Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r69c442eb02e0be013812860d6d573f9c6d48c950 -r2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r69c442eb02e0be013812860d6d573f9c6d48c950 -r2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -r69c442eb02e0be013812860d6d573f9c6d48c950 -r2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision 69c442eb02e0be013812860d6d573f9c6d48c950)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision 2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f)
@@ -341,11 +341,18 @@
 					}
 				}
 			} else {
-				if(ca instanceof CanvasParallelActivity || ca instanceof CanvasOptionalActivity) {
+				if(ca instanceof CanvasOptionalActivity || ca instanceof CanvasParallelActivity) {
 					ca._x = 0;
 					ca._y = 0;
 				} else {
-					activitySnapBack(ca);
+					var sequenceActivity:Activity = _canvasModel.ddm.getActivityByUIID(ca.activity.parentUIID);
+			
+					if(sequenceActivity != null)
+						if(!_canvasModel.moveOptionalSequenceCA(ca, sequenceActivity))
+							activitySnapBack(ca);
+					else
+						activitySnapBack(ca);
+					
 				}
 			}
 			
@@ -601,6 +608,12 @@
 					r = _canvasModel.ddm.removeActivity(ca.activity.activityUIID);
 				}	
 				
+				var seqActivity:Activity = Activity(_canvasModel.ddm.getActivityByUIID(r.parentUIID));
+				if(seqActivity.isOptionalSequenceActivity(_canvasModel.ddm.getActivityByUIID(seqActivity.parentUIID))) {
+					_canvasModel.removeOptionalSequenceCA(ca, r.parentUIID);
+					Debugger.log("is opt: " + ca.activity.activityUIID, Debugger.CRITICAL, "isActivityOnBin", "CanvasController");
+				}
+				
 				if(ca == _canvasModel.activeView.openActivity) {
 					// close current complex activity +  refresh parent
 					_canvasModel.activeView.close();
@@ -625,6 +638,7 @@
 						_canvasModel.activitiesDisplayed.get(ca.activity)
 					}
 				} else {
+					
 					// refresh current complex activity
 					 _canvasModel.activeView.updateActivity();
 				}
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as
===================================================================
diff -u -rcda1896b7cc29065750f10d9a3548c3cc9db3a9d -r2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision cda1896b7cc29065750f10d9a3548c3cc9db3a9d)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision 2a754b5c9c11bfe83d3c57899310e69bdc3b9c9f)
@@ -343,7 +343,7 @@
 		ca.activity.orderID = null;
 		ca.activity.parentActivityID = (activeView instanceof CanvasBranchView) ? activeView.defaultSequenceActivity.activityID : null;
 		
-		removeActivity(parentID);
+		if(!(activeView instanceof CanvasComplexView)) removeActivity(parentID);
 		
 		haltRefresh(false);
 		setDirty();
@@ -466,7 +466,10 @@
 			createSequenceTransition(fromActivity, toActivity);
 		}
 
-		removeActivity(sequence.parentUIID);
+		if(activeView instanceof CanvasComplexView && activeView.openActivity.activity.activityUIID == sequence.parentUIID)
+			activeView.updateActivity();
+		else removeActivity(sequence.parentUIID);
+		
 		haltRefresh(false);
 
 		setDirty();