diff --git a/src/java/com/threerings/presents/server/ClientManager.java b/src/java/com/threerings/presents/server/ClientManager.java
new file mode 100644
index 000000000..ec5fc9af5
--- /dev/null
+++ b/src/java/com/threerings/presents/server/ClientManager.java
@@ -0,0 +1,60 @@
+//
+// $Id: ClientManager.java,v 1.1 2001/06/01 22:12:03 mdb Exp $
+
+package com.threerings.cocktail.cher.server;
+
+import java.io.IOException;
+
+import com.threerings.cocktail.cher.Log;
+import com.threerings.cocktail.cher.server.net.*;
+
+/**
+ * The client manager is responsible for managing the clients (surprise,
+ * surprise) which are slightly more than just connections. Clients
+ * persist in the absence of connections in case a user goes bye bye
+ * unintentionally and wants to reconnect and continue their session.
+ */
+public class ClientManager implements ConnectionObserver
+{
+    public ClientManager (ConnectionManager conmgr)
+    {
+        // register ourselves as a connection observer
+        conmgr.addConnectionObserver(this);
+    }
+
+    /**
+     * Called when a new connection is established with the connection
+     * manager. Only fully authenticated connections will be passed on to
+     * the connection observer.
+     *
+     * @param conn The newly established connection.
+     */
+    public void connectionEstablished (Connection conn)
+    {
+        Log.info("Connection established: " + conn);
+    }
+
+    /**
+     * Called if a connection fails for any reason. If a connection fails,
+     * <code>connectionClosed</code> will not be called. This call to
+     * <code>connectionFailed</code> is the last the observers will hear
+     * about it.
+     *
+     * @param conn The connection in that failed.
+     * @param fault The exception associated with the failure.
+     */
+    public void connectionFailed (Connection conn, IOException fault)
+    {
+        Log.info("Connection failed: " + conn + ": " + fault);
+    }
+
+    /**
+     * Called when a connection has been closed in an orderly manner.
+     *
+     * @param conn The recently closed connection.
+     */
+    public void connectionClosed (Connection conn)
+    {
+        Log.info("Connection closed: " + conn);
+    }
+}
diff --git a/src/java/com/threerings/presents/server/PresentsServer.java b/src/java/com/threerings/presents/server/PresentsServer.java
index 2ff9452a4..8b247734a 100644
--- a/src/java/com/threerings/presents/server/PresentsServer.java
+++ b/src/java/com/threerings/presents/server/PresentsServer.java
@@ -1,5 +1,5 @@
 //
-// $Id: PresentsServer.java,v 1.3 2001/06/01 20:35:39 mdb Exp $
+// $Id: PresentsServer.java,v 1.4 2001/06/01 22:12:03 mdb Exp $
 
 package com.threerings.cocktail.cher.server;
 
@@ -18,7 +18,10 @@ public class CherServer
     public static AuthManager authmgr;
 
     /** The manager of network connections. */
-    public static ConnectionManager cmgr;
+    public static ConnectionManager conmgr;
+
+    /** The manager of clients. */
+    public static ClientManager clmgr;
 
     /** The distributed object manager. */
     public static DObjectManager omgr;
@@ -32,7 +35,9 @@ public class CherServer
             // create our authentication manager
             authmgr = new AuthManager(new DummyAuthenticator());
             // create our connection manager
-            cmgr = new ConnectionManager(authmgr);
+            conmgr = new ConnectionManager(authmgr);
+            // create our client manager
+            clmgr = new ClientManager(conmgr);
             // create our distributed object manager
             omgr = new CherDObjectMgr();
 
@@ -51,7 +56,7 @@ public class CherServer
         // start up the auth manager
         authmgr.start();
         // start up the connection manager
-        cmgr.start();
+        conmgr.start();
         // invoke the dobjmgr event loop
         ((CherDObjectMgr)omgr).run();
     }
diff --git a/src/java/com/threerings/presents/server/net/AuthManager.java b/src/java/com/threerings/presents/server/net/AuthManager.java
index 0d3a2ba67..8584a9412 100644
--- a/src/java/com/threerings/presents/server/net/AuthManager.java
+++ b/src/java/com/threerings/presents/server/net/AuthManager.java
@@ -1,5 +1,5 @@
 //
-// $Id: AuthManager.java,v 1.2 2001/05/30 23:58:31 mdb Exp $
+// $Id: AuthManager.java,v 1.3 2001/06/01 22:12:03 mdb Exp $
 
 package com.threerings.cocktail.cher.server.net;
 
