--- drivers/net/ppp_generic.c.orig	Sat Apr 21 13:33:00 2001
+++ drivers/net/ppp_generic.c	Sat Apr 21 13:44:38 2001
@@ -1967,15 +1967,30 @@
 
 	switch (CCP_CODE(dp)) {
 	case CCP_CONFREQ:
+
+		/* A ConfReq starts negotiation of compression 
+		 * in one direction of transmission,
+		 * and hence brings it down...but which way?
+		 *
+		 * Remember:
+		 * A ConfReq indicates what the sender would like to receive */
+		 */
+		if(inbound)
+			/* He is proposing what I should send */
+			ppp->xstate &= ~SC_COMP_RUN;
+		else	
+			/* I am proposing to what he should send */
+			ppp->rstate &= ~SC_DECOMP_RUN;
+		
+		break;
+		
 	case CCP_TERMREQ:
 	case CCP_TERMACK:
 		/*
-		 * CCP is going down - disable compression.
+		 * CCP is going down, both directions of transmission 
 		 */
-		if (inbound)
-			ppp->rstate &= ~SC_DECOMP_RUN;
-		else
-			ppp->xstate &= ~SC_COMP_RUN;
+		ppp->rstate &= ~SC_DECOMP_RUN;
+		ppp->xstate &= ~SC_COMP_RUN;
 		break;
 
 	case CCP_CONFACK: