diff --git a/src/gallium/drivers/r300/r300_reg.h b/src/gallium/drivers/r300/r300_reg.h
index 79c778f9543..6825d998700 100644
--- a/src/gallium/drivers/r300/r300_reg.h
+++ b/src/gallium/drivers/r300/r300_reg.h
@@ -1478,6 +1478,7 @@ USE OR OTHER DEALINGS IN THE SOFTWARE.
 #       define R300_TX_PITCH_EN                  (1 << 31)
 #       define R300_TX_WIDTH(x)                  ((x) << 0)
 #       define R300_TX_HEIGHT(x)                 ((x) << 11)
+#       define R300_TX_NUM_LEVELS(x)             ((x) << 26)
 
 #define R300_TX_FORMAT1_0                   0x44C0
 	/* The interpretation of the format word by Wladimir van der Laan */
diff --git a/src/gallium/drivers/r300/r300_texture.c b/src/gallium/drivers/r300/r300_texture.c
index e006ecf3abe..f9dff037047 100644
--- a/src/gallium/drivers/r300/r300_texture.c
+++ b/src/gallium/drivers/r300/r300_texture.c
@@ -22,6 +22,8 @@
 
 #include "r300_texture.h"
 
+/* XXX maths need to go to util */
+
 static int minify(int i)
 {
     return MAX2(1, i >> 1);
@@ -30,25 +32,29 @@ static int minify(int i)
 static void r300_setup_texture_state(struct r300_texture* tex,
                                      unsigned width,
                                      unsigned height,
-                                     unsigned pitch)
+                                     unsigned pitch,
+                                     unsigned levels)
 {
     struct r300_texture_state* state = &tex->state;
 
     state->format0 = R300_TX_WIDTH((width - 1) & 0x7ff) |
-        R300_TX_HEIGHT((height - 1) & 0x7ff) | R300_TX_PITCH_EN;
+        R300_TX_HEIGHT((height - 1) & 0x7ff) |
+        R300_TX_NUM_LEVELS(levels) |
+        R300_TX_PITCH_EN;
 
     /* XXX */
     state->format1 = r300_translate_texformat(tex->tex.format);
 
     state->format2 = pitch - 1;
 
-    /* XXX
+    /* Assume (somewhat foolishly) that oversized textures will
+     * not be permitted by the state tracker. */
     if (width > 2048) {
-        state->pitch |= R300_TXWIDTH_11;
+        state->format2 |= R500_TXWIDTH_BIT11;
     }
     if (height > 2048) {
-        state->pitch |= R300_TXHEIGHT_11;
-    } */
+        state->format2 |= R500_TXHEIGHT_BIT11;
+    }
 }
 
 static void r300_setup_miptree(struct r300_texture* tex)
@@ -75,6 +81,7 @@ static void r300_setup_miptree(struct r300_texture* tex)
         tex->offset[i] = (tex->size + 63) & ~63;
         tex->size = tex->offset[i] + size;
 
+        /* Save stride of first level to the texture. */
         if (i == 0) {
             tex->stride = stride;
         }
@@ -98,9 +105,8 @@ static struct pipe_texture*
 
     r300_setup_miptree(tex);
 
-    /* XXX */
-    r300_setup_texture_state(tex, tex->tex.width[0], tex->tex.height[0],
-            tex->tex.width[0]);
+    r300_setup_texture_state(tex, template->width[0], template->height[0],
+            template->width[0], template->last_level);
 
     tex->buffer = screen->buffer_create(screen, 64,
                                         PIPE_BUFFER_USAGE_PIXEL,
@@ -164,6 +170,7 @@ static struct pipe_texture*
 {
     struct r300_texture* tex;
 
+    /* XXX we should start doing mips now... */
     if (base->target != PIPE_TEXTURE_2D ||
         base->last_level != 0 ||
         base->depth[0] != 1) {
@@ -181,8 +188,9 @@ static struct pipe_texture*
 
     tex->stride = *stride;
 
+    /* XXX */
     r300_setup_texture_state(tex, tex->tex.width[0], tex->tex.height[0],
-            tex->stride);
+            tex->stride, 0);
 
     pipe_buffer_reference(&tex->buffer, buffer);