Index: channels/chan_sip.c
===================================================================
--- channels/chan_sip.c	(revision 94396)
+++ channels/chan_sip.c	(working copy)
@@ -1512,6 +1512,14 @@
 		(head) = (element)->next;	\
 	} while (0)
 
+
+/* t38action flags for the process_sdp */
+
+/* Presense of T38 options means that remote side initiates T38 to us */
+#define SDP_T38_INITIATE	1
+/* Presense of T38 options means that remote side accepts our T38 proposal */
+#define SDP_T38_ACCEPT		2
+
 /*---------------------------- Forward declarations of functions in chan_sip.c */
 /*! \note This is added to help splitting up chan_sip.c into several files
 	in coming releases */
@@ -1598,7 +1606,7 @@
 static const char* get_sdp_iterate(int* start, struct sip_request *req, const char *name);
 static const char *get_sdp(struct sip_request *req, const char *name);
 static int find_sdp(struct sip_request *req);
-static int process_sdp(struct sip_pvt *p, struct sip_request *req);
+static int process_sdp(struct sip_pvt *p, struct sip_request *req, int t38action);
 static void add_codec_to_sdp(const struct sip_pvt *p, int codec, int sample_rate,
 			     struct ast_str **m_buf, struct ast_str **a_buf,
 			     int debug, int *min_packet_size);
@@ -5628,7 +5636,7 @@
  	Return 0 on success, a negative value on errors.
 	Must be called after find_sdp().
 */
-static int process_sdp(struct sip_pvt *p, struct sip_request *req)
+static int process_sdp(struct sip_pvt *p, struct sip_request *req, int t38action)
 {
 	const char *m;		/* SDP media offer */
 	const char *c;
@@ -5797,14 +5805,6 @@
 				ast_verbose("Got T.38 offer in SDP in dialog %s\n", p->callid);
 			udptlportno = x;
 			numberofmediastreams++;
-			
-			if (p->owner && p->lastinvite) {
-				p->t38.state = T38_PEER_REINVITE; /* T38 Offered in re-invite from remote party */
-				ast_debug(2, "T38 state changed to %d on channel %s\n", p->t38.state, p->owner ? p->owner->name : "<none>" );
-			} else {
-				p->t38.state = T38_PEER_DIRECT; /* T38 Offered directly from peer in first invite */
-				ast_debug(2, "T38 state changed to %d on channel %s\n", p->t38.state, p->owner ? p->owner->name : "<none>");
-			}
 		} else 
 			ast_log(LOG_WARNING, "Unsupported SDP media type in offer: %s\n", m);
 		if (numberofports > 1)
@@ -6113,11 +6113,25 @@
 				p->t38.capability,
 				p->t38.peercapability,
 				p->t38.jointcapability);
+
+
+		/* Remote party offers T38, we need to update state */
+		if (t38action & SDP_T38_ACCEPT) {
+			if (p->t38.state == T38_LOCAL_DIRECT || p->t38.state == T38_LOCAL_REINVITE)
+				p->t38.state = T38_ENABLED;
+		} else if (t38action & SDP_T38_INITIATE) {
+			if (p->owner && p->lastinvite) {
+				p->t38.state = T38_PEER_REINVITE; /* T38 Offered in re-invite from remote party */
+			} else {
+				p->t38.state = T38_PEER_DIRECT; /* T38 Offered directly from peer in first invite */
+			}
+		}
 	} else {
 		p->t38.state = T38_DISABLED;
-		ast_debug(3, "T38 state changed to %d on channel %s\n", p->t38.state, p->owner ? p->owner->name : "<none>");
 	}
 
+	ast_debug(3, "T38 state changed to %d on channel %s\n", p->t38.state, p->owner ? p->owner->name : "<none>");
+
 	/* Now gather all of the codecs that we are asked for: */
 	ast_rtp_get_current_formats(newaudiortp, &peercapability, &peernoncodeccapability);
 	ast_rtp_get_current_formats(newvideortp, &vpeercapability, &vpeernoncodeccapability);
@@ -13510,7 +13524,7 @@
 		}
 		if (find_sdp(req)) {
 			p->invitestate = INV_EARLY_MEDIA;
-			res = process_sdp(p, req);
+			res = process_sdp(p, req, 0);
 			if (!req->ignore && p->owner) {
 				/* Queue a progress frame only if we have SDP in 180 or 182 */
 				ast_queue_control(p->owner, AST_CONTROL_PROGRESS);
@@ -13525,7 +13539,7 @@
 		/* Ignore 183 Session progress without SDP */
 		if (find_sdp(req)) {
 			p->invitestate = INV_EARLY_MEDIA;
-			res = process_sdp(p, req);
+			res = process_sdp(p, req, 0);
 			if (!req->ignore && p->owner) {
 				/* Queue a progress frame */
 				ast_queue_control(p->owner, AST_CONTROL_PROGRESS);
@@ -13539,7 +13553,7 @@
 			sip_cancel_destroy(p);
 		p->authtries = 0;
 		if (find_sdp(req)) {
-			if ((res = process_sdp(p, req)) && !req->ignore)
+			if ((res = process_sdp(p, req, SDP_T38_ACCEPT)) && !req->ignore)
 				if (!reinvite)
 					/* This 200 OK's SDP is not acceptable, so we need to ack, then hangup */
 					/* For re-invites, we try to recover */
@@ -14299,7 +14313,7 @@
 					if (!req->ignore)
 						sip_cancel_destroy(p);
 					if (find_sdp(req))
-						process_sdp(p, req);
+						process_sdp(p, req, 0);
 					if (p->owner) {
 						/* Queue a progress frame */
 						ast_queue_control(p->owner, AST_CONTROL_PROGRESS);
@@ -15214,7 +15228,7 @@
 			ast_clear_flag(&p->flags[0], SIP_OUTGOING);	/* This is now an inbound dialog */
 			/* Handle SDP here if we already have an owner */
 			if (find_sdp(req)) {
-				if (process_sdp(p, req)) {
+				if (process_sdp(p, req, SDP_T38_INITIATE)) {
 					transmit_response(p, "488 Not acceptable here", req);
 					if (!p->lastinvite)
 						sip_scheddestroy(p, DEFAULT_TRANS_TIMEOUT);
@@ -15255,7 +15269,7 @@
 
 		/* We have a succesful authentication, process the SDP portion if there is one */
 		if (find_sdp(req)) {
-			if (process_sdp(p, req)) {
+			if (process_sdp(p, req, SDP_T38_INITIATE)) {
 				/* Unacceptable codecs */
 				transmit_response_reliable(p, "488 Not acceptable here", req);
 				p->invitestate = INV_COMPLETED;	
@@ -16748,7 +16762,7 @@
 			p->pendinginvite = 0;
 			__sip_ack(p, seqno, 1 /* response */, 0);
 			if (find_sdp(req)) {
-				if (process_sdp(p, req))
+				if (process_sdp(p, req, 0))
 					return -1;
 			} 
 			check_pendings(p);
@@ -19542,7 +19556,7 @@
 {
 	struct sip_pvt *p, *pl;
 	struct ast_context *con;
-	
+
 	/* First, take us out of the channel type list */
 	ast_channel_unregister(&sip_tech);