diff --git a/libxml2.spec b/libxml2.spec
index 4e0f83e..642e69c 100644
--- a/libxml2.spec
+++ b/libxml2.spec
@@ -1,7 +1,7 @@
 Summary: Library providing XML and HTML support
 Name: libxml2
 Version: 2.7.1
-Release: 1%{?dist}%{?extra_release}
+Release: 2%{?dist}%{?extra_release}
 License: MIT
 Group: Development/Libraries
 Source: ftp://xmlsoft.org/libxml2-%{version}.tar.gz
@@ -9,6 +9,7 @@ BuildRoot: %{_tmppath}/%{name}-%{version}-root
 BuildRequires: python python-devel zlib-devel
 URL: http://xmlsoft.org/
 Patch0: libxml2-multilib.patch
+Patch1: predefined_entity.patch
 
 %description
 This library allows to manipulate XML files. It includes support 
@@ -67,6 +68,7 @@ at parse time or later once the document has been modified.
 %prep
 %setup -q
 %patch0 -p1
+%patch1 -p0
 
 %build
 %configure
@@ -141,6 +143,9 @@ rm -fr %{buildroot}
 %doc doc/python.html
 
 %changelog
+* Thu Oct  2 2008 Daniel Veillard <veillard@redhat.com> 2.7.1-2.fc10
+- fix a nasty bug in 2.7.x, http://bugzilla.gnome.org/show_bug.cgi?id=554660
+
 * Mon Sep  1 2008 Daniel Veillard <veillard@redhat.com> 2.7.1-1.fc10
 - fix python serialization which was broken in 2.7.0
 - Resolve: rhbz#460774
diff --git a/predefined_entity.patch b/predefined_entity.patch
new file mode 100644
index 0000000..10d1c3f
--- /dev/null
+++ b/predefined_entity.patch
@@ -0,0 +1,16 @@
+Index: parser.c
+===================================================================
+--- parser.c	(revision 3795)
++++ parser.c	(working copy)
+@@ -7225,8 +7225,10 @@ xmlParseStringEntityRef(xmlParserCtxtPtr
+      * Predefined entites override any extra definition
+      */
+     ent = xmlGetPredefinedEntity(name);
+-    if (ent != NULL)
++    if (ent != NULL) {
++        *str = ptr;
+         return(ent);
++    }
+ 
+     /*
+      * Increate the number of entity references parsed