diff --git a/mozilla/netwerk/base/src/nsURLHelper.cpp b/mozilla/netwerk/base/src/nsURLHelper.cpp
index eeadc01a607..a906eb5ad08 100644
--- a/mozilla/netwerk/base/src/nsURLHelper.cpp
+++ b/mozilla/netwerk/base/src/nsURLHelper.cpp
@@ -359,12 +359,6 @@ net_CoalesceDirs(netCoalesceFlags flags, char* path)
             *urlPtr++ = *fwdPtr;
         }
     }
-    // Copy remaining stuff past the #?;
-    for (; *fwdPtr != '\0'; ++fwdPtr)
-    {
-        *urlPtr++ = *fwdPtr;
-    }
-    *urlPtr = '\0';  // terminate the url 
 
     /* 
      *  Now lets remove trailing . case
@@ -372,7 +366,14 @@ net_CoalesceDirs(netCoalesceFlags flags, char* path)
      */
 
     if ((urlPtr > (path+1)) && (*(urlPtr-1) == '.') && (*(urlPtr-2) == '/'))
-        *(urlPtr-1) = '\0';
+        urlPtr--;
+
+    // Copy remaining stuff past the #?;
+    for (; *fwdPtr != '\0'; ++fwdPtr)
+    {
+        *urlPtr++ = *fwdPtr;
+    }
+    *urlPtr = '\0';  // terminate the url 
 }
 
 nsresult
diff --git a/mozilla/netwerk/test/unit/test_bug321706.js b/mozilla/netwerk/test/unit/test_bug321706.js
new file mode 100644
index 00000000000..e0fe019c3e5
--- /dev/null
+++ b/mozilla/netwerk/test/unit/test_bug321706.js
@@ -0,0 +1,14 @@
+const Cc = Components.classes;
+const Ci = Components.interfaces;
+
+const url = "http://foo.com/folder/file?/.";
+
+function run_test() {
+  var ios = Cc["@mozilla.org/network/io-service;1"].
+    getService(Ci.nsIIOService);
+
+  var newURI = ios.newURI(url, null, null);
+  do_check_eq(newURI.spec, url);
+  do_check_eq(newURI.path, "/folder/file?/.");
+  do_check_eq(newURI.resolve("./file?/."), url);
+}