diff --git a/indra/newview/llfolderview.cpp b/indra/newview/llfolderview.cpp
index 6f638b695..f7ba56bf8 100644
--- a/indra/newview/llfolderview.cpp
+++ b/indra/newview/llfolderview.cpp
@@ -957,7 +957,7 @@ void LLFolderView::draw()
 	else if (mShowEmptyMessage)
 	{
 		static LLCachedControl<LLColor4> sSearchStatusColor(gColors, "InventorySearchStatusColor", LLColor4::white );
-		if (LLInventoryModelBackgroundFetch::instance().backgroundFetchActive() || mCompletedFilterGeneration < mFilter->getMinRequiredGeneration())
+		if (LLInventoryModelBackgroundFetch::instance().folderFetchActive() || mCompletedFilterGeneration < mFilter->getMinRequiredGeneration())
 		{
 			mStatusText = std::string("Searching..."); // *TODO:translate
 		}
@@ -2003,7 +2003,7 @@ void LLFolderView::scrollToShowSelection()
 	// However we allow scrolling for folder views with mAutoSelectOverride
 	// (used in Places SP) as an exception because the selection in them
 	// is not reset during items filtering. See STORM-133.
-	if ( (!LLInventoryModelBackgroundFetch::instance().backgroundFetchActive() || mAutoSelectOverride)
+	if ( (!LLInventoryModelBackgroundFetch::instance().folderFetchActive() || mAutoSelectOverride)
 			&& mSelectedItems.size() )
 	{
 		mNeedsScroll = TRUE;
diff --git a/indra/newview/llfolderviewitem.cpp b/indra/newview/llfolderviewitem.cpp
index ae48372e3..3c59b36fe 100644
--- a/indra/newview/llfolderviewitem.cpp
+++ b/indra/newview/llfolderviewitem.cpp
@@ -1049,7 +1049,7 @@ void LLFolderViewItem::draw()
 	}
 	if ((mIsLoading
 		&&	mTimeSinceRequestStart.getElapsedTimeF32() >= gSavedSettings.getF32("FolderLoadingMessageWaitTime"))
-			||	(LLInventoryModelBackgroundFetch::instance().backgroundFetchActive()
+			||	(LLInventoryModelBackgroundFetch::instance().folderFetchActive()
 				&&	root_is_loading
 				&&	mShowLoadStatus))
 	{
diff --git a/indra/newview/llinventorybridge.cpp b/indra/newview/llinventorybridge.cpp
index d0ffee5c9..126f38464 100644
--- a/indra/newview/llinventorybridge.cpp
+++ b/indra/newview/llinventorybridge.cpp
@@ -200,6 +200,42 @@ bool isMarketplaceSendAction(const std::string& action)
 	return ("send_to_marketplace" == action);
 }
 
+// Used by LLFolderBridge as callback for directory fetching recursion
+class LLRightClickInventoryFetchDescendentsObserver : public LLInventoryFetchDescendentsObserver
+{
+public:
+	LLRightClickInventoryFetchDescendentsObserver(const uuid_vec_t& ids) : LLInventoryFetchDescendentsObserver(ids) {}
+	~LLRightClickInventoryFetchDescendentsObserver() {}
+	virtual void execute(bool clear_observer = false);
+	virtual void done()
+	{
+		execute(true);
+	}
+};
+
+// Used by LLFolderBridge as callback for directory content items fetching
+class LLRightClickInventoryFetchObserver : public LLInventoryFetchItemsObserver
+{
+public:
+	LLRightClickInventoryFetchObserver(const uuid_vec_t& ids) : LLInventoryFetchItemsObserver(ids) { };
+	~LLRightClickInventoryFetchObserver() {}
+	void execute(bool clear_observer = false)
+	{
+		if (clear_observer)
+		{
+			dec_busy_count();
+			gInventory.removeObserver(this);
+			delete this;
+		}
+		// we've downloaded all the items, so repaint the dialog
+		LLFolderBridge::staticFolderOptionsMenu();
+	}
+	virtual void done()
+	{
+		execute(true);
+	}
+};
+
 // <edit>
 void gotImageForSaveItemAs(BOOL success, 
 											LLViewerTexture *src_vi,
@@ -1050,7 +1086,7 @@ void LLInvFVBridge::changeItemParent(LLInventoryModel* model,
 									 const LLUUID& new_parent_id,
 									 BOOL restamp)
 {
-	change_item_parent(model, item, new_parent_id, restamp);
+	model->changeItemParent(item, new_parent_id, restamp);
 }
 
 // static
@@ -1059,7 +1095,7 @@ void LLInvFVBridge::changeCategoryParent(LLInventoryModel* model,
 										 const LLUUID& new_parent_id,
 										 BOOL restamp)
 {
-	change_category_parent(model, cat, new_parent_id, restamp);
+	model->changeCategoryParent(cat, new_parent_id, restamp);
 }
 
 LLInvFVBridge* LLInvFVBridge::createBridge(LLAssetType::EType asset_type,
@@ -1464,7 +1500,8 @@ void LLItemBridge::selectItem()
 		// <edit>
 		if(!(gInventory.isObjectDescendentOf(mUUID, gSystemFolderRoot)))
 		// </edit>
-		item->fetchFromServer();
+		//item->fetchFromServer();
+		LLInventoryModelBackgroundFetch::instance().start(item->getUUID(), false);
 	}
 }
 
@@ -2498,9 +2535,16 @@ BOOL move_inv_category_world_to_agent(const LLUUID& object_id,
 	LLInventoryObject::object_list_t::iterator end = inventory_objects.end();
 	for ( ; it != end; ++it)
 	{
+		LLInventoryItem* item = dynamic_cast<LLInventoryItem*>(it->get());
+		if (!item)
+		{
+			llwarns << "Invalid inventory item for drop" << llendl;
+			continue;
+		}
+
 		// coming from a task. Need to figure out if the person can
 		// move/copy this item.
-		LLPermissions perm(((LLInventoryItem*)((LLInventoryObject*)(*it)))->getPermissions());
+		LLPermissions perm(item->getPermissions());
 		if((perm.allowCopyBy(gAgent.getID(), gAgent.getGroupID())
 			&& perm.allowTransferTo(gAgent.getID())))
 //			|| gAgent.isGodlike())
@@ -2553,121 +2597,114 @@ BOOL move_inv_category_world_to_agent(const LLUUID& object_id,
 	return accept;
 }
 
-//Used by LLFolderBridge as callback for directory recursion.
-class LLRightClickInventoryFetchObserver : public LLInventoryFetchItemsObserver
+void LLRightClickInventoryFetchDescendentsObserver::execute(bool clear_observer)
 {
-public:
-	LLRightClickInventoryFetchObserver(const uuid_vec_t& ids) :
-		LLInventoryFetchItemsObserver(ids),
-		mCopyItems(false)
-	{ };
-	LLRightClickInventoryFetchObserver(const uuid_vec_t& ids,
-									   const LLUUID& cat_id, 
-									   bool copy_items) :
-		LLInventoryFetchItemsObserver(ids),
-		mCatID(cat_id),
-		mCopyItems(copy_items)
-		{ };
-	virtual void done()
-	{
-		// we've downloaded all the items, so repaint the dialog
-		LLFolderBridge::staticFolderOptionsMenu();
-
-		gInventory.removeObserver(this);
-		delete this;
-	}
-
-protected:
-	LLUUID mCatID;
-	bool mCopyItems;
-
-};
-
-//Used by LLFolderBridge as callback for directory recursion.
-class LLRightClickInventoryFetchDescendentsObserver : public LLInventoryFetchDescendentsObserver
-{
-public:
-	LLRightClickInventoryFetchDescendentsObserver(const uuid_vec_t& ids,
-												  bool copy_items) : 
-		LLInventoryFetchDescendentsObserver(ids),
-		mCopyItems(copy_items) 
-	{}
-	~LLRightClickInventoryFetchDescendentsObserver() {}
-	virtual void done();
-protected:
-	bool mCopyItems;
-};
-
-void LLRightClickInventoryFetchDescendentsObserver::done()
-{
-	// Avoid passing a NULL-ref as mCompleteFolders.front() down to
-	// gInventory.collectDescendents()
+	// Bail out immediately if no descendents
 	if( mComplete.empty() )
 	{
 		llwarns << "LLRightClickInventoryFetchDescendentsObserver::done with empty mCompleteFolders" << llendl;
+		if (clear_observer)
+		{
 		dec_busy_count();
 		gInventory.removeObserver(this);
 		delete this;
+		}
 		return;
 	}
 
