Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r72685d659861b2cc84b109799cc20738ae839fad -rce218d842869d1155caac214e8c8e4cfadde0642
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r72685d659861b2cc84b109799cc20738ae839fad -rce218d842869d1155caac214e8c8e4cfadde0642
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as
===================================================================
diff -u -ra36df8bbc3b9245e620cca61db706bc33bc727af -rce218d842869d1155caac214e8c8e4cfadde0642
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as	(.../CanvasActivity.as)	(revision a36df8bbc3b9245e620cca61db706bc33bc727af)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasActivity.as	(.../CanvasActivity.as)	(revision ce218d842869d1155caac214e8c8e4cfadde0642)
@@ -116,6 +116,7 @@
 	private var _setupBranchView:Boolean;
 	
 	private var _sequenceChild:Boolean;
+	private var _depthHistory:Number;
 	
 	private var _ddm:DesignDataModel;
 	
@@ -215,7 +216,7 @@
 		if(isSelected) {
 			//draw a selected border
 			var tgt_mc;
-			if(_activity.isGateActivity())
+			if(_activity.isGateActivity() && !_sequenceChild)
 				tgt_mc = stopSign_mc;			
 			else if(_activity.groupingUIID > 0)
 				tgt_mc = canvasActivityGrouped_mc;
@@ -238,7 +239,8 @@
 			if(_selected_mc){
 				_selected_mc.removeMovieClip();
 			}
-			_selected_mc = _base_mc.createEmptyMovieClip('_selected_mc',_base_mc.getNextHighestDepth());
+			
+			_selected_mc = _base_mc.createEmptyMovieClip('_selected_mc', _base_mc.getNextHighestDepth());
 				
 			var dashStyle:mx.styles.CSSStyleDeclaration = _tm.getStyleObject("CAHighlightBorder");
 			var color:Number = dashStyle.getStyle("color");
@@ -251,6 +253,9 @@
 			_isSelected = isSelected;
 					
 		} else {
+			if(depthHistory != null)
+				this.swapDepths(depthHistory);
+			
 			//hide the selected border
 			_selected_mc.removeMovieClip();
 		}
@@ -694,12 +699,21 @@
 		_setupBranchView = a;
 	}
 	
+	public function get depthHistory():Number {
+		return _depthHistory;
+	}
+	
+	public function set depthHistory(a:Number):Void {
+		_depthHistory = a;
+	}
+	
 	private function getDDM():DesignDataModel {
 		if(_module == "monitoring") {
 			return _monitorView.ddm;
 		} else {
 			return _canvasView.ddm;
 		}
 	}
+	
 
 }
\ No newline at end of file
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -r72685d659861b2cc84b109799cc20738ae839fad -rce218d842869d1155caac214e8c8e4cfadde0642
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision 72685d659861b2cc84b109799cc20738ae839fad)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision ce218d842869d1155caac214e8c8e4cfadde0642)
@@ -44,6 +44,7 @@
 	private var _pi:PropertyInspector;
 	private var app:Application;
 	private var _isBusy:Boolean;
+	private var _tempSelectedItem:Object;
 	
 	/**
 	* Constructor
@@ -60,11 +61,14 @@
 		_pi = new PropertyInspector();
 		app = Application.getInstance();
 		_isBusy = false;
+		_tempSelectedItem = null;
 	}
    
     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');
 	    
@@ -83,7 +87,7 @@
 	    }else{
 			
 		   //just select the activity
-			var parentAct = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID)
+			var parentAct = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
 			
 			if(ca.activity.parentUIID != null && (parentAct.isParallelActivity() || 
 			    ca.activity.isOptionalSequenceActivity(parentAct))) {
@@ -129,8 +133,10 @@
 	    if(_canvasModel.isDragging){
 			ca.stopDrag();
 			_canvasModel.isDragging = false;
-			var sequenceActivity:Activity = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
 			
+			var sequenceActivity:Activity = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
+			var selectedParentActivity:Activity = _canvasModel.getCanvas().ddm.getActivityByUIID(_tempSelectedItem.activity.parentUIID);
+					
 			if (ca.activity.parentUIID != null && 
 				sequenceActivity.activityTypeID != Activity.SEQUENCE_ACTIVITY_TYPE){
 				
@@ -153,11 +159,31 @@
 				
 			} else if(ca.activity.parentUIID != null && 
 						sequenceActivity.isSequenceActivity()) {
+				
 				for (var i=0; i<optionalOnCanvas.length; i++) {
-					if (sequenceActivity.parentUIID == optionalOnCanvas[i].activity.activityUIID)
+					if (sequenceActivity.parentUIID == optionalOnCanvas[i].activity.activityUIID) {
+						if(_tempSelectedItem.activity.parentUIID == sequenceActivity.activityUIID) {
+							ca.depthHistory = ca.getDepth();
+							ca.swapDepths(_tempSelectedItem);
+							
+							_tempSelectedItem.swapDepths(_tempSelectedItem.depthHistory);
+							_tempSelectedItem.depthHistory = null;
+						} else {
+							ca.depthHistory = ca.getDepth();
+							ca.swapDepths(DepthManager.kTop);
+						}
+							
 						if (optionalOnCanvas[i].locked == false)
 							activitySnapBack(ca);
+							
+					}
+					
+					if(selectedParentActivity.parentUIID == optionalOnCanvas[i].activity.activityUIID) {
+						_tempSelectedItem.swapDepths(_tempSelectedItem.depthHistory);
+						_tempSelectedItem.depthHistory = null;
+					}
 				}
+				
 			} else {
 			
 				//if we are on the optional Activity remove this activity from canvas and assign it a parentID of optional activity and place it in the optional activity window.
@@ -310,6 +336,7 @@
 			
 			clearAllSelections(optionalOnCanvas, parallelOnCanvas);
 			
+			_tempSelectedItem = null;
 			_canvasModel.selectedItem = ca;	
 			_canvasModel.setDirty();
 			
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSequenceActivity.as
===================================================================
diff -u -r72685d659861b2cc84b109799cc20738ae839fad -rce218d842869d1155caac214e8c8e4cfadde0642
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSequenceActivity.as	(.../CanvasSequenceActivity.as)	(revision 72685d659861b2cc84b109799cc20738ae839fad)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasSequenceActivity.as	(.../CanvasSequenceActivity.as)	(revision ce218d842869d1155caac214e8c8e4cfadde0642)
@@ -178,9 +178,6 @@
 			children_mc[i].activity.yCoord = CHILD_OFFSET_Y;
 			
 			children_mc[i]._visible = true;
-			
-			Debugger.log("orderID: " + _children[i].orderID, Debugger.CRITICAL, "init", "CanvasSequenceActivity");
-		
 		}
 		
 		var _newVisibleWidth:Number = (_children.length*CHILD_INCRE) + (CHILD_OFFSET_X*2) + 6;
@@ -363,7 +360,6 @@
 		}
 	}
 	
-	
 	/**
 	 * 
 	 * @usage   
@@ -419,7 +415,6 @@
 		return styleObj;
 	}
 
-
 	/**
 	 * Get the CSSStyleDeclaration objects for each component and applies them
 	 * directly to the instanced
@@ -454,5 +449,9 @@
 		
 		draw();
 	}
+	
+	public function get container():MovieClip {
+		return childActivities_mc;
+	}
 
 }
\ No newline at end of file