diff --git a/docs/help/in/recode.in b/docs/help/in/recode.in
index c193b21c..4fdfa202 100644
--- a/docs/help/in/recode.in
+++ b/docs/help/in/recode.in
@@ -27,15 +27,15 @@ Examples:
 /SET recode_fallback <charset> 
 to set the fallback charset for incoming events
 
-This charset will be used when a conversion to 
-the defined charset(/recode add) fails or if the 
-charset for the target(query or channel) is not set.
+This charset is used if your term_charset is UTF-8
+and the conversion for the target is not set and
+the text is not UTF-8.
 
 /SET recode_out_default_charset <charset> 
 to set the global outgoing charset
 
-When it's set to a charset it will be used instead 
-of the charset you have defined with /recode add
+When it's set to a charset it will be used
+if no conversion for the target is set.
 
 /SET recode_transliterate ON 
 to enable the global transliteration.
diff --git a/src/core/recode.c b/src/core/recode.c
index 07cbe50c..11128635 100644
--- a/src/core/recode.c
+++ b/src/core/recode.c
@@ -76,14 +76,14 @@ char *recode_in(const char *str, const char *target)
 	int len;
 
 	if (!str)
-		return g_strdup(str);
+		return NULL;
 
 	len = strlen(str);
 	
 	str_is_utf8 = g_utf8_validate(str, len, NULL);
 	translit = settings_get_bool("recode_transliterate");
 
-	if (target != NULL && from == NULL)
+	if (target != NULL)
 		from = iconfig_get_str("conversions", target, NULL);
 
 	term_is_utf8 = recode_get_charset(&to);
@@ -120,12 +120,11 @@ char *recode_out(const char *str, const char *target)
 #ifdef HAVE_GLIB2
 	char *recoded = NULL;
 	const char *from = NULL;
-	gboolean translit;
-	gboolean term_is_utf8;
+	gboolean translit, term_is_utf8;
 	int len;
 
 	if (!str)
-		return g_strdup(str);
+		return NULL;
 
 	len = strlen(str);
 
@@ -135,10 +134,11 @@ char *recode_out(const char *str, const char *target)
 		const char *to = NULL;
 		char *translit_to = NULL;
 
-		/* default outgoing charset if set */
-		to = settings_get_str("recode_out_default_charset");
+		to = iconfig_get_str("conversions", target, NULL);
 		if (to == NULL || *to == '\0')
-			to = iconfig_get_str("conversions", target, NULL);
+			/* default outgoing charset if set */
+			to = settings_get_str("recode_out_default_charset");
+
 		if (to && *to != '\0') {
 			if (translit && !is_translit(to))
 				to = translit_to = g_strconcat(to ,"//TRANSLIT", NULL);
@@ -150,7 +150,7 @@ char *recode_out(const char *str, const char *target)
 	}
 	if (!recoded)
 		recoded = g_strdup(str);
-		
+
 	return recoded;
 #else
 	return g_strdup(str);
diff --git a/src/fe-common/core/fe-common-core.c b/src/fe-common/core/fe-common-core.c
index 443204cb..ff26d2ca 100644
--- a/src/fe-common/core/fe-common-core.c
+++ b/src/fe-common/core/fe-common-core.c
@@ -175,7 +175,9 @@ void fe_common_core_init(void)
 	settings_add_bool("lookandfeel", "use_status_window", TRUE);
 	settings_add_bool("lookandfeel", "use_msgs_window", FALSE);
 #if defined (HAVE_NL_LANGINFO) && defined(CODESET)
-	settings_add_str("lookandfeel", "term_charset", nl_langinfo(CODESET));
+	settings_add_str("lookandfeel", "term_charset", 
+			 *nl_langinfo(CODESET) != '\0' ? 
+			 nl_langinfo(CODESET) : "ISO8859-1");
 #else
 	settings_add_str("lookandfeel", "term_charset", "ISO8859-1");
 #endif
diff --git a/src/fe-common/core/fe-recode.c b/src/fe-common/core/fe-recode.c
index a46e3547..b26a5cbe 100644
--- a/src/fe-common/core/fe-recode.c
+++ b/src/fe-common/core/fe-recode.c
@@ -165,7 +165,9 @@ static void read_settings(void)
 	term_charset = settings_get_str("term_charset");
 	if (!is_valid_charset(term_charset)) {
 #if defined (HAVE_NL_LANGINFO) && defined(CODESET)
-		settings_set_str("term_charset", is_valid_charset(old_term_charset) ? old_term_charset : nl_langinfo(CODESET));
+		settings_set_str("term_charset", is_valid_charset(old_term_charset) ? 
+				 old_term_charset : *nl_langinfo(CODESET) != '\0' ?
+				 nl_langinfo(CODESET) : "ISO8859-1");
 #else
 		settings_set_str("term_charset", is_valid_charset(old_term_charset) ? old_term_charset : "ISO8859-1");
 #endif