diff --git a/gio/ChangeLog b/gio/ChangeLog
index d3fb32006..594f71eaf 100644
--- a/gio/ChangeLog
+++ b/gio/ChangeLog
@@ -1,3 +1,15 @@
+2009-03-03  Alexander Larsson  <alexl@redhat.com>
+
+	Bug 561172 – gnome-open fails on local URIs with anchors
+
+        * gdesktopappinfo.c:
+	Don't force uris to filenames if the uri has an anchor, because
+	that would strip the anchor.
+
+        * glocalvfs.c:
+	Strip anchor from file:// uris when creating GFile, since
+	g_filename_from_uri doesn't handle them.
+
 2009-03-03  Alexander Larsson  <alexl@redhat.com>
 
 	Bug 562613 – Missing const modifier in string parameters
diff --git a/gio/gdesktopappinfo.c b/gio/gdesktopappinfo.c
index ffe1bde21..fcd77375c 100644
--- a/gio/gdesktopappinfo.c
+++ b/gio/gdesktopappinfo.c
@@ -567,6 +567,7 @@ expand_macro (char              macro,
   char *expanded;
   gboolean force_file_uri;
   char force_file_uri_macro;
+  char *uri;
 
   g_return_if_fail (exec != NULL);
 
@@ -602,15 +603,18 @@ expand_macro (char              macro,
     case 'n':
       if (uris)
 	{
-          if (!force_file_uri)
+	  uri = uris->data;
+          if (!force_file_uri ||
+	      /* Pass URI if it contains an anchor */
+	      strchr (uri, '#') != NULL)
             {
-              expanded = expand_macro_single (macro, uris->data);
+              expanded = expand_macro_single (macro, uri);
             }
           else
             {
-              expanded = expand_macro_single (force_file_uri_macro, uris->data);
+              expanded = expand_macro_single (force_file_uri_macro, uri);
               if (expanded == NULL)
-                expanded = expand_macro_single (macro, uris->data);
+                expanded = expand_macro_single (macro, uri);
             }
 
 	  if (expanded)
@@ -629,15 +633,19 @@ expand_macro (char              macro,
     case 'N':
       while (uris)
 	{
-          if (!force_file_uri)
+	  uri = uris->data;
+	  
+          if (!force_file_uri ||
+	      /* Pass URI if it contains an anchor */
+	      strchr (uri, '#') != NULL)
             {
-              expanded = expand_macro_single (macro, uris->data);
+              expanded = expand_macro_single (macro, uri);
             }
           else
             {
-              expanded = expand_macro_single (force_file_uri_macro, uris->data);
+              expanded = expand_macro_single (force_file_uri_macro, uri);
               if (expanded == NULL)
-                expanded = expand_macro_single (macro, uris->data);
+                expanded = expand_macro_single (macro, uri);
             }
 
 	  if (expanded)
diff --git a/gio/glocalvfs.c b/gio/glocalvfs.c
index 980e1cfdd..cd535e38a 100644
--- a/gio/glocalvfs.c
+++ b/gio/glocalvfs.c
@@ -31,6 +31,7 @@
 #ifdef HAVE_PWD_H
 #include <pwd.h>
 #endif
+#include <string.h>
 
 #include "gioalias.h"
 
@@ -90,9 +91,22 @@ g_local_vfs_get_file_for_uri (GVfs       *vfs,
 {
   char *path;
   GFile *file;
+  char *stripped_uri, *hash;
+  
+  if (strchr (uri, '#') != NULL)
+    {
+      stripped_uri = g_strdup (uri);
+      hash = strchr (stripped_uri, '#');
+      *hash = 0;
+    }
+  else
+    stripped_uri = (char *)uri;
+      
+  path = g_filename_from_uri (stripped_uri, NULL, NULL);
 
-  path = g_filename_from_uri (uri, NULL, NULL);
-
+  if (stripped_uri != uri)
+    g_free (stripped_uri);
+  
   if (path != NULL)
     file = _g_local_file_new (path);
   else