Spot the defect!

From this zuneboards post, the Zune New Year's bug. Can you spot what is wrong? :P

year = ORIGINYEAR; /* = 1980 */

while (days > 365)
{
    if (IsLeapYear(year))
    {
        if (days > 366)
        {
            days -= 366;
            year += 1;
        }
    }
    else
    {
        days -= 365;
        year += 1;
    }
}