Index: pathauto.module
===================================================================
RCS file: /cvs/drupal/contributions/modules/pathauto/pathauto.module,v
retrieving revision 1.169
diff -u -p -r1.169 pathauto.module
--- pathauto.module	13 Jan 2011 03:27:24 -0000	1.169
+++ pathauto.module	19 Jan 2011 13:37:35 -0000
@@ -403,7 +403,7 @@ function pathauto_node_operations() {
  */
 function pathauto_node_update_alias(stdClass $node, $op, array $options = array()) {
   // Skip processing if the user has disabled pathauto for the node.
-  if (isset($node->path['pathauto']) && empty($node->path['pathauto'])) {
+  if (empty($node->path['pathauto'])) {
     return;
   }
 
Index: pathauto.test
===================================================================
RCS file: /cvs/drupal/contributions/modules/pathauto/pathauto.test,v
retrieving revision 1.38
diff -u -p -r1.38 pathauto.test
--- pathauto.test	13 Jan 2011 03:27:24 -0000	1.38
+++ pathauto.test	19 Jan 2011 13:37:35 -0000
@@ -204,7 +204,7 @@ class PathautoUnitTestCase extends Patha
   function testUpdateActions() {
     // Test PATHAUTO_UPDATE_ACTION_NO_NEW with unaliased node and 'insert'.
     variable_set('pathauto_update_action', PATHAUTO_UPDATE_ACTION_NO_NEW);
-    $node = $this->drupalCreateNode(array('title' => 'First title'));
+    $node = $this->drupalCreateNode(array('title' => 'First title', 'path' => array('pathauto' => TRUE)));
     $this->assertEntityAlias('node', $node, 'content/first-title');
 
     // Default action is PATHAUTO_UPDATE_ACTION_DELETE.
@@ -257,6 +257,7 @@ class PathautoUnitTestCase extends Patha
     $this->assertNoEntityAliasExists('node', $node);
 
     $node->title = 'hello';
+    $node->path['pathauto'] = TRUE;
     pathauto_node_update($node);
     $this->assertEntityAlias('node', $node, 'content/hello');
   }