diff --git a/src/servers/app/server/RootLayer.cpp b/src/servers/app/server/RootLayer.cpp
index 285a06c2f6..f6e442803d 100644
--- a/src/servers/app/server/RootLayer.cpp
+++ b/src/servers/app/server/RootLayer.cpp
@@ -48,6 +48,7 @@
 #include "FMWList.h"
 #include "DisplayDriver.h"
 #include "ServerProtocol.h"
+#include "Decorator.h"
 
 //#define DEBUG_ROOTLAYER
 
@@ -74,6 +75,8 @@ RootLayer::RootLayer(const char *name, int32 workspaceCount,
 	SetWorkspaceCount(workspaceCount);
 	SetActiveWorkspace(0L);
 
+	fMovingWindow		= false;
+	fResizingWindow		= false;
 	fMouseTarget		= NULL;
 	fDragMessage		= NULL;
 	fScreenShotIndex	= 1;
@@ -881,19 +884,52 @@ void RootLayer::MouseEventHandler(int32 code, BPortLink& msg)
 			msg.Read<int32>(&evt.buttons);
 			msg.Read<int32>(&evt.clicks);
 			
-			// We'll need this so that GetMouse can query for which buttons
-			// are down.
-			fButtons=evt.buttons;
-			
-			// printf("MOUSE DOWN: at (%f, %f)\n", evt.where.x, evt.where.y);
 			WinBorder	*target = WinBorderAt(evt.where);
 			if (target)
 			{
-				target->Window()->Lock();
-				target->MouseDown(evt, true);
-				target->Window()->Unlock();
+				click_type		action;
+				bool			invalidate;
+				bool			sendMessage = true;
+
+				action			= target->TellWhat(evt);
+
+				if (action == DEC_MOVETOBACK)
+					invalidate		= ActiveWorkspace()->MoveToBack(target);
+				else
+					invalidate		= ActiveWorkspace()->MoveToFront(target);
+				
+				if (invalidate)
+				{
+					BRegion		reg(target->fFull);
+					reg.Include(&target->fTopLayer->fFull);
+					invalidate_layer(this, reg);
+
+					if (!(target->Window()->Flags() & B_WILL_ACCEPT_FIRST_CLICK))
+						sendMessage = false;
+				}
+
+				if (action == DEC_DRAG)
+				{
+					fMovingWindow = true;
+				}
+				else if (action == DEC_RESIZE)
+				{
+					fResizingWindow = true;
+				}
+				else
+				{
+					target->Window()->Lock();
+					target->MouseDown(evt, sendMessage);
+					target->Window()->Unlock();
+				}
+
 				fMouseTarget = target;
 			}
+
+			// We'll need this so that GetMouse can query for which buttons
+			// are down.
+			fButtons=evt.buttons;
+
 			break;
 		}
 		case B_MOUSE_UP:
@@ -911,14 +947,18 @@ void RootLayer::MouseEventHandler(int32 code, BPortLink& msg)
 			msg.Read<float>(&evt.where.y);
 			msg.Read<int32>(&evt.modifiers);
 
-			fMouseTarget = NULL;
-			WinBorder	*target = WinBorderAt(evt.where);
-			if (target)
+			// currently mouse up goes to the same window which received mouse down
+			if (fMouseTarget)
 			{
-				target->Window()->Lock();
-				target->MouseUp(evt);
-				target->Window()->Unlock();
+				fMouseTarget->Window()->Lock();
+				fMouseTarget->MouseUp(evt);
+				fMouseTarget->Window()->Unlock();
+				fMouseTarget = NULL;
 			}
+
+			fMovingWindow	= false;
+			fResizingWindow	= false;
+
 			STRACE(("MOUSE UP: at (%f, %f)\n", evt.where.x, evt.where.y));
 
 			break;
@@ -940,13 +980,44 @@ void RootLayer::MouseEventHandler(int32 code, BPortLink& msg)
 
 			GetDisplayDriver()->MoveCursorTo(evt.where.x, evt.where.y);
 
