diff --git a/stepmania/src/GameState.cpp b/stepmania/src/GameState.cpp
index c6ebd8a461..41c88ca534 100644
--- a/stepmania/src/GameState.cpp
+++ b/stepmania/src/GameState.cpp
@@ -65,7 +65,7 @@ void GameState::Reset()
 //	m_iCoins = 0;	// don't reset coin count!
 	m_MasterPlayerNumber = PLAYER_INVALID;
 	m_sPreferredGroup	= GROUP_ALL_MUSIC;
-	m_bChangedFailMode = false;
+	m_bChangedFailType = false;
 	for( p=0; p<NUM_PLAYERS; p++ )
 		m_PreferredDifficulty[p] = DIFFICULTY_INVALID;
 	m_SongSortOrder = SORT_INVALID;
@@ -542,3 +542,51 @@ int GameState::GetSumOfActiveAttackLevels( PlayerNumber pn )
 	return iSum;
 }
 
+template<class T>
+void setmin( T &a, const T &b )
+{
+	a = min(a, b);
+}
+
+template<class T>
+void setmax( T &a, const T &b )
+{
+	a = max(a, b);
+}
+
+/* Adjust the fail mode based on the chosen difficulty.  This must be called
+ * after the difficulty has been finalized (usually in ScreenSelectMusic or
+ * ScreenPlayerOptions), and before the fail mode is displayed or used (usually
+ * in ScreenSongOptions). */
+void GameState::AdjustFailType()
+{
+	/* If the player changed the fail mode explicitly, leave it alone. */
+	if( GAMESTATE->m_bChangedFailType )
+		return;
+
+	/* Find the easiest difficulty notes selected by either player. */
+	Difficulty dc = DIFFICULTY_INVALID;
+	for( int p=0; p<NUM_PLAYERS; p++ )
+	{
+		if( !GAMESTATE->IsHumanPlayer(p) )
+			continue;	// skip
+
+		dc = min(dc, GAMESTATE->m_pCurNotes[p]->GetDifficulty());
+	}
+
+	/* Reset the fail type to the default. */
+	SongOptions so;
+	so.FromString( PREFSMAN->m_sDefaultModifiers );
+	GAMESTATE->m_SongOptions.m_FailType = so.m_FailType;
+
+    /* Easy and beginner are never harder than FAIL_END_OF_SONG. */
+	if(dc <= DIFFICULTY_EASY)
+		setmax(GAMESTATE->m_SongOptions.m_FailType, SongOptions::FAIL_END_OF_SONG);
+
+	/* If beginner's steps were chosen, and this is the first stage,
+		* turn off failure completely--always give a second try. */
+	if(dc == DIFFICULTY_BEGINNER &&
+		!PREFSMAN->m_bEventMode && /* stage index is meaningless in event mode */
+		GAMESTATE->m_iCurrentStageIndex == 0)
+		setmax(GAMESTATE->m_SongOptions.m_FailType, SongOptions::FAIL_OFF);
+}
diff --git a/stepmania/src/GameState.h b/stepmania/src/GameState.h
index 7e527c6a26..7d6d13dc06 100644
--- a/stepmania/src/GameState.h
+++ b/stepmania/src/GameState.h
@@ -104,7 +104,7 @@ public:
 
 	CString			m_sLoadingMessage;	// used in loading screen
 	CString			m_sPreferredGroup;	// GROUP_ALL_MUSIC denotes no preferred group
-	bool			m_bChangedFailMode;	// true if the fail mode was changed in the song options screen
+	bool			m_bChangedFailType;	// true if FailType was changed in the song options screen
 	Difficulty		m_PreferredDifficulty[NUM_PLAYERS];
 	SongSortOrder	m_SongSortOrder;			// used by MusicWheel
 	bool			m_bEditing;			// NoteField does special stuff when this is true
@@ -203,6 +203,7 @@ public:
 	void StoreSelectedOptions();
 	void RestoreSelectedOptions();
 
+	void AdjustFailType();
 
 	// character stuff
 	vector<Character*> m_pCharacters;
diff --git a/stepmania/src/ScreenPlayerOptions.cpp b/stepmania/src/ScreenPlayerOptions.cpp
index 7c17c5f0ce..af0b16c50e 100644
--- a/stepmania/src/ScreenPlayerOptions.cpp
+++ b/stepmania/src/ScreenPlayerOptions.cpp
@@ -362,6 +362,8 @@ void ScreenPlayerOptions::GoToPrevState()
 
 void ScreenPlayerOptions::GoToNextState()
 {
+	GAMESTATE->AdjustFailType();
+
 	if( GAMESTATE->m_bEditing )
 		SCREENMAN->PopTopScreen();
 	else if( m_bGoToOptions )
diff --git a/stepmania/src/ScreenSelectMusic.cpp b/stepmania/src/ScreenSelectMusic.cpp
index 5edec0b3e3..a0ab41c699 100644
--- a/stepmania/src/ScreenSelectMusic.cpp
+++ b/stepmania/src/ScreenSelectMusic.cpp
@@ -669,51 +669,6 @@ void ScreenSelectMusic::HarderDifficulty( PlayerNumber pn )
 	AfterNotesChange( pn );
 }
 
