diff --git a/VERSION b/VERSION
index 9cd82f17..2c74dec2 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-Version 2.0.9 (2012-09-19 00:00:12) stable
+Version 2.0.9 (2012-09-19 00:03:03) stable
diff --git a/gluon/tools.py b/gluon/tools.py
index 3a0bf7a5..6c1d21ad 100644
--- a/gluon/tools.py
+++ b/gluon/tools.py
@@ -607,6 +607,7 @@ class Mail(object):
             # no cryptography process as usual
             payload=payload_in
 
+        sender = sender % dict(sender=self.settings.sender)
         payload['From'] = encoded_or_raw(sender.decode(encoding))
         origTo = to[:]
         if to:
@@ -624,7 +625,6 @@ class Mail(object):
         for k,v in headers.iteritems():
             payload[k] = encoded_or_raw(v.decode(encoding))
         result = {}
-        sender = sender % dict(sender=self.settings.sender)
         try:            
             if self.settings.server == 'logging':
                 logger.warn('email not sent\n%s\nFrom: %s\nTo: %s\nSubject: %s\n\n%s\n%s\n' % \