Issue with node.js require.paths.unshift()

I'm new to node.js world, I'm using node.js v0.8.4. I googled for this issue. Yes, i got solutions for this, but still could not understand as a beginner. So please help me......

i was going through a node.js tutorial. In that tutorial node.js v0.1.103 is used and he writes

require.paths.unshift(__dirname+'/vendor');

var http = require('http'),
sys = require('sys'),
nodeStatic = require('node-static/lib/node-static');

var server = http.createServer(function(request, response) {
var file = new nodeStatic.Server('./public', function() {
    cache: false
    });
request.addListener('end', function() {
    file.server(request, response);
    });
}).listen(8000);

And the script above works for him. When i write the sample script and run, i get this error.

C:\Documents and Settings\local>node C:\xampp\htdocs\rt\node\livestats\
server.js

Error: require.paths is removed. Use node_modules folders, or the NODE_PATH envi
ronment variable instead.
at Function.Module._compile.Object.defineProperty.get (module.js:386:11)
at Object.<anonymous> (C:\xampp\htdocs\rt\node\livestats\server.js:2:8)
at Module._compile (module.js:449:26)
at Object.Module._extensions..js (module.js:467:10)
at Module.load (module.js:356:32)
at Function.Module._load (module.js:312:12)
at Module.runMain (module.js:492:10)
at process.startup.processNextTick.process._tickCallback (node.js:244:9)

How do i make node to load files from custome directory and How to i solve this issue? My OS is windows

Thank you......