diff --git a/manifest b/manifest
index 73688d2b5e..765ea282ce 100644
--- a/manifest
+++ b/manifest
@@ -1,5 +1,5 @@
-C Improved\sdocumentation\son\sthe\sVFS\smethods.\s\sTicket\s#3925.\s(CVS\s6791)
-D 2009-06-19T22:50:31
+C If\safter\sobtaining\san\sexclusive\slock\sto\srollback\sa\shot-journal\sfile\sit\sis\sfound\sthat\sthe\sjournal\sfile\shas\sbeen\sdeleted,\sdo\snot\sreturn\san\sSQLITE_BUSY\serror.\sJust\sdowngrade\sthe\slock\sand\scontinue\swith\sthe\scurrent\soperation.\sThis\seliminates\sa\sspurious\sSQLITE_BUSY\serror\scaused\sby\sa\srace\scondition.\s(CVS\s6792)
+D 2009-06-20T11:54:39
 F Makefile.arm-wince-mingw32ce-gcc fcd5e9cd67fe88836360bb4f9ef4cb7f8e2fb5a0
 F Makefile.in 8b8fb7823264331210cddf103831816c286ba446
 F Makefile.linux-gcc d53183f4aa6a9192d249731c90dbdffbd2c68654
@@ -146,7 +146,7 @@ F src/os_common.h 8c61457df58f1a4bd5f5adc3e90e01b37bf7afbc
 F src/os_os2.c bed77dc26e3a95ce4a204936b9a1ca6fe612fcc5
 F src/os_unix.c b64129c296e480c2827606e206ea51bb30904626
 F src/os_win.c 725c38a524d168ce280446ad8761d731bc516405
-F src/pager.c 507655773b384471fc05addcdcff4df100afb43b
+F src/pager.c f6d5aa971a4d414ef4a1fb3a82671b62a7289f2c
 F src/pager.h 5aec418bf99f568b92ae82816a1463400513726d
 F src/parse.y b6e99f4208a34eb83c62f20dd67f8d9058e86768
 F src/pcache.c 395f752a13574120bd7513a400ba02a265aaa76d
@@ -736,7 +736,7 @@ F tool/speedtest2.tcl ee2149167303ba8e95af97873c575c3e0fab58ff
 F tool/speedtest8.c 2902c46588c40b55661e471d7a86e4dd71a18224
 F tool/speedtest8inst1.c 293327bc76823f473684d589a8160bde1f52c14e
 F tool/vdbe-compress.tcl 672f81d693a03f80f5ae60bfefacd8a349e76746
-P 605520ec04061e389226fbec59f7aedf674b3c4e
-R 77263e60d51c5790c85677dbbe783a27
-U drh
-Z 9de7a6e0110fa6991e4ef3a2f917372e
+P f66fc7713ec5ff8cf92e875e904f079d724b0477
+R 40c7ff61e852d4cc9604ee6e6c9bbbd4
+U danielk1977
+Z 867454200d76158649fd516091f8285f
diff --git a/manifest.uuid b/manifest.uuid
index 7bf2c3d694..25d36d3421 100644
--- a/manifest.uuid
+++ b/manifest.uuid
@@ -1 +1 @@
-f66fc7713ec5ff8cf92e875e904f079d724b0477
\ No newline at end of file
+9a0666003764774b0bf861687002f8db9fd314b1
\ No newline at end of file
diff --git a/src/pager.c b/src/pager.c
index 513aabf66b..0a2b18952c 100644
--- a/src/pager.c
+++ b/src/pager.c
@@ -18,7 +18,7 @@
 ** file simultaneously, or one process from reading the database while
 ** another is writing.
 **
-** @(#) $Id: pager.c,v 1.598 2009/06/19 17:50:02 danielk1977 Exp $
+** @(#) $Id: pager.c,v 1.599 2009/06/20 11:54:39 danielk1977 Exp $
 */
 #ifndef SQLITE_OMIT_DISKIO
 #include "sqliteInt.h"
@@ -3571,17 +3571,13 @@ static int pagerSharedLock(Pager *pPager){
   int rc = SQLITE_OK;                /* Return code */
   int isErrorReset = 0;              /* True if recovering from error state */
 
-  /* If this database is opened for exclusive access, has no outstanding 
-  ** page references and is in an error-state, this is a chance to clear
-  ** the error. Discard the contents of the pager-cache and treat any
-  ** open journal file as a hot-journal.
+  /* If this database has no outstanding page references and is in an 
+  ** error-state, this is a chance to clear the error. Discard the 
+  ** contents of the pager-cache and rollback any hot journal in the
+  ** file-system.
   */
-  if( !MEMDB 
-   && sqlite3PcacheRefCount(pPager->pPCache)==0 && pPager->errCode 
-  ){
-    if( isOpen(pPager->jfd) ){
-      isErrorReset = 1;
-    }
+  if( !MEMDB && sqlite3PcacheRefCount(pPager->pPCache)==0 && pPager->errCode ){
+    isErrorReset = 1;
     pPager->errCode = SQLITE_OK;
     pager_reset(pPager);
   }
@@ -3662,9 +3658,12 @@ static int pagerSharedLock(Pager *pPager){
               sqlite3OsClose(pPager->jfd);
             }
           }else{
-            /* If the journal does not exist, that means some other process
-            ** has already rolled it back */
-            rc = SQLITE_BUSY;
+            /* If the journal does not exist, it usually means that some 
+            ** other connection managed to get in and roll it back before 
+            ** this connection obtained the exclusive lock above. Or, it 
+            ** may mean that the pager was in the error-state when this
+            ** function was called and the journal file does not exist.  */
+            rc = pager_end_transaction(pPager, 0);
           }
         }
       }
@@ -3683,10 +3682,12 @@ static int pagerSharedLock(Pager *pPager){
       ** playing back the hot-journal so that we don't end up with
       ** an inconsistent cache.
       */
-      rc = pager_playback(pPager, 1);
-      if( rc!=SQLITE_OK ){
-        rc = pager_error(pPager, rc);
-        goto failed;
+      if( isOpen(pPager->jfd) ){
+        rc = pager_playback(pPager, 1);
+        if( rc!=SQLITE_OK ){
+          rc = pager_error(pPager, rc);
+          goto failed;
+        }
       }
       assert( (pPager->state==PAGER_SHARED)
            || (pPager->exclusiveMode && pPager->state>PAGER_SHARED)