diff --git a/ntfsprogs/ntfscp.c b/ntfsprogs/ntfscp.c
index 90c754a3..c96024b2 100644
--- a/ntfsprogs/ntfscp.c
+++ b/ntfsprogs/ntfscp.c
@@ -3,6 +3,7 @@
  *
  * Copyright (c) 2004-2006 Yura Pakhuchiy
  * Copyright (c) 2005 Anton Altaparmakov
+ * Copyright (c) 2006 Hil Liao
  *
  * This utility will overwrite files on NTFS volume.
  *
@@ -43,6 +44,9 @@
 #ifdef HAVE_UNISTD_H
 #include <unistd.h>
 #endif
+#ifdef HAVE_LIBGEN_H
+#include <libgen.h>
+#endif
 
 #include "types.h"
 #include "attrib.h"
@@ -270,6 +274,34 @@ static void signal_handler(int arg __attribute__((unused)))
 	caught_terminate++;
 }
 
+/**
+ * Create a regular file under the given directory inode
+ *
+ * It is a wrapper function to ntfs_create(...)
+ *
+ * Return:  the created file inode
+ */
+static ntfs_inode *ntfs_new_file(ntfs_inode *dir_ni,
+			  const char *filename)
+{
+	ntfschar *ufilename;
+	/* inode to the file that is being created */
+	ntfs_inode *ni;
+	int ufilename_len;
+
+	/* ntfs_mbstoucs(...) will allocate memory for ufilename if it's NULL */
+	ufilename = NULL;
+	ufilename_len = ntfs_mbstoucs(filename, &ufilename, 0);
+	if (ufilename_len == -1) {
+		ntfs_log_perror("ERROR: Failed to convert '%s' to unicode",
+					filename);
+		return NULL;
+	}
+	ni = ntfs_create(dir_ni, ufilename, ufilename_len, S_IFREG);
+	free(ufilename);
+	return ni;
+}
+
 /**
  * main - Begin here
  *
@@ -352,26 +384,116 @@ int main(int argc, char *argv[])
 	} else
 		out = ntfs_pathname_to_inode(vol, NULL, opts.dest_file);
 	if (!out) {
-		ntfs_log_perror("ERROR: Couldn't open destination file");
-		goto close_src;
-	}
-	if ((out->mrec->flags & MFT_RECORD_IS_DIRECTORY) && !opts.inode) {
-		/* 
-		 * @out is directory and it was specified by pathname, add
-		 * filename to path and try once again.
-		 */
+		/* copy the file if the dest_file's parent dir can be opened */
+		char *parent_dirname;
 		char *filename;
-		ntfs_inode *out_tmp;
+		ntfs_inode *dir_ni;
+		ntfs_inode *ni;
+		int dest_path_len;
+		char *dirname_last_whack;
 
-		filename = basename(opts.src_file);
-		out_tmp = ntfs_pathname_to_inode(vol, out, filename);
-		ntfs_inode_close(out);
-		out = out_tmp;
-		if (!out) {
-			ntfs_log_perror("ERROR: Failed to open destination "
-					"file");
+		filename = basename(opts.dest_file);
+		dest_path_len = strlen(opts.dest_file);
+		parent_dirname = strdup(opts.dest_file);
+		if (!parent_dirname) {
+			ntfs_log_perror("strdup() failed");
 			goto close_src;
 		}
+		dirname_last_whack = strrchr(parent_dirname, '/');
+		if (dirname_last_whack) {
+			dirname_last_whack[1] = '\0';
+			dir_ni = ntfs_pathname_to_inode(vol, NULL,
+					parent_dirname);
+		} else {
+			ntfs_log_verbose("Target path does not contain '/'. "
+					"Using root directory as parent.\n");
+			dir_ni = ntfs_inode_open(vol, FILE_root);
+		}
+		if (dir_ni) {
+			if (!(dir_ni->mrec->flags & MFT_RECORD_IS_DIRECTORY)) {
+				/* Remove the last '/' for estetic reasons. */
+				dirname_last_whack[0] = '\0';
+				ntfs_log_error("The file '%s' already exists "
+						"and is not a directory. "
+						"Aborting.\n", parent_dirname);
+				free(parent_dirname);
+				ntfs_inode_close(dir_ni);
+				goto close_src;
+			}
+			ntfs_log_verbose("Creating a new file '%s' under '%s'"
+					 "\n", filename, parent_dirname);
+			ni = ntfs_new_file(dir_ni, filename);
+			ntfs_inode_close(dir_ni);
+			if (!ni) {
+				ntfs_log_perror("Failed to create '%s' under "
+						"'%s'", filename,
+						parent_dirname);
+				free(parent_dirname);
+				goto close_src;
+			}
+			out = ni;
+		} else {
+			ntfs_log_perror("ERROR: Couldn't open '%s'",
+					parent_dirname);
+			free(parent_dirname);
+			goto close_src;
+		}
+		free(parent_dirname);
+	}
+	/* the destination file is a path */
+	if ((out->mrec->flags & MFT_RECORD_IS_DIRECTORY) && !opts.inode) {
+		char *filename;
+		char *overwrite_filename;
+		int overwrite_filename_len;
+		/* inode to the file that is being created */
+		ntfs_inode *ni;
+		/* inode to the directory to create the file */
+		ntfs_inode *dir_ni;
+		int filename_len;
+		int dest_dirname_len;
+
+		filename = basename(opts.src_file);
+		dir_ni = out;
+		filename_len = strlen(filename);
+		dest_dirname_len = strlen(opts.dest_file);
+		overwrite_filename_len = filename_len+dest_dirname_len+2;
+		overwrite_filename = malloc(overwrite_filename_len);
+		if (!overwrite_filename) {
+			ntfs_log_perror("ERROR: Failed to allocate %i bytes "
+					"memory for the overwrite filename",
+					overwrite_filename_len);
+			ntfs_inode_close(out);
+			goto close_src;
+		}
+		strcpy(overwrite_filename, opts.dest_file);
+		/* add '/' in the end of dest_dirname if there is not one there */
+		if (opts.dest_file[dest_dirname_len-1] != '/') {
+			strcat(overwrite_filename, "/");
+		}
+		strcat(overwrite_filename, filename);
+		ni = ntfs_pathname_to_inode(vol, NULL, overwrite_filename);
+		/* Does a file with the same name exist in the dest dir? */
+		if (ni) {
+			ntfs_log_verbose("Destination path has a file with "
+					"the same name\nOverwriting the file "
+					"'%s'\n", overwrite_filename);
+			ntfs_inode_close(out);
+			out = ni;
+		} else {
+			ntfs_log_verbose("Creating a new file '%s' under '%s'\n",
+					 filename, opts.dest_file);
+			ni = ntfs_new_file(dir_ni, filename);
+			ntfs_inode_close(dir_ni);
+			if (!ni) {
+				ntfs_log_perror("ERROR: Failed to create the "
+						"destination file under '%s'",
+						opts.dest_file);
+				free(overwrite_filename);
+				goto close_src;
+			}
+			out = ni;
+		}
+		free(overwrite_filename);
 	}
 
 	attr_name = ntfs_str2ucs(opts.attr_name, &attr_name_len);