diff -Naur file-roller-2.16.3-orig/src/window.c file-roller-2.16.3/src/window.c
--- file-roller-2.16.3-orig/src/window.c	2007-01-29 23:04:00 +0200
+++ file-roller-2.16.3/src/window.c	2007-02-16 15:16:15 +0200
@@ -1139,6 +1139,21 @@
 _window_update_current_location (FRWindow *window)
 {
 	const char *current_dir = window_get_current_location (window);
+	/* non-8bit path handling roughly borrowed from Dia;
+	 * thanks an example/docs by Vitaly Lipatov (etersoft.ru)
+	 */
+	char buffer[300];
+	char *utf8current_dir = NULL;
+
+	if (!g_utf8_validate(current_dir, -1, NULL)) {
+		utf8current_dir = g_filename_to_utf8(current_dir, -1, NULL, NULL, NULL);
+		if (utf8current_dir == NULL) {
+			g_warning(_("Some characters in the current path are neither UTF-8 nor your local encoding"));
+		}
+	}
+	if (utf8current_dir == NULL)
+		utf8current_dir = g_strdup(current_dir);
+	g_snprintf(buffer, 300, "%s", utf8current_dir);
 
 	if (window->list_mode == WINDOW_LIST_MODE_FLAT) {
 		gtk_widget_hide (window->location_bar);
@@ -1147,14 +1162,16 @@
 
 	gtk_widget_show (window->location_bar);
 
-	gtk_entry_set_text (GTK_ENTRY (window->location_entry), window->archive_present? current_dir: "");
+	gtk_entry_set_text (GTK_ENTRY (window->location_entry), window->archive_present? utf8current_dir: "");
 	gtk_widget_set_sensitive (window->home_button, window->archive_present);
-	gtk_widget_set_sensitive (window->up_button, window->archive_present && (current_dir != NULL) && (strcmp (current_dir, "/") != 0));
-	gtk_widget_set_sensitive (window->back_button, window->archive_present && (current_dir != NULL) && (window->history_current != NULL) && (window->history_current->next != NULL));
-	gtk_widget_set_sensitive (window->fwd_button, window->archive_present && (current_dir != NULL) && (window->history_current != NULL) && (window->history_current->prev != NULL));
+	gtk_widget_set_sensitive (window->up_button, window->archive_present && (utf8current_dir != NULL) && (strcmp (utf8current_dir, "/") != 0));
+	gtk_widget_set_sensitive (window->back_button, window->archive_present && (utf8current_dir != NULL) && (window->history_current != NULL) && (window->history_current->next != NULL));
+	gtk_widget_set_sensitive (window->fwd_button, window->archive_present && (utf8current_dir != NULL) && (window->history_current != NULL) && (window->history_current->prev != NULL));
 	gtk_widget_set_sensitive (window->location_entry, window->archive_present);
 	gtk_widget_set_sensitive (window->location_label, window->archive_present);
 
+	g_free(utf8current_dir);
+
 #if 0
 	_window_history_print (window);
 #endif