Index: modules/overlay/overlay-parent.js
===================================================================
RCS file: /cvs/drupal/drupal/modules/overlay/overlay-parent.js,v
retrieving revision 1.22
diff -u -r1.22 overlay-parent.js
--- modules/overlay/overlay-parent.js	14 Jan 2010 04:06:54 -0000	1.22
+++ modules/overlay/overlay-parent.js	25 Jan 2010 15:21:13 -0000
@@ -674,16 +674,19 @@
     return;
   }
 
-  // Only continue if clicked target (or one of its parents) is a link and does
-  // not have class overlay-exclude. The overlay-exclude class allows to prevent
-  // opening a link in the overlay.
-  if (!$target.is('a') || $target.hasClass('overlay-exclude')) {
+  // Only continue if clicked target (or one of its parents) is a link. 
+  if (!$target.is('a')) {
     $target = $target.closest('a');
     if (!$target.length) {
       return;
     }
   }
 
+  // The overlay-exclude class allows to prevent opening a link in the overlay.
+  if ($target.hasClass('overlay-exclude')) {
+    return;
+  }
+
   var href = $target.attr('href');
   // Only continue if link has an href attribute and is not just linking to
   // an anchor.