diff -ur deluge-1.3.5.orig/deluge/core/torrent.py deluge-1.3.5/deluge/core/torrent.py
--- deluge-1.3.5.orig/deluge/core/torrent.py	2012-08-25 20:31:43.399701313 +0200
+++ deluge-1.3.5/deluge/core/torrent.py	2012-08-25 20:32:26.911570173 +0200
@@ -851,7 +851,7 @@
                 log.error("Could not move storage for torrent %s since %s does not exist and could not create the directory.", self.torrent_id, dest_u)
                 return False
         try:
-            self.handle.move_storage(dest_u)
+            self.handle.move_storage(dest_u.encode("utf-8"))
         except:
             return False