diff --git a/Lib/codecs.py b/Lib/codecs.py
index bd415fe..862f910 100644
--- a/Lib/codecs.py
+++ b/Lib/codecs.py
@@ -310,6 +310,15 @@
                 data = data[1:]
             if data:
                 self.atcr = data.endswith(u"\r")
+                # If we're at a "\r" (and are allowed to read more), read one
+                # extra character (which might be a "\n") to get a proper
+                # line ending (If the stream is temporarily exhausted we return
+                # the wrong line ending, but at least we won't generate a bogus
+                # second line.
+                if self.atcr and size is None:
+                    data += self.read(size=1, chars=1)
+                    self.atcr = data.endswith(u"\r")
+
             line += data
             lines = line.splitlines(True)
             if lines:
diff --git a/Lib/test/test_codecs.py b/Lib/test/test_codecs.py
index e6dba34..692e9b5 100644
--- a/Lib/test/test_codecs.py
+++ b/Lib/test/test_codecs.py
@@ -73,15 +73,88 @@
         # reader has to look ahead whether this is a lone \r or a \r\n
         for size in xrange(80):
             for lineend in u"\n \r\n \r \u2028".split():
-                s = size*u"a" + lineend + u"xxx\n"
-                self.assertEqual(
-                    getreader(s).readline(keepends=True),
-                    size*u"a" + lineend,
-                )
-                self.assertEqual(
-                    getreader(s).readline(keepends=False),
-                    size*u"a",
-                )
+                s = 10*(size*u"a" + lineend + u"xxx\n")
+                reader = getreader(s)
+                for i in xrange(10):
+                    self.assertEqual(
+                        reader.readline(keepends=True),
+                        size*u"a" + lineend,
+                    )
+                reader = getreader(s)
+                for i in xrange(10):
+                    self.assertEqual(
+                        reader.readline(keepends=False),
+                        size*u"a",
+                    )
+
+    def test_bug1175396(self):
+        s = [
+            '<%!--===================================================\r\n',
+            '    BLOG index page: show recent articles,\r\n',
+            '    today\'s articles, or articles of a specific date.\r\n',
+            '========================================================--%>\r\n',
+            '<%@inputencoding="ISO-8859-1"%>\r\n',
+            '<%@pagetemplate=TEMPLATE.y%>\r\n',
+            '<%@import=import frog.util, frog%>\r\n',
+            '<%@import=import frog.objects%>\r\n',
+            '<%@import=from frog.storageerrors import StorageError%>\r\n',
+            '<%\r\n',
+            '\r\n',
+            'import logging\r\n',
+            'log=logging.getLogger("Snakelets.logger")\r\n',
+            '\r\n',
+            '\r\n',
+            'user=self.SessionCtx.user\r\n',
+            'storageEngine=self.SessionCtx.storageEngine\r\n',
+            '\r\n',
+            '\r\n',
+            'def readArticlesFromDate(date, count=None):\r\n',
+            '    entryids=storageEngine.listBlogEntries(date)\r\n',
+            '    entryids.reverse() # descending\r\n',
+            '    if count:\r\n',
+            '        entryids=entryids[:count]\r\n',
+            '    try:\r\n',
+            '        return [ frog.objects.BlogEntry.load(storageEngine, date, Id) for Id in entryids ]\r\n',
+            '    except StorageError,x:\r\n',
+            '        log.error("Error loading articles: "+str(x))\r\n',
+            '        self.abort("cannot load articles")\r\n',
+            '\r\n',
+            'showdate=None\r\n',
+            '\r\n',
+            'arg=self.Request.getArg()\r\n',
+            'if arg=="today":\r\n',
+            '    #-------------------- TODAY\'S ARTICLES\r\n',
+            '    self.write("<h2>Today\'s articles</h2>")\r\n',
+            '    showdate = frog.util.isodatestr() \r\n',
+            '    entries = readArticlesFromDate(showdate)\r\n',
+            'elif arg=="active":\r\n',
+            '    #-------------------- ACTIVE ARTICLES redirect\r\n',
+            '    self.Yredirect("active.y")\r\n',
+            'elif arg=="login":\r\n',
+            '    #-------------------- LOGIN PAGE redirect\r\n',
+            '    self.Yredirect("login.y")\r\n',
+            'elif arg=="date":\r\n',
+            '    #-------------------- ARTICLES OF A SPECIFIC DATE\r\n',
+            '    showdate = self.Request.getParameter("date")\r\n',
+            '    self.write("<h2>Articles written on %s</h2>"% frog.util.mediumdatestr(showdate))\r\n',
+            '    entries = readArticlesFromDate(showdate)\r\n',
+            'else:\r\n',
+            '    #-------------------- RECENT ARTICLES\r\n',
+            '    self.write("<h2>Recent articles</h2>")\r\n',
+            '    dates=storageEngine.listBlogEntryDates()\r\n',
+            '    if dates:\r\n',
+            '        entries=[]\r\n',
+            '        SHOWAMOUNT=10\r\n',
+            '        for showdate in dates:\r\n',
+            '            entries.extend( readArticlesFromDate(showdate, SHOWAMOUNT-len(entries)) )\r\n',
+            '            if len(entries)>=SHOWAMOUNT:\r\n',
+            '                break\r\n',
+            '                \r\n',
+        ]
+        stream = StringIO.StringIO("".join(s).encode(self.encoding))
+        reader = codecs.getreader(self.encoding)(stream)
+        for (i, line) in enumerate(reader):
+            self.assertEqual(line, s[i])
 
     def test_readlinequeue(self):
         q = Queue()