if (cnx->state & VETH_STATE_RESET) {
                int i;
 
-               del_timer(&cnx->ack_timer);
-
                if (cnx->state & VETH_STATE_OPEN)
                        HvCallEvent_closeLpEventPath(cnx->remote_lp,
                                                     HvLpEvent_Type_VirtualLan);
 
-               /* reset ack data */
+               /*
+                * Reset ack data. This prevents the ack_timer actually
+                * doing anything, even if it runs one more time when
+                * we drop the lock below.
+                */
                memset(&cnx->pending_acks, 0xff, sizeof (cnx->pending_acks));
                cnx->num_pending_acks = 0;
 
                if (cnx->msgs)
                        for (i = 0; i < VETH_NUMBUFFERS; ++i)
                                veth_recycle_msg(cnx, cnx->msgs + i);
+
+               /* Drop the lock so we can do stuff that might sleep or
+                * take other locks. */
                spin_unlock_irq(&cnx->lock);
+
+               del_timer_sync(&cnx->ack_timer);
                veth_flush_pending(cnx);
+
                spin_lock_irq(&cnx->lock);
+
                if (cnx->state & VETH_STATE_RESET)
                        goto restart;
        }
        veth_kick_statemachine(cnx);
        spin_unlock_irq(&cnx->lock);
 
+       /* Wait for the state machine to run. */
        flush_scheduled_work();
 
-       /* FIXME: not sure if this is necessary - will already have
-        * been deleted by the state machine, just want to make sure
-        * its not running any more */
-       del_timer_sync(&cnx->ack_timer);
-
        if (cnx->num_events > 0)
                mf_deallocate_lp_events(cnx->remote_lp,
                                      HvLpEvent_Type_VirtualLan,