diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index cf0472e..aebc149 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -384,6 +384,11 @@
 	* textmodes/sgml-mode.el (sgml-font-lock-syntactic-keywords):
 	Use syntax-ppss on a position *before* the char we want to change.
 
+2008-07-04  Justin Bogner  <mail@justinbogner.com>
+
+	* vc-hooks.el (vc-find-root):
+	Find the directory when using invert, not the file itself.
+
 2008-07-04  Dan Nicolaescu  <dann@ics.uci.edu>
 
 	* vc-dir.el (vc-dir-query-replace-regexp): New function.
diff --git a/lisp/vc-hooks.el b/lisp/vc-hooks.el
index 2ccbdcc..0662961 100644
--- a/lisp/vc-hooks.el
+++ b/lisp/vc-hooks.el
@@ -327,6 +327,13 @@ The function walks up the directory tree from FILE looking for WITNESS.
 If WITNESS if not found, return nil, otherwise return the root.
 Optional arg INVERT non-nil reverses the sense of the check;
 the root is the last directory for which WITNESS *is* found."
+  (when (not (file-directory-p file))
+    (setq file (file-name-directory file)))
+  ;; In the invert case, we should return nil if WITNESS doesn't exist
+  ;; in the first place.
+  (if (and invert
+           (not (file-exists-p (expand-file-name witness file))))
+      nil
   ;; Represent /home/luser/foo as ~/foo so that we don't try to look for
   ;; witnesses in /home or in /.
   (setq file (abbreviate-file-name file))
@@ -359,7 +366,7 @@ the root is the last directory for which WITNESS *is* found."
     ;; (This occurs, for example, when placing dotfiles under RCS.)
     (when (and (not root) invert prev-file)
       (setq root prev-file))
-    root))
+      root)))
 
 ;; Access functions to file properties
 ;; (Properties should be _set_ using vc-file-setprop, but