attrs->ia_valid &= ~ATTR_MODE;
 
        if (attrs->ia_valid & ATTR_MODE) {
-               cFYI(1, ("Mode changed to 0x%x", attrs->ia_mode));
+               cFYI(1, ("Mode changed to 0%o", attrs->ia_mode));
                mode = attrs->ia_mode;
        }
 
 #ifdef CONFIG_CIFS_EXPERIMENTAL
                if (cifs_sb->mnt_cifs_flags & CIFS_MOUNT_CIFS_ACL)
                        rc = mode_to_acl(inode, full_path, mode);
-               else if ((mode & S_IWUGO) == 0) {
-#else
-               if ((mode & S_IWUGO) == 0) {
+               else
 #endif
-                       /* not writeable */
-                       if ((cifsInode->cifsAttrs & ATTR_READONLY) == 0) {
-                               set_dosattr = true;
-                               time_buf.Attributes =
-                                       cpu_to_le32(cifsInode->cifsAttrs |
-                                                   ATTR_READONLY);
-                       }
-               } else if (cifsInode->cifsAttrs & ATTR_READONLY) {
+               if (((mode & S_IWUGO) == 0) &&
+                   (cifsInode->cifsAttrs & ATTR_READONLY) == 0) {
+                       set_dosattr = true;
+                       time_buf.Attributes = cpu_to_le32(cifsInode->cifsAttrs |
+                                                         ATTR_READONLY);
+                       /* fix up mode if we're not using dynperm */
+                       if ((cifs_sb->mnt_cifs_flags & CIFS_MOUNT_DYNPERM) == 0)
+                               attrs->ia_mode = inode->i_mode & ~S_IWUGO;
+               } else if ((mode & S_IWUGO) &&
+                          (cifsInode->cifsAttrs & ATTR_READONLY)) {
                        /* If file is readonly on server, we would
                        not be able to write to it - so if any write
                        bit is enabled for user or group or other we
                        /* Windows ignores set to zero */
                        if (time_buf.Attributes == 0)
                                time_buf.Attributes |= cpu_to_le32(ATTR_NORMAL);
+
+                       /* reset local inode permissions to normal */
+                       if (!(cifs_sb->mnt_cifs_flags & CIFS_MOUNT_DYNPERM)) {
+                               attrs->ia_mode &= ~(S_IALLUGO);
+                               if (S_ISDIR(inode->i_mode))
+                                       attrs->ia_mode |=
+                                               cifs_sb->mnt_dir_mode;
+                               else
+                                       attrs->ia_mode |=
+                                               cifs_sb->mnt_file_mode;
+                       }
+               } else if (!(cifs_sb->mnt_cifs_flags & CIFS_MOUNT_DYNPERM)) {
+                       /* ignore mode change - ATTR_READONLY hasn't changed */
+                       attrs->ia_valid &= ~ATTR_MODE;
                }
        }