diff --git a/reactos/lib/shell32/shfldr_fs.c b/reactos/lib/shell32/shfldr_fs.c
index ec48409e31a..2499383400c 100644
--- a/reactos/lib/shell32/shfldr_fs.c
+++ b/reactos/lib/shell32/shfldr_fs.c
@@ -325,7 +325,7 @@ IShellFolder_fnParseDisplayName (IShellFolder2 * iface,
 {
     _ICOM_THIS_From_IShellFolder2 (IGenericSFImpl, iface)
 
-    HRESULT hr = E_OUTOFMEMORY;
+    HRESULT hr = E_INVALIDARG;
     LPCWSTR szNext = NULL;
     WCHAR szElement[MAX_PATH];
     CHAR szPath[MAX_PATH];
diff --git a/reactos/lib/shell32/shfldr_mycomp.c b/reactos/lib/shell32/shfldr_mycomp.c
index c3fb8726a4e..c37402a7f21 100644
--- a/reactos/lib/shell32/shfldr_mycomp.c
+++ b/reactos/lib/shell32/shfldr_mycomp.c
@@ -191,7 +191,7 @@ ISF_MyComputer_fnParseDisplayName (IShellFolder2 * iface,
 {
     ICOM_THIS (IGenericSFImpl, iface);
 
-    HRESULT hr = E_OUTOFMEMORY;
+    HRESULT hr = E_INVALIDARG;
     LPCWSTR szNext = NULL;
     WCHAR szElement[MAX_PATH];
     CHAR szTempA[MAX_PATH];
diff --git a/reactos/lib/shell32/shlfolder.c b/reactos/lib/shell32/shlfolder.c
index 15f392df471..1fff0fa97cd 100644
--- a/reactos/lib/shell32/shlfolder.c
+++ b/reactos/lib/shell32/shlfolder.c
@@ -108,7 +108,7 @@ LPCWSTR GetNextElementW (LPCWSTR pszNext, LPWSTR pszOut, DWORD dwOut)
 HRESULT SHELL32_ParseNextElement (IShellFolder2 * psf, HWND hwndOwner, LPBC pbc,
 				  LPITEMIDLIST * pidlInOut, LPOLESTR szNext, DWORD * pEaten, DWORD * pdwAttributes)
 {
-    HRESULT hr = E_OUTOFMEMORY;
+    HRESULT hr = E_INVALIDARG;
     LPITEMIDLIST pidlOut = NULL,
       pidlTemp = NULL;
     IShellFolder *psfChild;
@@ -124,6 +124,9 @@ HRESULT SHELL32_ParseNextElement (IShellFolder2 * psf, HWND hwndOwner, LPBC pbc,
 
 	pidlTemp = ILCombine (*pidlInOut, pidlOut);
 
+	if (!pidlTemp)
+	    hr = E_OUTOFMEMORY;
+
 	if (pidlOut)
 	    ILFree (pidlOut);
     }
@@ -159,6 +162,9 @@ HRESULT SHELL32_CoCreateInitSF (LPCITEMIDLIST pidlRoot,
 	    IPersistFolder_Initialize (pPF, pidlAbsolute);
 	    IPersistFolder_Release (pPF);
 	    SHFree (pidlAbsolute);
+
+	    if (!pidlAbsolute)
+		hr = E_OUTOFMEMORY;
 	}
     }
 
@@ -293,7 +299,7 @@ HRESULT SHELL32_GetDisplayNameOfChild (IShellFolder2 * psf,
 				       LPCITEMIDLIST pidl, DWORD dwFlags, LPSTR szOut, DWORD dwOutLen)
 {
     LPITEMIDLIST pidlFirst;
-    HRESULT hr = E_OUTOFMEMORY;
+    HRESULT hr = E_INVALIDARG;
 
     TRACE ("(%p)->(pidl=%p 0x%08lx %p 0x%08lx)\n", psf, pidl, dwFlags, szOut, dwOutLen);
     pdump (pidl);
@@ -314,7 +320,8 @@ HRESULT SHELL32_GetDisplayNameOfChild (IShellFolder2 * psf,
 	    IShellFolder_Release (psfChild);
 	}
 	ILFree (pidlFirst);
-    }
+    } else
+	hr = E_OUTOFMEMORY;
 
     TRACE ("-- ret=0x%08lx %s\n", hr, szOut);