diff -rup gtk-vnc-0.3.8.orig/src/vncdisplay.c gtk-vnc-0.3.8.new/src/vncdisplay.c
--- gtk-vnc-0.3.8.orig/src/vncdisplay.c	2009-03-27 15:09:37.000000000 +0000
+++ gtk-vnc-0.3.8.new/src/vncdisplay.c	2009-03-27 15:10:14.000000000 +0000
@@ -1034,7 +1034,7 @@ static gboolean on_pointer_type_change(v
 	VncDisplay *obj = VNC_DISPLAY(opaque);
 	VncDisplayPrivate *priv = obj->priv;
 
-	if (absolute && priv->in_pointer_grab && !priv->grab_pointer)
+	if (absolute && priv->in_pointer_grab && priv->grab_pointer)
 		do_pointer_ungrab(obj, FALSE);
 
 	priv->absolute = absolute;