diff --git a/CHANGES b/CHANGES
index 1801cf552..ab0ba5d24 100644
--- a/CHANGES
+++ b/CHANGES
@@ -7,6 +7,12 @@
                                   Changelog
 
 
+Daniel (8 August 2005)
+- Jon Grubbs filed bug report #1249962 which identified a problem with NTLM on
+  a HTTP proxy if an FTP URL was given. libcurl now properly switches to pure
+  HTTP internally when an HTTP proxy is used, even for FTP URLs. The problem
+  would also occur with other multi-pass auth methods.
+
 Daniel (7 August 2005)
 - When curl is built with GnuTLS, curl-config didn't include "SSL" when
   --features was used.
diff --git a/RELEASE-NOTES b/RELEASE-NOTES
index 114698340..b6a02ffea 100644
--- a/RELEASE-NOTES
+++ b/RELEASE-NOTES
@@ -5,7 +5,7 @@ Curl and libcurl 7.14.1
  Available command line options:           107
  Available curl_easy_setopt() options:     122
  Number of public functions in libcurl:    46
- Amount of public web site mirrors:        24
+ Amount of public web site mirrors:        25
  Number of known libcurl bindings:         31
  Number of contributors:                   437
 
@@ -18,6 +18,7 @@ This release includes the following changes:
 
 This release includes the following bugfixes:
 
+ o using NTLM over proxy with an FTP URL
  o curl-config --features now displays SSL when built with GnuTLS too
  o CURLOPT_HTTPGET, CURLOPT_POST and CURLOPT_HTTPPOST reset CURLOPT_NOBODY
  o builds fine on AmigaOS again
@@ -50,6 +51,6 @@ advice from friends like these:
 
  John McGowan, Georg Wicherski, Andres Garcia, Eric Cooper, Todd Kulesza,
  Tupone Alfredo, Gisle Vanem, David Shaw, Andrew Bushnell, Dan Fandrich,
- Adrian Schuur, Diego Casorran, Peteris Krumins
+ Adrian Schuur, Diego Casorran, Peteris Krumins, Jon Grubbs
 
         Thanks! (and sorry if I forgot to mention someone)
diff --git a/lib/url.c b/lib/url.c
index f587b79f1..3698affd1 100644
--- a/lib/url.c
+++ b/lib/url.c
@@ -2651,9 +2651,13 @@ static CURLcode CreateConnection(struct SessionHandle *data,
         }
 
         if(proxy && *proxy) {
+          long bits = conn->protocol & (PROT_HTTPS|PROT_SSL);
           data->change.proxy = proxy;
           data->change.proxy_alloc=TRUE; /* this needs to be freed later */
           conn->bits.httpproxy = TRUE;
+
+          /* force this to become HTTP */
+          conn->protocol = PROT_HTTP | bits;
         }
       } /* if (!nope) - it wasn't specified non-proxy */
     } /* NO_PROXY wasn't specified or '*' */
@@ -2789,6 +2793,7 @@ static CURLcode CreateConnection(struct SessionHandle *data,
 #ifndef CURL_DISABLE_HTTP
       conn->curl_do = Curl_http;
       conn->curl_done = Curl_http_done;
+      conn->protocol = PROT_HTTP; /* switch to HTTP */
 #else
       failf(data, "FTP over http proxy requires HTTP support built-in!");
       return CURLE_UNSUPPORTED_PROTOCOL;