Index: wp-includes/author-template.php
===================================================================
--- wp-includes/author-template.php	(revision 11530)
+++ wp-includes/author-template.php	(working copy)
@@ -270,27 +270,26 @@
 
 		$author = get_userdata( $author->ID );
 		$posts = (isset($author_count[$author->ID])) ? $author_count[$author->ID] : 0;
-		$name = $author->display_name;
 
+		if ( $posts == 0 && $hide_empty ) {
+			// No need to go any further.
+			continue;		
+		}
+
+		$name = $author->display_name;
 		if ( $show_fullname && ($author->first_name != '' && $author->last_name != '') )
 			$name = "$author->first_name $author->last_name";
-
+			
 		if( !$html ) {
-			if ( $posts == 0 ) {
-				if ( ! $hide_empty )
-					$return .= $name . ', ';
-			} else
-				$return .= $name . ', ';
-
-			// No need to go further to process HTML.
+			$return .= $name . ', ';
+			// No need to go further to process not HTML.
 			continue;
 		}
-
-		if ( !($posts == 0 && $hide_empty) && 'list' == $style )
+ 
+		if ( 'list' == $style )
 			$return .= '<li>';
 		if ( $posts == 0 ) {
-			if ( ! $hide_empty )
-				$link = $name;
+			$link = $name;
 		} else {
 			$link = '<a href="' . get_author_posts_url($author->ID, $author->user_nicename) . '" title="' . sprintf(__("Posts by %s"), esc_attr($author->display_name)) . '">' . $name . '</a>';
 
@@ -325,11 +324,11 @@
 
 		}
 
-		if ( !($posts == 0 && $hide_empty) && 'list' == $style )
+		if ( 'list' == $style )
 			$return .= $link . '</li>';
-		else if ( ! $hide_empty )
+		else 
 			$return .= $link . ', ';
-	}
+	} 
 
 	$return = trim($return, ', ');