diff --git a/lib/puppet/application/inspect.rb b/lib/puppet/application/inspect.rb
index b4d263545..5254afbd0 100644
--- a/lib/puppet/application/inspect.rb
+++ b/lib/puppet/application/inspect.rb
@@ -1,104 +1,119 @@
 require 'puppet'
 require 'puppet/application'
 require 'puppet/file_bucket/dipper'
 
 class Puppet::Application::Inspect < Puppet::Application
 
   should_parse_config
   run_mode :agent
 
   option("--debug","-d")
   option("--verbose","-v")
 
   option("--logdest LOGDEST", "-l") do |arg|
     begin
       Puppet::Util::Log.newdestination(arg)
       options[:logset] = true
     rescue => detail
       $stderr.puts detail.to_s
     end
   end
 
   def setup
     exit(Puppet.settings.print_configs ? 0 : 1) if Puppet.settings.print_configs?
 
     raise "Inspect requires reporting to be enabled. Set report=true in puppet.conf to enable reporting." unless Puppet[:report]
 
     @report = Puppet::Transaction::Report.new("inspect")
 
     Puppet::Util::Log.newdestination(@report)
     Puppet::Util::Log.newdestination(:console) unless options[:logset]
 
     trap(:INT) do
       $stderr.puts "Exiting"
       exit(1)
     end
 
     if options[:debug]
       Puppet::Util::Log.level = :debug
     elsif options[:verbose]
       Puppet::Util::Log.level = :info
     end
 
     Puppet::Transaction::Report.terminus_class = :rest
     Puppet::Resource::Catalog.terminus_class = :yaml
   end
 
   def run_command
     retrieval_starttime = Time.now
 
     unless catalog = Puppet::Resource::Catalog.find(Puppet[:certname])
       raise "Could not find catalog for #{Puppet[:certname]}"
     end
 
     @report.configuration_version = catalog.version
 
     inspect_starttime = Time.now
     @report.add_times("config_retrieval", inspect_starttime - retrieval_starttime)
 
     if Puppet[:archive_files]
       dipper = Puppet::FileBucket::Dipper.new(:Server => Puppet[:archive_file_server])
     end
 
     catalog.to_ral.resources.each do |ral_resource|
       audited_attributes = ral_resource[:audit]
       next unless audited_attributes
 
-      audited_resource = ral_resource.to_resource
-
       status = Puppet::Resource::Status.new(ral_resource)
-      audited_attributes.each do |name|
-        next if audited_resource[name].nil?
-        # Skip :absent properties of :absent resources. Really, it would be nicer if the RAL returned nil for those, but it doesn't. ~JW
-        if name == :ensure or audited_resource[:ensure] != :absent or audited_resource[name] != :absent
+
+      begin
+        audited_resource = ral_resource.to_resource
+      rescue StandardError => detail
+        puts detail.backtrace if Puppet[:trace]
+        ral_resource.err "Could not inspect #{ral_resource}; skipping: #{detail}"
+        audited_attributes.each do |name|
           event = ral_resource.event(
-            :previous_value => audited_resource[name],
-            :property       => name,
-            :status         => "audit",
-            :audited        => true,
-            :message        => "inspected value is #{audited_resource[name].inspect}"
+            :property => name,
+            :status   => "failure",
+            :audited  => true,
+            :message  => "failed to inspect #{name}"
           )
           status.add_event(event)
         end
+      else
+        audited_attributes.each do |name|
+          next if audited_resource[name].nil?
+          # Skip :absent properties of :absent resources. Really, it would be nicer if the RAL returned nil for those, but it doesn't. ~JW
+          if name == :ensure or audited_resource[:ensure] != :absent or audited_resource[name] != :absent
+            event = ral_resource.event(
+              :previous_value => audited_resource[name],
+              :property       => name,
+              :status         => "audit",
+              :audited        => true,
+              :message        => "inspected value is #{audited_resource[name].inspect}"
+            )
+            status.add_event(event)
+          end
+        end
       end
-      @report.add_resource_status(status)
       if Puppet[:archive_files] and ral_resource.type == :file and audited_attributes.include?(:content)
         path = ral_resource[:path]
         if File.readable?(path)
           dipper.backup(path)
         end
       end
+      @report.add_resource_status(status)
     end
 
     finishtime = Time.now
     @report.add_times("inspect", finishtime - inspect_starttime)
     @report.finalize_report
 
