diff --git a/src/gnome-utils/dialog-file-access.c b/src/gnome-utils/dialog-file-access.c
index 1853856bbe..adf9a6d000 100644
--- a/src/gnome-utils/dialog-file-access.c
+++ b/src/gnome-utils/dialog-file-access.c
@@ -131,6 +131,13 @@ gnc_ui_file_access_response_cb(GtkDialog *dialog, gint response, GtkDialog *unus
         {
             return;
         }
+
+	if ( g_file_test( g_filename_from_uri( url, NULL, NULL ),
+			  G_FILE_TEST_IS_DIR ))
+	{
+	    gtk_file_chooser_set_current_folder_uri( faw->fileChooser, url );
+	    return;
+	}
         if ( faw->type == FILE_ACCESS_OPEN )
         {
             gnc_file_open_file( url );
diff --git a/src/gnome-utils/gnc-file.c b/src/gnome-utils/gnc-file.c
index 515e0b210d..ac7845a0cf 100644
--- a/src/gnome-utils/gnc-file.c
+++ b/src/gnome-utils/gnc-file.c
@@ -631,7 +631,7 @@ gnc_post_file_open (const char * filename)
 
 
     ENTER(" ");
-
+RESTART:
     if (!filename) return FALSE;
 
     /* Convert user input into a normalized uri
@@ -697,8 +697,26 @@ gnc_post_file_open (const char * filename)
 
     qof_session_begin (new_session, newfile, FALSE, FALSE, FALSE);
     io_err = qof_session_get_error (new_session);
+
+    if (ERR_BACKEND_BAD_URL == io_err)
+    {
+	gchar *directory;
+	show_session_error (io_err, newfile, GNC_FILE_DIALOG_OPEN);
+	io_err = ERR_BACKEND_NO_ERR;
+	if (g_file_test (filename, G_FILE_TEST_IS_DIR))
+	    directory = g_strdup (filename);
+	else
+	    directory = gnc_get_default_directory (GCONF_DIR_OPEN_SAVE);
+
+	filename = gnc_file_dialog (NULL, NULL, directory,
+				    GNC_FILE_DIALOG_OPEN);
+	qof_session_destroy (new_session);
+	new_session = NULL;
+	g_free (directory);
+	goto RESTART;
+    }
     /* if file appears to be locked, ask the user ... */
-    if (ERR_BACKEND_LOCKED == io_err || ERR_BACKEND_READONLY == io_err)
+    else if (ERR_BACKEND_LOCKED == io_err || ERR_BACKEND_READONLY == io_err)
     {
         GtkWidget *dialog;
         gchar *displayname = NULL;
diff --git a/src/libqof/qof/qofsession.c b/src/libqof/qof/qofsession.c
index 875870fc99..2498541abd 100644
--- a/src/libqof/qof/qofsession.c
+++ b/src/libqof/qof/qofsession.c
@@ -421,7 +421,7 @@ void
 qof_session_begin (QofSession *session, const char * book_id,
                    gboolean ignore_lock, gboolean create, gboolean force)
 {
-    gchar **splituri;
+    gchar *scheme = NULL, *filename = NULL;
 
     if (!session) return;
 
@@ -449,6 +449,22 @@ qof_session_begin (QofSession *session, const char * book_id,
         LEAVE("push error missing book_id");
         return;
     }
+    scheme = g_uri_parse_scheme (book_id);
+    if (g_strcmp0 (scheme, "file") == 0)
+	filename = g_filename_from_uri (book_id, NULL, NULL);
+    else if (!scheme)
+	filename = g_strdup (book_id);
+
+    if (filename && g_file_test (filename, G_FILE_TEST_IS_DIR))
+    {
+        if (ERR_BACKEND_NO_ERR == qof_session_get_error(session))
+            qof_session_push_error (session, ERR_BACKEND_BAD_URL, NULL);
+	g_free (filename);
+	g_free (scheme);
+        LEAVE("Can't open a directory");
+        return;
+    }
+
 
     /* destroy the old backend */
     qof_session_destroy_backend(session);
@@ -456,16 +472,12 @@ qof_session_begin (QofSession *session, const char * book_id,
     /* Store the session URL  */
     session->book_id = g_strdup (book_id);
 
-    /* Look for something of the form of "file://", "http://" or
-     * "postgres://". Everything before the colon is the access
-     * method.  Load the first backend found for that access method.
-     */
-    splituri = g_strsplit ( book_id, "://", 2 );
-    if ( splituri[1] == NULL ) /* no access method in the uri, use generic "file" backend */
+    if (filename)
         qof_session_load_backend(session, "file");
     else                       /* access method found, load appropriate backend */
-        qof_session_load_backend(session, splituri[0]);
-    g_strfreev ( splituri );
+        qof_session_load_backend(session, scheme);
+    g_free (filename);
+    g_free (scheme);
 
     /* No backend was found. That's bad. */
     if (NULL == session->backend)