Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -r352bac648ac315f54a6f95d6b5edcb6ab0d73c3d -rd3d682445aa3dca16d7a1010db38c2473c1b8892
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r352bac648ac315f54a6f95d6b5edcb6ab0d73c3d -rd3d682445aa3dca16d7a1010db38c2473c1b8892
Binary files differ
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/br/CanvasBranchView.as
===================================================================
diff -u -r26ac409edd1315ca7b866156ba035590f30d4716 -rd3d682445aa3dca16d7a1010db38c2473c1b8892
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/br/CanvasBranchView.as	(.../CanvasBranchView.as)	(revision 26ac409edd1315ca7b866156ba035590f30d4716)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/br/CanvasBranchView.as	(.../CanvasBranchView.as)	(revision d3d682445aa3dca16d7a1010db38c2473c1b8892)
@@ -121,10 +121,10 @@
 		var cm:CanvasModel = event.target;
 	   
 		switch (event.updateType){ 
-			case 'POSITION' :
+			case 'POSITION':
                 setPosition(cm);
                 break;
-            case 'SIZE' :
+            case 'SIZE':
                 setSize(cm);
                 break;
 			case 'ADD_SEQUENCE':
@@ -154,10 +154,10 @@
 			case 'REMOVE_TRANSITION':
 				removeTransition(event.data,cm);
 				break;
-			case 'SELECTED_ITEM' :
+			case 'SELECTED_ITEM':
                 highlightActivity(cm);
                 break;
-			case 'SET_ACTIVE' :
+			case 'SET_ACTIVE':
 				Debugger.log('setting activie :' + event.updateType + " event.data: " + event.data + " condition: " + (event.data == this),Debugger.CRITICAL,'update','org.lamsfoundation.lams.CanvasBranchView');
 				transparentCover._visible = (event.data == this) ? false : true;
 				break;
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -r26ac409edd1315ca7b866156ba035590f30d4716 -rd3d682445aa3dca16d7a1010db38c2473c1b8892
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision 26ac409edd1315ca7b866156ba035590f30d4716)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision d3d682445aa3dca16d7a1010db38c2473c1b8892)
@@ -124,8 +124,8 @@
 		 
 	    if(_canvasModel.isDragging){
 			ca.stopDrag();
-			 _canvasModel.isDragging = false;
-			if (ca.activity.parentUIID != null){
+			_canvasModel.isDragging = false;
+			if (ca.activity.parentUIID != null && _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID).activityTypeID != Activity.SEQUENCE_ACTIVITY_TYPE){
 				for (var i=0; i<optionalOnCanvas.length; i++){
 					if (ca.activity.parentUIID == optionalOnCanvas[i].activity.activityUIID){
 						if (optionalOnCanvas[i].locked == false){
@@ -146,19 +146,18 @@
 			
 				//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.
 				for (var i=0; i<optionalOnCanvas.length; i++){
-					//trace ("testing Optional on Canvas "+i)
-					if (ca.activity.activityUIID != optionalOnCanvas[i].activity.activityUIID ){
-						if (ca.hitTest(optionalOnCanvas[i])){
-							if (optionalOnCanvas[i].locked == true){
+					if(ca.activity.activityUIID != optionalOnCanvas[i].activity.activityUIID ){
+						if(ca.hitTest(optionalOnCanvas[i])){
+							if(optionalOnCanvas[i].locked == true){
 								var msg:String = Dictionary.getValue('act_lock_chk');
 								LFMessage.showMessageAlert(msg);
 							}else{
-								if (ca.activity.isGateActivity()){
+								if(ca.activity.isGateActivity()){
 									activitySnapBack(ca);
 									var msg:String = Dictionary.getValue('cv_gateoptional_hit_chk');
 									LFMessage.showMessageAlert(msg);
 								}else {
-									if (_canvasModel.getCanvas().ddm.getTransitionsForActivityUIID(ca.activity.activityUIID).hasTrans){
+									if(_canvasModel.getCanvas().ddm.getTransitionsForActivityUIID(ca.activity.activityUIID).hasTrans){
 										activitySnapBack(ca);
 										var msg:String = Dictionary.getValue('cv_invalid_optional_activity', [ca.activity.title]);
 										LFMessage.showMessageAlert(msg);
@@ -185,6 +184,7 @@
 				ca.activity.xCoord = ca._x;
 				ca.activity.yCoord = ca._y;
 			}
+			// TODO: set coord if dragging/release branch start/end hub
 			
