diff --git a/src/sasl.c b/src/sasl.c
index 75cf3ac..5378457 100644
--- a/src/sasl.c
+++ b/src/sasl.c
@@ -128,11 +128,10 @@ static hash_t *_parse_digest_challenge(xmpp_ctx_t *ctx, const char *msg)
 		t++;
 		while ((*t != *s) && (*t != '\0'))
 		    t++;
+		value = _make_string(ctx, (char *)s+1, (t-s-1));
 		if (*t == *s) {
-		    value = _make_string(ctx, (char *)s+1, (t-s-2));
 		    s = t + 1;
 		} else {
-		    value = _make_string(ctx, (char *)s+1, (t-s-1));
 		    s = t;
 		}
 	    /* otherwise, accumulate a value ending in ',' or '\0' */
@@ -189,7 +188,7 @@ static char *_add_key(xmpp_ctx_t *ctx, hash_t *table, const char *key,
     value = hash_get(table, key);
     if (value == NULL) {
 	xmpp_error(ctx, "SASL", "couldn't retrieve value for '%s'", key);
-	value = "\"\"";
+	value = "";
     }
     if (quote) {
 	qvalue = _make_quoted(ctx, value);
@@ -222,13 +221,12 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
 			const char *jid, const char *password) {
     hash_t *table;
     char *result = NULL;
-    char *node, *domain;
+    char *node, *domain, *realm;
     char *value;
-    unsigned char *A1, *A2; /* MD5 hashed versions */
     char *response;
     int rlen;
     struct MD5Context MD5;
-    unsigned char digest[16];
+    unsigned char digest[16], HA1[16], HA2[16];
     char hex[32];
 
     /* our digest response is 
@@ -237,7 +235,7 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
 	))
 
        where KD(k, s) = MD5(k ':' s),
-	A1 = MD5( node ':' domain ':' password ) ':' nonce ':' cnonce
+	A1 = MD5( node ':' realm ':' password ) ':' nonce ':' cnonce
 	A2 = "AUTHENTICATE" ':' "xmpp/" domain
 
        If there is an authzid it is ':'-appended to A1 */
@@ -252,6 +250,14 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
     node = xmpp_jid_node(ctx, jid);
     domain = xmpp_jid_domain(ctx, jid);
 
+    /* generate default realm of domain if one didn't come from the
+       server */
+    realm = hash_get(table, "realm");
+    if (realm == NULL || strlen(realm) == 0) {
+	hash_add(table, "realm", xmpp_strdup(ctx, domain));
+	realm = hash_get(table, "realm");
+    }
+
     /* add our response fields */
     hash_add(table, "username", xmpp_strdup(ctx, node));
     /* TODO: generate a random cnonce */
@@ -266,17 +272,19 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
     
     /* generate response */
 
-    /* construct MD5(A1) */
+    /* construct MD5(node : realm : password) */
     MD5Init(&MD5);
     MD5Update(&MD5, (unsigned char *)node, strlen(node));
     MD5Update(&MD5, (unsigned char *)":", 1);
-    MD5Update(&MD5, (unsigned char *)domain, strlen(domain));
+    MD5Update(&MD5, (unsigned char *)realm, strlen(realm));
     MD5Update(&MD5, (unsigned char *)":", 1);
     MD5Update(&MD5, (unsigned char *)password, strlen(password));
     MD5Final(digest, &MD5);
 
+    /* digest now contains the first field of A1 */
+
     MD5Init(&MD5);
-    MD5Update(&MD5, (unsigned char *)digest, 16);
+    MD5Update(&MD5, digest, 16);
     MD5Update(&MD5, (unsigned char *)":", 1);
     value = hash_get(table, "nonce");
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
@@ -285,28 +293,32 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
     MD5Final(digest, &MD5);
 
-    A1 = xmpp_alloc(ctx, 16);
-    memcpy(A1, digest, 16);
+    /* now digest is MD5(A1) */
+    memcpy(HA1, digest, 16);
 
     /* construct MD5(A2) */
     MD5Init(&MD5);
     MD5Update(&MD5, (unsigned char *)"AUTHENTICATE:", 13);
     value = hash_get(table, "digest-uri");
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
+    if (strcmp(hash_get(table, "qop"), "auth") != 0) {
+	MD5Update(&MD5, (unsigned char *)":00000000000000000000000000000000",
+		  33);
+    }
     MD5Final(digest, &MD5);
 
-    A2 = xmpp_alloc(ctx, 16);
-    memcpy(A2, digest, 16);
+    memcpy(HA2, digest, 16);
 
     /* construct response */
     MD5Init(&MD5);
-    _digest_to_hex((char *)A1, hex);
+    _digest_to_hex((char *)HA1, hex);
     MD5Update(&MD5, (unsigned char *)hex, 32);
     MD5Update(&MD5, (unsigned char *)":", 1);
     value = hash_get(table, "nonce");
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
     MD5Update(&MD5, (unsigned char *)":", 1);
-    MD5Update(&MD5, (unsigned char *)"00000001", 8);
+    value = hash_get(table, "nc");
+    MD5Update(&MD5, (unsigned char *)value, strlen(value));
     MD5Update(&MD5, (unsigned char *)":", 1);
     value = hash_get(table, "cnonce");
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
@@ -314,7 +326,7 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
     value = hash_get(table, "qop");
     MD5Update(&MD5, (unsigned char *)value, strlen(value));
     MD5Update(&MD5, (unsigned char *)":", 1);
-    _digest_to_hex((char *)A2, hex);
+    _digest_to_hex((char *)HA2, hex);
     MD5Update(&MD5, (unsigned char *)hex, 32);
     MD5Final(digest, &MD5);
 
@@ -324,9 +336,6 @@ char *sasl_digest_md5(xmpp_ctx_t *ctx, const char *challenge,
     response[32] = '\0';
     hash_add(table, "response", response);
 
-    xmpp_free(ctx, A1);
-    xmpp_free(ctx, A2);
-
     /* construct reply */
     result = NULL;
     rlen = 0;