--- a/plugins/muc/mod_muc.lua	Fri Dec 13 12:53:14 2013 +0000
+++ b/plugins/muc/mod_muc.lua	Mon Dec 16 02:04:43 2013 +0000
@@ -164,7 +164,7 @@
 			return true;
 		end
 		if not(restrict_room_creation) or
-		  is_admin(stanza.attr.from)) or
+		  is_admin(stanza.attr.from) or
 		  (restrict_room_creation == "local" and select(2, jid_split(stanza.attr.from)) == module.host:gsub("^[^%.]+%.", "")) then
 			room = create_room(bare);
 		end

--- a/util/jid.lua	Fri Dec 13 12:53:14 2013 +0000
+++ b/util/jid.lua	Mon Dec 16 02:04:43 2013 +0000
@@ -8,7 +8,7 @@
 
 
 
-local match = string.match;
+local match, sub = string.match, string.sub;
 local nodeprep = require "util.encodings".stringprep.nodeprep;
 local nameprep = require "util.encodings".stringprep.nameprep;
 local resourceprep = require "util.encodings".stringprep.resourceprep;
@@ -47,6 +47,9 @@
 local function _prepped_split(jid)
 	local node, host, resource = _split(jid);
 	if host then
+		if sub(host, -1, -1) == "." then -- Strip empty root label
+			host = sub(host, 1, -2);
+		end
 		host = nameprep(host);
 		if not host then return; end
 		if node then