diff --git a/libtransmission/peer-io.c b/libtransmission/peer-io.c
index b5bda5f01..71de57ec1 100644
--- a/libtransmission/peer-io.c
+++ b/libtransmission/peer-io.c
@@ -171,20 +171,26 @@ tr_peerIoNewOutgoing( struct tr_handle      * handle,
                          tr_netOpenTCP( in_addr, port, 0 ) );
 }
 
-void
-tr_peerIoFree( tr_peerIo * c )
+static void
+io_dtor( void * vio )
 {
-    if( c != NULL )
+    tr_peerIo * io = vio;
+
+    bufferevent_free( io->bufev );
+    tr_netClose( io->socket );
+    tr_cryptoFree( io->crypto );
+    tr_free( io );
+}
+
+void
+tr_peerIoFree( tr_peerIo * io )
+{
+    if( io != NULL )
     {
-        c->canRead = NULL;
-        c->didWrite = NULL;
-        c->gotError = NULL;
-        bufferevent_free( c->bufev );
-        tr_netClose( c->socket );
-
-        tr_cryptoFree( c->crypto );
-
-        tr_free( c );
+        io->canRead = NULL;
+        io->didWrite = NULL;
+        io->gotError = NULL;
+        tr_runInEventThread( io->handle, io_dtor, io );
     }
 }
 
diff --git a/libtransmission/peer-mgr.c b/libtransmission/peer-mgr.c
index 5f956b8bd..7365d0090 100644
--- a/libtransmission/peer-mgr.c
+++ b/libtransmission/peer-mgr.c
@@ -96,6 +96,7 @@ struct peer_atom
 typedef struct
 {
     uint8_t hash[SHA_DIGEST_LENGTH];
+    tr_ptrArray * outgoingHandshakes; /* tr_handshake */
     tr_ptrArray * pool; /* struct peer_atom */
     tr_ptrArray * peers; /* tr_peer */
     tr_timer * reconnectTimer;
@@ -112,10 +113,10 @@ Torrent;
 
 struct tr_peerMgr
 {
+    int connectionCount;
     tr_handle * handle;
     tr_ptrArray * torrents; /* Torrent */
-    int connectionCount;
-    tr_ptrArray * handshakes; /* in-process */
+    tr_ptrArray * incomingHandshakes; /* tr_handshake */
 };
 
 /**
@@ -195,9 +196,9 @@ handshakeCompare( const void * a, const void * b )
 }
 
 static tr_handshake*
-getExistingHandshake( tr_peerMgr * mgr, const struct in_addr * in_addr )
+getExistingHandshake( tr_ptrArray * handshakes, const struct in_addr * in_addr )
 {
-    return tr_ptrArrayFindSorted( mgr->handshakes,
+    return tr_ptrArrayFindSorted( handshakes,
                                   in_addr,
                                   handshakeCompareToAddr );
 }
@@ -284,12 +285,15 @@ peerIsKnown( const Torrent * t, const struct in_addr * addr )
 }
 
 static int
-peerIsInUse( const Torrent * t, const struct in_addr * addr )
+peerIsInUse( const Torrent * ct, const struct in_addr * addr )
 {
+    Torrent * t = (Torrent*) ct;
+
     assert( torrentIsLocked ( t ) );
 
-    return ( getExistingPeer( (Torrent*)t, addr ) != NULL )
-        || ( getExistingHandshake( ((Torrent*)t)->manager, addr ) != NULL );
+    return ( getExistingPeer( t, addr ) != NULL )
+        || ( getExistingHandshake( t->outgoingHandshakes, addr ) != NULL )
+        || ( getExistingHandshake( t->manager->incomingHandshakes, addr ) != NULL );
 }
 
 static tr_peer*
@@ -374,13 +378,16 @@ removeAllPeers( Torrent * t )
 
 /* torrent must have already been removed from manager->torrents */
 static void
-freeTorrent( Torrent * t )
+torrentDestructor( Torrent * t )
 {
     uint8_t hash[SHA_DIGEST_LENGTH];
 
     assert( t != NULL );
+    assert( !t->isRunning );
     assert( t->peers != NULL );
     assert( torrentIsLocked( t ) );
+    assert( tr_ptrArrayEmpty( t->outgoingHandshakes ) );
+    assert( tr_ptrArrayEmpty( t->peers ) );
 
     memcpy( hash, t->hash, SHA_DIGEST_LENGTH );
 
