use lib '.';

[Ryan, Martin]

> > Is the context such that '.' would ever be removed from @INC?
> > That's the only reason I could see for "use lib '.'".
> 
> Nope pay attention to below. 

[ Sits up straight with focused gaze...] :-) 

> The @INC is searched in order.

[ my output deleted ]

> Now . is checked first.

[ Excellent pair of examples where this is relevant deleted ]

Of course!  Thanks for your explanation - I found it very illuminating.

Cheers,
Martin