diff --git a/ChangeLog b/ChangeLog
index 09592c2ee5..ea9217b157 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,9 @@
+2008-09-17  Tim-Philipp Müller  <tim.muller at collabora co uk>
+
+	* ext/neon/gstneonhttpsrc.c: (gst_neonhttp_src_start):
+	  Don't post LIBRARY_INIT errors where we should be posting
+	  RESOURCE OPEN_READ errors. Fixes #552506.
+
 2008-09-17  Jan Schmidt  <jan.schmidt@sun.com>
 
 	* ext/jack/gstjackaudiosink.c: (jack_process_cb):
diff --git a/ext/neon/gstneonhttpsrc.c b/ext/neon/gstneonhttpsrc.c
index 0ad6339df3..49fc719959 100644
--- a/ext/neon/gstneonhttpsrc.c
+++ b/ext/neon/gstneonhttpsrc.c
@@ -496,8 +496,9 @@ gst_neonhttp_src_start (GstBaseSrc * bsrc)
 
   ne_oom_callback (oom_callback);
 
-  if (ne_sock_init () != 0)
-    return FALSE;
+  res = ne_sock_init ();
+  if (res != 0)
+    goto init_failed;
 
   res = gst_neonhttp_src_send_request_and_redirect (src,
       &src->session, &src->request, 0, src->automatic_redirect);
@@ -509,7 +510,7 @@ gst_neonhttp_src_start (GstBaseSrc * bsrc)
         GST_ERROR_OBJECT (src, "HTTP Request failed when opening socket!");
       }
 #endif
-      goto init_failed;
+      goto socket_error;
     } else if (res == HTTP_REQUEST_WRONG_PROXY) {
 #ifndef GST_DISABLE_GST_DEBUG
       if (src->neon_http_debug) {
@@ -584,19 +585,25 @@ gst_neonhttp_src_start (GstBaseSrc * bsrc)
   /* ERRORS */
 init_failed:
   {
-    GST_ELEMENT_ERROR (src, LIBRARY, INIT,
+    GST_ELEMENT_ERROR (src, LIBRARY, INIT, (NULL),
+        ("ne_sock_init() failed: %d", res));
+    return FALSE;
+  }
+socket_error:
+  {
+    GST_ELEMENT_ERROR (src, RESOURCE, OPEN_READ,
         (NULL), ("Could not initialize neon library (%i)", res));
     return FALSE;
   }
 wrong_proxy:
   {
-    GST_ELEMENT_ERROR (src, LIBRARY, INIT,
+    GST_ELEMENT_ERROR (src, RESOURCE, SETTINGS,
         (NULL), ("Both proxy host and port must be specified or none"));
     return FALSE;
   }
 begin_req_failed:
   {
-    GST_ELEMENT_ERROR (src, LIBRARY, INIT,
+    GST_ELEMENT_ERROR (src, RESOURCE, OPEN_READ,
         (NULL), ("Could not begin request (%i)", res));
     return FALSE;
   }