diff --git a/lib/ipc/server.c b/lib/ipc/server.c
index 74c0f1a2d..ccfdb1454 100644
--- a/lib/ipc/server.c
+++ b/lib/ipc/server.c
@@ -453,6 +453,10 @@ struct client {
     uint8_t *inmsg;
     size_t olen;
     uint8_t *outmsg;
+#ifdef HAVE_GCD
+    dispatch_source_t in;
+    dispatch_source_t out;
+#endif
 };
 
 #ifndef HAVE_GCD
@@ -460,6 +464,9 @@ static unsigned num_clients = 0;
 static struct client **clients = NULL;
 #endif
 
+static void handle_read(struct client *);
+static void handle_write(struct client *);
+static int maybe_close(struct client *);
 
 static struct client *
 add_new_socket(int fd,
@@ -468,25 +475,60 @@ add_new_socket(int fd,
 	       void *userctx)
 {
     struct client *c;
-    int one = 1;
+    int fileflags;
 
     c = calloc(1, sizeof(*c));
     if (c == NULL)
 	return NULL;
 	
-    c->fd = accept(fd, NULL, NULL);
-    if(c->fd < 0) {
-	free(c);
-	return NULL;
+    if (flags & LISTEN_SOCKET) {
+	c->fd = fd;
+    } else {
+	c->fd = accept(fd, NULL, NULL);
+	if(c->fd < 0) {
+	    free(c);
+	    return NULL;
+	}
     }
+    printf("new socket %d\n", c->fd);
 
     c->flags = flags;
     c->callback = callback;
     c->userctx = userctx;
 
-    (void)ioctl(c->fd, FIONBIO, (void *)&one); 
+    fileflags = fcntl(c->fd, F_GETFL, 0);
+    fcntl(c->fd, F_SETFL, fileflags | O_NONBLOCK);
 
-#ifndef HAVE_GCD
+#ifdef HAVE_GCD
+    init_globals();
+	
+    c->in = dispatch_source_create(DISPATCH_SOURCE_TYPE_READ, 
+				   c->fd, 0, eventq);
+    c->out = dispatch_source_create(DISPATCH_SOURCE_TYPE_WRITE,
+				    c->fd, 0, eventq);
+    
+    dispatch_source_set_event_handler(c->in, ^{ 
+	    int rw = (c->flags & WAITING_WRITE);
+	    printf("handle read %d\n", c->fd);
+	    handle_read(c);
+	    if (rw == 0 && (c->flags & WAITING_WRITE))
+		dispatch_resume(c->out);
+	    if ((c->flags & WAITING_READ) == 0)
+		dispatch_suspend(c->in);
+	    maybe_close(c);
+	});
+    dispatch_source_set_event_handler(c->out, ^{
+	    printf("handle write %d\n", c->fd);
+	    handle_write(c);
+	    if ((c->flags & WAITING_WRITE) == 0) {
+		printf("completed write %d\n", c->fd);
+		dispatch_suspend(c->out);
+	    }
+	    maybe_close(c);
+	});
+    
+    dispatch_resume(c->in);
+#else
     clients = erealloc(clients, sizeof(clients[0]) * (num_clients + 1));
     clients[num_clients] = c;
     num_clients++;
@@ -495,12 +537,37 @@ add_new_socket(int fd,
     return c;
 }
 
+static int
+maybe_close(struct client *c)
+{
+    if (c->calls != 0)
+	return 0;
+    if (c->flags & (WAITING_READ|WAITING_WRITE))
+	return 0;
+
+    printf("client close: %d\n", c->fd);
+#ifdef HAVE_GCD
+    dispatch_cancel(c->in);
+    if ((c->flags & WAITING_READ) == 0)
+	dispatch_resume(c->in);
+    dispatch_release(c->in);
+
+    dispatch_cancel(c->out);
+    if ((c->flags & WAITING_WRITE) == 0)
+	dispatch_resume(c->out);
+    dispatch_release(c->out);
+#endif
+    close(c->fd); /* ref count fd close */
+    free(c);
+    return 1;
+}
+
+
 struct socket_call {
     heim_idata in;
     struct client *c;
 };
 
