Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -rda1644d8e66121854689bf4c74caa46457502601 -rc9642c4efc4eebfa394d0acffd2a7178aec97526
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -rda1644d8e66121854689bf4c74caa46457502601 -rc9642c4efc4eebfa394d0acffd2a7178aec97526
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -rb6aefa99414741f15c93b20323fc672ced42ccb3 -rc9642c4efc4eebfa394d0acffd2a7178aec97526
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision b6aefa99414741f15c93b20323fc672ced42ccb3)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision c9642c4efc4eebfa394d0acffd2a7178aec97526)
@@ -66,12 +66,14 @@
    
     public function activityClick(ca:Object):Void{
 		
+		_tempSelectedItem = _canvasModel.selectedItem;
+		_canvasModel.selectedItem = null;
 		
 		Debugger.log('activityClick CanvasActivity:'+ca.activity.activityUIID + ' orderID: ' + ca.activity.orderID,Debugger.GEN,'activityClick','CanvasController');
 	    Debugger.log('Check if transition tool active :'+_canvasModel.isTransitionToolActive(),Debugger.GEN,'activityClick','CanvasController');
 	    
 		//if transition tool active
-	    if(_canvasModel.isTransitionToolActive()){
+	    if(_canvasModel.isTransitionToolActive()) {
 		    
 			var transitionTarget = createValidTransitionTarget(ca, true);
 		    if(transitionTarget instanceof LFError){
@@ -82,11 +84,8 @@
 				_canvasModel.activeView.initDrawTempTrans();
 			}
 			
-	    }else{
-			
-		   //just select the activity
-			var parentAct = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
-			
+	    } else {
+				
 			if(ca.activity.parentUIID != null && (parentAct.isParallelActivity() || 
 			    ca.activity.isOptionalSequenceActivity(parentAct))) {
 				_canvasModel.isDragging = false;
@@ -95,26 +94,28 @@
 				_canvasModel.isDragging = true;
 			}
 			
+		    var parentAct = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
+			var parentSelectedAct = _canvasModel.getCanvas().ddm.getActivityByUIID(_tempSelectedItem.activity.parentUIID);
+			var optionalOnCanvas:Array  = _canvasModel.findOptionalActivities();
 			
-			if(_tempSelectedItem.activity.parentUIID == parentAct.activityUIID && _tempSelectedItem != ca) {
+			if(_tempSelectedItem != null) {
+			
+				// clear currently selected activity
+				for (var i=0; i<optionalOnCanvas.length; i++) {
+					if(parentSelectedAct.parentUIID == optionalOnCanvas[i].activity.activityUIID) {
+						_tempSelectedItem.swapDepths(_tempSelectedItem.depthHistory);
+						_tempSelectedItem.depthHistory = null;
+					}
+				}
+
+			}
+			
+			if(parentAct.isOptionalSequenceActivity(_canvasModel.getCanvas().ddm.getActivityByUIID(parentAct.parentUIID))) {
 				ca.depthHistory = ca.getDepth();
 				ca.swapDepths(DepthManager.kTop);
-						
-				_tempSelectedItem.swapDepths(_tempSelectedItem.depthHistory);
-			} else {
-				ca.depthHistory = ca.getDepth();
-				ca.swapDepths(DepthManager.kTop);
 			}
 			
-			var optionalOnCanvas:Array  = _canvasModel.findOptionalActivities();
-			for (var i=0; i<optionalOnCanvas.length; i++)
-				if(parentAct.parentUIID == optionalOnCanvas[i].activity.activityUIID && _tempSelectedItem != ca)
-					_tempSelectedItem.swapDepths(_tempSelectedItem.depthHistory);
-					
 		}
-		
-		_tempSelectedItem = _canvasModel.selectedItem;
-		_canvasModel.selectedItem = null;
 	   
     }
    
@@ -357,8 +358,7 @@
 			
 			clearAllSelections(optionalOnCanvas, parallelOnCanvas);
 			
-			_tempSelectedItem = null;
-			_canvasModel.selectedItem = ca;	
+			_canvasModel.selectedItem = ca;
 			_canvasModel.setDirty();
 			
 			Debugger.log('ca.activity.xCoord:'+ca.activity.xCoord,Debugger.GEN,'activityRelease','CanvasController');
@@ -404,9 +404,12 @@
 	 */
 	public function activityDoubleClick(ca:Object):Void{
 	    Debugger.log('activityDoubleClick CanvasActivity:'+ca.activity.activityUIID,Debugger.CRITICAL,'activityDoubleClick','CanvasController');
+		
 		var parentAct = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID)
+		
 		_canvasModel.getCanvas().stopActiveTool();
 		_canvasModel.getCanvas().stopTransitionTool();	
+		
 		if(!isActivityReadOnly(ca, Dictionary.getValue("cv_element_readOnly_action_mod"))) {
 			if(_canvasModel.getCanvas().ddm.readOnly && !_canvasModel.getCanvas().ddm.editOverrideLock){
 				// throw alert warning
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as
===================================================================
diff -u -rb6aefa99414741f15c93b20323fc672ced42ccb3 -rc9642c4efc4eebfa394d0acffd2a7178aec97526
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision b6aefa99414741f15c93b20323fc672ced42ccb3)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision c9642c4efc4eebfa394d0acffd2a7178aec97526)
@@ -399,11 +399,12 @@
 	public function removeOptionalSequenceCA(ca:Object, parentID){
 		haltRefresh(true);
 
