diff --git a/xfce4-session/xfsm-manager.c b/xfce4-session/xfsm-manager.c
index c404506..f0827c4 100644
--- a/xfce4-session/xfsm-manager.c
+++ b/xfce4-session/xfsm-manager.c
@@ -71,12 +71,10 @@
    Prototypes
  */
 static gboolean   xfsm_manager_startup (void);
-static void       xfsm_manager_handle_failed (void);
-static gboolean   xfsm_manager_startup_timedout (gpointer user_data);
 static void       xfsm_manager_load_settings (XfceRc *rc);
 static gboolean   xfsm_manager_load_session (void);
 static GdkPixbuf *xfsm_manager_load_session_preview (const gchar *name);
-
+static void       xfsm_manager_startup_done (void);
 
 /*
    Static data
@@ -84,7 +82,6 @@ static GdkPixbuf *xfsm_manager_load_session_preview (const gchar *name);
 static XfsmManagerState state = XFSM_MANAGER_STARTUP;
 static gboolean         session_chooser = FALSE;
 static guint            die_timeout_id = 0;
-static guint            startup_timeout_id = 0;
 
 
 static gboolean
@@ -93,7 +90,7 @@ xfsm_manager_startup (void)
   xfsm_startup_foreign ();
   pending_properties = g_list_sort (pending_properties,
                                     (GCompareFunc) xfsm_properties_compare);
-  xfsm_manager_startup_continue (NULL);
+  xfsm_manager_begin_startup ();
   return FALSE;
 }
 
@@ -127,36 +124,40 @@ xfsm_manager_restore_active_workspace (XfceRc *rc)
 }
 
 
-static void
-xfsm_manager_handle_failed (void)
+void
+xfsm_manager_handle_failed_client (XfsmProperties *properties)
 {
-  /* Handle apps that failed to start here */
-  XfsmProperties *properties;
-  GList          *lp;
+  GList *lp;
 
-  for (lp = starting_properties; lp != NULL; lp = lp->next)
+  if ((lp = g_list_find (starting_properties, properties)) == NULL)
     {
-      properties = XFSM_PROPERTIES (lp->data);
-
-      if (properties->discard_command != NULL)
-        {
-          xfsm_verbose ("Client Id = %s failed to start, running discard "
-                        "command now.\n\n", properties->client_id);
-
-          g_spawn_sync (properties->current_directory,
-                        properties->discard_command,
-                        properties->environment,
-                        G_SPAWN_SEARCH_PATH,
-                        NULL, NULL,
-                        NULL, NULL,
-                        NULL, NULL);
-        }
+      xfsm_verbose("Client Id = %s failed to start, but not found in "
+                   "startup properties list.\n\n", properties->client_id);
+      return;
+    }
 
-      xfsm_properties_free (properties);
+  if (properties->discard_command != NULL)
+    {
+      xfsm_verbose ("Client Id = %s failed to start, running discard "
+                    "command now.\n\n", properties->client_id);
+
+      g_spawn_sync (properties->current_directory,
+                    properties->discard_command,
+                    properties->environment,
+                    G_SPAWN_SEARCH_PATH,
+                    NULL, NULL,
+                    NULL, NULL,
+                    NULL, NULL);
     }
 
-  g_list_free (starting_properties);
-  starting_properties = NULL;
+    xfsm_properties_free (properties);
+
+    starting_properties = g_list_delete_link (starting_properties, lp);
+
+    if (starting_properties == NULL && state == XFSM_MANAGER_STARTUP)
+      {
+        xfsm_manager_startup_done ();
+      }
 }
 
 
@@ -437,71 +438,38 @@ xfsm_manager_restart (void)
 
 
 void
-xfsm_manager_startup_continue (const gchar *previous_id)
+xfsm_manager_begin_startup (void)
 {
-  gboolean startup_done = FALSE;
-  gchar buffer[1024];
-  XfceRc *rc;
-
-  xfsm_verbose ("Manager startup continues [Previous Id = %s]\n\n",
-                previous_id != NULL ? previous_id : "None");
+  xfsm_startup_begin ();
+}
 
-  if (startup_timeout_id != 0)
-    {
-      g_source_remove (startup_timeout_id);
-      startup_timeout_id = 0;
 
-      /* work around broken clients */
-      if (state != XFSM_MANAGER_STARTUP)
-        return;
-    }
+static void
+xfsm_manager_startup_done (void)
+{
+  gchar buffer[1024];
+  XfceRc *rc;
 
-  startup_done = xfsm_startup_continue (previous_id);
+  xfsm_verbose ("Manager finished startup, entering IDLE mode now\n\n");
+  state = XFSM_MANAGER_IDLE;
 
