diff --git a/ChangeLog b/ChangeLog
index 6589ee582..c8ffa5472 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,10 @@
+2006-07-10  Dan Williams  <dcbw@redhat.com>
+
+	Patch from Valentine Sinitsyn <e_val@inbox.ru>
+	* src/nm-device.c
+		- (real_act_stage3_ip_config_start): don't infinite loop when
+			dhcdbd isn't running (Gnome #346845)
+
 2006-07-09  Dan Williams  <dcbw@redhat.com>
 
 	* gnome/applet/applet.c
diff --git a/src/nm-device.c b/src/nm-device.c
index 9e6e0b034..6a98fdca7 100644
--- a/src/nm-device.c
+++ b/src/nm-device.c
@@ -849,14 +849,18 @@ real_act_stage3_ip_config_start (NMDevice *self,
 	{
 		/* Begin a DHCP transaction on the interface */
 		if (!nm_dhcp_manager_begin_transaction (data->dhcp_manager, req))
+		{
 			ret = NM_ACT_STAGE_RETURN_FAILURE;
+			goto out;
+		}	
 
 		/* DHCP devices will be notified by the DHCP manager when
 		 * stuff happens.
 		 */
 		ret = NM_ACT_STAGE_RETURN_POSTPONE;
 	}
-
+	
+out:
 	return ret;
 }