diff --git a/indra/llui/llfolderviewitem.h b/indra/llui/llfolderviewitem.h
index 7cbe70fb8b..8bb73bcf5d 100755
--- a/indra/llui/llfolderviewitem.h
+++ b/indra/llui/llfolderviewitem.h
@@ -260,7 +260,7 @@ public:
 
 	//	virtual void handleDropped();
 	virtual void draw();
-	void drawOpenFolderArrow(const Params& default_params, const LLUIColor& fg_color);
+	virtual void drawOpenFolderArrow(const Params& default_params, const LLUIColor& fg_color);
     void drawHighlight(const BOOL showContent, const BOOL hasKeyboardFocus, const LLUIColor &bgColor, const LLUIColor &outlineColor, const LLUIColor &mouseOverColor);
     void drawLabel(const LLFontGL * font, const F32 x, const F32 y, const LLColor4& color, F32 &right_x);
 	virtual BOOL handleDragAndDrop(S32 x, S32 y, MASK mask, BOOL drop,
diff --git a/indra/newview/llconversationview.cpp b/indra/newview/llconversationview.cpp
index de0c65e24f..2d3a008bf4 100755
--- a/indra/newview/llconversationview.cpp
+++ b/indra/newview/llconversationview.cpp
@@ -133,6 +133,7 @@ BOOL LLConversationViewSession::postBuild()
 			LLGroupIconCtrl* icon = mItemPanel->getChild<LLGroupIconCtrl>("group_icon");
 			icon->setVisible(true);
 			mSpeakingIndicator->setSpeakerId(gAgentID, vmi->getUUID(), true);
+			break;
 		}
 		case LLConversationItem::CONV_SESSION_GROUP:
 		{
@@ -343,6 +344,15 @@ void LLConversationViewSession::onCurrentVoiceSessionChanged(const LLUUID& sessi
 	}
 }
 
+void LLConversationViewSession::drawOpenFolderArrow(const LLFolderViewItem::Params& default_params, const LLUIColor& fg_color)
+{
+	LLConversationItem * itemp = dynamic_cast<LLConversationItem*>(getViewModelItem());
+	if (itemp && itemp->getType() != LLConversationItem::CONV_SESSION_1_ON_1)
+	{
+		LLFolderViewFolder::drawOpenFolderArrow(default_params, fg_color);
+	}
+}
+
 //
 // Implementation of conversations list participant (avatar) widgets
 //
diff --git a/indra/newview/llconversationview.h b/indra/newview/llconversationview.h
index 4d77a4ade0..aeca747260 100755
--- a/indra/newview/llconversationview.h
+++ b/indra/newview/llconversationview.h
@@ -71,6 +71,8 @@ public:
 
 	/*virtual*/	bool isMinimized() { return mMinimizedMode; }
 
+	/*virtual*/ void drawOpenFolderArrow(const LLFolderViewItem::Params& default_params, const LLUIColor& fg_color);
+
 	void toggleMinimizedMode(bool is_minimized);
 
 	void setVisibleIfDetached(BOOL visible);
diff --git a/indra/newview/llimfloatercontainer.cpp b/indra/newview/llimfloatercontainer.cpp
index 52deae445b..af43b1ac38 100644
--- a/indra/newview/llimfloatercontainer.cpp
+++ b/indra/newview/llimfloatercontainer.cpp
@@ -424,15 +424,21 @@ bool LLIMFloaterContainer::onConversationModelEvent(const LLSD& event)
 			LLConversationItemSession* session_model = dynamic_cast<LLConversationItemSession*>(mConversationsItems[session_id]);
 			if (session_model)
 			{
-				LLConversationItemParticipant* participant_model = session_model->findParticipant(participant_id);
-				if (participant_model)
+				const LLUUID& uuid = session_model->getUUID();
+
+				LLIMModel::LLIMSession * im_sessionp = LLIMModel::getInstance()->findIMSession(uuid);
+
+				if (uuid.isNull() || im_sessionp && !im_sessionp->isP2PSessionType())
 				{
-					participant_view = createConversationViewParticipant(participant_model);
-					participant_view->addToFolder(session_view);
-					participant_view->setVisible(TRUE);
+					LLConversationItemParticipant* participant_model = session_model->findParticipant(participant_id);
+					if (participant_model)
+					{
+						participant_view = createConversationViewParticipant(participant_model);
+						participant_view->addToFolder(session_view);
+						participant_view->setVisible(TRUE);
+					}
 				}
 			}
-
 		}
 	}
 	else if (type == "update_participant")
@@ -1175,17 +1181,22 @@ void LLIMFloaterContainer::addConversationListItem(const LLUUID& uuid, bool isWi
 	// Add a new conversation widget to the root folder of the folder view
 	widget->addToFolder(mConversationsRoot);
 	widget->requestArrange();
-	
+
+	LLIMModel::LLIMSession * im_sessionp = LLIMModel::getInstance()->findIMSession(uuid);
+
 	// Create the participants widgets now
 	// Note: usually, we do not get an updated avatar list at that point
-	LLFolderViewModelItemCommon::child_list_t::const_iterator current_participant_model = item->getChildrenBegin();
-	LLFolderViewModelItemCommon::child_list_t::const_iterator end_participant_model = item->getChildrenEnd();
-	while (current_participant_model != end_participant_model)
+	if (uuid.isNull() || im_sessionp && !im_sessionp->isP2PSessionType())
 	{
