--- path_redirect/path_redirect.module	2010-07-06 21:12:18.000000000 +0200
+++ path_redirect-NEW/path_redirect.module	2010-07-06 22:44:26.000000000 +0200
@@ -273,16 +273,17 @@
  *   TRUE if a redirect was created, or FALSE otherwise.
  */
 function path_redirect_check_alias_changed($path, $new_alias, $language = '') {
-  if (!variable_get('path_redirect_auto_redirect', 1) || empty($new_alias)) {
+  $old_alias = drupal_get_path_alias($path, $language);
+  
+  if (!variable_get('path_redirect_auto_redirect', 1) || (empty($new_alias) && empty($old_alias))) {
     return FALSE;
   }
 
-  $old_alias = drupal_get_path_alias($path, $language);
   if ($old_alias != $base_path && $old_alias != $new_alias) {
     // If the user is manually changing the path alias, add a redirect from the old alias to the node.
     $redirect = array(
       'source' => $old_alias,
-      'redirect' => $new_alias,
+      'redirect' => empty($new_alias) ? $path : $new_alias,
     );
     return path_redirect_save($redirect);
   }