diff --git a/README b/README
index 6957dae..4129e02 100644
--- a/README
+++ b/README
@@ -1,4 +1,4 @@
-$Id: README,v 1.6 2006/11/13 20:41:36 chandrusf Exp $
+$Id: README,v 1.7 2007/01/26 10:02:59 chandrusf Exp $
 
 ibrowse is a HTTP client. The following are a list of features.
 	- RFC2616 compliant (AFAIK) 
@@ -21,6 +21,9 @@ Comments to : Chandrashekhar.Mullaparthi@t-mobile.co.uk
 
 CONTRIBUTIONS & CHANGE HISTORY
 ==============================
+12-01-2007 -  Derek Upham sent in a bug fix. The reset_state function was not
+              behaving correctly when the transfer encoding was not chunked.
+
 13-11-2006 -  Youns Hafri reported a bug where ibrowse was not returning the 
                 temporary filename when the server was closing the connection 
                 after sending the data (as in HTTP/1.0).
diff --git a/src/ibrowse_http_client.erl b/src/ibrowse_http_client.erl
index 82e87f5..7b35ac4 100644
--- a/src/ibrowse_http_client.erl
+++ b/src/ibrowse_http_client.erl
@@ -6,7 +6,7 @@
 %%% Created : 11 Oct 2003 by Chandrashekhar Mullaparthi <chandrashekhar.mullaparthi@t-mobile.co.uk>
 %%%-------------------------------------------------------------------
 -module(ibrowse_http_client).
--vsn('$Id: ibrowse_http_client.erl,v 1.8 2006/11/13 20:41:36 chandrusf Exp $ ').
+-vsn('$Id: ibrowse_http_client.erl,v 1.9 2007/01/26 10:02:59 chandrusf Exp $ ').
 
 -behaviour(gen_server).
 %%--------------------------------------------------------------------
@@ -860,7 +860,6 @@ parse_11_response(DataRecvd,
 
 handle_response(#request{from=From, stream_to=StreamTo, req_id=ReqId}, 
 		#state{save_response_to_file = true, 
-		       reqs = Reqs,
 		       http_status_code=SCode,
 		       tmp_file_name=TmpFilename,
 		       tmp_file_fd=Fd,
@@ -874,7 +873,6 @@ handle_response(#request{from=From, stream_to=StreamTo, req_id=ReqId},
 handle_response(#request{from=From, stream_to=StreamTo, req_id=ReqId},
 		#state{http_status_code=SCode, recvd_headers=RespHeaders,
 		       reply_buffer=RepBuf, transfer_encoding=TEnc,
-		       reqs = Reqs,
 		       chunks=Chunks, send_timer=ReqTimer}=State) ->
     Body = case TEnc of
 	       chunked ->
@@ -896,7 +894,7 @@ handle_response(#request{from=From, stream_to=StreamTo, req_id=ReqId},
 reset_state(State) ->
     State#state{status=get_header, rep_buf_size=0,content_length=undefined,
 		reply_buffer=[], chunks=[], recvd_headers=[], deleted_crlf=false,
-		http_status_code=undefined, chunk_size=0, transfer_encoding=undefined}.
+		http_status_code=undefined, chunk_size=undefined, transfer_encoding=undefined}.
 
 set_cur_request(#state{reqs = Reqs} = State) ->
     case queue:to_list(Reqs) of
diff --git a/vsn.mk b/vsn.mk
index 3b6d337..c39350e 100644
--- a/vsn.mk
+++ b/vsn.mk
@@ -1,2 +1,2 @@
-IBROWSE_VSN = 1.2.3
+IBROWSE_VSN = 1.2.4