@@ -390,10 +397,50 @@ freeTorrent( Torrent * t )
 
     tr_bitfieldFree( t->requested );
     tr_ptrArrayFree( t->pool, (PtrArrayForeachFunc)tr_free );
-    tr_ptrArrayFree( t->peers, (PtrArrayForeachFunc)freePeer );
+    tr_ptrArrayFree( t->outgoingHandshakes, NULL );
+
     tr_free( t );
 }
 
+static int reconnectPulse( void * vtorrent );
+
+static void
+restartReconnectTimer( Torrent * t )
+{
+    tr_timerFree( &t->reconnectTimer );
+    if( t->isRunning )
+        t->reconnectTimer = tr_timerNew( t->manager->handle, reconnectPulse, t, RECONNECT_PERIOD_MSEC );
+}
+
+static int rechokePulse( void * vtorrent );
+
+static void
+restartChokeTimer( Torrent * t )
+{
+    tr_timerFree( &t->rechokeTimer );
+    if( t->isRunning )
+        t->rechokeTimer = tr_timerNew( t->manager->handle, rechokePulse, t, RECHOKE_PERIOD_MSEC );
+}
+
+static Torrent*
+torrentConstructor( tr_peerMgr * manager, tr_torrent * tor )
+{
+    Torrent * t;
+
+    t = tr_new0( Torrent, 1 );
+    t->manager = manager;
+    t->tor = tor;
+    t->pool = tr_ptrArrayNew( );
+    t->peers = tr_ptrArrayNew( );
+    t->outgoingHandshakes = tr_ptrArrayNew( );
+    t->requested = tr_bitfieldNew( tor->blockCount );
+    restartChokeTimer( t );
+    restartReconnectTimer( t );
+    memcpy( t->hash, tor->info.hash, SHA_DIGEST_LENGTH );
+
+    return t;
+}
+
 /**
 ***
 **/
@@ -464,7 +511,7 @@ tr_peerMgrNew( tr_handle * handle )
     tr_peerMgr * m = tr_new0( tr_peerMgr, 1 );
     m->handle = handle;
     m->torrents = tr_ptrArrayNew( );
-    m->handshakes = tr_ptrArrayNew( );
+    m->incomingHandshakes = tr_ptrArrayNew( );
     return m;
 }
 
@@ -474,13 +521,13 @@ tr_peerMgrFree( tr_peerMgr * manager )
     managerLock( manager );
 
     /* free the torrents. */
-    tr_ptrArrayFree( manager->torrents, (PtrArrayForeachFunc)freeTorrent );
+    tr_ptrArrayFree( manager->torrents, (PtrArrayForeachFunc)torrentDestructor );
 
     /* free the handshakes.  Abort invokes handshakeDoneCB(), which removes
      * the item from manager->handshakes, so this is a little roundabout... */
-    while( !tr_ptrArrayEmpty( manager->handshakes ) )
-        tr_handshakeAbort( tr_ptrArrayNth( manager->handshakes, 0 ) );
-    tr_ptrArrayFree( manager->handshakes, NULL );
+    while( !tr_ptrArrayEmpty( manager->incomingHandshakes ) )
+        tr_handshakeAbort( tr_ptrArrayNth( manager->incomingHandshakes, 0 ) );
+    tr_ptrArrayFree( manager->incomingHandshakes, NULL );
 
     managerUnlock( manager );
     tr_free( manager );
@@ -761,34 +808,6 @@ broadcastGotBlock( Torrent * t, uint32_t index, uint32_t offset, uint32_t length
     tr_free( peers );
 }
 
-/**
-***
-**/
-
-static int reconnectPulse( void * vtorrent );
-
-static void
-restartReconnectTimer( Torrent * t )
-{
-    tr_timerFree( &t->reconnectTimer );
-    if( t->isRunning )
-        t->reconnectTimer = tr_timerNew( t->manager->handle, reconnectPulse, t, RECONNECT_PERIOD_MSEC );
-}
-
-/**
-***
-**/
-
-static int rechokePulse( void * vtorrent );
-
-static void
-restartChokeTimer( Torrent * t )
-{
-    tr_timerFree( &t->rechokeTimer );
-    if( t->isRunning )
-        t->rechokeTimer = tr_timerNew( t->manager->handle, rechokePulse, t, RECHOKE_PERIOD_MSEC );
-}
-
 static void
 msgsCallbackFunc( void * vpeer, void * vevent, void * vt )
 {
@@ -853,6 +872,7 @@ ensureAtomExists( Torrent * t, const struct in_addr * addr, uint16_t port, uint8
     }
 }
 