-	// What we do here is get the complete information on the items in
-	// the library, and set up an observer that will wait for that to
-	// happen.
-	LLInventoryModel::cat_array_t cat_array;
-	LLInventoryModel::item_array_t item_array;
-	gInventory.collectDescendents(mComplete.front(),
-								  cat_array,
-								  item_array,
-								  LLInventoryModel::EXCLUDE_TRASH);
-	S32 count = item_array.count();
-#if 0 // HACK/TODO: Why?
-	// This early causes a giant menu to get produced, and doesn't seem to be needed.
-	if(!count)
+	// Copy the list of complete fetched folders while "this" is still valid
+	uuid_vec_t completed_folder = mComplete;
+	
+	// Clean up, and remove this as an observer now since recursive calls
+	// could notify observers and throw us into an infinite loop.
+	if (clear_observer)
 	{
-		llwarns << "Nothing fetched in category " << mComplete.front()
-				<< llendl;
 		dec_busy_count();
 		gInventory.removeObserver(this);
 		delete this;
-		return;
 	}
-#endif
 
-	uuid_vec_t ids;
-	for(S32 i = 0; i < count; ++i)
+	for (uuid_vec_t::iterator current_folder = completed_folder.begin(); current_folder != completed_folder.end(); ++current_folder)
 	{
-		ids.push_back(item_array.get(i)->getUUID());
+		// Get the information on the fetched folder items and subfolders and fetch those 
+		LLInventoryModel::cat_array_t* cat_array;
+		LLInventoryModel::item_array_t* item_array;
+		gInventory.getDirectDescendentsOf(*current_folder, cat_array, item_array);
+
+		S32 item_count = item_array->count();
+		S32 cat_count = cat_array->count();
+	
+		// Move to next if current folder empty
+		if ((item_count == 0) && (cat_count == 0))
+	{
+			continue;
 	}
 
-	LLRightClickInventoryFetchObserver* outfit = new LLRightClickInventoryFetchObserver(ids, mComplete.front(), mCopyItems);
+		uuid_vec_t ids;
+		LLRightClickInventoryFetchObserver* outfit = NULL;
+		LLRightClickInventoryFetchDescendentsObserver* categories = NULL;
 
-	// clean up, and remove this as an observer since the call to the
-	// outfit could notify observers and throw us into an infinite
-	// loop.
-	dec_busy_count();
-	gInventory.removeObserver(this);
-	delete this;
+		// Fetch the items
+		if (item_count)
+		{
+			for (S32 i = 0; i < item_count; ++i)
+			{
+				ids.push_back(item_array->get(i)->getUUID());
+			}
+			outfit = new LLRightClickInventoryFetchObserver(ids);
+		}
+		// Fetch the subfolders
+		if (cat_count)
+		{
+			for (S32 i = 0; i < cat_count; ++i)
+			{
+				ids.push_back(cat_array->get(i)->getUUID());
+			}
+			categories = new LLRightClickInventoryFetchDescendentsObserver(ids);
+		}
 
-	// increment busy count and either tell the inventory to check &
-	// call done, or add this object to the inventory for observation.
-	inc_busy_count();
-
-	// do the fetch
+		// Perform the item fetch
+		if (outfit)
+		{
 	outfit->startFetch();
-	outfit->done();				//Not interested in waiting and this will be right 99% of the time.
+			outfit->execute();				// Not interested in waiting and this will be right 99% of the time.
+			delete outfit;
 //Uncomment the following code for laggy Inventory UI.
-/*	if(outfit->isEverythingComplete())
+			/*
+			 if (outfit->isFinished())
 	{
-		// everything is already here - call done.
-		outfit->done();
+	// everything is already here - call done.
+				outfit->execute();
+				delete outfit;
 	}
 	else
 	{
-		// it's all on it's way - add an observer, and the inventory
-		// will call done for us when everything is here.
-		gInventory.addObserver(outfit);
-	}*/
+				// it's all on its way - add an observer, and the inventory
+	// will call done for us when everything is here.
+				inc_busy_count();
+	gInventory.addObserver(outfit);
+			}
+			*/
+		}
+		// Perform the subfolders fetch : this is where we truly recurse down the folder hierarchy
+		if (categories)
+		{
+			categories->startFetch();
+			if (categories->isFinished())
+			{
+				// everything is already here - call done.
+				categories->execute();
+				delete categories;
+			}
+			else
+			{
+				// it's all on its way - add an observer, and the inventory
+				// will call done for us when everything is here.
+				inc_busy_count();
+				gInventory.addObserver(categories);
+			}
+		}
+	}
 }
 
 
@@ -2980,7 +3017,7 @@ bool LLFolderBridge::removeItemResponse(const LLSD& notification, const LLSD& re
 	{
 		// move it to the trash
 		LLPreview::hide(mUUID);
-		remove_category(getInventoryModel(), mUUID);
+		getInventoryModel()->removeCategory(mUUID);
 		return TRUE;
 	}
 	return FALSE;
@@ -3336,16 +3373,19 @@ void LLFolderBridge::buildContextMenu(LLMenuGL& menu, U32 flags)
 		folders.push_back(category->getUUID());
 
 		sSelf = getHandle();
-		LLRightClickInventoryFetchDescendentsObserver* fetch = new LLRightClickInventoryFetchDescendentsObserver(folders, FALSE);
+		LLRightClickInventoryFetchDescendentsObserver* fetch = new LLRightClickInventoryFetchDescendentsObserver(folders);
 		fetch->startFetch();
-		inc_busy_count();
 		if (fetch->isFinished())
 		{
+			// Do not call execute() or done() here as if the folder is here, there's likely no point drilling down 
+			// This saves lots of time as buildContextMenu() is called a lot
+			delete fetch;
 			buildContextMenuFolderOptions(flags);
 		}
 		else
 		{
 			// it's all on its way - add an observer, and the inventory will call done for us when everything is here.
+			inc_busy_count();
 			gInventory.addObserver(fetch);
 		}
 	}
diff --git a/indra/newview/llinventoryfilter.cpp b/indra/newview/llinventoryfilter.cpp
index a5bd75877..828ad5689 100644
--- a/indra/newview/llinventoryfilter.cpp
+++ b/indra/newview/llinventoryfilter.cpp
@@ -795,7 +795,7 @@ const std::string& LLInventoryFilter::getFilterText()
 		filtered_by_all_types = FALSE;
 	}
 
-	if (!LLInventoryModelBackgroundFetch::instance().backgroundFetchActive() 
+	if (!LLInventoryModelBackgroundFetch::instance().folderFetchActive() 
 		&& filtered_by_type 
 		&& !filtered_by_all_types)
 	{
diff --git a/indra/newview/llinventoryfunctions.cpp b/indra/newview/llinventoryfunctions.cpp
index b4724536d..14c2de40f 100644
--- a/indra/newview/llinventoryfunctions.cpp
+++ b/indra/newview/llinventoryfunctions.cpp
@@ -110,97 +110,6 @@ void append_path(const LLUUID& id, std::string& path)
 	path.append(temp);
 }
 
