Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/PropertyInspector.mxml
===================================================================
diff -u -r3444f7cd21be73f0284515ef8f821ad9320b54a0 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/PropertyInspector.mxml	(.../PropertyInspector.mxml)	(revision 3444f7cd21be73f0284515ef8f821ad9320b54a0)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/PropertyInspector.mxml	(.../PropertyInspector.mxml)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -120,15 +120,16 @@
 						text="{selectedActivityComponent.title}" />
 				</mx:GridItem>
 			</mx:GridRow>
-			<!--<mx:GridRow id="groupingGridRow" visible="{AuthorUtil.activitySupportsGrouping(selectedActivityComponent.activityTypeID)}" 
-				includeInLayout="{AuthorUtil.activitySupportsGrouping(selectedActivityComponent.activityTypeID)}">
+			<mx:GridRow id="groupingGridRow" 
+				visible="{AuthorController.activitySupportsGrouping(selectedActivityComponent.activityTypeID, selectedActivityComponent.rootActivity)}" 
+				includeInLayout="{groupingGridRow.visible}">
 				<mx:GridItem>
 					<mx:Label text="{Application.application.dictionary.getLabel('grouping_act_title')}" />
 				</mx:GridItem>
 				<mx:GridItem>
-					<mx:ComboBox id="groupingCombo" change="groupChange(event)" labelField="title" dataProvider="{currentAvailableGroups}" width="{MIN_INPUT_WIDTH}" dropdownWidth="250"  />
+					<!--<mx:ComboBox id="groupingCombo" dropdownWidth="250" labelField="title" dataProvider="{currentAvailableGroups}" width="{MIN_INPUT_WIDTH}"   />-->
 				</mx:GridItem>
-			</mx:GridRow>-->
+			</mx:GridRow>
 		</mx:Grid>
 	</mx:VBox>
 	<mx:Canvas id="opacityLayer" height="100%" width="100%" backgroundColor="white" backgroundAlpha="0.6" />
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ActivityComponent.mxml
===================================================================
diff -u -r6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ActivityComponent.mxml	(.../ActivityComponent.mxml)	(revision 6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ActivityComponent.mxml	(.../ActivityComponent.mxml)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -99,8 +99,9 @@
 			    		}
 		    			break;
 		    		case Constants.CURSOR_STATE_NORMAL: {
-		    			AuthorController.instance.selectActivityComponent(this);
 		    			startDragging(event);
+		    			AuthorController.instance.selectActivityComponent(this);
+		    			event.stopPropagation();
 		    		}
 		    	}
 		    }
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/CombinedActivityComponent.mxml
===================================================================
diff -u -r6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/CombinedActivityComponent.mxml	(.../CombinedActivityComponent.mxml)	(revision 6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/CombinedActivityComponent.mxml	(.../CombinedActivityComponent.mxml)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -41,8 +41,9 @@
 		backgroundColor="#C2D5FE" paddingTop="3" paddingBottom="3" paddingLeft="5" paddingRight="5"
 		verticalGap="0" dropShadowEnabled="{this != AuthorController.instance.selectedActivityComponent}"
 		>
-		<ToolActivityComponent activity="{activity.toolActivity1}" isTitleShown="false" />
-		<ToolActivityComponent activity="{activity.toolActivity2}" isTitleShown="false" />
-		<mx:Label id="lblTitle" text="{activity.title}"/>
+		<ToolActivityComponent activity="{activity.toolActivity1}" isTitleShown="false" isDragable="false"/>
+		<mx:Spacer height="2" />
+		<ToolActivityComponent activity="{activity.toolActivity2}" isTitleShown="false" isDragable="false"/>
+		<mx:Text id="txtTitle" text="{activity.title}" textAlign="center" maxWidth="70"/>
 	</mx:VBox>
 </ActivityComponent>
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ToolActivityComponent.mxml
===================================================================
diff -u -r6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ToolActivityComponent.mxml	(.../ToolActivityComponent.mxml)	(revision 6049b2dc7dad8cf49c0e9f8a92ffe6bb517139c6)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/components/activity/ToolActivityComponent.mxml	(.../ToolActivityComponent.mxml)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -40,13 +40,14 @@
 		]]>
 	</mx:Script>
 	<mx:VBox id="vbox" verticalAlign="middle" horizontalAlign="center" borderStyle="solid"
-		shadowDirection="right" cornerRadius="4" minWidth="60" minHeight="50"
+		shadowDirection="right" cornerRadius="4" minWidth="70" minHeight="50"
 		backgroundColor="{activity.tool.bgColour}" paddingTop="3" paddingBottom="3" paddingLeft="5" paddingRight="5"
 		verticalGap="0" toolTip="{(isTitleShown)? undefined : activity.title}" 
 		dropShadowEnabled="{!(this.state == Constants.ACTIVITY_STATE_MOUSE_OVER || this.state == Constants.ACTIVITY_STATE_SELECTED)}"
 		>
 		<mx:Image id="iconImage" width="30" height="30" source="{activity.tool.libraryActivityUIImage}" />
-		<mx:Label id="lblTitle" text="{activity.title}" visible="{isTitleShown}" includeInLayout="{isTitleShown}"/>
+		<mx:Text id="txtTitle" text="{activity.title}" textAlign="center" maxWidth="80" 
+			visible="{this.isTitleShown}" includeInLayout="{this.isTitleShown}"/>
 	</mx:VBox>
 	
