Index: smbd/open.c
===================================================================
--- smbd/open.c	(revision 13272)
+++ smbd/open.c	(working copy)
@@ -1646,6 +1646,8 @@
 		*pinfo = info;
 	}
 
+	DEBUG(10,("open_file_ntcreate: info was %d for file %s\n", info, fname));
+
 	/* 
 	 * Setup the oplock info in both the shared memory and
 	 * file structs.
@@ -1660,32 +1662,28 @@
 	}
 	set_share_mode(lck, fsp, 0, fsp->oplock_type);
 
-	if (create_options & FILE_DELETE_ON_CLOSE) {
-		uint32 dosattr= existing_dos_attributes;
-		NTSTATUS result;
-
-		if (info == FILE_WAS_OVERWRITTEN || info == FILE_WAS_CREATED ||
+	if (info == FILE_WAS_OVERWRITTEN || info == FILE_WAS_CREATED ||
 				info == FILE_WAS_SUPERSEDED) {
-			dosattr = new_dos_attributes;
-		}
 
-		result = can_set_delete_on_close(fsp, True, dosattr);
+		/* Handle strange delete on close create semantics. */
+		if (create_options & FILE_DELETE_ON_CLOSE) {
+			NTSTATUS result = can_set_delete_on_close(fsp, True, new_dos_attributes);
 
-		if (!NT_STATUS_IS_OK(result)) {
-			/* Remember to delete the mode we just added. */
-			del_share_mode(lck, fsp);
-			talloc_free(lck);
-			fd_close(conn,fsp);
-			file_free(fsp);
-			set_saved_ntstatus(result);
-			return NULL;
+			if (!NT_STATUS_IS_OK(result)) {
+				/* Remember to delete the mode we just added. */
+				del_share_mode(lck, fsp);
+				talloc_free(lck);
+				fd_close(conn,fsp);
+				file_free(fsp);
+				set_saved_ntstatus(result);
+				return NULL;
+			}
+			/* Note that here we set the *inital* delete on close flag,
+			   not the regular one. */
+			lck->initial_delete_on_close = True;
+			lck->modified = True;
 		}
-		lck->delete_on_close = True;
-		lck->modified = True;
-	}
 	
-	if (info == FILE_WAS_OVERWRITTEN || info == FILE_WAS_CREATED ||
-				info == FILE_WAS_SUPERSEDED) {
 		/* Files should be initially set as archive */
 		if (lp_map_archive(SNUM(conn)) ||
 		    lp_store_dos_attributes(SNUM(conn))) {
@@ -1976,7 +1974,9 @@
 
 	set_share_mode(lck, fsp, 0, NO_OPLOCK);
 
-	if (create_options & FILE_DELETE_ON_CLOSE) {
+	if ((create_options & FILE_DELETE_ON_CLOSE) &&
+			(info == FILE_WAS_OVERWRITTEN || info == FILE_WAS_CREATED ||
+			info == FILE_WAS_SUPERSEDED)) {
 		status = can_set_delete_on_close(fsp, True, 0);
 		if (!NT_STATUS_IS_OK(status)) {
 			set_saved_ntstatus(status);
@@ -1985,7 +1985,7 @@
 			return NULL;
 		}
 
-		lck->delete_on_close = True;
+		lck->initial_delete_on_close = True;
 		lck->modified = True;
 	}
 
Index: smbd/close.c
===================================================================
--- smbd/close.c	(revision 13272)
+++ smbd/close.c	(working copy)
@@ -209,7 +209,7 @@
 		DEBUG(0, ("close_file: Could not delete share entry for file %s\n", fsp->fsp_name));
 	}
 
-	delete_file = lck->delete_on_close;
+	delete_file = (lck->delete_on_close | lck->initial_delete_on_close);
 
 	if (delete_file) {
 		int i;
@@ -345,7 +345,7 @@
 		DEBUG(0, ("close_directory: Could not delete share entry for %s\n", fsp->fsp_name));
 	}
 
-	delete_dir = lck->delete_on_close;
+	delete_dir = (lck->delete_on_close | lck->initial_delete_on_close);
 
 	talloc_free(lck);
 