-void change_item_parent(LLInventoryModel* model,
-						LLViewerInventoryItem* item,
-						const LLUUID& new_parent_id,
-						BOOL restamp)
-{
-	// <edit>
-	bool send_parent_update = gInventory.isObjectDescendentOf(item->getUUID(), gInventory.getRootFolderID());
-	// </edit>
-	if(item->getParentUUID() != new_parent_id)
-	{
-		LLInventoryModel::update_list_t update;
-		LLInventoryModel::LLCategoryUpdate old_folder(item->getParentUUID(),-1);
-		update.push_back(old_folder);
-		LLInventoryModel::LLCategoryUpdate new_folder(new_parent_id, 1);
-		update.push_back(new_folder);
-		gInventory.accountForUpdate(update);
-
-		LLPointer<LLViewerInventoryItem> new_item = new LLViewerInventoryItem(item);
-		new_item->setParent(new_parent_id);
-		// <edit>
-		if(send_parent_update)
-		// </edit>
-		new_item->updateParentOnServer(restamp);
-		model->updateItem(new_item);
-		model->notifyObservers();
-	}
-}
-
-void change_category_parent(LLInventoryModel* model,
-	LLViewerInventoryCategory* cat,
-	const LLUUID& new_parent_id,
-	BOOL restamp)
-{
-	if (!model || !cat)
-	{
-		return;
-	}
-
-	// Can't move a folder into a child of itself.
-	if (model->isObjectDescendentOf(new_parent_id, cat->getUUID()))
-	{
-		return;
-	}
-
-	LLInventoryModel::update_list_t update;
-	LLInventoryModel::LLCategoryUpdate old_folder(cat->getParentUUID(), -1);
-	update.push_back(old_folder);
-	LLInventoryModel::LLCategoryUpdate new_folder(new_parent_id, 1);
-	update.push_back(new_folder);
-	model->accountForUpdate(update);
-
-	LLPointer<LLViewerInventoryCategory> new_cat = new LLViewerInventoryCategory(cat);
-	new_cat->setParent(new_parent_id);
-	new_cat->updateParentOnServer(restamp);
-	model->updateCategory(new_cat);
-	model->notifyObservers();
-}
-
-void remove_category(LLInventoryModel* model, const LLUUID& cat_id)
-{
-	if (!model || !get_is_category_removable(model, cat_id))
-	{
-		return;
-	}
-
-	// Look for any gestures and deactivate them
-	LLInventoryModel::cat_array_t	descendent_categories;
-	LLInventoryModel::item_array_t	descendent_items;
-	gInventory.collectDescendents(cat_id, descendent_categories, descendent_items, FALSE);
-
-	for (LLInventoryModel::item_array_t::const_iterator iter = descendent_items.begin();
-		 iter != descendent_items.end();
-		 ++iter)
-	{
-		const LLViewerInventoryItem* item = (*iter);
-		const LLUUID& item_id = item->getUUID();
-		if (item->getType() == LLAssetType::AT_GESTURE
-			&& LLGestureMgr::instance().isGestureActive(item_id))
-		{
-			LLGestureMgr::instance().deactivateGesture(item_id);
-		}
-	}
-
-	LLViewerInventoryCategory* cat = gInventory.getCategory(cat_id);
-	if (cat)
-	{
-		const LLUUID trash_id = model->findCategoryUUIDForType(LLFolderType::FT_TRASH);
-		change_category_parent(model, cat, trash_id, TRUE);
-	}
-}
-
 void rename_category(LLInventoryModel* model, const LLUUID& cat_id, const std::string& new_name)
 {
 	LLViewerInventoryCategory* cat;
@@ -553,8 +462,7 @@ void move_to_outbox_cb_action(const LLSD& payload)
 
 		LLUUID parent = viitem->getParentUUID();
 
-		change_item_parent(
-			&gInventory,
+		gInventory.changeItemParent(
 			viitem,
 			dest_folder_id,
 			false);
@@ -581,7 +489,7 @@ void move_to_outbox_cb_action(const LLSD& payload)
 
 				if (cat_array->empty() && item_array->empty())
 				{
-					remove_category(&gInventory, parent);
+					gInventory.removeCategory(parent);
 				}
 
 				if (parent == top_level_folder)
@@ -655,7 +563,7 @@ void move_item_within_outbox(LLInventoryItem* inv_item, LLUUID dest_folder, S32
 	
 	LLViewerInventoryItem * viewer_inv_item = (LLViewerInventoryItem *) inv_item;
 
-	change_item_parent(&gInventory,
+	gInventory.changeItemParent(
 					   viewer_inv_item,
 					   dest_folder,
 					   false);
@@ -976,20 +884,24 @@ void LLSaveFolderState::setApply(BOOL apply)
 
 void LLSaveFolderState::doFolder(LLFolderViewFolder* folder)
 {
+	LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
+	if(!bridge) return;
+	
 	if(mApply)
 	{
 		// we're applying the open state
-		LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
-		if(!bridge) return;
 		LLUUID id(bridge->getUUID());
 		if(mOpenFolders.find(id) != mOpenFolders.end())
 		{
-			folder->setOpen(TRUE);
+			if (!folder->isOpen())
+			{
+				folder->setOpen(TRUE);
+			}
 		}
 		else
 		{
 			// keep selected filter in its current state, this is less jarring to user
-			if (!folder->isSelected())
+			if (!folder->isSelected() && folder->isOpen())
 			{
 				folder->setOpen(FALSE);
 			}
@@ -1000,8 +912,6 @@ void LLSaveFolderState::doFolder(LLFolderViewFolder* folder)
 		// we're recording state at this point
 		if(folder->isOpen())
 		{
-			LLInvFVBridge* bridge = (LLInvFVBridge*)folder->getListener();
-			if(!bridge) return;
 			mOpenFolders.insert(bridge->getUUID());
 		}
 	}
diff --git a/indra/newview/llinventoryfunctions.h b/indra/newview/llinventoryfunctions.h
index 689f5f1a2..99d1ef24b 100644
--- a/indra/newview/llinventoryfunctions.h
+++ b/indra/newview/llinventoryfunctions.h
@@ -55,17 +55,6 @@ BOOL get_is_category_renameable(const LLInventoryModel* model, const LLUUID& id)
 
 void show_item_profile(const LLUUID& item_uuid);
 
-void change_item_parent(LLInventoryModel* model,
-									 LLViewerInventoryItem* item,
-									 const LLUUID& new_parent_id,
-									 BOOL restamp);
-
-void change_category_parent(LLInventoryModel* model,
-	LLViewerInventoryCategory* cat,
-	const LLUUID& new_parent_id,
-	BOOL restamp);
-
-void remove_category(LLInventoryModel* model, const LLUUID& cat_id);
 void rename_category(LLInventoryModel* model, const LLUUID& cat_id, const std::string& new_name);
 
 // Generates a string containing the path to the item specified by item_id.
diff --git a/indra/newview/llinventorymodel.cpp b/indra/newview/llinventorymodel.cpp
index a2060a2a1..50234039e 100644
--- a/indra/newview/llinventorymodel.cpp
+++ b/indra/newview/llinventorymodel.cpp
@@ -46,6 +46,8 @@
 #include "llviewerregion.h"
 #include "llcallbacklist.h"
 #include "llvoavatarself.h"
+#include "llgesturemgr.h"
+#include <typeinfo>
 #include "statemachine/aievent.h"
 
 // [RLVa:KB] - Checked: 2011-05-22 (RLVa-1.3.1a)
@@ -1080,6 +1082,72 @@ void LLInventoryModel::moveObject(const LLUUID& object_id, const LLUUID& cat_id)
 	}
 }
 
