diff --git a/doc/example.conf b/doc/example.conf
index fbac4a08..3346ce7b 100755
--- a/doc/example.conf
+++ b/doc/example.conf
@@ -43,12 +43,12 @@ serverinfo {
 	/* for IPv6 */
 	#vhost6 = "3ffe:80e8:546::2";
 
-	/* max_clients: This should be set to the maximum amount of clients
-	 * that the server should support. Note that you should leave some
-	 * file descriptors free for log files, server connections, ident
-	 * lookups (if enabled), exceed_limit clients, etc.
+	/* default max clients: the default maximum number of clients
+	 * allowed to connect.  This can be changed once ircd has started by
+	 * issuing:
+	 *   /quote set maxclients <limit>
 	 */
-	max_clients = 1024;
+	default_max_clients = 1024;
 };
 
 admin {
diff --git a/doc/reference.conf b/doc/reference.conf
index 3238f39a..e1a6e6fd 100755
--- a/doc/reference.conf
+++ b/doc/reference.conf
@@ -116,12 +116,12 @@ serverinfo {
 	 */
 	#vhost6 = "3ffe:80e8:546::2";
 
-	/* max_clients: this should be set to the maximum amount of clients
-	 * that the server should support. Note that you should leave some
-	 * file descriptors free for log files, server connections, ident
-	 * lookups (if enabled), exceed_limit clients, etc.
+	/* default max clients: the default maximum number of clients
+	 * allowed to connect.  This can be changed once ircd has started by
+	 * issuing:
+	 *   /quote set maxclients <limit>
 	 */
-	max_clients = 1024;
+	default_max_clients = 1024;
 };
 
 /* admin {}: contains admin information about the server. (OLD A:) */
diff --git a/include/defaults.h b/include/defaults.h
index 99d64471..5edd8b83 100644
--- a/include/defaults.h
+++ b/include/defaults.h
@@ -34,6 +34,9 @@
 /*
  * First, set other fd limits based on values from user
  */
+
+
+#define MAXCONNECTIONS 65535 /* default max connections if getrlimit doesn't work */
 /* class {} default values */
 #define DEFAULT_SENDQ 20000000	/* default max SendQ */
 #define PORTNUM 6667		/* default outgoing portnum */
diff --git a/include/s_conf.h b/include/s_conf.h
index 2a7661d8..79a8766f 100644
--- a/include/s_conf.h
+++ b/include/s_conf.h
@@ -279,7 +279,7 @@ struct server_info
 	int specific_ipv6_vhost;
 #endif
 
-	int max_clients;
+	int default_max_clients;
 };
 
 struct admin_info
diff --git a/modules/m_info.c b/modules/m_info.c
index 5bbad557..aed3469d 100644
--- a/modules/m_info.c
+++ b/modules/m_info.c
@@ -91,11 +91,11 @@ static struct InfoStruct info_table[] = {
 		&opers_see_all_users,
 		"Farconnect notices available or operspy accountability limited"
 	},
-	{
-		"max_clients",
-		OUTPUT_DECIMAL,
-		&ServerInfo.max_clients,
-		"Maximum clients allowed (configured)",
+	{
+		"max_connections",
+		OUTPUT_DECIMAL,
+		&maxconnections,
+		"Max number connections"
 	},
 	{
 		"anti_nick_flood",
diff --git a/modules/m_set.c b/modules/m_set.c
index 0224a369..3f336c1e 100644
--- a/modules/m_set.c
+++ b/modules/m_set.c
@@ -215,18 +215,18 @@ quote_max(struct Client *source_p, int newval)
 {
 	if(newval > 0)
 	{
-		if(newval > ServerInfo.max_clients)
-		{
-			sendto_one_notice(source_p,
-				   ":You cannot set MAXCLIENTS to > max_clients (%d)",
-				   ServerInfo.max_clients);
-			return;
+		if(newval > maxconnections - MAX_BUFFER)
+		{
+			sendto_one_notice(source_p,
+					  ":You cannot set MAXCLIENTS to > %d",
+					  maxconnections - MAX_BUFFER);
+			return;
 		}
 
 		if(newval < 32)
 		{
-			sendto_one_notice(source_p, ":You cannot set MAXCLIENTS to < 32 (%d)",
-				   GlobalSetOptions.maxclients);
+			sendto_one_notice(source_p, ":You cannot set MAXCLIENTS to < 32 (%d:%d)",
+				   GlobalSetOptions.maxclients, rb_getmaxconnect());
 			return;
 		}
 
diff --git a/src/ircd.c b/src/ircd.c
index 9708dc51..5e108e0f 100644
--- a/src/ircd.c
+++ b/src/ircd.c
@@ -76,7 +76,7 @@ extern int ServerRunning;
 extern struct LocalUser meLocalUser;
 extern char **myargv;
 