-		LLConversationItem* participant_model = dynamic_cast<LLConversationItem*>(*current_participant_model);
-		LLConversationViewParticipant* participant_view = createConversationViewParticipant(participant_model);
-		participant_view->addToFolder(widget);
-		current_participant_model++;
+		LLFolderViewModelItemCommon::child_list_t::const_iterator current_participant_model = item->getChildrenBegin();
+		LLFolderViewModelItemCommon::child_list_t::const_iterator end_participant_model = item->getChildrenEnd();
+		while (current_participant_model != end_participant_model)
+		{
+			LLConversationItem* participant_model = dynamic_cast<LLConversationItem*>(*current_participant_model);
+			LLConversationViewParticipant* participant_view = createConversationViewParticipant(participant_model);
+			participant_view->addToFolder(widget);
+			current_participant_model++;
+		}
 	}
 
 	// set the widget to minimized mode if conversations pane is collapsed
diff --git a/indra/newview/skins/default/xui/en/panel_preferences_chat.xml b/indra/newview/skins/default/xui/en/panel_preferences_chat.xml
index c76a3cfaaf..28434a670e 100644
--- a/indra/newview/skins/default/xui/en/panel_preferences_chat.xml
+++ b/indra/newview/skins/default/xui/en/panel_preferences_chat.xml
@@ -9,151 +9,364 @@
  name="chat"
  top="1"
  width="517">
-  <text
-   follows="left|top"
-   layout="topleft"
-   left="30"
-   height="12"
-   name="font_size"
-   width="120"
-   top="10">
-    Font size:
-  </text>
-  <radio_group
-     height="30"
-     layout="topleft"
-     left="40"
-	 control_name="ChatFontSize"
-     name="chat_font_size"
-     top_pad="0"
-     width="440">
-        <radio_item
-         height="16"
-         label="Small"
-         layout="topleft"
-         left="0"
-         name="radio"
-         value="0"
-         top="10"
-         width="125" />
-        <radio_item
-         height="16"
-         label="Medium"
-         layout="topleft"
-         left_delta="145"
-         name="radio2"
-         value="1"
-         top_delta="0"
-         width="125" />
-        <radio_item
-         height="16"
-         label="Large"
-         layout="topleft"
-         left_delta="170"
-         name="radio3"
-         value="2"
-         top_delta="0"
-         width="125" />
-    </radio_group>
-    
+
+  <panel
+  border="false"
+  follows="left|top"
+  height="90"
+  layout="topleft"
+  top="10"
+  left="13"
+  width="517">
+
     <check_box
-     control_name="PlayTypingAnim"
-     height="16"
-     initial_value="true"
-     label="Play typing animation when chatting"
-     layout="topleft"
-     left="30"
-     name="play_typing_animation"
-     top_pad="10"
-     width="400" />
+       control_name="PlayTypingAnim"
+       height="16"
+       initial_value="true"
+       label="Play typing animation when chatting"
+       layout="topleft"
+       top="0"
+       name="play_typing_animation"
+       width="330" />
     <check_box
      enabled="false"
      height="16"
      label="Email me IMs when I'm offline"
      layout="topleft"
-     left_delta="0"
      name="send_im_to_email"
-     top_pad="5"
-     width="400" />
+     top_pad="6"
+     width="330" />
+    <check_box
+    height="16"
+    label="Keep a conversation log and transcripts"
+    layout="topleft"
+    name="keep_convo_log_and_transcripts"
+    top_pad="6"
+    width="330" />
     <check_box
      control_name="UseChatBubbles"
      follows="left|top"
      height="16"
      label="Bubble Chat"
      layout="topleft"
-     left_delta="0"
-     top_pad="5"
+     top_pad="6"
      name="bubble_text_chat"
-     width="150" />     
+     width="330" />
     <text
-     name="disable_toast_label"
      follows="left|top"
      layout="topleft"
-     top_pad="20" 
-     left="30" 
-     height="10"
-     width="400">
-      Enable incoming chat popups:
-      </text>
+     left="345"
+     height="12"
+     name="font_size"
+     width="120"
+     top="0">
+      Font size:
+    </text>
+    <radio_group
+       height="90"
+       layout="topleft"
+       left="352"
+     control_name="ChatFontSize"
+       name="chat_font_size"
+       top_pad="0"
+       width="50">
+      <radio_item
+       height="16"
+       label="Small"
+       layout="topleft"
+       name="radio"
+       value="0"
+       top="10"
+       width="125" />
+      <radio_item
+       height="16"
+       label="Medium"
+       layout="topleft"
+       name="radio2"
+       value="1"
+       top_pad="6"
+       width="125" />
+      <radio_item
+       height="16"
+       label="Large"
+       layout="topleft"
+       name="radio3"
