diff -u -r asterisk-1.4.20.1.orig/channels/chan_sip.c asterisk-1.4.20.1/channels/chan_sip.c
--- asterisk-1.4.20.1.orig/channels/chan_sip.c	2008-05-14 14:51:06.000000000 +0200
+++ asterisk-1.4.20.1/channels/chan_sip.c	2008-06-17 12:20:44.000000000 +0200
@@ -3223,7 +3223,10 @@
 		inuse = &u->inUse;
 		call_limit = &u->call_limit;
 		inringing = NULL;
-	} else if ( (p = find_peer(ast_strlen_zero(fup->peername) ? name : fup->peername, NULL, 1) ) ) { /* Try to find peer */
+	}
+	/* but if it is also a peer, we use the peer part, as we only check
+	 * user state on users that are not peers. */
+	if ( (p = find_peer(ast_strlen_zero(fup->peername) ? name : fup->peername, NULL, 1) ) ) { /* Try to find peer */
 		inuse = &p->inUse;
 		call_limit = &p->call_limit;
 		inringing = &p->inRinging;
@@ -3283,8 +3286,10 @@
 			}
 		}
 		/* Continue */
-		(*inuse)++;
-		ast_set_flag(&fup->flags[0], SIP_INC_COUNT);
+		if (!ast_test_flag(&fup->flags[0], SIP_INC_COUNT)) {
+			(*inuse)++;
+			ast_set_flag(&fup->flags[0], SIP_INC_COUNT);
+		}
 		if (option_debug > 1 || sipdebug) {
 			ast_log(LOG_DEBUG, "Call %s %s '%s' is %d out of %d\n", outgoing ? "to" : "from", u ? "user":"peer", name, *inuse, *call_limit);
 		}
@@ -3308,8 +3313,10 @@
 	if (p) {
 		ast_device_state_changed("SIP/%s", p->name);
 		ASTOBJ_UNREF(p, sip_destroy_peer);
-	} else /* u must be set */
+	} else {/* u must be set */
+		ast_device_state_changed("SIP/%s", u->name);
 		ASTOBJ_UNREF(u, sip_destroy_user);
+	}
 	return 0;
 }
 
@@ -15991,7 +15998,8 @@
 
 	struct hostent *hp;
 	struct ast_hostent ahp;
-	struct sip_peer *p;
+	struct sip_peer *p = NULL;
+	struct sip_user *u = NULL;
 
 	int res = AST_DEVICE_INVALID;
 
@@ -16027,7 +16035,7 @@
 			} else if (p->call_limit && (p->inUse == p->call_limit))
 				/* check call limit */
 				res = AST_DEVICE_BUSY;
-			else if (p->call_limit && p->inUse)
+			else if (p->inUse)
 				/* Not busy, but we do have a call */
 				res = AST_DEVICE_INUSE;
 			else if (p->maxms && ((p->lastms > p->maxms) || (p->lastms < 0))) 
@@ -16040,6 +16048,18 @@
 			res = AST_DEVICE_UNAVAILABLE;
 		}
 		ASTOBJ_UNREF(p,sip_destroy_peer);
+	} else if ((u = find_user(host, 1))) {
+		/* for a user we don't have an address, but we
+		 * know if a call is progressing from that user.
+		 */
+		if (u->call_limit && (u->inUse == u->call_limit))
+			/* check call limit */
+			res = AST_DEVICE_BUSY;
+		else if (u->inUse)
+			/* Not busy, but we do have a call */
+			res = AST_DEVICE_INUSE;
+		else	/* Default reply if we're registered and have no other data */
+			res = AST_DEVICE_NOT_INUSE;
 	} else {
 		char *port = strchr(host, ':');
 		if (port)