diff --git a/src/calibre/__init__.py b/src/calibre/__init__.py
index e1196ea176..e8d4b61ce1 100644
--- a/src/calibre/__init__.py
+++ b/src/calibre/__init__.py
@@ -44,7 +44,7 @@ def osx_version():
 
 _filename_sanitize = re.compile(r'[\xae\0\\|\?\*<":>\+\[\]/]')
 
-def sanitize_file_name(name, substitute='_'):
+def sanitize_file_name(name, substitute='_', as_unicode=False):
     '''
     Sanitize the filename `name`. All invalid characters are replaced by `substitute`.
     The set of invalid characters is the union of the invalid characters in Windows,
@@ -58,7 +58,10 @@ def sanitize_file_name(name, substitute='_'):
         name = name.encode(filesystem_encoding, 'ignore')
     one = _filename_sanitize.sub(substitute, name)
     one = re.sub(r'\s', ' ', one).strip()
-    return re.sub(r'^\.+$', '_', one)
+    one = re.sub(r'^\.+$', '_', one)
+    if as_unicode:
+        one = one.decode(filesystem_encoding)
+    return one
 
 
 class CommandLineError(Exception):
diff --git a/src/calibre/ebooks/lrf/lrfparser.py b/src/calibre/ebooks/lrf/lrfparser.py
index f24b265a59..a80e06d8e3 100644
--- a/src/calibre/ebooks/lrf/lrfparser.py
+++ b/src/calibre/ebooks/lrf/lrfparser.py
@@ -89,7 +89,7 @@ class LRFDocument(LRFMetaFile):
         bookinfo += u'<FreeText reading="">%s</FreeText>\n</BookInfo>\n<DocInfo>\n'%(self.metadata.free_text,)
         th = self.doc_info.thumbnail
         if th:
-            prefix = sanitize_file_name(self.metadata.title)
+            prefix = sanitize_file_name(self.metadata.title, as_unicode=True)
             bookinfo += u'<CThumbnail file="%s" />\n'%(prefix+'_thumbnail.'+self.doc_info.thumbnail_extension,)
             open(prefix+'_thumbnail.'+self.doc_info.thumbnail_extension, 'wb').write(th)
         bookinfo += u'<Language reading="">%s</Language>\n'%(self.doc_info.language,)
diff --git a/src/calibre/ebooks/metadata/html.py b/src/calibre/ebooks/metadata/html.py
index 8d61a746fa..c8f6c3ea16 100644
--- a/src/calibre/ebooks/metadata/html.py
+++ b/src/calibre/ebooks/metadata/html.py
@@ -10,9 +10,10 @@ Try to read metadata from an HTML file.
 import re
 
 from calibre.ebooks.metadata import MetaInformation
+from calibre.ebooks.chardet import xml_to_unicode
 
 def get_metadata(stream):
-    src = stream.read()
+    src = xml_to_unicode(stream.read())
     
     # Title
     title = None
diff --git a/src/calibre/library/database2.py b/src/calibre/library/database2.py
index b399cf46e9..0c77705a48 100644
--- a/src/calibre/library/database2.py
+++ b/src/calibre/library/database2.py
@@ -1100,8 +1100,13 @@ class LibraryDatabase2(LibraryDatabase):
                 continue
             series_index = 1 if mi.series_index is None else mi.series_index
             aus = mi.author_sort if mi.author_sort else ', '.join(mi.authors)
+            title = mi.title
+            if isinstance(aus, str):
+                aus = aus.decode(preferred_encoding, 'replace')
+            if isinstance(title, str):
+                title = title.decode(preferred_encoding)
             obj = self.conn.execute('INSERT INTO books(title, uri, series_index, author_sort) VALUES (?, ?, ?, ?)', 
-                              (mi.title, uri, series_index, aus))
+                              (title, uri, series_index, aus))
             id = obj.lastrowid
             self.data.books_added([id], self.conn)
             ids.append(id)