+// Migrated from llinventoryfunctions
+void LLInventoryModel::changeItemParent(LLViewerInventoryItem* item,
+										const LLUUID& new_parent_id,
+										BOOL restamp)
+{
+	// <edit>
+	bool send_parent_update = gInventory.isObjectDescendentOf(item->getUUID(), gInventory.getRootFolderID());
+	// </edit>
+	if (item->getParentUUID() == new_parent_id)
+	{
+		LL_DEBUGS("Inventory") << "'" << item->getName() << "' (" << item->getUUID()
+							   << ") is already in folder " << new_parent_id << LL_ENDL;
+	}
+	else
+	{
+		LL_INFOS("Inventory") << "Moving '" << item->getName() << "' (" << item->getUUID()
+							  << ") from " << item->getParentUUID() << " to folder "
+							  << new_parent_id << LL_ENDL;
+		LLInventoryModel::update_list_t update;
+		LLInventoryModel::LLCategoryUpdate old_folder(item->getParentUUID(),-1);
+		update.push_back(old_folder);
+		LLInventoryModel::LLCategoryUpdate new_folder(new_parent_id, 1);
+		update.push_back(new_folder);
+		accountForUpdate(update);
+
+		LLPointer<LLViewerInventoryItem> new_item = new LLViewerInventoryItem(item);
+		new_item->setParent(new_parent_id);
+		// <edit>
+		if(send_parent_update)
+		// </edit>
+		new_item->updateParentOnServer(restamp);
+		updateItem(new_item);
+		notifyObservers();
+	}
+}
+
+// Migrated from llinventoryfunctions
+void LLInventoryModel::changeCategoryParent(LLViewerInventoryCategory* cat,
+											const LLUUID& new_parent_id,
+											BOOL restamp)
+{
+	if (!cat)
+	{
+		return;
+	}
+
+	// Can't move a folder into a child of itself.
+	if (isObjectDescendentOf(new_parent_id, cat->getUUID()))
+	{
+		return;
+	}
+
+	LLInventoryModel::update_list_t update;
+	LLInventoryModel::LLCategoryUpdate old_folder(cat->getParentUUID(), -1);
+	update.push_back(old_folder);
+	LLInventoryModel::LLCategoryUpdate new_folder(new_parent_id, 1);
+	update.push_back(new_folder);
+	accountForUpdate(update);
+
+	LLPointer<LLViewerInventoryCategory> new_cat = new LLViewerInventoryCategory(cat);
+	new_cat->setParent(new_parent_id);
+	new_cat->updateParentOnServer(restamp);
+	updateCategory(new_cat);
+	notifyObservers();
+}
+
 // Delete a particular inventory object by ID.
 void LLInventoryModel::deleteObject(const LLUUID& id)
 {
@@ -1208,13 +1276,12 @@ void LLInventoryModel::purgeDescendentsOf(const LLUUID& id)
 						   items,
 						   INCLUDE_TRASH);
 		S32 count = items.count();
-		S32 i;
-		for(i = 0; i < count; ++i)
+		for(S32 i = 0; i < count; ++i)
 		{
 			deleteObject(items.get(i)->getUUID());
 		}
 		count = categories.count();
-		for(i = 0; i < count; ++i)
+		for(S32 i = 0; i < count; ++i)
 		{
 			deleteObject(categories.get(i)->getUUID());
 		}
@@ -1729,6 +1796,7 @@ bool LLInventoryModel::loadSkeleton(
 		update_map_t child_counts;
 		cat_array_t categories;
 		item_array_t items;
+		item_array_t possible_broken_links;
 		cat_set_t invalid_categories; // Used to mark categories that weren't successfully loaded.
 		std::string owner_id_str;
 		owner_id.toString(owner_id_str);
@@ -1815,6 +1883,8 @@ bool LLInventoryModel::loadSkeleton(
 			// Add all the items loaded which are parented to a
 			// category with a correctly cached parent
 			S32 bad_link_count = 0;
+			S32 good_link_count = 0;
+			S32 recovered_link_count = 0;
 			cat_map_t::iterator unparented = mCategoryMap.end();
 			for(item_array_t::const_iterator item_iter = items.begin();
 				item_iter != items.end();
@@ -1831,26 +1901,56 @@ bool LLInventoryModel::loadSkeleton(
 						// This can happen if the linked object's baseobj is removed from the cache but the linked object is still in the cache.
 						if (item->getIsBrokenLink())
 						{
-							bad_link_count++;
+							//bad_link_count++;
 							lldebugs << "Attempted to add cached link item without baseobj present ( name: "
 									 << item->getName() << " itemID: " << item->getUUID()
 									 << " assetID: " << item->getAssetUUID()
 									 << " ).  Ignoring and invalidating " << cat->getName() << " . " << llendl;
-							invalid_categories.insert(cit->second);
+							possible_broken_links.push_back(item);
 							continue;
 						}
+						else if (item->getIsLinkType())
+						{
+							good_link_count++;
+						}
 						addItem(item);
 						cached_item_count += 1;
 						++child_counts[cat->getUUID()];
 					}
 				}
 			}
-			if (bad_link_count > 0)
+			if (possible_broken_links.size() > 0)
 			{
-				llinfos << "Attempted to add " << bad_link_count
-						<< " cached link items without baseobj present. "
-						<< "The corresponding categories were invalidated." << llendl;
+				for(item_array_t::const_iterator item_iter = possible_broken_links.begin();
+				    item_iter != possible_broken_links.end();
+				    ++item_iter)
+				{
+					LLViewerInventoryItem *item = (*item_iter).get();
+					const cat_map_t::iterator cit = mCategoryMap.find(item->getParentUUID());
+					const LLViewerInventoryCategory* cat = cit->second.get();
+					if (item->getIsBrokenLink())
+					{
+						bad_link_count++;
+						invalid_categories.insert(cit->second);
+						//llinfos << "link still broken: " << item->getName() << " in folder " << cat->getName() << llendl;
+					}
+					else
+					{
+						// was marked as broken because of loading order, its actually fine to load
+						addItem(item);
+						cached_item_count += 1;
+						++child_counts[cat->getUUID()];
+						recovered_link_count++;
+					}
+				}
+
+ 				llinfos << "Attempted to add " << bad_link_count
+ 						<< " cached link items without baseobj present. "
+					    << good_link_count << " link items were successfully added. "
+					    << recovered_link_count << " links added in recovery. "
+ 						<< "The corresponding categories were invalidated." << llendl;
 			}
+
 		}
 		else
 		{
@@ -3099,27 +3199,62 @@ void LLInventoryModel::emptyFolderType(const std::string notification, LLFolderT
 		notifyObservers();
 	}
 }
+
+//----------------------------------------------------------------------------
+
 void LLInventoryModel::removeItem(const LLUUID& item_id)
 {
 	LLViewerInventoryItem* item = getItem(item_id);
-	const LLUUID new_parent = findCategoryUUIDForType(LLFolderType::FT_TRASH);
-	if(item && new_parent.notNull() && item->getParentUUID() != new_parent)
+	if (! item)
 	{
-		LLInventoryModel::update_list_t update;
-		LLInventoryModel::LLCategoryUpdate old_folder(item->getParentUUID(), -1);
-		update.push_back(old_folder);
-		LLInventoryModel::LLCategoryUpdate new_folder(new_parent, 1);
-		update.push_back(new_folder);
-		accountForUpdate(update);
-
-		LLPointer<LLViewerInventoryItem> new_item = new LLViewerInventoryItem(item);
-		new_item->setParent(new_parent);
-		new_item->updateParentOnServer(TRUE);
-		updateItem(new_item);
-		notifyObservers();
+		LL_WARNS("Inventory") << "couldn't find inventory item " << item_id << LL_ENDL;
+	}
+	else
+	{
+		const LLUUID new_parent = findCategoryUUIDForType(LLFolderType::FT_TRASH);
+		if (new_parent.notNull())
+		{
+			LL_INFOS("Inventory") << "Moving to Trash (" << new_parent << "):" << LL_ENDL;
+			changeItemParent(item, new_parent, TRUE);
+		}
 	}
 }
 
+void LLInventoryModel::removeCategory(const LLUUID& category_id)
+{
+	if (! get_is_category_removable(this, category_id))
+	{
+		return;
+	}
+
+	// Look for any gestures and deactivate them
+	LLInventoryModel::cat_array_t	descendent_categories;
+	LLInventoryModel::item_array_t	descendent_items;
+	collectDescendents(category_id, descendent_categories, descendent_items, FALSE);
+
+	for (LLInventoryModel::item_array_t::const_iterator iter = descendent_items.begin();
+		 iter != descendent_items.end();
+		 ++iter)
+	{
+		const LLViewerInventoryItem* item = (*iter);
+		const LLUUID& item_id = item->getUUID();
+		if (item->getType() == LLAssetType::AT_GESTURE
+			&& LLGestureMgr::instance().isGestureActive(item_id))
+		{
+			LLGestureMgr::instance().deactivateGesture(item_id);
+		}
+	}
+
+	LLViewerInventoryCategory* cat = getCategory(category_id);
+	if (cat)
+	{
+		const LLUUID trash_id = findCategoryUUIDForType(LLFolderType::FT_TRASH);
+		if (trash_id.notNull())
+		{
+			changeCategoryParent(cat, trash_id, TRUE);
+		}
+	}
+}
 const LLUUID &LLInventoryModel::getRootFolderID() const
 {
 	return mRootFolderID;
diff --git a/indra/newview/llinventorymodel.h b/indra/newview/llinventorymodel.h
index 90e841fef..a7506e19a 100644
--- a/indra/newview/llinventorymodel.h
+++ b/indra/newview/llinventorymodel.h
@@ -316,6 +316,16 @@ public:
 	// observer notification, or server update is performed.
 	void moveObject(const LLUUID& object_id, const LLUUID& cat_id);
 
