Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r4ff6091246a044e1ca1032611f344a63ef72aef0 -radc0dfff0e9b6456008da9b252defac5714ed4d1
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r4ff6091246a044e1ca1032611f344a63ef72aef0 -radc0dfff0e9b6456008da9b252defac5714ed4d1
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as
===================================================================
diff -u -rde2fe8e6ee861290b3ddfe948152d53cc9ea2446 -radc0dfff0e9b6456008da9b252defac5714ed4d1
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as	(.../Canvas.as)	(revision de2fe8e6ee861290b3ddfe948152d53cc9ea2446)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as	(.../Canvas.as)	(revision adc0dfff0e9b6456008da9b252defac5714ed4d1)
@@ -391,13 +391,17 @@
 				if(actToAdd.orderID > 1) canvasModel.createSequenceTransition(sequence.lastActivity, actToAdd);
 				else ComplexActivity(sequenceAct).firstActivityUIID = actToAdd.activityUIID;							
 				
-				canvasModel.removeActivity(sequenceAct.parentUIID);
+				if(!(canvasModel.activeView instanceof CanvasComplexView)) canvasModel.removeActivity(sequenceAct.parentUIID);
 			}
 			
 			actToAdd.parentUIID = taParent;
 			
-			canvasModel.removeActivity(taParent);
-			canvasModel.removeActivity(actToAdd.activityUIID);
+			if(!(canvasModel.activeView instanceof CanvasComplexView)) {
+				canvasModel.removeActivity(taParent);
+				canvasModel.removeActivity(actToAdd.activityUIID);
+			} else {
+				canvasModel.activeView.updateActivity();
+			}
 			
 			canvasModel.setDirty();
 		}
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasComplexView.as
===================================================================
diff -u -r69c442eb02e0be013812860d6d573f9c6d48c950 -radc0dfff0e9b6456008da9b252defac5714ed4d1
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasComplexView.as	(.../CanvasComplexView.as)	(revision 69c442eb02e0be013812860d6d573f9c6d48c950)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasComplexView.as	(.../CanvasComplexView.as)	(revision adc0dfff0e9b6456008da9b252defac5714ed4d1)
@@ -184,8 +184,10 @@
 	}
 	
 	public function showActivity():Void {
-		if(drawActivity(_complexActivity.activity, model))
+		if(drawActivity(_complexActivity.activity, model)) {
+			model.selectedItem = _tempActivity;
 			setSize(model);
+		}
 		
 		this._visible = true;
 	}
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/PropertyInspectorControls.as
===================================================================
diff -u -r031262744a76013a5fc13b63c4b42acb28db04fc -radc0dfff0e9b6456008da9b252defac5714ed4d1
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/PropertyInspectorControls.as	(.../PropertyInspectorControls.as)	(revision 031262744a76013a5fc13b63c4b42acb28db04fc)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/PropertyInspectorControls.as	(.../PropertyInspectorControls.as)	(revision adc0dfff0e9b6456008da9b252defac5714ed4d1)
@@ -1278,7 +1278,7 @@
 		
 		if (_canvasModel.selectedItem.activity.activityTypeID == Activity.PARALLEL_ACTIVITY_TYPE)
 			_canvasModel.selectedItem.init();
-		else if (_canvasModel.selectedItem.activity.activityTypeID == Activity.OPTIONAL_ACTIVITY_TYPE)
+		else if (_canvasModel.selectedItem.activity.activityTypeID == Activity.OPTIONAL_ACTIVITY_TYPE || _canvasModel.selectedItem.activity.activityTypeID == Activity.OPTIONS_WITH_SEQUENCES_TYPE)
 			_canvasModel.selectedItem.updateChildren();
 		else if(_canvasModel.selectedItem instanceof BranchConnector) {
 			if(_canvasModel.selectedItem.branch.isEnd)
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as
===================================================================
diff -u -reea08320db5cf5152274aa60d49dc74004ca5014 -radc0dfff0e9b6456008da9b252defac5714ed4d1
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision eea08320db5cf5152274aa60d49dc74004ca5014)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision adc0dfff0e9b6456008da9b252defac5714ed4d1)
@@ -64,33 +64,43 @@
 		var cv:Canvas = Application.getInstance().getCanvas();
 		var canvasView:MovieClip = cv.getCanvasModel().activeView.content;
 		
-		var iconMouseX = _xmouse - cv.model.getPosition().x;
-		var iconMouseY = _ymouse - cv.model.getPosition().y;
+		var iconMouseX = (cv.getCanvasModel().activeView instanceof CanvasComplexView)? cv.getCanvasModel().activeView.content._xmouse : _xmouse - cv.model.getPosition().x; 
+		var iconMouseY = (cv.getCanvasModel().activeView instanceof CanvasComplexView)? cv.getCanvasModel().activeView.content._ymouse : _ymouse - cv.model.getPosition().y;
 		
