Index: gnome-session/gsm-autostart.c
===================================================================
--- gnome-session/gsm-autostart.c	(revision 4626)
+++ gnome-session/gsm-autostart.c	(working copy)
@@ -260,3 +260,25 @@
 
   return list;
 }
+
+gchar *
+gsm_autostart_parse_command_line (GKeyFile *keyfile)
+{
+  gchar *p, *result;
+  GString *gs;
+  gchar *exec = gsm_key_file_get_string (keyfile, "Exec");
+
+  gs = g_string_new (NULL);
+  for (p = exec; *p != '\0'; p++)
+    {
+      if (*p == '%' && (p[1] == 'u' || p[1] == 'U'))
+        p++;
+      else
+        g_string_append_c (gs, *p);
+    }
+
+  result = gs->str;
+  g_string_free (gs, FALSE);
+
+  return result;
+}
Index: gnome-session/gsm-autostart.h
===================================================================
--- gnome-session/gsm-autostart.h	(revision 4626)
+++ gnome-session/gsm-autostart.h	(working copy)
@@ -43,6 +43,9 @@
                                   GsmAutostartFreeFunc   free_handler,
                                   gboolean               enabled_only);
 
+gchar *
+gsm_autostart_parse_command_line (GKeyFile *keyfile);
+
 G_END_DECLS
 
 #endif /* GSM_AUTOSTART_H */
Index: gnome-session/startup-programs.c
===================================================================
--- gnome-session/startup-programs.c	(revision 4626)
+++ gnome-session/startup-programs.c	(working copy)
@@ -117,7 +117,7 @@
   if (client->name == NULL)
     client->name = gsm_key_file_get_locale_string (keyfile, "GenericName");
 
-  client->command = gsm_key_file_get_string (keyfile, "Exec");
+  client->command = gsm_autostart_parse_command_line (keyfile);
   client->comment = gsm_key_file_get_locale_string (keyfile, "Comment");
   client->enabled = gsm_key_file_get_boolean (keyfile,
                                               "X-GNOME-Autostart-enabled",
Index: gnome-session/save.c
===================================================================
--- gnome-session/save.c	(revision 4626)
+++ gnome-session/save.c	(working copy)
@@ -373,7 +373,7 @@
   Client  *client;
   SmProp  *prop;
 
-  exec = gsm_key_file_get_string (keyfile, "Exec");
+  exec = gsm_autostart_parse_command_line (keyfile);
   if (!g_shell_parse_argv (exec, &argc, &argv, NULL))
     {
       g_free (exec);