@@ -39,6 +39,16 @@ public class AuthManager extends LoopingThread
         _authq.append(aconn);
     }
 
+    /**
+     * The connection manager introduces itself to the auth manager so
+     * that the auth manager can let it know when it has authorized
+     * connections.
+     */
+    public void setConnectionManager (ConnectionManager conmgr)
+    {
+        _conmgr = conmgr;
+    }
+
     /**
      * Process auth requests.
      */
@@ -54,6 +64,10 @@ public class AuthManager extends LoopingThread
             // now ship the response back
             aconn.postMessage(rsp);
 
+            // if the authentication request was granted, let the
+            // connection manager know that we just authed a connection
+            _conmgr.connectionDidAuthenticate(aconn);
+
         } catch (Exception e) {
             Log.warning("Failure processing authreq [conn=" + aconn + "].");
             Log.logStackTrace(e);
@@ -61,5 +75,6 @@ public class AuthManager extends LoopingThread
     }
 
     protected Authenticator _author;
+    protected ConnectionManager _conmgr;
     protected Queue _authq = new Queue();
 }
diff --git a/src/java/com/threerings/presents/server/net/Connection.java b/src/java/com/threerings/presents/server/net/Connection.java
index 7db51fd8f..82be5235e 100644
--- a/src/java/com/threerings/presents/server/net/Connection.java
+++ b/src/java/com/threerings/presents/server/net/Connection.java
@@ -1,5 +1,5 @@
 //
-// $Id: Connection.java,v 1.2 2001/05/30 23:58:31 mdb Exp $
+// $Id: Connection.java,v 1.3 2001/06/01 22:12:03 mdb Exp $
 
 package com.threerings.cocktail.cher.server.net;
 
@@ -62,6 +62,15 @@ public abstract class Connection implements NetEventHandler
         return _out;
     }
 
+    /**
+     * Returns the non-blocking socket object used to construct this
+     * connection.
+     */
+    public NonblockingSocket getSocket ()
+    {
+        return _socket;
+    }
+
     /**
      * Called when our client socket has data available for reading.
      */
diff --git a/src/java/com/threerings/presents/server/net/ConnectionManager.java b/src/java/com/threerings/presents/server/net/ConnectionManager.java
index 8bda0ed65..244b6c95a 100644
--- a/src/java/com/threerings/presents/server/net/ConnectionManager.java
+++ b/src/java/com/threerings/presents/server/net/ConnectionManager.java
@@ -1,10 +1,11 @@
 //
-// $Id: ConnectionManager.java,v 1.2 2001/05/30 23:58:31 mdb Exp $
+// $Id: ConnectionManager.java,v 1.3 2001/06/01 22:12:03 mdb Exp $
 
 package com.threerings.cocktail.cher.server.net;
 
 import java.io.DataOutputStream;
 import java.io.IOException;
+import java.util.ArrayList;
 import ninja2.core.io_core.nbio.*;
 
 import com.samskivert.util.LoopingThread;
@@ -40,6 +41,8 @@ public class ConnectionManager extends LoopingThread
 
         // keep a handle on our authentication manager
         _authmgr = authmgr;
+        // complete the introductions
+        _authmgr.setConnectionManager(this);
 
         // we use this to wait for activity on our sockets
         _selset = new SelectSet();
@@ -69,6 +72,61 @@ public class ConnectionManager extends LoopingThread
         return _authmgr;
     }
 
+    /**
+     * Adds the specified connection observer to the observers list.
+     * Connection observers will be notified of connection-related
+     * events. An observer will not be added to the list twice.
+     *
+     * @see ConnectionObserver
+     */
+    public void addConnectionObserver (ConnectionObserver observer)
+    {
+        synchronized (_observers) {
+            if (!_observers.contains(observer)) {
+                _observers.add(observer);
+            }
+        }
+    }
+
+    /**
+     * Removes the specified connection observer from the observers list.
+     */
+    public void removeConnectionObserver (ConnectionObserver observer)
+    {
+        synchronized (_observers) {
+            _observers.remove(observer);
+        }
+    }
+
+    /**
+     * Notifies the connection observers of a connection event. Used
+     * internally.
+     */
+    protected void notifyObservers (int code, Connection conn,
+                                    IOException cause)
+    {
+        synchronized (_observers) {
+            for (int i = 0; i < _observers.size(); i++) {
+                ConnectionObserver obs =
+                    (ConnectionObserver)_observers.get(i);
+                switch (code) {
+                case CONNECTION_ESTABLISHED:
+                    obs.connectionEstablished(conn);
+                    break;
+                case CONNECTION_FAILED:
+                    obs.connectionFailed(conn, cause);
+                    break;
+                case CONNECTION_CLOSED:
+                    obs.connectionClosed(conn);
+                    break;
+                default:
+                    throw new RuntimeException("Invalid code supplied to " +
+                                               "notifyObservers: " + code);
+                }
+            }
+        }
+    }
+
     protected void willStart ()
     {
         Log.info("Connection Manager thread running.");
@@ -95,6 +153,30 @@ public class ConnectionManager extends LoopingThread
             }
         }
 
