  The rare decay $\bar B\to X_s\gamma$ is an important probe of physics beyond
the standard model. The largest uncertainty on the total rate and the CP
asymmetry arises from resolved photon contributions. These appear first at
order $1/m_b$ and are related to operators other than $Q_{7\gamma}$ in the
effective weak Hamiltonian. One of the three leading contributions,
$Q^q_1-Q_{7\gamma}$, is described by a non-local function whose moments are
related to HQET parameters. We use recent progress in our knowledge of these
parameters to reevaluate the resolved photon contribution to $\bar B\to
X_s\gamma$ total rate and CP asymmetry.
