Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as
===================================================================
diff -u -rae94dcab20b0633859c1e33b0b0a8aca29b83ec3 -reea08320db5cf5152274aa60d49dc74004ca5014
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision ae94dcab20b0633859c1e33b0b0a8aca29b83ec3)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/cv/CanvasController.as	(.../CanvasController.as)	(revision eea08320db5cf5152274aa60d49dc74004ca5014)
@@ -163,14 +163,9 @@
 			var sequenceActivity:Activity = _canvasModel.getCanvas().ddm.getActivityByUIID(ca.activity.parentUIID);
 			var selectedParentActivity:Activity = _canvasModel.getCanvas().ddm.getActivityByUIID(_tempSelectedItem.activity.parentUIID);
 			
-			var iconMouseX = _xmouse - _canvasModel.getPosition().x;
-			var iconMouseY = _ymouse - _canvasModel.getPosition().y;
+			var iconMouseX = _canvasModel.activeView.content._xmouse;
+			var iconMouseY = _canvasModel.activeView.content._ymouse;
 			
-			if(_canvasModel.activeView instanceof CanvasBranchView) {
-				iconMouseX -= CanvasBranchView.hSpace;
-				iconMouseY -= CanvasBranchView.vSpace;
-			}
-			
 			if (ca.activity.parentUIID != null && 
 				sequenceActivity.activityTypeID != Activity.SEQUENCE_ACTIVITY_TYPE){
 				
@@ -262,6 +257,7 @@
 										// test mouse ptr 
 										var _children:Array = optionalOnCanvas[i].children;
 										var selectedSequence:MovieClip = null;
+										
 										var mouseX = iconMouseX - optionalX;
 										var mouseY = iconMouseY - optionalY;
 										
Index: lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as
===================================================================
diff -u -rb0054257349ffef3a3cd82ecd30eb6e5b48ad953 -reea08320db5cf5152274aa60d49dc74004ca5014
--- lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision b0054257349ffef3a3cd82ecd30eb6e5b48ad953)
+++ lams_flash/src/central/flash/org/lamsfoundation/lams/authoring/tk/ToolkitController.as	(.../ToolkitController.as)	(revision eea08320db5cf5152274aa60d49dc74004ca5014)
@@ -90,7 +90,7 @@
 			if(iconMouseX >= optionalX && iconMouseX <= (optionalX + optionalWidth)){
 				if(iconMouseY >= optionalY && iconMouseY <= (optionalY + optionalHeight)){
 					isCanvasDrop = false;
-					dragIcon_mc.removeMovieClip();
+					//dragIcon_mc.removeMovieClip();
 					
 					var ta:TemplateActivity = _toolkitModel.getSelectedTemplateActivity();
 					
@@ -106,9 +106,10 @@
 							var _children:Array = optionalOnCanvas[i].children;
 							var sequenceDropUIID:Number = null;
 							var sequence = null;
-							var mouseX = iconMouseX - optionalX;
-							var mouseY = iconMouseY - optionalY;
 							
+							var mouseX = cv.model.activeView.content._xmouse - optionalX;
+							var mouseY = cv.model.activeView.content._ymouse - optionalY;
+							
 							for(var j=0; j<_children.length; j++) {
 								if(mouseX >= _children[j].activity.xCoord && 
 								   mouseX <= (_children[j].activity.xCoord + _children[j]._width) &&