+        // check for connections that have completed authentication
+        Connection conn;
+        while ((conn = (Connection)_authq.getNonBlocking()) != null) {
+            // remove the old connection from the select set
+            _selset.remove(conn.getSelectItem());
+
+            // construct a new running connection to handle this
+            // connections network traffic from here on out
+            try {
+                RunningConnection rconn =
+                    new RunningConnection(this, conn.getSocket());
+                // wire this connection up to receive network events
+                _selset.add(rconn.getSelectItem());
+
+                // and let our observers know about our new connection
+                notifyObservers(CONNECTION_ESTABLISHED, rconn, null);
+
+            } catch (IOException ioe) {
+                Log.warning("Failure upgrading authing connection to " +
+                            "running connection.");
+                Log.logStackTrace(ioe);
+            }
+        }
+
         // check for incoming network events
         int ecount = _selset.select(SELECT_LOOP_TIME);
         if (ecount == 0) {
@@ -185,6 +267,7 @@ public class ConnectionManager extends LoopingThread
         _selset.remove(conn.getSelectItem());
 
         // let our observers know what's up
+        notifyObservers(CONNECTION_FAILED, conn, ioe);
     }
 
     /**
@@ -198,6 +281,17 @@ public class ConnectionManager extends LoopingThread
         _selset.remove(conn.getSelectItem());
 
         // let our observers know what's up
+        notifyObservers(CONNECTION_CLOSED, conn, null);
+    }
+
+    /**
+     * Called by the auth manager to indicate that a connection was
+     * successfully authenticated.
+     */
+    void connectionDidAuthenticate (Connection conn)
+    {
+        // slap this sucker onto the authenticated connections queue
+        _authq.append(conn);
     }
 
     protected AuthManager _authmgr;
@@ -210,6 +304,10 @@ public class ConnectionManager extends LoopingThread
     protected FramingOutputStream _framer;
     protected DataOutputStream _dout;
 
+    protected Queue _authq = new Queue();
+
+    protected ArrayList _observers = new ArrayList();
+
     /** The default port on which we listen for connections. */
     protected static final int DEFAULT_CM_PORT = 4007;
 
@@ -219,6 +317,11 @@ public class ConnectionManager extends LoopingThread
      */
     protected static final int SELECT_LOOP_TIME = 30 * 1000;
 
+    // codes for notifyObservers()
+    protected static final int CONNECTION_ESTABLISHED = 0;
+    protected static final int CONNECTION_FAILED = 1;
+    protected static final int CONNECTION_CLOSED = 2;
+
     // register our shared objects
     static {
         Registry.registerTypedObjects();
diff --git a/src/java/com/threerings/presents/server/net/ConnectionObserver.java b/src/java/com/threerings/presents/server/net/ConnectionObserver.java
index 47855fa87..950f83907 100644
--- a/src/java/com/threerings/presents/server/net/ConnectionObserver.java
+++ b/src/java/com/threerings/presents/server/net/ConnectionObserver.java
@@ -1,5 +1,5 @@
 //
-// $Id: ConnectionObserver.java,v 1.2 2001/05/30 23:58:31 mdb Exp $
+// $Id: ConnectionObserver.java,v 1.3 2001/06/01 22:12:03 mdb Exp $
 
 package com.threerings.cocktail.cher.server.net;
 
@@ -19,7 +19,8 @@ public interface ConnectionObserver
 {
     /**
      * Called when a new connection is established with the connection
-     * manager.
+     * manager. Only fully authenticated connections will be passed on to
+     * the connection observer.
      *
      * @param conn The newly established connection.
      */
@@ -28,7 +29,7 @@ public interface ConnectionObserver
     /**
      * Called if a connection fails for any reason. If a connection fails,
      * <code>connectionClosed</code> will not be called. This call to
-     * <code>connectionFailued</code> is the last the observers will hear
+     * <code>connectionFailed</code> is the last the observers will hear
      * about it.
      *
      * @param conn The connection in that failed.