Index: src/fkey.c
==================================================================
--- src/fkey.c
+++ src/fkey.c
@@ -1085,42 +1085,57 @@
 ** entry in the aChange[] array is set to -1. If the column is modified,
 ** the value is 0 or greater. Parameter chngRowid is set to true if the
 ** UPDATE statement modifies the rowid fields of the table.
 **
 ** If any foreign key processing will be required, this function returns
-** true. If there is no foreign key related processing, this function 
-** returns false.
+** non-zero. If there is no foreign key related processing, this function 
+** returns zero.
+**
+** For an UPDATE, this function returns 2 if:
+**
+**   * There are any FKs for which pTab is the child and the parent table, or
+**   * the UPDATE modifies one or more parent keys for which the action is
+**     not "NO ACTION" (i.e. is CASCADE, SET DEFAULT or SET NULL).
+**
+** Or, assuming some other foreign key processing is required, 1.
 */
 int sqlite3FkRequired(
   Parse *pParse,                  /* Parse context */
   Table *pTab,                    /* Table being modified */
   int *aChange,                   /* Non-NULL for UPDATE operations */
   int chngRowid                   /* True for UPDATE that affects rowid */
 ){
+  int eRet = 0;
   if( pParse->db->flags&SQLITE_ForeignKeys ){
     if( !aChange ){
       /* A DELETE operation. Foreign key processing is required if the 
       ** table in question is either the child or parent table for any 
       ** foreign key constraint.  */
-      return (sqlite3FkReferences(pTab) || pTab->pFKey);
+      eRet = (sqlite3FkReferences(pTab) || pTab->pFKey);
     }else{
       /* This is an UPDATE. Foreign key processing is only required if the
       ** operation modifies one or more child or parent key columns. */
       FKey *p;
 
       /* Check if any child key columns are being modified. */
       for(p=pTab->pFKey; p; p=p->pNextFrom){
-        if( fkChildIsModified(pTab, p, aChange, chngRowid) ) return 1;
+        if( 0==sqlite3_stricmp(pTab->zName, p->zTo) ) return 2;
+        if( fkChildIsModified(pTab, p, aChange, chngRowid) ){
+          eRet = 1;
+        }
       }
 
       /* Check if any parent key columns are being modified. */
       for(p=sqlite3FkReferences(pTab); p; p=p->pNextTo){
-        if( fkParentIsModified(pTab, p, aChange, chngRowid) ) return 1;
+        if( fkParentIsModified(pTab, p, aChange, chngRowid) ){
+          if( p->aAction[1]!=OE_None ) return 2;
+          eRet = 1;
+        }
       }
     }
   }
-  return 0;
+  return eRet;
 }
 
 /*
 ** This function is called when an UPDATE or DELETE operation is being 
 ** compiled on table pTab, which is the parent table of foreign-key pFKey.

Index: src/update.c
==================================================================
--- src/update.c
+++ src/update.c
@@ -283,11 +283,11 @@
   **
   ** FIXME:  Be smarter about omitting indexes that use expressions.
   */
   for(j=0, pIdx=pTab->pIndex; pIdx; pIdx=pIdx->pNext, j++){
     int reg;
-    if( chngKey || hasFK || pIdx->pPartIdxWhere || pIdx==pPk ){
+    if( chngKey || hasFK>1 || pIdx->pPartIdxWhere || pIdx==pPk ){
       reg = ++pParse->nMem;
       pParse->nMem += pIdx->nColumn;
     }else{
       reg = 0;
       for(i=0; i<pIdx->nKeyCol; i++){
@@ -638,11 +638,11 @@
     ** is the column index supplied by the user.
     */
     assert( regNew==regNewRowid+1 );
 #ifdef SQLITE_ENABLE_PREUPDATE_HOOK
     sqlite3VdbeAddOp3(v, OP_Delete, iDataCur,
-        OPFLAG_ISUPDATE | ((hasFK || chngKey) ? 0 : OPFLAG_ISNOOP),
+        OPFLAG_ISUPDATE | ((hasFK>1 || chngKey) ? 0 : OPFLAG_ISNOOP),
         regNewRowid
     );
     if( eOnePass==ONEPASS_MULTI ){
       assert( hasFK==0 && chngKey==0 );
       sqlite3VdbeChangeP5(v, OPFLAG_SAVEPOSITION);
@@ -649,11 +649,11 @@
     }
     if( !pParse->nested ){
       sqlite3VdbeAppendP4(v, pTab, P4_TABLE);
     }
 #else
-    if( hasFK || chngKey ){
+    if( hasFK>1 || chngKey ){
       sqlite3VdbeAddOp2(v, OP_Delete, iDataCur, 0);
     }
 #endif
     if( bReplace || chngKey ){
       sqlite3VdbeJumpHere(v, addr1);