diff -urpN binutils-2.14.90.0.8.orig/ld/ldfile.c binutils-2.14.90.0.8/ld/ldfile.c
--- binutils-2.14.90.0.8.orig/ld/ldfile.c	Wed Jan 14 21:07:52 2004
+++ binutils-2.14.90.0.8/ld/ldfile.c	Sat Jan 24 21:26:59 2004
@@ -287,6 +287,19 @@ ldfile_try_open_bfd (const char *attempt
 /* Search for and open the file specified by ENTRY.  If it is an
    archive, use ARCH, LIB and SUFFIX to modify the file name.  */
 
+/*
+ * Logic (simplified):
+ *
+ * 1. if this is not an archive, try to open it in current directory first
+ * 2. scan search path for dynamic objects (*)
+ * 3. scan search path for archive objects
+ *
+ * (*) - if the pathname in the search path comes from command line (i.e.
+ *       was specified via -L command line switch, then if opening of the
+ *       dynamic object fails, try to open archive object.  This is done
+ *       because else we will break ability to build executables with
+ *       included libraries whose versions differ from the system ones.
+ */
 bfd_boolean
 ldfile_open_file_search (const char *arch,
 			 lang_input_statement_type *entry,
@@ -295,6 +308,10 @@ ldfile_open_file_search (const char *arc
 {
   search_dirs_type *search;
 
+  /* these variables used to save information about found archive */
+  bfd_boolean saved_sysrooted = FALSE;
+  char *saved_filename = NULL;
+
   /* If this is not an archive, try to open it in the current
      directory first.  */
   if (! entry->is_archive)
@@ -323,7 +340,6 @@ ldfile_open_file_search (const char *arc
 
   for (search = search_head; search != NULL; search = search->next)
     {
-      char *string;
 
       if (entry->dynamic && ! link_info.relocatable)
 	{
@@ -334,28 +350,55 @@ ldfile_open_file_search (const char *arc
 	    }
 	}
 
-      string = xmalloc (strlen (search->name)
-			+ strlen (slash)
-			+ strlen (lib)
-			+ strlen (entry->filename)
-			+ strlen (arch)
-			+ strlen (suffix)
-			+ 1);
-
-      if (entry->is_archive)
-	sprintf (string, "%s%s%s%s%s%s", search->name, slash,
-		 lib, entry->filename, arch, suffix);
-      else
-	sprintf (string, "%s%s%s", search->name, slash, entry->filename);
+      if (!saved_filename)	/* we haven't found any archive yet */
+        {
+	  char *string;
+
+          string = xmalloc (strlen (search->name)
+			    + strlen (slash)
+			    + strlen (lib)
+			    + strlen (entry->filename)
+			    + strlen (arch)
+			    + strlen (suffix)
+			    + 1);
+
+          if (entry->is_archive)
+	    sprintf (string, "%s%s%s%s%s%s", search->name, slash,
+		     lib, entry->filename, arch, suffix);
+          else
+	    sprintf (string, "%s%s%s", search->name, slash, entry->filename);
 
-      if (ldfile_try_open_bfd (string, entry))
-	{
-	  entry->filename = string;
-	  entry->sysrooted = search->sysrooted;
-	  return TRUE;
-	}
+          if (ldfile_try_open_bfd (string, entry))
+	    {
 
-      free (string);
+	      if (!bfd_close(entry->the_bfd))
+	        {
+		  einfo (_("%F%P: error closing bfd: %s\n"), entry->filename);
+		}
+
+	      entry->the_bfd = NULL;
+
+	      /* we found the archive, let's save information */
+	      saved_filename = string;
+	      saved_sysrooted = search->sysrooted;
+
+	      if (search->cmdline)
+	        break;
+	    }
+	  else
+	    free (string);
+        }	
+    }
+
+  /*
+   * if control gets here this means that we haven't found shared object
+   * and have to try to link against archive whose name we saved previously.
+   */
+  if (saved_filename && ldfile_try_open_bfd (saved_filename, entry))
+    {
+      entry->filename = saved_filename;
+      entry->sysrooted = saved_sysrooted;
+      return TRUE;
     }
 
   return FALSE;