diff --git a/beets/util/confit.py b/beets/util/confit.py
index e5e48ec4a..c9051de53 100644
--- a/beets/util/confit.py
+++ b/beets/util/confit.py
@@ -1077,16 +1077,21 @@ class StrSeq(Template):
                 return value.split()
             else:
                 return [value]
-        else:
-            try:
-                value = list(value)
-            except TypeError:
-                self.fail('must be a whitespace-separated string or a list',
-                          view, True)
-            if all(isinstance(x, BASESTRING) for x in value):
-                return value
+
+        try:
+            value = list(value)
+        except TypeError:
+            self.fail('must be a whitespace-separated string or a list',
+                      view, True)
+
+        def convert(x):
+            if isinstance(x, unicode):
+                return x
+            elif isinstance(x, BASESTRING):
+                return x.decode('utf8', 'ignore')
             else:
                 self.fail('must be a list of strings', view, True)
+        return map(convert, value)
 
 
 class Filename(Template):
diff --git a/beetsplug/fetchart.py b/beetsplug/fetchart.py
index 632982edc..1474a7b09 100644
--- a/beetsplug/fetchart.py
+++ b/beetsplug/fetchart.py
@@ -234,6 +234,7 @@ def art_for_album(album, paths, maxwidth=None, local_only=False):
 
     # Local art.
     cover_names = config['fetchart']['cover_names'].as_str_seq()
+    cover_names = map(util.bytestring_path, cover_names)
     cautious = config['fetchart']['cautious'].get(bool)
     if paths:
         for path in paths:
diff --git a/test/helper.py b/test/helper.py
index cf2a67ad0..0688708fd 100644
--- a/test/helper.py
+++ b/test/helper.py
@@ -241,17 +241,27 @@ class TestHelper(object):
         includes a counter to make sure we do not create items with the
         same attributes.
         """
+        item_count = self._get_item_count()
         values = {
-            'title': u't\u00eftle {0}'.format(self._get_item_count()),
+            'title': u't\u00eftle {0}',
             'artist': u'the \u00e4rtist',
             'album': u'the \u00e4lbum',
+            'track': item_count,
+            'path': 'audio.mp3',
         }
         values.update(values_)
+        values['title'] = values['title'].format(item_count)
         item = Item(**values)
-        if hasattr(self, 'lib'):
-            item.add(self.lib)
+        item.add(self.lib)
+        if 'path' not in values_:
+            item['path'] = item.destination()
+            item.store()
         return item
 
+    def add_album(self, **values):
+        item = self.add_item(**values)
+        return self.lib.add_album([item])
+
     def add_item_fixtures(self, ext='mp3', count=1):
         """Add a number of items with files to the database.
         """
diff --git a/test/test_fetchart.py b/test/test_fetchart.py
new file mode 100644
index 000000000..5e36f9145
--- /dev/null
+++ b/test/test_fetchart.py
@@ -0,0 +1,49 @@
+# This file is part of beets.
+# Copyright 2014, Thomas Scholtes.
+#
+# Permission is hereby granted, free of charge, to any person obtaining
+# a copy of this software and associated documentation files (the
+# "Software"), to deal in the Software without restriction, including
+# without limitation the rights to use, copy, modify, merge, publish,
+# distribute, sublicense, and/or sell copies of the Software, and to
+# permit persons to whom the Software is furnished to do so, subject to
+# the following conditions:
+#
+# The above copyright notice and this permission notice shall be
+# included in all copies or substantial portions of the Software.
+
+import os.path
+from _common import unittest
+from helper import TestHelper
+
+
+class FetchartCliTest(unittest.TestCase, TestHelper):
+
+    def setUp(self):
+        self.setup_beets()
+        self.load_plugins('fetchart')
+
+    def tearDown(self):
+        self.unload_plugins()
+        self.teardown_beets()
+
+    def test_set_art_from_folder(self):
+        self.config['fetchart']['cover_names'] = 'c\xc3\xb6ver.jpg'
+        self.config['art_filename'] = 'mycover'
+        album = self.add_album()
+        self.touch('c\xc3\xb6ver.jpg', dir=album.path, content='IMAGE')
+
+        self.run_command('fetchart')
+        cover_path = os.path.join(album.path, 'mycover.jpg')
+
+        album.load()
+        self.assertEqual(album['artpath'], cover_path)
+        with open(cover_path, 'r') as f:
+            self.assertEqual(f.read(), 'IMAGE')
+
+
+def suite():
+    return unittest.TestLoader().loadTestsFromName(__name__)
+
+if __name__ == '__main__':
+    unittest.main(defaultTest='suite')