diff --git a/reactos/subsys/system/explorer/explorer.cpp b/reactos/subsys/system/explorer/explorer.cpp
index e415bb2eeb7..fb55a7c808c 100644
--- a/reactos/subsys/system/explorer/explorer.cpp
+++ b/reactos/subsys/system/explorer/explorer.cpp
@@ -82,8 +82,13 @@ void ExplorerGlobals::read_persistent()
 	_cfg_dir.printf(TEXT("%s\\ReactOS"), (LPCTSTR)SpecialFolderFSPath(CSIDL_APPDATA,0));
 	_cfg_path.printf(TEXT("%s\\ros-explorer-cfg.xml"), _cfg_dir.c_str());
 
-	if (!_cfg.read(_cfg_path))
+	if (!_cfg.read(_cfg_path)) {
+		if (_cfg._last_error != XML_ERROR_NO_ELEMENTS)
+			MessageBox(g_Globals._hwndDesktop, String(_cfg._last_error_msg.c_str()),
+						TEXT("ROS Explorer - reading user settings"), MB_OK);
+
 		_cfg.read(TEXT("explorer-cfg-template.xml"));
+	}
 
 	 // read bookmarks
 	_favorites_path.printf(TEXT("%s\\ros-explorer-bookmarks.xml"), _cfg_dir.c_str());
diff --git a/reactos/subsys/system/explorer/taskbar/favorites.cpp b/reactos/subsys/system/explorer/taskbar/favorites.cpp
index 330cad2a9ad..c10af859cfb 100644
--- a/reactos/subsys/system/explorer/taskbar/favorites.cpp
+++ b/reactos/subsys/system/explorer/taskbar/favorites.cpp
@@ -427,7 +427,11 @@ bool Favorites::read(LPCTSTR path)
 	XMLDoc xbel;
 
 	if (!xbel.read(path))
-		return false;
+		if (xbel._last_error == XML_ERROR_NO_ELEMENTS)
+			return false;
+		else
+			MessageBox(g_Globals._hwndDesktop, String(xbel._last_error_msg.c_str()),
+						TEXT("ROS Explorer - reading bookmark file"), MB_OK);
 
 	const_XMLPos pos(&xbel);
 
diff --git a/reactos/subsys/system/explorer/utility/xmlstorage.h b/reactos/subsys/system/explorer/utility/xmlstorage.h
index 7af85de3a07..910f8bb3b3e 100644
--- a/reactos/subsys/system/explorer/utility/xmlstorage.h
+++ b/reactos/subsys/system/explorer/utility/xmlstorage.h
@@ -1232,6 +1232,7 @@ struct XMLReader
 		return out.str();
 	}
 
+	XML_Error	get_error_code() {return XML_GetErrorCode(_parser);}
 	std::string get_error_string() const;
 
 protected:
@@ -1276,12 +1277,14 @@ struct XMLHeader : public std::string
 struct XMLDoc : public XMLNode
 {
 	XMLDoc()
-	 :	XMLNode("")
+	 :	XMLNode(""),
+		_last_error(XML_ERROR_NONE)
 	{
 	}
 
 	XMLDoc(LPCTSTR path)
-	 :	XMLNode("")
+	 :	XMLNode(""),
+		_last_error(XML_ERROR_NONE)
 	{
 		read(path);
 	}
@@ -1297,7 +1300,8 @@ struct XMLDoc : public XMLNode
 
 			out << reader.get_position() << " " << reader.get_error_string();
 
-			_last_error = out.str();
+			_last_error = reader.get_error_code();
+			_last_error_msg = out.str();
 		}
 
 		return in;
@@ -1315,7 +1319,8 @@ struct XMLDoc : public XMLNode
 
 			out << path << reader.get_position() << " " << reader.get_error_string();
 
-			_last_error = out.str();
+			_last_error = reader.get_error_code();
+			_last_error_msg = out.str();
 		}
 
 		return status != XML_STATUS_ERROR;
@@ -1352,7 +1357,8 @@ struct XMLDoc : public XMLNode
 		write_formating(out);
 	}
 
-	std::string	_last_error;
+	XML_Error	_last_error;
+	std::string	_last_error_msg;
 };