--- ./pathauto/pathauto.inc.orig  2008-06-23 19:56:48.000000000 -0700
+++ ./pathauto/pathauto.inc 2008-06-23 19:57:11.000000000 -0700
@@ -275,7 +275,10 @@
   $pid = NULL;
   $old_alias = NULL;
   if ($op == 'update' or $op == 'bulkupdate') {
-    if (variable_get('pathauto_update_action', 2) == 0) {
+    // CRG: According to settings page option 0 should only be effective IF an alias exist
+    //  - I take that to mean that if an ALIAS does NOT exist the code should trigger.
+    //  - TODO: Should this logic be triggered by yet another option and the settings page field description altered?
+    if (variable_get('pathauto_update_action', 2) == 0 && drupal_get_path_alias($src) != $src) {
       // Do nothing
       return '';
     }