diff --git a/CHANGES b/CHANGES
index b6a5d4227..fa3f4000a 100644
--- a/CHANGES
+++ b/CHANGES
@@ -7,6 +7,17 @@
                                   Changelog
 
 Daniel Stenberg (24 Mar 2010)
+- Bob Richmond: There's an annoying situation where libcurl will read new HTTP
+  response data from a socket, then check if it's a timeout if one is set. If
+  the last packet received constitutes the end of the response body, libcurl
+  still treats it as a timeout condition and reports a message like:
+
+  "Operation timed out after 3000 milliseconds with 876 out of 876 bytes 
+  received"
+
+  It should only a timeout if the timer lapsed and we DIDN'T receive the end
+  of the response body yet.
+
 - Christopher Conroy fixed a problem with RTSP and GET_PARAMETER reported
   to us by Massimo Callegari. There's a new test case 572 that verifies this
   now.
diff --git a/RELEASE-NOTES b/RELEASE-NOTES
index 9c6775ff2..b2134027d 100644
--- a/RELEASE-NOTES
+++ b/RELEASE-NOTES
@@ -40,6 +40,7 @@ This release includes the following bugfixes:
  o chunked-encoding with Content-Length: header problem
  o multi interface HTTP POST over a proxy using PROXYTUNNEL
  o RTSP GET_PARAMETER
+ o timeout after last data chunk was handled
 
 This release includes the following known bugs:
 
@@ -52,6 +53,7 @@ advice from friends like these:
  Daniel Fandrich, Patrick Monnerat, Pat Ray, Wesley Miaw, Ben Greear,
  Ryan Chan, Markus Duft, Andrei Benea, Jacob Moshenko, Daniel Johnson,
  Constantine Sapuntzakis, Douglas Steinwand, Thomas Lopatic, Hauke Duden,
- Akos Pasztory, Kenny To, Christopher Conroy, Massimo Callegari
+ Akos Pasztory, Kenny To, Christopher Conroy, Massimo Callegari,
+ Bob Richmond
 
         Thanks! (and sorry if I forgot to mention someone)
diff --git a/lib/hostip.c b/lib/hostip.c
index 04a29a754..e34fd5a99 100644
--- a/lib/hostip.c
+++ b/lib/hostip.c
@@ -624,9 +624,9 @@ int Curl_resolv_timeout(struct connectdata *conn,
    */
   rc = Curl_resolv(conn, hostname, port, entry);
 
+#ifdef USE_ALARM_TIMEOUT
 clean_up:
 
-#ifdef USE_ALARM_TIMEOUT
   if (timeout > 0) {
 
 #ifdef HAVE_SIGACTION
diff --git a/lib/transfer.c b/lib/transfer.c
index 6e669abc5..ad9499c99 100644
--- a/lib/transfer.c
+++ b/lib/transfer.c
@@ -1060,21 +1060,22 @@ CURLcode Curl_readwrite(struct connectdata *conn,
   if(result)
     return result;
 
-  if(data->set.timeout &&
-     (Curl_tvdiff(k->now, k->start) >= data->set.timeout)) {
-    if(k->size != -1) {
-      failf(data, "Operation timed out after %ld milliseconds with %"
-            FORMAT_OFF_T " out of %" FORMAT_OFF_T " bytes received",
-            Curl_tvdiff(k->now, k->start), k->bytecount, k->size);
-    } else {
-      failf(data, "Operation timed out after %ld milliseconds with %"
-            FORMAT_OFF_T " bytes received",
-            Curl_tvdiff(k->now, k->start), k->bytecount);
+  if(k->keepon) {
+    if(data->set.timeout &&
+       (Curl_tvdiff(k->now, k->start) >= data->set.timeout)) {
+      if(k->size != -1) {
+        failf(data, "Operation timed out after %ld milliseconds with %"
+              FORMAT_OFF_T " out of %" FORMAT_OFF_T " bytes received",
+              Curl_tvdiff(k->now, k->start), k->bytecount, k->size);
+      } else {
+        failf(data, "Operation timed out after %ld milliseconds with %"
+              FORMAT_OFF_T " bytes received",
+              Curl_tvdiff(k->now, k->start), k->bytecount);
+      }
+      return CURLE_OPERATION_TIMEDOUT;
     }
-    return CURLE_OPERATION_TIMEDOUT;
   }
-
-  if(!k->keepon) {
+  else {
     /*
      * The transfer has been performed. Just make some general checks before
      * returning.
diff --git a/tests/libtest/lib572.c b/tests/libtest/lib572.c
index b3e48e3a4..18e74d4db 100644
--- a/tests/libtest/lib572.c
+++ b/tests/libtest/lib572.c
@@ -69,9 +69,7 @@ int test(char *URL)
 
   test_setopt(curl, CURLOPT_RTSP_TRANSPORT, "Planes/Trains/Automobiles");
   test_setopt(curl, CURLOPT_RTSP_REQUEST, CURL_RTSPREQ_SETUP);
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
   res = curl_easy_perform(curl);
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
   if(res)
     goto test_cleanup;
 
@@ -82,7 +80,6 @@ int test(char *URL)
   test_setopt(curl, CURLOPT_RTSP_STREAM_URI, stream_uri);
   free(stream_uri);
   stream_uri = NULL;
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
 
   /* PUT style GET_PARAMETERS */
   params = open("log/file572.txt", O_RDONLY);
@@ -101,7 +98,6 @@ int test(char *URL)
   test_setopt(curl, CURLOPT_UPLOAD, 1L);
   test_setopt(curl, CURLOPT_INFILESIZE_LARGE, (curl_off_t) file_info.st_size);
 
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
   res = curl_easy_perform(curl);
   if(res)
     goto test_cleanup;
@@ -109,7 +105,6 @@ int test(char *URL)
   test_setopt(curl, CURLOPT_UPLOAD, 0L);
   fclose(paramsf);
   paramsf = NULL;
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
 
   /* Heartbeat GET_PARAMETERS */
   if((stream_uri = suburl(URL, request++)) == NULL) {
@@ -120,7 +115,6 @@ int test(char *URL)
   free(stream_uri);
   stream_uri = NULL;
 
-  fprintf(stderr, "CPC: %s:%d\n", __FILE__, __LINE__);
   res = curl_easy_perform(curl);
   if(res)
     goto test_cleanup;