diff --git a/Changelog b/Changelog
index 1adc849..dc3dd67 100644
--- a/Changelog
+++ b/Changelog
@@ -1,5 +1,8 @@
 [Changes 1.2.2]
 
+* Move all handling of SED messages and notices into ctcp.c, re-enable
+  SED notices. (caf)
+
 * Handle SED-encrypted CTCP replies properly. (caf)
 
 * Add sent_nick flag to NickList struct, bump MODULE_VERSION. (caf)
diff --git a/include/ctcp.h b/include/ctcp.h
index 1a2cb0a..40d2575 100644
--- a/include/ctcp.h
+++ b/include/ctcp.h
@@ -55,7 +55,6 @@
 extern CtcpEntryDll *dll_ctcp;
 
 
-extern		int	sed;
 extern		int	in_ctcp_flag;
 
 #define CTCP_DELIM_CHAR '\001'
diff --git a/source/ctcp.c b/source/ctcp.c
index d3c3c16..ed2b500 100644
--- a/source/ctcp.c
+++ b/source/ctcp.c
@@ -184,9 +184,6 @@ static char	*ctcp_type[] =
 	"NOTICE"
 };
 
-/* This is set to one if we parsed an SED */
-int     sed = 0;
-
 /*
  * in_ctcp_flag is set to true when IRCII is handling a CTCP request.  This
  * is used by the ctcp() sending function to force NOTICEs to be used in any
@@ -632,7 +629,6 @@ static char *try_decrypt(char *from, char *to, char *msg)
 CTCP_HANDLER(do_sed)
 {
 	char *ret;
-	char *ret2;
 
 	ret = try_decrypt(from, to, cmd);
 
@@ -642,16 +638,17 @@ CTCP_HANDLER(do_sed)
 		 * There might be a CTCP message in there,
 		 * so we see if we can find it.
 		 */
-		ret2 = m_strdup(do_ctcp(from, to, ret));
-		sed = 1;
+		char *ptr = do_ctcp(from, to, ret);
+		if (*ptr && do_hook(ENCRYPTED_PRIVMSG_LIST, "%s %s %s", from, to, ptr))
+			put_it("%s",convert_output_format(fget_string_var(FORMAT_ENCRYPTED_PRIVMSG_FSET), "%s %s %s %s %s", update_clock(GET_TIME), from, FromUserHost, to, ptr));
+		*ret = 0;
 	}
 	else
 	{
-		ret2 = m_strdup("[ENCRYPTED MESSAGE]");
+		ret = m_strdup("[ENCRYPTED MESSAGE]");
 	}
 
-	new_free(&ret);
-	return ret2;
+	return ret;
 }
 
 /* do_sed_reply: Same as do_sed, but CTCPs within the SED are handled as
@@ -659,7 +656,6 @@ CTCP_HANDLER(do_sed)
 CTCP_HANDLER(do_sed_reply)
 {
 	char *ret;
-	char *ret2;
 
 	ret = try_decrypt(from, to, cmd);
 
@@ -669,16 +665,17 @@ CTCP_HANDLER(do_sed_reply)
 		 * There might be a CTCP reply in there,
 		 * so we see if we can find it.
 		 */
-		ret2 = m_strdup(do_notice_ctcp(from, to, ret));
-		sed = 1;
+		char *ptr = do_notice_ctcp(from, to, ret);
+		if (*ptr && do_hook(ENCRYPTED_NOTICE_LIST, "%s %s %s", from, to, ptr))
+			put_it("%s",convert_output_format(fget_string_var(FORMAT_ENCRYPTED_NOTICE_FSET), "%s %s %s %s %s", update_clock(GET_TIME), from, FromUserHost, to, ptr));
+		*ret = 0;
 	}
 	else
 	{
-		ret2 = m_strdup("[ENCRYPTED MESSAGE]");
+		ret = m_strdup("[ENCRYPTED MESSAGE]");
 	}
 
-	new_free(&ret);
-	return ret2;
+	return ret;
 }
 
 CTCP_HANDLER(do_utc)
diff --git a/source/notice.c b/source/notice.c
index 5609b34..314a5c5 100644
--- a/source/notice.c
+++ b/source/notice.c
@@ -574,15 +574,6 @@ void parse_notice(char *from, char **Args)
 			goto notice_cleanup;
 	}
 		
-	if (sed && !do_hook(ENCRYPTED_NOTICE_LIST, "%s %s %s", from, to, line))
-	{
-#if 0
-		put_it("%s", convert_output_format(fget_string_var(FORMAT_ENCRYPTED_NOTICE_FSET), "%s %s %s %s", update_clock(GET_TIME), from, FromUserHost, line));
-#endif
-		sed = 0;
-		goto notice_cleanup;
-	}
-
 	if (!check_chanwall_notice(from, line, list_type))
 	{
 		char *s;
diff --git a/source/parse.c b/source/parse.c
index 1a5c555..b316caa 100644
--- a/source/parse.c
+++ b/source/parse.c
@@ -613,13 +613,6 @@ static	void p_privmsg(char *from, char **Args)
 	else
 		no_flood = check_flooding(from, flood_type, ptr, NULL);
 
-	if (sed == 1)
-	{
-		if (do_hook(ENCRYPTED_PRIVMSG_LIST,"%s %s %s",from, to, ptr))
-			put_it("%s",convert_output_format(fget_string_var(FORMAT_ENCRYPTED_PRIVMSG_FSET), "%s %s %s %s %s", update_clock(GET_TIME), from, FromUserHost, to, ptr));
-			sed = 0;
-	}
-	else
 	{
 		int added_to_tab = 0;
 		if (list_type == PUBLIC_LIST || list_type == PUBLIC_OTHER_LIST || list_type == PUBLIC_MSG_LIST)