diff --git a/src/Makefile b/src/Makefile
index 42c86f3..4977d7c 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -1975,12 +1975,15 @@
 	test70 test71 test72 test73 test74 test75 test76 test77 test78 test79 \
 	test80 test81 test82 test83 test84 test85 test86 test87 test88 test89 \
 	test90 test91 test92 test93 test94 test95 test96 test97 test98 test99 \
-	test100 test101 test102 test103 test104 test105 test106 test107:
+	test100 test101 test102 test103 test104 test105 test106 test107 test108:
 	cd testdir; rm -f $@.out; $(MAKE) -f Makefile $@.out VIMPROG=../$(VIMTARGET) $(GUI_TESTARG) SCRIPTSOURCE=../$(SCRIPTSOURCE)
 
 test_assert \
 	test_backspace_opt \
 	test_cdo \
+	test_cursor_func \
+	test_delete \
+	test_expand \
 	test_hardcopy \
 	test_increment \
 	test_lispwords \
diff --git a/src/misc2.c b/src/misc2.c
index 0ee57fc..4e9e473 100644
--- a/src/misc2.c
+++ b/src/misc2.c
@@ -5543,7 +5543,7 @@
 	/* copy file name into NameBuff, expanding environment variables */
 	save_char = ptr[len];
 	ptr[len] = NUL;
-	expand_env(ptr, NameBuff, MAXPATHL);
+	expand_env_esc(ptr, NameBuff, MAXPATHL, FALSE, TRUE, NULL);
 	ptr[len] = save_char;
 
 	vim_free(ff_file_to_find);
diff --git a/src/testdir/test27.in b/src/testdir/test27.in
deleted file mode 100644
index 2df16d9..0000000
--- a/src/testdir/test27.in
+++ /dev/null
@@ -1,20 +0,0 @@
-Test for expanding file names
-
-STARTTEST
-:!mkdir Xdir1
-:!mkdir Xdir2
-:!mkdir Xdir3
-:cd Xdir3
-:!mkdir Xdir4
-:cd ..
-:w Xdir1/file
-:w Xdir3/Xdir4/file
-:n Xdir?/*/file
-Go%:.w! test.out
-:n! Xdir?/*/nofile
-Go%:.w >>test.out
-:e! xx
-:!rm -rf Xdir1 Xdir2 Xdir3
-:qa!
-ENDTEST
-
diff --git a/src/testdir/test27.ok b/src/testdir/test27.ok
deleted file mode 100644
index c35f243..0000000
--- a/src/testdir/test27.ok
+++ /dev/null
@@ -1,2 +0,0 @@
-Xdir3/Xdir4/file
-Xdir?/*/nofile
diff --git a/src/testdir/test_alot.vim b/src/testdir/test_alot.vim
index 3cd1f82..e89afb4 100644
--- a/src/testdir/test_alot.vim
+++ b/src/testdir/test_alot.vim
@@ -4,6 +4,7 @@
 source test_backspace_opt.vim
 source test_cursor_func.vim
 source test_delete.vim
+source test_expand.vim
 source test_lispwords.vim
 source test_menu.vim
 source test_searchpos.vim
diff --git a/src/testdir/test_expand.vim b/src/testdir/test_expand.vim
new file mode 100644
index 0000000..fd999db
--- /dev/null
+++ b/src/testdir/test_expand.vim
@@ -0,0 +1,36 @@
+" Test for expanding file names
+
+func Test_with_directories()
+  call mkdir('Xdir1')
+  call mkdir('Xdir2')
+  call mkdir('Xdir3')
+  cd Xdir3
+  call mkdir('Xdir4')
+  cd ..
+
+  split Xdir1/file
+  call setline(1, ['a', 'b'])
+  w
+  w Xdir3/Xdir4/file
+  close
+
+  next Xdir?/*/file
+  call assert_equal('Xdir3/Xdir4/file', expand('%'))
+  next! Xdir?/*/nofile
+  call assert_equal('Xdir?/*/nofile', expand('%'))
+
+  call delete('Xdir1', 'rf')
+  call delete('Xdir2', 'rf')
+  call delete('Xdir3', 'rf')
+endfunc
+
+func Test_with_tilde()
+  let dir = getcwd()
+  call mkdir('Xdir ~ dir')
+  call assert_true(isdirectory('Xdir ~ dir'))
+  cd Xdir\ ~\ dir
+  call assert_true(getcwd() =~ 'Xdir \~ dir')
+  exe 'cd ' . fnameescape(dir)
+  call delete('Xdir ~ dir', 'd')
+  call assert_false(isdirectory('Xdir ~ dir'))
+endfunc
diff --git a/src/version.c b/src/version.c
index 9c24efd..1a61df4 100644
--- a/src/version.c
+++ b/src/version.c
@@ -742,6 +742,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1108,
+/**/
     1107,
 /**/
     1106,