diff --git a/src/net/java/sip/communicator/impl/configuration/ConfigurationServiceImpl.java b/src/net/java/sip/communicator/impl/configuration/ConfigurationServiceImpl.java
index fe493e1a8..dfaff607d 100644
--- a/src/net/java/sip/communicator/impl/configuration/ConfigurationServiceImpl.java
+++ b/src/net/java/sip/communicator/impl/configuration/ConfigurationServiceImpl.java
@@ -552,7 +552,7 @@ private File getConfigurationFile()
                 if (!(this.store instanceof XMLConfigurationStore))
                     this.store = new XMLConfigurationStore();
             }
-            else if (configurationFile.exists())
+            else
             {
                 String name = configurationFile.getName();
                 int extensionBeginIndex = name.lastIndexOf('.');
@@ -583,21 +583,26 @@ else if (configurationFile.exists())
                         if (!(this.store instanceof PropertyConfigurationStore))
                             this.store = new PropertyConfigurationStore();
                     }
+                    else if (!configurationFile.exists()
+                            && (getSystemProperty(PNAME_CONFIGURATION_FILE_NAME)
+                                    == null))
+                    {
+                        this.configurationFile
+                                = getConfigurationFile("properties", true);
+                        if (!(this.store instanceof PropertyConfigurationStore))
+                            this.store = new PropertyConfigurationStore();
+                    }
                     else
                     {
-                        this.configurationFile = configurationFile;
+                        this.configurationFile =
+                                configurationFile.exists()
+                                    ? configurationFile
+                                    : getConfigurationFile("xml", true);
                         if (!(this.store instanceof XMLConfigurationStore))
                             this.store = new XMLConfigurationStore();
                     }
                 }
             }
-            else
-            {
-                this.configurationFile
-                        = getConfigurationFile("properties", true);
-                if (!(this.store instanceof PropertyConfigurationStore))
-                    this.store = new PropertyConfigurationStore();
-            }
 
             /*
              * Make sure that the properties SC_HOME_DIR_LOCATION and
@@ -914,6 +919,9 @@ public void purgeStoredConfiguration()
             configurationFile.delete();
             configurationFile = null;
         }
+        if (store != null)
+            for (String name : store.getPropertyNames())
+                store.removeProperty(name);
     }
 
     /**
diff --git a/test/net/java/sip/communicator/slick/configuration/TestConfigurationSlickFinalizer.java b/test/net/java/sip/communicator/slick/configuration/TestConfigurationSlickFinalizer.java
index 65f52d62e..e9505a267 100644
--- a/test/net/java/sip/communicator/slick/configuration/TestConfigurationSlickFinalizer.java
+++ b/test/net/java/sip/communicator/slick/configuration/TestConfigurationSlickFinalizer.java
@@ -6,10 +6,13 @@
  */
 package net.java.sip.communicator.slick.configuration;
 
-import org.osgi.framework.*;
+import java.util.*;
+
 import junit.framework.*;
 import net.java.sip.communicator.service.configuration.*;
 
+import org.osgi.framework.*;
+
 /**
  * Performs finalization tasks (such as removing the configuration file) at the
  * end of the ConfigurationServiceLick.
@@ -42,5 +45,11 @@ public void testPurgeConfiguration()
 
         configurationService.purgeStoredConfiguration();
 
+        List<String> propertyNames
+            = configurationService.getPropertyNamesByPrefix("", false);
+
+        assertTrue(
+            "The configuration service contains properties after purging.",
+            (propertyNames == null) || (propertyNames.size() <= 0));
     }
 }