diff -ur rsync-2.6.9.orig/clientserver.c rsync-2.6.9/clientserver.c
--- rsync-2.6.9.orig/clientserver.c	2006-10-23 17:36:42.000000000 -0700
+++ rsync-2.6.9/clientserver.c	2008-04-02 15:09:32.000000000 -0700
@@ -103,8 +103,6 @@
 	if (fd == -1)
 		exit_cleanup(RERR_SOCKETIO);
 
-	set_socket_options(fd, sockopts);
-
 	ret = start_inband_exchange(user, path, fd, fd, argc);
 
 	return ret ? ret : client_run(fd, fd, -1, argc, argv);
@@ -746,10 +744,6 @@
 
 	if (!am_server) {
 		set_socket_options(f_in, "SO_KEEPALIVE");
-		if (sockopts)
-			set_socket_options(f_in, sockopts);
-		else
-			set_socket_options(f_in, lp_socket_options());
 		set_nonblocking(f_in);
 	}
 
diff -ur rsync-2.6.9.orig/socket.c rsync-2.6.9/socket.c
--- rsync-2.6.9.orig/socket.c	2006-10-31 11:21:57.000000000 -0800
+++ rsync-2.6.9/socket.c	2008-04-02 15:08:58.000000000 -0700
@@ -31,6 +31,7 @@
 #include <netinet/tcp.h>
 
 extern char *bind_address;
+extern char *sockopts;
 extern int default_af_hint;
 
 #ifdef HAVE_SIGACTION
@@ -261,6 +262,7 @@
 			s = -1;
 			continue;
 		}
+		set_socket_options(s, sockopts);
 		if (connect(s, res->ai_addr, res->ai_addrlen) < 0) {
 			close(s);
 			s = -1;
@@ -375,6 +377,10 @@
 
 		setsockopt(s, SOL_SOCKET, SO_REUSEADDR,
 			   (char *)&one, sizeof one);
+		if (sockopts)
+			set_socket_options(s, sockopts);
+		else
+			set_socket_options(s, lp_socket_options());
 
 #ifdef IPV6_V6ONLY
 		if (resp->ai_family == AF_INET6) {