Index: apps/app_dial.c
===================================================================
--- apps/app_dial.c	(revision 243115)
+++ apps/app_dial.c	(working copy)
@@ -2427,7 +2427,7 @@
 
 		strcpy(peer->context, chan->context);
 
-		if (ast_test_flag64(&opts, OPT_PEER_H) && ast_exists_extension(peer, peer->context, "h", 1, peer->cid.cid_num)) {
+		if (!ast_test_flag(chan, AST_FLAG_BRIDGE_HANGUP_RUN) && ast_test_flag64(&opts, OPT_PEER_H) && ast_exists_extension(peer, peer->context, "h", 1, peer->cid.cid_num)) {
 			int autoloopflag;
 			int found;
 			int res9;
Index: main/features.c
===================================================================
--- main/features.c	(revision 243115)
+++ main/features.c	(working copy)
@@ -3055,7 +3055,7 @@
 		char save_exten[AST_MAX_EXTENSION];
 		int  save_prio;
 		int  found = 0;	/* set if we find at least one match */
-		int  spawn_error = 0;
+		int  spawn_error = 0, was_hungup = ast_check_hangup(chan);
 		
 		autoloopflag = ast_test_flag(chan, AST_FLAG_IN_AUTOLOOP);
 		ast_set_flag(chan, AST_FLAG_IN_AUTOLOOP);
@@ -3079,8 +3079,11 @@
 		while ((spawn_error = ast_spawn_extension(chan, chan->context, chan->exten, chan->priority, chan->cid.cid_num, &found, 1)) == 0) {
 			chan->priority++;
 		}
-		if (spawn_error && (!ast_exists_extension(chan, chan->context, chan->exten, chan->priority, chan->cid.cid_num) || ast_check_hangup(chan))) {
-			/* if the extension doesn't exist or a hangup occurred, this isn't really a spawn error */
+		if (spawn_error && (!ast_exists_extension(chan, chan->context, chan->exten, 1, chan->cid.cid_num) || (!was_hungup && ast_check_hangup(chan)))) {
+			/* If the extension doesn't exist or a hangup occurred in the short
+			 * timeframe (remember, we're in the "h" extension, so to a very
+			 * large margin, hangup occurred well before this point), this isn't
+			 * really a spawn error. */
 			spawn_error = 0;
 		}
 		if (found && spawn_error) {