diff -urN ext2-7/fs/ext2/ialloc.c ext2-8/fs/ext2/ialloc.c
--- ext2-7/fs/ext2/ialloc.c	Fri Dec  1 11:08:56 2000
+++ ext2-8/fs/ext2/ialloc.c	Fri Dec  1 11:11:12 2000
@@ -248,15 +248,111 @@
  * For other inodes, search forward from the parent directory\'s block
  * group to find a free inode.
  */
+
+static int find_cg_dir(struct super_block *sb, int parent_cg)
+{
+	struct ext2_super_block * es = sb->u.ext2_sb.s_es;
+	int ngroups = sb->u.ext2_sb.s_groups_count;
+	int avefreei = le32_to_cpu(es->s_free_inodes_count) / ngroups;
+	struct ext2_group_desc *cg, *best_cg = NULL;
+	struct buffer_head *bh, *best_bh = NULL;
+	int i = -1, j;
+
+/* I am not yet convinced that this next bit is necessary.
+	for (i = parent_cg, j = 0; j < ngroups; j++, i = ++i % ngroups) {
+		cg = ext2_get_group_desc (sb, i, &bh);
+		if (!cg)
+			continue;
+		if ((le16_to_cpu(cg->bg_used_dirs_count) << 8) < 
+		     le16_to_cpu(cg->bg_free_inodes_count)) {
+			best_cg = cg;
+			best_bh = bh;
+			goto found;
+		}
+	}
+*/
+	for (j = 0; j < ngroups; j++) {
+		cg = ext2_get_group_desc (sb, j, &bh);
+		if (!cg || !cg->bg_free_inodes_count)
+			continue;
+		if (le16_to_cpu(cg->bg_free_inodes_count) < avefreei)
+			continue;
+		if (!best_cg || 
+		    (le16_to_cpu(cg->bg_free_blocks_count) >
+		     le16_to_cpu(best_cg->bg_free_blocks_count))) {
+			i = j;
+			best_cg = cg;
+			best_bh = bh;
+		}
+	}
+	if (!best_cg)
+		return -1;
+found:
+	best_cg->bg_free_inodes_count =
+		cpu_to_le16(le16_to_cpu(best_cg->bg_free_inodes_count) - 1);
+	best_cg->bg_used_dirs_count =
+		cpu_to_le16(le16_to_cpu(best_cg->bg_used_dirs_count) + 1);
+	mark_buffer_dirty(best_bh);
+	return i;
+}
+
+static int find_cg_other(struct super_block *sb, int parent_cg)
+{
+	int ngroups = sb->u.ext2_sb.s_groups_count;
+	struct ext2_group_desc *cg;
+	struct buffer_head *bh;
+	int i, j;
+
+	/*
+	 * Try to place the inode in its parent directory
+	 */
+	i = parent_cg;
+	cg = ext2_get_group_desc (sb, i, &bh);
+	if (cg && le16_to_cpu(cg->bg_free_inodes_count))
+		goto found;
+
+	/*
+	 * Use a quadratic hash to find a group with a
+	 * free inode
+	 */
+	for (j = 1; j < ngroups; j <<= 1) {
+		i += j;
+		if (i >= ngroups)
+			i -= ngroups;
+		cg = ext2_get_group_desc (sb, i, &bh);
+		if (cg && le16_to_cpu(cg->bg_free_inodes_count))
+			goto found;
+	}
+
+	/*
+	 * That failed: try linear search for a free inode
+	 */
+	i = parent_cg + 1;
+	for (j = 2; j < ngroups; j++) {
+		if (++i >= ngroups)
+			i = 0;
+		cg = ext2_get_group_desc (sb, i, &bh);
+		if (cg && le16_to_cpu(cg->bg_free_inodes_count))
+			goto found;
+	}
+
+	return -1;
+
+found:
+	cg->bg_free_inodes_count =
+		cpu_to_le16(le16_to_cpu(cg->bg_free_inodes_count) - 1);
+	mark_buffer_dirty(bh);
+	return i;
+}
+
 struct inode * ext2_new_inode (const struct inode * dir, int mode)
 {
 	struct super_block * sb;
 	struct buffer_head * bh;
 	struct buffer_head * bh2;
-	int i, j, avefreei;
+	int i, j;
 	struct inode * inode;
 	struct ext2_group_desc * gdp;
-	struct ext2_group_desc * tmp;
 	struct ext2_super_block * es;
 	int err;
 
