diff --git a/Changes b/Changes
index 38828939a..377d22216 100644
--- a/Changes
+++ b/Changes
@@ -3,6 +3,7 @@ Anope Version S V N
 Provided by Anope Dev. <dev@anope.org> - 2004
 07/05 A Warning when LocalAddress conflicts with RemoteServer.            [#118]
 06/18 A Added proper Bahamut1.8 support.                                  [ #55]
+07/15 F Fixed the bug where /ns release didn't work with UseSVSHOLD.      [#125]
 07/15 F Fixed a tiny memleak in the db routine                            [ #00]
 07/15 F Updated Dutch language file.                                      [ #00]
 07/14 F Added CHECK to the memoserv help menu.                            [ #00]
diff --git a/nickserv.c b/nickserv.c
index 5916d319f..ec10e4fe0 100644
--- a/nickserv.c
+++ b/nickserv.c
@@ -1125,9 +1125,11 @@ void cancel_user(User * u)
 #ifdef HAS_SVSHOLD
             }
 #endif
+            na->status &= ~NS_TEMPORARY;
             na->status |= NS_KILL_HELD;
+        } else {
+            na->status &= ~NS_TEMPORARY;
         }
-        na->status &= ~NS_TEMPORARY;
 
         del_ns_timeout(na, TO_COLLIDE);
     }
diff --git a/version.log b/version.log
index 3f818d69d..e717ee016 100644
--- a/version.log
+++ b/version.log
@@ -8,10 +8,14 @@
 VERSION_MAJOR="1"
 VERSION_MINOR="7"
 VERSION_PATCH="4"
-VERSION_BUILD="261"
+VERSION_BUILD="262"
 
 # $Log$
 #
+# BUILD : 1.7.4 (262)
+# BUGS  : 125
+# NOTES : Fixed the /ns release issue with UseSVSHOLD
+#
 # BUILD : 1.7.4 (261)
 # BUGS  : 
 # NOTES : fixed a tiny memleak in the db routine