diff --git a/LUFA/ChangeLog.txt b/LUFA/ChangeLog.txt
index 98b82d35a4..bca8d9fb9e 100644
--- a/LUFA/ChangeLog.txt
+++ b/LUFA/ChangeLog.txt
@@ -78,6 +78,8 @@
   *  - Changed LED board driver code to define dummy LED masks for the first four board LEDs, so that user code can be compiled for boards
   *    with less than four LEDs without code modifications (thanks to Morten Lund)
   *  - Changed HWB board driver to Buttons driver, to allow for the support of future boards with more than one mounted GPIO button
+  *  - Serial driver now correctly calculates the baud register value when in double speed mode
+  *  - Init function of the Serial driver is now static inline to product smaller code for the common-case of static init values
   *    
   *
   *  \section Sec_ChangeLog090401 Version 090401
diff --git a/LUFA/Drivers/Peripheral/Serial.c b/LUFA/Drivers/Peripheral/Serial.c
index e1c7449223..f9aa6a7322 100644
--- a/LUFA/Drivers/Peripheral/Serial.c
+++ b/LUFA/Drivers/Peripheral/Serial.c
@@ -30,18 +30,6 @@
 
 #include "Serial.h"
 
-void Serial_Init(const uint32_t BaudRate, const bool DoubleSpeed)
-{
-	UCSR1A = ((DoubleSpeed) ? (1 << U2X1) : 0);
-	UCSR1B = ((1 << RXEN1)  | (1 << TXEN1));
-	UCSR1C = ((1 << UCSZ11) | (1 << UCSZ10));
-	
-	DDRD  |= (1 << 3);	
-	PORTD |= (1 << 2);
-	
-	UBRR1  = SERIAL_UBBRVAL(BaudRate);
-}
-
 void Serial_TxString_P(const char *FlashStringPtr)
 {
 	uint8_t CurrByte;
diff --git a/LUFA/Drivers/Peripheral/Serial.h b/LUFA/Drivers/Peripheral/Serial.h
index a50456b37e..7e718fe0c2 100644
--- a/LUFA/Drivers/Peripheral/Serial.h
+++ b/LUFA/Drivers/Peripheral/Serial.h
@@ -63,7 +63,7 @@
 		#endif
 
 	/* Public Interface - May be used in end-application: */
-		/* Macros: */	
+		/* Macros: */
 			/** Macro for calculating the baud value from a given baud rate when the U2X (double speed) bit is
 			 *  not set.
 			 */
@@ -86,13 +86,6 @@
 			#endif
 
 		/* Function Prototypes: */
-			/** Initializes the USART, ready for serial data transmission and reception.
-			 *
-			 *  \param BaudRate     Baud rate to configure the USART to
-			 *  \param DoubleSpeed  Enables double speed mode when set, halving the sample time to double the baud rate
-			 */
-			void Serial_Init(const uint32_t BaudRate, const bool DoubleSpeed);
-
 			/** Transmits a given string located in program space (FLASH) through the USART.
 			 *
 			 *  \param FlashStringPtr  Pointer to a string located in program space
@@ -106,6 +99,24 @@
 			void Serial_TxString(const char *StringPtr) ATTR_NON_NULL_PTR_ARG(1);
 
 		/* Inline Functions: */
+			/** Initializes the USART, ready for serial data transmission and reception. This initialises the interface to
+			 *  standard 8-bit, no parity, 1 stop bit settings suitable for most applications.
+			 *
+			 *  \param BaudRate     Serial baud rate, in bits per second
+			 *  \param DoubleSpeed  Enables double speed mode when set, halving the sample time to double the baud rate
+			 */
+			static inline void Serial_Init(const uint32_t BaudRate, const bool DoubleSpeed)
+			{
+				UCSR1A = (DoubleSpeed ? (1 << U2X1) : 0);
+				UCSR1B = ((1 << TXEN1)  | (1 << RXEN1));
+				UCSR1C = ((1 << UCSZ11) | (1 << UCSZ10));
+				
+				DDRD  |= (1 << 3);	
+				PORTD |= (1 << 2);
+				
+				UBRR1  = (DoubleSpeed ? SERIAL_2X_UBBRVAL(BaudRate) : SERIAL_UBBRVAL(BaudRate));
+			}
+
 			/** Transmits a given byte through the USART.
 			 *
 			 *  \param DataByte  Byte to transmit through the USART