Index: libsmb/smb_share_modes.c
===================================================================
--- libsmb/smb_share_modes.c	(revision 13272)
+++ libsmb/smb_share_modes.c	(working copy)
@@ -123,6 +123,7 @@
 		struct {
 			int num_share_mode_entries;
 			BOOL delete_on_close;
+			BOOL initial_delete_on_close;
 		} s;
 		struct share_mode_entry dummy; /* Needed for alignment. */
 	} u;
@@ -282,6 +283,7 @@
 		ld = (struct locking_data *)db_data.dptr;
 		ld->u.s.num_share_mode_entries = 1;
 		ld->u.s.delete_on_close = 0;
+		ld->u.s.initial_delete_on_close = 0;
 		shares = (struct share_mode_entry *)(db_data.dptr + sizeof(struct share_mode_entry));
 		create_share_mode_entry(shares, new_entry);
 
Index: include/smb.h
===================================================================
--- include/smb.h	(revision 13272)
+++ include/smb.h	(working copy)
@@ -696,6 +696,7 @@
 	int num_share_modes;
 	struct share_mode_entry *share_modes;
 	BOOL delete_on_close;
+	BOOL initial_delete_on_close;
 	BOOL fresh;
 	BOOL modified;
 };
Index: locking/locking.c
===================================================================
--- locking/locking.c	(revision 13272)
+++ locking/locking.c	(working copy)
@@ -49,6 +49,7 @@
 		struct {
 			int num_share_mode_entries;
 			BOOL delete_on_close;
+			BOOL initial_delete_on_close; /* Only set at NTCreateX if file was created. */
 		} s;
                 struct share_mode_entry dummy; /* Needed for alignment. */
         } u;
@@ -435,11 +436,15 @@
 	data = (struct locking_data *)dbuf.dptr;
 
 	lck->delete_on_close = data->u.s.delete_on_close;
+	lck->initial_delete_on_close = data->u.s.initial_delete_on_close;
 	lck->num_share_modes = data->u.s.num_share_mode_entries;
 
 	DEBUG(10, ("parse_share_modes: delete_on_close: %d, "
-		   "num_share_modes: %d\n", lck->delete_on_close,
-		   lck->num_share_modes));
+		   "initial_delete_on_close: %d, "
+		   "num_share_modes: %d\n",
+		lck->delete_on_close,
+		lck->initial_delete_on_close,
+		lck->num_share_modes));
 
 	if ((lck->num_share_modes < 0) || (lck->num_share_modes > 1000000)) {
 		DEBUG(0, ("invalid number of share modes: %d\n",
@@ -535,8 +540,10 @@
 	ZERO_STRUCTP(data);
 	data->u.s.num_share_mode_entries = lck->num_share_modes;
 	data->u.s.delete_on_close = lck->delete_on_close;
-	DEBUG(10, ("unparse_share_modes: del: %d, num: %d\n",
+	data->u.s.initial_delete_on_close = lck->initial_delete_on_close;
+	DEBUG(10, ("unparse_share_modes: del: %d, initial del %d, num: %d\n",
 		   data->u.s.delete_on_close,
+		   data->u.s.initial_delete_on_close,
 		   data->u.s.num_share_mode_entries));
 	memcpy(result.dptr + sizeof(*data), lck->share_modes,
 	       sizeof(struct share_mode_entry)*lck->num_share_modes);
@@ -613,6 +620,7 @@
 	lck->num_share_modes = 0;
 	lck->share_modes = NULL;
 	lck->delete_on_close = False;
+	lck->initial_delete_on_close = False;
 	lck->fresh = False;
 	lck->modified = False;
 
@@ -962,6 +970,7 @@
  changed the delete on close flag. This will be noticed
  in the close code, the last closer will delete the file
  if flag is set.
+ Note that setting this to any value clears the initial_delete_on_close flag.
 ****************************************************************************/
 
 BOOL set_delete_on_close(files_struct *fsp, BOOL delete_on_close)
@@ -986,6 +995,11 @@
 		lck->modified = True;
 	}
 
+	if (lck->initial_delete_on_close) {
+		lck->initial_delete_on_close = False;
+		lck->modified = True;
+	}
+
 	talloc_free(lck);
 	return True;
 }