diff --git a/Source/cmIfCommand.cxx b/Source/cmIfCommand.cxx
index 265c0d663..e28956fc7 100644
--- a/Source/cmIfCommand.cxx
+++ b/Source/cmIfCommand.cxx
@@ -22,12 +22,26 @@
 bool cmIfFunctionBlocker::
 IsFunctionBlocked(const cmListFileFunction& lff, cmMakefile &mf)
 {
-  // always let if statements through
-  if (!cmSystemTools::Strucmp(lff.Name.c_str(),"if"))
+  // if we are blocking then all we need to do is keep track of 
+  // scope depth of nested if statements
+  if (this->IsBlocking)
     {
-    return false;
+    if (!cmSystemTools::Strucmp(lff.Name.c_str(),"if"))
+      {
+      this->ScopeDepth++;
+      return true;
+      }
     }
-  
+
+  if (this->IsBlocking && this->ScopeDepth)
+    {
+    if (!cmSystemTools::Strucmp(lff.Name.c_str(),"endif"))
+      {
+      this->ScopeDepth--;
+      }
+    return true;
+    }
+      
   // watch for our ELSE or ENDIF
   if (!cmSystemTools::Strucmp(lff.Name.c_str(),"else") ||
       !cmSystemTools::Strucmp(lff.Name.c_str(),"elseif") ||
diff --git a/Source/cmIfCommand.h b/Source/cmIfCommand.h
index 757377c5d..fcdbc09de 100644
--- a/Source/cmIfCommand.h
+++ b/Source/cmIfCommand.h
@@ -28,7 +28,7 @@
 class cmIfFunctionBlocker : public cmFunctionBlocker
 {
 public:
-  cmIfFunctionBlocker() {this->HasRun = false;}
+  cmIfFunctionBlocker() {this->HasRun = false; this->ScopeDepth = 0;}
   virtual ~cmIfFunctionBlocker() {}
   virtual bool IsFunctionBlocked(const cmListFileFunction& lff,
                                  cmMakefile &mf);
@@ -39,6 +39,7 @@ public:
   std::vector<cmListFileArgument> Args;
   bool IsBlocking;
   bool HasRun;
+  unsigned int ScopeDepth;
 };
 
 /** \class cmIfCommand
diff --git a/Source/cmSetPropertiesCommand.cxx b/Source/cmSetPropertiesCommand.cxx
index 8ac03e71a..e83e28118 100644
--- a/Source/cmSetPropertiesCommand.cxx
+++ b/Source/cmSetPropertiesCommand.cxx
@@ -167,8 +167,8 @@ bool cmSetPropertiesCommand::InitialPass(
       if (!ret)
         {
         this->SetError(errors.c_str());
+        return ret;
         }
-      return ret;
       }
       break;
     }