diff --git a/src/win32/Directories.cpp b/src/win32/Directories.cpp
index 3563ea64..eb7bc72f 100644
--- a/src/win32/Directories.cpp
+++ b/src/win32/Directories.cpp
@@ -149,37 +149,86 @@ void Directories::OnOK()
 {
 	CDialog::OnOK();
 
+	char baseDir[MAX_PATH+1];
+	char temp[MAX_PATH+1];
+	GetModuleFileName( NULL, baseDir, MAX_PATH );
+	baseDir[MAX_PATH] = '\0'; // for security reasons
+	PathRemoveFileSpec( baseDir ); // removes the trailing file name and backslash
+
+
 	CString buffer;
 
 	m_romPath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "romdir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	m_gbcromPath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "gbcromdir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	m_gbromPath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "gbromdir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	m_batteryPath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "batteryDir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	m_savePath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "saveDir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	m_capturePath.GetWindowText(buffer);
 	if( !buffer.IsEmpty() )
 		regSetStringValue( "captureDir", buffer );
-	treatRelativePath( buffer );
+	if( buffer[0] == '.' ) {
+		strcpy( temp, baseDir );
+		strcat( temp, "\\" );
+		strcat( temp, buffer );
+		buffer = temp;
+	}
+	if( !directoryDoesExist( buffer ) )
+		SHCreateDirectoryEx( NULL, buffer, NULL );
 
 	EndDialog(TRUE);
 }
@@ -214,3 +263,20 @@ CString Directories::browseForDir(CString title)
   }
   return res;
 }
+
+// returns true if the directory does exist
+bool Directories::directoryDoesExist(const char *directory)
+{
+	HANDLE hDir;
+	hDir = CreateFile(
+		directory,
+		GENERIC_READ,
+		FILE_SHARE_READ | FILE_SHARE_WRITE | FILE_SHARE_DELETE,
+		NULL,
+		OPEN_EXISTING,
+		FILE_FLAG_BACKUP_SEMANTICS,
+		NULL );
+	bool retval = (hDir == INVALID_HANDLE_VALUE) ? false : true;
+	CloseHandle( hDir );
+	return retval;
+}
diff --git a/src/win32/Directories.h b/src/win32/Directories.h
index 879a44c6..5cb8bc82 100644
--- a/src/win32/Directories.h
+++ b/src/win32/Directories.h
@@ -30,4 +30,5 @@ private:
 	CString initialFolderDir;
 
 	CString browseForDir(CString title);
+	bool directoryDoesExist(const char *directory);
 };
diff --git a/src/win32/MainWnd.cpp b/src/win32/MainWnd.cpp
index 2b942273..19b6cc29 100644
--- a/src/win32/MainWnd.cpp
+++ b/src/win32/MainWnd.cpp
@@ -33,6 +33,7 @@ static char THIS_FILE[] = __FILE__;
 #endif
 
 extern void remoteCleanUp();
+extern int gbHardware;
 
 /////////////////////////////////////////////////////////////////////////////
 // MainWnd
@@ -47,12 +48,6 @@ MainWnd::~MainWnd()
 {
 }
 
-bool MainWnd::fileExists( LPCTSTR lpFileName )
-{
-	// check if file exists
-	return GetFileAttributes( lpFileName ) != INVALID_FILE_ATTRIBUTES;
-}
-
 
 BEGIN_MESSAGE_MAP(MainWnd, CWnd)
   //{{AFX_MSG_MAP(MainWnd)
@@ -1022,7 +1017,16 @@ bool MainWnd::fileOpenSelect( int system )
 		theApp.dir = initialDir;
 	}
 
-	treatRelativePath( initialDir );
+	if( initialDir[0] == '.' ) {
+		// handle as relative path
+		char baseDir[MAX_PATH+1];
+		GetModuleFileName( NULL, baseDir, MAX_PATH );
+		baseDir[MAX_PATH] = '\0'; // for security reasons
+		PathRemoveFileSpec( baseDir ); // removes the trailing file name and backslash
+		strcat( baseDir, "\\" );
+		strcat( baseDir, initialDir );
+		initialDir = baseDir;
+	}
 
 	theApp.szFile = _T("");
 
@@ -1105,7 +1109,9 @@ void MainWnd::screenCapture(int captureNumber)
                   captureNumber,
                   ext);
 
-  if( fileExists( buffer ) ) {
+  // check if file exists
+  DWORD dwAttr = GetFileAttributes( buffer );
+  if( dwAttr != INVALID_FILE_ATTRIBUTES ) {
 	  // screenshot file already exists
 	  screenCapture(++captureNumber);
 	  // this will recursively use the first non-existent screenshot number
diff --git a/src/win32/MainWnd.h b/src/win32/MainWnd.h
index b1fa8d8d..48b39998 100644
--- a/src/win32/MainWnd.h
+++ b/src/win32/MainWnd.h
@@ -30,9 +30,6 @@ public:
 	void winSaveCheatList(const char *name);
 	void winSaveCheatListDefault();
 
-private:
-	bool fileExists( LPCTSTR lpFileName );
-
 
 	DECLARE_MESSAGE_MAP()
 
diff --git a/src/win32/VBA.cpp b/src/win32/VBA.cpp
index 6973e3d2..8716fe2e 100644
--- a/src/win32/VBA.cpp
+++ b/src/win32/VBA.cpp
@@ -2658,34 +2658,3 @@ void Sm60FPS_Sleep()
 		}
 	}
 }
-
-
-void treatRelativePath( CString & path )
-{
-	if( path.GetLength() > 1 ) {
-		if( path.GetAt( 0 ) == '.' ) {
-			// treat as relative path
-			char baseDir[MAX_PATH + 1];
-			GetModuleFileName( NULL, baseDir, MAX_PATH );
-			baseDir[MAX_PATH] = '\0'; // for security reasons
-			CString temp = baseDir;
-			int pos = temp.ReverseFind( '\\' );
-			temp.Truncate( pos + 1 );
-			path.Insert( 0, temp );
-
-			// create directories if path does not exist
-			SHCreateDirectoryEx( NULL, path, NULL );
-			/* Spacy's implementation:
-			while( ERROR_PATH_NOT_FOUND == CreateDirectory( path, NULL ) ) {
-				temp = path;
-				while( ERROR_PATH_NOT_FOUND == CreateDirectory( temp, NULL ) ) {
-					pos = temp.ReverseFind( '\\' );
-					ASSERT( pos != -1 );
-					if( pos == -1 ) break; // something has gone wrong, abort
-					temp.Truncate( pos );
-				}
-			}
-			*/
-		}
-	}
-}
diff --git a/src/win32/VBA.h b/src/win32/VBA.h
index d6e5fe4e..3832f334 100644
--- a/src/win32/VBA.h
+++ b/src/win32/VBA.h
@@ -262,5 +262,3 @@ class VBA : public CWinApp
 #ifdef MMX
     extern "C" bool cpu_mmx;
 #endif
-
-void treatRelativePath( CString & path );
diff --git a/src/win32/resource.h b/src/win32/resource.h
index 9b5a40ea..e295744a 100644
--- a/src/win32/resource.h
+++ b/src/win32/resource.h
@@ -50,7 +50,7 @@
 #define IDS_TOOLTIP_ENHANCE_SOUND       43
 #define IDS_TOOLTIP_SURROUND            44
 #define IDS_TOOLTIP_DECLICKING          45
-#define IDS_FILTER_ALLROM               46
+#define IDS_FILTER_COMPRESSED_FILES     46
 #define IDI_MAINICON                    101
 #define IDD_REGISTERS                   102
 #define IDD_DEBUG                       103