diff --git a/dependencymanager/core/src/main/java/org/apache/felix/dm/DependencyManager.java b/dependencymanager/core/src/main/java/org/apache/felix/dm/DependencyManager.java
index 20d4f90..b7605bc 100644
--- a/dependencymanager/core/src/main/java/org/apache/felix/dm/DependencyManager.java
+++ b/dependencymanager/core/src/main/java/org/apache/felix/dm/DependencyManager.java
@@ -170,7 +170,7 @@
     }
     
     //TODO rename iface en iface2 to adaptor en adaptee o.i.d.
-    public Service createAdapterService(Class serviceInterface, String serviceFilter, Class adapterInterface, Class impl, Dictionary adapterProperties) {
+    public Service createAdapterService(Class serviceInterface, String serviceFilter, Class adapterInterface, Object impl, Dictionary adapterProperties) {
         return createService()
             .setImplementation(new AdapterImpl(serviceInterface, serviceFilter, impl, adapterInterface.getName(), adapterProperties))
             .add(createServiceDependency()
diff --git a/dependencymanager/core/src/main/java/org/apache/felix/dm/impl/ServiceImpl.java b/dependencymanager/core/src/main/java/org/apache/felix/dm/impl/ServiceImpl.java
index 199aa68..62ee30e 100644
--- a/dependencymanager/core/src/main/java/org/apache/felix/dm/impl/ServiceImpl.java
+++ b/dependencymanager/core/src/main/java/org/apache/felix/dm/impl/ServiceImpl.java
@@ -232,6 +232,9 @@
         	((DependencyActivation) dependency).start(this);
         }
         synchronized (m_dependencies) {
+            // starting the dependency above might have triggered another state change, so
+            // we have to fetch the current state again
+            oldState = m_state;
             newState = new State((List) m_dependencies.clone(), !oldState.isInactive(), m_isInstantiated, m_isBound);
             m_state = newState;
         }
@@ -257,6 +260,9 @@
         	((DependencyActivation) dependency).stop(this);
         }
         synchronized (m_dependencies) {
+            // starting the dependency above might have triggered another state change, so
+            // we have to fetch the current state again
+            oldState = m_state;
             newState = new State((List) m_dependencies.clone(), !oldState.isInactive(), m_isInstantiated, m_isBound);
             m_state = newState;
         }
@@ -285,15 +291,18 @@
             newState = new State((List) m_dependencies.clone(), !oldState.isInactive(), m_isInstantiated, m_isBound);
             m_state = newState;
         }
-        calculateStateChanges(oldState, newState);
         if (newState.isAllRequiredAvailable()) {
         	m_executor.enqueue(new Runnable() {
         		public void run() {
         			updateInstance(dependency);
         		}
+        		public String toString() {
+        		    return "update instance " + dependency;
+        		}
         	});
         	m_executor.execute();
         }
+        calculateStateChanges(oldState, newState);
     }
 
     public void dependencyChanged(final Dependency dependency) {
@@ -318,7 +327,6 @@
             newState = new State((List) m_dependencies.clone(), !oldState.isInactive(), m_isInstantiated, m_isBound);
             m_state = newState;
         }
-        calculateStateChanges(oldState, newState);
         if (newState.isAllRequiredAvailable()) {
         	m_executor.enqueue(new Runnable() {
         		public void run() {
@@ -327,6 +335,7 @@
         	});
         	m_executor.execute();
         }
+        calculateStateChanges(oldState, newState);
     }
 
     public synchronized void start() {
@@ -808,44 +817,12 @@
     }
 
     private void updateInstance(Dependency dependency) {
-        
         if (dependency.isAutoConfig()) {
             configureImplementation(dependency.getAutoConfigType(), dependency.getAutoConfigInstance(), dependency.getAutoConfigName());
             if (dependency.isPropagated() && m_registration != null) {
                 m_registration.setProperties(calculateServiceProperties());
             }
         }
-        
-//        if (dependency instanceof ServiceDependencyImpl) {
-//            ServiceDependencyImpl sd = (ServiceDependencyImpl) dependency;
-//            // update the dependency in the service instance (it will use
-//            // a null object if necessary)
-//            if (sd.isAutoConfig()) {
-//                configureImplementation(sd.getInterface(), sd.getService(), sd.getAutoConfigName());
-//            }
-//        }
-//        else if (dependency instanceof ConfigurationDependencyImpl) {
-//        	ConfigurationDependencyImpl cd = (ConfigurationDependencyImpl) dependency;
-//        	if (cd.isPropagated()) {
-//        		// change service properties accordingly, but only if the service was already registered
-//        	    if (m_registration != null) {
-//            		Dictionary props = calculateServiceProperties();
-//            		m_registration.setProperties(props);
-//        	    }
-//        	}
-//        }
-//        else if (dependency instanceof BundleDependencyImpl) {
-//            BundleDependencyImpl bd = (BundleDependencyImpl) dependency;
-//            if (bd.isAutoConfig()) {
-//                configureImplementation(Bundle.class, bd.getBundle()); // TODO support AutoConfigName
-//            }
-//        }
-//        else if (dependency instanceof ResourceDependencyImpl) {
-//            ResourceDependencyImpl rd = (ResourceDependencyImpl) dependency;
-//            if (rd.isAutoConfig()) {
-//                configureImplementation(Resource.class, rd.getResource()); // TODO support AutoConfigName
-//            }
-//        }
     }
 