+		unhookOptionalSequenceCA(ca);
+		
 		ca.activity.parentUIID = (activeView instanceof CanvasBranchView) ? activeView.defaultSequenceActivity.activityUIID : null;
 		ca.activity.orderID = null;
 		ca.activity.parentActivityID = (activeView instanceof CanvasBranchView) ? activeView.defaultSequenceActivity.activityID : null;
 		
-		unhookOptionalSequenceCA(ca);
 		removeActivity(parentID);
 		
 		haltRefresh(false);
@@ -416,14 +417,15 @@
 		
 		var toActivity:Activity = null;
 		var fromActivity:Activity = null;
+		var parentAct:SequenceActivity = SequenceActivity(sequence);
 		
 		if(transitionObj.into != null && transitionObj.out != null) {
 			toActivity = _cv.ddm.getActivityByUIID(transitionObj.out.toUIID);
 			fromActivity = _cv.ddm.getActivityByUIID(transitionObj.into.fromUIID);
-		} else if(transitionObj.into == null && transitionObj.out != null) {
-			ComplexActivity(sequence).firstActivityUIID = transitionObj.out.toUIID;
-		} else if(transitionObj.out == null && transitionObj.into == null) {
-			ComplexActivity(sequence).firstActivityUIID = null;
+		} else if(transitionObj.out != null) {
+			parentAct.firstActivityUIID = transitionObj.out.toUIID;
+		} else if(transitionObj.out == null && transitionObj.into == null){
+			parentAct.firstActivityUIID = null;
 		}
 		
 		_cv.ddm.removeTransitionByConnection(ca.activity.activityUIID);
@@ -451,20 +453,21 @@
 		}
 		
 		Debugger.log("selectedIndex: " + selectedIndex, Debugger.CRITICAL, "moveOptionalSequenceCA", "CanvasModel");
-		
-		if(oChildren[selectedIndex] != ca.activity) {
-			// remove ca from sequence
-			Debugger.log("selectedIndex order: " + Activity(oChildren[selectedIndex]).orderID, Debugger.CRITICAL, "moveOptionalSequenceCA", "CanvasModel");
-			Debugger.log("ca order: " + ca.activity.orderID, Debugger.CRITICAL, "moveOptionalSequenceCA", "CanvasModel");
-		
-			//var _dir:Number = (Activity(oChildren[selectedIndex]).orderID < ca.activity.orderID) ? 0 : 1;
-			var _dir:Number = (ca.activity.xCoord > ca._x) ? 0 : 1;
+		if(selectedIndex != null) {
+			if(oChildren[selectedIndex] != ca.activity) {
+				// remove ca from sequence
+				Debugger.log("selectedIndex order: " + Activity(oChildren[selectedIndex]).orderID, Debugger.CRITICAL, "moveOptionalSequenceCA", "CanvasModel");
+				Debugger.log("ca order: " + ca.activity.orderID, Debugger.CRITICAL, "moveOptionalSequenceCA", "CanvasModel");
 			
-			unhookOptionalSequenceCA(ca);
-			addOptionalSequenceCA(ca, oChildren[selectedIndex], _dir);
-			
-			return true;
-		} 
+				//var _dir:Number = (Activity(oChildren[selectedIndex]).orderID < ca.activity.orderID) ? 0 : 1;
+				var _dir:Number = (ca.activity.xCoord > ca._x) ? 0 : 1;
+				
+				unhookOptionalSequenceCA(ca);
+				addOptionalSequenceCA(ca, oChildren[selectedIndex], _dir);
+				
+				return true;
+			} 
+		}
 		
 		return false;
 	}
@@ -485,7 +488,7 @@
 		if(transition != null) {
 			targetActivity = (_dir == 0) ? _cv.ddm.getActivityByUIID(transition.fromUIID) :  _cv.ddm.getActivityByUIID(transition.toUIID);
 		} else {
-			ComplexActivity(sequence).firstActivityUIID = (_dir == 0) ? ca.activity.activityUIID : nextOrPrevActivity.activityUIID;
+			if(_dir == 0) ComplexActivity(sequence).firstActivityUIID = ca.activity.activityUIID;
 		}
 		
 		Debugger.log("targetActivity order: " + targetActivity.orderID, Debugger.CRITICAL, "addOptionalSequenceCA", "CanvasModel");
@@ -969,7 +972,7 @@
 		if(ddm_activity.parentActivityID > 0 || ddm_activity.parentUIID > 0){
 			var parentAct;
 			if((parentAct = _cv.ddm.activities.get(ddm_activity.parentUIID)) != null)
-				if(parentAct.activityTypeID == Activity.SEQUENCE_ACTIVITY_TYPE)
+				if(parentAct.activityTypeID == Activity.SEQUENCE_ACTIVITY_TYPE && !parentAct.isOptionalSequenceActivity(_cv.ddm.activities.get(parentAct.parentUIID)))
 					return r = "NEW_SEQ_CHILD";
 			
 			return r = "CHILD";