diff --git a/README.txt b/README.txt
index ded8b7a..85bf62e 100644
--- a/README.txt
+++ b/README.txt
@@ -354,7 +354,33 @@ environment variables which will be added to the service's environment.
 Each entry in the list should be of the form KEY=VALUE.  It is possible to
 omit the VALUE but the = symbol is mandatory.
 
-srvany only supports AppEnvironment.
+Environment variables listed in both AppEnvironment and AppEnvironmentExtra
+are subject to normal expansion, so it is possible, for example, to update the
+system path by setting "PATH=C:\bin;%PATH%" in AppEnvironmentExtra.  Variables
+are expanded in the order in which they appear, so if you want to include the
+value of one variable in another variable you should declare the dependency
+first.
+
+Because variables defined in AppEnvironment override the existing
+environment it is not possible to refer to any variables which were previously
+defined.
+
+For example, the following AppEnvironment block:
+
+      PATH=C:\Windows\System32;C:\Windows
+      PATH=C:\bin;%PATH%
+
+Would result in a PATH of "C:\bin;C:\Windows\System32;C:\Windows" as expected.
+
+Whereas the following AppEnvironment block:
+
+      PATH=C:\bin;%PATH%
+
+Would result in a path containing only C:\bin and probably cause the
+application to fail to start.
+
+Most people will want to use AppEnvironmentExtra exclusively.  srvany only
+supports AppEnvironment.
 
 
 Managing services using the GUI
diff --git a/registry.cpp b/registry.cpp
index 50f6dc3..bd79dc3 100644
--- a/registry.cpp
+++ b/registry.cpp
@@ -466,67 +466,6 @@ int get_parameters(nssm_service_t *service, STARTUPINFO *si) {
   /* Environment variables to add to existing rather than replace - may fail. */
   get_environment(service->name, key, NSSM_REG_ENV_EXTRA, &service->env_extra, &service->env_extralen);
 
-  if (si) {
-    if (service->env_extra) {
-      TCHAR *env;
-      unsigned long envlen;
-
-      /* Copy our environment for the application. */
-      if (! service->env) {
-        TCHAR *rawenv = GetEnvironmentStrings();
-        env = rawenv;
-        if (env) {
-          /*
-            The environment block starts with variables of the form
-            =C:=C:\Windows\System32 which we ignore.
-          */
-          while (*env == _T('=')) {
-            for ( ; *env; env++);
-            env++;
-          }
-          envlen = 0;
-          if (*env) {
-            while (true) {
-              for ( ; env[envlen]; envlen++);
-              if (! env[++envlen]) break;
-            }
-            envlen++;
-
-            service->envlen = envlen * sizeof(TCHAR);
-            service->env = (TCHAR *) HeapAlloc(GetProcessHeap(), 0, service->envlen);
-            memmove(service->env, env, service->envlen);
-            FreeEnvironmentStrings(rawenv);
-          }
-        }
-      }
-
-      /* Append extra variables to configured variables. */
-      if (service->env) {
-        envlen = service->envlen + service->env_extralen - sizeof(TCHAR)/*?*/;
-        env = (TCHAR *) HeapAlloc(GetProcessHeap(), 0, envlen);
-        if (env) {
-          memmove(env, service->env, service->envlen - sizeof(TCHAR));
-          /* envlen is in bytes but env[i] is in characters. */
-          memmove(env + (service->envlen / sizeof(TCHAR)) - 1, service->env_extra, service->env_extralen);
-
-          HeapFree(GetProcessHeap(), 0, service->env);
-          HeapFree(GetProcessHeap(), 0, service->env_extra);
-          service->env = env;
-          service->envlen = envlen;
-        }
-        else log_event(EVENTLOG_ERROR_TYPE, NSSM_EVENT_OUT_OF_MEMORY, _T("environment"), _T("get_parameters()"), 0);
-      }
-      else {
-        /* Huh?  No environment at all? */
-        service->env = service->env_extra;
-        service->envlen = service->env_extralen;
-      }
-    }
-
-    service->env_extra = 0;
-    service->env_extralen = 0;
-  }
-
   /* Try to get priority - may fail. */
   unsigned long priority;
   if (get_number(key, NSSM_REG_PRIORITY, &priority, false) == 1) {
diff --git a/service.cpp b/service.cpp
index c920af8..ee60c10 100644
--- a/service.cpp
+++ b/service.cpp
@@ -681,6 +681,7 @@ void cleanup_nssm_service(nssm_service_t *service) {
   if (service->wait_handle) UnregisterWait(service->process_handle);
   if (service->throttle_section_initialised) DeleteCriticalSection(&service->throttle_section);
   if (service->throttle_timer) CloseHandle(service->throttle_timer);
+  if (service->initial_env) FreeEnvironmentStrings(service->initial_env);
   HeapFree(GetProcessHeap(), 0, service);
 }
 
