diff --git a/ChangeLog b/ChangeLog
index 11f3214c11..565bcbadd2 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,6 +1,11 @@
+2005-07-05  Robert Love  <rml@novell.com>
+
+	* src/NetworkManagerDevice.c: use link-local (autoip) on DHCP failure
+	  on wired or unencrypted wireless.
+
 2005-07-01  Robert Love  <rml@novell.com>
 
-	* src/NetworkManagersystem.c: Print the error via strerror().
+	* src/NetworkManagerSystem.c: Print the error via strerror().
 
 2005-06-30  Robert Love  <rml@novell.com>
 
diff --git a/src/NetworkManagerDevice.c b/src/NetworkManagerDevice.c
index 639211e59f..37c1f5b4f4 100644
--- a/src/NetworkManagerDevice.c
+++ b/src/NetworkManagerDevice.c
@@ -2845,7 +2845,11 @@ static gboolean nm_device_activate_stage4_ip_config_timeout (NMActRequest *req)
 	}
 
 	if (nm_device_is_wired (dev))
-		nm_policy_schedule_activation_failed (req);
+	{
+		/* Wired network, no DHCP reply.  Let's get an IP via Zeroconf. */
+		nm_info ("No DHCP reply received.  Automatically obtaining IP via Zeroconf.");
+		ip4_config = nm_device_new_ip4_autoip_config (dev);
+	}
 	else if (nm_device_is_wireless (dev))
 	{
 		NMAccessPoint *ap = nm_act_request_get_ap (req);
@@ -2873,11 +2877,21 @@ static gboolean nm_device_activate_stage4_ip_config_timeout (NMActRequest *req)
 		}
 		else
 		{
-			/* If DHCP fails on an unencrypted access point, we're done */
-			nm_policy_schedule_activation_failed (req);
+			/*
+			 * Wireless, not encrypted, no DHCP Reply.  Try Zeroconf.  We do not do this in
+			 * the encrypted case, because the problem could be (and more likely is) a bad key.
+			 */
+			nm_info ("No DHCP reply received.  Automatically obtaining IP via Zeroconf.");
+			ip4_config = nm_device_new_ip4_autoip_config (dev);
 		}
 	}
 
+	if (ip4_config)
+	{
+		nm_act_request_set_ip4_config (req, ip4_config);
+		nm_device_activate_schedule_stage5_ip_config_commit (req);
+	}
+
 out:
 	nm_info ("Activation (%s) Stage 4 (IP Configure Timeout) complete.", nm_device_get_iface (dev));
 	return FALSE;