diff -ru linux-2.6.12-rc3/net/core/dev.c linux-2.6.12-work/net/core/dev.c
--- linux-2.6.12-rc3/net/core/dev.c	2005-04-06 16:43:37.000000000 +0200
+++ linux-2.6.12-work/net/core/dev.c	2005-05-02 23:16:40.329156594 +0200
@@ -2203,14 +2203,10 @@
 	unsigned flags;
 
 	flags = (dev->flags & ~(IFF_PROMISC |
-				IFF_ALLMULTI |
-				IFF_RUNNING)) | 
+				IFF_ALLMULTI)) |
 		(dev->gflags & (IFF_PROMISC |
 				IFF_ALLMULTI));
 
-	if (netif_running(dev) && netif_carrier_ok(dev))
-		flags |= IFF_RUNNING;
-
 	return flags;
 }
 
diff -ru linux-2.6.12-rc3/net/core/link_watch.c linux-2.6.12-work/net/core/link_watch.c
--- linux-2.6.12-rc3/net/core/link_watch.c	2005-03-04 09:55:42.000000000 +0100
+++ linux-2.6.12-work/net/core/link_watch.c	2005-05-02 22:40:59.773471515 +0200
@@ -16,6 +16,7 @@
 #include <linux/netdevice.h>
 #include <linux/if.h>
 #include <net/sock.h>
+#include <net/pkt_sched.h>
 #include <linux/rtnetlink.h>
 #include <linux/jiffies.h>
 #include <linux/spinlock.h>
@@ -74,6 +75,12 @@
 		clear_bit(__LINK_STATE_LINKWATCH_PENDING, &dev->state);
 
 		if (dev->flags & IFF_UP) {
+			if (netif_carrier_ok(dev)) {
+				WARN_ON(dev->qdisc_sleeping == &noop_qdisc);
+				dev_activate(dev);
+			} else
+				dev_deactivate(dev);
+
 			netdev_state_change(dev);
 		}
 
diff -ru linux-2.6.12-rc3/net/sched/sch_generic.c linux-2.6.12-work/net/sched/sch_generic.c
--- linux-2.6.12-rc3/net/sched/sch_generic.c	2005-03-04 09:55:44.000000000 +0100
+++ linux-2.6.12-work/net/sched/sch_generic.c	2005-05-02 23:07:49.367184929 +0200
@@ -514,6 +514,9 @@
 
 void dev_activate(struct net_device *dev)
 {
+	if (dev->flags & IFF_RUNNING)
+		return;
+
 	/* No queueing discipline is attached to device;
 	   create default one i.e. pfifo_fast for devices,
 	   which need queueing and noqueue_qdisc for
@@ -539,6 +542,11 @@
 		write_unlock_bh(&qdisc_tree_lock);
 	}
 
+	if (!netif_carrier_ok(dev))
+		/* Delay activation until next carrier-on event */
+		return;
+	dev->flags |= IFF_RUNNING;
+
 	spin_lock_bh(&dev->queue_lock);
 	rcu_assign_pointer(dev->qdisc, dev->qdisc_sleeping);
 	if (dev->qdisc != &noqueue_qdisc) {
@@ -552,15 +560,18 @@
 {
 	struct Qdisc *qdisc;
 
-	spin_lock_bh(&dev->queue_lock);
-	qdisc = dev->qdisc;
-	dev->qdisc = &noop_qdisc;
+	if (dev->flags & IFF_RUNNING) {
+		spin_lock_bh(&dev->queue_lock);
+		qdisc = dev->qdisc;
+		dev->qdisc = &noop_qdisc;
 
-	qdisc_reset(qdisc);
+		qdisc_reset(qdisc);
 
-	spin_unlock_bh(&dev->queue_lock);
+		spin_unlock_bh(&dev->queue_lock);
 
-	dev_watchdog_down(dev);
+		dev_watchdog_down(dev);
+	}
+	dev->flags &= ~IFF_RUNNING;
 
 	while (test_bit(__LINK_STATE_SCHED, &dev->state))
 		yield();