diff -ru kernel/sys.c.orig kernel/sys.c
--- kernel/sys.c.orig	Mon Oct 16 22:58:51 2000
+++ kernel/sys.c	Mon Mar 12 23:40:26 2001
@@ -449,9 +449,13 @@
 extern inline void cap_emulate_setxuid(int old_ruid, int old_euid, 
 				       int old_suid)
 {
-	if ((old_ruid == 0 || old_euid == 0 || old_suid == 0) &&
-	    (current->uid != 0 && current->euid != 0 && current->suid != 0) &&
+	if ((!cap_isclear(current->cap_inheritable) ||
+	     !cap_isclear(current->cap_permitted) ||
+	     !cap_isclear(current->cap_effective)) &&
+	    (current->uid != old_ruid && current->euid != old_euid &&
+	     current->suid != old_suid) &&
 	    !current->keep_capabilities) {
+		cap_clear(current->cap_inheritable);
 		cap_clear(current->cap_permitted);
 		cap_clear(current->cap_effective);
 	}