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That code is filled with all sorts of horrors (Sql injection, passwords in plain-text in DBs, passwords sent in query-string, all logic in web-layer), but redirecting in a using block is ok, the disposers will always be called (outside of fatal exceptions like StackOverflows)

using is syntactic sugar for a try/finally block with a Dispose call in the finally. So yes, the dispose will still happen.

Good point. I'm about 95% sure the disposal would still happen, but I agree it's bad form. This code is terrible in so many ways I didn't even consider that.