diff --git a/pmd/etc/changelog.txt b/pmd/etc/changelog.txt
index 8b152b8c8d..e7cc9bf81d 100644
--- a/pmd/etc/changelog.txt
+++ b/pmd/etc/changelog.txt
@@ -2,6 +2,7 @@
 Added new rules: ConstructorCallsOverridableMethodRule, AtLeastOneConstructorRule, JUnitAssertionsShouldIncludeMessageRule, DoubleCheckedLockingRule, ExcessivePublicCountRule
 The Ant task has been updated; if you set "verbose=true" full stacktraces are printed.  Thx to Paul Roebuck for the suggestion.
 Moved JUnit rules into their own package - "net.sourceforge.pmd.rules.junit".
+Fixed bug 697187 - Problem with nested ifs
 
 February 11, 2003 - 1.03
 Added new rules: CyclomaticComplexityRule, AssignmentInOperandRule
diff --git a/pmd/regress/test/net/sourceforge/pmd/rules/EmptyCatchBlockRuleTest.java b/pmd/regress/test/net/sourceforge/pmd/rules/EmptyCatchBlockRuleTest.java
index 9bf0d97e1d..d498daa4da 100644
--- a/pmd/regress/test/net/sourceforge/pmd/rules/EmptyCatchBlockRuleTest.java
+++ b/pmd/regress/test/net/sourceforge/pmd/rules/EmptyCatchBlockRuleTest.java
@@ -28,6 +28,5 @@ public class EmptyCatchBlockRuleTest extends RuleTst {
     public void testEmptyTryAndFinally() throws Throwable {
         runTest("EmptyCatchBlock5.java", 0, new EmptyCatchBlockRule());
     }
-
 }
 
diff --git a/pmd/regress/test/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRuleTest.java b/pmd/regress/test/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRuleTest.java
index 67e6d3a9a5..d9cd699b9c 100644
--- a/pmd/regress/test/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRuleTest.java
+++ b/pmd/regress/test/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRuleTest.java
@@ -9,12 +9,15 @@ import net.sourceforge.pmd.rules.IfStmtsMustUseBracesRule;
 
 public class IfStmtsMustUseBracesRuleTest extends RuleTst {
 
-
-    public void test1() throws Throwable {
+    public void testSimpleBad() throws Throwable {
         runTest("IfStmtsMustUseBraces1.java", 1, new IfStmtsMustUseBracesRule());
     }
 
-    public void test2() throws Throwable {
+    public void testSimpleOK() throws Throwable {
         runTest("IfStmtsMustUseBraces2.java", 0, new IfStmtsMustUseBracesRule());
     }
+
+    public void testNexted() throws Throwable {
+        runTest("IfStmtsMustUseBraces3.java", 1, new IfStmtsMustUseBracesRule());
+    }
 }
diff --git a/pmd/src/net/sourceforge/pmd/PMD.java b/pmd/src/net/sourceforge/pmd/PMD.java
index eb10877571..bdf7ae3b53 100644
--- a/pmd/src/net/sourceforge/pmd/PMD.java
+++ b/pmd/src/net/sourceforge/pmd/PMD.java
@@ -32,7 +32,7 @@ import java.util.List;
 public class PMD {
 
     /**
-     * @param reader - an InputStream to the Java code to analyse
+     * @param reader - a Reader to the Java code to analyse
      * @param ruleSet - the set of rules to process against the file
      * @param ctx - the context in which PMD is operating.  This contains the Renderer and whatnot
      */
diff --git a/pmd/src/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRule.java b/pmd/src/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRule.java
index 4e1fe48a94..540a514468 100644
--- a/pmd/src/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRule.java
+++ b/pmd/src/net/sourceforge/pmd/rules/IfStmtsMustUseBracesRule.java
@@ -34,6 +34,6 @@ public class IfStmtsMustUseBracesRule extends BracesRule {
             lineNumberOfLastViolation = node.getBeginLine();
         }
 
-        return null;
+        return super.visit(node, data);
     }
 }
diff --git a/pmd/test-data/IfStmtsMustUseBraces2.java b/pmd/test-data/IfStmtsMustUseBraces2.java
index 2da6cd0a24..804889874f 100644
--- a/pmd/test-data/IfStmtsMustUseBraces2.java
+++ b/pmd/test-data/IfStmtsMustUseBraces2.java
@@ -1,4 +1,4 @@
-public class IfStmtsMustUseBraces2 {
+public class IfStmtsMustUseBraces3 {
  public void foo() {	
   if (true) {
    int x=2;
diff --git a/pmd/test-data/IfStmtsMustUseBraces3.java b/pmd/test-data/IfStmtsMustUseBraces3.java
new file mode 100644
index 0000000000..559c08e638
--- /dev/null
+++ b/pmd/test-data/IfStmtsMustUseBraces3.java
@@ -0,0 +1,7 @@
+public class IfStmtsMustUseBraces3 {
+ public void foo() {	
+  if (true) {
+   if (true) bar();
+  }
+ }
+}
\ No newline at end of file
diff --git a/pmd/xdocs/credits.xml b/pmd/xdocs/credits.xml
index f481996f10..08e76643a5 100644
--- a/pmd/xdocs/credits.xml
+++ b/pmd/xdocs/credits.xml
@@ -10,6 +10,7 @@
     <section name="Credits">
         <subsection name="Individuals">
         <ul>
+            <li>Michael Sutherland - bug report</li>
             <li>Andrew Glover - ExcessivePublicCountRule, CouplingBetweenObjectsRule, ExcessiveImportsRule, documentation tweaks</li>
             <li>Egon Willighagen - pmd-web suggestion</li>
             <li>Carl Gilbert - DoubleCheckedLockingRule, ConstructorCallsOverridableMethodRule, bug reports, feature requests, and documentation improvements</li>