Index: src/main/org/testng/internal/MethodInheritance.java
===================================================================
--- src/main/org/testng/internal/MethodInheritance.java	(revision 502)
+++ src/main/org/testng/internal/MethodInheritance.java	(working copy)
@@ -102,27 +102,19 @@
         // Sort them
         sortMethodsByInheritance(l, baseClassToChild);
         
-        // Set methodDependedUpon accordingly
-        if (baseClassToChild) {
-          for (int i = 1; i < l.size(); i++) {
-            ITestNGMethod m1 = l.get(i - 1);
-            ITestNGMethod m2 = l.get(i);
+        for (int i = 0; i < l.size(); i++) {
+          ITestNGMethod m1 = l.get(i);
+          // Look for any method further down that is a subclass of this one.
+          // This handles the case when there are multiple BeforeClass/AfterClass
+          // methods in the same class.
+          for (int j = i + 1; j < l.size(); j++) {
+            ITestNGMethod m2 = l.get(j);
             if (! equalsEffectiveClass(m1, m2)) {
               Utils.log("MethodInheritance", 4, m2 + " DEPENDS ON " + m1);
               m2.addMethodDependedUpon(MethodHelper.calculateMethodCanonicalName(m1));
             }
           }
         }
-        else {
-          for (int i = 0; i < l.size() - 1; i++) {
-            ITestNGMethod m1 = l.get(i);
-            ITestNGMethod m2 = l.get(i + 1);
-            if (! equalsEffectiveClass(m1, m2)) {
-              m2.addMethodDependedUpon(MethodHelper.calculateMethodCanonicalName(m1));
-              Utils.log("MethodInheritance", 4, m2 + " DEPENDS ON " + m1);
-            }
-          }          
-        }
       }
     }
   }
Index: src/main/org/testng/TestRunner.java
===================================================================
--- src/main/org/testng/TestRunner.java	(revision 502)
+++ src/main/org/testng/TestRunner.java	(working copy)
@@ -536,9 +536,13 @@
     List<ITestNGMethod> parallelList= new ArrayList<ITestNGMethod>();
 
     computeTestLists(sequentialList, parallelList);
+
+    int sequentialSize = 0;
+    for (List<ITestNGMethod> methodList: sequentialList) {
+      sequentialSize += methodList.size();
+    }
+    log(3, "Found " + (sequentialSize + parallelList.size()) + " applicable methods");
     
-    log(3, "Found " + (sequentialList.size() + parallelList.size()) + " applicable methods");
-    
     //
     // Create the workers
     //
@@ -753,7 +757,9 @@
           findAnnotation(cls, org.testng.internal.annotations.ITest.class);
       if (test != null) {
         if (test.getSequential()) {
-          String className = cls.getName();
+          // This must not be cls.getName() because that will sort methods in a super class together
+          // instead of with the instance class itself (i.e. the subclass).
+          String className = tm.getTestClass().getRealClass().getName();
           List<ITestNGMethod> list = sequentialAttributeList.get(className);
           if (list == null) {
             list = new ArrayList<ITestNGMethod>();