diff --git a/dlls/kernel/process.c b/dlls/kernel/process.c
index c81ba03947e..5a7678daf5d 100644
--- a/dlls/kernel/process.c
+++ b/dlls/kernel/process.c
@@ -1481,14 +1481,8 @@ static BOOL create_process( HANDLE hFile, LPCWSTR filename, LPWSTR cmd_line, LPW
         if (winedebug) putenv( winedebug );
         if (unixdir) chdir(unixdir);
 
-        if (argv)
-        {
-            /* first, try for a WINELOADER environment variable */
-            const char *loader = getenv("WINELOADER");
-            if (loader) wine_exec_wine_binary( loader, argv, NULL, TRUE );
-            /* now use the standard search strategy */
-            wine_exec_wine_binary( NULL, argv, NULL, TRUE );
-        }
+        if (argv) wine_exec_wine_binary( NULL, argv, getenv("WINELOADER") );
+
         err = errno;
         write( execfd[1], &err, sizeof(err) );
         _exit(1);
diff --git a/dlls/ntdll/server.c b/dlls/ntdll/server.c
index 88c00156fa6..dd9baeb7d23 100644
--- a/dlls/ntdll/server.c
+++ b/dlls/ntdll/server.c
@@ -589,7 +589,6 @@ void wine_server_release_fd( obj_handle_t handle, int unix_fd )
 static void start_server( const char *oldcwd )
 {
     static int started;  /* we only try once */
-    char *path, *p;
     char *argv[3];
 
     if (!started)
@@ -602,22 +601,7 @@ static void start_server( const char *oldcwd )
             argv[0] = "wineserver";
             argv[1] = TRACE_ON(server) ? "-d" : NULL;
             argv[2] = NULL;
-            /* if server is explicitly specified, use this */
-            if ((p = getenv("WINESERVER")))
-            {
-                if (p[0] != '/' && oldcwd[0] == '/')  /* make it an absolute path */
-                {
-                    if (!(path = malloc( strlen(oldcwd) + strlen(p) + 1 )))
-                        fatal_error( "out of memory\n" );
-                    sprintf( path, "%s/%s", oldcwd, p );
-                    p = path;
-                }
-                wine_exec_wine_binary( p, argv, NULL, FALSE );
-                fatal_perror( "could not exec the server '%s'\n"
-                              "    specified in the WINESERVER environment variable", p );
-            }
-            /* now use the standard search strategy */
-            wine_exec_wine_binary( argv[0], argv, NULL, FALSE );
+            wine_exec_wine_binary( argv[0], argv, getenv("WINESERVER") );
             fatal_error( "could not exec wineserver\n" );
         }
         waitpid( pid, &status, 0 );
@@ -809,7 +793,7 @@ static void create_config_dir(void)
         argv[3] = "--prefix";
         argv[4] = tmp_dir;
         argv[5] = NULL;
-        wine_exec_wine_binary( argv[0], (char **)argv, NULL, FALSE );
+        wine_exec_wine_binary( argv[0], (char **)argv, NULL );
         rmdir( tmp_dir );
         fatal_perror( "could not exec wineprefixcreate" );
     }
diff --git a/include/wine/library.h b/include/wine/library.h
index aa689c022d2..e92262c3f0b 100644
--- a/include/wine/library.h
+++ b/include/wine/library.h
@@ -33,7 +33,7 @@ extern const char *wine_get_config_dir(void);
 extern const char *wine_get_server_dir(void);
 extern const char *wine_get_user_name(void);
 extern void wine_init_argv0_path( const char *argv0 );
-extern void wine_exec_wine_binary( const char *name, char **argv, char **envp, int use_preloader );
+extern void wine_exec_wine_binary( const char *name, char **argv, const char *env_var );
 
 /* dll loading */
 
diff --git a/libs/wine/config.c b/libs/wine/config.c
index e2bdc5abc6b..77dbb5d90fb 100644
--- a/libs/wine/config.c
+++ b/libs/wine/config.c
@@ -375,7 +375,7 @@ const char *wine_get_user_name(void)
 }
 
 /* exec a binary using the preloader if requested; helper for wine_exec_wine_binary */
-static void preloader_exec( char **argv, char **envp, int use_preloader )
+static void preloader_exec( char **argv, int use_preloader )
 {
 #ifdef linux
     if (use_preloader)
@@ -396,36 +396,40 @@ static void preloader_exec( char **argv, char **envp, int use_preloader )
         new_argv = xmalloc( (last_arg - argv + 2) * sizeof(*argv) );
         memcpy( new_argv + 1, argv, (last_arg - argv + 1) * sizeof(*argv) );
         new_argv[0] = full_name;
-        if (envp) execve( full_name, new_argv, envp );
-        else execv( full_name, new_argv );
+        execv( full_name, new_argv );
         free( new_argv );
         free( full_name );
         return;
     }
 #endif
-    if (envp) execve( argv[0], argv, envp );
-    else execv( argv[0], argv );
+    execv( argv[0], argv );
 }
 