 			//refresh the transitions
 			//TODO: refresh the transitions as you drag...
@@ -218,9 +218,9 @@
 				b.removeMovieClip();
 			}
 			
-			clearAllSelections(optionalOnCanvas, parallelOnCanvas)		
+			clearAllSelections(optionalOnCanvas, parallelOnCanvas);
+			_canvasModel.selectedItem = ca;	
 			_canvasModel.setDirty();
-			_canvasModel.selectedItem = ca;
 			Debugger.log('ca.activity.xCoord:'+ca.activity.xCoord,Debugger.GEN,'activityRelease','CanvasController');
 			
 			
@@ -230,9 +230,9 @@
 				_canvasModel.activeView.removeTempTrans();
 				new LFError("You cannot create a Transition between the same Activities","addActivityToTransition",this);
 			}
-			clearAllSelections(optionalOnCanvas, parallelOnCanvas)
-			_canvasModel.setDirty();
+			clearAllSelections(optionalOnCanvas, parallelOnCanvas);
 			_canvasModel.selectedItem = ca;
+			_canvasModel.setDirty();
 		}
 	}
    
@@ -492,7 +492,12 @@
 		//cm creates gate act and another transition to make [trans][gate][trans] seq
 		//sets in ddm
 		//flags dirty to refresh view
-		_canvasModel.createGateTransition(_canvasModel.selectedItem.transition.transitionUIID,evt.gate);
+		var parent:SequenceActivity = null;
+		if(_canvasModel.activeView instanceof CanvasBranchView) {
+			parent = _canvasModel.activeView.defaultSequenceActivity;
+		}
+		
+		_canvasModel.createGateTransition(_canvasModel.selectedItem.transition.transitionUIID, evt.gate, parent);
 	}
 		
 	/**
@@ -512,34 +517,39 @@
 		
 		var complexActWidth:Number = _canvasModel.getCanvas().complexActivityWidth;
 		
-		Debugger.log(_canvasModel.activeView,Debugger.GEN,'canvasRelease','CanvasController');
+		Debugger.log(_canvasModel.activeView + " " + _canvasModel.activeView instanceof CanvasBranchView,Debugger.GEN,'canvasRelease','CanvasController');
 		Debugger.log('_canvasModel.activeTool:'+_canvasModel.activeTool,Debugger.GEN,'canvasRelease','CanvasController');
 		
 		_canvasModel.selectedItem = null;
 		
+		var parent:SequenceActivity = null;
+		if(_canvasModel.activeView instanceof CanvasBranchView) {
+			parent = _canvasModel.activeView.defaultSequenceActivity;
+		}
+		
 		if(_canvasModel.activeTool == CanvasModel.GATE_TOOL){
 			var p = new Point(_canvasModel.activeView._xmouse, _canvasModel.activeView._ymouse); 
-			_canvasModel.createNewGate(Activity.PERMISSION_GATE_ACTIVITY_TYPE,p);
+			_canvasModel.createNewGate(Activity.PERMISSION_GATE_ACTIVITY_TYPE,p,parent);
 			_canvasModel.getCanvas().stopGateTool();
 		}
 		
 		if(_canvasModel.activeTool == CanvasModel.OPTIONAL_TOOL){
 			var p = new Point(_canvasModel.activeView._xmouse-(complexActWidth/2), _canvasModel.activeView._ymouse); 
-			_canvasModel.createNewOptionalActivity(Activity.OPTIONAL_ACTIVITY_TYPE,p);
+			_canvasModel.createNewOptionalActivity(Activity.OPTIONAL_ACTIVITY_TYPE,p,parent);
 			_canvasModel.getCanvas().stopOptionalActivity();
 			
 		}
 		
 		if(_canvasModel.activeTool == CanvasModel.GROUP_TOOL){
 			var p = new Point(_canvasModel.activeView._xmouse-(toolActWidth/2), _canvasModel.activeView._ymouse-(toolActHeight/2)); 
-			_canvasModel.createNewGroupActivity(p);
+			_canvasModel.createNewGroupActivity(p,parent);
 			_canvasModel.getCanvas().stopGroupTool();
 			
