Index: rewrite.php
===================================================================
--- rewrite.php	(revision 10258)
+++ rewrite.php	(working copy)
@@ -1822,10 +1822,25 @@
 		$structure = ltrim($this->permalink_structure, '/');
 		if ( $this->using_index_permalinks() )
 			$structure = ltrim($this->permalink_structure, $this->index . '/');
+
+		//support for static posts page with custom permalink
+		$static_permalink = '';
+		if (get_option('show_on_front')) {
+			$id = get_option('page_for_posts');
+			if (!empty($id)) {
+				//get the page
+				$page = get_page($id);
+				
+				// use post_name for matching
+				$static_permalink = $page->post_name;
+			}
+		}
+
 		if ( 0 === strpos($structure, '%postname%') ||
 			 0 === strpos($structure, '%category%') ||
 			 0 === strpos($structure, '%tag%') ||
-			 0 === strpos($structure, '%author%') )
+			 0 === strpos($structure, '%author%') ||
+			 0 === strpos($structure, $static_permalink) )
 			 $this->use_verbose_page_rules = true;
 		else
 			$this->use_verbose_page_rules = false;