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If the "Check linked documents recursively" checkbox is unchecked, but a non-zero number is entered in the "recursion depth" text field, LinkChecker checks recursively.
Discussed (to death :)) in yesterday's QA dev team meeting, but fix deferred for now because we didn't come up with a good enough fix. http://lists.w3.org/Archives/Public/public-qa-dev/2005Apr/0011.html