     /**
diff --git a/dependencymanager/test/src/test/java/org/apache/felix/dm/test/AdapterTest.java b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/AdapterTest.java
new file mode 100644
index 0000000..a31fcc4
--- /dev/null
+++ b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/AdapterTest.java
@@ -0,0 +1,143 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+package org.apache.felix.dm.test;
+
+import static org.ops4j.pax.exam.CoreOptions.mavenBundle;
+import static org.ops4j.pax.exam.CoreOptions.options;
+import static org.ops4j.pax.exam.CoreOptions.provision;
+
+import org.apache.felix.dm.DependencyManager;
+import org.apache.felix.dm.service.Service;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.ops4j.pax.exam.Option;
+import org.ops4j.pax.exam.junit.Configuration;
+import org.ops4j.pax.exam.junit.JUnit4TestRunner;
+import org.osgi.framework.BundleContext;
+
+@RunWith(JUnit4TestRunner.class)
+public class AdapterTest {
+    @Configuration
+    public static Option[] configuration() {
+        return options(
+            provision(
+                mavenBundle().groupId("org.osgi").artifactId("org.osgi.compendium").version("4.1.0"),
+                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.dependencymanager").versionAsInProject()
+            )
+        );
+    }
+    
+    @Test
+    public void testInstanceBoundDependency(BundleContext context) {
+        DependencyManager m = new DependencyManager(context);
+        // helper class that ensures certain steps get executed in sequence
+        Ensure e = new Ensure();
+        // create a service provider and consumer
+        Service sp = m.createService().setImplementation(new ServiceProvider(e)).setInterface(ServiceInterface.class.getName(), null);
+        Service sp2 = m.createService().setImplementation(new ServiceProvider2(e)).setInterface(ServiceInterface2.class.getName(), null);
+        Service sc = m.createService().setImplementation(new ServiceConsumer()).add(m.createServiceDependency().setService(ServiceInterface3.class).setRequired(true));
+        Service sa = m.createAdapterService(ServiceInterface.class, null, ServiceInterface3.class, new ServiceAdapter(e), null);
+        m.add(sc);
+        m.add(sp);
+        m.add(sp2);
+        m.add(sa);
+        e.waitForStep(5, 2000);
+        m.remove(sa);
+        m.remove(sp2);
+        m.remove(sp);
+        m.remove(sc);
+    }
+    
+    static interface ServiceInterface {
+        public void invoke();
+    }
+    
+    static interface ServiceInterface2 {
+        public void invoke();
+    }
+    
+    static interface ServiceInterface3 {
+        public void invoke();
+    }
+    
+    static class ServiceProvider2 implements ServiceInterface2 {
+        private final Ensure m_ensure;
+
+        public ServiceProvider2(Ensure ensure) {
+            m_ensure = ensure;
+        }
+
+        public void invoke() {
+            m_ensure.step(4);
+        }
+    }
+
+    static class ServiceProvider implements ServiceInterface {
+        private final Ensure m_ensure;
+        public ServiceProvider(Ensure e) {
+            m_ensure = e;
+        }
+        public void invoke() {
+            m_ensure.step(5);
+        }
+    }
+    
+    static class ServiceAdapter implements ServiceInterface3 {
+        private Ensure m_ensure;
+        private volatile ServiceInterface m_originalService;
+        private volatile ServiceInterface2 m_injectedService;
+        private volatile Service m_service;
+        private volatile DependencyManager m_manager;
+        
+        public ServiceAdapter(Ensure e) {
+            m_ensure = e;
+        }
+        public void init() {
+            m_ensure.step(1);
+            m_service.add(m_manager.createServiceDependency().setInstanceBound(true).setRequired(true).setService(ServiceInterface2.class));
+        }
+        public void start() {
+            m_ensure.step(2);
+        }
+        public void invoke() {
+            m_ensure.step(3);
+            m_injectedService.invoke();
+            m_originalService.invoke();
+        }
+        
+        public void stop() {
+            m_ensure.step(6);
+        }
+    }
+
+    static class ServiceConsumer implements Runnable {
+        private volatile ServiceInterface3 m_service;
+        
+        public void init() {
+            Thread t = new Thread(this);
+            t.start();
+        }
+        
+        public void run() {
+            m_service.invoke();
+        }
+    }
+}
+
+