Index: lams_central/src/flash/org/lamsfoundation/lams/authoring/Application.as
===================================================================
diff -u -r09d397307cdeb56f597caf45fde99302c4b541bd -r9222896e435ef8f2a9457cf97d85b94773d9b31b
--- lams_central/src/flash/org/lamsfoundation/lams/authoring/Application.as	(.../Application.as)	(revision 09d397307cdeb56f597caf45fde99302c4b541bd)
+++ lams_central/src/flash/org/lamsfoundation/lams/authoring/Application.as	(.../Application.as)	(revision 9222896e435ef8f2a9457cf97d85b94773d9b31b)
@@ -498,15 +498,16 @@
 	private function onKeyUp(){
 		Debugger.log('Key released.',Debugger.GEN,'onKeyUp','Application');
 		if(!Key.isDown(Key.CONTROL)) {
-			if(_controlKeyPressed == ApplicationParent.TRANSITION)
+			if(_controlKeyPressed == ApplicationParent.TRANSITION) {
 				Debugger.log('Control Key released.',Debugger.GEN,'onKeyUp','Application');
 				
 				var c:String = Cursor.getCurrentCursor();
 				
 				if(c == ApplicationParent.C_TRANSITION){	
 					_controlKeyPressed = "";
-					_canvas.stopTransitionTool()
+					_canvas.stopTransitionTool();
 				}
+			}
 		}
 		
 	}
Index: lams_central/src/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as
===================================================================
diff -u -r09d397307cdeb56f597caf45fde99302c4b541bd -r9222896e435ef8f2a9457cf97d85b94773d9b31b
--- lams_central/src/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision 09d397307cdeb56f597caf45fde99302c4b541bd)
+++ lams_central/src/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision 9222896e435ef8f2a9457cf97d85b94773d9b31b)
@@ -456,32 +456,40 @@
 		setDirty();
 		
 	}
-	
-	/**
-	 * Removes the activity from the Canvas Model
-	 * @usage   
-	 * @param   activityUIID 
-	 * @return  
-	 */
 	 
-	 /**
+	/**
 	*Called by the controller when a complex activity is dropped on bin.
 	*/
 	public function removeComplexActivity(ca){
+		Debugger.log('Removing Complex Activity: ' + ca.activity.activityUIID,Debugger.GEN,'removeComplexActivity','CanvasModel');
 		
-		Debugger.log('Removed Child '+ca.activity.activityUIID+ 'from : '+ca.activity.parentUIID,Debugger.GEN,'removeOptionalCA','CanvasModel');
-		trace("Number of Children are: "+ca.actChildren.length)
-		for (var k=0; k<ca.actChildren.length; k++){
-			trace("ca.actChildren[k].activityUIID - Child has UIID : "+ca.actChildren[k].activityUIID)
-			ca.actChildren[k].parentUIID = null;
-						
-			removeActivity(ca.actChildren[k].activityUIID);
-			_cv.ddm.removeActivity(ca.actChildren[k].activityUIID);
+		// recursively remove all children
+		removeComplexActivityChildren(ca.actChildren);
+		removeActivityOnBin(ca.activity.activityUIID);
 		
+		setDirty();
+	}
+	
+	public function removeComplexActivityChildren(children){
+		trace("Number of children to be removed are: " + children.length)
+		
+		for (var k=0; k<children.length; k++){
+			trace("Child has UIID : " + children[k].activityUIID);
+			Debugger.log('Removing Child ' + children[k].activity.activityUIID+ 'from : '+ children[k].activity.parentUIID,Debugger.GEN,'removeComplexActivityChildren','CanvasModel');
+		
+			children[k].parentUIID = null;
 			
+			if(children[k].activityTypeID == Activity.OPTIONAL_ACTIVITY_TYPE || children[k].activityTypeID == Activity.PARALLEL_ACTIVITY_TYPE) {
+				Debugger.log('Child is Complex Activity. Removing children with length: ' + children[k].children.length,Debugger.GEN,'removeComplexActivityChildren','CanvasModel');
+				this.removeComplexActivityChildren(_cv.ddm.getComplexActivityChildren(children[k].activityUIID));
+			} else {
+				removeActivity(children[k].activityUIID);
+			}
+			
+			_cv.ddm.removeActivity(children[k].activityUIID);
+			
+			
 		}
-		removeActivityOnBin(ca.activity.activityUIID);
-		setDirty();
 	}
 	
 	
Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r84a6ede47d5044cfcd7c701d378582dc7febda70 -r9222896e435ef8f2a9457cf97d85b94773d9b31b
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r84a6ede47d5044cfcd7c701d378582dc7febda70 -r9222896e435ef8f2a9457cf97d85b94773d9b31b
Binary files differ