2.6.0-test8-bk3 net/ipv4/tcp.c change broken?

The 2.6.0-test8-bk3 change to delay pending signals checking in
net/ipv4/tcp.c appears to be broken.

On machine A I run X and an xterm. Within that xterm I rlogin to
machine B. On machine B I start emacs in text mode (emacs -nw).

When machine A runs 2.6.0-test8-bk2 or older, emacs works as usual:
it uses the xterm's entire size, and responds correctly and instantly
to control characters like ^S (I-search, not xoff) and ^G (Quit).

When machine A runs 2.6.0-test8-bk3 or later, emacs starts in a
tiny 24 rows by 80 columns mode, ^S incorrectly sends xoff, ^G
isn't seen by emacs until after a one second delay, and similarly
there is a one second delay between exiting emacs and getting the
next shell prompt. While running emacs, if I beat on it with ^G
and ^L it eventually (after about 5-10 seconds) goes into the
xterm's full rows/columns mode.

Reverting 2.6.0-test8-bk3's net/ipv4/tcp.c patch (included below)
fixes these problems.

/Mikael

diff -ruN linux-2.6.0-test8-bk2/net/ipv4/tcp.c linux-2.6.0-test8-bk3/net/ipv4/tcp.c

--- linux-2.6.0-test8-bk2/net/ipv4/tcp.c	2003-10-26 15:52:26.000000000 +0100
+++ linux-2.6.0-test8-bk3/net/ipv4/tcp.c	2003-10-26 15:51:58.000000000 +0100

@@ -1540,17 +1540,6 @@
 		if (copied && tp->urg_data && tp->urg_seq == *seq)
 			break;
 
-		/* We need to check signals first, to get correct SIGURG
-		 * handling. FIXME: Need to check this doesn't impact 1003.1g
-		 * and move it down to the bottom of the loop
-		 */
-		if (signal_pending(current)) {
-			if (copied)
-				break;
-			copied = timeo ? sock_intr_errno(timeo) : -EAGAIN;
-			break;
-		}
-
 		/* Next get a buffer. */
 
 		skb = skb_peek(&sk->sk_receive_queue);

@@ -1587,6 +1576,7 @@
 			    sk->sk_state == TCP_CLOSE ||
 			    (sk->sk_shutdown & RCV_SHUTDOWN) ||
 			    !timeo ||
+			    signal_pending(current) ||
 			    (flags & MSG_PEEK))
 				break;
 		} else {

@@ -1616,6 +1606,11 @@
 				copied = -EAGAIN;
 				break;
 			}
+
+			if (signal_pending(current)) {
+				copied = sock_intr_errno(timeo);
+				break;
+			}
 		}
 
 		cleanup_rbuf(sk, copied);