diff --git a/qubesmanager/backup_utils.py b/qubesmanager/backup_utils.py
index 2cfb235..2f48418 100644
--- a/qubesmanager/backup_utils.py
+++ b/qubesmanager/backup_utils.py
@@ -186,8 +186,11 @@ def select_path_button_clicked(dialog, select_file = False):
         new_path = file_dialog_function(dialog, "Select backup location.", "~")
 
     if new_path != None:
-        dialog.dir_line_edit.setText(new_path)
-        dialog.backup_location = new_path
+        if os.path.basename(new_path) == 'qubes.xml':
+            dialog.backup_location = os.path.dirname(str(new_path))
+        else:
+            dialog.backup_location = str(new_path)
+        dialog.dir_line_edit.setText(dialog.backup_location)
 
     if (new_path or new_appvm) and len(dialog.backup_location) > 0:
         dialog.select_dir_page.emit(SIGNAL("completeChanged()"))
diff --git a/restoredlg.ui b/restoredlg.ui
index 8810bf4..5a0fc9f 100644
--- a/restoredlg.ui
+++ b/restoredlg.ui
@@ -78,6 +78,12 @@
     </item>
     <item row="0" column="0">
      <widget class="QGroupBox" name="groupBox_2">
+      <property name="minimumSize">
+       <size>
+        <width>0</width>
+        <height>132</height>
+       </size>
+      </property>
       <property name="font">
        <font>
         <weight>50</weight>
@@ -130,8 +136,20 @@
        </item>
        <item row="6" column="0">
         <widget class="QLabel" name="label_2">
+         <property name="minimumSize">
+          <size>
+           <width>0</width>
+           <height>41</height>
+          </size>
+         </property>
          <property name="text">
-          <string>Backup directory:</string>
+          <string>&lt;html&gt;&lt;head/&gt;&lt;body&gt;&lt;p&gt;Backup directory:&lt;br&gt;&lt;span style=&quot; font-size:8pt;&quot;&gt;(for old backup format select qubes.xml file)&lt;/span&gt;&lt;/p&gt;&lt;/body&gt;&lt;/html&gt;</string>
+         </property>
+         <property name="alignment">
+          <set>Qt::AlignLeading|Qt::AlignLeft|Qt::AlignTop</set>
+         </property>
+         <property name="wordWrap">
+          <bool>true</bool>
          </property>
         </widget>
        </item>