 		}
 		
 		if(_canvasModel.activeTool == CanvasModel.BRANCH_TOOL){
 			var p = new Point(_canvasModel.activeView._xmouse-(toolActWidth/2), _canvasModel.activeView._ymouse-(toolActHeight/2)); 
-			_canvasModel.createNewBranchActivity(p);
+			_canvasModel.createNewBranchActivity(p,parent);
 			_canvasModel.getCanvas().stopBranchTool();
 		}
 		
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as
===================================================================
diff -u -r26ac409edd1315ca7b866156ba035590f30d4716 -rd3d682445aa3dca16d7a1010db38c2473c1b8892
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision 26ac409edd1315ca7b866156ba035590f30d4716)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasModel.as	(.../CanvasModel.as)	(revision d3d682445aa3dca16d7a1010db38c2473c1b8892)
@@ -279,40 +279,49 @@
 	 * @param   gateTypeID     
 	 * @return  
 	 */
-	public function createGateTransition(transitionUIID,gateTypeID){
+	public function createGateTransition(transitionUIID,gateTypeID, parent){
 		Debugger.log('transitionUIID:'+transitionUIID,Debugger.GEN,'createGateTransition','CanvasModel');
 		Debugger.log('gateTypeID:'+gateTypeID,Debugger.GEN,'createGateTransition','CanvasModel');
+		
 		var editedTrans = _cv.ddm.getTransitionByUIID(transitionUIID);
 		var editedCanvasTrans = _transitionsDisplayed.get(transitionUIID);
 		var fromAct = _cv.ddm.getActivityByUIID(editedTrans.fromUIID);
 		var toAct = _cv.ddm.getActivityByUIID(editedTrans.toUIID);
+		
 		//create a gate activity
 		var gateAct = new GateActivity(_cv.ddm.newUIID(),gateTypeID);
 		gateAct.learningDesignID = _cv.ddm.learningDesignID;
-		
 		gateAct.title = Dictionary.getValue('gate_btn');
 		gateAct.yCoord = editedCanvasTrans.midPoint.y - (CanvasActivity.GATE_ACTIVITY_WIDTH / 2);
 		gateAct.xCoord = editedCanvasTrans.midPoint.x - (CanvasActivity.GATE_ACTIVITY_HEIGHT / 2);
 		
 		Debugger.log('gateAct.yCoord:'+gateAct.yCoord,Debugger.GEN,'createGateTransition','CanvasModel');
 		Debugger.log('gateAct.xCoord:'+gateAct.xCoord,Debugger.GEN,'createGateTransition','CanvasModel');
 
+		if(parent != null) {
+			gateAct.parentActivityID = parent.activityID;
+			gateAct.parentUIID = parent.activityUIID;
+		}
+
 		_cv.ddm.addActivity(gateAct);
 		_cv.ddm.removeTransition(transitionUIID);
+		
 		//create the from trans
 		addActivityToTransition(fromAct);
 		addActivityToTransition(gateAct);
-		resetTransitionTool()
+		resetTransitionTool();
+		
 		//create the to trans
 		addActivityToTransition(gateAct);
 		addActivityToTransition(toAct);
-		resetTransitionTool()
+		resetTransitionTool();
 		
-		
 		//flag the model as dirty and trigger a refresh
-		setDirty();	
+		setDirty();
+		
 		//select the new thing
 		setSelectedItem(_activitiesDisplayed.get(gateAct.activityUIID));
+		
 	}
 	
 	/**
@@ -322,7 +331,7 @@
 	 * @param   pos        
 	 * @return  
 	 */
-	public function createNewGate(gateTypeID, pos:Point){
+	public function createNewGate(gateTypeID, pos:Point, parent){
 		Debugger.log('gateTypeID:'+gateTypeID,Debugger.GEN,'createNewGate','CanvasModel');
 		var gateAct = new GateActivity(_cv.ddm.newUIID(),gateTypeID);
 		gateAct.learningDesignID = _cv.ddm.learningDesignID;
@@ -331,10 +340,14 @@
 		gateAct.yCoord = pos.y;
 		gateAct.xCoord = pos.x;
 		
-		
 		Debugger.log('gateAct.yCoord:'+gateAct.yCoord,Debugger.GEN,'createGateTransition','CanvasModel');
 		Debugger.log('gateAct.xCoord:'+gateAct.xCoord,Debugger.GEN,'createGateTransition','CanvasModel');
 
