';
+import { BugIndicatingError } from '../../../base/common/errors';
+import { OffsetRange } from './offsetRange';
+import { Range } from './range';
 
 /**
  * A range of lines (1-based).
diff --git a/src/vs/editor/common/core/offsetRange.ts b/src/vs/editor/common/core/offsetRange.ts
index 27e60bc..fa4c473 100644
--- a/src/vs/editor/common/core/offsetRange.ts
+++ b/src/vs/editor/common/core/offsetRange.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { BugIndicatingError } from 'vs/base/common/errors';
+import { BugIndicatingError } from '../../../base/common/errors';
 
 /**
  * A range of offsets (0-based).
diff --git a/src/vs/editor/common/core/range.ts b/src/vs/editor/common/core/range.ts
index 7239639..a312089 100644
--- a/src/vs/editor/common/core/range.ts
+++ b/src/vs/editor/common/core/range.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { IPosition, Position } from 'vs/editor/common/core/position';
+import { IPosition, Position } from './position';
 
 /**
  * A range in the editor. This interface is suitable for serialization.
diff --git a/src/vs/editor/common/diff/advancedLinesDiffComputer.ts b/src/vs/editor/common/diff/advancedLinesDiffComputer.ts
index 55166f1..1917c2e 100644
--- a/src/vs/editor/common/diff/advancedLinesDiffComputer.ts
+++ b/src/vs/editor/common/diff/advancedLinesDiffComputer.ts
@@ -3,20 +3,20 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { Comparator, CompareResult, compareBy, equals, findLastIndex, numberComparator, reverseOrder } from 'vs/base/common/arrays';
-import { assertFn, checkAdjacentItems } from 'vs/base/common/assert';
-import { CharCode } from 'vs/base/common/charCode';
-import { SetMap } from 'vs/base/common/collections';
-import { BugIndicatingError } from 'vs/base/common/errors';
-import { LineRange } from 'vs/editor/common/core/lineRange';
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
-import { Position } from 'vs/editor/common/core/position';
-import { Range } from 'vs/editor/common/core/range';
-import { DateTimeout, ISequence, ITimeout, InfiniteTimeout, SequenceDiff } from 'vs/editor/common/diff/algorithms/diffAlgorithm';
-import { DynamicProgrammingDiffing } from 'vs/editor/common/diff/algorithms/dynamicProgrammingDiffing';
-import { optimizeSequenceDiffs, removeRandomLineMatches, removeRandomMatches, smoothenSequenceDiffs } from 'vs/editor/common/diff/algorithms/joinSequenceDiffs';
-import { MyersDiffAlgorithm } from 'vs/editor/common/diff/algorithms/myersDiffAlgorithm';
-import { ILinesDiffComputer, ILinesDiffComputerOptions, LineRangeMapping, LinesDiff, MovedText, RangeMapping, SimpleLineRangeMapping } from 'vs/editor/common/diff/linesDiffComputer';
+import { Comparator, CompareResult, compareBy, equals, findLastIndex, numberComparator, reverseOrder } from '../../../base/common/arrays';
+import { assertFn, checkAdjacentItems } from '../../../base/common/assert';
+import { CharCode } from '../../../base/common/charCode';
+import { SetMap } from '../../../base/common/collections';
+import { BugIndicatingError } from '../../../base/common/errors';
+import { LineRange } from '../core/lineRange';
+import { OffsetRange } from '../core/offsetRange';
+import { Position } from '../core/position';
+import { Range } from '../core/range';
+import { DateTimeout, ISequence, ITimeout, InfiniteTimeout, SequenceDiff } from '../diff/algorithms/diffAlgorithm';
+import { DynamicProgrammingDiffing } from '../diff/algorithms/dynamicProgrammingDiffing';
+import { optimizeSequenceDiffs, removeRandomLineMatches, removeRandomMatches, smoothenSequenceDiffs } from '../diff/algorithms/joinSequenceDiffs';
+import { MyersDiffAlgorithm } from '../diff/algorithms/myersDiffAlgorithm';
+import { ILinesDiffComputer, ILinesDiffComputerOptions, LineRangeMapping, LinesDiff, MovedText, RangeMapping, SimpleLineRangeMapping } from './linesDiffComputer';
 
