diff --git a/src/insets/ChangeLog b/src/insets/ChangeLog
index 409f1c9edc..5d6f61a7d0 100644
--- a/src/insets/ChangeLog
+++ b/src/insets/ChangeLog
@@ -1,3 +1,9 @@
+2005-02-22  Georg Baum  <Georg.Baum@post.rwth-aachen.de>
+
+	* insetgraphics.C (prepareFile): handle non-existing files
+	* insetgraphics.C (latex): remove special handling of non-existing
+	files
+
 2005-02-22  Jürgen Spitzmüller  <j.spitzmueller@gmx.de>
 
 	* insetcharstyle.C: add TEXT_TO_INSET_OFFSET and adjust metrics.
diff --git a/src/insets/insetgraphics.C b/src/insets/insetgraphics.C
index 3a867e6020..e6d6bf4dbb 100644
--- a/src/insets/insetgraphics.C
+++ b/src/insets/insetgraphics.C
@@ -532,7 +532,10 @@ string const stripExtensionIfPossible(string const & file, string const & to)
 string const InsetGraphics::prepareFile(Buffer const & buf,
 					OutputParams const & runparams) const
 {
-	// We assume that the file exists (the caller checks this)
+	// The following code depends on non-empty filenames
+	if (params().filename.empty())
+		return string();
+
 	string const orig_file = params().filename.absFilename();
 	string const rel_file = params().filename.relFilename(buf.filePath());
 
@@ -549,6 +552,12 @@ string const InsetGraphics::prepareFile(Buffer const & buf,
 	// of include files
 	Buffer const * m_buffer = buf.getMasterBuffer();
 
+	// Return the output name if the file does not exist.
+	// We are not going to change the extension or using the name of the
+	// temporary file, the code is already complicated enough.
+	if (!IsFileReadable(orig_file))
+		return params().filename.outputFilename(m_buffer->filePath());
+
 	// We place all temporary files in the master buffer's temp dir.
 	// This is possible because we use mangled file names.
 	// This is necessary for DVI export.
@@ -731,15 +740,10 @@ int InsetGraphics::latex(Buffer const & buf, ostream & os,
 
 
 	string latex_str = before + '{';
-	if (file_exists)
-		// Convert the file if necessary.
-		// Remove the extension so the LaTeX will use whatever
-		// is appropriate (when there are several versions in
-		// different formats)
-		latex_str += prepareFile(buf, runparams);
-	else
-		latex_str += relative_file + " not found!";
-
+	// Convert the file if necessary.
+	// Remove the extension so LaTeX will use whatever is appropriate
+	// (when there are several versions in different formats)
+	latex_str += prepareFile(buf, runparams);
 	latex_str += '}' + after;
 	os << latex_str;