diff --git a/modules/htmlout/lib/htmlout.js b/modules/htmlout/lib/htmlout.js
index 855897dff..2e35b6777 100644
--- a/modules/htmlout/lib/htmlout.js
+++ b/modules/htmlout/lib/htmlout.js
@@ -1400,7 +1400,7 @@ HTMLOut.prototype.getMachineXML = function(sToken, sIndent, aParms, sXMLFile, sS
                     s = m.convertMD("    ").trim();
 
                     obj.processMachines(m.getMachines(), function doneProcessXMLMachines() {
-                        obj.getReadMe(sToken, sIndent, aParms, s);
+                        obj.getReadMe(sToken, sIndent, aParms, s, true);
                     });
                     return;
                 }
@@ -1626,7 +1626,7 @@ HTMLOut.prototype.getManifestXML = function(sToken, sIndent, aParms)
 };
 
 /**
- * getReadMe(sToken, sIndent, aParms, sPrevious)
+ * getReadMe(sToken, sIndent, aParms, sPrevious, fMachineXML)
  *
  * If a "README.md" exists in the current directory, open it, convert it, and prepare for replacement.
  *
@@ -1635,8 +1635,9 @@ HTMLOut.prototype.getManifestXML = function(sToken, sIndent, aParms)
  * @param {string} [sIndent]
  * @param {Array.<string>} [aParms]
  * @param {string|null} [sPrevious] is text, if any, that should precede the README.md
+ * @param {boolean} [fMachineXML] true if a machine.xml file has already been processed by the caller
  */
-HTMLOut.prototype.getReadMe = function(sToken, sIndent, aParms, sPrevious)
+HTMLOut.prototype.getReadMe = function(sToken, sIndent, aParms, sPrevious, fMachineXML)
 {
     var obj = this;
     var sFile = path.join(this.sDir, sReadMeFile);
@@ -1663,7 +1664,7 @@ HTMLOut.prototype.getReadMe = function(sToken, sIndent, aParms, sPrevious)
                 obj.getMachineXML(sToken, sIndent);     // we don't pass along aParms, because those are for Markdown files only
             }
         } else {
-            var m = new MarkOut(s, sIndent, obj.req, aParms, obj.fDebug);
+            var m = new MarkOut(s, sIndent, obj.req, aParms, obj.fDebug, fMachineXML);
             s = m.convertMD("    ").trim();
             /*
              * If the Markdown document begins with a heading, stuff that into the <title> tag;
diff --git a/modules/markout/lib/markout.js b/modules/markout/lib/markout.js
index a9409c78a..217968e0c 100644
--- a/modules/markout/lib/markout.js
+++ b/modules/markout/lib/markout.js
@@ -95,8 +95,9 @@ var sDefaultFile = "./README.md";
  * @param {Object} [req] is the web server's (ie, Express) request object, if any
  * @param {Array.<string>|null} [aParms] is an array of overrides to use (see below)
  * @param {boolean} [fDebug] turns on debugging features (eg, debug comments, special URL encodings, etc)
+ * @param {boolean} [fMachineXML] true if a machine.xml file has already been processed by the caller
  */
-function MarkOut(sMD, sIndent, req, aParms, fDebug)
+function MarkOut(sMD, sIndent, req, aParms, fDebug, fMachineXML)
 {
     this.sMD = sMD;
     this.sIndent = (sIndent || "");
@@ -109,6 +110,7 @@ function MarkOut(sMD, sIndent, req, aParms, fDebug)
         this.sClassImageLabel = this.sClassImage + "-label";
     }
     this.fDebug = fDebug;
+    this.fMachineXML = fMachineXML;
     this.sHTML = null;
     this.aIDs = [];         // this keeps track of auto-generated ID attributes for page elements, to insure uniqueness
     this.aMachines = [];    // this keeps track of embedded machines on the page
@@ -993,9 +995,9 @@ MarkOut.prototype.convertMDMachineLinks = function(sBlock)
     var reIncludes = /\{%\s*include machine\.html\s+id="(.*?)"\s*%}/g;
 
     while ((aMatch = reIncludes.exec(sBlock))) {
+        sReplacement = "";
         sMachineID = aMatch[1];
-        sReplacement = "[Embedded PC]";
-        if (this.aMachineDefs[sMachineID]) {
+        if (!this.fMachineXML && this.aMachineDefs[sMachineID]) {
             var machine = this.aMachineDefs[sMachineID];
             sMachine = machine['type'] || "pc";
             sMachineOptions = (sMachine.indexOf("-dbg") > 0? "debugger" : "");
@@ -1004,7 +1006,7 @@ MarkOut.prototype.convertMDMachineLinks = function(sBlock)
             sMachineXSLFile = machine['template'] || "";
             sMachineVersion = (machine['uncompiled'] && machine['uncompiled'] == "true"? "uncompiled" : "");
             sMachineState = machine['state'] || "";
-            sReplacement += "(" + sMachineXMLFile + ' "' + sMachine + 'js:' + sMachineID + ':' + sMachineXSLFile + '::' + sMachineOptions + ':' + sMachineState + '")';
+            sReplacement = "[Embedded PC](" + sMachineXMLFile + ' "' + sMachine + 'js:' + sMachineID + ':' + sMachineXSLFile + '::' + sMachineOptions + ':' + sMachineState + '")';
         }
         sBlock = sBlock.replace(aMatch[0], sReplacement);
         reIncludes.lastIndex = 0;       // reset lastIndex, since we just modified the string that reIncludes is iterating over