diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3b3974ea0..b0ac012f5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -79,6 +79,7 @@ IMPROVEMENTS / BUG FIXES:
     using SCP to upload files. [GH-924]
   - Box adding doesn't use `/tmp` anymore which can avoid some cross-device
     copy issues. [GH-1199]
+  - Vagrant works properly in folders with strange characters. [GH-1223]
 
 ## 1.0.6 (December 21, 2012)
 
diff --git a/plugins/providers/virtualbox/action/default_name.rb b/plugins/providers/virtualbox/action/default_name.rb
index 9ef89cf70..f1b0565dd 100644
--- a/plugins/providers/virtualbox/action/default_name.rb
+++ b/plugins/providers/virtualbox/action/default_name.rb
@@ -10,8 +10,12 @@ module VagrantPlugins
         end
 
         def call(env)
-          @logger.info("Setting the default name of the VM")
-          name = env[:root_path].basename.to_s + "_#{Time.now.to_i}"
+          # Figure out the name and sanitize the default
+          prefix = env[:root_path].basename.to_s
+          prefix.gsub!(/[^-a-z0-9_]/i, "")
+          name = prefix + "_#{Time.now.to_i}"
+          @logger.info("Setting the default name of the VM: #{name}")
+
           env[:machine].provider.driver.set_name(name)
 
           @app.call(env)