-		if(cv.getCanvasModel().activeView instanceof CanvasBranchView) {
+		if(cv.getCanvasModel().activeView instanceof CanvasView) {
+			iconMouseX += cv.model.activeView.getScrollPaneHPosition();
+			iconMouseY += cv.model.activeView.getScrollPaneVPosition();
+		} else if(cv.getCanvasModel().activeView instanceof CanvasBranchView) {
 			iconMouseX -= CanvasBranchView.hSpace;
 			iconMouseY -= CanvasBranchView.vSpace;
 		}
 		
 		Debugger.log("iconMouseX: "+iconMouseX+" iconMouseY: "+iconMouseY, Debugger.GEN, "iconDrop", "ToolkitController");
+		Debugger.log("av: " + (cv.getCanvasModel().activeView instanceof CanvasComplexView), Debugger.GEN, "iconDrop", "ToolkitController");
 		
-		var optionalOnCanvas:Array  = cv.getCanvasModel().findOptionalActivities();
+		var optionalOnCanvas:Array  = (cv.getCanvasModel().activeView instanceof CanvasComplexView) ? [cv.model.activeView.openActivity] : cv.getCanvasModel().findOptionalActivities();
 		
 		//SEE IF ITS HIT the canvas
 		var isCanvasDrop:Boolean = cv.getCanvasModel().activeView.content.hitTest(dragIcon_mc);
 		
 		Debugger.log('isCanvasDrop:'+isCanvasDrop,Debugger.GEN,'iconDrop','ToolkitController');
 		
 		for(var i=0; i<optionalOnCanvas.length; i++){
-			var optionalX:Number = optionalOnCanvas[i].activity.xCoord;
-			var optionalY:Number = optionalOnCanvas[i].activity.yCoord;
+			
+			var optionalX:Number = (cv.getCanvasModel().activeView instanceof CanvasComplexView) ?  optionalOnCanvas[i]._x : optionalOnCanvas[i].activity.xCoord;
+			var optionalY:Number = (cv.getCanvasModel().activeView instanceof CanvasComplexView) ?  optionalOnCanvas[i]._y : optionalOnCanvas[i].activity.yCoord;
+			
+			Debugger.log("optionalOnCanvas: " + optionalOnCanvas[i].activity.activityUIID, Debugger.CRITICAL, "iconDrop", "ToolkitController");
+			
+			Debugger.log("opt x: " + optionalX + " opt y: " + optionalY, Debugger.CRITICAL, "iconDrop", "ToolkitController");
+			Debugger.log("im x: " + iconMouseX  + " im y: " + iconMouseY, Debugger.CRITICAL, "iconDrop", "ToolkitController");
+			
 			var optionalWidth:Number = optionalOnCanvas[i]._width;
 			var optionalHeight:Number = optionalOnCanvas[i]._height;
 			
 			if(iconMouseX >= optionalX && iconMouseX <= (optionalX + optionalWidth)){
 				if(iconMouseY >= optionalY && iconMouseY <= (optionalY + optionalHeight)){
 					isCanvasDrop = false;
-					//dragIcon_mc.removeMovieClip();
 					
 					var ta:TemplateActivity = _toolkitModel.getSelectedTemplateActivity();
 					
@@ -104,11 +114,12 @@
 						if(optionalOnCanvas[i].activity.isSequenceBased) {
 							// test mouse ptr 
 							var _children:Array = optionalOnCanvas[i].children;
+							
 							var sequenceDropUIID:Number = null;
 							var sequence = null;
 							
-							var mouseX = cv.model.activeView.content._xmouse - optionalX;
-							var mouseY = cv.model.activeView.content._ymouse - optionalY;
+							var mouseX = (cv.getCanvasModel().activeView instanceof CanvasComplexView) ? cv.model.activeView.content._xmouse : cv.model.activeView.content._xmouse - optionalX;
+							var mouseY = (cv.getCanvasModel().activeView instanceof CanvasComplexView) ? cv.model.activeView.content._ymouse : cv.model.activeView.content._ymouse - optionalY;
 							
 							for(var j=0; j<_children.length; j++) {
 								if(mouseX >= _children[j].activity.xCoord && 
@@ -137,7 +148,9 @@
 		//remove the drag icon
 		dragIcon_mc.removeMovieClip();
 		
-		if(isCanvasDrop){
+		Debugger.log("canvas drop: " + isCanvasDrop, Debugger.CRITICAL, "iconDrop", "ToolkitController");
+		
+		if(isCanvasDrop && !(cv.getCanvasModel().activeView instanceof CanvasComplexView)){
 			var ta:TemplateActivity;
 			ta = _toolkitModel.getSelectedTemplateActivity();
 			Debugger.log('ta:'+ta.toolActivity.title,4,'canvasDrop','ToolkitController');