-			WinBorder	*target = WinBorderAt(evt.where);
-			if (target)
+			if (fMouseTarget)
 			{
-				target->Window()->Lock();
-				target->MouseMoved(evt);
-				target->Window()->Unlock();
+				BPoint		pt = evt.where;
+				pt			-= fLastMousePossition;
+
+				if (fMovingWindow)
+				{
+					if(fMouseTarget->fDecorator)
+						fMouseTarget->fDecorator->MoveBy(pt.x, pt.y);
+
+					fMouseTarget->move_layer(pt.x, pt.y);
+				}
+				else if (fResizingWindow)
+				{
+					if(fMouseTarget->fDecorator)
+						fMouseTarget->fDecorator->ResizeBy(pt.x, pt.y);
+
+					fMouseTarget->resize_layer(pt.x, pt.y);
+				}
+				else
+				{
+					fMouseTarget->Window()->Lock();
+					fMouseTarget->MouseMoved(evt);
+					fMouseTarget->Window()->Unlock();
+				}
 			}
+			else
+			{
+				WinBorder	*target = WinBorderAt(evt.where);
+				if (target)
+				{
+					target->Window()->Lock();
+					target->MouseMoved(evt);
+					target->Window()->Unlock();
+				}
+			}
+
+			fLastMousePossition = evt.where;
 
 			break;
 		}
diff --git a/src/servers/app/server/RootLayer.h b/src/servers/app/server/RootLayer.h
index afe3d55f40..fe012bc514 100644
--- a/src/servers/app/server/RootLayer.h
+++ b/src/servers/app/server/RootLayer.h
@@ -155,6 +155,9 @@ friend class Desktop;
 	int32 fScreenYResolution;
 	uint32 fColorSpace;
 	int32 fButtons;
+	BPoint			fLastMousePossition;
+	bool			fMovingWindow;
+	bool			fResizingWindow;
 	
 	int32			fActiveWksIndex;
 	int32			fWsCount;
diff --git a/src/servers/app/server/WinBorder.cpp b/src/servers/app/server/WinBorder.cpp
index 8450aadb8b..d41e8d9966 100644
--- a/src/servers/app/server/WinBorder.cpp
+++ b/src/servers/app/server/WinBorder.cpp
@@ -93,8 +93,6 @@ WinBorder::WinBorder(const BRect &r, const char *name, const int32 look, const i
 	fAdFlags		= fAdFlags | B_LAYER_CHILDREN_DEPENDANT;
 	fFlags			= B_WILL_DRAW | B_FULL_UPDATE_ON_RESIZE;
 
-	fIsMoving		= false;
-	fIsResizing		= false;
 	fIsClosing		= false;
 	fIsMinimizing	= false;
 	fIsZooming		= false;
@@ -144,6 +142,16 @@ void WinBorder::RebuildFullRegion(void)
 		fDecorator->GetFootprint(&fFull);
 }
 
+click_type WinBorder::TellWhat(PointerEvent& evt) const
+{
+	if (fTopLayer->fFullVisible.Contains(evt.where))
+		return DEC_NONE;
+	else if (fDecorator)
+		return fDecorator->Clicked(evt.where, evt.buttons, evt.modifiers);
+	else
+		return DEC_NONE;
+}
+
 /*!
 	\brief Handles B_MOUSE_DOWN events and takes appropriate actions
 	\param evt PointerEvent object containing the info from the last B_MOUSE_DOWN message
@@ -197,20 +205,10 @@ void WinBorder::MouseDown(PointerEvent& evt, bool sendMessage)
 				break;
 			}
 			case DEC_RESIZE:
-			{
-				fIsResizing = true;
-				STRACE_CLICK(("===> DEC_RESIZE\n"));
-				break;
-			}
 			case DEC_DRAG:
-			{
-				fIsMoving = true;
-				STRACE_CLICK(("===> DEC_DRAG\n"));
-				break;
-			}
 			case DEC_MOVETOBACK:
 			{
-				GetRootLayer()->ActiveWorkspace()->MoveToBack(this);
+				// do nothing - RootLayer takes care of that
 				break;
 			}
 			case DEC_NONE:
@@ -254,43 +252,25 @@ void WinBorder::MouseMoved(PointerEvent& evt)
 	if (!(Window()->IsLocked()))
 		debugger("you must lock the attached ServerWindow object\n\t before calling WinBorder::MouseMoved()\n");
 
