Index: data/apps_gnome_settings_daemon_keybindings.schemas.in
===================================================================
--- data/apps_gnome_settings_daemon_keybindings.schemas.in.orig	2010-01-13 02:51:57.000000000 +1100
+++ data/apps_gnome_settings_daemon_keybindings.schemas.in	2010-01-13 16:44:53.000000000 +1100
@@ -14,6 +14,17 @@
 	</schema>
 
         <schema>
+	    <key>/schemas/apps/gnome_settings_daemon/toggle_mute</key>
+	    <applyto>/apps/gnome_settings_daemon/toggle_mute</applyto>
+	    <type>bool</type>
+	    <default>TRUE</default>
+	    <locale name="C">
+	        <short>Toggle Mute</short>
+		<long>Toggle the sound mixer's mute status when then mute button is pressed.</long>
+	    </locale>
+	</schema>
+
+        <schema>
             <key>/schemas/apps/gnome_settings_daemon/keybindings/volume_mute</key>
             <applyto>/apps/gnome_settings_daemon/keybindings/volume_mute</applyto>
             <type>string</type>
Index: plugins/media-keys/gsd-media-keys-manager.c
===================================================================
--- plugins/media-keys/gsd-media-keys-manager.c.orig	2010-01-13 02:51:57.000000000 +1100
+++ plugins/media-keys/gsd-media-keys-manager.c	2010-01-13 16:44:53.000000000 +1100
@@ -636,8 +636,10 @@ do_sound_action (GsdMediaKeysManager *ma
                  int                  type)
 {
         gboolean muted;
+        gboolean toggle_mute;
         guint vol, norm_vol_step;
         int vol_step;
+        GError *error;
 
         if (manager->priv->stream == NULL)
                 return;
@@ -658,7 +660,23 @@ do_sound_action (GsdMediaKeysManager *ma
         switch (type) {
         case MUTE_KEY:
                 muted = !muted;
-                gvc_mixer_stream_change_is_muted (manager->priv->stream, muted);
+
+                error = NULL;
+                toggle_mute = gconf_client_get_bool (manager->priv->conf_client,
+                                                     GCONF_MISC_DIR "/toggle_mute",
+                                                     &error);
+
+                if (error) {
+                        toggle_mute = TRUE;
+                        g_error_free (error);
+                }
+
+                if (toggle_mute)
+                        gvc_mixer_stream_change_is_muted (manager->priv->stream,
+                                                          muted);
+                else
+                        gvc_mixer_stream_change_is_muted (manager->priv->stream,
+                                                          TRUE);
                 break;
         case VOLUME_DOWN_KEY:
                 if (!muted && (vol <= norm_vol_step)) {