Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r434299dda2df6be5bd2f7dff51ed8872a3469058 -rb67f799fb4c81cd50dbcb8a5d85546ecd4852f98
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r434299dda2df6be5bd2f7dff51ed8872a3469058 -rb67f799fb4c81cd50dbcb8a5d85546ecd4852f98
Binary files differ
Index: lams_flash/src/central/flash/lams_authoring.fla
===================================================================
diff -u -r4ad1a326ee8a1cfcd2fa35794fe0659f5a93a13a -rb67f799fb4c81cd50dbcb8a5d85546ecd4852f98
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as
===================================================================
diff -u -rc8daa528b2fc8459b73d048ddfeb3c0daf4f78c3 -rb67f799fb4c81cd50dbcb8a5d85546ecd4852f98
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as	(.../CanvasActivity.as)	(revision c8daa528b2fc8459b73d048ddfeb3c0daf4f78c3)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as	(.../CanvasActivity.as)	(revision b67f799fb4c81cd50dbcb8a5d85546ecd4852f98)
@@ -521,9 +521,19 @@
 		
 			//chose the background mc
 			if(_activity.groupingUIID != null && _activity.groupingUIID > 0){
+				if(_sequenceChild)  {
+					fade_mc._height = 37;
+					act_pnl._height = 37.5;
+				}
 				canvasActivityGrouped_mc._visible = true;
+				
 				canvasActivity_mc._visible = false;
 			}else{
+				if(_sequenceChild) {
+					fade_mc._height = 40;
+					act_pnl._height = 40.5;
+				}
+				
 				canvasActivity_mc._visible = true;
 				canvasActivityGrouped_mc._visible = false;
 			}
@@ -538,7 +548,7 @@
 			clickTarget_mc._width = (_sequenceChild) ? CanvasActivity.TOOL_MIN_ACTIVITY_WIDTH : TOOL_ACTIVITY_WIDTH;
 			clickTarget_mc._height = (_sequenceChild) ? CanvasActivity.TOOL_MIN_ACTIVITY_HEIGHT : TOOL_ACTIVITY_HEIGHT;
 			
-			if(activity.isBranchingActivity()) {
+			if(activity.isBranchingActivity() && !_sequenceChild && showDiagram) {
 				clickTarget_mc._width = TOOL_BRANCHING_WIDTH;
 				clickTarget_mc._height = TOOL_BRANCHING_HEIGHT;
 			}