Index: conditional_fields/conditional_fields.module
===================================================================
--- conditional_fields/conditional_fields.module	(revision 31)
+++ conditional_fields/conditional_fields.module	(working copy)
@@ -1317,6 +1317,9 @@
     unset($field['#required']);
     $field['#conditional_fields_required'] = TRUE;
   }
+  if ($field['#needs_validation']) {
+    unset($field['#needs_validation']);
+  }
   foreach (element_children($field) as $child) {
     conditional_fields_custom_required_field($field[$child]);
   }