diff --git a/programs/explorer/Makefile.in b/programs/explorer/Makefile.in
index 4854eda164..97b2c74318 100644
--- a/programs/explorer/Makefile.in
+++ b/programs/explorer/Makefile.in
@@ -3,7 +3,7 @@ TOPOBJDIR = ../..
 SRCDIR    = @srcdir@
 VPATH     = @srcdir@
 MODULE    = explorer.exe
-APPMODE   = -mwindows
+APPMODE   = -mwindows -municode
 IMPORTS   = rpcrt4 user32 gdi32 advapi32 kernel32 ntdll
 DELAYIMPORTS = comctl32
 
diff --git a/programs/explorer/desktop.c b/programs/explorer/desktop.c
index 40b2f8ef87..e19b4c4962 100644
--- a/programs/explorer/desktop.c
+++ b/programs/explorer/desktop.c
@@ -74,21 +74,22 @@ static LRESULT WINAPI desktop_wnd_proc( HWND hwnd, UINT message, WPARAM wp, LPAR
 }
 
 /* create the desktop and the associated X11 window, and make it the current desktop */
-static unsigned long create_desktop( const char *name, unsigned int width, unsigned int height )
+static unsigned long create_desktop( const WCHAR *name, unsigned int width, unsigned int height )
 {
+    static const WCHAR rootW[] = {'r','o','o','t',0};
     HMODULE x11drv = GetModuleHandleA( "winex11.drv" );
     HDESK desktop;
     unsigned long xwin = 0;
     unsigned long (*create_desktop_func)(unsigned int, unsigned int);
 
-    desktop = CreateDesktopA( name, NULL, NULL, 0, DESKTOP_ALL_ACCESS, NULL );
+    desktop = CreateDesktopW( name, NULL, NULL, 0, DESKTOP_ALL_ACCESS, NULL );
     if (!desktop)
     {
-        WINE_ERR( "failed to create desktop %s error %d\n", wine_dbgstr_a(name), GetLastError() );
+        WINE_ERR( "failed to create desktop %s error %d\n", wine_dbgstr_w(name), GetLastError() );
         ExitProcess( 1 );
     }
     /* magic: desktop "root" means use the X11 root window */
-    if (x11drv && strcasecmp( name, "root" ))
+    if (x11drv && strcmpiW( name, rootW ))
     {
         create_desktop_func = (void *)GetProcAddress( x11drv, "wine_create_desktop" );
         if (create_desktop_func) xwin = create_desktop_func( width, height );
@@ -97,19 +98,35 @@ static unsigned long create_desktop( const char *name, unsigned int width, unsig
     return xwin;
 }
 
+/* parse the desktop size specification */
+static BOOL parse_size( const WCHAR *size, unsigned int *width, unsigned int *height )
+{
+    WCHAR *end;
+
+    *width = strtoulW( size, &end, 10 );
+    if (end == size) return FALSE;
+    if (*end != 'x') return FALSE;
+    size = end + 1;
+    *height = strtoulW( size, &end, 10 );
+    return !*end;
+}
+
 /* retrieve the default desktop size from the X11 driver config */
 /* FIXME: this is for backwards compatibility, should probably be changed */
 static BOOL get_default_desktop_size( unsigned int *width, unsigned int *height )
 {
+    static const WCHAR keyW[] = {'S','o','f','t','w','a','r','e','\\','W','i','n','e','\\',
+                                 'X','1','1',' ','D','r','i','v','e','r',0};
+    static const WCHAR desktopW[] = {'D','e','s','k','t','o','p',0};
     HKEY hkey;
-    char buffer[64];
+    WCHAR buffer[64];
     DWORD size = sizeof(buffer);
     BOOL ret = FALSE;
 
     /* @@ Wine registry key: HKCU\Software\Wine\X11 Driver */
-    if (RegOpenKeyA( HKEY_CURRENT_USER, "Software\\Wine\\X11 Driver", &hkey )) return FALSE;
-    if (!RegQueryValueExA( hkey, "Desktop", 0, NULL, (LPBYTE)buffer, &size ))
-        ret = (sscanf( buffer, "%ux%u", width, height ) == 2);
+    if (RegOpenKeyW( HKEY_CURRENT_USER, keyW, &hkey )) return FALSE;
+    if (!RegQueryValueExW( hkey, desktopW, 0, NULL, (LPBYTE)buffer, &size ))
+        ret = parse_size( buffer, width, height );
     RegCloseKey( hkey );
     return ret;
 }
@@ -144,13 +161,12 @@ static void initialize_display_settings( HWND desktop )
     }
 }
 
