diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index ee073bc..5473538 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,8 @@
+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
@@ -327,39 +327,46 @@ 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."
-  ;; 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))
-  (let ((root nil)
-        (prev-file file)
-        ;; `user' is not initialized outside the loop because
-        ;; `file' may not exist, so we may have to walk up part of the
-        ;; hierarchy before we find the "initial UID".
-        (user nil)
-        try)
-    (while (not (or root
-                    (null file)
-                    ;; As a heuristic, we stop looking up the hierarchy of
-                    ;; directories as soon as we find a directory belonging
-                    ;; to another user.  This should save us from looking in
-                    ;; things like /net and /afs.  This assumes that all the
-                    ;; files inside a project belong to the same user.
-                    (let ((prev-user user))
-                      (setq user (nth 2 (file-attributes file)))
-                      (and prev-user (not (equal user prev-user))))
-                    (string-match vc-ignore-dir-regexp file)))
-      (setq try (file-exists-p (expand-file-name witness file)))
-      (cond ((and invert (not try)) (setq root prev-file))
-            ((and (not invert) try) (setq root file))
-            ((equal file (setq prev-file file
-                               file (file-name-directory
-                                     (directory-file-name file))))
-             (setq file nil))))
-    ;; Handle the case where ~/WITNESS exists and the original FILE is "~".
-    ;; (This occurs, for example, when placing dotfiles under RCS.)
-    (when (and (not root) invert prev-file)
-      (setq root prev-file))
-    root))
+  (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))
+    (let ((root nil)
+          (prev-file file)
+          ;; `user' is not initialized outside the loop because
+          ;; `file' may not exist, so we may have to walk up part of the
+          ;; hierarchy before we find the "initial UID".
+          (user nil)
+          try)
+      (while (not (or root
+                      (null file)
+                      ;; As a heuristic, we stop looking up the hierarchy of
+                      ;; directories as soon as we find a directory belonging
+                      ;; to another user.  This should save us from looking in
+                      ;; things like /net and /afs.  This assumes that all the
+                      ;; files inside a project belong to the same user.
+                      (let ((prev-user user))
+                        (setq user (nth 2 (file-attributes file)))
+                        (and prev-user (not (equal user prev-user))))
+                      (string-match vc-ignore-dir-regexp file)))
+        (setq try (file-exists-p (expand-file-name witness file)))
+        (cond ((and invert (not try)) (setq root prev-file))
+              ((and (not invert) try) (setq root file))
+              ((equal file (setq prev-file file
+                                 file (file-name-directory
+                                       (directory-file-name file))))
+               (setq file nil))))
+      ;; Handle the case where ~/WITNESS exists and the original FILE is "~".
+      ;; (This occurs, for example, when placing dotfiles under RCS.)
+      (when (and (not root) invert prev-file)
+        (setq root prev-file))
+      root)))
 
 ;; Access functions to file properties
 ;; (Properties should be _set_ using vc-file-setprop, but