+	// Migrated from llinventoryfunctions
+	void changeItemParent(LLViewerInventoryItem* item,
+						  const LLUUID& new_parent_id,
+						  BOOL restamp);
+
+	// Migrated from llinventoryfunctions
+	void changeCategoryParent(LLViewerInventoryCategory* cat,
+							  const LLUUID& new_parent_id,
+							  BOOL restamp);
+
 	//--------------------------------------------------------------------
 	// Delete
 	//--------------------------------------------------------------------
@@ -325,8 +335,13 @@ public:
 	// consistent internal state. No cache accounting, observer
 	// notification, or server update is performed.
 	void deleteObject(const LLUUID& id);
+	/// move Item item_id to Trash
 	void removeItem(const LLUUID& item_id);
-	
+	/// move Category category_id to Trash
+	void removeCategory(const LLUUID& category_id);
+	/// removeItem() or removeCategory(), whichever is appropriate
+	void removeObject(const LLUUID& object_id);
+
 	// Delete a particular inventory object by ID, and delete it from
 	// the server. Also updates linked items.
 	void purgeObject(const LLUUID& id);
diff --git a/indra/newview/llinventorymodelbackgroundfetch.cpp b/indra/newview/llinventorymodelbackgroundfetch.cpp
index 3fc36a290..74bb12058 100644
--- a/indra/newview/llinventorymodelbackgroundfetch.cpp
+++ b/indra/newview/llinventorymodelbackgroundfetch.cpp
@@ -43,6 +43,7 @@ const S32 MAX_FETCH_RETRIES = 10;
 
 LLInventoryModelBackgroundFetch::LLInventoryModelBackgroundFetch() :
 	mBackgroundFetchActive(FALSE),
+	mFolderFetchActive(false),
 	mAllFoldersFetched(FALSE),
 	mRecursiveInventoryFetchStarted(FALSE),
 	mRecursiveLibraryFetchStarted(FALSE),
@@ -50,7 +51,7 @@ LLInventoryModelBackgroundFetch::LLInventoryModelBackgroundFetch() :
 	mMinTimeBetweenFetches(0.3f),
 	mMaxTimeBetweenFetches(10.f),
 	mTimelyFetchPending(FALSE),
-	mBulkFetchCount(0)
+	mFetchCount(0)
 {
 }
 
@@ -60,7 +61,7 @@ LLInventoryModelBackgroundFetch::~LLInventoryModelBackgroundFetch()
 
 bool LLInventoryModelBackgroundFetch::isBulkFetchProcessingComplete() const
 {
-	return mFetchQueue.empty() && mBulkFetchCount<=0;
+	return mFetchQueue.empty() && mFetchCount<=0;
 }
 
 bool LLInventoryModelBackgroundFetch::libraryFetchStarted() const
@@ -98,19 +99,21 @@ bool LLInventoryModelBackgroundFetch::isEverythingFetched() const
 	return mAllFoldersFetched;
 }
 
-BOOL LLInventoryModelBackgroundFetch::backgroundFetchActive() const
+BOOL LLInventoryModelBackgroundFetch::folderFetchActive() const
 {
-	return mBackgroundFetchActive;
+	return mFolderFetchActive;
 }
 
-void LLInventoryModelBackgroundFetch::start(const LLUUID& cat_id, BOOL recursive)
+void LLInventoryModelBackgroundFetch::start(const LLUUID& id, BOOL recursive)
 {
-	if (!mAllFoldersFetched || cat_id.notNull())
-	{
-		LL_DEBUGS("InventoryFetch") << "Start fetching category: " << cat_id << ", recursive: " << recursive << LL_ENDL;
+	LLViewerInventoryCategory* cat = gInventory.getCategory(id);
+	if (cat || (id.isNull() && !isEverythingFetched()))
+	{	// it's a folder, do a bulk fetch
+		LL_DEBUGS("InventoryFetch") << "Start fetching category: " << id << ", recursive: " << recursive << LL_ENDL;
 
 		mBackgroundFetchActive = TRUE;
-		if (cat_id.isNull())
+		mFolderFetchActive = true;
+		if (id.isNull())
 		{
 			if (!mRecursiveInventoryFetchStarted)
 			{
@@ -128,42 +131,41 @@ void LLInventoryModelBackgroundFetch::start(const LLUUID& cat_id, BOOL recursive
 		else
 		{
 			// Specific folder requests go to front of queue.
-			if (mFetchQueue.empty() || mFetchQueue.front().mCatUUID != cat_id)
+			if (mFetchQueue.empty() || mFetchQueue.front().mUUID != id)
 			{
-				mFetchQueue.push_front(FetchQueueInfo(cat_id, recursive));
+				mFetchQueue.push_front(FetchQueueInfo(id, recursive));
 				gIdleCallbacks.addFunction(&LLInventoryModelBackgroundFetch::backgroundFetchCB, NULL);
 			}
-			if (cat_id == gInventory.getLibraryRootFolderID())
+			if (id == gInventory.getLibraryRootFolderID())
 			{
 				mRecursiveLibraryFetchStarted |= recursive;
 			}
-			if (cat_id == gInventory.getRootFolderID())
+			if (id == gInventory.getRootFolderID())
 			{
 				mRecursiveInventoryFetchStarted |= recursive;
 			}
 		}
 	}
+	else if (LLViewerInventoryItem* itemp = gInventory.getItem(id))
+	{
+		if (!itemp->mIsComplete && (mFetchQueue.empty() || mFetchQueue.front().mUUID != id))
+		{
+			mBackgroundFetchActive = TRUE;
+
+			mFetchQueue.push_front(FetchQueueInfo(id, false, false));
+			gIdleCallbacks.addFunction(&LLInventoryModelBackgroundFetch::backgroundFetchCB, NULL);
+		}
+	}
 }
 
-//static
 void LLInventoryModelBackgroundFetch::findLostItems()
 {
 	mBackgroundFetchActive = TRUE;
+	mFolderFetchActive = true;
     mFetchQueue.push_back(FetchQueueInfo(LLUUID::null, TRUE));
     gIdleCallbacks.addFunction(&LLInventoryModelBackgroundFetch::backgroundFetchCB, NULL);
 }
 
-void LLInventoryModelBackgroundFetch::stopBackgroundFetch()
-{
-	if (mBackgroundFetchActive)
-	{
-		mBackgroundFetchActive = FALSE;
-		gIdleCallbacks.deleteFunction(&LLInventoryModelBackgroundFetch::backgroundFetchCB, NULL);
-		mBulkFetchCount=0;
-		mMinTimeBetweenFetches=0.0f;
-	}
-}
-
 void LLInventoryModelBackgroundFetch::setAllFoldersFetched()
 {
 	if (mRecursiveInventoryFetchStarted &&
@@ -171,7 +173,7 @@ void LLInventoryModelBackgroundFetch::setAllFoldersFetched()
 	{
 		mAllFoldersFetched = TRUE;
 	}
-	stopBackgroundFetch();
+	mFolderFetchActive = false;
 }
 
 void LLInventoryModelBackgroundFetch::backgroundFetchCB(void *)
@@ -185,10 +187,9 @@ void LLInventoryModelBackgroundFetch::backgroundFetch()
 	if (mBackgroundFetchActive && gAgent.getRegion())
 	{
 		// If we'll be using the capability, we'll be sending batches and the background thing isn't as important.
-		std::string url = gAgent.getRegion()->getCapability("FetchInventoryDescendents2");   
-		if (gSavedSettings.getBOOL("UseHTTPInventory") && !url.empty()) 
+		if (gSavedSettings.getBOOL("UseHTTPInventory")) 
 		{
-			bulkFetch(url);
+			bulkFetch();
 			return;
 		}
 		
