diff --git a/mailnews/import/eudora/src/nsEudoraImport.cpp b/mailnews/import/eudora/src/nsEudoraImport.cpp
index a4dee5388989..bf27106ae978 100644
--- a/mailnews/import/eudora/src/nsEudoraImport.cpp
+++ b/mailnews/import/eudora/src/nsEudoraImport.cpp
@@ -73,7 +73,7 @@
 #include "nsIStringBundle.h"
 #include "nsEudoraSettings.h"
 #include "nsReadableUtils.h"
-
+#include "nsUnicharUtils.h"
 
 #if defined(XP_WIN) || defined(XP_OS2)
 #include "nsEudoraWin32.h"
@@ -561,6 +561,11 @@ NS_IMETHODIMP ImportEudoraMailImpl::GetImportProgress( PRUint32 *pDoneSoFar)
 
 NS_IMETHODIMP ImportEudoraMailImpl::TranslateFolderName(const nsAString & aFolderName, nsAString & _retval)
 {
+    if (aFolderName.Equals(NS_LITERAL_STRING("Out"), nsCaseInsensitiveStringComparator()))
+        _retval = NS_LITERAL_STRING(kDestUnsentMessagesFolderName);
+    else if (aFolderName.Equals(NS_LITERAL_STRING("In"), nsCaseInsensitiveStringComparator()))
+        _retval = NS_LITERAL_STRING(kDestInboxFolderName);
+    else
     _retval = aFolderName; 
     return NS_OK;
 }
diff --git a/mailnews/import/eudora/src/nsEudoraSettings.cpp b/mailnews/import/eudora/src/nsEudoraSettings.cpp
index 143f204e437f..fa92dbd27c66 100644
--- a/mailnews/import/eudora/src/nsEudoraSettings.cpp
+++ b/mailnews/import/eudora/src/nsEudoraSettings.cpp
@@ -73,12 +73,10 @@ nsresult nsEudoraSettings::Create(nsIImportSettings** aImport)
 
 nsEudoraSettings::nsEudoraSettings()
 {
-	m_pLocation = nsnull;
 }
 
 nsEudoraSettings::~nsEudoraSettings()
 {
-	NS_IF_RELEASE( m_pLocation);
 }
 
 NS_IMPL_ISUPPORTS1(nsEudoraSettings, nsIImportSettings)
@@ -93,29 +91,24 @@ NS_IMETHODIMP nsEudoraSettings::AutoLocate(PRUnichar **description, nsIFileSpec
 	
 	*description = nsnull;	
 	*_retval = PR_FALSE;	
-	*location = nsnull;
 
 	nsresult	rv;
-	if (NS_FAILED( rv = NS_NewFileSpec( location)))
-		return( rv);
+
+	if (NS_FAILED( rv = NS_NewFileSpec( getter_AddRefs(m_pLocation))))
+		return rv;
 	*description = nsEudoraStringBundle::GetStringByID( EUDORAIMPORT_NAME);
 
 #if defined(XP_WIN) || defined(XP_OS2)
-	*_retval = nsEudoraWin32::FindSettingsFile( *location);
+	*_retval = nsEudoraWin32::FindSettingsFile( m_pLocation );
 #endif
 	
-	m_pLocation = *location;
-	NS_IF_ADDREF( m_pLocation);
-
-	return( NS_OK);
+  NS_IF_ADDREF(*location = m_pLocation);
+	return NS_OK;
 }
 
 NS_IMETHODIMP nsEudoraSettings::SetLocation(nsIFileSpec *location)
 {
-	NS_IF_RELEASE( m_pLocation);
 	m_pLocation = location;
-	NS_IF_ADDREF( m_pLocation);
-
 	return( NS_OK);
 }
 
@@ -129,17 +122,15 @@ NS_IMETHODIMP nsEudoraSettings::Import(nsIMsgAccount **localMailAccount, PRBool
 	// Get the settings file if it doesn't exist
 	if (!m_pLocation) {
 #if defined(XP_WIN) || defined(XP_OS2)
-		if (NS_SUCCEEDED( rv = NS_NewFileSpec( &m_pLocation))) {
+		if (NS_SUCCEEDED( rv = NS_NewFileSpec( getter_AddRefs(m_pLocation)))) {
 			if (!nsEudoraWin32::FindSettingsFile( m_pLocation)) {
-				NS_IF_RELEASE( m_pLocation);
 				m_pLocation = nsnull;
 			}
 		}
 #endif
 #if defined(XP_MAC) || defined(XP_MACOSX)
-		if (NS_SUCCEEDED( rv = NS_NewFileSpec( &m_pLocation))) {
+		if (NS_SUCCEEDED( rv = NS_NewFileSpec( getter_AddRefs(m_pLocation)))) {
 			if (!nsEudoraMac::FindSettingsFile( m_pLocation)) {
-				NS_IF_RELEASE( m_pLocation);
 				m_pLocation = nsnull;
 			}
 		}
diff --git a/mailnews/import/eudora/src/nsEudoraSettings.h b/mailnews/import/eudora/src/nsEudoraSettings.h
index 98ff69f3a3cf..36bd6b39a8d2 100644
--- a/mailnews/import/eudora/src/nsEudoraSettings.h
+++ b/mailnews/import/eudora/src/nsEudoraSettings.h
@@ -41,6 +41,7 @@
 
