Index: wp-includes/query.php
===================================================================
--- wp-includes/query.php	(revision 10552)
+++ wp-includes/query.php	(working copy)
@@ -331,7 +331,7 @@
  */
 function is_front_page () {
 	// most likely case
-	if ( 'posts' == get_option('show_on_front') && is_home() )
+	if ( 'page' != get_option('show_on_front') && is_home() )
 		return true;
 	elseif ( 'page' == get_option('show_on_front') && get_option('page_on_front') && is_page(get_option('page_on_front')) )
 		return true;