DIR in the autoload file will refer to /app.
try:
function autoloader($className) {
// List Directories to Autoload Classes
$paths = array(
'../system/',
'/models/',
'/dao/'
);
foreach($paths as $path) {
$file = $path . '/' . $className . '.php';
if (is_file($file))
require_once $file;
}
}
If that fails start echoing out paths and dir to see if they are referenced properly.