diff --git a/src/encoding/bzip2.c b/src/encoding/bzip2.c
index 0291a3916..eb6f90cb4 100644
--- a/src/encoding/bzip2.c
+++ b/src/encoding/bzip2.c
@@ -19,13 +19,22 @@
 #include "encoding/encoding.h"
 #include "util/memory.h"
 
-
 struct bz2_enc_data {
 	FILE *file;
 	BZFILE *bzfile;
 	int last_read; /* If err after last bzRead() was BZ_STREAM_END.. */
 };
 
+struct bzFile {
+	FILE *handle;
+	char buf[BZ_MAX_UNUSED];
+	int bufN;
+	unsigned char writing;
+	bz_stream strm;
+	int lastErr;
+	unsigned char initialisedOk;
+};
+
 /* TODO: When it'll be official, use bzdopen() from Yoshioka Tsuneo. --pasky */
 
 static int
@@ -52,16 +61,112 @@ bzip2_open(struct stream_encoded *stream, int fd)
 	return 0;
 }
 
+static unsigned char
+myfeof(FILE *f)
+{
+	int c = fgetc (f);
+
+	if (c == EOF) return 1;
+	ungetc(c, f);
+	return 0;
+}
+
+#define BZ_SETERR(eee)                    \
+{                                         \
+   if (bzerror != NULL) *bzerror = eee;   \
+   if (bzf != NULL) bzf->lastErr = eee;   \
+}
+
+static int
+BZ2_bzRead2(int *bzerror, BZFILE *b, void *buf, int len)
+{
+	int n, ret, pi = 0;
+	struct bzFile *bzf = (struct bzFile *)b;
+
+	BZ_SETERR(BZ_OK);
+
+	if (bzf == NULL || buf == NULL || len < 0) {
+		BZ_SETERR(BZ_PARAM_ERROR);
+		return 0;
+	}
+
+	if (bzf->writing) {
+		BZ_SETERR(BZ_SEQUENCE_ERROR);
+		return 0;
+	}
+
+	if (len == 0) {
+		BZ_SETERR(BZ_OK);
+		return 0;
+	}
+
+	bzf->strm.avail_out = len;
+	bzf->strm.next_out = buf;
+
+	while (1) {
+		if (ferror(bzf->handle)) {
+			BZ_SETERR(BZ_IO_ERROR);
+			return 0;
+		}
+
+		if (bzf->strm.avail_in == 0 && !myfeof(bzf->handle)) {
+			n = fread(bzf->buf, 1, BZ_MAX_UNUSED, bzf->handle);
+			if (ferror(bzf->handle)) {
+				if (n < 0) {
+					BZ_SETERR(BZ_IO_ERROR);
+					return 0;
+				} else {
+					BZ_SETERR(BZ_OK);
+					pi = 1;
+				}
+			}
+			bzf->bufN = n;
+			bzf->strm.avail_in = bzf->bufN;
+			bzf->strm.next_in = bzf->buf;
+		}
+
+		ret = BZ2_bzDecompress ( &(bzf->strm) );
+		if (ret != BZ_OK && ret != BZ_STREAM_END) {
+			BZ_SETERR(ret);
+			return 0;
+		}
+
+		if (ret == BZ_OK && myfeof(bzf->handle) &&
+			bzf->strm.avail_in == 0 && bzf->strm.avail_out > 0) {
+			if (!pi) {
+				BZ_SETERR(BZ_UNEXPECTED_EOF);
+				return 0;
+			} else {
+				return len - bzf->strm.avail_out;
+			}
+		}
+
+		if (ret == BZ_STREAM_END) {
+			BZ_SETERR(BZ_STREAM_END);
+			return len - bzf->strm.avail_out;
+		}
+
+		if (bzf->strm.avail_out == 0) {
+			BZ_SETERR(BZ_OK);
+			return len;
+		}
+	}
+	return 0; /*not reached*/
+}
+#undef BZ_STRERR
+
 static int
 bzip2_read(struct stream_encoded *stream, unsigned char *buf, int len)
 {
 	struct bz2_enc_data *data = (struct bz2_enc_data *) stream->data;
 	int err = 0;
+	struct bzFile *bzf = (struct bzFile *)data->bzfile;
 
 	if (data->last_read)
 		return 0;
 
-	len = BZ2_bzRead(&err, data->bzfile, buf, len);
+	clearerr(bzf->handle);
+	len = BZ2_bzRead2(&err, data->bzfile, buf, len);
 
 	if (err == BZ_STREAM_END)
 		data->last_read = 1;
diff --git a/src/protocol/http/http.c b/src/protocol/http/http.c
index 3c52195c0..7d9896c33 100644
--- a/src/protocol/http/http.c
+++ b/src/protocol/http/http.c
@@ -723,18 +723,14 @@ http_send_header(struct socket *socket)
 #if defined(CONFIG_GZIP) || defined(CONFIG_BZIP2)
 	add_to_string(&header, "Accept-Encoding: ");
 
-#ifdef BUG_517
 #ifdef CONFIG_BZIP2
 	add_to_string(&header, "bzip2");
 #endif
-#endif
 
 #ifdef CONFIG_GZIP
 
-#ifdef BUG_517
 #ifdef CONFIG_BZIP2
 	add_to_string(&header, ", ");
-#endif
 #endif
 
 	add_to_string(&header, "gzip");
@@ -1820,13 +1816,13 @@ again:
 		    && (!strcasecmp(d, "gzip") || !strcasecmp(d, "x-gzip")))
 		    	conn->content_encoding = ENCODING_GZIP;
 #endif
-#ifdef BUG_517
+
 #ifdef CONFIG_BZIP2
 		if (file_encoding != ENCODING_BZIP2
 		    && (!strcasecmp(d, "bzip2") || !strcasecmp(d, "x-bzip2")))
 			conn->content_encoding = ENCODING_BZIP2;
 #endif
-#endif
+
 		mem_free(d);
 	}