diff --git a/programs/expand/Makefile.in b/programs/expand/Makefile.in
index ac35d435846..7e4f98250c6 100644
--- a/programs/expand/Makefile.in
+++ b/programs/expand/Makefile.in
@@ -4,7 +4,7 @@ SRCDIR    = @srcdir@
 VPATH     = @srcdir@
 MODULE    = expand.exe
 APPMODE   = -mconsole
-IMPORTS   = lz32 kernel32
+IMPORTS   = setupapi kernel32
 
 C_SRCS = expand.c
 
diff --git a/programs/expand/expand.c b/programs/expand/expand.c
index 9f2af8e619f..6022fe2de98 100644
--- a/programs/expand/expand.c
+++ b/programs/expand/expand.c
@@ -1,6 +1,7 @@
 /*
  * Copyright 1997 Victor Schneider
  * Copyright 2002 Alexandre Julliard
+ * Copyright 2007 Hans Leidekker
  *
  * This library is free software; you can redistribute it and/or
  * modify it under the terms of the GNU Lesser General Public
@@ -23,30 +24,100 @@
 #include <string.h>
 #include <windows.h>
 #include <lzexpand.h>
+#include <setupapi.h>
+
+static UINT CALLBACK extract_callback( PVOID context, UINT notification, UINT_PTR param1, UINT_PTR param2 )
+{
+    FILE_IN_CABINET_INFO_A *info = (FILE_IN_CABINET_INFO_A *)param1;
+
+    switch (notification)
+    {
+    case SPFILENOTIFY_FILEINCABINET:
+    {
+        LPCSTR targetname = context;
+
+        strcpy( info->FullTargetName, targetname );
+        return FILEOP_DOIT;
+    }
+    default: return NO_ERROR;
+    }
+}
 
 int main(int argc, char *argv[])
 {
-  OFSTRUCT SourceOpenStruct1, SourceOpenStruct2;
-  LONG ret;
-  HFILE hSourceFile, hDestFile;
+    int ret = 0;
+    char infile[MAX_PATH], outfile[MAX_PATH], actual_name[MAX_PATH];
+    UINT comp;
 
-  if (argc < 2)
-  {
-      fprintf( stderr, "Usage: %s infile [outfile]\n", argv[0] );
-      return 1;
-  }
-  hSourceFile = LZOpenFile(argv[1], &SourceOpenStruct1, OF_READ);
-  if (argv[2])
-      hDestFile = LZOpenFile(argv[2], &SourceOpenStruct2, OF_CREATE | OF_WRITE);
-  else
-  {
-      char OriginalName[MAX_PATH];
-      GetExpandedName(argv[1], OriginalName);
-      hDestFile = LZOpenFile(OriginalName, &SourceOpenStruct2, OF_CREATE | OF_WRITE);
-  }
-  ret = LZCopy(hSourceFile, hDestFile);
-  LZClose(hSourceFile);
-  LZClose(hDestFile);
-  if (ret <= 0) fprintf(stderr,"LZCopy failed: return is %d\n",ret);
-  return (ret <= 0);
+    if (argc < 3)
+    {
+        fprintf( stderr, "Usage: %s infile outfile\n", argv[0] );
+        return 1;
+    }
+
+    GetFullPathNameA( argv[1], sizeof(infile), infile, NULL );
+    GetFullPathNameA( argv[2], sizeof(outfile), outfile, NULL );
+
+    if (!lstrcmpiA( infile, outfile ))
+    {
+        fprintf( stderr, "%s: can't expand file to itself\n", argv[0] );
+        return 1;
+    }
+    if (!SetupGetFileCompressionInfoExA( infile, actual_name, sizeof(actual_name), NULL, NULL, NULL, &comp ))
+    {
+        fprintf( stderr, "%s: can't open input file %s\n", argv[0], infile );
+        return 1;
+    }
+
+    switch (comp)
+    {
+    case FILE_COMPRESSION_MSZIP:
+    {
+        if (!SetupIterateCabinetA( infile, 0, extract_callback, (PVOID)outfile ))
+        {
+            fprintf( stderr, "%s: cabinet extraction failed\n", argv[0] );
+            return 1;
+        }
+        break;
+    }
+    case FILE_COMPRESSION_WINLZA:
+    {
+        INT hin, hout;
+        OFSTRUCT ofin, ofout;
+        LONG error;
+
+        if ((hin = LZOpenFile( infile, &ofin, OF_READ )) < 0)
+        {
+            fprintf( stderr, "%s: can't open input file %s\n", argv[0], infile );
+            return 1;
+        }
+        if ((hout = LZOpenFile( outfile, &ofout, OF_CREATE | OF_WRITE )) < 0)
+        {
+            LZClose( hin );
+            fprintf( stderr, "%s: can't open output file %s\n", argv[0], outfile );
+            return 1;
+        }
+        error = LZCopy( hin, hout );
+
+        LZClose( hin );
+        LZClose( hout );
+
+        if (error < 0)
+        {
+            fprintf( stderr, "%s: LZCopy failed, error is %d\n", argv[0], error );
+            return 1;
+        }
+        break;
+    }
+    default:
+    {
+        if (!CopyFileA( infile, outfile, FALSE ))
+        {
+            fprintf( stderr, "%s: CopyFileA failed\n", argv[0] );
+            return 1;
+        }
+        break;
+    }
+    }
+    return ret;
 }