diff --git a/checkin_notes b/checkin_notes
index ef1e5b8ebc..1a41c56c89 100755
--- a/checkin_notes
+++ b/checkin_notes
@@ -7448,3 +7448,18 @@ David  11 July 2006
 		server_types.h
 		show_shmem.C
 		validator.C
+
+David  11 July 2006
+	- core client: fix bug where the first log flag in the
+		list was getting skipped over.
+		This was due to a design flaw in the new XML parsing code.
+		To work around this, I changed the format of
+		the cc_config.xml file so that options are
+		enclosed in <options> ... </options>
+
+	client/
+		app.C
+		cs_statefile.C
+		log_flags.C,h
+	lib/
+		parse.C
diff --git a/client/app.C b/client/app.C
index e689af3423..c9168eaebb 100644
--- a/client/app.C
+++ b/client/app.C
@@ -452,6 +452,7 @@ int ACTIVE_TASK::parse(MIOFILE& fin) {
         else if (parse_double(buf, "<rss_bytes>", x)) continue;
         else if (match_tag(buf, "<supports_graphics/>")) continue;
         else if (parse_int(buf, "<graphics_mode_acked>", n)) continue;
+        else if (parse_int(buf, "<scheduler_state>", n)) continue;
         else {
             if (log_flags.unparsed_xml) {
                 msg_printf(0, MSG_ERROR,
diff --git a/client/cs_statefile.C b/client/cs_statefile.C
index 55952f818d..f01c94d87a 100644
--- a/client/cs_statefile.C
+++ b/client/cs_statefile.C
@@ -96,6 +96,8 @@ int CLIENT_STATE::parse_state_file() {
     while (fgets(buf, 256, f)) {
         if (match_tag(buf, "</client_state>")) {
             break;
+        } else if (match_tag(buf, "<client_state>")) {
+            continue;
         } else if (match_tag(buf, "<project>")) {
             PROJECT temp_project;
             retval = temp_project.parse_state(mf);
diff --git a/client/log_flags.C b/client/log_flags.C
index fcbd25251f..3b7430d360 100644
--- a/client/log_flags.C
+++ b/client/log_flags.C
@@ -94,6 +94,26 @@ CONFIG::CONFIG() {
     save_stats_days = 30;
 }
 
+int CONFIG::parse_options(FILE* f) {
+    char tag[256], contents[1024];
+    while (get_tag(f, tag, contents)) {
+        if (!strcmp(tag, "/options")) {
+            return 0;
+        } else if (!strcmp(tag, "save_stats_days")) {
+            save_stats_days = get_int(contents);
+        } else if (!strcmp(tag, "dont_check_file_sizes")) {
+            dont_check_file_sizes = get_bool(contents);
+        } else if (!strcmp(tag, "ncpus")) {
+            ncpus = get_int(contents);
+        } else {
+            msg_printf(NULL, MSG_ERROR, "Unparsed tag in %s: %s\n",
+                CONFIG_FILE, tag
+            );
+        }
+    }
+    return ERR_XML_PARSE;
+}
+
 int CONFIG::parse(FILE* f) {
     char tag[256], contents[1024];
 
@@ -103,17 +123,13 @@ int CONFIG::parse(FILE* f) {
     if (strstr(tag, "?xml")) get_tag(f, tag);
     if (strcmp(tag, "cc_config")) return ERR_XML_PARSE;
 
-    while (get_tag(f, tag, contents)) {
+    while (get_tag(f, tag)) {
         if (!strcmp(tag, "/cc_config")) return 0;
         if (!strcmp(tag, "log_flags")) {
             log_flags.parse(f);
             continue;
-        } else if (!strcmp(tag, "save_stats_days")) {
-            save_stats_days = get_int(contents);
-        } else if (!strcmp(tag, "dont_check_file_sizes")) {
-            dont_check_file_sizes = get_bool(contents);
-        } else if (!strcmp(tag, "ncpus")) {
-            ncpus = get_int(contents);
+        } else if (!strcmp(tag, "options")) {
+            parse_options(f);
         } else {
             msg_printf(NULL, MSG_ERROR, "Unparsed tag in %s: %s\n",
                 CONFIG_FILE, tag
diff --git a/client/log_flags.h b/client/log_flags.h
index 016da62b74..86c20ca788 100644
--- a/client/log_flags.h
+++ b/client/log_flags.h
@@ -73,6 +73,7 @@ struct CONFIG {
     int ncpus;
     CONFIG();
     int parse(FILE*);
+    int parse_options(FILE*);
 };
 
 extern LOG_FLAGS log_flags;
diff --git a/lib/parse.C b/lib/parse.C
index 558dd70b9d..d204bca325 100644
--- a/lib/parse.C
+++ b/lib/parse.C
@@ -408,6 +408,14 @@ int skip_unrecognized(char* buf, FILE* in) {
 }
 
 // Get next XML element or tag.
+//
+// NOTE: this can't be used for XML docs that have
+// nested elements and data elements at the same level, i.e.
+// <foo>
+//   <bar>1</bar>
+// </foo>
+// <blah>asdf</blah>
+//
 // If it's a close tag, or the contents pointer is NULL, just return the tag.
 // Otherwise return the contents also.
 //