diff --git a/ChangeLog b/ChangeLog
index d4b36c31..826a4cfd 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,17 @@
+2008-07-31  Tatsuhiro Tsujikawa  <tujikawa at rednoah dot com>
+
+	Fixed broken gzip inflation.
+	Turn off segmented downloading if gzip content is smaller than or equal
+	to 1MiB and inflate the data on the fly, because HTTP response header
+	doesn't contain the length of inflated file we can't determin where
+	the chunk of data should be written.
+	On the other hand, if gzip content is larger than 1MB, then turn off
+	on the fly inflation, because some servers returns "content-type: gzip"
+	for *.tgz, *.gz files.
+	* src/DownloadCommand.cc
+	* src/HttpResponseCommand.cc
+	* src/HttpResponseCommand.h
+
 2008-07-31  Tatsuhiro Tsujikawa  <tujikawa at rednoah dot com>
 
 	Applied tizianomueller's patch to fix compile error.
diff --git a/src/DownloadCommand.cc b/src/DownloadCommand.cc
index bdd7e3b7..e6585e72 100644
--- a/src/DownloadCommand.cc
+++ b/src/DownloadCommand.cc
@@ -165,6 +165,8 @@ bool DownloadCommand::executeInternal() {
   if((!_transferEncodingDecoder.isNull() &&
       _transferEncodingDecoder->finished())
      || (_transferEncodingDecoder.isNull() && segment->complete())
+     || (!_contentEncodingDecoder.isNull() &&
+	 _contentEncodingDecoder->finished())
      || bufSize == 0) {
     logger->info(MSG_SEGMENT_DOWNLOAD_COMPLETED, cuid);
 
diff --git a/src/HttpResponseCommand.cc b/src/HttpResponseCommand.cc
index 0f4c3401..ddf3acdb 100644
--- a/src/HttpResponseCommand.cc
+++ b/src/HttpResponseCommand.cc
@@ -110,7 +110,8 @@ bool HttpResponseCommand::executeInternal()
 	(StringFormat(EX_DUPLICATE_FILE_DOWNLOAD,
 		      _requestGroup->getFilePath().c_str()).str());
     }
-    if(totalLength == 0 || httpResponse->isTransferEncodingSpecified()) {
+    if(totalLength == 0 || httpResponse->isTransferEncodingSpecified() ||
+       shouldInflateContentEncoding(httpResponse)) {
       // we ignore content-length when transfer-encoding is set
       dctx->setTotalLength(0);
       return handleOtherEncoding(httpResponse);
@@ -125,6 +126,23 @@ bool HttpResponseCommand::executeInternal()
   }
 }
 
+bool HttpResponseCommand::shouldInflateContentEncoding
+(const SharedHandle<HttpResponse>& httpResponse)
+{
+  // Basically, on the fly inflation cannot be made with segment download,
+  // because in each segment we don't know where the date should be written.
+  // So turn off segmented downloading.
+  // Meanwhile, Some server returns content-encoding: gzip for .tgz files.
+  // Those files tend to be large enough to speed up using segmented
+  // downloading. Therefore, I choose threshold size to determine on the fly
+  // inflation should be done. I expect gzipped content such as metalink xml
+  // files tend to be smaller than the threshold size, those contents are
+  // inflated on the fly properly.
+  return httpResponse->isContentEncodingSpecified() &&
+    httpResponse->getEntityLength() <=
+    static_cast<uint64_t>(e->option->getAsInt(PREF_SEGMENT_SIZE));
+}
+
 bool HttpResponseCommand::handleDefaultEncoding(const HttpResponseHandle& httpResponse)
 {
   HttpRequestHandle httpRequest = httpResponse->getHttpRequest();
@@ -255,7 +273,7 @@ HttpDownloadCommand* HttpResponseCommand::createHttpDownloadCommand
     (e->option->getAsInt(PREF_LOWEST_SPEED_LIMIT));
   command->setTransferEncodingDecoder(transferEncodingDecoder);
 
-  if(!contentEncodingDecoder.isNull()) {
+  if(shouldInflateContentEncoding(httpResponse)) {
     command->setContentEncodingDecoder(contentEncodingDecoder);
     // Since the compressed file's length are returned in the response header
     // and the decompressed file size is unknown at this point, disable file
diff --git a/src/HttpResponseCommand.h b/src/HttpResponseCommand.h
index 0a30d08f..6cb410be 100644
--- a/src/HttpResponseCommand.h
+++ b/src/HttpResponseCommand.h
@@ -55,6 +55,10 @@ private:
   HttpDownloadCommand* createHttpDownloadCommand(const SharedHandle<HttpResponse>& httpResponse);
 protected:
   bool executeInternal();
+
+  bool shouldInflateContentEncoding
+  (const SharedHandle<HttpResponse>& httpResponse);
+
 public:
   HttpResponseCommand(int32_t cuid,
 		      const SharedHandle<Request>& req,