diff --git a/CHANGES b/CHANGES
index d078ccf32..70c50b897 100644
--- a/CHANGES
+++ b/CHANGES
@@ -6,6 +6,10 @@
 
                                   Changelog
 
+Daniel (7 November 2006)
+- Olaf fixed a leftover problem with the CONNECT fix of his that would leave a
+  wrong error message in the error message buffer.
+
 Daniel (3 November 2006)
 - Olaf Stueben provided a patch that I edited slightly. It fixes the notorious
   KNOWN_BUGS #25, which happens when a proxy closes the connection when
diff --git a/lib/url.c b/lib/url.c
index 2791c718c..c5ce746c0 100644
--- a/lib/url.c
+++ b/lib/url.c
@@ -3978,8 +3978,13 @@ static CURLcode SetupConnection(struct connectdata *conn,
       /* if the connection was closed by the server while exchanging
          authentication informations, retry with the new set
          authentication information */
-      if(conn->bits.proxy_connect_closed)
+      if(conn->bits.proxy_connect_closed) {
+        /* reset the error buffer */
+        if (data->set.errorbuffer)
+          data->set.errorbuffer[0] = '\0';
+        data->state.errorbuf = FALSE;
         continue;
+      }
 
       if(CURLE_OK != result)
         return result;