diff -urN pure-ftpd-1.0.16c/src/ftpd.c pure-ftpd-1.0.17/src/ftpd.c
--- pure-ftpd-1.0.16c/src/ftpd.c	2003-10-19 20:05:08.000000000 +0200
+++ pure-ftpd-1.0.17/src/ftpd.c	2003-11-11 22:09:02.000000000 +0100
@@ -1168,12 +1168,6 @@
         }
 #endif
 
-#ifdef WITH_PRIVSEP
-# ifdef USE_CAPABILITIES
-        drop_login_caps();
-# endif
-#endif        
-
 #ifndef NON_ROOT_FTP
         if (authresult.uid > (uid_t) 0) {
 # ifdef WITH_PRIVSEP
@@ -1193,10 +1187,8 @@
         }
 #endif
 
-#ifndef WITH_PRIVSEP
-# ifdef USE_CAPABILITIES
+#ifdef USE_CAPABILITIES
         drop_login_caps();
-# endif
 #endif
 
 #ifndef MINIMAL
@@ -1678,9 +1670,6 @@
             die(421, LOG_ERR, MSG_CHROOT_FAILED);
         }
 #ifdef WITH_PRIVSEP
-# ifdef USE_CAPABILITIES
-        drop_login_caps();
-# endif
         if (setuid(authresult.uid) != 0 || seteuid(authresult.uid) != 0) {
             _EXIT(EXIT_FAILURE);
         }
@@ -1695,6 +1684,9 @@
 #  endif
 # endif
 #endif
+#ifdef USE_CAPABILITIES
+        drop_login_caps();
+#endif        
         chrooted = 1;
 #ifdef RATIOS
         if (ratio_for_non_anon == 0) {
@@ -1718,13 +1710,8 @@
     } else {
         addreply(230, MSG_CURRENT_DIR_IS, wd);
     }
-#ifndef WITH_PRIVSEP
-# ifdef USE_CAPABILITIES
-    drop_login_caps();
-# endif
-#endif
     logfile(LOG_INFO, MSG_IS_NOW_LOGGED_IN, account);
-# ifdef FTPWHO
+#ifdef FTPWHO
     if (shm_data_cur != NULL) {
         ftpwho_lock();
         strncpy(shm_data_cur->account, account,
@@ -1733,7 +1720,7 @@
         ftpwho_unlock();
         state_needs_update = 1;
     }
-# endif
+#endif
     loggedin = 1;
     if (getcwd(wd, sizeof wd - (size_t) 1U) == NULL) {
         wd[0] = '/';