 #include "nsIImportSettings.h"
 #include "nsIFileSpec.h"
+#include "nsCOMPtr.h"
 
 class nsEudoraSettings : public nsIImportSettings {
 public:
@@ -56,7 +57,7 @@ public:
 	NS_DECL_NSIIMPORTSETTINGS	  
 
 private:
-	nsIFileSpec *	m_pLocation;
+	nsCOMPtr<nsIFileSpec> m_pLocation;
 };
 
 #endif /* nsEudoraSettings_h___ */
diff --git a/mailnews/import/eudora/src/nsEudoraWin32.cpp b/mailnews/import/eudora/src/nsEudoraWin32.cpp
index 773eb829c29c..5c0daa413b5d 100644
--- a/mailnews/import/eudora/src/nsEudoraWin32.cpp
+++ b/mailnews/import/eudora/src/nsEudoraWin32.cpp
@@ -106,6 +106,7 @@ PRBool nsEudoraWin32::FindMailFolder( nsIFileSpec *pFolder)
 PRBool nsEudoraWin32::FindEudoraLocation( nsIFileSpec *pFolder, PRBool findIni)
 {
 	PRBool	result = PR_FALSE;
+  PRBool  exists = PR_FALSE;
 
 	// look in the registry to see where eudora is installed?
 	HKEY	sKey;
@@ -116,7 +117,30 @@ PRBool nsEudoraWin32::FindEudoraLocation( nsIFileSpec *pFolder, PRBool findIni)
 			nsCString str((const char *)pBytes);
 			delete [] pBytes;
 			
+      str.CompressWhitespace();
+			
 			// Command line is Eudora mailfolder eudora.ini
+      if (findIni) {
+        // find the string coming after the last space
+        PRInt32 index = str.RFind(" ");
+        if (index != -1) {
+          index++; // skip the space
+          nsCString	path;
+					str.Mid( path, index, str.Length() - index);
+
+          pFolder->SetNativePath( path.get());
+          pFolder->IsFile( &exists);
+          if (exists)
+					  result = exists;
+          else // it may just be the mailbox location....guess that there will be a eudora.ini file there
+          {
+            pFolder->AppendRelativeUnixPath("eudora.ini");
+            pFolder->IsFile( &exists);
+					  result = exists;
+          }       
+        } 
+      } // if findIni
+      else {
 			int	idx = -1;
 			if (str.CharAt( 0) == '"') {
 				idx = str.FindChar( '"', 1);
@@ -127,19 +151,6 @@ PRBool nsEudoraWin32::FindEudoraLocation( nsIFileSpec *pFolder, PRBool findIni)
 				idx = str.FindChar( ' ');
 			}
 			
-			if ((idx != -1) && findIni) {
-				idx++;
-				while (str.CharAt( idx) == ' ') idx++;
-				int eIdx = -1;
-				if (str.CharAt( idx) == '"') {
-					eIdx = str.FindChar( '"', idx);
-				}
-				else {
-					eIdx = str.FindChar( ' ', idx);
-				}
-				idx = eIdx;
-			}
-
 			if (idx != -1) {
 				idx++;
 				while (str.CharAt( idx) == ' ') idx++;
@@ -154,32 +165,14 @@ PRBool nsEudoraWin32::FindEudoraLocation( nsIFileSpec *pFolder, PRBool findIni)
 					nsCString	path;
 					str.Mid( path, idx, endIdx - idx);					
 					
-					/*  
-						For some reason, long long ago, it was necessary
-						to clean up the path to Eudora so that it didn't contain
-						a mix of short file names and long file names.  This is
-						no longer true.
-
-					ConvertPath( path);
-					
-					IMPORT_LOG1( "** GetShortPath returned: %s\n", path.get());
-					*/
-
 					pFolder->SetNativePath( path.get());
-					PRBool exists = PR_FALSE;
-					if (findIni) {
-						if (NS_SUCCEEDED( pFolder->IsFile( &exists))) {
-							result = exists;
-						}
-					}
-					else {
-						if (NS_SUCCEEDED( pFolder->IsDirectory( &exists))) {
+
+					  if (NS_SUCCEEDED( pFolder->IsDirectory( &exists)))
 							result = exists;
 						}
 					}
 				}
-			}
-		}
+    } // if pBytes
 		::RegCloseKey( sKey);
 	}
 
diff --git a/mailnews/import/public/nsIImportMail.idl b/mailnews/import/public/nsIImportMail.idl
index 475814dbc24f..44cb870e5afc 100644
--- a/mailnews/import/public/nsIImportMail.idl
+++ b/mailnews/import/public/nsIImportMail.idl
@@ -126,4 +126,5 @@ interface nsIImportMail : nsISupports
 #define kDestTrashFolderName "Trash"
 #define kDestUnsentMessagesFolderName "Unsent Messages"
 #define kDestSentFolderName "Sent"
+#define kDestInboxFolderName "Inbox"
 %}