 export class AdvancedLinesDiffComputer implements ILinesDiffComputer {
 	private readonly dynamicProgrammingDiffing = new DynamicProgrammingDiffing();
diff --git a/src/vs/editor/common/diff/algorithms/diffAlgorithm.ts b/src/vs/editor/common/diff/algorithms/diffAlgorithm.ts
index ce23a58..274d7be 100644
--- a/src/vs/editor/common/diff/algorithms/diffAlgorithm.ts
+++ b/src/vs/editor/common/diff/algorithms/diffAlgorithm.ts
@@ -3,8 +3,8 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { BugIndicatingError } from 'vs/base/common/errors';
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
+import { BugIndicatingError } from '../../../../base/common/errors';
+import { OffsetRange } from '../../core/offsetRange';
 
 /**
  * Represents a synchronous diff algorithm. Should be executed in a worker.
diff --git a/src/vs/editor/common/diff/algorithms/dynamicProgrammingDiffing.ts b/src/vs/editor/common/diff/algorithms/dynamicProgrammingDiffing.ts
index 2212ebe..5773e65 100644
--- a/src/vs/editor/common/diff/algorithms/dynamicProgrammingDiffing.ts
+++ b/src/vs/editor/common/diff/algorithms/dynamicProgrammingDiffing.ts
@@ -3,9 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
-import { IDiffAlgorithm, SequenceDiff, ISequence, ITimeout, InfiniteTimeout, DiffAlgorithmResult } from 'vs/editor/common/diff/algorithms/diffAlgorithm';
-import { Array2D } from 'vs/editor/common/diff/algorithms/utils';
+import { OffsetRange } from '../../core/offsetRange';
+import { DiffAlgorithmResult, IDiffAlgorithm, ISequence, ITimeout, InfiniteTimeout, SequenceDiff } from './diffAlgorithm';
+import { Array2D } from './utils';
 
 /**
  * A O(MN) diffing algorithm that supports a score function.
diff --git a/src/vs/editor/common/diff/algorithms/joinSequenceDiffs.ts b/src/vs/editor/common/diff/algorithms/joinSequenceDiffs.ts
index cef14d4..a2741eb 100644
--- a/src/vs/editor/common/diff/algorithms/joinSequenceDiffs.ts
+++ b/src/vs/editor/common/diff/algorithms/joinSequenceDiffs.ts
@@ -3,9 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
-import { ISequence, SequenceDiff } from 'vs/editor/common/diff/algorithms/diffAlgorithm';
-import { LineSequence, LinesSliceCharSequence } from 'vs/editor/common/diff/advancedLinesDiffComputer';
+import { OffsetRange } from '../../core/offsetRange';
+import { LineSequence, LinesSliceCharSequence } from '../advancedLinesDiffComputer';
+import { ISequence, SequenceDiff } from '../algorithms/diffAlgorithm';
 
 export function optimizeSequenceDiffs(sequence1: ISequence, sequence2: ISequence, sequenceDiffs: SequenceDiff[]): SequenceDiff[] {
 	let result = sequenceDiffs;
diff --git a/src/vs/editor/common/diff/algorithms/myersDiffAlgorithm.ts b/src/vs/editor/common/diff/algorithms/myersDiffAlgorithm.ts
index 049c5ff..410998c 100644
--- a/src/vs/editor/common/diff/algorithms/myersDiffAlgorithm.ts
+++ b/src/vs/editor/common/diff/algorithms/myersDiffAlgorithm.ts
@@ -3,8 +3,8 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { OffsetRange } from 'vs/editor/common/core/offsetRange';
-import { DiffAlgorithmResult, IDiffAlgorithm, ISequence, ITimeout, InfiniteTimeout, SequenceDiff } from 'vs/editor/common/diff/algorithms/diffAlgorithm';
+import { OffsetRange } from '../../core/offsetRange';
+import { DiffAlgorithmResult, IDiffAlgorithm, ISequence, ITimeout, InfiniteTimeout, SequenceDiff } from '../algorithms/diffAlgorithm';
 
