diff --git a/ChangeLog b/ChangeLog
index d29dc7d16..b0fbb610c 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -61,6 +61,7 @@
 	  incoming connection
 	* added more detailed instrumentation of the disk I/O thread
 
+	* fixed edge case of pad file support
 	* limit number of torrents tracked by DHT
 	* fixed bug when allow_multiple_connections_per_ip was enabled
 	* potential WOW64 fix for unbuffered I/O (windows)
diff --git a/src/storage.cpp b/src/storage.cpp
index 321e031d1..208547b47 100644
--- a/src/storage.cpp
+++ b/src/storage.cpp
@@ -1196,6 +1196,7 @@ ret:
 				}
 				advance_bufs(current_buf, file_bytes_left);
 				TORRENT_ASSERT(count_bufs(current_buf, bytes_left - file_bytes_left) <= num_bufs);
+				file_offset = 0;
 				continue;
 			}
 
diff --git a/src/torrent.cpp b/src/torrent.cpp
index 4c57fc267..e555374e3 100644
--- a/src/torrent.cpp
+++ b/src/torrent.cpp
@@ -973,7 +973,7 @@ namespace libtorrent
 		for (file_storage::iterator i = m_torrent_file->files().begin()
 			, end(m_torrent_file->files().end()); i != end; ++i, ++file)
 		{
-			if (!i->pad_file) continue;
+			if (!i->pad_file || i->size == 0) continue;
 			m_padding += i->size;
 			
 			peer_request pr = m_torrent_file->map_file(file, 0, m_torrent_file->file_at(file).size);
@@ -983,12 +983,45 @@ namespace libtorrent
 
 			int block = block_size();
 			int blocks_per_piece = m_torrent_file->piece_length() / block;
-			piece_block pb(pr.piece, pr.start / block_size());
+			piece_block pb(pr.piece, pr.start / block);
 			for (; pr.length >= block; pr.length -= block, ++pb.block_index)
 			{
 				if (pb.block_index == blocks_per_piece) { pb.block_index = 0; ++pb.piece_index; }
 				m_picker->mark_as_finished(pb, 0);
 			}
+			// ugly edge case where padfiles are not used they way they're
+			// supposed to be. i.e. added back-to back or at the end
+			if (pb.block_index == blocks_per_piece) { pb.block_index = 0; ++pb.piece_index; }
+			if (pr.length > 0 && (boost::next(i) != end && boost::next(i)->pad_file)
+				|| boost::next(i) == end)
+			{
+				m_picker->mark_as_finished(pb, 0);
+			}
+		}
+
+		if (m_padding > 0)
+		{
+			// if we marked an entire piece as finished, we actually
+			// need to consider it finished
+
+			std::vector<piece_picker::downloading_piece> const& dq
+				= m_picker->get_download_queue();
+
+			std::vector<int> have_pieces;
+
+			for (std::vector<piece_picker::downloading_piece>::const_iterator i
+				= dq.begin(); i != dq.end(); ++i)
+			{
+				int num_blocks = m_picker->blocks_in_piece(i->index);
+				if (i->finished < num_blocks) continue;
+				have_pieces.push_back(i->index);
+			}
+
+			for (std::vector<int>::iterator i = have_pieces.begin();
+				i != have_pieces.end(); ++i)
+			{
+				we_have(*i);
+			}
 		}
 
 		m_storage->async_check_fastresume(&m_resume_entry