@@ -203,6 +204,9 @@ void LLInventoryModelBackgroundFetch::backgroundFetch()
 			llinfos << "Inventory fetch completed" << llendl;
 
 			setAllFoldersFetched();
+			mBackgroundFetchActive = false;
+			mFolderFetchActive = false;
+
 			return;
 		}
 
@@ -232,79 +236,113 @@ void LLInventoryModelBackgroundFetch::backgroundFetch()
 			}
 
 			const FetchQueueInfo info = mFetchQueue.front();
-			LLViewerInventoryCategory* cat = gInventory.getCategory(info.mCatUUID);
 
-			// category has been deleted, remove from queue.
-			if (!cat)
+			if (info.mIsCategory)
 			{
-				mFetchQueue.pop_front();
-				continue;
-			}
-			
-			if (mFetchTimer.getElapsedTimeF32() > mMinTimeBetweenFetches && 
-				LLViewerInventoryCategory::VERSION_UNKNOWN == cat->getVersion())
-			{
-				// category exists but has no children yet, fetch the descendants
-				// for now, just request every time and rely on retry timer to throttle
-				if (cat->fetch())
+
+				LLViewerInventoryCategory* cat = gInventory.getCategory(info.mUUID);
+
+				// Category has been deleted, remove from queue.
+				if (!cat)
 				{
+					mFetchQueue.pop_front();
+					continue;
+				}
+			
+				if (mFetchTimer.getElapsedTimeF32() > mMinTimeBetweenFetches && 
+					LLViewerInventoryCategory::VERSION_UNKNOWN == cat->getVersion())
+				{
+					// Category exists but has no children yet, fetch the descendants
+					// for now, just request every time and rely on retry timer to throttle.
+					if (cat->fetch())
+					{
+						mFetchTimer.reset();
+						mTimelyFetchPending = TRUE;
+					}
+					else
+					{
+						//  The catagory also tracks if it has expired and here it says it hasn't
+						//  yet.  Get out of here because nothing is going to happen until we
+						//  update the timers.
+						break;
+					}
+				}
+				// Do I have all my children?
+				else if (gInventory.isCategoryComplete(info.mUUID))
+				{
+					// Finished with this category, remove from queue.
+					mFetchQueue.pop_front();
+
+					// Add all children to queue.
+					LLInventoryModel::cat_array_t* categories;
+					gInventory.getDirectDescendentsOf(cat->getUUID(), categories);
+					for (LLInventoryModel::cat_array_t::const_iterator it = categories->begin();
+						 it != categories->end();
+						 ++it)
+					{
+						mFetchQueue.push_back(FetchQueueInfo((*it)->getUUID(),info.mRecursive));
+					}
+
+					// We received a response in less than the fast time.
+					if (mTimelyFetchPending && mFetchTimer.getElapsedTimeF32() < fast_fetch_time)
+					{
+						// Shrink timeouts based on success.
+						mMinTimeBetweenFetches = llmax(mMinTimeBetweenFetches * 0.8f, 0.3f);
+						mMaxTimeBetweenFetches = llmax(mMaxTimeBetweenFetches * 0.8f, 10.f);
+						lldebugs << "Inventory fetch times shrunk to (" << mMinTimeBetweenFetches << ", " << mMaxTimeBetweenFetches << ")" << llendl;
+					}
+
+					mTimelyFetchPending = FALSE;
+					continue;
+				}
+				else if (mFetchTimer.getElapsedTimeF32() > mMaxTimeBetweenFetches)
+				{
+					// Received first packet, but our num descendants does not match db's num descendants
+					// so try again later.
+					mFetchQueue.pop_front();
+
+					if (mNumFetchRetries++ < MAX_FETCH_RETRIES)
+					{
+						// push on back of queue
+						mFetchQueue.push_back(info);
+					}
+					mTimelyFetchPending = FALSE;
+					mFetchTimer.reset();
+					break;
+				}
+
+				// Not enough time has elapsed to do a new fetch
+				break;
+			}
+			else
+			{
+				LLViewerInventoryItem* itemp = gInventory.getItem(info.mUUID);
+
+				mFetchQueue.pop_front();
+				if (!itemp) 
+				{
+					continue;
+				}
+
+				if (mFetchTimer.getElapsedTimeF32() > mMinTimeBetweenFetches)
+				{
+					itemp->fetchFromServer();
 					mFetchTimer.reset();
 					mTimelyFetchPending = TRUE;
 				}
-				else
+				else if (itemp->mIsComplete)
 				{
-					//  The catagory also tracks if it has expired and here it says it hasn't
-					//  yet.  Get out of here because nothing is going to happen until we
-					//  update the timers.
-					break;
+					mTimelyFetchPending = FALSE;
 				}
-			}
-			// do I have all my children?
-			else if (gInventory.isCategoryComplete(info.mCatUUID))
-			{
-				// finished with this category, remove from queue
-				mFetchQueue.pop_front();
-
-				// Add all children to queue.
-				LLInventoryModel::cat_array_t* categories;
-				gInventory.getDirectDescendentsOf(cat->getUUID(), categories);
-				for (LLInventoryModel::cat_array_t::const_iterator it = categories->begin();
-					 it != categories->end();
-					 ++it)
+				else if (mFetchTimer.getElapsedTimeF32() > mMaxTimeBetweenFetches)
 				{
-					mFetchQueue.push_back(FetchQueueInfo((*it)->getUUID(),info.mRecursive));
-				}
-
-				// we received a response in less than the fast time
-				if (mTimelyFetchPending && mFetchTimer.getElapsedTimeF32() < fast_fetch_time)
-				{
-					// shrink timeouts based on success
-					mMinTimeBetweenFetches = llmax(mMinTimeBetweenFetches * 0.8f, 0.3f);
-					mMaxTimeBetweenFetches = llmax(mMaxTimeBetweenFetches * 0.8f, 10.f);
-					lldebugs << "Inventory fetch times shrunk to (" << mMinTimeBetweenFetches << ", " << mMaxTimeBetweenFetches << ")" << llendl;
-				}
-
-				mTimelyFetchPending = FALSE;
-				continue;
-			}
-			else if (mFetchTimer.getElapsedTimeF32() > mMaxTimeBetweenFetches)
-			{
-				// received first packet, but our num descendants does not match db's num descendants
-				// so try again later.
-				mFetchQueue.pop_front();
-
-				if (mNumFetchRetries++ < MAX_FETCH_RETRIES)
-				{
-					// push on back of queue
 					mFetchQueue.push_back(info);
+					mFetchTimer.reset();
+					mTimelyFetchPending = FALSE;
 				}
-				mTimelyFetchPending = FALSE;
-				mFetchTimer.reset();
+				// Not enough time has elapsed to do a new fetch
 				break;
 			}
-
-			// not enough time has elapsed to do a new fetch
-			break;
 		}
 		
 		//
@@ -314,15 +352,35 @@ void LLInventoryModelBackgroundFetch::backgroundFetch()
 	}
 }
 
-void LLInventoryModelBackgroundFetch::incrBulkFetch(S16 fetching) 
+void LLInventoryModelBackgroundFetch::incrFetchCount(S16 fetching) 
 {  
-	mBulkFetchCount += fetching; 
-	if (mBulkFetchCount < 0)
+	mFetchCount += fetching; 
+	if (mFetchCount < 0)
 	{
-		mBulkFetchCount = 0; 
+		mFetchCount = 0; 
 	}
 }
 
+class LLInventoryModelFetchItemResponder : public LLInventoryModel::fetchInventoryResponder
+{
+public:
+	LLInventoryModelFetchItemResponder(const LLSD& request_sd) : LLInventoryModel::fetchInventoryResponder(request_sd) {};
+	void result(const LLSD& content);			
+	void error(U32 status, const std::string& reason);
+};
+
+void LLInventoryModelFetchItemResponder::result( const LLSD& content )
+{
+	LLInventoryModel::fetchInventoryResponder::result(content);
+	LLInventoryModelBackgroundFetch::instance().incrFetchCount(-1);
+}
+
+void LLInventoryModelFetchItemResponder::error( U32 status, const std::string& reason )
+{
+	LLInventoryModel::fetchInventoryResponder::error(status, reason);
+	LLInventoryModelBackgroundFetch::instance().incrFetchCount(-1);
+}
+
 
 class LLInventoryModelFetchDescendentsResponder: public LLHTTPClient::Responder
 {
@@ -459,7 +517,7 @@ void LLInventoryModelFetchDescendentsResponder::result(const LLSD& content)
 		}
 	}
 
