You really need to read the following BashFAQ article:
The truth is, the $0 hacks are NOT reliable, and they will fail whenever applications are started with a zeroth argument that is not the application's path. For example, login(1) will put a - in front of your application name in $0, causing breakage, and whenever you invoke an application that's in PATH $0 won't contain the path to your application but just the filename, which means you can't extract any location information out of it. There are a LOT more ways in which this can fail.
Bottom line: Don't rely on the hack, the truth is you cannot figure out where your script is, so use a configuration option to set the directory of your config files or whatever you need the script's path for.