Index: paste/urlparser.py
===================================================================
--- paste/urlparser.py	(revision 5395)
+++ paste/urlparser.py	(working copy)
@@ -7,6 +7,7 @@
 import os
 import sys
 import imp
+import urllib
 import pkg_resources
 import mimetypes
 import request
@@ -425,7 +426,7 @@
             # @@: This should obviously be configurable
             filename = 'index.html'
         else:
-            filename = request.path_info_pop(environ)
+            filename = urllib.unquote(request.path_info_pop(environ))
         full = os.path.join(self.directory, filename)
         if not os.path.exists(full):
             return self.not_found(environ, start_response)