diff --git a/src/eval.c b/src/eval.c
index d238dc2..83e2016 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -23554,6 +23554,27 @@
 		return -1;
 	}
 
+#ifdef WIN3264
+# if _WIN32_WINNT >= 0x0500
+	if (vim_strchr(*fnamep, '~') != NULL)
+	{
+	    /* Expand 8.3 filename to full path.  Needed to make sure the same
+	     * file does not have two different names.
+	     * Note: problem does not occur if _WIN32_WINNT < 0x0500. */
+	    p = alloc(_MAX_PATH + 1);
+	    if (p != NULL)
+	    {
+		if (GetLongPathName(*fnamep, p, MAXPATHL))
+		{
+		    vim_free(*bufp);
+		    *bufp = *fnamep = p;
+		}
+		else
+		    vim_free(p);
+	    }
+	}
+# endif
+#endif
 	/* Append a path separator to a directory. */
 	if (mch_isdir(*fnamep))
 	{
diff --git a/src/misc1.c b/src/misc1.c
index 10a0fc0..80e7fa6 100644
--- a/src/misc1.c
+++ b/src/misc1.c
@@ -4499,7 +4499,7 @@
 {
     size_t	dirlen = 0, envlen = 0;
     size_t	len;
-    char_u	*homedir_env;
+    char_u	*homedir_env, *homedir_env_orig;
     char_u	*p;
 
     if (src == NULL)
@@ -4525,9 +4525,24 @@
 	dirlen = STRLEN(homedir);
 
 #ifdef VMS
-    homedir_env = mch_getenv((char_u *)"SYS$LOGIN");
+    homedir_env_orig = homedir_env = mch_getenv((char_u *)"SYS$LOGIN");
 #else
-    homedir_env = mch_getenv((char_u *)"HOME");
+    homedir_env_orig = homedir_env = mch_getenv((char_u *)"HOME");
+#endif
+#if defined(FEAT_MODIFY_FNAME) || defined(WIN3264)
+    if (vim_strchr(homedir_env, '~') != NULL)
+    {
+	int	usedlen = 0;
+	int	flen;
+	char_u	*fbuf = NULL;
+
+	flen = (int)STRLEN(homedir_env);
+	(void)modify_fname(":p", &usedlen, &homedir_env, &fbuf, &flen);
+	flen = (int)STRLEN(homedir_env);
+	if (flen > 0 && vim_ispathsep(homedir_env[flen - 1]))
+	    /* Remove the trailing / that is added to a directory. */
+	    homedir_env[flen - 1] = NUL;
+    }
 #endif
 
     if (homedir_env != NULL && *homedir_env == NUL)
@@ -4585,6 +4600,9 @@
     /* if (dstlen == 0) out of space, what to do??? */
 
     *dst = NUL;
+
+    if (homedir_env != homedir_env_orig)
+	vim_free(homedir_env);
 }
 
 /*
diff --git a/src/version.c b/src/version.c
index 2378abb..2f09e4be 100644
--- a/src/version.c
+++ b/src/version.c
@@ -715,6 +715,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    559,
+/**/
     558,
 /**/
     557,