diff --git a/etc/init.d/zfs-functions.in b/etc/init.d/zfs-functions.in
index 372bae8037fe..1d90f9ae676f 100644
--- a/etc/init.d/zfs-functions.in
+++ b/etc/init.d/zfs-functions.in
@@ -304,17 +304,33 @@ checksystem()
 	return 0
 }
 
+# Originated in commit f5ef7150ead1f6234e18eb3bda0299f34209bbb8 by Rudd-O.
+# This function is called from zfs-mount when (if!) /etc/mtab is NOT a
+# link to /proc/mounts (which it should be).
+# The function will update /etc/mtab with any mounts missing in that file,
+# but exists in /proc/mounts.
 reregister_mounts()
 {
-	local fs mntpnt fstype opts rest tmpdir
+	local fs mntpnt fstype opts rest tmpdir mountpoint MNT_CMD
 	tmpdir=removethismountpointhoweverpossible
 
 	while read -r fs mntpnt fstype opts rest ; do
-		fs=$(printf '%b\n' "$fs")
+		mntpnt=$(/bin/echo "$mntpnt" | sed "s,\\\0,\\\00,")
 		mntpnt=$(printf '%b\n' "$mntpnt")
+
+		fs=$(/bin/echo "$fs" | sed "s,\\\0,\\\00,")
+		fs=$(printf '%b\n' "$fs")
+
 		if [ "$fstype" = "zfs" ] ; then
+			mountpoint=$(zfs get -H -ovalue mountpoint "$fs")
 			if [ "$mntpnt" = "/" ] ; then
-				mount -f -o zfsutil -t zfs --move / /$tmpdir
+				if [ "$mountpoint" = "legacy" ]; then
+					MNT_CMD="mount -f -t zfs"
+				else
+					MNT_CMD="mount -f -t zfs -o zfsutil"
+				fi
+
+				$MNT_CMD --move / /$tmpdir
 				umount --fake /$tmpdir
 			else
 				umount --fake "$mntpnt"
@@ -327,13 +343,23 @@ reregister_mounts()
 				umount --fake "$mntpnt"
 			fi
 		fi
-	done < /proc/mounts
+	done < /etc/mtab
 
 	while read -r fs mntpnt fstype opts rest ; do
-		fs=$(printf '%b\n' "$fs")
+		mntpnt=$(/bin/echo "$mntpnt" | sed "s,\\\0,\\\00,")
 		mntpnt=$(printf '%b\n' "$mntpnt")
+
+		fs=$(/bin/echo "$fs" | sed "s,\\\0,\\\00,")
+		fs=$(printf '%b\n' "$fs")
 		if [ "$fstype" = "zfs" ] ; then
-			mount -f -t zfs -o zfsutil "$fs" "$mntpnt"
+			mountpoint=$(zfs get -H -ovalue mountpoint "$fs")
+			if [ "$mountpoint" = "legacy" ]; then
+				MNT_CMD="mount -f -t zfs"
+			else
+				MNT_CMD="mount -f -t zfs -o zfsutil"
+			fi
+
+			$MNT_CMD "$fs" "$mntpnt"
 		elif echo "$fs" | grep -q "^/dev/zd" ; then
 			mount -f -t "$fstype" -o "$opts" "$fs" "$mntpnt"
 		fi
@@ -373,9 +399,23 @@ read_mtab()
 
 	while read -r fs mntpnt fstype opts rest; do
 		if echo "$fs $mntpnt $fstype $opts" | grep -qE "$match"; then
+			# * Fix problems (!?) in the mounts file. It will record
+			#   'rpool 1' as 'rpool\0401' instead of 'rpool\00401'
+			#   which seems to be the correct (at least as far as
+			#   'printf' is concerned).
+			# * We need to use the external echo, because the
+			#   internal one would interpret the backslash code
+			#   (incorrectly), giving us a 
 instead.
+			mntpnt=$(/bin/echo "$mntpnt" | sed "s,\\\0,\\\00,")
+			fs=$(/bin/echo "$fs" | sed "s,\\\0,\\\00,")
+
+			# Replace 'unwanted' characters with underscore.
 			mntpnt=$(printf '%b\n' "$mntpnt" | sed -e 's,/,_,g' \
-			    -e 's,-,_,g' -e 's,\.,_,g')
-			eval export MTAB_$mntpnt="$fs"
+			    -e 's,-,_,g' -e 's,\.,_,g' -e 's, ,_,g')
+			fs=$(printf '%b\n' "$fs")
+
+			# Set the variable.
+			eval export MTAB_$mntpnt=\"$fs\"
 		fi
 	done < /proc/mounts
 }