-	if (fIsMoving)
-	{
-		STRACE_CLICK(("===> Moving...\n"));
-		BPoint		offset = evt.where;
-		offset		-= fLastMousePosition;
-		MoveBy(offset.x, offset.y);
-	}
-	else
-	if (fIsResizing)
-	{
-		STRACE_CLICK(("===> Resizing...\n"));
-		BPoint		offset = evt.where;
-		offset		-= fLastMousePosition;
-		ResizeBy(offset.x, offset.y);
-	}
-	else
-	{
-		// Do a click test only if we have to, which would be now. :)
-		click_type location=fDecorator->Clicked(evt.where, evt.buttons,fKeyModifiers);
+	// Do a click test only if we have to, which would be now. :)
+	click_type location=fDecorator->Clicked(evt.where, evt.buttons,fKeyModifiers);
 		
-		if (fIsZooming && location!=DEC_ZOOM)
-		{
-			fDecorator->SetZoom(false);
-			fDecorator->DrawZoom();
-		}
-		else
-		if (fIsClosing && location!=DEC_CLOSE)
-		{
-			fDecorator->SetClose(false);
-			fDecorator->DrawClose();
-		}
-		else
-		if(fIsMinimizing && location!=DEC_MINIMIZE)
-		{
-			fDecorator->SetMinimize(false);
-			fDecorator->DrawMinimize();
-		}
+	if (fIsZooming && location!=DEC_ZOOM)
+	{
+		fDecorator->SetZoom(false);
+		fDecorator->DrawZoom();
+	}
+	else
+	if (fIsClosing && location!=DEC_CLOSE)
+	{
+		fDecorator->SetClose(false);
+		fDecorator->DrawClose();
+	}
+	else
+	if(fIsMinimizing && location!=DEC_MINIMIZE)
+	{
+		fDecorator->SetMinimize(false);
+		fDecorator->DrawMinimize();
 	}
 
 	if (fTopLayer->fFullVisible.Contains(evt.where))
@@ -324,18 +304,6 @@ void WinBorder::MouseUp(PointerEvent& evt)
 	// find out where user clicked in Decorator
 	action = fDecorator->Clicked(evt.where, evt.buttons, evt.modifiers);
 	
-	if(fIsMoving)
-	{
-		fIsMoving	= false;
-		return;
-	}
-	
-	if (fIsResizing)
-	{
-		fIsResizing	= false;
-		return;
-	}
-	
 	if (fIsZooming)
 	{
 		fIsZooming	= false;
diff --git a/src/servers/app/server/WinBorder.h b/src/servers/app/server/WinBorder.h
index 24234afdf2..403791b1d3 100644
--- a/src/servers/app/server/WinBorder.h
+++ b/src/servers/app/server/WinBorder.h
@@ -32,6 +32,7 @@
 #include <String.h>
 #include "Layer.h"
 #include "FMWList.h"
+#include "Decorator.h"
 
 // these are used by window manager to properly place window.
 enum {
@@ -80,6 +81,7 @@ public:
 
 	void SetSizeLimits(float minwidth, float maxwidth, float minheight, float maxheight);
 
+	click_type TellWhat(PointerEvent& evt) const;
 	void MouseDown(PointerEvent& evt, bool sendMessage);
 	void MouseMoved(PointerEvent& evt);
 	void MouseUp(PointerEvent& evt);
@@ -114,8 +116,6 @@ protected:
 	int32 fKeyModifiers;
 	BPoint fLastMousePosition;
 
-	bool fIsMoving;
-	bool fIsResizing;
 	bool fIsClosing;
 	bool fIsMinimizing;
 	bool fIsZooming;