diff --git a/src/calibre/gui2/wizard/__init__.py b/src/calibre/gui2/wizard/__init__.py
index 72fef86eb0..4865d882b7 100644
--- a/src/calibre/gui2/wizard/__init__.py
+++ b/src/calibre/gui2/wizard/__init__.py
@@ -16,7 +16,7 @@ from PyQt4.Qt import (QWizard, QWizardPage, QPixmap, Qt, QAbstractListModel,
 from calibre import __appname__, patheq
 from calibre.library.database2 import LibraryDatabase2
 from calibre.library.move import MoveLibrary
-from calibre.constants import filesystem_encoding, iswindows
+from calibre.constants import filesystem_encoding, iswindows, plugins
 from calibre.gui2.wizard.send_email import smtp_prefs
 from calibre.gui2.wizard.device_ui import Ui_WizardPage as DeviceUI
 from calibre.gui2.wizard.library_ui import Ui_WizardPage as LibraryUI
@@ -30,6 +30,9 @@ from calibre.gui2 import NONE, choose_dir, error_dialog
 from calibre.gui2.dialogs.progress import ProgressDialog
 from calibre.customize.ui import device_plugins
 
+if iswindows:
+    winutil = plugins['winutil'][0]
+
 # Devices {{{
 
 class Device(object):
@@ -751,19 +754,20 @@ class LibraryPage(QWizardPage, LibraryUI):
         self.default_library_name = None
         if not lp:
             fname = _('Calibre Library')
-            if isinstance(fname, unicode):
-                try:
-                    fname = fname.encode(filesystem_encoding)
-                except:
-                    fname = 'Calibre Library'
-            lp = os.path.expanduser('~'+os.sep+fname)
+            base = os.path.expanduser(u'~')
+            if iswindows:
+                x = winutil.special_folder_path(winutil.CSIDL_PERSONAL)
+                if x and os.access(x, os.W_OK):
+                    base = x
+
+            lp = os.path.join(base, fname)
             self.default_library_name = lp
             if not os.path.exists(lp):
                 try:
                     os.makedirs(lp)
                 except:
                     traceback.print_exc()
-                    lp = os.path.expanduser('~')
+                    lp = os.path.expanduser(u'~')
         self.location.setText(lp)
 
     def isComplete(self):
@@ -779,12 +783,10 @@ class LibraryPage(QWizardPage, LibraryUI):
         oldloc = prefs['library_path']
         newloc = unicode(self.location.text())
         try:
-            newloce = newloc.encode(filesystem_encoding)
-            if self.default_library_name is not None and \
-                os.path.exists(self.default_library_name) and \
-                not os.listdir(self.default_library_name) and \
-                newloce != self.default_library_name:
-                    os.rmdir(self.default_library_name)
+            dln = self.default_library_name
+            if (dln and os.path.exists(dln) and not os.listdir(dln) and newloc
+                    != dln):
+                os.rmdir(dln)
         except:
             pass
         if not os.path.exists(newloc):