Index: channels/chan_sip.c
===================================================================
--- channels/chan_sip.c	(revision 145837)
+++ channels/chan_sip.c	(working copy)
@@ -14147,24 +14147,38 @@
 			char *at = strchr(uri, '@');
 			char *peerorhost;
 			struct sip_pkt *pkt = NULL;
+			int spiral_res = 0;
+			struct sip_peer *peer = NULL;
 			if (option_debug > 2) {
 				ast_log(LOG_DEBUG, "Potential spiral detected. Original RURI was %s, new RURI is %s\n", p->initreq.rlPart2, req->rlPart2);
 			}
 			if (at) {
-				*at = '\0';
+				*at++ = '\0';
 			}
 			/* Parse out "sip:" */
 			if ((peerorhost = strchr(uri, ':'))) {
 				*peerorhost++ = '\0';
 			}
-			create_addr(p, peerorhost);
+			if (at && (peer = find_peer(peerorhost, NULL, 1, 0))) {
+				spiral_res = create_addr_from_peer(p, peer);
+			} else if (at) {
+				spiral_res = create_addr(p, at);
+			} else {
+				spiral_res = create_addr(p, peerorhost);
+			}
 			ast_string_field_free(p, theirtag);
 			for (pkt = p->packets; pkt; pkt = pkt->next) {
 				if (pkt->seqno == p->icseq && pkt->method == SIP_INVITE) {
 					AST_SCHED_DEL(sched, pkt->retransid);
 				}
 			}
-			return transmit_invite(p, SIP_INVITE, 1, 3);
+			if (spiral_res) {
+				transmit_response(p, "404 Not Found", req);
+				p->invitestate = INV_COMPLETED;
+				sip_scheddestroy(p, DEFAULT_TRANS_TIMEOUT);
+			} else {
+				return transmit_invite(p, SIP_INVITE, 1, 3);
+			}
 		}
 	}