diff -urp v2.6.35/linux/net/netfilter/ipvs/ip_vs_conn.c linux/net/netfilter/ipvs/ip_vs_conn.c
--- v2.6.35/linux/net/netfilter/ipvs/ip_vs_conn.c	2010-08-02 09:37:49.000000000 +0300
+++ linux/net/netfilter/ipvs/ip_vs_conn.c	2010-10-06 10:42:40.244948333 +0300
@@ -465,13 +465,15 @@ ip_vs_bind_dest(struct ip_vs_conn *cp, s
 
 	/* Bind with the destination and its corresponding transmitter */
 	if ((cp->flags & IP_VS_CONN_F_SYNC) &&
-	    (!(cp->flags & IP_VS_CONN_F_TEMPLATE)))
+	    (!(cp->flags & IP_VS_CONN_F_TEMPLATE))) {
+		/* connections inherit forwarding method from dest */
+		cp->flags &= ~IP_VS_CONN_F_FWD_MASK;
 		/* if the connection is not template and is created
 		 * by sync, preserve the activity flag.
 		 */
 		cp->flags |= atomic_read(&dest->conn_flags) &
 			     (~IP_VS_CONN_F_INACTIVE);
-	else
+	} else
 		cp->flags |= atomic_read(&dest->conn_flags);
 	cp->dest = dest;
 
diff -urp v2.6.35/linux/net/netfilter/ipvs/ip_vs_ctl.c linux/net/netfilter/ipvs/ip_vs_ctl.c
--- v2.6.35/linux/net/netfilter/ipvs/ip_vs_ctl.c	2010-05-17 10:49:01.000000000 +0300
+++ linux/net/netfilter/ipvs/ip_vs_ctl.c	2010-10-06 10:45:48.337316299 +0300
@@ -767,20 +767,6 @@ __ip_vs_update_dest(struct ip_vs_service
 	atomic_set(&dest->weight, udest->weight);
 	conn_flags = udest->conn_flags | IP_VS_CONN_F_INACTIVE;
 
-	/* check if local node and update the flags */
-#ifdef CONFIG_IP_VS_IPV6
-	if (svc->af == AF_INET6) {
-		if (__ip_vs_addr_is_local_v6(&udest->addr.in6)) {
-			conn_flags = (conn_flags & ~IP_VS_CONN_F_FWD_MASK)
-				| IP_VS_CONN_F_LOCALNODE;
-		}
-	} else
-#endif
-		if (inet_addr_type(&init_net, udest->addr.ip) == RTN_LOCAL) {
-			conn_flags = (conn_flags & ~IP_VS_CONN_F_FWD_MASK)
-				| IP_VS_CONN_F_LOCALNODE;
-		}
-
 	/* set the IP_VS_CONN_F_NOOUTPUT flag if not masquerading/NAT */
 	if ((conn_flags & IP_VS_CONN_F_FWD_MASK) != 0) {
 		conn_flags |= IP_VS_CONN_F_NOOUTPUT;
@@ -942,6 +928,10 @@ ip_vs_add_dest(struct ip_vs_service *svc
 		 */
 		IP_VS_WAIT_WHILE(atomic_read(&svc->usecnt) > 1);
 
+		spin_lock(&dest->dst_lock);
+		ip_vs_dst_reset(dest);
+		spin_unlock(&dest->dst_lock);
+
 		list_add(&dest->n_list, &svc->destinations);
 		svc->num_dests++;
 
@@ -1030,6 +1020,10 @@ ip_vs_edit_dest(struct ip_vs_service *sv
 	/* Wait until all other svc users go away */
 	IP_VS_WAIT_WHILE(atomic_read(&svc->usecnt) > 1);
 
+	spin_lock(&dest->dst_lock);
+	ip_vs_dst_reset(dest);
+	spin_unlock(&dest->dst_lock);
+
 	/* call the update_service, because server weight may be changed */
 	if (svc->scheduler->update_service)
 		svc->scheduler->update_service(svc);
diff -urp v2.6.35/linux/net/netfilter/ipvs/ip_vs_xmit.c linux/net/netfilter/ipvs/ip_vs_xmit.c
--- v2.6.35/linux/net/netfilter/ipvs/ip_vs_xmit.c	2010-08-02 09:37:49.000000000 +0300
+++ linux/net/netfilter/ipvs/ip_vs_xmit.c	2010-10-06 10:59:31.577947469 +0300
@@ -548,6 +548,10 @@ ip_vs_tunnel_xmit(struct sk_buff *skb, s
 
 	if (!(rt = __ip_vs_get_out_rt(cp, RT_TOS(tos))))
 		goto tx_error_icmp;
+	if (rt->rt_flags & RTCF_LOCAL) {
+		ip_rt_put(rt);
+		return NF_ACCEPT;
+	}
 
 	tdev = rt->u.dst.dev;
 
@@ -758,6 +762,10 @@ ip_vs_dr_xmit(struct sk_buff *skb, struc
 
 	if (!(rt = __ip_vs_get_out_rt(cp, RT_TOS(iph->tos))))
 		goto tx_error_icmp;
+	if (rt->rt_flags & RTCF_LOCAL) {
+		ip_rt_put(rt);
+		return NF_ACCEPT;
+	}
 
 	/* MTU checking */
 	mtu = dst_mtu(&rt->u.dst);