-	fetcher->incrBulkFetch(-1);
+	fetcher->incrFetchCount(-1);
 	
 	if (fetcher->isBulkFetchProcessingComplete())
 	{
@@ -478,9 +536,9 @@ void LLInventoryModelFetchDescendentsResponder::error(U32 status, const std::str
 	llinfos << "LLInventoryModelFetchDescendentsResponder::error "
 		<< status << ": " << reason << llendl;
 						
-	fetcher->incrBulkFetch(-1);
+	fetcher->incrFetchCount(-1);
 
-	if (status==499)		//timed out.  Let's be awesome!
+	if (status==499) // timed out
 	{
 		for(LLSD::array_const_iterator folder_it = mRequestSD["folders"].beginArray();
 			folder_it != mRequestSD["folders"].endArray();
@@ -509,27 +567,29 @@ BOOL LLInventoryModelFetchDescendentsResponder::getIsRecursive(const LLUUID& cat
 
 // Bundle up a bunch of requests to send all at once.
 // static   
-void LLInventoryModelBackgroundFetch::bulkFetch(std::string url)
+void LLInventoryModelBackgroundFetch::bulkFetch()
 {
 	//Background fetch is called from gIdleCallbacks in a loop until background fetch is stopped.
-	//If there are items in sFetchQueue, we want to check the time since the last bulkFetch was 
+	//If there are items in mFetchQueue, we want to check the time since the last bulkFetch was 
 	//sent.  If it exceeds our retry time, go ahead and fire off another batch.  
-	//Stopbackgroundfetch will be run from the Responder instead of here.  
+	LLViewerRegion* region = gAgent.getRegion();
+	if (!region) return;
 
 	S16 max_concurrent_fetches=8;
 	F32 new_min_time = 0.5f;			//HACK!  Clean this up when old code goes away entirely.
-	if (mMinTimeBetweenFetches < new_min_time)
+	if (mMinTimeBetweenFetches < new_min_time) 
 	{
 		mMinTimeBetweenFetches=new_min_time;  //HACK!  See above.
 	}
 	
 	if (gDisconnected ||
-		(mBulkFetchCount > max_concurrent_fetches) ||
+		(mFetchCount > max_concurrent_fetches) ||
 		(mFetchTimer.getElapsedTimeF32() < mMinTimeBetweenFetches))
 	{
-		return; // just bail if we are disconnected.
+		return; // just bail if we are disconnected
 	}	
 
+	U32 item_count=0;
 	U32 folder_count=0;
 	U32 max_batch_size=5;
 
@@ -537,86 +597,163 @@ void LLInventoryModelBackgroundFetch::bulkFetch(std::string url)
 
 	uuid_vec_t recursive_cats;
 
-	LLSD body;
-	LLSD body_lib;
+	LLSD folder_request_body;
+	LLSD folder_request_body_lib;
+	LLSD item_request_body;
+	LLSD item_request_body_lib;
 
-	while( !(mFetchQueue.empty() ) && (folder_count < max_batch_size) )
+	while (!mFetchQueue.empty() 
+			&& (item_count + folder_count) < max_batch_size)
 	{
 		const FetchQueueInfo& fetch_info = mFetchQueue.front();
-		const LLUUID &cat_id = fetch_info.mCatUUID;
-        if (cat_id.isNull()) //DEV-17797
-        {
-			LLSD folder_sd;
-			folder_sd["folder_id"]		= LLUUID::null.asString();
-			folder_sd["owner_id"]		= gAgent.getID();
-			folder_sd["sort_order"]		= (LLSD::Integer)sort_order;
-			folder_sd["fetch_folders"]	= (LLSD::Boolean)FALSE;
-			folder_sd["fetch_items"]	= (LLSD::Boolean)TRUE;
-			body["folders"].append(folder_sd);
-            folder_count++;
-        }
-        else
-        {
-		    LLViewerInventoryCategory* cat = gInventory.getCategory(cat_id);
+		if (fetch_info.mIsCategory)
+		{
+			const LLUUID &cat_id = fetch_info.mUUID;
+			if (cat_id.isNull()) //DEV-17797
+			{
+				LLSD folder_sd;
+				folder_sd["folder_id"]		= LLUUID::null.asString();
+				folder_sd["owner_id"]		= gAgent.getID();
+				folder_sd["sort_order"]		= (LLSD::Integer)sort_order;
+				folder_sd["fetch_folders"]	= (LLSD::Boolean)FALSE;
+				folder_sd["fetch_items"]	= (LLSD::Boolean)TRUE;
+				folder_request_body["folders"].append(folder_sd);
+				folder_count++;
+			}
+			else
+			{
+				const LLViewerInventoryCategory* cat = gInventory.getCategory(cat_id);
 		
-		    if (cat)
-		    {
-			    if (LLViewerInventoryCategory::VERSION_UNKNOWN == cat->getVersion())
-			    {
-				    LLSD folder_sd;
-				    folder_sd["folder_id"]		= cat->getUUID();
-				    folder_sd["owner_id"]		= cat->getOwnerID();
-				    folder_sd["sort_order"]		= (LLSD::Integer)sort_order;
-				    folder_sd["fetch_folders"]	= TRUE; //(LLSD::Boolean)sFullFetchStarted;
-				    folder_sd["fetch_items"]	= (LLSD::Boolean)TRUE;
-				    
-				    if (ALEXANDRIA_LINDEN_ID == cat->getOwnerID())
-					    body_lib["folders"].append(folder_sd);
-				    else
-					    body["folders"].append(folder_sd);
-				    folder_count++;
-			    }
-				// May already have this folder, but append child folders to list.
-			    if (fetch_info.mRecursive)
-			    {	
-					LLInventoryModel::cat_array_t* categories;
-					gInventory.getDirectDescendentsOf(cat->getUUID(), categories);
-					for (LLInventoryModel::cat_array_t::const_iterator it = categories->begin();
-						 it != categories->end();
-						 ++it)
+				if (cat)
+				{
+					if (LLViewerInventoryCategory::VERSION_UNKNOWN == cat->getVersion())
 					{
-						mFetchQueue.push_back(FetchQueueInfo((*it)->getUUID(), fetch_info.mRecursive));
-				    }
-			    }
-		    }
-        }
-		if (fetch_info.mRecursive)
-			recursive_cats.push_back(cat_id);
+						LLSD folder_sd;
+						folder_sd["folder_id"]		= cat->getUUID();
+						folder_sd["owner_id"]		= cat->getOwnerID();
+						folder_sd["sort_order"]		= (LLSD::Integer)sort_order;
+						folder_sd["fetch_folders"]	= TRUE; //(LLSD::Boolean)sFullFetchStarted;
+						folder_sd["fetch_items"]	= (LLSD::Boolean)TRUE;
+				    
+						if (ALEXANDRIA_LINDEN_ID == cat->getOwnerID())
+							folder_request_body_lib["folders"].append(folder_sd);
+						else
+							folder_request_body["folders"].append(folder_sd);
+						folder_count++;
+					}
+					// May already have this folder, but append child folders to list.
+					if (fetch_info.mRecursive)
+					{	
+						LLInventoryModel::cat_array_t* categories;
+						LLInventoryModel::item_array_t* items;
+						gInventory.getDirectDescendentsOf(cat->getUUID(), categories, items);
+						for (LLInventoryModel::cat_array_t::const_iterator it = categories->begin();
+							 it != categories->end();
+							 ++it)
+						{
+							mFetchQueue.push_back(FetchQueueInfo((*it)->getUUID(), fetch_info.mRecursive));
+						}
+					}
+				}
+			}
+			if (fetch_info.mRecursive)
+				recursive_cats.push_back(cat_id);
+		}
+		else
+		{
+			LLViewerInventoryItem* itemp = gInventory.getItem(fetch_info.mUUID);
+			if (itemp)
+			{
+				LLSD item_sd;
+				item_sd["owner_id"] = itemp->getPermissions().getOwner();
+				item_sd["item_id"] = itemp->getUUID();
+				if (itemp->getPermissions().getOwner() == gAgent.getID())
+				{
+					item_request_body.append(item_sd);
+				}
+				else
+				{
+					item_request_body_lib.append(item_sd);
+				}
+				//itemp->fetchFromServer();
+				item_count++;
+			}
+		}
 
