Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r0c35a9cd829778237177b85b8174e55e5e17d060 -rb9e8f17d008c33688177197dfc30c6f3cb794cf6
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r0c35a9cd829778237177b85b8174e55e5e17d060 -rb9e8f17d008c33688177197dfc30c6f3cb794cf6
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as
===================================================================
diff -u -rf1269ae0a26dba294ec02a457561b0b63447565e -rb9e8f17d008c33688177197dfc30c6f3cb794cf6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as	(.../Canvas.as)	(revision f1269ae0a26dba294ec02a457561b0b63447565e)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/Canvas.as	(.../Canvas.as)	(revision b9e8f17d008c33688177197dfc30c6f3cb794cf6)
@@ -446,17 +446,17 @@
 		
 		//select the new thing
 		if (taParent != undefined || taParent != null){
-			var sequenceAct:Activity = canvasModel.getCanvas().ddm.getActivityByUIID(taParent);
-			if(sequenceAct.isSequenceActivity() && sequence != null) {
-				actToAdd.orderID = canvasModel.getCanvas().ddm.getNextSequenceOrderID(sequenceAct.activityUIID);
+			var parentActivity:Activity = canvasModel.getCanvas().ddm.getActivityByUIID(taParent);
+			if(parentActivity.isSequenceActivity() && sequence != null) {
+				actToAdd.orderID = canvasModel.getCanvas().ddm.getNextSequenceOrderID(parentActivity.activityUIID);
 				
 				Debugger.log("sequence.lastActivity: " + sequence.lastActivity, Debugger.CRITICAL, "setDroppedTemplateActivity", "Canvas");
 				
 				if(actToAdd.orderID > 1) canvasModel.createSequenceTransition(sequence.lastActivity, actToAdd);
-				else ComplexActivity(sequenceAct).firstActivityUIID = actToAdd.activityUIID;							
+				else ComplexActivity(parentActivity).firstActivityUIID = actToAdd.activityUIID;							
 				
 				if(!(canvasModel.activeView instanceof CanvasComplexView)) {
-					canvasModel.removeActivity(sequenceAct.parentUIID); 
+					canvasModel.removeActivity(parentActivity.parentUIID); 
 				}
 			}
 			
@@ -469,6 +469,12 @@
 				canvasModel.activeView.updateActivity();
 			}
 			
+			if (canvasModel.activeView instanceof CanvasBranchView) {
+				if(_ddm.getComplexActivityChildren(canvasModel.activeView.defaultSequenceActivity.activityUIID).length <= 0) {
+					canvasModel.activeView.defaultSequenceActivity.empty = true;
+				}
+			}
+			
 			canvasModel.setDirty();
 		}
 		
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSuperModel.as
===================================================================
diff -u -r0e378dd9696fcf3cd772974aa98f0cef54fdb972 -rb9e8f17d008c33688177197dfc30c6f3cb794cf6
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSuperModel.as	(.../CanvasSuperModel.as)	(revision 0e378dd9696fcf3cd772974aa98f0cef54fdb972)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSuperModel.as	(.../CanvasSuperModel.as)	(revision b9e8f17d008c33688177197dfc30c6f3cb794cf6)
@@ -1022,6 +1022,12 @@
 		removeActivity(ca.activity.activityUIID);
 		if(doRemoveParent) removeActivity(parentID);
 		
+		if (activeView instanceof CanvasBranchView) {
+			if(_cv.ddm.getComplexActivityChildren(activeView.defaultSequenceActivity.activityUIID).length <= 0) {
+				activeView.defaultSequenceActivity.empty = true;
+			}
+		}
+		
 		setDirty();
 	}