diff --git a/python/plugins/fTools/tools/doMergeShapes.py b/python/plugins/fTools/tools/doMergeShapes.py
index 001cbb795c4..452f3ad1a5e 100755
--- a/python/plugins/fTools/tools/doMergeShapes.py
+++ b/python/plugins/fTools/tools/doMergeShapes.py
@@ -19,6 +19,7 @@ class Dialog( QDialog, Ui_Dialog ):
     self.mergeThread = None
     self.inputFiles = None
     self.outFileName = None
+    self.inEncoding = None
 
     self.btnOk = self.buttonBox.button( QDialogButtonBox.Ok )
     self.btnClose = self.buttonBox.button( QDialogButtonBox.Close )
@@ -26,6 +27,7 @@ class Dialog( QDialog, Ui_Dialog ):
     QObject.connect( self.btnSelectDir, SIGNAL( "clicked()" ), self.inputDir )
     QObject.connect( self.btnSelectFile, SIGNAL( "clicked()" ), self.outFile )
     QObject.connect( self.chkListMode, SIGNAL( "stateChanged( int )" ), self.changeMode )
+    QObject.connect( self.leOutShape, SIGNAL( "editingFinished()" ), self.updateOutFile )
 
   def inputDir( self ):
     inDir = QFileDialog.getExistingDirectory( self,
@@ -83,6 +85,11 @@ class Dialog( QDialog, Ui_Dialog ):
       self.lblGeometry.setEnabled( True )
       self.cmbGeometry.setEnabled( True )
 
+  def updateOutFile( self ):
+    self.outFileName = self.leOutShape.text()
+    settings = QSettings()
+    self.outEncoding = settings.value( "/UI/encoding" ).toString()
+
   def reject( self ):
     QDialog.reject( self )
 
@@ -110,22 +117,27 @@ class Dialog( QDialog, Ui_Dialog ):
     else:
       baseDir = self.leInputDir.text()
 
-    # look for shapes with specified geometry type
-    self.inputFiles = ftools_utils.getShapesByGeometryType( baseDir, self.inputFiles, self.cmbGeometry.currentIndex() )
-
-    self.progressFiles.setRange( 0, self.inputFiles.count() )
-
     outFile = QFile( self.outFileName )
     if outFile.exists():
       if not QgsVectorFileWriter.deleteShapeFile( self.outFileName ):
         QMessageBox.warning( self, self.tr( "Delete error" ), self.tr( "Can't delete file %1" ).arg( outFileName ) )
         return
 
+    # look for shapes with specified geometry type
+    self.inputFiles = ftools_utils.getShapesByGeometryType( baseDir, self.inputFiles, self.cmbGeometry.currentIndex() )
+    self.progressFiles.setRange( 0, self.inputFiles.count() )
+
+    if self.inEncoding == None:
+      self.inEncoding = "System"
+
     QApplication.setOverrideCursor( QCursor( Qt.WaitCursor ) )
     self.btnOk.setEnabled( False )
 
-    self.mergeThread = ShapeMergeThread( baseDir, self.inputFiles, self.outFileName, self.encoding )
+    self.mergeThread = ShapeMergeThread( baseDir, self.inputFiles, self.inEncoding, self.outFileName, self.encoding )
     QObject.connect( self.mergeThread, SIGNAL( "rangeChanged( PyQt_PyObject )" ), self.setProgressRange )
+    QObject.connect( self.mergeThread, SIGNAL( "checkStarted()" ), self.setFeatureProgressFormat )
+    QObject.connect( self.mergeThread, SIGNAL( "checkFinished()" ), self.resetFeatureProgressFormat )
+    QObject.connect( self.mergeThread, SIGNAL( "fileNameChanged( PyQt_PyObject )" ), self.setShapeProgressFormat )
     QObject.connect( self.mergeThread, SIGNAL( "featureProcessed()" ), self.featureProcessed )
     QObject.connect( self.mergeThread, SIGNAL( "shapeProcessed()" ), self.shapeProcessed )
     QObject.connect( self.mergeThread, SIGNAL( "processingFinished()" ), self.processingFinished )
@@ -141,9 +153,18 @@ class Dialog( QDialog, Ui_Dialog ):
     self.progressFeatures.setRange( 0, max )
     self.progressFeatures.setValue( 0 )
 
+  def setFeatureProgressFormat( self ):
+    self.progressFeatures.setFormat( "Checking files: %p% ")
+
+  def resetFeatureProgressFormat( self ):
+    self.progressFeatures.setFormat( "%p% ")
+
   def featureProcessed( self ):
     self.progressFeatures.setValue( self.progressFeatures.value() + 1 )
 
+  def setShapeProgressFormat( self, fileName ):
+    self.progressFiles.setFormat( "%p% " + fileName )
+
   def shapeProcessed( self ):
     self.progressFiles.setValue( self.progressFiles.value() + 1 )
 
@@ -152,7 +173,9 @@ class Dialog( QDialog, Ui_Dialog ):
 
     if self.chkAddToCanvas.isChecked():
       if not ftools_utils.addShapeToCanvas( unicode( self.outFileName ) ):
-        QMessageBox.warning( self, self.tr( "Merging" ), self.tr( "Error loading output shapefile:\n%1" ).arg( unicode( self.outFileName ) ) )
+        QMessageBox.warning( self, self.tr( "Merging" ),
+                             self.tr( "Error loading output shapefile:\n%1" )
+                             .arg( unicode( self.outFileName ) ) )
 
     self.restoreGui()
 
@@ -165,6 +188,7 @@ class Dialog( QDialog, Ui_Dialog ):
       self.mergeThread = None
 
   def restoreGui( self ):
+    self.progressFiles.setFormat( "%p%" )
     self.progressFeatures.setRange( 0, 100 )
     self.progressFeatures.setValue( 0 )
     self.progressFiles.setValue( 0 )
@@ -174,10 +198,11 @@ class Dialog( QDialog, Ui_Dialog ):
     self.btnOk.setEnabled( True )
 
 class ShapeMergeThread( QThread ):
-  def __init__( self, dir, shapes, outputFileName, outputEncoding ):
+  def __init__( self, dir, shapes, inputEncoding, outputFileName, outputEncoding ):
     QThread.__init__( self, QThread.currentThread() )
     self.baseDir = dir
     self.shapes = shapes
+    self.inputEncoding = inputEncoding
     self.outputFileName = outputFileName
     self.outputEncoding = outputEncoding
 
@@ -208,10 +233,12 @@ class ShapeMergeThread( QThread ):
       if not newLayer.isValid():
         continue
       vprovider = newLayer.dataProvider()
+      vprovider.setEncoding( self.inputEncoding )
       allAttrs = vprovider.attributeIndexes()
       vprovider.select( allAttrs )
       nFeat = vprovider.featureCount()
       self.emit( SIGNAL( "rangeChanged( PyQt_PyObject )" ), nFeat )
+      self.emit( SIGNAL( "fileNameChanged( PyQt_PyObject )" ), fileName )
       inFeat = QgsFeature()
       outFeat = QgsFeature()
       inGeom = QgsGeometry()