diff --git a/ChangeLog b/ChangeLog
index 8787ce1..c100f8e 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2010-04-20 Doug Simons <doug.simons@testplant.com>
+
+	* Source/winlib/WIN32GState.m:
+	Fix problem with display location for some composited images.
+
 2010-04-20 Doug Simons <doug.simons@testplant.com>
 
 	* Source/win32/WIN32Server.m:
diff --git a/Source/winlib/WIN32GState.m b/Source/winlib/WIN32GState.m
index e061ac4..4fcd430 100644
--- a/Source/winlib/WIN32GState.m
+++ b/Source/winlib/WIN32GState.m
@@ -283,6 +283,7 @@ BOOL alpha_blend_source_over(HDC destDC,
 
     [source->ctm boundingRectFor: sourceRect result: &newRect];
     rectFrom = GSWindowRectToMS(source, newRect);
+    y += (sourceRect.size.height - newRect.size.height); // adjust location for scaled source
   }
   h = rectFrom.bottom - rectFrom.top;
   w = rectFrom.right - rectFrom.left;