+		if(parent != null) {
+			gateAct.parentActivityID = parent.activityID;
+			gateAct.parentUIID = parent.activityUIID;
+		}
+
 		_cv.ddm.addActivity(gateAct);
 		
 		setDirty();
@@ -350,7 +363,7 @@
 	 * @param   pos 
 	 * @return  
 	 */
-	public function createNewBranchActivity(pos:Point){
+	public function createNewBranchActivity(pos:Point, parent){
 		Debugger.log('Running...',Debugger.GEN,'createNewBranchActivity','CanvasModel');
 		
 		var branchingActivity = new BranchingActivity(_cv.ddm.newUIID());
@@ -365,6 +378,11 @@
 		Debugger.log('branchingActivity.yCoord:'+branchingActivity.yCoord,Debugger.GEN,'createNewBranchActivity','CanvasModel');
 		Debugger.log('branchingActivity.xCoord:'+branchingActivity.xCoord,Debugger.GEN,'createNewBranchActivity','CanvasModel');
 
+		if(parent != null) {
+			branchingActivity.parentActivityID = parent.activityID;
+			branchingActivity.parentUIID = parent.activityUIID;
+		}
+
 		_cv.ddm.addActivity(branchingActivity);
 		
 		//tell the canvas to go refresh
@@ -400,7 +418,7 @@
 	 * @param   pos 
 	 * @return  
 	 */
-	public function createNewGroupActivity(pos:Point){
+	public function createNewGroupActivity(pos:Point, parent){
 		Debugger.log('Running...',Debugger.GEN,'createNewGroupActivity','CanvasModel');
 		
 		//first create the grouping object
@@ -421,6 +439,11 @@
 		Debugger.log('groupingActivity.yCoord:'+groupingActivity.yCoord,Debugger.GEN,'createNewGroupActivity','CanvasModel');
 		Debugger.log('groupingActivity.xCoord:'+groupingActivity.xCoord,Debugger.GEN,'createNewGroupActivity','CanvasModel');
 
+		if(parent != null) {
+			groupingActivity.parentActivityID = parent.activityID;
+			groupingActivity.parentUIID = parent.activityUIID;
+		}
+
 		_cv.ddm.addActivity(groupingActivity);
 		
 		//tell the canvas to go refresh
@@ -436,7 +459,7 @@
 	 * @param   pos        
 	 * @return  
 	 */
-	public function createNewOptionalActivity(ActivityTypeID, pos:Point){
+	public function createNewOptionalActivity(ActivityTypeID, pos:Point, parent){
 		var optAct = new ComplexActivity(_cv.ddm.newUIID());
 		
 		optAct.learningDesignID = _cv.ddm.learningDesignID;
@@ -449,6 +472,11 @@
 		
 		Debugger.log('Optional Activitys Y Coord is :'+optAct.yCoord,Debugger.GEN,'createNewOptionalActivity','CanvasModel');
 		
+		if(parent != null) {
+			optAct.parentActivityID = parent.activityID;
+			optAct.parentUIID = parent.activityUIID;
+		}
+		
 		_cv.ddm.addActivity(optAct);
 		
 		setDirty();
Index: lams_flash/src/common/flash/org/lamsfoundation/lams/common/CommonCanvasView.as
===================================================================
diff -u -r6315ccfc298871795f8ab124b561646cc09a93f5 -rd3d682445aa3dca16d7a1010db38c2473c1b8892
--- lams_flash/src/common/flash/org/lamsfoundation/lams/common/CommonCanvasView.as	(.../CommonCanvasView.as)	(revision 6315ccfc298871795f8ab124b561646cc09a93f5)
+++ lams_flash/src/common/flash/org/lamsfoundation/lams/common/CommonCanvasView.as	(.../CommonCanvasView.as)	(revision d3d682445aa3dca16d7a1010db38c2473c1b8892)
@@ -87,7 +87,7 @@
 			// deselect previously selected item
 			if(m.prevSelectedItem != null) {
 				// if child of an complex activity is previously selected, it is easiest to clear all the children
-				if(m.prevSelectedItem.activity.parentUIID != null) {
+				if(m.prevSelectedItem.activity.parentUIID != null && m.getCanvas().ddm.getActivityByUIID(m.prevSelectedItem.activity.parentUIID).activityTypeID != Activity.SEQUENCE_ACTIVITY_TYPE) {
 					var caComplex = m.activitiesDisplayed.get(m.prevSelectedItem.activity.parentUIID);
 					caComplex.refreshChildren();
 				} else {