--- cat.c.orig	2001-12-01 12:29:26.000000000 -0500
+++ cat.c	2004-08-23 19:28:54.000000000 -0400
@@ -618,7 +618,6 @@ main (int argc, char **argv)
 
 #if O_BINARY
 	case 'B':
-	  ++options;
 	  binary_files = 1;
 	  break;
 #endif
@@ -676,9 +675,18 @@ main (int argc, char **argv)
      -b, -s and -E would surprise users on DOS/Windows where a line
      with only CR-LF is an empty line.  (Besides, if they ask for
      one of these options, they don't care much about the original
-     file contents anyway).  */
+     file contents anyway). 
+     Another exception is that we don't set the output to binary
+     when the only input is a tty on stdin.
+     This is so that "cat > xyzzy" can create a DOS-style text file, 
+     like people expect if it is the default.
+ */
+
   if ((!isatty (STDOUT_FILENO)
-       && !(numbers || squeeze_empty_lines || mark_line_ends))
+       && !(isatty (STDIN_FILENO) 
+            && (optind == argc
+                || (optind == (argc - 1) && !strcmp (argv[optind], "-"))) 
+	    && !(numbers || squeeze_empty_lines || mark_line_ends)))
       || binary_files)
     {
       /* Switch stdout to BINARY mode.  */
@@ -695,12 +703,6 @@ main (int argc, char **argv)
 	 But keep console output in text mode, so that LF causes
 	 both CR and LF on output, and the output is readable.  */
       file_open_mode |= O_BINARY;
-      SET_BINARY (0);
-
-      /* Setting stdin to binary switches the console device to
-	 raw I/O, which also affects stdout to console.  Undo that.  */
-      if (isatty (STDOUT_FILENO))
-	setmode (STDOUT_FILENO, O_TEXT);
     }
 #endif
 
@@ -723,28 +725,25 @@ main (int argc, char **argv)
 
 #if O_BINARY
 	  /* Switch stdin to BINARY mode if needed.  */
-	  if (binary_output)
-	    {
-	      int tty_in = isatty (input_desc);
 
-	      /* If stdin is a terminal device, and it is the ONLY
-		 input file (i.e. we didn't write anything to the
-		 output yet), switch the output back to TEXT mode.
-		 This is so "cat > xyzzy" creates a DOS-style text
-		 file, like people expect.  */
-	      if (tty_in && optind <= argc)
-		setmode (STDOUT_FILENO, O_TEXT);
-	      else
-		{
-		  SET_BINARY (input_desc);
+	  int tty_in = isatty (input_desc);
+
+	  if ((binary_output && !tty_in) || quote)
+	    {
+	      SET_BINARY (input_desc);
 # ifdef __DJGPP__
-		  /* This is DJGPP-specific.  By default, switching console
-		     to binary mode disables SIGINT.  But we want terminal
-		     reads to be interruptible.  */
-		  if (tty_in)
-		    __djgpp_set_ctrl_c (1);
+	      /* This is DJGPP-specific.  By default, switching console
+		 to binary mode disables SIGINT.  But we want terminal
+		 reads to be interruptible.  */
+	      if (tty_in)
+		__djgpp_set_ctrl_c (1);
+# endif
+# if !(defined __CYGWIN__)
+	      /* Setting stdin to binary switches the console device to
+		 raw I/O, which also affects stdout to console.  Undo that.  */
+	      if (tty_in && isatty (STDOUT_FILENO))
+		setmode (STDOUT_FILENO, O_TEXT);
 # endif
-		}
 	    }
 #endif
 	}