[cc65] Help, bug making me insane

For some reason, this routine that did work previously
doesn't seem to now after making some changes to my
program.  Thinking to forestall my descent into
complete madness I hoped that someone here could look
it over and see if there were any obvious mistakes
that I am overlooking.

unsigned int __fastcall__ copy_image(unsigned char
modify)
{
  dhandle_t dh;
  register unsigned int sector;
  register unsigned int cyl;
  register unsigned char ret;
  register unsigned char i;
  unsigned char retry;


  //--- Initialize ---//
  dh = dio_open(0);
  if (!dh) return(0);

  cyl = (myide_config.imagecyl_hi << 8);
  if (modify)
    cyl += (images[sel_part].slot *
myide_config.imagesize_cyl);
  else
    cyl += (im_config.next_image_entry *
myide_config.imagesize_cyl); 

  myide_flags->optionbyte &= ~0x01;         // screen
activity on

  //--- Sector copy ---//
  for(sector=1; sector<=1040; sector+=SBUFSIZ) {
    for(i=0; i<SBUFSIZ; ++i) {
      retry = 3;                                  // 3
retries
      while (retry) {
	ret = dio_read(dh, sector+i, &buffer[256 * i]);     
// read disk sector

	if (ret)                              // 0 on success

	  --retry;
	else
	  break;
      }

      if (ret) {                                //
error reading
	retry = i;                              // set to
sectors read
	break;                                  // break read
loop
      }
    }

    if (!ret)                                   //
read all sectors, no err
      retry = 0;                                //
don't break sector loop

    for(i=0; i<SBUFSIZ; ++i) {
      ret = set_chs(cyl, sector+i);
      if (!ret) {
	dio_close(dh);
	return(0);
      }
      ret = write_sector(&buffer[256 * i]);
      if (!ret) {
	dio_close(dh);
	return(0);
      }
    }
    if (retry) {                                // did
we error out on read?
      myide_flags->optionbyte |= 0x01;          //
screen activity off
      return(sector+retry-1);                   //
return actual sectors read 
    }
  }

  dio_close(dh);
  myide_flags->optionbyte |= 0x01;              //
screen activity off
  return(1040);                                 //
read full 1040 sectors
} 

Thanks!
Shawn

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