diff --git a/Changelog b/Changelog
index 8948f7985..ab113a644 100644
--- a/Changelog
+++ b/Changelog
@@ -1,3 +1,6 @@
+0.32
+	* Fixed mkdir -m option so that it works.
+
 0.31
 	* I added a changelog for version 0.30. 
 	* adjusted find internals to make it smaller, and removed 
diff --git a/chmod_chown_chgrp.c b/chmod_chown_chgrp.c
index 8bda06861..a91b0a365 100644
--- a/chmod_chown_chgrp.c
+++ b/chmod_chown_chgrp.c
@@ -101,7 +101,7 @@ int chmod_chown_chgrp_main(int argc, char **argv)
     
     if ( whichApp == CHMOD_APP ) {
 	/* Find the specified modes */
-	mode &= S_ISVTX|S_ISUID|S_ISGID|S_IRWXU|S_IRWXG|S_IRWXO;
+	mode = ( 0 & (S_ISVTX|S_ISUID|S_ISGID|S_IRWXU|S_IRWXG|S_IRWXO));
 	if ( parse_mode(*argv, &mode) == FALSE ) {
 	    fprintf(stderr, "%s: Unknown mode: %s\n", invocationName, *argv);
 	    exit( FALSE);
diff --git a/coreutils/mkdir.c b/coreutils/mkdir.c
index 98c8d8f08..0d0a90ec3 100644
--- a/coreutils/mkdir.c
+++ b/coreutils/mkdir.c
@@ -33,21 +33,32 @@ static const char mkdir_usage[] = "Usage: mkdir [OPTION] DIRECTORY...\n"
 
 
 static int parentFlag = FALSE;
-static int permFlag = FALSE;
-static mode_t mode = 0777;
+static mode_t mode = 777;
 
 
 extern int mkdir_main(int argc, char **argv)
 {
+    int i=FALSE;
     argc--;
     argv++;
 
     /* Parse any options */
-    while (argc > 1 && **argv == '-') {
-	while (*++(*argv))
+    while (argc > 0 && **argv == '-') {
+	while (i==FALSE && *++(*argv)) {
 	    switch (**argv) {
 	    case 'm':
-		permFlag = TRUE;
+		if (--argc == 0)
+		    usage( mkdir_usage);
+		/* Find the specified modes */
+		mode = 0;
+		if ( parse_mode(*(++argv), &mode) == FALSE ) {
+		    fprintf(stderr, "Unknown mode: %s\n", *argv);
+		    exit( FALSE);
+		}
+		/* Set the umask for this process so it doesn't 
+		 * screw up whatever the user just entered. */
+		umask(0);
+		i=TRUE;
 		break;
 	    case 'p':
 		parentFlag = TRUE;
@@ -55,6 +66,7 @@ extern int mkdir_main(int argc, char **argv)
 	    default:
 		usage( mkdir_usage);
 	    }
+	}
 	argc--;
 	argv++;
     }
@@ -64,11 +76,13 @@ extern int mkdir_main(int argc, char **argv)
 	usage( mkdir_usage);
     }
 
-    while (--argc > 0) {
+    while (argc > 0) {
+	int status;
 	struct stat statBuf;
-	if (stat(*(++argv), &statBuf) != ENOENT) {
+	status=stat(*argv, &statBuf);
+	if (status != -1 && status != ENOENT ) {
 	    fprintf(stderr, "%s: File exists\n", *argv);
-	    return( FALSE);
+	    exit( FALSE);
 	}
 	if (parentFlag == TRUE)
 	    createPath(*argv, mode);
@@ -78,6 +92,8 @@ extern int mkdir_main(int argc, char **argv)
 		exit( FALSE);
 	    }
 	}
+	argc--;
+	argv++;
     }
     exit( TRUE);
 }
diff --git a/mkdir.c b/mkdir.c
index 98c8d8f08..0d0a90ec3 100644
--- a/mkdir.c
+++ b/mkdir.c
@@ -33,21 +33,32 @@ static const char mkdir_usage[] = "Usage: mkdir [OPTION] DIRECTORY...\n"
 
 
 static int parentFlag = FALSE;
-static int permFlag = FALSE;
-static mode_t mode = 0777;
+static mode_t mode = 777;
 
 
 extern int mkdir_main(int argc, char **argv)
 {
+    int i=FALSE;
     argc--;
     argv++;
 
     /* Parse any options */
-    while (argc > 1 && **argv == '-') {
-	while (*++(*argv))
+    while (argc > 0 && **argv == '-') {
+	while (i==FALSE && *++(*argv)) {
 	    switch (**argv) {
 	    case 'm':
-		permFlag = TRUE;
+		if (--argc == 0)
+		    usage( mkdir_usage);
+		/* Find the specified modes */
+		mode = 0;
+		if ( parse_mode(*(++argv), &mode) == FALSE ) {
+		    fprintf(stderr, "Unknown mode: %s\n", *argv);
+		    exit( FALSE);
+		}
+		/* Set the umask for this process so it doesn't 
+		 * screw up whatever the user just entered. */
+		umask(0);
+		i=TRUE;
 		break;
 	    case 'p':
 		parentFlag = TRUE;
@@ -55,6 +66,7 @@ extern int mkdir_main(int argc, char **argv)
 	    default:
 		usage( mkdir_usage);
 	    }
+	}
 	argc--;
 	argv++;
     }
@@ -64,11 +76,13 @@ extern int mkdir_main(int argc, char **argv)
 	usage( mkdir_usage);
     }
 
-    while (--argc > 0) {
+    while (argc > 0) {
+	int status;
 	struct stat statBuf;
-	if (stat(*(++argv), &statBuf) != ENOENT) {
+	status=stat(*argv, &statBuf);
+	if (status != -1 && status != ENOENT ) {
 	    fprintf(stderr, "%s: File exists\n", *argv);
-	    return( FALSE);
+	    exit( FALSE);
 	}
 	if (parentFlag == TRUE)
 	    createPath(*argv, mode);
@@ -78,6 +92,8 @@ extern int mkdir_main(int argc, char **argv)
 		exit( FALSE);
 	    }
 	}
+	argc--;
+	argv++;
     }
     exit( TRUE);
 }
diff --git a/utility.c b/utility.c
index a653bb325..421492dca 100644
--- a/utility.c
+++ b/utility.c
@@ -540,11 +540,9 @@ parse_mode( const char* s, mode_t* theMode)
 					groups |= S_ISUID|S_ISGID|S_IRWXU|S_IRWXG|S_IRWXO;
 				break;
 			default:
-				if ( isdigit(c) && c >= '0' && c <= '7' && mode == 0 && groups == 0 ) {
-					andMode = 0;
-					orMode = strtol(--s, NULL, 8);
-					*theMode &= andMode;
-					*theMode |= orMode;
+				if ( isdigit(c) && c >= '0' && c <= '7' && 
+						mode == 0 && groups == 0 ) {
+					*theMode = strtol(--s, NULL, 8);
 					return (TRUE);
 				}
 				else