Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -rfb923a2bc104eca9d2ce0e6b768eda6dafe5114a -r19af16b236aaa6a6a3bda616622c33b9eba385e6
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -rfb923a2bc104eca9d2ce0e6b768eda6dafe5114a -r19af16b236aaa6a6a3bda616622c33b9eba385e6
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -rdaa2d39968bf48054c123266e356bffe0aaf0632 -r19af16b236aaa6a6a3bda616622c33b9eba385e6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision daa2d39968bf48054c123266e356bffe0aaf0632)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision 19af16b236aaa6a6a3bda616622c33b9eba385e6)
@@ -69,6 +69,8 @@
 		_tempSelectedItem = _canvasModel.selectedItem;
 		_canvasModel.selectedItem = null;
 		
+		app.toolbar.view.getController().hideOptionPanels();
+		
 		Debugger.log('activityClick CanvasActivity:'+ca.activity.activityUIID + ' orderID: ' + ca.activity.orderID,Debugger.GEN,'activityClick','CanvasController');
 	    Debugger.log('Check if transition tool active :'+_canvasModel.isTransitionToolActive(),Debugger.GEN,'activityClick','CanvasController');
 	    
@@ -836,6 +838,8 @@
 		Debugger.log(_canvasModel.activeView + " " + _canvasModel.activeView instanceof CanvasBranchView,Debugger.GEN,'canvasRelease','CanvasController');
 		Debugger.log('_canvasModel.activeTool:'+_canvasModel.activeTool,Debugger.GEN,'canvasRelease','CanvasController');
 		
+		app.toolbar.view.getController().hideOptionPanels();
+		
 		_canvasModel.selectedItem = null;
 		
 		var parent:SequenceActivity = null;
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarController.as
===================================================================
diff -u -r86aae1b21277f5fc950a0303361b63fd7adde39c -r19af16b236aaa6a6a3bda616622c33b9eba385e6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarController.as	(.../ToolbarController.as)	(revision 86aae1b21277f5fc950a0303361b63fd7adde39c)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarController.as	(.../ToolbarController.as)	(revision 19af16b236aaa6a6a3bda616622c33b9eba385e6)
@@ -64,6 +64,9 @@
 		Debugger.log('click evt.target.label:'+evt.target.label,Debugger.GEN,'click','ToolbarController');
 		var tgt:String = new String(evt.target);
 		
+		var optionPanelVisible:Boolean = _toolbarModel.getToolbar().view.isOptionalPanelVisible();
+		var flowPanelVisible:Boolean = _toolbarModel.getToolbar().view.isFlowPanelVisible();
+		
 		hideOptionPanels();
 		
 		if(tgt.indexOf("new") != -1){
@@ -87,7 +90,7 @@
 		}else if(tgt.indexOf("optional_seq") != -1){
 			_app.getCanvas().toggleOptionalSequenceActivity();
 		}else if(tgt.indexOf("optional") != -1){
-			if (!isOptActive){
+			if (!isOptActive && !optionPanelVisible){
 				var c:String = Cursor.getCurrentCursor();
 				if(c==Application.C_GATE){
 					_app.getCanvas().stopGateTool();
@@ -97,7 +100,7 @@
 				_toolbarModel.getToolbar().view.showHideOptAssets(true);
 			}
 		}else if(tgt.indexOf("flow") != -1){
-			if (!isflowActive){
+			if (!isflowActive && !flowPanelVisible){
 				var c:String = Cursor.getCurrentCursor();
 				
 				if(c==Application.C_GATE){
@@ -107,7 +110,6 @@
 				isflowActive = true;
 				_toolbarModel.getToolbar().view.showHideFlowAssets(true);
 			}
-						
 		}else if(tgt.indexOf("gate") != -1){
 			_app.getCanvas().toggleGateTool();
 						
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarView.as
===================================================================
diff -u -rfd2eb12a0f90745f54413766d18f204b33f88f1e -r19af16b236aaa6a6a3bda616622c33b9eba385e6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarView.as	(.../ToolbarView.as)	(revision fd2eb12a0f90745f54413766d18f204b33f88f1e)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tb/ToolbarView.as	(.../ToolbarView.as)	(revision 19af16b236aaa6a6a3bda616622c33b9eba385e6)
@@ -468,6 +468,14 @@
 
     }
 	
+	public function isOptionalPanelVisible():Boolean {
+		return optional_bkg_pnl.visible;
+	}
+	
+	public function isFlowPanelVisible():Boolean {
+		return flow_bkg_pnl.visible;
+	}
+	
 	/**
 	 * Overrides method in abstract view to ensure cortect type of controller is returned
 	 * @usage   
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as
===================================================================
diff -u -radc0dfff0e9b6456008da9b252defac5714ed4d1 -r19af16b236aaa6a6a3bda616622c33b9eba385e6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision adc0dfff0e9b6456008da9b252defac5714ed4d1)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision 19af16b236aaa6a6a3bda616622c33b9eba385e6)
@@ -34,6 +34,7 @@
 */
 class ToolkitController extends AbstractController {
 	private var _toolkitModel:ToolkitModel;
+	private var app:Application;;
 	/**
 	* Constructor
 	*
@@ -54,6 +55,9 @@
 		//_global.breakpoint();
 		_toolkitModel = ToolkitModel(model);
 		_toolkitModel.setSelectedTemplateActivity(templateActivity);
+		
+		app = Application.getInstance();
+		app.toolbar.view.getController().hideOptionPanels();
 	}
 	
 	/**