-  if (startup_done)
+  if (!failsafe_mode)
     {
-      xfsm_verbose ("Manager finished startup, entering IDLE mode now\n\n");
-      state = XFSM_MANAGER_IDLE;
-
-      if (!failsafe_mode)
-        {
-          /* handle apps that failed to start */
-          xfsm_manager_handle_failed ();
-
-          /* restore active workspace, this has to be done after the
-           * window manager is up, so we do it last.
-           */
-          g_snprintf (buffer, 1024, "Session: %s", session_name);
-          rc = xfce_rc_simple_open (session_file, TRUE);
-          xfce_rc_set_group (rc, buffer);
-          xfsm_manager_restore_active_workspace (rc);
-          xfce_rc_close (rc);
+      /* restore active workspace, this has to be done after the
+       * window manager is up, so we do it last.
+       */
+      g_snprintf (buffer, 1024, "Session: %s", session_name);
+      rc = xfce_rc_simple_open (session_file, TRUE);
+      xfce_rc_set_group (rc, buffer);
+      xfsm_manager_restore_active_workspace (rc);
+      xfce_rc_close (rc);
 
-          /* start legacy applications now */
-          xfsm_legacy_startup ();
-        }
-    }
-  else
-    {
-      startup_timeout_id = g_timeout_add (STARTUP_TIMEOUT,
-                                          xfsm_manager_startup_timedout,
-                                          NULL);
+      /* start legacy applications now */
+      xfsm_legacy_startup ();
     }
 }
 
 
-static gboolean
-xfsm_manager_startup_timedout (gpointer user_data)
-{
-  xfsm_verbose ("Manager startup timed out\n\n");
-
-  startup_timeout_id = 0; /* will be removed automagically once we return */
-  xfsm_manager_startup_continue (NULL);
-  
-  return FALSE;
-}
-
-
 gchar*
 xfsm_manager_generate_client_id (SmsConn sms_conn)
 {
@@ -600,6 +568,12 @@ xfsm_manager_register_client (XfsmClient  *client,
       if (properties == NULL)
         return FALSE;
 
+      if (properties->startup_timeout_id)
+        {
+          g_source_remove (properties->startup_timeout_id);
+          properties->startup_timeout_id = 0;
+        }
+
       xfsm_client_set_initial_properties (client, properties);
     }
   else
@@ -626,6 +600,7 @@ xfsm_manager_register_client (XfsmClient  *client,
 
   if ((failsafe_mode || previous_id != NULL) && state == XFSM_MANAGER_STARTUP)
     {
+#if 0
       /* Only continue the startup if we are either in Failsafe mode (which
        * means that we don't have any previous_id at all) or the previous_id
        * matched one of the starting_properties. If there was no match
@@ -633,6 +608,12 @@ xfsm_manager_register_client (XfsmClient  *client,
        * See http://bugs.xfce.org/view_bug_page.php?f_id=212 for details.
        */
       xfsm_manager_startup_continue (previous_id);
+#endif
+
+      if (starting_properties == NULL)
+        {
+          xfsm_manager_startup_done ();
+        }
     }
 
   return TRUE;
diff --git a/xfce4-session/xfsm-manager.h b/xfce4-session/xfsm-manager.h
index c005a3b..b0ffc7a 100644
--- a/xfce4-session/xfsm-manager.h
+++ b/xfce4-session/xfsm-manager.h
@@ -45,7 +45,8 @@ void xfsm_manager_init (XfceRc *rc);
 
 gboolean xfsm_manager_restart (void);
 
-void xfsm_manager_startup_continue (const gchar *previous_id);
+void xfsm_manager_begin_startup (void);
+void xfsm_manager_handle_failed_client (XfsmProperties *properties);
 
 gchar* xfsm_manager_generate_client_id (SmsConn sms_conn) G_GNUC_PURE;
 
diff --git a/xfce4-session/xfsm-properties.h b/xfce4-session/xfsm-properties.h
index 62c6e5f..9be0a1c 100644
--- a/xfce4-session/xfsm-properties.h
+++ b/xfce4-session/xfsm-properties.h
@@ -49,6 +49,8 @@ struct _XfsmProperties
   gchar **restart_command;
   gint    restart_style_hint;
   gchar  *user_id;
+
+  guint startup_timeout_id;
 };
 
 
diff --git a/xfce4-session/xfsm-startup.c b/xfce4-session/xfsm-startup.c
index a9eb278..2e3f975 100644
--- a/xfce4-session/xfsm-startup.c
+++ b/xfce4-session/xfsm-startup.c
@@ -60,8 +60,8 @@
 /*
    Prototypes
  */
-static gboolean xfsm_startup_continue_failsafe    (void);
-static gboolean xfsm_startup_continue_session     (const gchar *previous_id);
+static void     xfsm_startup_begin_failsafe       (void);
+static void     xfsm_startup_begin_session        (void);
 static void     xfsm_startup_child_watch          (GPid         pid,
                                                    gint         status,
                                                    gpointer     user_data);
@@ -417,6 +417,13 @@ xfsm_startup_autostart (void)
 }
 