+       value="2"
+       top_pad="6"
+       width="125" />
+    </radio_group>    
+    
+  </panel>  
+
+  <panel
+  border="false"
+  follows="left|top"
+  height="193"
+  layout="topleft"
+  left="13"
+  width="517">
+
+    <text
+     follows="left|top"
+     layout="topleft"
+     height="12"
+     name="notifications"
+     left="0"
+     width="120">
+      Notifications:
+    </text>
+    <text
+     follows="left|top"
+     layout="topleft"
+     height="12"
+     name="friend_ims"
+     width="145"
+     left="0"
+     top_pad="15"
+     >
+      Friend IMs:
+    </text>
+    <combo_box
+             control_name="NotificationFriendIMOptions"
+             height="23"
+             layout="topleft"
+             left_pad="5"
+             top_delta="-6"
+             name="FriendIMOptions"
+             width="223">
+      <combo_box.item
+       label="Pop up the message"
+       name="0"
+       value="0"/>
+      <combo_box.item
+       label="Flash toolbar button"
+       name="1"
+       value="1"/>
+      <combo_box.item
+       label="None"
+       name="2"
+       value="2"/>
+    </combo_box>
+    <text
+        follows="left|top"
+        layout="topleft"
+        height="12"
+        name="non_friend_ims"
+        width="145"
+        left="0"
+     top_pad="15"
+     >
+      Non-friend IMs:
+    </text>
+    <combo_box
+             control_name="NotificationNonFriendIMOptions"
+             height="23"
+             layout="topleft"
+             left_pad="5"
+             top_delta="-6"
+             name="NonFriendIMOptions"
+             width="223">
+      <combo_box.item
+       label="Pop up the message"
+       name="0"
+       value="0"/>
+      <combo_box.item
+       label="Flash toolbar button"
+       name="1"
+       value="1"/>
+      <combo_box.item
+       label="None"
+       name="2"
+       value="2"/>
+    </combo_box>
+    <text
+          follows="left|top"
+          layout="topleft"
+          left="0"
+          height="13"
+          name="conference_ims"
+          width="145"
+          top_pad="14"
+     >
+      Conference IMs:
+    </text>
+    <combo_box
+             control_name="NotificationConferenceIMOptions"
+             height="23"
+             layout="topleft"
+             left_pad="5"
+             top_delta="-6"
+             name="ConferenceIMOptions"
+             width="223">
+      <combo_box.item
+       label="Pop up the message"
+       name="0"
+       value="0"/>
+      <combo_box.item
+       label="Flash toolbar button"
+       name="1"
+       value="1"/>
+      <combo_box.item
+       label="None"
+       name="2"
+       value="2"/>
+    </combo_box>
+    <text
+          follows="left|top"
+          layout="topleft"
+          left="0"
+          height="13"
+          name="group_chat"
+          width="145"
+          top_pad="14"
+     >
+      Group chat:
+    </text>
+    <combo_box
+             control_name="NotificationGroupChatOptions"
+             height="23"
+             layout="topleft"
+             left_pad="5"
+             top_delta="-6"
+             name="GroupChatOptions"
+             width="223">
+      <combo_box.item
+       label="Pop up the message"
+       name="0"
+       value="0"/>
+      <combo_box.item
+       label="Flash toolbar button"
+       name="1"
+       value="1"/>
+      <combo_box.item
+       label="None"
+       name="2"
+       value="2"/>
+    </combo_box>
+    <text
+            follows="left|top"
+            layout="topleft"
+            left="0"
+            height="12"
+            name="nearby_chat"
+            width="145"
+            top_pad="14"
+     >
+      Nearby chat:
+    </text>
+    <combo_box
+             control_name="NotificationNearbyChatOptions"
+             height="23"
+             layout="topleft"
+             left_pad="5"
+             top_delta="-6"
+             name="NearbyChatOptions"
+             width="223">
+      <combo_box.item
+       label="Pop up the message"
+       name="0"
+       value="0"/>
+      <combo_box.item
+       label="Flash toolbar button"
+       name="1"
+       value="1"/>
+      <combo_box.item
+       label="None"
+       name="2"
+       value="2"/>
+    </combo_box>
+    <text
+            follows="left|top"
+            layout="topleft"
+            left="0"
+            height="12"
+            name="notifications_alert"
+            width="350"
+            top_pad="11"
+            visible="true"
+            text_color="DrYellow"
+     >
+      To temporarily stop all notifications, use Me > Status > Busy.