-static void set_desktop_window_title( HWND hwnd, const char *name )
+static void set_desktop_window_title( HWND hwnd, const WCHAR *name )
 {
     static const WCHAR desktop_nameW[] = {'W','i','n','e',' ','d','e','s','k','t','o','p',0};
     static const WCHAR desktop_name_separatorW[] = {' ', '-', ' ', 0};
     WCHAR *window_titleW = NULL;
     int window_title_len;
-    int name_len;
 
     if (!name[0])
     {
@@ -158,8 +174,7 @@ static void set_desktop_window_title( HWND hwnd, const char *name )
         return;
     }
 
-    name_len = MultiByteToWideChar( CP_ACP, 0, name, -1, NULL, 0 );
-    window_title_len = name_len * sizeof(WCHAR)
+    window_title_len = strlenW(name) * sizeof(WCHAR)
                      + sizeof(desktop_name_separatorW)
                      + sizeof(desktop_nameW);
     window_titleW = HeapAlloc( GetProcessHeap(), 0, window_title_len );
@@ -169,8 +184,7 @@ static void set_desktop_window_title( HWND hwnd, const char *name )
         return;
     }
 
-    MultiByteToWideChar( CP_ACP, 0, name, -1,
-                         window_titleW, name_len );
+    strcpyW( window_titleW, name );
     strcatW( window_titleW, desktop_name_separatorW );
     strcatW( window_titleW, desktop_nameW );
 
@@ -179,15 +193,16 @@ static void set_desktop_window_title( HWND hwnd, const char *name )
 }
 
 /* main desktop management function */
-void manage_desktop( char *arg )
+void manage_desktop( WCHAR *arg )
 {
+    static const WCHAR defaultW[] = {'D','e','f','a','u','l','t',0};
     MSG msg;
     HWND hwnd;
     unsigned long xwin = 0;
     unsigned int width, height;
-    char *cmdline = NULL;
-    char *p = arg;
-    const char *name = NULL;
+    WCHAR *cmdline = NULL;
+    WCHAR *p = arg;
+    const WCHAR *name = NULL;
 
     /* get the rest of the command line (if any) */
     while (*p && !isspace(*p)) p++;
@@ -203,8 +218,8 @@ void manage_desktop( char *arg )
     if (*arg == '=' || *arg == ',')
     {
         arg++;
-        if ((p = strchr( arg, ',' ))) *p++ = 0;
-        if (!p || sscanf( p, "%ux%u", &width, &height ) != 2)
+        if ((p = strchrW( arg, ',' ))) *p++ = 0;
+        if (!p || !parse_size( p, &width, &height ))
         {
             width = 800;
             height = 600;
@@ -214,7 +229,7 @@ void manage_desktop( char *arg )
     }
     else if (get_default_desktop_size( &width, &height ))
     {
-        name = "Default";
+        name = defaultW;
         xwin = create_desktop( name, width, height );
     }
 
@@ -245,13 +260,13 @@ void manage_desktop( char *arg )
     /* if we have a command line, execute it */
     if (cmdline)
     {
-        STARTUPINFOA si;
+        STARTUPINFOW si;
         PROCESS_INFORMATION pi;
 
         memset( &si, 0, sizeof(si) );
         si.cb = sizeof(si);
-        WINE_TRACE( "starting %s\n", wine_dbgstr_a(cmdline) );
-        if (CreateProcessA( NULL, cmdline, NULL, NULL, FALSE, 0, NULL, NULL, &si, &pi ))
+        WINE_TRACE( "starting %s\n", wine_dbgstr_w(cmdline) );
+        if (CreateProcessW( NULL, cmdline, NULL, NULL, FALSE, 0, NULL, NULL, &si, &pi ))
         {
             CloseHandle( pi.hThread );
             CloseHandle( pi.hProcess );
diff --git a/programs/explorer/explorer.c b/programs/explorer/explorer.c
index f261e117e7..9a21ac6c2e 100644
--- a/programs/explorer/explorer.c
+++ b/programs/explorer/explorer.c
@@ -20,8 +20,8 @@
  */
 
 #include <windows.h>
-#include <ctype.h>
 
+#include "wine/unicode.h"
 #include "explorer_private.h"
 
 typedef struct parametersTAG {
@@ -31,37 +31,25 @@ typedef struct parametersTAG {
 } parameters_struct;
 
 
-static int CopyPathString(LPWSTR target, LPSTR source)
+static int CopyPathString(LPWSTR target, LPWSTR source)
 {
-    CHAR temp_buf[MAX_PATH];
     INT i = 0;
 
-    while (isspace(*source)) source++;
+    while (isspaceW(*source)) source++;
 
     if (*source == '\"')
     {
         source ++;
-        while (*source != '\"')
-        {
-            temp_buf[i] = *source;
-            i++;
-            source++;
-        }
-        temp_buf[i] = 0;
+        while (*source != '\"') target[i++] = *source++;
+        target[i] = 0;
         source ++;
         i+=2;
     }
     else
     {
-        while (*source && !isspace(*source))
-        {
-            temp_buf[i] = *source;
-            i++;
-            source++;
-        }
-        temp_buf[i] = 0;
+        while (*source && !isspaceW(*source)) target[i++] = *source++;
+        target[i] = 0;
     }
-    MultiByteToWideChar(CP_ACP,0,temp_buf,-1,target,MAX_PATH);
     return i;
 }
 
