diff --git a/ChangeLog b/ChangeLog
index 60018ff1..421e9e6f 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2008-03-17  Federico Di Gregorio <fog@initd.org>
+
+	* psycopg/adapter_datetime.c: fixed double decref when using 
+	a PyObject as a parameter in a nested call (line 415).
+
 2008-03-17  James Henstridge  <james@jamesh.id.au>
 
 	* psycopg/typecast.c (typecast_parse_time): give the correct
diff --git a/NEWS b/NEWS
index c07f16cc..61cf125d 100644
--- a/NEWS
+++ b/NEWS
@@ -1,4 +1,4 @@
-What's new in psycopg 2.0.7 (unreleased)
+What's new in psycopg 2.0.7
 ---------------------------
 
 * Improved error handling:
@@ -43,7 +43,6 @@ What's new in psycopg 2.0.7 (unreleased)
     to set the PSYCOPG_DEBUG environment variable to turn on debug
     spew.
 
-
 What's new in psycopg 2.0.6
 ---------------------------
 
diff --git a/ZPsycopgDA/DA.py b/ZPsycopgDA/DA.py
index 5afa4294..a80f9fde 100644
--- a/ZPsycopgDA/DA.py
+++ b/ZPsycopgDA/DA.py
@@ -18,7 +18,7 @@
 # See the LICENSE file for details.
 
 
-ALLOWED_PSYCOPG_VERSIONS = ('2.0.6',)
+ALLOWED_PSYCOPG_VERSIONS = ('2.0.7',)
 
 import sys
 import time
diff --git a/psycopg/adapter_datetime.c b/psycopg/adapter_datetime.c
index 98922d3c..1a68a678 100644
--- a/psycopg/adapter_datetime.c
+++ b/psycopg/adapter_datetime.c
@@ -406,17 +406,18 @@ psyco_TimestampFromTicks(PyObject *self, PyObject *args)
     t = (time_t)round(ticks);
     ticks -= (double)t;
     if (localtime_r(&t, &tm)) {
-        args = Py_BuildValue("iiiiidO",
-                             tm.tm_year+1900, tm.tm_mon+1, tm.tm_mday,
-                             tm.tm_hour, tm.tm_min,
-                             (double)tm.tm_sec + ticks,
-                             pyPsycopgTzLOCAL);
-        if (args) {
-/*            Dprintf("psyco_TimestampFromTicks: args->refcnt = %d", args->ob_refcnt);*/
-            res = psyco_Timestamp(self, args);
-            Py_DECREF(args);
+        PyObject *value = Py_BuildValue("iiiiidO",
+            tm.tm_year+1900, tm.tm_mon+1, tm.tm_mday,
+            tm.tm_hour, tm.tm_min,
+            (double)tm.tm_sec + ticks,
+            pyPsycopgTzLOCAL);
+        if (value) {
+            /* we don't decref the value here because the call to
+               psyco_Timestamp will do that by calling PyArg_ParseTuple */
+            res = psyco_Timestamp(self, value);
         }
     }
+    
     return res;
 }
 
diff --git a/setup.py b/setup.py
index 9dfc79b4..09181d4c 100644
--- a/setup.py
+++ b/setup.py
@@ -54,7 +54,7 @@ from distutils.command.build_ext import build_ext
 from distutils.sysconfig import get_python_inc
 from distutils.ccompiler import get_default_compiler
 
-PSYCOPG_VERSION = '2.0.6'
+PSYCOPG_VERSION = '2.0.7'
 version_flags   = []
 
 PLATFORM_IS_WINDOWS = sys.platform.lower().startswith('win')