diff --git a/ChangeLog b/ChangeLog
index 5d671d4677..c77ba97037 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,9 @@
+Wed Apr 30 20:11:36 2008  James Edward Gray II  <jeg2@ruby-lang.org>
+
+	* lib/net/telnet.rb:  Fixing a bug where line endings would not be properly
+	  escaped when the two character ending was broken up into separate TCP
+	  packets.  Issue reported and patched by Brian Candler.
+
 Wed Apr 30 18:03:01 2008  Nobuyoshi Nakada  <nobu@ruby-lang.org>
 
 	* load.c (rb_load_path), vm_core.h (rb_vm_t): moved to VM.
diff --git a/lib/net/telnet.rb b/lib/net/telnet.rb
index dfbe932dcd..1d38ee91ff 100644
--- a/lib/net/telnet.rb
+++ b/lib/net/telnet.rb
@@ -562,7 +562,8 @@ module Net
                Integer(c.rindex(/#{IAC}#{SB}/no))
               buf = preprocess(c[0 ... c.rindex(/#{IAC}#{SB}/no)])
               rest = c[c.rindex(/#{IAC}#{SB}/no) .. -1]
-            elsif pt = c.rindex(/#{IAC}[^#{IAC}#{AO}#{AYT}#{DM}#{IP}#{NOP}]?\z/no)
+            elsif pt = c.rindex(/#{IAC}[^#{IAC}#{AO}#{AYT}#{DM}#{IP}#{NOP}]?\z/no) ||
+                       c.rindex(/\r\z/no)
               buf = preprocess(c[0 ... pt])
               rest = c[pt .. -1]
             else
@@ -574,9 +575,15 @@ module Net
            #
            # We cannot use preprocess() on this data, because that
            # method makes some Telnetmode-specific assumptions.
-           buf = c
-           buf.gsub!(/#{EOL}/no, "\n") unless @options["Binmode"]
+           buf = rest + c
            rest = ''
+           unless @options["Binmode"]
+             if pt = buf.rindex(/\r\z/no)
+               buf = buf[0 ... pt]
+               rest = buf[pt .. -1]
+             end
+             buf.gsub!(/#{EOL}/no, "\n")
+           end
           end
           @log.print(buf) if @options.has_key?("Output_log")
           line += buf