     begin
       @report.save
     rescue => detail
       puts detail.backtrace if Puppet[:trace]
       Puppet.err "Could not send report: #{detail}"
     end
   end
 end
diff --git a/spec/unit/application/inspect_spec.rb b/spec/unit/application/inspect_spec.rb
index 0c7b61f59..15b0c40ad 100644
--- a/spec/unit/application/inspect_spec.rb
+++ b/spec/unit/application/inspect_spec.rb
@@ -1,206 +1,264 @@
 #!/usr/bin/env ruby
 
 require File.dirname(__FILE__) + '/../../spec_helper'
 
 require 'puppet/application/inspect'
 require 'puppet/resource/catalog'
 require 'puppet/indirector/catalog/yaml'
 require 'puppet/indirector/report/rest'
 require 'puppet/indirector/file_bucket_file/rest'
 
 describe Puppet::Application::Inspect do
   include PuppetSpec::Files
 
   before :each do
     @inspect = Puppet::Application[:inspect]
   end
 
   describe "during setup" do
     it "should print its configuration if asked" do
       Puppet[:configprint] = "all"
 
       Puppet.settings.expects(:print_configs).returns(true)
       lambda { @inspect.setup }.should raise_error(SystemExit)
     end
 
     it "should fail if reporting is turned off" do
       Puppet[:report] = false
       lambda { @inspect.setup }.should raise_error(/report=true/)
     end
   end
 
   describe "when executing" do
     before :each do
       Puppet[:report] = true
       Puppet::Util::Log.stubs(:newdestination)
       Puppet::Transaction::Report::Rest.any_instance.stubs(:save)
       @inspect.setup
     end
 
     it "should retrieve the local catalog" do
       Puppet::Resource::Catalog::Yaml.any_instance.expects(:find).with {|request| request.key == Puppet[:certname] }.returns(Puppet::Resource::Catalog.new)
 
       @inspect.run_command
     end
 
     it "should save the report to REST" do
       Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(Puppet::Resource::Catalog.new)
       Puppet::Transaction::Report::Rest.any_instance.expects(:save).with {|request| request.instance.host == Puppet[:certname] }
 
       @inspect.run_command
     end
 
     it "should audit the specified properties" do
       catalog = Puppet::Resource::Catalog.new
       file = Tempfile.new("foo")
       file.puts("file contents")
       file.close
       resource = Puppet::Resource.new(:file, file.path, :parameters => {:audit => "all"})
       catalog.add_resource(resource)
       Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(catalog)
 
       events = nil
 
       Puppet::Transaction::Report::Rest.any_instance.expects(:save).with do |request|
         events = request.instance.resource_statuses.values.first.events
       end
 
       @inspect.run_command
 
       properties = events.inject({}) do |property_values, event|
         property_values.merge(event.property => event.previous_value)
       end
       properties["ensure"].should == :file
       properties["content"].should == "{md5}#{Digest::MD5.hexdigest("file contents\n")}"
       properties.has_key?("target").should == false
     end
 
     it "should set audited to true for all events" do
       catalog = Puppet::Resource::Catalog.new
       file = Tempfile.new("foo")
       resource = Puppet::Resource.new(:file, file.path, :parameters => {:audit => "all"})
       catalog.add_resource(resource)
       Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(catalog)
 
       events = nil
 
       Puppet::Transaction::Report::Rest.any_instance.expects(:save).with do |request|
         events = request.instance.resource_statuses.values.first.events
       end
 
       @inspect.run_command
 
       events.each do |event|
         event.audited.should == true
       end
     end
 
     it "should not report irrelevent attributes if the resource is absent" do
       catalog = Puppet::Resource::Catalog.new
       file = Tempfile.new("foo")
       resource = Puppet::Resource.new(:file, file.path, :parameters => {:audit => "all"})
       file.delete
       catalog.add_resource(resource)
       Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(catalog)
 
       events = nil
 
       Puppet::Transaction::Report::Rest.any_instance.expects(:save).with do |request|
         events = request.instance.resource_statuses.values.first.events
       end
 