 		mFetchQueue.pop_front();
 	}
 		
-	if (folder_count > 0)
+	if (item_count + folder_count > 0)
 	{
-		mBulkFetchCount++;
-		if (body["folders"].size())
+		if (folder_count)
 		{
-			LLInventoryModelFetchDescendentsResponder *fetcher = new LLInventoryModelFetchDescendentsResponder(body, recursive_cats);
-			LLHTTPClient::post(url, body, fetcher, 300.0);
+			std::string url = region->getCapability("FetchInventoryDescendents2");   
+			mFetchCount++;
+			if (folder_request_body["folders"].size())
+			{
+				LLInventoryModelFetchDescendentsResponder *fetcher = new LLInventoryModelFetchDescendentsResponder(folder_request_body, recursive_cats);
+				LLHTTPClient::post(url, folder_request_body, fetcher, 300.0);
+			}
+			if (folder_request_body_lib["folders"].size())
+			{
+				std::string url_lib = gAgent.getRegion()->getCapability("FetchLibDescendents2");
+
+				LLInventoryModelFetchDescendentsResponder *fetcher = new LLInventoryModelFetchDescendentsResponder(folder_request_body_lib, recursive_cats);
+				LLHTTPClient::post(url_lib, folder_request_body_lib, fetcher, 300.0);
+			}
 		}
-		if (body_lib["folders"].size())
+		if (item_count)
 		{
-			std::string url_lib = gAgent.getRegion()->getCapability("FetchLibDescendents2");
-			
-			LLInventoryModelFetchDescendentsResponder *fetcher = new LLInventoryModelFetchDescendentsResponder(body_lib, recursive_cats);
-			LLHTTPClient::post(url_lib, body_lib, fetcher, 300.0);
+			std::string url;
+
+			if (item_request_body.size())
+			{
+				mFetchCount++;
+				url = region->getCapability("FetchInventory2");
+				if (!url.empty())
+				{
+					LLSD body;
+					body["agent_id"]	= gAgent.getID();
+					body["items"] = item_request_body;
+
+					LLHTTPClient::post(url, body, new LLInventoryModelFetchItemResponder(body));
+				}
+				//else
+				//{
+				//	LLMessageSystem* msg = gMessageSystem;
+				//	msg->newMessage("FetchInventory");
+				//	msg->nextBlock("AgentData");
+				//	msg->addUUID("AgentID", gAgent.getID());
+				//	msg->addUUID("SessionID", gAgent.getSessionID());
+				//	msg->nextBlock("InventoryData");
+				//	msg->addUUID("OwnerID", mPermissions.getOwner());
+				//	msg->addUUID("ItemID", mUUID);
+				//	gAgent.sendReliableMessage();
+				//}
+			}
+
+			if (item_request_body_lib.size())
+			{
+				mFetchCount++;
+
+				url = region->getCapability("FetchLib2");
+				if (!url.empty())
+				{
+					LLSD body;
+					body["agent_id"]	= gAgent.getID();
+					body["items"] = item_request_body_lib;
+
+					LLHTTPClient::post(url, body, new LLInventoryModelFetchItemResponder(body));
+				}
+			}
 		}
 		mFetchTimer.reset();
 	}
+
 	else if (isBulkFetchProcessingComplete())
 	{
 		setAllFoldersFetched();
-	}	
+	}
 }
 
 bool LLInventoryModelBackgroundFetch::fetchQueueContainsNoDescendentsOf(const LLUUID& cat_id) const
@@ -624,7 +761,7 @@ bool LLInventoryModelBackgroundFetch::fetchQueueContainsNoDescendentsOf(const LL
 	for (fetch_queue_t::const_iterator it = mFetchQueue.begin();
 		 it != mFetchQueue.end(); ++it)
 	{
-		const LLUUID& fetch_id = (*it).mCatUUID;
+		const LLUUID& fetch_id = (*it).mUUID;
 		if (gInventory.isObjectDescendentOf(fetch_id, cat_id))
 			return false;
 	}
diff --git a/indra/newview/llinventorymodelbackgroundfetch.h b/indra/newview/llinventorymodelbackgroundfetch.h
index 0fac2c7a2..bc40cc5cb 100644
--- a/indra/newview/llinventorymodelbackgroundfetch.h
+++ b/indra/newview/llinventorymodelbackgroundfetch.h
@@ -48,7 +48,7 @@ public:
 	// This gets triggered when performing a filter-search.
 	void start(const LLUUID& cat_id = LLUUID::null, BOOL recursive = TRUE);
 
-	BOOL backgroundFetchActive() const;
+	BOOL folderFetchActive() const;
 	bool isEverythingFetched() const; // completing the fetch once per session should be sufficient
 
 	bool libraryFetchStarted() const;
@@ -60,14 +60,13 @@ public:
 	bool inventoryFetchInProgress() const;
 
     void findLostItems();	
+	void incrFetchCount(S16 fetching);
 protected:
-	void incrBulkFetch(S16 fetching);
 	bool isBulkFetchProcessingComplete() const;
-	void bulkFetch(std::string url);
+	void bulkFetch();
 
 	void backgroundFetch();
 	static void backgroundFetchCB(void*); // background fetch idle function
-	void stopBackgroundFetch(); // stop fetch process
 
 	void setAllFoldersFetched();
 	bool fetchQueueContainsNoDescendentsOf(const LLUUID& cat_id) const;
@@ -77,7 +76,8 @@ private:
 	BOOL mAllFoldersFetched;
 
 	BOOL mBackgroundFetchActive;
-	S16 mBulkFetchCount;
+	bool mFolderFetchActive;
+	S16 mFetchCount;
 	BOOL mTimelyFetchPending;
 	S32  mNumFetchRetries;
 
@@ -87,11 +87,11 @@ private:
 
 	struct FetchQueueInfo
 	{
-		FetchQueueInfo(const LLUUID& id, BOOL recursive) :
-			mCatUUID(id), mRecursive(recursive)
-		{
-		}
-		LLUUID mCatUUID;
+		FetchQueueInfo(const LLUUID& id, BOOL recursive, bool is_category = true) :
+			mUUID(id), mRecursive(recursive), mIsCategory(is_category)
+		{}
+		LLUUID mUUID;
+		bool mIsCategory;
 		BOOL mRecursive;
 	};
 	typedef std::deque<FetchQueueInfo> fetch_queue_t;
diff --git a/indra/newview/llinventorypanel.cpp b/indra/newview/llinventorypanel.cpp
index d957b9f94..0f6fa9e78 100644
--- a/indra/newview/llinventorypanel.cpp
+++ b/indra/newview/llinventorypanel.cpp
@@ -841,7 +841,7 @@ BOOL LLInventoryPanel::handleHover(S32 x, S32 y, MASK mask)
 	if(handled)
 	{
 		ECursorType cursor = getWindow()->getCursor();
-		if (LLInventoryModelBackgroundFetch::instance().backgroundFetchActive() && cursor == UI_CURSOR_ARROW)
+		if (LLInventoryModelBackgroundFetch::instance().folderFetchActive() && cursor == UI_CURSOR_ARROW)
 		{
 			// replace arrow cursor with arrow and hourglass cursor
 			getWindow()->setCursor(UI_CURSOR_WORKING);
diff --git a/indra/newview/llpanelmaininventory.cpp b/indra/newview/llpanelmaininventory.cpp
index ac746097b..f37772a37 100644
--- a/indra/newview/llpanelmaininventory.cpp
+++ b/indra/newview/llpanelmaininventory.cpp
@@ -862,7 +862,7 @@ void LLInventoryView::updateItemcountText()
 {
 	std::ostringstream title;
 	title << "Inventory";
- 	if (LLInventoryModelBackgroundFetch::instance().backgroundFetchActive())
+ 	if (LLInventoryModelBackgroundFetch::instance().folderFetchActive())
 	{
 		LLLocale locale(LLLocale::USER_LOCALE);
 		std::string item_count_string;