diff --git a/fs/cifs/cifspdu.h b/fs/cifs/cifspdu.h
index a0d26b540d4e..c43bf4b7a556 100644
--- a/fs/cifs/cifspdu.h
+++ b/fs/cifs/cifspdu.h
@@ -340,6 +340,7 @@
 #define OPEN_NO_RECALL          0x00400000
 #define OPEN_FREE_SPACE_QUERY   0x00800000	/* should be zero */
 #define CREATE_OPTIONS_MASK     0x007FFFFF
+#define CREATE_OPTION_READONLY	0x10000000
 #define CREATE_OPTION_SPECIAL   0x20000000   /* system. NB not sent over wire */
 
 /* ImpersonationLevel flags */
diff --git a/fs/cifs/cifssmb.c b/fs/cifs/cifssmb.c
index cfd9750852b3..95fbba4ea7d4 100644
--- a/fs/cifs/cifssmb.c
+++ b/fs/cifs/cifssmb.c
@@ -1224,11 +1224,8 @@ OldOpenRetry:
 	else /* BB FIXME BB */
 		pSMB->FileAttributes = cpu_to_le16(0/*ATTR_NORMAL*/);
 
-	/* if ((omode & S_IWUGO) == 0)
-		pSMB->FileAttributes |= cpu_to_le32(ATTR_READONLY);*/
-	/*  Above line causes problems due to vfs splitting create into two
-	    pieces - need to set mode after file created not while it is
-	    being created */
+	if (create_options & CREATE_OPTION_READONLY)
+		pSMB->FileAttributes |= cpu_to_le16(ATTR_READONLY);
 
 	/* BB FIXME BB */
 /*	pSMB->CreateOptions = cpu_to_le32(create_options &
@@ -1331,17 +1328,16 @@ openRetry:
 		pSMB->FileAttributes = cpu_to_le32(ATTR_SYSTEM);
 	else
 		pSMB->FileAttributes = cpu_to_le32(ATTR_NORMAL);
+
 	/* XP does not handle ATTR_POSIX_SEMANTICS */
 	/* but it helps speed up case sensitive checks for other
 	servers such as Samba */
 	if (tcon->ses->capabilities & CAP_UNIX)
 		pSMB->FileAttributes |= cpu_to_le32(ATTR_POSIX_SEMANTICS);
 
-	/* if ((omode & S_IWUGO) == 0)
-		pSMB->FileAttributes |= cpu_to_le32(ATTR_READONLY);*/
-	/*  Above line causes problems due to vfs splitting create into two
-		pieces - need to set mode after file created not while it is
-		being created */
+	if (create_options & CREATE_OPTION_READONLY)
+		pSMB->FileAttributes |= cpu_to_le32(ATTR_READONLY);
+
 	pSMB->ShareAccess = cpu_to_le32(FILE_SHARE_ALL);
 	pSMB->CreateDisposition = cpu_to_le32(openDisposition);
 	pSMB->CreateOptions = cpu_to_le32(create_options & CREATE_OPTIONS_MASK);
diff --git a/fs/cifs/dir.c b/fs/cifs/dir.c
index 6ed775986be9..e4e0078a0526 100644
--- a/fs/cifs/dir.c
+++ b/fs/cifs/dir.c
@@ -119,6 +119,7 @@ cifs_create(struct inode *inode, struct dentry *direntry, int mode,
 {
 	int rc = -ENOENT;
 	int xid;
+	int create_options = CREATE_NOT_DIR;
 	int oplock = 0;
 	int desiredAccess = GENERIC_READ | GENERIC_WRITE;
 	__u16 fileHandle;
@@ -176,9 +177,19 @@ cifs_create(struct inode *inode, struct dentry *direntry, int mode,
 		FreeXid(xid);
 		return -ENOMEM;
 	}
+
+	mode &= ~current->fs->umask;
+
+	/*
+	 * if we're not using unix extensions, see if we need to set
+	 * ATTR_READONLY on the create call
+	 */
+	if (!pTcon->unix_ext && (mode & S_IWUGO) == 0)
+		create_options |= CREATE_OPTION_READONLY;
+
 	if (cifs_sb->tcon->ses->capabilities & CAP_NT_SMBS)
 		rc = CIFSSMBOpen(xid, pTcon, full_path, disposition,
-			 desiredAccess, CREATE_NOT_DIR,
+			 desiredAccess, create_options,
 			 &fileHandle, &oplock, buf, cifs_sb->local_nls,
 			 cifs_sb->mnt_cifs_flags & CIFS_MOUNT_MAP_SPECIAL_CHR);
 	else
@@ -187,7 +198,7 @@ cifs_create(struct inode *inode, struct dentry *direntry, int mode,
 	if (rc == -EIO) {
 		/* old server, retry the open legacy style */
 		rc = SMBLegacyOpen(xid, pTcon, full_path, disposition,
-			desiredAccess, CREATE_NOT_DIR,
+			desiredAccess, create_options,
 			&fileHandle, &oplock, buf, cifs_sb->local_nls,
 			cifs_sb->mnt_cifs_flags & CIFS_MOUNT_MAP_SPECIAL_CHR);
 	}
@@ -197,7 +208,6 @@ cifs_create(struct inode *inode, struct dentry *direntry, int mode,
 		/* If Open reported that we actually created a file
 		then we now have to set the mode if possible */
 		if ((pTcon->unix_ext) && (oplock & CIFS_CREATE_ACTION)) {
-			mode &= ~current->fs->umask;
 			if (cifs_sb->mnt_cifs_flags & CIFS_MOUNT_SET_UID) {
 				CIFSSMBUnixSetPerms(xid, pTcon, full_path, mode,
 					(__u64)current->fsuid,
diff --git a/fs/cifs/inode.c b/fs/cifs/inode.c
index d904a037c833..fcbdbb6ad7bf 100644
--- a/fs/cifs/inode.c
+++ b/fs/cifs/inode.c
@@ -974,8 +974,8 @@ mkdir_get_info:
 		  * failed to get it from the server or was set bogus */
 		if ((direntry->d_inode) && (direntry->d_inode->i_nlink < 2))
 				direntry->d_inode->i_nlink = 2;
+		mode &= ~current->fs->umask;
 		if (pTcon->unix_ext) {
-			mode &= ~current->fs->umask;
 			if (cifs_sb->mnt_cifs_flags & CIFS_MOUNT_SET_UID) {
 				CIFSSMBUnixSetPerms(xid, pTcon, full_path,
 						    mode,
@@ -994,9 +994,16 @@ mkdir_get_info:
 						    CIFS_MOUNT_MAP_SPECIAL_CHR);
 			}
 		} else {
-			/* BB to be implemented via Windows secrty descriptors
-			   eg CIFSSMBWinSetPerms(xid, pTcon, full_path, mode,
-						 -1, -1, local_nls); */
+			if (!(cifs_sb->mnt_cifs_flags & CIFS_MOUNT_CIFS_ACL) &&
+			    (mode & S_IWUGO) == 0) {
+				FILE_BASIC_INFO pInfo;
+				memset(&pInfo, 0, sizeof(pInfo));
+				pInfo.Attributes = cpu_to_le32(ATTR_READONLY);
+				CIFSSMBSetTimes(xid, pTcon, full_path,
+						&pInfo, cifs_sb->local_nls,
+						cifs_sb->mnt_cifs_flags &
+						CIFS_MOUNT_MAP_SPECIAL_CHR);
+			}
 			if (direntry->d_inode) {
 				direntry->d_inode->i_mode = mode;
 				direntry->d_inode->i_mode |= S_IFDIR;