+/* FIXME: this is kind of a mess. */
 static void
 myHandshakeDoneCB( tr_handshake    * handshake,
                    tr_peerIo       * io,
@@ -864,34 +884,33 @@ myHandshakeDoneCB( tr_handshake    * handshake,
     uint16_t port;
     const struct in_addr * in_addr;
     tr_peerMgr * manager = (tr_peerMgr*) vmanager;
-    const uint8_t * hash = NULL;
     Torrent * t;
     tr_handshake * ours;
 
     assert( io != NULL );
     assert( isConnected==0 || isConnected==1 );
 
-    ours = tr_ptrArrayRemoveSorted( manager->handshakes,
-                                    handshake,
-                                    handshakeCompare );
+    t = tr_peerIoHasTorrentHash( io )
+        ? getExistingTorrent( manager, tr_peerIoGetTorrentHash( io ) )
+        : NULL;
+
+    if( tr_peerIoIsIncoming ( io ) )
+        ours = tr_ptrArrayRemoveSorted( manager->incomingHandshakes,
+                                        handshake, handshakeCompare );
+    else if( t != NULL )
+        ours = tr_ptrArrayRemoveSorted( t->outgoingHandshakes,
+                                        handshake, handshakeCompare );
+    else
+        ours = handshake;
+
     assert( ours != NULL );
     assert( ours == handshake );
 
-    in_addr = tr_peerIoGetAddress( io, &port );
-
-    if( !tr_peerIoHasTorrentHash( io ) ) /* incoming connection gone wrong? */
-    {
-        tr_peerIoFree( io );
-        --manager->connectionCount;
-        return;
-    }
-
-    hash = tr_peerIoGetTorrentHash( io );
-    t = getExistingTorrent( manager, hash );
-
     if( t != NULL )
         torrentLock( t );
 
+    in_addr = tr_peerIoGetAddress( io, &port );
+
     if( !t || !t->isRunning )
     {
         tr_peerIoFree( io );
@@ -930,22 +949,6 @@ myHandshakeDoneCB( tr_handshake    * handshake,
         torrentUnlock( t );
 }
 
-static void
-initiateHandshake( tr_peerMgr * manager, tr_peerIo * io )
-{
-    tr_handshake * handshake;
-
-    assert( io != NULL );
-
-    handshake = tr_handshakeNew( io,
-                                 manager->handle->encryptionMode,
-                                 myHandshakeDoneCB,
-                                 manager );
-    ++manager->connectionCount;
-
-    tr_ptrArrayInsertSorted( manager->handshakes, handshake, handshakeCompare );
-}
-
 void
 tr_peerMgrAddIncoming( tr_peerMgr      * manager,
                        struct in_addr  * addr,
@@ -954,10 +957,17 @@ tr_peerMgrAddIncoming( tr_peerMgr      * manager,
 {
     managerLock( manager );
 
-    if( getExistingHandshake( manager, addr ) == NULL )
+    if( getExistingHandshake( manager->incomingHandshakes, addr ) == NULL )
     {
         tr_peerIo * io = tr_peerIoNewIncoming( manager->handle, addr, port, socket );
-        initiateHandshake( manager, io );
+
+        tr_handshake * handshake = tr_handshakeNew( io,
+                                                    manager->handle->encryptionMode,
+                                                    myHandshakeDoneCB,
+                                                    manager );
+        ++manager->connectionCount;
+
+        tr_ptrArrayInsertSorted( manager->incomingHandshakes, handshake, handshakeCompare );
     }
 
     managerUnlock( manager );
@@ -1104,20 +1114,20 @@ tr_peerMgrStartTorrent( tr_peerMgr     * manager,
 static void
 stopTorrent( Torrent * t )
 {
-    int i, size;
-    tr_peer ** peers;
-
     assert( torrentIsLocked( t ) );
 
     t->isRunning = 0;
     tr_timerFree( &t->rechokeTimer );
     tr_timerFree( &t->reconnectTimer );
 
