diff --git a/include/cpu.h b/include/cpu.h
index 9f0639fc..06d03589 100644
--- a/include/cpu.h
+++ b/include/cpu.h
@@ -16,6 +16,8 @@
  *  Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA 02111-1307, USA.
  */
 
+/* $Id: cpu.h,v 1.52 2008-01-16 20:16:31 c2woody Exp $ */
+
 #ifndef DOSBOX_CPU_H
 #define DOSBOX_CPU_H
 
@@ -36,6 +38,8 @@
 #define CPU_AUTODETERMINE_SHIFT		0x02
 #define CPU_AUTODETERMINE_MASK		0x03
 
+#define CPU_CYCLES_LOWER_LIMIT		100
+
 /* CPU Cycle Timing */
 extern Bit32s CPU_Cycles;
 extern Bit32s CPU_CycleLeft;
@@ -45,6 +49,7 @@ extern Bit32s CPU_CyclePercUsed;
 extern Bit32s CPU_CycleLimit;
 extern Bit64s CPU_IODelayRemoved;
 extern bool CPU_CycleAutoAdjust;
+extern bool CPU_SkipCycleAutoAdjust;
 extern Bitu CPU_AutoDetermineMode;
 
 /* Some common Defines */
@@ -61,6 +66,11 @@ Bits CPU_Core_Dyn_X86_Trap_Run(void);
 Bits CPU_Core_Dynrec_Run(void);
 Bits CPU_Core_Dynrec_Trap_Run(void);
 
+void CPU_Enable_SkipAutoAdjust(void);
+void CPU_Disable_SkipAutoAdjust(void);
+void CPU_Reset_AutoAdjust(void);
+
+
 //CPU Stuff
 
 extern Bit16u parity_lookup[256];
diff --git a/src/cpu/cpu.cpp b/src/cpu/cpu.cpp
index b7441482..cb452b91 100644
--- a/src/cpu/cpu.cpp
+++ b/src/cpu/cpu.cpp
@@ -1,5 +1,5 @@
 /*
- *  Copyright (C) 2002-2007  The DOSBox Team
+ *  Copyright (C) 2002-2008  The DOSBox Team
  *
  *  This program is free software; you can redistribute it and/or modify
  *  it under the terms of the GNU General Public License as published by
@@ -16,7 +16,7 @@
  *  Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA 02111-1307, USA.
  */
 
-/* $Id: cpu.cpp,v 1.106 2007-12-07 20:49:19 c2woody Exp $ */
+/* $Id: cpu.cpp,v 1.107 2008-01-16 20:17:15 c2woody Exp $ */
 
 #include <assert.h>
 #include <sstream>
@@ -57,8 +57,9 @@ Bit32s CPU_CycleUp = 0;
 Bit32s CPU_CycleDown = 0;
 Bit64s CPU_IODelayRemoved = 0;
 CPU_Decoder * cpudecoder;
-bool CPU_CycleAutoAdjust;
-Bitu CPU_AutoDetermineMode;
+bool CPU_CycleAutoAdjust = false;
+bool CPU_SkipCycleAutoAdjust = false;
+Bitu CPU_AutoDetermineMode = 0;
 
 void CPU_Core_Full_Init(void);
 void CPU_Core_Normal_Init(void);
@@ -2074,6 +2075,29 @@ static void CPU_CycleDecrease(bool pressed) {
 	}
 }
 
+void CPU_Enable_SkipAutoAdjust(void) {
+	if (CPU_CycleAutoAdjust) {
+		CPU_CycleMax /= 2;
+		if (CPU_CycleMax < CPU_CYCLES_LOWER_LIMIT)
+			CPU_CycleMax = CPU_CYCLES_LOWER_LIMIT;
+	}
+	CPU_SkipCycleAutoAdjust=true;
+}
+
+void CPU_Disable_SkipAutoAdjust(void) {
+	CPU_SkipCycleAutoAdjust=false;
+}
+
+
+extern Bit32s ticksDone;
+extern Bit32u ticksScheduled;
+
+void CPU_Reset_AutoAdjust(void) {
+	CPU_IODelayRemoved = 0;
+	ticksDone = 0;
+	ticksScheduled = 0;
+}
+
 class CPU: public Module_base {
 private:
 	static bool inited;
@@ -2138,6 +2162,7 @@ public:
 		CPU_AutoDetermineMode=CPU_AUTODETERMINE_NONE;
 		CPU_CycleLeft=0;//needed ?
 		CPU_Cycles=0;
+		CPU_SkipCycleAutoAdjust=false;
 
 		std::string str;
 		CommandLine cmd(0,section->Get_string("cycles"));
diff --git a/src/dosbox.cpp b/src/dosbox.cpp
index 3c5cd29c..7a8b3698 100644
--- a/src/dosbox.cpp
+++ b/src/dosbox.cpp
@@ -16,7 +16,7 @@
  *  Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA 02111-1307, USA.
  */
 
-/* $Id: dosbox.cpp,v 1.125 2008-01-09 20:34:21 c2woody Exp $ */
+/* $Id: dosbox.cpp,v 1.126 2008-01-16 20:16:31 c2woody Exp $ */
 