 /* exec a wine internal binary (either the wine loader or the wine server) */
-void wine_exec_wine_binary( const char *name, char **argv, char **envp, int use_preloader )
+void wine_exec_wine_binary( const char *name, char **argv, const char *env_var )
 {
     static const char bindir[] = BINDIR;
     const char *path, *pos, *ptr;
+    int use_preloader = 0;
 
-    if (name && strchr( name, '/' ))
+    if (!name)  /* no name means default loader */
     {
-        argv[0] = (char *)name;
-        preloader_exec( argv, envp, use_preloader );
-        return;
+        name = argv0_name;
+        use_preloader = 1;
     }
-    else if (!name) name = argv0_name;
 
     /* first, bin directory from the current libdir or argv0 */
     argv[0] = get_path_from_libdir( bindir, argv0_path, name );
-    preloader_exec( argv, envp, use_preloader );
+    preloader_exec( argv, use_preloader );
     free( argv[0] );
 
+    /* then specified environment variable */
+    if (env_var)
+    {
+        argv[0] = (char *)env_var;
+        preloader_exec( argv, use_preloader );
+    }
+
     /* now search in the Unix path */
     if ((path = getenv( "PATH" )))
     {
@@ -439,7 +443,7 @@ void wine_exec_wine_binary( const char *name, char **argv, char **envp, int use_
             memcpy( argv[0], pos, ptr - pos );
             strcpy( argv[0] + (ptr - pos), "/" );
             strcat( argv[0] + (ptr - pos), name );
-            preloader_exec( argv, envp, use_preloader );
+            preloader_exec( argv, use_preloader );
             pos = ptr;
         }
         free( argv[0] );
@@ -450,5 +454,5 @@ void wine_exec_wine_binary( const char *name, char **argv, char **envp, int use_
     strcpy( argv[0], bindir );
     strcat( argv[0], "/" );
     strcat( argv[0], name );
-    preloader_exec( argv, envp, use_preloader );
+    preloader_exec( argv, use_preloader );
 }
diff --git a/loader/glibc.c b/loader/glibc.c
index 0cdf4089e7f..4d15d5c76b6 100644
--- a/loader/glibc.c
+++ b/loader/glibc.c
@@ -67,6 +67,19 @@ static const char *get_threading(void)
     return ret ? "wine-pthread" : "wine-kthread";
 }
 
+/* build a new full path from the specified path and name */
+static const char *build_new_path( const char *path, const char *name )
+{
+    const char *p;
+    char *ret;
+
+    if (!(p = strrchr( path, '/' ))) return name;
+    p++;
+    ret = xmalloc( (p - path) + strlen(name) + 1 );
+    memcpy( ret, path, p - path );
+    strcpy( ret + (p - path), name );
+    return ret;
+}
 
 /**********************************************************************
  *           main
@@ -75,31 +88,22 @@ int main( int argc, char *argv[] )
 {
     const char *loader = getenv( "WINELOADER" );
     const char *threads = get_threading();
+    const char *new_argv0 = build_new_path( argv[0], threads );
+
+    wine_init_argv0_path( new_argv0 );
 
     if (loader)
     {
-        const char *path;
-        char *new_name, *new_loader;
-
-        if ((path = strrchr( loader, '/' ))) path++;
-        else path = loader;
-
-        new_name = xmalloc( (path - loader) + strlen(threads) + 1 );
-        memcpy( new_name, loader, path - loader );
-        strcpy( new_name + (path - loader), threads );
-
         /* update WINELOADER with the new name */
-        new_loader = xmalloc( sizeof("WINELOADER=") + strlen(new_name) );
+        const char *new_name = build_new_path( loader, threads );
+        char *new_loader = xmalloc( sizeof("WINELOADER=") + strlen(new_name) );
         strcpy( new_loader, "WINELOADER=" );
         strcat( new_loader, new_name );
         putenv( new_loader );
-        wine_exec_wine_binary( new_name, argv, NULL, TRUE );
+        loader = new_name;
     }
-    else
-    {
-        wine_init_argv0_path( argv[0] );
-        wine_exec_wine_binary( threads, argv, NULL, TRUE );
-    }
-    fprintf( stderr, "wine: could not exec %s\n", argv[0] );
+
+    wine_exec_wine_binary( NULL, argv, loader );
+    fprintf( stderr, "wine: could not exec %s\n", threads );
     exit(1);
 }