diff --git a/CHANGES b/CHANGES
index 6c12c70..f5d53d1 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,5 +1,9 @@
 
 corrections:
+	fixed a bug, introduced with version 1.7.0.0, that let client
+	connections with option connect-timeout fail when the connections
+	succeeded. Thanks to Bruno De Fraine for reporting this bug.
+
 	half close of EXEC and SYSTEM addresses did not work for pipes and
 	sometimes socketpair
 
diff --git a/VERSION b/VERSION
index e286481..46a401f 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-"1.7.0.0+execshut"
+"1.7.0.0+execshut+connecttimeout"
diff --git a/test.sh b/test.sh
index 062ad6f..a9b974d 100755
--- a/test.sh
+++ b/test.sh
@@ -1,6 +1,6 @@
 #! /bin/bash
 # source: test.sh
-# Copyright Gerhard Rieger 2001-2008
+# Copyright Gerhard Rieger 2001-2009
 # Published under the GNU General Public License V.2, see file COPYING
 
 # perform lots of tests on socat
@@ -5694,7 +5694,7 @@ N=$((N+1))
 
 NAME=CONNECTTIMEOUT
 case "$TESTS" in
-*%functions%*|*%$NAME%*)
+*%functions%*|*%ip4%*|*%ipapp%*|*%tcp%*|*%timeout%*|*%$NAME%*)
 TEST="$NAME: test the connect-timeout option"
 if ! eval $NUMCOND; then :;
 elif ! feat=$(testaddrs tcp); then
@@ -5745,6 +5745,53 @@ esac
 N=$((N+1))
 
 
+# version 1.7.0.0 had a bug with the connect-timeout option: while it correctly
+# terminated a hanging connect attempt, it prevented a successful connection
+# establishment from being recognized by socat, instead the timeout occurred
+NAME=CONNECTTIMEOUT_CONN
+if ! eval $NUMCOND; then :; else
+case "$TESTS" in
+*%functions%*|*%ip4%*|*%ipapp%*|*%tcp%*|*%timeout%*|*%$NAME%*)
+TEST="$NAME: TCP4 connect-timeout option when server replies"
+# just try a connection that is expected to succeed with the usual data
+# transfer; with the bug it will fail
+tf="$td/test$N.stdout"
+te="$td/test$N.stderr"
+tdiff="$td/test$N.diff"
+tsl=$PORT
+ts="127.0.0.1:$tsl"
+da="test$N $(date) $RANDOM"
+CMD1="$SOCAT $opts TCP4-LISTEN:$tsl,reuseaddr PIPE"
+CMD2="$SOCAT $opts STDIO TCP4:$ts,connect-timeout=1"
+printf "test $F_n $TEST... " $N
+$CMD1 >"$tf" 2>"${te}1" &
+pid1=$!
+waittcp4port $tsl 1
+echo "$da" |$CMD2 >>"$tf" 2>>"${te}2"
+if [ $? -ne 0 ]; then
+   $PRINTF "$FAILED: $SOCAT:\n"
+   echo "$CMD1 &"
+   cat "${te}1"
+   echo "$CMD2"
+   cat "${te}2"
+   numFAIL=$((numFAIL+1))
+elif ! echo "$da" |diff - "$tf" >"$tdiff"; then
+   $PRINTF "$FAILED\n"
+   cat "$tdiff"
+   numFAIL=$((numFAIL+1))
+else
+   $PRINTF "$OK\n"
+   if [ -n "$debug" ]; then cat "${te}1" "${te}2"; fi
+   numOK=$((numOK+1))
+fi
+kill $pid1 2>/dev/null
+wait ;;
+esac
+PORT=$((PORT+1))
+fi # NUMCOND
+N=$((N+1))
+
+
 NAME=OPENSSLLISTENDSA
 case "$TESTS" in
 *%functions%*|*%$NAME%*)
diff --git a/xio-socket.c b/xio-socket.c
index a28710f..d35a165 100644
--- a/xio-socket.c
+++ b/xio-socket.c
@@ -1,5 +1,5 @@
 /* source: xio-socket.c */
-/* Copyright Gerhard Rieger 2001-2008 */
+/* Copyright Gerhard Rieger 2001-2009 */
 /* Published under the GNU General Public License V.2, see file COPYING */
 
 /* this file contains the source for socket related functions, and the
@@ -849,10 +849,10 @@ int _xioopen_connect(struct single *xfd, struct sockaddr *us, size_t uslen,
 		  themlen, strerror(errno));
 	    timeout = xfd->para.socket.connect_timeout;
 	    writefd.fd = xfd->fd;
-	    writefd.events = (POLLIN|POLLHUP|POLLERR);
+	    writefd.events = (POLLOUT|POLLERR);
 	    result = xiopoll(&writefd, 1, &timeout);
 	    if (result < 0) {
-	       Msg4(level, "xiopoll({%d,POLLIN|POLLHUP|POLLER},,{"F_tv_sec"."F_tv_usec"): %s",
+	       Msg4(level, "xiopoll({%d,POLLOUT|POLLERR},,{"F_tv_sec"."F_tv_usec"): %s",
 		    xfd->fd, timeout.tv_sec, timeout.tv_usec, strerror(errno));
 	       return STAT_RETRYLATER;
 	    }
@@ -862,7 +862,7 @@ int _xioopen_connect(struct single *xfd, struct sockaddr *us, size_t uslen,
 		    strerror(ETIMEDOUT));
 	       return STAT_RETRYLATER;
 	    }
-	    if (writefd.revents & POLLOUT) {
+	    if (writefd.revents & POLLERR) {
 #if 0
 	       unsigned char dummy[1];
 	       Read(xfd->fd, &dummy, 1);	/* get error message */