-    peers = getConnectedPeers( t, &size );
-    for( i=0; i<size; ++i )
-        disconnectPeer( peers[i] );
+    /* disconnect the peers. */
+    tr_ptrArrayForeach( t->peers, (PtrArrayForeachFunc)freePeer );
+    tr_ptrArrayClear( t->peers );
 
-    tr_free( peers );
+    /* disconnect the handshakes.  handshakeAbort calls handshakeDoneCB(),
+     * which removes the handshake from t->outgoingHandshakes... */
+    while( !tr_ptrArrayEmpty( t->outgoingHandshakes ) )
+        tr_handshakeAbort( tr_ptrArrayNth( t->outgoingHandshakes, 0 ) );
 }
 void
 tr_peerMgrStopTorrent( tr_peerMgr     * manager,
@@ -1141,16 +1151,7 @@ tr_peerMgrAddTorrent( tr_peerMgr * manager,
     assert( tor != NULL );
     assert( getExistingTorrent( manager, tor->info.hash ) == NULL );
 
-    t = tr_new0( Torrent, 1 );
-    t->manager = manager;
-    t->tor = tor;
-    t->pool = tr_ptrArrayNew( );
-    t->peers = tr_ptrArrayNew( );
-    t->requested = tr_bitfieldNew( tor->blockCount );
-    restartChokeTimer( t );
-    restartReconnectTimer( t );
-
-    memcpy( t->hash, tor->info.hash, SHA_DIGEST_LENGTH );
+    t = torrentConstructor( manager, tor );
     tr_ptrArrayInsertSorted( manager->torrents, t, torrentCompare );
 
     managerUnlock( manager );
@@ -1168,7 +1169,7 @@ tr_peerMgrRemoveTorrent( tr_peerMgr     * manager,
     assert( t != NULL );
     stopTorrent( t );
     tr_ptrArrayRemoveSorted( manager->torrents, t, torrentCompare );
-    freeTorrent( t );
+    torrentDestructor( t );
 
     managerUnlock( manager );
 }
@@ -1612,11 +1613,24 @@ reconnectPulse( void * vtorrent )
 
         /* add some new ones */
         nAdd = MAX_CONNECTED_PEERS_PER_TORRENT - peerCount;
-        for( i=0; i<nAdd && i<nCandidates && i<MAX_RECONNECTIONS_PER_PULSE; ++i ) {
+        for( i=0; i<nAdd && i<nCandidates && i<MAX_RECONNECTIONS_PER_PULSE; ++i )
+        {
+            tr_peerMgr * mgr = t->manager;
+
             struct peer_atom * atom = candidates[i];
-            tr_peerIo * io = tr_peerIoNewOutgoing( t->manager->handle, &atom->addr, atom->port, t->hash );
-            tordbg( t, "RECONNECT adding an outgoing connection...\n" );
-            initiateHandshake( t->manager, io );
+
+            tr_peerIo * io = tr_peerIoNewOutgoing( mgr->handle, &atom->addr, atom->port, t->hash );
+
+            tr_handshake * handshake = tr_handshakeNew( io,
+                                                        mgr->handle->encryptionMode,
+                                                        myHandshakeDoneCB,
+                                                        mgr );
+            ++mgr->connectionCount;
+
+            assert( tr_peerIoGetTorrentHash( io ) != NULL );
+
+            tr_ptrArrayInsertSorted( t->outgoingHandshakes, handshake, handshakeCompare );
+
             atom->time = time( NULL );
         }
 
diff --git a/libtransmission/transmission.c b/libtransmission/transmission.c
index 4689dd2a7..56839d061 100644
--- a/libtransmission/transmission.c
+++ b/libtransmission/transmission.c
@@ -312,7 +312,7 @@ tr_closeImpl( void * vh )
 void
 tr_close( tr_handle * h )
 {
-    assert( tr_torrentCount( h ) == 0 );
+    //assert( tr_torrentCount( h ) == 0 );
 
     tr_runInEventThread( h, tr_closeImpl, h );
     while( !h->isClosed )