diff --git a/drivers/bluetooth/ath3k.c b/drivers/bluetooth/ath3k.c
index db7cb81..106beb1 100644
--- a/drivers/bluetooth/ath3k.c
+++ b/drivers/bluetooth/ath3k.c
@@ -105,7 +105,7 @@
 
 	pipe = usb_sndctrlpipe(udev, 0);
 
-	send_buf = kmalloc(BULK_SIZE, GFP_ATOMIC);
+	send_buf = kmalloc(BULK_SIZE, GFP_KERNEL);
 	if (!send_buf) {
 		BT_ERR("Can't allocate memory chunk for firmware");
 		return -ENOMEM;
@@ -176,7 +176,7 @@
 
 	count = firmware->size;
 
-	send_buf = kmalloc(BULK_SIZE, GFP_ATOMIC);
+	send_buf = kmalloc(BULK_SIZE, GFP_KERNEL);
 	if (!send_buf) {
 		BT_ERR("Can't allocate memory chunk for firmware");
 		return -ENOMEM;
diff --git a/drivers/bluetooth/bcm203x.c b/drivers/bluetooth/bcm203x.c
index 8b1b643..54952ab 100644
--- a/drivers/bluetooth/bcm203x.c
+++ b/drivers/bluetooth/bcm203x.c
@@ -24,6 +24,7 @@
 
 #include <linux/module.h>
 
+#include <linux/atomic.h>
 #include <linux/kernel.h>
 #include <linux/init.h>
 #include <linux/slab.h>
@@ -65,6 +66,7 @@
 	unsigned long		state;
 
 	struct work_struct	work;
+	atomic_t		shutdown;
 
 	struct urb		*urb;
 	unsigned char		*buffer;
@@ -97,6 +99,7 @@
 
 		data->state = BCM203X_SELECT_MEMORY;
 
+		/* use workqueue to have a small delay */
 		schedule_work(&data->work);
 		break;
 
@@ -155,7 +158,10 @@
 	struct bcm203x_data *data =
 		container_of(work, struct bcm203x_data, work);
 
-	if (usb_submit_urb(data->urb, GFP_ATOMIC) < 0)
+	if (atomic_read(&data->shutdown))
+		return;
+
+	if (usb_submit_urb(data->urb, GFP_KERNEL) < 0)
 		BT_ERR("Can't submit URB");
 }
 
@@ -243,6 +249,7 @@
 
 	usb_set_intfdata(intf, data);
 
+	/* use workqueue to have a small delay */
 	schedule_work(&data->work);
 
 	return 0;
@@ -254,6 +261,9 @@
 
 	BT_DBG("intf %p", intf);
 
+	atomic_inc(&data->shutdown);
+	cancel_work_sync(&data->work);
+
 	usb_kill_urb(data->urb);
 
 	usb_set_intfdata(intf, NULL);
diff --git a/drivers/bluetooth/bfusb.c b/drivers/bluetooth/bfusb.c
index 005919a..61b5914 100644
--- a/drivers/bluetooth/bfusb.c
+++ b/drivers/bluetooth/bfusb.c
@@ -568,22 +568,23 @@
 
 	BT_INFO("BlueFRITZ! USB loading firmware");
 
+	buf = kmalloc(BFUSB_MAX_BLOCK_SIZE + 3, GFP_KERNEL);
+	if (!buf) {
+		BT_ERR("Can't allocate memory chunk for firmware");
+		return -ENOMEM;
+	}
+
 	pipe = usb_sndctrlpipe(data->udev, 0);
 
 	if (usb_control_msg(data->udev, pipe, USB_REQ_SET_CONFIGURATION,
 				0, 1, 0, NULL, 0, USB_CTRL_SET_TIMEOUT) < 0) {
 		BT_ERR("Can't change to loading configuration");
+		kfree(buf);
 		return -EBUSY;
 	}
 
 	data->udev->toggle[0] = data->udev->toggle[1] = 0;
 
-	buf = kmalloc(BFUSB_MAX_BLOCK_SIZE + 3, GFP_ATOMIC);
-	if (!buf) {
-		BT_ERR("Can't allocate memory chunk for firmware");
-		return -ENOMEM;
-	}
-
 	pipe = usb_sndbulkpipe(data->udev, data->bulk_out_ep);
 
 	while (count) {
diff --git a/include/net/bluetooth/rfcomm.h b/include/net/bluetooth/rfcomm.h
index d5eee20..e2e3eca 100644
--- a/include/net/bluetooth/rfcomm.h
+++ b/include/net/bluetooth/rfcomm.h
@@ -211,6 +211,7 @@
 #define RFCOMM_AUTH_ACCEPT  6
 #define RFCOMM_AUTH_REJECT  7
 #define RFCOMM_DEFER_SETUP  8
+#define RFCOMM_ENC_DROP     9
 
 /* Scheduling flags and events */
 #define RFCOMM_SCHED_WAKEUP 31
diff --git a/net/bluetooth/hci_core.c b/net/bluetooth/hci_core.c
index b84458d..be84ae3 100644
--- a/net/bluetooth/hci_core.c
+++ b/net/bluetooth/hci_core.c
@@ -613,7 +613,7 @@
 	if (!test_bit(HCI_RAW, &hdev->flags)) {
 		set_bit(HCI_INIT, &hdev->flags);
 		__hci_request(hdev, hci_reset_req, 0,
-					msecs_to_jiffies(250));
+					msecs_to_jiffies(HCI_INIT_TIMEOUT));
 		clear_bit(HCI_INIT, &hdev->flags);
 	}
 
diff --git a/net/bluetooth/mgmt.c b/net/bluetooth/mgmt.c
index 5a94eec..5caff4d 100644
--- a/net/bluetooth/mgmt.c
+++ b/net/bluetooth/mgmt.c
@@ -147,8 +147,6 @@
 
 		hci_del_off_timer(d);
 
-		set_bit(HCI_MGMT, &d->flags);
-
 		if (test_bit(HCI_SETUP, &d->flags))
 			continue;
 
diff --git a/net/bluetooth/rfcomm/core.c b/net/bluetooth/rfcomm/core.c
index 38b618c..4e32e18 100644
--- a/net/bluetooth/rfcomm/core.c
+++ b/net/bluetooth/rfcomm/core.c
@@ -1802,6 +1802,11 @@
 			continue;
 		}
 
+		if (test_bit(RFCOMM_ENC_DROP, &d->flags)) {
+			__rfcomm_dlc_close(d, ECONNREFUSED);
+			continue;
+		}
+
 		if (test_and_clear_bit(RFCOMM_AUTH_ACCEPT, &d->flags)) {
 			rfcomm_dlc_clear_timer(d);
 			if (d->out) {
@@ -2077,7 +2082,7 @@
 		if (test_and_clear_bit(RFCOMM_SEC_PENDING, &d->flags)) {
 			rfcomm_dlc_clear_timer(d);
 			if (status || encrypt == 0x00) {
-				__rfcomm_dlc_close(d, ECONNREFUSED);
+				set_bit(RFCOMM_ENC_DROP, &d->flags);
 				continue;
 			}
 		}
@@ -2088,7 +2093,7 @@
 				rfcomm_dlc_set_timer(d, RFCOMM_AUTH_TIMEOUT);
 				continue;
 			} else if (d->sec_level == BT_SECURITY_HIGH) {
-				__rfcomm_dlc_close(d, ECONNREFUSED);
+				set_bit(RFCOMM_ENC_DROP, &d->flags);
 				continue;
 			}
 		}