diff --git a/checkin_notes b/checkin_notes
index 7fe0839fae..3f6e92a6a0 100755
--- a/checkin_notes
+++ b/checkin_notes
@@ -12984,3 +12984,15 @@ David  June 2 2004
 
 	api/
 		boinc_api.C
+
+Daniel June 3 2004
+	- client: handle_pers_file_xfers(): if file transfer fails,
+		then don't verify the file
+	- client: start_xfer(): need to assign fxp in order for
+		handle_xfer_failure() to work
+
+	client/
+		cs_files.C
+		pers_file_xfer.C
+
+
diff --git a/client/cs_files.C b/client/cs_files.C
index fd54a7180c..16c2644eb1 100644
--- a/client/cs_files.C
+++ b/client/cs_files.C
@@ -204,7 +204,8 @@ bool CLIENT_STATE::handle_pers_file_xfers() {
                     fip->delete_file();
                 }
                 fip->uploaded = true;
-            } else {
+			} else if (fip->status >= 0) {
+				// file transfer did not fail (non-negative status)
 
                 // verify the file with RSA or MD5, and change permissions
                 //
diff --git a/client/pers_file_xfer.C b/client/pers_file_xfer.C
index 7b9641a247..91ee661d32 100644
--- a/client/pers_file_xfer.C
+++ b/client/pers_file_xfer.C
@@ -128,17 +128,19 @@ int PERS_FILE_XFER::start_xfer() {
     } else {
         retval = file_xfer->init_download(*fip);
     }
+    fxp = file_xfer;
     if (retval) {
         msg_printf(
             fip->project, MSG_ERROR, "Couldn't start %s for %s: error %d",
             (is_upload ? "upload" : "download"), fip->get_url(), retval
         );
         handle_xfer_failure();
+		delete fxp;
+		fxp = NULL;
         return retval;
         // TODO: do we need to do anything here?
     }
     retval = gstate.file_xfers->insert(file_xfer);
-    fxp = file_xfer;
     if (retval) {
         msg_printf(
             fip->project, MSG_ERROR, "Couldn't start %s for %s: error %d",