 	
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/controller/AuthorController.as
===================================================================
diff -u -r2aa362fa3ab4a8226745005fce896c82f7a03309 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/controller/AuthorController.as	(.../AuthorController.as)	(revision 2aa362fa3ab4a8226745005fce896c82f7a03309)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/controller/AuthorController.as	(.../AuthorController.as)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -13,8 +13,11 @@
 	import org.lamsfoundation.lams.author.components.LearningLibraryEntryComponent;
 	import org.lamsfoundation.lams.author.components.activity.*;
 	import org.lamsfoundation.lams.author.components.toolbar.SystemToolComponent;
+	import org.lamsfoundation.lams.author.model.activity.Activity;
 	import org.lamsfoundation.lams.author.model.activity.GroupActivity;
+	import org.lamsfoundation.lams.author.model.activity.ToolActivity;
 	import org.lamsfoundation.lams.author.model.learninglibrary.LearningLibraryEntry;
+	import org.lamsfoundation.lams.author.util.AuthorUtil;
 	import org.lamsfoundation.lams.author.util.Constants;
 	import org.lamsfoundation.lams.common.dictionary.XMLDictionaryRegistry;
 	
@@ -32,7 +35,9 @@
 	 	
 	 	[Bindable] public var selectedActivityComponent:ActivityComponent;
 	 	
+	 	[Embed("assets/icons/transition.png")] public var transitionCursor:Class;
 	 	
+	 	
 	 	// Reference to all activity components via UIID (key)
 	 	public var activityComponents:Dictionary = new Dictionary();
 	 	
@@ -253,8 +258,7 @@
 			} */
 		}
 		
-		[Embed("assets/icons/transition.png")]
-        public var transitionCursor:Class;
+		
 
 		public function changeCursorState(state:int):void{
 			cursorState = state;
@@ -267,5 +271,18 @@
 					break;
 			}
 		}
+		
+		public static function activitySupportsGrouping(activityTypeID:int, activity:Activity):Boolean {
+	   		if (AuthorUtil.activitySupportsGrouping(activityTypeID)) {
+	   			if (activity is ToolActivity) {
+	   				return (activity as ToolActivity).groupingEnabled;
+	   			} else {
+	   				return true;
+	   			}
+	   		} else {
+	   			return false;
+	   		}
+	   		
+	   	}
 	}
 }
\ No newline at end of file
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ActivityFactory.as
===================================================================
diff -u -r3444f7cd21be73f0284515ef8f821ad9320b54a0 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ActivityFactory.as	(.../ActivityFactory.as)	(revision 3444f7cd21be73f0284515ef8f821ad9320b54a0)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ActivityFactory.as	(.../ActivityFactory.as)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -78,12 +78,14 @@
     		var toolActivity1:ToolActivity = new ToolActivity(tool1UIID);
 			toolActivity1.tool = learningLibraryEntry.toolTemplates[1];
     		toolActivity1.title = toolActivity1.tool.toolName;
+    		toolActivity1.groupingEnabled = false;
     		combinedActivity.toolActivity1 = toolActivity1;
     		
     		// Create toolactivity 2
     		var toolActivity2:ToolActivity = new ToolActivity(tool1UIID);
 			toolActivity2.tool = learningLibraryEntry.toolTemplates[2];
     		toolActivity2.title = toolActivity2.tool.toolName;
+    		toolActivity2.groupingEnabled = false;
     		combinedActivity.toolActivity2 = toolActivity2;
     		
     		return combinedActivity;
Index: lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ToolActivity.as
===================================================================
diff -u -r3444f7cd21be73f0284515ef8f821ad9320b54a0 -r2453e0d0a14dab2534256200e96c507cb47aab00
--- lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ToolActivity.as	(.../ToolActivity.as)	(revision 3444f7cd21be73f0284515ef8f821ad9320b54a0)
+++ lams_flex/LamsAuthor/src/org/lamsfoundation/lams/author/model/activity/ToolActivity.as	(.../ToolActivity.as)	(revision 2453e0d0a14dab2534256200e96c507cb47aab00)
@@ -17,6 +17,8 @@
 		public var useDefaultToolOutput:Boolean;
 		
 		[Bindable] public var tool:Tool;
+		
+		public var groupingEnabled:Boolean = true; // Non persistent, used for property inspector
 
 		function ToolActivity(activityUIID:Number){
 			super(activityUIID);