-int maxconnections; /* XXX */
+int maxconnections;
 
 /* /quote set variables */
 struct SetOptions GlobalSetOptions;
@@ -153,21 +153,22 @@ ircd_die_cb(const char *str)
 static void
 init_sys(void)
 {
-#if defined(RLIMIT_NOFILE) && defined(HAVE_SYS_RESOURCE_H)
-	struct rlimit limit;
-
-	if(!getrlimit(RLIMIT_NOFILE, &limit))
-	{
-		limit.rlim_cur = limit.rlim_max;	/* make soft limit the max */
-		if(setrlimit(RLIMIT_NOFILE, &limit) == -1)
-		{
-			fprintf(stderr, "error setting max fd's to %ld\n", (long) limit.rlim_cur);
-			exit(EXIT_FAILURE);
-		}
-	}
-
-	maxconnections = limit.rlim_cur;
-#endif /* RLIMIT_NOFILE */
+#if defined(RLIMIT_NOFILE) && defined(HAVE_SYS_RESOURCE_H)
+	struct rlimit limit;
+
+	if(!getrlimit(RLIMIT_NOFILE, &limit))
+	{
+		maxconnections = limit.rlim_cur;
+		if(maxconnections <= MAX_BUFFER)
+		{
+			fprintf(stderr, "ERROR: Shell FD limits are too low.\n");
+			fprintf(stderr, "ERROR: ircd-ratbox reserves %d FDs, shell limits must be above this\n", MAX_BUFFER);
+			exit(EXIT_FAILURE);
+		}
+		return;
+	}
+#endif /* RLIMIT_FD_MAX */
+	maxconnections = MAXCONNECTIONS;
 }
 
 static int
@@ -279,7 +280,11 @@ initialize_global_set_options(void)
 	memset(&GlobalSetOptions, 0, sizeof(GlobalSetOptions));
 	/* memset( &ConfigFileEntry, 0, sizeof(ConfigFileEntry)); */
 
-	GlobalSetOptions.maxclients = ServerInfo.max_clients;
+	GlobalSetOptions.maxclients = ServerInfo.default_max_clients;
+
+	if(GlobalSetOptions.maxclients > (maxconnections - MAX_BUFFER))
+		GlobalSetOptions.maxclients = maxconnections - MAX_BUFFER;
+
 	GlobalSetOptions.autoconn = 1;
 
 	GlobalSetOptions.spam_time = MIN_JOIN_LEAVE_TIME;
diff --git a/src/newconf.c b/src/newconf.c
index ce3fe844..e2032dad 100644
--- a/src/newconf.c
+++ b/src/newconf.c
@@ -1893,7 +1893,7 @@ static struct ConfEntry conf_serverinfo_table[] =
 	{ "vhost", 		CF_QSTRING, conf_set_serverinfo_vhost,	0, NULL },
 	{ "vhost6", 		CF_QSTRING, conf_set_serverinfo_vhost6,	0, NULL },
 
-	{ "max_clients",	CF_INT,	    NULL, 0, &ServerInfo.max_clients    },
+	{ "default_max_clients",CF_INT,     NULL, 0, &ServerInfo.default_max_clients },
 
 	{ "\0",	0, NULL, 0, NULL }
 };
diff --git a/src/restart.c b/src/restart.c
index 7dc5cf0e..ada978cf 100644
--- a/src/restart.c
+++ b/src/restart.c
@@ -36,8 +36,6 @@
 /* external var */
 extern char **myargv;
 
-extern int maxconnections; /* XXX */
-
 void
 restart(const char *mesg)
 {
diff --git a/src/s_conf.c b/src/s_conf.c
index c0033d19..db2eba74 100644
--- a/src/s_conf.c
+++ b/src/s_conf.c
@@ -838,7 +838,7 @@ set_default_conf(void)
 	ConfigFileEntry.reject_duration = 120;
 	ConfigFileEntry.max_unknown_ip = 2;
 
-	ServerInfo.max_clients = maxconnections - MAX_BUFFER;
+	ServerInfo.default_max_clients = MAXCONNECTIONS;
 }
 
 #undef YES