@@ -272,137 +368,41 @@
 	lock_super (sb);
 	es = sb->u.ext2_sb.s_es;
 repeat:
-	gdp = NULL; i=0;
-	
-	if (S_ISDIR(mode)) {
-		avefreei = le32_to_cpu(es->s_free_inodes_count) /
-			sb->u.ext2_sb.s_groups_count;
-/* I am not yet convinced that this next bit is necessary.
-		i = dir->u.ext2_i.i_block_group;
-		for (j = 0; j < sb->u.ext2_sb.s_groups_count; j++) {
-			tmp = ext2_get_group_desc (sb, i, &bh2);
-			if (tmp &&
-			    (le16_to_cpu(tmp->bg_used_dirs_count) << 8) < 
-			     le16_to_cpu(tmp->bg_free_inodes_count)) {
-				gdp = tmp;
-				break;
-			}
-			else
-			i = ++i % sb->u.ext2_sb.s_groups_count;
-		}
-*/
-		if (!gdp) {
-			for (j = 0; j < sb->u.ext2_sb.s_groups_count; j++) {
-				tmp = ext2_get_group_desc (sb, j, &bh2);
-				if (tmp &&
-				    le16_to_cpu(tmp->bg_free_inodes_count) &&
-				    le16_to_cpu(tmp->bg_free_inodes_count) >= avefreei) {
-					if (!gdp || 
-					    (le16_to_cpu(tmp->bg_free_blocks_count) >
-					     le16_to_cpu(gdp->bg_free_blocks_count))) {
-						i = j;
-						gdp = tmp;
-					}
-				}
-			}
-		}
-	}
+	if (S_ISDIR(mode)) 
+		i = find_cg_dir(sb, dir->u.ext2_i.i_block_group);
 	else 
-	{
-		/*
-		 * Try to place the inode in its parent directory
-		 */
-		i = dir->u.ext2_i.i_block_group;
-		tmp = ext2_get_group_desc (sb, i, &bh2);
-		if (tmp && le16_to_cpu(tmp->bg_free_inodes_count))
-			gdp = tmp;
-		else
-		{
-			/*
-			 * Use a quadratic hash to find a group with a
-			 * free inode
-			 */
-			for (j = 1; j < sb->u.ext2_sb.s_groups_count; j <<= 1) {
-				i += j;
-				if (i >= sb->u.ext2_sb.s_groups_count)
-					i -= sb->u.ext2_sb.s_groups_count;
-				tmp = ext2_get_group_desc (sb, i, &bh2);
-				if (tmp &&
-				    le16_to_cpu(tmp->bg_free_inodes_count)) {
-					gdp = tmp;
-					break;
-				}
-			}
-		}
-		if (!gdp) {
-			/*
-			 * That failed: try linear search for a free inode
-			 */
-			i = dir->u.ext2_i.i_block_group + 1;
-			for (j = 2; j < sb->u.ext2_sb.s_groups_count; j++) {
-				if (++i >= sb->u.ext2_sb.s_groups_count)
-					i = 0;
-				tmp = ext2_get_group_desc (sb, i, &bh2);
-				if (tmp &&
-				    le16_to_cpu(tmp->bg_free_inodes_count)) {
-					gdp = tmp;
-					break;
-				}
-			}
-		}
-	}
+		i = find_cg_other(sb, dir->u.ext2_i.i_block_group);
 
 	err = -ENOSPC;
-	if (!gdp)
+	if (i == -1)
 		goto fail;
 