 #include <stdlib.h>
 #include <stdarg.h>
@@ -117,8 +117,8 @@ bool SDLNetInited;
 static Bit32u ticksRemain;
 static Bit32u ticksLast;
 static Bit32u ticksAdded;
-static Bit32s ticksDone;
-static Bit32u ticksScheduled;
+Bit32s ticksDone;
+Bit32u ticksScheduled;
 bool ticksLocked;
 
 static Bitu Normal_Loop(void) {
@@ -162,15 +162,17 @@ increaseticks:
 				ticksRemain = 20;
 			}
 			ticksAdded = ticksRemain;
-			if (CPU_CycleAutoAdjust) {
-				if(ticksScheduled >= 250 || ticksDone >= 250 || (ticksAdded > 15 && ticksScheduled >= 5) ) {
+			if (CPU_CycleAutoAdjust && !CPU_SkipCycleAutoAdjust) {
+				if (ticksScheduled >= 250 || ticksDone >= 250 || (ticksAdded > 15 && ticksScheduled >= 5) ) {
 					/* ratio we are aiming for is around 90% usage*/
 					Bits ratio = (ticksScheduled * (CPU_CyclePercUsed*90*1024/100/100)) / ticksDone;
 					Bit32s new_cmax = CPU_CycleMax;
 					Bit64s cproc = (Bit64s)CPU_CycleMax * (Bit64s)ticksScheduled;
-					if(cproc > 0) {
+					if (cproc > 0) {
+						/* ignore the cycles added due to the io delay code in order
+						   to have smoother auto cycle adjustments */
 						double ratioremoved = (double) CPU_IODelayRemoved / (double) cproc;
-						if(ratioremoved < 1.0) {
+						if (ratioremoved < 1.0) {
 							ratio = (Bits)((double)ratio * (1 - ratioremoved));
 							if (ratio <= 1024) 
 								new_cmax = (CPU_CycleMax * ratio) / 1024;
@@ -179,19 +181,32 @@ increaseticks:
 						}
 					}
 
-					// maybe care about not going negative
-					if (new_cmax > 0) 
-						CPU_CycleMax = new_cmax;
-					if (CPU_CycleLimit > 0) {
-						if (CPU_CycleMax>CPU_CycleLimit) CPU_CycleMax = CPU_CycleLimit;
+					if (new_cmax<CPU_CYCLES_LOWER_LIMIT)
+						new_cmax=CPU_CYCLES_LOWER_LIMIT;
+
+					/* ratios below 1% are considered to be dropouts due to
+					   temporary load imbalance, the cycles adjusting is skipped */
+					if (ratio>10) {
+						/* ratios below 12% along with a large time since the last update
+						   has taken place are most likely caused by heavy load through a
+						   different application, the cycles adjusting is skipped as well */
+						if ((ratio>120) || (ticksDone<700)) {
+							CPU_CycleMax = new_cmax;
+							if (CPU_CycleLimit > 0) {
+								if (CPU_CycleMax>CPU_CycleLimit) CPU_CycleMax = CPU_CycleLimit;
+							}
+						}
 					}
 					CPU_IODelayRemoved = 0;
 					ticksDone = 0;
 					ticksScheduled = 0;
 				} else if (ticksAdded > 15) {
+					/* ticksAdded > 15 but ticksScheduled < 5, lower the cycles
+					   but do not reset the scheduled/done ticks to take them into
+					   account during the next auto cycle adjustment */
 					CPU_CycleMax /= 3;
-					if (CPU_CycleMax < 100)
-					CPU_CycleMax = 100;
+					if (CPU_CycleMax < CPU_CYCLES_LOWER_LIMIT)
+						CPU_CycleMax = CPU_CYCLES_LOWER_LIMIT;
 				}
 			}
 		} else {
diff --git a/src/gui/sdlmain.cpp b/src/gui/sdlmain.cpp
index 9d15234b..64c5ddaa 100644
--- a/src/gui/sdlmain.cpp
+++ b/src/gui/sdlmain.cpp
@@ -1,5 +1,5 @@
 /*
- *  Copyright (C) 2002-2007  The DOSBox Team
+ *  Copyright (C) 2002-2008  The DOSBox Team
  *
  *  This program is free software; you can redistribute it and/or modify
  *  it under the terms of the GNU General Public License as published by
@@ -16,7 +16,7 @@
  *  Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA 02111-1307, USA.
  */
 
-/* $Id: sdlmain.cpp,v 1.137 2007-12-12 13:37:38 qbix79 Exp $ */
+/* $Id: sdlmain.cpp,v 1.138 2008-01-16 20:17:15 c2woody Exp $ */
 
 #ifndef _GNU_SOURCE
 #define _GNU_SOURCE
@@ -45,6 +45,7 @@
 #include "mapper.h"
 #include "vga.h"
 #include "keyboard.h"
+#include "cpu.h"
 
 //#define DISABLE_JOYSTICK
 
@@ -309,6 +310,7 @@ void GFX_ResetScreen(void) {
 	if (sdl.draw.callback)
 		(sdl.draw.callback)( GFX_CallBackReset );
 	GFX_Start();
+	CPU_Reset_AutoAdjust();
 }
 
 static int int_log2 (int val) {
@@ -1198,6 +1200,7 @@ void GFX_Events() {
 					if (sdl.desktop.fullscreen && !sdl.mouse.locked)
 						GFX_CaptureMouse();
 					SetPriority(sdl.priority.focus);
+					CPU_Disable_SkipAutoAdjust();
 				} else {
 					if (sdl.mouse.locked) {
 #ifdef WIN32
@@ -1211,6 +1214,7 @@ void GFX_Events() {
 					}
 					SetPriority(sdl.priority.nofocus);
 					MAPPER_LosingFocus();
+					CPU_Enable_SkipAutoAdjust();
 				}
 			}