@@ -1324,6 +1325,9 @@ void WINAPI service_main(unsigned long argc, TCHAR **argv) {
     }
   }
 
+  /* Remember our initial environment. */
+  service->initial_env = GetEnvironmentStrings();
+
   monitor_service(service);
 }
 
@@ -1519,23 +1523,21 @@ int start_service(nssm_service_t *service) {
 
   throttle_restart(service);
 
+  /* Set the environment. */
+  if (service->env) duplicate_environment(service->env);
+  if (service->env_extra) set_environment_block(service->env_extra);
+
   bool inherit_handles = false;
   if (si.dwFlags & STARTF_USESTDHANDLES) inherit_handles = true;
   unsigned long flags = service->priority & priority_mask();
   if (service->stdin_pipe) flags |= DETACHED_PROCESS;
   if (service->affinity) flags |= CREATE_SUSPENDED;
-#ifdef UNICODE
-  flags |= CREATE_UNICODE_ENVIRONMENT;
-#endif
-  if (! CreateProcess(0, cmd, 0, 0, inherit_handles, flags, service->env, service->dir, &si, &pi)) {
+  if (! CreateProcess(0, cmd, 0, 0, inherit_handles, flags, 0, service->dir, &si, &pi)) {
     unsigned long exitcode = 3;
     unsigned long error = GetLastError();
-    if (error == ERROR_INVALID_PARAMETER && service->env) {
-      log_event(EVENTLOG_ERROR_TYPE, NSSM_EVENT_CREATEPROCESS_FAILED_INVALID_ENVIRONMENT, service->name, service->exe, NSSM_REG_ENV, 0);
-      if (test_environment(service->env)) exitcode = 4;
-    }
-    else log_event(EVENTLOG_ERROR_TYPE, NSSM_EVENT_CREATEPROCESS_FAILED, service->name, service->exe, error_string(error), 0);
+    log_event(EVENTLOG_ERROR_TYPE, NSSM_EVENT_CREATEPROCESS_FAILED, service->name, service->exe, error_string(error), 0);
     close_output_handles(&si);
+    duplicate_environment(service->initial_env);
     return stop_service(service, exitcode, true, true);
   }
   service->process_handle = pi.hProcess;
@@ -1545,6 +1547,9 @@ int start_service(nssm_service_t *service) {
 
   close_output_handles(&si);
 
+  /* Restore our environment. */
+  duplicate_environment(service->initial_env);
+
   if (service->affinity) {
     /*
       We are explicitly storing service->affinity as a 64-bit unsigned integer
diff --git a/service.h b/service.h
index 2eb2b42..fe59c9a 100644
--- a/service.h
+++ b/service.h
@@ -101,6 +101,7 @@ typedef struct {
   LARGE_INTEGER throttle_duetime;
   FILETIME creation_time;
   FILETIME exit_time;
+  TCHAR *initial_env;
 } nssm_service_t;
 
 void WINAPI service_main(unsigned long, TCHAR **);