@@ -98,45 +86,52 @@ static void CopyPathRoot(LPWSTR root, LPWSTR path)
  * [/root,object] Specifies the root level of the view
  * [/select,object] parent folder is opened and specified object is selected
  */
-static void ParseCommandLine(LPSTR commandline,parameters_struct *parameters)
+static void ParseCommandLine(LPWSTR commandline,parameters_struct *parameters)
 {
-    LPSTR p;
-    LPSTR p2;
-   
+    static const WCHAR arg_n[] = {'/','n'};
+    static const WCHAR arg_e[] = {'/','e',','};
+    static const WCHAR arg_root[] = {'/','r','o','o','t',','};
+    static const WCHAR arg_select[] = {'/','s','e','l','e','c','t',','};
+    static const WCHAR arg_desktop[] = {'/','d','e','s','k','t','o','p'};
+
+    LPWSTR p, p2;
+
     p2 = commandline;
-    p = strchr(commandline,'/');
+    p = strchrW(commandline,'/');
     while(p)
     {
-        p++;
-        if (strncmp(p,"n",1)==0)
+        if (strncmpW(p, arg_n, sizeof(arg_n)/sizeof(WCHAR))==0)
         {
             parameters->explorer_mode = FALSE;
-            p++;
+            p += sizeof(arg_n)/sizeof(WCHAR);
         }
-        else if (strncmp(p,"e,",2)==0)
+        else if (strncmpW(p, arg_e, sizeof(arg_e)/sizeof(WCHAR))==0)
         {
             parameters->explorer_mode = TRUE;
-            p+=2;
+            p += sizeof(arg_e)/sizeof(WCHAR);
         }
-        else if (strncmp(p,"root,",5)==0)
+        else if (strncmpW(p, arg_root, sizeof(arg_root)/sizeof(WCHAR))==0)
         {
-            p+=5;
+            p += sizeof(arg_root)/sizeof(WCHAR);
             p+=CopyPathString(parameters->root,p);
         }
-        else if (strncmp(p,"select,",7)==0)
+        else if (strncmpW(p, arg_select, sizeof(arg_select)/sizeof(WCHAR))==0)
         {
-            p+=7;
+            p += sizeof(arg_select)/sizeof(WCHAR);
             p+=CopyPathString(parameters->selection,p);
             if (!parameters->root[0])
                 CopyPathRoot(parameters->root,
                         parameters->selection);
         }
-        else if (strncmp(p,"desktop",7)==0)
+        else if (strncmpW(p, arg_desktop, sizeof(arg_desktop)/sizeof(WCHAR))==0)
         {
-            manage_desktop( p + 7 );  /* the rest of the command line is handled by desktop mode */
+            p += sizeof(arg_desktop)/sizeof(WCHAR);
+            manage_desktop( p );  /* the rest of the command line is handled by desktop mode */
         }
+        else p++;
+
         p2 = p;
-        p = strchr(p,'/');
+        p = strchrW(p,'/');
     }
     if (p2 && *p2)
     {
@@ -145,10 +140,10 @@ static void ParseCommandLine(LPSTR commandline,parameters_struct *parameters)
     }
 }
 
-int WINAPI WinMain(HINSTANCE hinstance,
-                   HINSTANCE previnstance,
-                   LPSTR cmdline,
-                   int cmdshow)
+int WINAPI wWinMain(HINSTANCE hinstance,
+                    HINSTANCE previnstance,
+                    LPWSTR cmdline,
+                    int cmdshow)
 {
     STARTUPINFOW si;
     PROCESS_INFORMATION info;
diff --git a/programs/explorer/explorer_private.h b/programs/explorer/explorer_private.h
index 59667eb2c8..ebff4de3f7 100644
--- a/programs/explorer/explorer_private.h
+++ b/programs/explorer/explorer_private.h
@@ -21,13 +21,7 @@
 #ifndef __WINE_EXPLORER_PRIVATE_H
 #define __WINE_EXPLORER_PRIVATE_H
 
-extern BOOL add_dos_device( const char *udi, const char *device,
-                            const char *mount_point, const char *type );
-extern BOOL remove_dos_device( const char *udi );
-
-extern void manage_desktop( char *arg );
-extern void initialize_diskarbitration(void);
-extern void initialize_hal(void);
+extern void manage_desktop( WCHAR *arg );
 extern void initialize_systray(void);
 
 #endif  /* __WINE_EXPLORER_PRIVATE_H */