diff --git a/indra/newview/llfloaterimcontainer.cpp b/indra/newview/llfloaterimcontainer.cpp
index f26cb477ee..aa3bec878a 100755
--- a/indra/newview/llfloaterimcontainer.cpp
+++ b/indra/newview/llfloaterimcontainer.cpp
@@ -790,8 +790,8 @@ void LLFloaterIMContainer::collapseConversationsPane(bool collapse, bool save_is
 		mConversationsPane->setTargetDim(gSavedPerAccountSettings.getS32("ConversationsListPaneWidth"));
 	}
 
-	S32 delta_width =
-			gSavedPerAccountSettings.getS32("ConversationsListPaneWidth") - mConversationsPane->getMinDim();
+	S32 delta_width = gSavedPerAccountSettings.getS32("ConversationsListPaneWidth") 
+		- mConversationsPane->getMinDim() - mConversationsStack->getPanelSpacing() + 1;
 
 	reshapeFloaterAndSetResizeLimits(collapse, delta_width);
 
diff --git a/indra/newview/skins/default/xui/en/floater_im_container.xml b/indra/newview/skins/default/xui/en/floater_im_container.xml
index 1215efb7f9..b639d534c3 100755
--- a/indra/newview/skins/default/xui/en/floater_im_container.xml
+++ b/indra/newview/skins/default/xui/en/floater_im_container.xml
@@ -41,7 +41,7 @@
          auto_resize="false"
          user_resize="true"        
          name="conversations_layout_panel"
-         min_dim="38"
+         min_dim="43"
          expanded_min_dim="136">
             <layout_stack
              animate="false" 
@@ -100,7 +100,7 @@
                 <layout_panel
                  auto_resize="false"
                  name="conversations_pane_buttons_collapsed"
-                 width="31">
+                 width="36">
                     <button
                      follows="right|top"
                      height="25"
@@ -110,10 +110,10 @@
                      image_unselected="Toolbar_Middle_Off"
                      layout="topleft"
                      top="1"
-                     left="0"
+                     left="5"
                      name="expand_collapse_btn"
                      tool_tip="Collapse/Expand this list"
-                     width="31" />
+                     width="34" />
                 </layout_panel>
             </layout_stack>
             <panel
diff --git a/indra/newview/skins/default/xui/en/panel_conversation_list_item.xml b/indra/newview/skins/default/xui/en/panel_conversation_list_item.xml
index a054e71e34..4372cf69bf 100755
--- a/indra/newview/skins/default/xui/en/panel_conversation_list_item.xml
+++ b/indra/newview/skins/default/xui/en/panel_conversation_list_item.xml
@@ -11,7 +11,7 @@
      height="20"
      default_icon_name="Generic_Person"
      layout="topleft"
-     left="5"
+     left="9"
      top="2"
      visible="false"
      width="20" />
@@ -20,7 +20,7 @@
      height="20"
      default_icon_name="Generic_Group"
      layout="topleft"
-     left="5"
+     left="9"
      top="2"
      visible="false"
      width="20" />
@@ -29,9 +29,9 @@
      height="20"
      image_name="Nearby_chat_icon"
      layout="topleft"
-     left="5"
+     left="10"
      name="nearby_chat_icon"
-     top="2"
+     top="3"
      visible="false"
      width="20"/>
     <layout_stack