Index: apps/playback.c
===================================================================
--- apps/playback.c	(revision 20205)
+++ apps/playback.c	(working copy)
@@ -248,6 +248,7 @@
 
 /* Track change controls */
 static bool automatic_skip = false; /* Who initiated in-progress skip? (C/A-) */
+static bool auto_dir_skip = false;  /* Have we changed dirs automatically? */
 static bool dir_skip = false;       /* Is a directory skip pending? (A) */
 static bool new_playlist = false;   /* Are we starting a new playlist? (A) */
 static int wps_offset = 0;          /* Pending track change offset, to keep WPS responsive (A) */
@@ -1996,6 +1997,7 @@
     int old_track_ridx = track_ridx;
     int i, idx;
     bool forward;
+    bool end_of_playlist;  /* Temporary flag, not the same as playlist_end */
 
     /* Now it's good time to send track finish events. */
     send_event(PLAYBACK_EVENT_TRACK_FINISH, &curtrack_id3);
@@ -2014,6 +2016,9 @@
     if (new_playlist)
         ci.new_track = 0;
 
+    end_of_playlist = !playlist_peek(ci.new_track);
+    auto_dir_skip = end_of_playlist && global_settings.next_folder;
+
     /* If the playlist isn't that big */
     if (automatic_skip)
     {
@@ -2031,10 +2036,15 @@
     /* Update the playlist */
     last_peek_offset -= ci.new_track;
 
-    if (playlist_next(ci.new_track) < 0)
+    if (auto_dir_skip || !automatic_skip) 
     {
-        LOGFQUEUE("audio >|= codec Q_CODEC_REQUEST_FAILED");
-        return Q_CODEC_REQUEST_FAILED;
+        /* If the track change was manual or the result of an auto dir skip,
+           we need to update the playlist now */
+        if (playlist_next(ci.new_track) < 0)
+        {
+            LOGFQUEUE("audio >|= codec Q_CODEC_REQUEST_FAILED");
+            return Q_CODEC_REQUEST_FAILED;
+        }
     }
 
     if (new_playlist)
@@ -2322,6 +2332,9 @@
 
     if (automatic_skip)
     {
+        if (!auto_dir_skip)
+            playlist_next(-wps_offset);
+
         wps_offset = 0;
         automatic_skip = false;
 
@@ -2342,6 +2355,8 @@
         }
     }
 
+    auto_dir_skip = false;
+
     send_event(PLAYBACK_EVENT_TRACK_CHANGE, &curtrack_id3);
 
     track_changed = true;