 /**
  * An O(ND) diff algorithm that has a quadratic space worst-case complexity.
diff --git a/src/vs/editor/common/diff/legacyLinesDiffComputer.ts b/src/vs/editor/common/diff/legacyLinesDiffComputer.ts
index 5ea6524..d5b3d52 100644
--- a/src/vs/editor/common/diff/legacyLinesDiffComputer.ts
+++ b/src/vs/editor/common/diff/legacyLinesDiffComputer.ts
@@ -3,13 +3,13 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { CharCode } from 'vs/base/common/charCode';
-import { IDiffChange, ISequence, LcsDiff, IDiffResult } from 'vs/base/common/diff/diff';
-import { ILinesDiffComputer, ILinesDiffComputerOptions, RangeMapping, LineRangeMapping, LinesDiff } from 'vs/editor/common/diff/linesDiffComputer';
-import * as strings from 'vs/base/common/strings';
-import { Range } from 'vs/editor/common/core/range';
-import { assertFn, checkAdjacentItems } from 'vs/base/common/assert';
-import { LineRange } from 'vs/editor/common/core/lineRange';
+import { assertFn, checkAdjacentItems } from "../../../base/common/assert";
+import { CharCode } from "../../../base/common/charCode";
+import { IDiffChange, IDiffResult, ISequence, LcsDiff } from "../../../base/common/diff/diff";
+import * as strings from "../../../base/common/strings";
+import { LineRange } from "../core/lineRange";
+import { Range } from "../core/range";
+import { ILinesDiffComputer, ILinesDiffComputerOptions, LineRangeMapping, LinesDiff, RangeMapping } from "./linesDiffComputer";
 
 const MINIMUM_MATCHING_CHARACTER_LENGTH = 3;
 
diff --git a/src/vs/editor/common/diff/linesDiffComputer.ts b/src/vs/editor/common/diff/linesDiffComputer.ts
index d10888c..f1949f6 100644
--- a/src/vs/editor/common/diff/linesDiffComputer.ts
+++ b/src/vs/editor/common/diff/linesDiffComputer.ts
@@ -3,8 +3,9 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { LineRange } from 'vs/editor/common/core/lineRange';
-import { Range } from 'vs/editor/common/core/range';
+import { LineRange } from "../core/lineRange";
+import { Range } from "../core/range";
+
 
 export interface ILinesDiffComputer {
 	computeDiff(originalLines: string[], modifiedLines: string[], options: ILinesDiffComputerOptions): LinesDiff;
diff --git a/tsconfig.build.json b/tsconfig.build.json
index b853121..266dc82 100644
--- a/tsconfig.build.json
+++ b/tsconfig.build.json
@@ -1,4 +1,6 @@
 {
 	"extends": "./tsconfig.json",
-	"exclude": ["src/**/*.test.ts", "src/example.ts"]
-}
+	"exclude": [
+		"src/**/*.test.ts"
+	]
+}
\ No newline at end of file
diff --git a/tsconfig.json b/tsconfig.json
index dae3760..55ddf2e 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -1,27 +1,25 @@
 {
-    "compilerOptions": {
-      "target": "es2021",
-      "lib": [
-        "es2021",
-        "DOM"
-      ],
-      "module": "commonjs",
-      "declaration": true,
-      "outDir": "./dist",
-      "strict": true,
-      "useUnknownInCatchVariables": false,
-      "baseUrl": "./src",
-      "paths": {
-        "vscode-diff": ["./"],
-      }
-    },
-    "ts-node": {
-      "require": ["tsconfig-paths/register"]
-    },
-    "include": [
-      "src/**/*"
-    ],
-    "exclude": [
-      "node_modules"
-    ]
-}
+	"compilerOptions": {
+		"target": "es2021",
+		"lib": [
+			"es2021",
+			"DOM"
+		],
+		"module": "commonjs",
+		"declaration": true,
+		"outDir": "./dist",
+		"strict": true,
+		"useUnknownInCatchVariables": false,
+	},
+	"ts-node": {
+		"require": [
+			"tsconfig-paths/register"
+		]
+	},
+	"include": [
+		"src/**/*",
+	],
+	"exclude": [
+		"node_modules"
+	]
+}
\ No newline at end of file