diff --git a/CHANGELOG.txt b/CHANGELOG.txt
index 7929b0465..0a1e908e5 100644
--- a/CHANGELOG.txt
+++ b/CHANGELOG.txt
@@ -1,5 +1,9 @@
 D2X-Rebirth Changelog
 
+20100620
+--------
+main/newdemo.c: For starting demo, seperate hide_menus() and game_setup() since between this, demo must load the actual level and it's palette; Fixed small bug in interpolate_frame() causing interpolation happening in very first frame causing file read corruption
+
 20100619
 --------
 main/titles.c: For briefings, keep elementes of show_briefing_bitmap and show_animated_bitmap in correct aspect
diff --git a/main/newdemo.c b/main/newdemo.c
index d4657fe18..e4b4ffa69 100644
--- a/main/newdemo.c
+++ b/main/newdemo.c
@@ -72,7 +72,7 @@ COPYRIGHT 1993-1999 PARALLAX SOFTWARE CORPORATION.  ALL RIGHTS RESERVED.
 #include "gauges.h"
 #include "player.h"
 #include "vecmat.h"
-#include "newmenu.h"
+#include "menu.h"
 #include "args.h"
 #include "palette.h"
 #include "multi.h"
@@ -193,6 +193,7 @@ ubyte DemoDoRight=0,DemoDoLeft=0;
 
 void newdemo_record_oneframeevent_update();
 extern int digi_link_sound_to_object3( int org_soundnum, short objnum, int forever, fix max_volume, fix  max_distance, int loop_start, int loop_end );
+extern window *game_setup(void);
 
 PHYSFS_file *infile;
 PHYSFS_file *outfile = NULL;
@@ -2998,6 +2999,9 @@ void interpolate_frame(fix d_play, fix d_recorded)
 	object *cur_objs;
 	static fix InterpolStep = fl2f(.01);
 
+	if (NewdemoFrameCount < 1)
+		return;
+
 	factor = fixdiv(d_play, d_recorded);
 	if (factor > F1_0)
 		factor = F1_0;
@@ -3564,10 +3568,12 @@ void newdemo_start_playback(char * filename)
 	PlayerCfg.Cockpit3DView[0] = PlayerCfg.Cockpit3DView[1] = CV_NONE;       //turn off 3d views on cockpit
 	DemoDoLeft = DemoDoRight = 0;
 	HUD_clear_messages();
+	if (!Game_wind)
+		hide_menus();
 	newdemo_playback_one_frame();       // this one loads new level
 	newdemo_playback_one_frame();       // get all of the objects to renderb game
 	if (!Game_wind)
-		game();							// create game environment
+		Game_wind = game_setup();							// create game environment
 }
 
 void newdemo_stop_playback()