       @inspect.run_command
 
       properties = events.inject({}) do |property_values, event|
         property_values.merge(event.property => event.previous_value)
       end
       properties.should == {"ensure" => :absent}
     end
 
     describe "when archiving to a bucket" do
       before :each do
         Puppet[:archive_files] = true
         Puppet[:archive_file_server] = "filebucketserver"
         @catalog = Puppet::Resource::Catalog.new
         Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(@catalog)
       end
 
       describe "when auditing files" do
         before :each do
           @file = tmpfile("foo")
           @resource = Puppet::Resource.new(:file, @file, :parameters => {:audit => "content"})
           @catalog.add_resource(@resource)
         end
 
         it "should send an existing file to the file bucket" do
           File.open(@file, 'w') { |f| f.write('stuff') }
           Puppet::FileBucketFile::Rest.any_instance.expects(:head).with do |request|
             request.server == Puppet[:archive_file_server]
           end.returns(false)
           Puppet::FileBucketFile::Rest.any_instance.expects(:save).with do |request|
             request.server == Puppet[:archive_file_server] and request.instance.contents == 'stuff'
           end
           @inspect.run_command
         end
 
         it "should not send unreadable files" do
-          pending "see bug #5882"
           File.open(@file, 'w') { |f| f.write('stuff') }
           File.chmod(0, @file)
           Puppet::FileBucketFile::Rest.any_instance.expects(:head).never
           Puppet::FileBucketFile::Rest.any_instance.expects(:save).never
           @inspect.run_command
         end
 
         it "should not try to send non-existent files" do
           Puppet::FileBucketFile::Rest.any_instance.expects(:head).never
           Puppet::FileBucketFile::Rest.any_instance.expects(:save).never
           @inspect.run_command
         end
 
         it "should not try to send files whose content we are not auditing" do
           @resource[:audit] = "group"
           Puppet::FileBucketFile::Rest.any_instance.expects(:head).never
           Puppet::FileBucketFile::Rest.any_instance.expects(:save).never
           @inspect.run_command
         end
       end
 
       describe "when auditing non-files" do
         before :each do
           Puppet::Type.newtype(:stub_type) do
             newparam(:name) do
               desc "The name var"
               isnamevar
             end
 
             newproperty(:content) do
               desc "content"
               def retrieve
                 :whatever
               end
             end
           end
 
           @resource = Puppet::Resource.new(:stub_type, 'foo', :parameters => {:audit => "all"})
           @catalog.add_resource(@resource)
         end
 
         after :each do
           Puppet::Type.rmtype(:stub_type)
         end
 
         it "should not try to send non-files" do
           Puppet::FileBucketFile::Rest.any_instance.expects(:head).never
           Puppet::FileBucketFile::Rest.any_instance.expects(:save).never
           @inspect.run_command
         end
       end
     end
+
+    describe "when there are failures" do
+      before :each do
+        Puppet::Type.newtype(:stub_type) do
+          newparam(:name) do
+            desc "The name var"
+            isnamevar
+          end
+
+          newproperty(:content) do
+            desc "content"
+            def retrieve
+              raise "failed"
+            end
+          end
+        end
+
+        @catalog = Puppet::Resource::Catalog.new
+        Puppet::Resource::Catalog::Yaml.any_instance.stubs(:find).returns(@catalog)
+
+        Puppet::Transaction::Report::Rest.any_instance.expects(:save).with do |request|
+          @report = request.instance
+        end
+      end
+
+      after :each do
+        Puppet::Type.rmtype(:stub_type)
+      end
+
+      it "should mark the report failed and create failed events for each property" do
+        @resource = Puppet::Resource.new(:stub_type, 'foo', :parameters => {:audit => "all"})
+        @catalog.add_resource(@resource)
+
+        @inspect.run_command
+
+        @report.status.should == "failed"
+        #@report.logs.select{|log| log.message =~ /Could not inspect/}.count.should == 1
+        @report.resource_statuses.count.should == 1
+        @report.resource_statuses['Stub_type[foo]'].events.count.should == 1
+
+        event = @report.resource_statuses['Stub_type[foo]'].events.first
+        event.property.should == "content"
+        event.status.should == "failure"
+        event.audited.should == true
+        event.instance_variables.should_not include("@previous_value")
+      end
+
+      it "should continue to the next resource" do
+        @resource = Puppet::Resource.new(:stub_type, 'foo', :parameters => {:audit => "all"})
+        @other_resource = Puppet::Resource.new(:stub_type, 'bar', :parameters => {:audit => "all"})
+        @catalog.add_resource(@resource)
+        @catalog.add_resource(@other_resource)
+
+        @inspect.run_command
+
+        @report.resource_statuses.count.should == 2
+        @report.resource_statuses.keys.should =~ ['Stub_type[foo]', 'Stub_type[bar]']
+      end
+    end
   end
 
   after :all do
     Puppet::Resource::Catalog.indirection.reset_terminus_class
     Puppet::Transaction::Report.indirection.terminus_class = :processor
   end
 end