diff --git a/checkin_notes b/checkin_notes
index 264ff35561..44764c3e45 100644
--- a/checkin_notes
+++ b/checkin_notes
@@ -2581,3 +2581,13 @@ David  3 Mar 2009
                 freedc_icon.png
                 boincstats_icon.png
             white.css
+
+David  3 Mar 2009
+    - client: change garbage-collect logic.
+        old: reference-count files involved in a PERS_FILE_XFER
+        new: if a PERS_FILE_XFER refers to an unreferenced file,
+            delete it (and the associated FILE_XFER and HTTP_OP if present)
+        May fix #366
+
+    client/
+        client_state.cpp
diff --git a/client/client_state.cpp b/client/client_state.cpp
index 1f941122e0..1f573a163d 100644
--- a/client/client_state.cpp
+++ b/client/client_state.cpp
@@ -1170,31 +1170,40 @@ bool CLIENT_STATE::garbage_collect_always() {
         }
     }
 
-    // reference count files involved in PERS_FILE_XFER or FILE_XFER
-    // (this seems redundant, but apparently not)
-    //
-    for (i=0; i<file_xfers->file_xfers.size(); i++) {
-        file_xfers->file_xfers[i]->fip->ref_cnt++;
-    }
-    for (i=0; i<pers_file_xfers->pers_file_xfers.size(); i++) {
-        pers_file_xfers->pers_file_xfers[i]->fip->ref_cnt++;
-    }
-
-    // delete FILE_INFOs (and corresponding files) that are not referenced
-    // Don't do this if sticky and not marked for delete
+    // reference-count sticky files not marked for deletion
     //
     fi_iter = file_infos.begin();
     while (fi_iter != file_infos.end()) {
         fip = *fi_iter;
-        bool exempt = fip->sticky;
-        if (fip->status < 0) exempt = false;
-        if (fip->marked_for_delete) exempt = false;
-        if (fip->ref_cnt==0 && !exempt) {
-            if (fip->pers_file_xfer) {
-                pers_file_xfers->remove(fip->pers_file_xfer);
-                delete fip->pers_file_xfer;
-                fip->pers_file_xfer = 0;
-            }
+        if (!fip->sticky) continue;
+        if (fip->status < 0) continue;
+        if (fip->marked_for_delete) continue;
+        fip->ref_cnt++;
+        fi_iter++;
+    }
+
+    // remove PERS_FILE_XFERs (and associated FILE_XFERs and HTTP_OPs)
+    // for unreferenced files
+    //
+    vector<PERS_FILE_XFER*>::iterator pfx_iter;
+    pfx_iter = pers_file_xfers->pers_file_xfers.begin();
+    while (pfx_iter != pers_file_xfers->pers_file_xfers.end()) {
+        PERS_FILE_XFER* pfx = *pfx_iter;
+        if (pfx->fip->ref_cnt == 0) {
+            pfx->suspend();
+            delete pfx;
+            pfx_iter = pers_file_xfers->pers_file_xfers.erase(pfx_iter);
+        } else {
+            pfx_iter++;
+        }
+    }
+
+    // delete FILE_INFOs (and corresponding files) that are not referenced
+    //
+    fi_iter = file_infos.begin();
+    while (fi_iter != file_infos.end()) {
+        fip = *fi_iter;
+        if (fip->ref_cnt==0) {
             fip->delete_file();
             if (log_flags.state_debug) {
                 msg_printf(0, MSG_INFO,