diff --git a/gio/ChangeLog b/gio/ChangeLog
index e3bd9b60e..bbb87a06b 100644
--- a/gio/ChangeLog
+++ b/gio/ChangeLog
@@ -1,3 +1,12 @@
+2008-11-28  Matthias Clasen  <mclasen@redhat.com>
+
+	Bug 548163 – Nautilus displays wrong error message for too long file
+	names
+
+	* glocalfile.c (g_local_file_set_display_name): Correctly set
+	error conditions if the new name is e.g. too long. Reported
+	by Leonardo Ferreira Fontenelle.
+
 2008-11-28  Matthias Clasen  <mclasen@redhat.com>
 
 	Bug 547481 – g_data_input_stream_read_line behaves not as stated in
diff --git a/gio/glocalfile.c b/gio/glocalfile.c
index fb890db60..4d772b461 100644
--- a/gio/glocalfile.c
+++ b/gio/glocalfile.c
@@ -1116,12 +1116,23 @@ g_local_file_set_display_name (GFile         *file,
   
   if (new_file == NULL)
     return NULL;
-  
   local = G_LOCAL_FILE (file);
   new_local = G_LOCAL_FILE (new_file);
 
-  if (!(g_lstat (new_local->filename, &statbuf) == -1 &&
-	errno == ENOENT))
+  if (g_lstat (new_local->filename, &statbuf) == -1) 
+    {
+      errsv = errno;
+
+      if (errsv != ENOENT)
+        {
+	  g_set_error (error, G_IO_ERROR,
+		       g_io_error_from_errno (errsv),
+		       _("Error renaming file: %s"),
+		       g_strerror (errsv));
+          return NULL;
+        }
+    }
+  else
     {
       g_set_error_literal (error, G_IO_ERROR,
                            G_IO_ERROR_EXISTS,