-template<class T>
-void setmin( T &a, const T &b )
-{
-	a = min(a, b);
-}
-
-template<class T>
-void setmax( T &a, const T &b )
-{
-	a = max(a, b);
-}
-
-/* Adjust game options.  These settings may be overridden again later by the
- * SongOptions menu. */
-void ScreenSelectMusic::AdjustOptions()
-{
-	/* Find the easiest difficulty notes selected by either player. */
-	Difficulty dc = DIFFICULTY_INVALID;
-	for( int p=0; p<NUM_PLAYERS; p++ )
-	{
-		if( !GAMESTATE->IsHumanPlayer(p) )
-			continue;	// skip
-
-		dc = min(dc, GAMESTATE->m_pCurNotes[p]->GetDifficulty());
-	}
-
-	if( !GAMESTATE->m_bChangedFailMode )
-	{
-		/* Reset the fail type to the default. */
-		SongOptions so;
-		so.FromString( PREFSMAN->m_sDefaultModifiers );
-		GAMESTATE->m_SongOptions.m_FailType = so.m_FailType;
-
-        /* Easy and beginner are never harder than FAIL_END_OF_SONG. */
-		if(dc <= DIFFICULTY_EASY)
-			setmax(GAMESTATE->m_SongOptions.m_FailType, SongOptions::FAIL_END_OF_SONG);
-
-		/* If beginner's steps were chosen, and this is the first stage,
-		 * turn off failure completely--always give a second try. */
-		if(dc == DIFFICULTY_BEGINNER &&
-			!PREFSMAN->m_bEventMode && /* stage index is meaningless in event mode */
-			GAMESTATE->m_iCurrentStageIndex == 0)
-			setmax(GAMESTATE->m_SongOptions.m_FailType, SongOptions::FAIL_OFF);
-	}
-}
 
 void ScreenSelectMusic::HandleScreenMessage( const ScreenMessage SM )
 {
@@ -754,6 +709,7 @@ void ScreenSelectMusic::HandleScreenMessage( const ScreenMessage SM )
 		}
 		else
 		{
+			GAMESTATE->AdjustFailType();
 			SOUNDMAN->StopMusic();
 			SCREENMAN->SetNewScreen( NEXT_SCREEN(GAMESTATE->m_PlayMode) );
 		}
@@ -822,7 +778,6 @@ void ScreenSelectMusic::MenuStart( PlayerNumber pn )
 		if( GAMESTATE->IsCourseMode() )
 			GAMESTATE->m_PlayMode = PLAY_MODE_ARCADE;
 
-		AdjustOptions();
 		break;
 	}
 	case TYPE_COURSE:
diff --git a/stepmania/src/ScreenSelectMusic.h b/stepmania/src/ScreenSelectMusic.h
index 21a8a6cfec..7c9639330b 100644
--- a/stepmania/src/ScreenSelectMusic.h
+++ b/stepmania/src/ScreenSelectMusic.h
@@ -65,7 +65,6 @@ protected:
 	void SortOrderChanged();
 
 	void UpdateOptionsDisplays();
-	void AdjustOptions();
 
 	vector<Notes*> m_arrayNotes;
 	int					m_iSelection[NUM_PLAYERS];
diff --git a/stepmania/src/ScreenSongOptions.cpp b/stepmania/src/ScreenSongOptions.cpp
index 0840b30808..2eb967dbcd 100644
--- a/stepmania/src/ScreenSongOptions.cpp
+++ b/stepmania/src/ScreenSongOptions.cpp
@@ -104,7 +104,7 @@ void ScreenSongOptions::ExportOptions()
 	if( so.m_FailType !=	(SongOptions::FailType)m_iSelectedOption[0][SO_FAIL] )
 	{
 		/* The user is changing the fail mode explicitly; stop messing with it. */
-		GAMESTATE->m_bChangedFailMode = true;
+		GAMESTATE->m_bChangedFailType = true;
 		so.m_FailType =	(SongOptions::FailType)m_iSelectedOption[0][SO_FAIL];
 	}
 	so.m_bAssistTick = !!m_iSelectedOption[0][SO_ASSIST];