diff --git a/drivers/net/sky2.c b/drivers/net/sky2.c
index f68ccfb..178249a 100644
--- a/drivers/net/sky2.c
+++ b/drivers/net/sky2.c
@@ -625,13 +625,16 @@
 
 }
 
-static void sky2_ramset(struct sky2_hw *hw, u16 q, u32 start, size_t len)
+/* Assign Ram Buffer allocation.
+ * start and end are in units of 4k bytes
+ * ram registers are in units of 64bit words
+ */
+static void sky2_ramset(struct sky2_hw *hw, u16 q, u8 startk, u8 endk)
 {
-	u32 end;
+	u32 start, end;
 
-	start /= 8;
-	len /= 8;
-	end = start + len - 1;
+	start = startk * 4096/8;
+	end = (endk * 4096/8) - 1;
 
 	sky2_write8(hw, RB_ADDR(q, RB_CTRL), RB_RST_CLR);
 	sky2_write32(hw, RB_ADDR(q, RB_START), start);
@@ -640,14 +643,19 @@
 	sky2_write32(hw, RB_ADDR(q, RB_RP), start);
 
 	if (q == Q_R1 || q == Q_R2) {
-		u32 rxup, rxlo;
+		u32 space = (endk - startk) * 4096/8;
+		u32 tp = space - space/4;
 
-		rxlo = len/2;
-		rxup = rxlo + len/4;
+		/* On receive queue's set the thresholds
+		 * give receiver priority when > 3/4 full
+		 * send pause when down to 2K
+		 */
+		sky2_write32(hw, RB_ADDR(q, RB_RX_UTHP), tp);
+		sky2_write32(hw, RB_ADDR(q, RB_RX_LTHP), space/2);
 
-		/* Set thresholds on receive queue's */
-		sky2_write32(hw, RB_ADDR(q, RB_RX_UTPP), rxup);
-		sky2_write32(hw, RB_ADDR(q, RB_RX_LTPP), rxlo);
+		tp = space - 2048/8;
+		sky2_write32(hw, RB_ADDR(q, RB_RX_UTPP), tp);
+		sky2_write32(hw, RB_ADDR(q, RB_RX_LTPP), space/4);
 	} else {
 		/* Enable store & forward on Tx queue's because
 		 * Tx FIFO is only 1K on Yukon
@@ -1002,19 +1010,19 @@
 
 	sky2_mac_init(hw, port);
 
-	/* Configure RAM buffers */
-	if (hw->chip_id == CHIP_ID_YUKON_FE ||
-	    (hw->chip_id == CHIP_ID_YUKON_EC && hw->chip_rev == 2))
-		ramsize = 4096;
-	else {
-		u8 e0 = sky2_read8(hw, B2_E_0);
-		ramsize = (e0 == 0) ? (128 * 1024) : (e0 * 4096);
-	}
+	/* Determine available ram buffer space (in 4K blocks).
+	 * Note: not sure about the FE setting below yet
+	 */
+	if (hw->chip_id == CHIP_ID_YUKON_FE)
+		ramsize = 4;
+	else
+		ramsize = sky2_read8(hw, B2_E_0);
 
-	/* 2/3 for Rx */
-	rxspace = (2 * ramsize) / 3;
+	/* Give transmitter one third (rounded up) */
+	rxspace = ramsize - (ramsize + 2) / 3;
+
 	sky2_ramset(hw, rxqaddr[port], 0, rxspace);
-	sky2_ramset(hw, txqaddr[port], rxspace, ramsize - rxspace);
+	sky2_ramset(hw, txqaddr[port], rxspace, ramsize);
 
 	/* Make sure SyncQ is disabled */
 	sky2_write8(hw, RB_ADDR(port == 0 ? Q_XS1 : Q_XS2, RB_CTRL),