diff --git a/lib/msf/core/encoder.rb b/lib/msf/core/encoder.rb
index 95839a3914..083dc51598 100644
--- a/lib/msf/core/encoder.rb
+++ b/lib/msf/core/encoder.rb
@@ -383,17 +383,17 @@ protected
 			# Scan each byte position
 			0.upto(decoder_key_size - 1) { |index|
 				
-			# Subtract the bad and leave the good
-			good_keys = allset-bad_keys[index].keys
+				# Subtract the bad and leave the good
+				good_keys = allset-bad_keys[index].keys
 
-			# Was there anything left for this index?
-			if (good_keys.length == 0)
-				# Not much we can do about this :(
-				return nil
-			end
+				# Was there anything left for this index?
+				if (good_keys.length == 0)
+					# Not much we can do about this :(
+					return nil
+				end
 
-			# Set the appropriate key byte
-			key_bytes[index] = good_keys[ rand(good_keys.length) ]
+				# Set the appropriate key byte
+				key_bytes[index] = good_keys[ rand(good_keys.length) ]
 			}
 
 			# Assume that we're going to rock this shit...
diff --git a/lib/msf/core/encoder/xor.rb b/lib/msf/core/encoder/xor.rb
index 660171ea6c..d713d770ba 100644
--- a/lib/msf/core/encoder/xor.rb
+++ b/lib/msf/core/encoder/xor.rb
@@ -11,7 +11,7 @@ class Msf::Encoder::Xor < Msf::Encoder
 	# Encodes a block using the XOR encoder from the Rex library.
 	#
 	def encode_block(state, block)
-		return Rex::Encoding::Xor::Dword.encode(block, [ state.key ].pack(state.decoder_key_pack))[0]
+		Rex::Encoding::Xor::Dword.encode(block, [ state.key ].pack(state.decoder_key_pack))[0]
 	end
 
 	#
@@ -24,15 +24,14 @@ class Msf::Encoder::Xor < Msf::Encoder
 		# Scan through all the badchars and build out the bad_keys array
 		# based on the XOR'd combinations that can occur at certain bytes
 		# to produce bad characters
-		badchars.each_byte { |badchar|
-			
-			buf.each_byte { |byte|
+		buf.each_byte { |byte|
+			badchars.each_byte { |badchar|
 				bad_keys[byte_idx % decoder_key_size][byte ^ badchar] = true
-				
-				byte_idx += 1
 			}
-			
-			# Assume our key itself is placed w/o encoding
+			byte_idx += 1
+		}
+
+		badchars.each_byte { |badchar|
 			0.upto(decoder_key_size-1) { |i|
 				bad_keys[i][badchar] = true
 			}
@@ -41,27 +40,4 @@ class Msf::Encoder::Xor < Msf::Encoder
 		return bad_keys
 	end
 	
-	# Added for test purposes, remove once we resolve encoding issues...
-	def find_key_verify(buf, key_bytes, badchars)
-		ekey = key_bytes_to_buffer(key_bytes)
-
-		out = ''
-		idx = 0
-		while (idx < buf.length)
-			0.upto(ekey.length-1) do |i|
-				break if ! buf[idx+i]
-				out << (buf[idx+i]^ekey[i]).chr
-			end
-			
-			idx += ekey.length
-		end
-		
-		badchars.each do |c|
-			return false if out.index(c)
-		end
-		
-		true
-	end
-
-	
 end