diff --git a/include/boost/iterator/transform_iterator.hpp b/include/boost/iterator/transform_iterator.hpp
index 1a229e2..86565b8 100644
--- a/include/boost/iterator/transform_iterator.hpp
+++ b/include/boost/iterator/transform_iterator.hpp
@@ -42,13 +42,11 @@ namespace boost
     struct transform_iterator_base
     {
      private:
-        typedef typename std::iterator_traits<Iterator>::reference Arg1;
-
         // By default, dereferencing the iterator yields the same as
         // the function.
         typedef typename ia_dflt_help<
             Reference
-          , result_of<UnaryFunc(typename std::iterator_traits<Iterator>::value_type)>
+          , result_of<UnaryFunc(typename std::iterator_traits<Iterator>::reference)>
         >::type reference;
 
         // To get the default for Value: remove any reference on the
diff --git a/test/transform_iterator_test.cpp b/test/transform_iterator_test.cpp
index e72fc79..255eab4 100644
--- a/test/transform_iterator_test.cpp
+++ b/test/transform_iterator_test.cpp
@@ -106,11 +106,12 @@ struct polymorphic_mult_functor
 {
     //Implement result_of protocol
     template <class FArgs> struct result;
-    template <class F, class T> struct result<F(T)> {typedef T type;};
+    template <class F, class T> struct result<F(T       )> {typedef T type;};
+    template <class F, class T> struct result<F(T&      )> {typedef T type;};
+    template <class F, class T> struct result<F(const T&)> {typedef T type;};
 
     template <class T> 
-    typename result<polymorphic_mult_functor(T)>::type
-    operator()(const T& _arg) const {return _arg*2;}
+    T operator()(const T& _arg) const {return _arg*2;}
 };
 
 int