Comment 14 for bug 164709

I don't know if it is the same bug, but it also doesn't open files with non-ASCII characters. This is particular annoying, since gutsy introduced localized folder names, so my "Desktop" is now called "Área de Trabalho", so I can't open a video file on my Desktop. I also tried on a folder without spaces, but with non-ASCII characters, and also had the same problem.
Opening files from terminal is ok. Changing mplayer.desktop also fixed the problem.