 	err = -EIO;
 	bh = load_inode_bitmap (sb, i);
 	if (IS_ERR(bh))
-		goto fail;
-
-	if ((j = ext2_find_first_zero_bit ((unsigned long *) bh->b_data,
-				      EXT2_INODES_PER_GROUP(sb))) <
-	    EXT2_INODES_PER_GROUP(sb)) {
-		if (ext2_set_bit (j, bh->b_data)) {
-			ext2_error (sb, "ext2_new_inode",
-				      "bit already set for inode %d", j);
-			goto repeat;
-		}
-		mark_buffer_dirty(bh);
-		if (sb->s_flags & MS_SYNCHRONOUS) {
-			ll_rw_block (WRITE, 1, &bh);
-			wait_on_buffer (bh);
-		}
-	} else {
-		if (le16_to_cpu(gdp->bg_free_inodes_count) != 0) {
-			ext2_error (sb, "ext2_new_inode",
-				    "Free inodes count corrupted in group %d",
-				    i);
-			/* Is it really ENOSPC? */
-			err = -ENOSPC;
-			if (sb->s_flags & MS_RDONLY)
-				goto fail;
+		goto fail2;
 
-			gdp->bg_free_inodes_count = 0;
-			mark_buffer_dirty(bh2);
-		}
-		goto repeat;
+	j = ext2_find_first_zero_bit ((unsigned long *) bh->b_data,
+					      EXT2_INODES_PER_GROUP(sb));
+	if (j >= EXT2_INODES_PER_GROUP(sb))
+		goto bad_count;
+	ext2_set_bit (j, bh->b_data);
+
+	mark_buffer_dirty(bh);
+	if (sb->s_flags & MS_SYNCHRONOUS) {
+		ll_rw_block (WRITE, 1, &bh);
+		wait_on_buffer (bh);
 	}
+
 	j += i * EXT2_INODES_PER_GROUP(sb) + 1;
 	if (j < EXT2_FIRST_INO(sb) || j > le32_to_cpu(es->s_inodes_count)) {
 		ext2_error (sb, "ext2_new_inode",
 			    "reserved inode or inode > inodes count - "
 			    "block_group = %d,inode=%d", i, j);
 		err = -EIO;
-		goto fail;
+		goto fail2;
 	}
-	gdp->bg_free_inodes_count =
-		cpu_to_le16(le16_to_cpu(gdp->bg_free_inodes_count) - 1);
-	if (S_ISDIR(mode))
-		gdp->bg_used_dirs_count =
-			cpu_to_le16(le16_to_cpu(gdp->bg_used_dirs_count) + 1);
-	mark_buffer_dirty(bh2);
+
 	es->s_free_inodes_count =
 		cpu_to_le32(le32_to_cpu(es->s_free_inodes_count) - 1);
 	mark_buffer_dirty(sb->u.ext2_sb.s_sbh);
@@ -449,10 +449,32 @@
 	ext2_debug ("allocating inode %lu\n", inode->i_ino);
 	return inode;
 
+fail2:
+	gdp = ext2_get_group_desc (sb, i, &bh2);
+	gdp->bg_free_inodes_count =
+		cpu_to_le16(le16_to_cpu(gdp->bg_free_inodes_count) + 1);
+	if (S_ISDIR(mode))
+		gdp->bg_used_dirs_count =
+			cpu_to_le16(le16_to_cpu(gdp->bg_used_dirs_count) - 1);
+	mark_buffer_dirty(bh2);
 fail:
 	unlock_super(sb);
 	iput(inode);
 	return ERR_PTR(err);
+
+bad_count:
+	ext2_error (sb, "ext2_new_inode",
+		    "Free inodes count corrupted in group %d",
+		    i);
+	/* Is it really ENOSPC? */
+	err = -ENOSPC;
+	if (sb->s_flags & MS_RDONLY)
+		goto fail;
+
+	gdp = ext2_get_group_desc (sb, i, &bh2);
+	gdp->bg_free_inodes_count = 0;
+	mark_buffer_dirty(bh2);
+	goto repeat;
 }
 
 unsigned long ext2_count_free_inodes (struct super_block * sb)