-
 static void
 socket_complete(heim_sipc_call ctx, int returnvalue, heim_idata *reply)
 {
@@ -517,16 +584,18 @@ socket_complete(heim_sipc_call ctx, int returnvalue, heim_idata *reply)
 	size_t rlen = reply->length + sizeof(u32) + sizeof(u32);
 
 	c->outmsg = erealloc(c->outmsg, c->olen + rlen);
-	ptr = &c->outmsg[c->olen];
 
 	/* length */
+	ptr = &c->outmsg[c->olen];
 	u32 = htonl(reply->length);
 	memcpy(ptr, &u32, sizeof(u32));
 	ptr += sizeof(u32);
+
 	/* return value */
 	u32 = htonl(returnvalue);
 	memcpy(ptr, &u32, sizeof(u32));
 	ptr += sizeof(u32);
+
 	/* data */
 	memcpy(ptr, reply->data, reply->length);
 	c->olen += rlen;
@@ -539,10 +608,7 @@ socket_complete(heim_sipc_call ctx, int returnvalue, heim_idata *reply)
     sc->c = NULL; /* so we can catch double complete */
     free(sc);
 
-    if (c->calls == 0 && (c->flags & WAITING_CLOSE)) {
-	close(c->fd);
-	free(c);
-    }
+    maybe_close(c);
 }
 
 static void
@@ -568,6 +634,7 @@ handle_read(struct client *c)
     len = read(c->fd, c->inmsg + c->ptr, c->len - c->ptr);
     if (len <= 0) {
 	c->flags |= WAITING_CLOSE;
+	c->flags &= ~WAITING_READ;
 	return;
     }
     c->ptr += len;
@@ -609,25 +676,20 @@ handle_write(struct client *c)
     len = write(c->fd, c->outmsg, c->olen);
     if (len <= 0) {
 	c->flags |= WAITING_CLOSE;
-	return;
-    }
-    if (c->olen != len) {
+	c->flags &= ~(WAITING_WRITE);
+    } else if (c->olen != len) {
 	memmove(&c->outmsg[0], &c->outmsg[len], c->olen - len);
 	c->olen -= len;
     } else {
 	c->olen = 0;
 	free(c->outmsg);
 	c->outmsg = NULL;
-	
-	c->flags &= WAITING_WRITE;
+	c->flags &= ~(WAITING_WRITE);
     }
 }
 
 
-#ifdef HAVE_GCD
-
-
-#else
+#ifndef HAVE_GCD
 
 static void
 process_loop(void)
@@ -674,16 +736,11 @@ process_loop(void)
 	n = 0;
 	while (n < num_clients) {
 	    struct client *c = clients[n];
-	    if ((c->flags & WAITING_CLOSE) == 0) {
-		n++;
-		continue;
+	    if (maybe_close(c)) {
+		if (n < num_clients - 1)
+		    clients[n] = clients[num_clients - 1];
+		num_clients--;
 	    }
-	    if (c->calls == 0) {
-		close(c->fd);
-		free(c);
-	    }
-	    clients[n] = clients[num_clients - 1];
-	    num_clients--;
 	}
 
 	free(fds);
@@ -710,29 +767,6 @@ heim_sipc_launchd_stream_fd_init(int fd,
 
     c = add_new_socket(fd, LISTEN_SOCKET|WAITING_READ, callback, user);
 
-#ifndef HAVE_GCD
-#else
-    dispatch_source_t in, out;
-
-    init_globals();
-
-    in = dispatch_source_create(DISPATCH_SOURCE_TYPE_READ, fd, 0, eventq);
-    out = dispatch_source_create(DISPATCH_SOURCE_TYPE_WRITE, fd, 0, eventq);
-
-    dispatch_source_set_event_handler(in, ^{ 
-	    int rw = (c->flags & WAITING_WRITE);
-	    handle_read(c);
-	    if (rw == 0 && (c->flags & WAITING_WRITE))
-		dispatch_resume(out);
-	});
-    dispatch_source_set_event_handler(out, ^{
-	    handle_write(c);
-	    if ((c->flags & WAITING_WRITE) == 0)
-		dispatch_suspend(out);
-	});
-
-    dispatch_resume(in);
-#endif
     ct->mech = c;
     ct->release = socket_release;
     *ctx = ct;