+    </text>
+
+  </panel>
+
+  <panel
+  border="false"
+  follows="left|top"
+  height="1"
+  layout="topleft"
+  left="13"
+  width="517">
+
+    <text
+      follows="left|top"
+      layout="topleft"
+      left="0"
+      name="play_sound"
+      width="100"
+      top_pad="13"
+      visible="true">
+      Play sound:
+    </text>
     <check_box
-     control_name="EnableGroupChatPopups"
-     name="EnableGroupChatPopups"
-     label="Group Chats" 
-     layout="topleft"
-     top_pad="5" 
-     left_delta="10" 
-     height="20"
-     tool_tip="Check to see popups when a Group Chat message arrives"
-     width="400" />
+         control_name="NewConversation"
+         height="16"
+         initial_value="true"
+         label="New conversation"
+         layout="topleft"
+         left_pad="15"
+         top_pad="-10"
+         name="new_conversation"
+         width="150" />
     <check_box
-     control_name="EnableIMChatPopups"
-     name="EnableIMChatPopups"
-     label="IM Chats" 
-     layout="topleft"
-     top_pad="5"
-     height="16"
-     tool_tip="Check to see popups when an instant message arrives"
-     width="400" />
-    <spinner
-     control_name="NearbyToastLifeTime"
-     decimal_digits="0"
-     follows="left|top"
-     height="23"
-     increment="1"
-     initial_value="23"
-     label="Nearby chat toasts life time:"
-     label_width="285"
-     layout="topleft"
-     left="45"
-     max_val="60"
-     min_val="1"
-     name="nearby_toasts_lifetime"
-     top_pad="10"
-     width="325" />
-    <spinner
-     control_name="NearbyToastFadingTime"
-     decimal_digits="0"
-     follows="left|top"
-     height="23"
-     increment="1"
-     initial_value="3"
-     label="Nearby chat toasts fading time:"
-     label_width="285"
-     layout="topleft"
-     left_delta="0"
-     max_val="60"
-     min_val="0"
-     name="nearby_toasts_fadingtime"
-     top_pad="3"
-     width="325" />
+         control_name="IncomingVoiceCall"
+         height="16"
+         initial_value="true"
+         label="Incoming voice call"
+         layout="topleft"
+         top_pad="6"
+         name="incoming_voice_call"
+         width="150" />
+    <check_box
+         control_name="GroupChatMessages"
+         height="16"
+         initial_value="false"
+         label="Group chat messages"
+         layout="topleft"
+         top_pad="6"
+         name="group_chat_messages"
+         width="150" />
+    <check_box
+         control_name="TeleportOffer"
+         height="16"
+         initial_value="true"
+         label="Teleport offer"
+         layout="topleft"
+         left_pad="35"
+         top_pad="-59"
+         name="teleport_offer"
+         width="150" />
+    <check_box
+         control_name="InventoryOffer"
+         height="16"
+         initial_value="false"
+         label="Inventory offer"
+         layout="topleft"
+         top_pad="6"
+         name="inventory_offer"
+         width="150" />
+
+  </panel>
+    
   <button
    follows="left|top"
    height="23"
    label="Translation..."
    layout="topleft"
-   left="30"
+   left="9"
    name="ok_btn"
-   top="-50"
+   top="-29"
    width="170">
    <button.commit_callback
     function="Pref.TranslationSettings" />