diff -NurpP linux-2.6.17.8-vs2.1.1-rc29.1.3/kernel/vserver/network.c linux-2.6.17.8-vs2.1.1-rc29.1.4/kernel/vserver/network.c
--- linux-2.6.17.8-vs2.1.1-rc29.1.3/kernel/vserver/network.c	2006-07-30 03:14:46 +0200
+++ linux-2.6.17.8-vs2.1.1-rc29.1.4/kernel/vserver/network.c	2006-08-19 01:45:50 +0200
@@ -587,10 +599,22 @@ int vc_net_create(uint32_t nid, void __u
 	if ((vc_data.flagword & NXF_PERSISTENT))
 		nx_set_persistent(new_nxi);
 
-	vs_net_change(new_nxi, VSC_NETUP);
-	ret = new_nxi->nx_id;
-	nx_migrate_task(current, new_nxi);
-	/* if this fails, we might end up with a hashed nx_info */
+	ret = -ENOEXEC;
+	if (vs_net_change(new_nxi, VSC_NETUP))
+		goto out_unhash;
+	ret = nx_migrate_task(current, new_nxi);
+	if (!ret) {
+		/* return context id on success */
+		ret = new_nxi->nx_id;
+		goto out;
+	}
+out_unhash:
+	/* prepare for context disposal */
+	new_nxi->nx_state |= NXS_SHUTDOWN;
+	if ((vc_data.flagword & NXF_PERSISTENT))
+		nx_clear_persistent(new_nxi);
+	__unhash_nx_info(new_nxi);
+out:
 	put_nx_info(new_nxi);
 	return ret;
 }