 
+static gboolean
+xfsm_startup_autostart_idled (gpointer data)
+{
+  xfsm_startup_autostart ();
+  return FALSE;
+}
+
 
 void
 xfsm_startup_foreign (void)
@@ -429,126 +436,146 @@ xfsm_startup_foreign (void)
 }
 
 
-/* Returns TRUE if done, else FALSE */
-gboolean
-xfsm_startup_continue (const gchar *previous_id)
+void
+xfsm_startup_begin (void)
 {
-  gboolean startup_done = FALSE;
-
   if (failsafe_mode)
-    startup_done = xfsm_startup_continue_failsafe ();
+    xfsm_startup_begin_failsafe ();
   else
-    startup_done = xfsm_startup_continue_session (previous_id);
+    xfsm_startup_begin_session ();
 
-  /* perform Autostart */
-  if (startup_done)
-    xfsm_startup_autostart ();
-  
-  return startup_done;
+  /* FIXME: not sure if i want to do it this way */
+  g_idle_add (xfsm_startup_autostart_idled, NULL);
 }
 
 
 static gboolean
-xfsm_startup_continue_failsafe (void)
-{  
-  FailsafeClient *fclient;
-  
-  fclient = (FailsafeClient *) g_list_nth_data (failsafe_clients, 0);
-  if (fclient != NULL)
+xfsm_start_failsafe_client_idled (gpointer data)
+{
+  FailsafeClient *fclient = data;
+
+  /* FIXME: SPLASH */
+  /* let the user know whats going on */
+  if (G_LIKELY (splash_screen != NULL))
     {
-      /* let the user know whats going on */
-      if (G_LIKELY (splash_screen != NULL))
-        {
-          xfsm_splash_screen_next (splash_screen,
-                                   figure_app_name (fclient->command[0]));
-        }
+      xfsm_splash_screen_next (splash_screen,
+                               figure_app_name (fclient->command[0]));
+    }
+
+  /* start the application */
+  xfsm_start_application (fclient->command, NULL, fclient->screen,
+                          NULL, NULL, NULL);
+  g_strfreev (fclient->command);
+  g_free (fclient);
+
+  return FALSE;
+}
 
-      /* start the application */
-      xfsm_start_application (fclient->command, NULL, fclient->screen,
-                              NULL, NULL, NULL);
-      failsafe_clients = g_list_remove (failsafe_clients, fclient);
-      g_strfreev (fclient->command);
-      g_free (fclient);
 
-      /* there are more to come */
-      return FALSE;
+static void
+xfsm_startup_begin_failsafe (void)
+{
+  GList *lp;
+
+  for(lp = g_list_first (failsafe_clients); lp; lp = g_list_next (lp))
+    {
+      g_idle_add (xfsm_start_failsafe_client_idled, lp->data);
     }
 
-  return TRUE;
+  g_list_free (failsafe_clients);
+  failsafe_clients = NULL;
 }
 
 
 static gboolean
-xfsm_startup_continue_session (const gchar *previous_id)
+xfsm_startup_client_timedout (gpointer data)
 {
-  XfsmProperties *properties;
+  XfsmProperties *properties = XFSM_PROPERTIES (data);
+
+  properties->startup_timeout_id = 0;
+  xfsm_manager_handle_failed_client (properties);
+
+  return FALSE;
+}
+
+
+static gboolean
+xfsm_start_client_idled (gpointer data)
+{
+  XfsmProperties *properties = XFSM_PROPERTIES (data);
   gchar         **argv;
   gint            argc;
   GPid            pid;
   gint            n;
-  
-again:
-  properties = (XfsmProperties *) g_list_nth_data (pending_properties, 0);
-  if (properties != NULL)
-    {
-      if (G_LIKELY (splash_screen != NULL))
-        {
-          xfsm_splash_screen_next (splash_screen,
-                                   figure_app_name (properties->program));
-        }
 
-      /* drop the properties from the pending list */
-      pending_properties = g_list_remove (pending_properties, properties);
+  /* FIXME: SPLASH */
+  if (G_LIKELY (splash_screen != NULL))
+    {
+      xfsm_splash_screen_next (splash_screen,
+                               figure_app_name (properties->program));
+    }
 
-      /* generate the argument vector for the application (expanding variables) */
-      argc = g_strv_length (properties->restart_command);
-      argv = g_new (gchar *, argc + 1);
-      for (n = 0; n < argc; ++n)
-        argv[n] = xfce_expand_variables (properties->restart_command[n], NULL);
-      argv[n] = NULL;
+  /* generate the argument vector for the application (expanding variables) */
+  argc = g_strv_length (properties->restart_command);
+  argv = g_new (gchar *, argc + 1);
+  for (n = 0; n < argc; ++n)
+    argv[n] = xfce_expand_variables (properties->restart_command[n], NULL);
+  argv[n] = NULL;
 
-      /* fork a new process for the application */
+  /* fork a new process for the application */
 #ifdef HAVE_VFORK
-      pid = vfork ();
+  pid = vfork ();
 #else
-      pid = fork ();
+  pid = fork ();
 #endif
 
-      /* handle the child process */
-      if (pid == 0)
-        {
-          /* execute the application here */
-          execvp (argv[0], argv);
-          _exit (127);
-        }
+  /* handle the child process */
+  if (pid == 0)
+    {
+      /* execute the application here */
+      execvp (argv[0], argv);
+      _exit (127);
+    }
 
-      /* check if we failed to fork */
-      if (G_UNLIKELY (pid < 0))
-        {
-          /* tell the user that we failed to fork */
-          perror ("Failed to fork new process");
-        }
-      else
-        {
-          /* watch the child process */
-          g_child_watch_add_full (G_PRIORITY_LOW, pid, xfsm_startup_child_watch, g_strdup (properties->client_id), xfsm_startup_child_watch_destroy);
-        }
+  /* check if we failed to fork */
+  if (G_UNLIKELY (pid < 0))
+    {
+      /* tell the user that we failed to fork */
+      perror ("Failed to fork new process");
+    }
+  else
+    {
+      /* watch the child process */
+      g_child_watch_add_full (G_PRIORITY_LOW, pid, xfsm_startup_child_watch, g_strdup (properties->client_id), xfsm_startup_child_watch_destroy);
+    }
 
-      /* cleanup */
-      g_strfreev (argv);
+  /* cleanup */
+  g_strfreev (argv);
+
+  /* move the properties to the list of starting applications */
+  starting_properties = g_list_append (starting_properties, properties);
 
-      /* move the properties to the list of starting applications */
-      starting_properties = g_list_append (starting_properties, properties);
+  /* set a timeout; client must register with SM before time runs out */
+  properties->startup_timeout_id = g_timeout_add (STARTUP_TIMEOUT,
+                                                  xfsm_startup_client_timedout,
+                                                  properties);
 
-      /* try with the next pending if fork() failed */
-      if (G_UNLIKELY (pid < 0))
-        goto again;
+  return FALSE;
+}
 
-      /* more to come... */
-      return FALSE;
+
+static void
+xfsm_startup_begin_session (void)
+{
+  GList *lp;
+
+  for(lp = g_list_first (pending_properties); lp; lp = g_list_next (lp))
+    {
+      g_idle_add (xfsm_start_client_idled, lp->data);
     }
 
-  return TRUE;
+  g_list_free (pending_properties);
+  pending_properties = NULL;
 }
 
 
@@ -569,7 +596,13 @@ xfsm_startup_child_watch (GPid     pid,
       if (strcmp (properties->client_id, client_id) == 0)
         {
           /* continue startup, this client failed most probably */
-          xfsm_manager_startup_continue (NULL);
+          xfsm_verbose ("Client with id %s appears to have failed", client_id);
+          if (properties->startup_timeout_id)
+            {
+              g_source_remove (properties->startup_timeout_id);
+              properties->startup_timeout_id = 0;
+            }
+          xfsm_manager_handle_failed_client (properties);
           break;
         }
     }
diff --git a/xfce4-session/xfsm-startup.h b/xfce4-session/xfsm-startup.h
index 1640239..0315ba8 100644
--- a/xfce4-session/xfsm-startup.h
+++ b/xfce4-session/xfsm-startup.h
@@ -26,7 +26,7 @@
 
 void xfsm_startup_init (XfceRc *rc);
 void xfsm_startup_foreign (void);
-gboolean xfsm_startup_continue (const gchar *previous_id);
+void xfsm_startup_begin (void);
 
 #endif /* !__XFSM_STARTUP_H__ */