diff --git a/src/servers/app/RootLayer.cpp b/src/servers/app/RootLayer.cpp
index dc3b2a9dfc..c072ae0024 100644
--- a/src/servers/app/RootLayer.cpp
+++ b/src/servers/app/RootLayer.cpp
@@ -1077,8 +1077,6 @@ RootLayer::_ProcessMouseMovedEvent(PointerEvent &evt)
 				else
 					fViewAction = B_OUTSIDE_VIEW;
 
-			// NOTE: testing under R5 shows that it doesn't matter if a window is created 
-			// with B_ASYNCHRONOUS_CONTROLS flag or not. B_MOUSE_DOWN is always transmited.
 			lay->MouseMoved(evt, fViewAction);
 		}
 	}
@@ -1147,6 +1145,16 @@ RootLayer::MouseEventHandler(int32 code, BPrivate::PortLink& msg)
 				break;
 
 #ifdef NEW_INPUT_HANDLING
+			int32 count = fMouseNotificationList.CountItems();
+			Layer *lay;
+			for (int32 i = 0; i <= count; i++) {
+				lay = static_cast<Layer*>(fMouseNotificationList.ItemAt(i));
+				if (lay)
+					// NOTE: testing under R5 shows that it doesn't matter if a window is created 
+					// with B_ASYNCHRONOUS_CONTROLS flag or not. B_MOUSE_DOWN is always transmited.
+					lay->MouseDown(evt);
+			}
+
 			// get the pointer for one of the first RootLayer's descendants
 			Layer *primaryTarget = LayerAt(evt.where, false);
 			primaryTarget->MouseDown(evt);
@@ -1256,12 +1264,23 @@ fprintf(stderr, "mouse position changed in B_MOUSE_UP (%.1f, %.1f) from last B_M
 			}
 
 #ifdef NEW_INPUT_HANDLING
-			ClearNotifyLayer();
 			if (fLastLayerUnderMouse == NULL) {
 				CRITICAL("RootLayer::MouseEventHandler(B_MOUSE_UP) fLastLayerUnderMouse is null!\n");
 				break;
 			}
-			fLastLayerUnderMouse->MouseUp(evt);
+
+			bool foundCurrent = fMouseNotificationList.HasItem(fLastLayerUnderMouse);
+			int32 count = fMouseNotificationList.CountItems();
+			Layer *lay;
+			for (int32 i = 0; i <= count; i++) {
+				lay = static_cast<Layer*>(fMouseNotificationList.ItemAt(i));
+				if (lay)
+					lay->MouseUp(evt);
+			}
+			ClearNotifyLayer();
+
+			if (!foundCurrent)
+				fLastLayerUnderMouse->MouseUp(evt);
 #else
 			if (fLastLayerUnderMouse == NULL) {
 				CRITICAL("RootLayer::MouseEventHandler(B_MOUSE_UP) fLastLayerUnderMouse is null!\n");
@@ -1917,12 +1936,12 @@ RootLayer::ClearNotifyLayer()
 {
 	if (fNotifyLayer) {
 		Lock();
-
+		// remove from notification list.
 		AddToInputNotificationLists(fNotifyLayer, 0UL, 0UL);
-
+		// set event masks
 		fNotifyLayer->QuietlySetEventMask(fSavedEventMask);
 		fNotifyLayer->QuietlySetEventOptions(fSavedEventOptions);
-
+		// add to notification list with event masks set my BView::SetEventMask()
 		AddToInputNotificationLists(fNotifyLayer, fSavedEventMask, fSavedEventOptions);
 
 		fNotifyLayer = NULL;
diff --git a/src/servers/app/WinBorder.cpp b/src/servers/app/WinBorder.cpp
index 5a939c3b18..e6f67eea92 100644
--- a/src/servers/app/WinBorder.cpp
+++ b/src/servers/app/WinBorder.cpp
@@ -109,7 +109,6 @@ WinBorder::WinBorder(const BRect &frame,
 	fClassID		= AS_WINBORDER_CLASS;
 	fAdFlags		= fAdFlags | B_LAYER_CHILDREN_DEPENDANT;
 	fFlags			= B_WILL_DRAW | B_FULL_UPDATE_ON_RESIZE;
-	fEventMask		= B_POINTER_EVENTS;
 #ifdef NEW_CLIPPING
 	fRebuildDecRegion = true;
 #endif
@@ -471,7 +470,6 @@ WinBorder::MouseDown(const PointerEvent& evt)
 				else
 					goto activateWindow;
 			}
-// TODO: send mouse down to event registered BViews!!!
 		}
 		// clicking WinBorder visible area
 		else {
@@ -526,30 +524,30 @@ WinBorder::MouseDown(const PointerEvent& evt)
 			if (action == DEC_MOVETOBACK) {
 				GetRootLayer()->ActiveWorkspace()->MoveToBack(this);
 			}
-			else if (action == DEC_DRAG) {
-				GetRootLayer()->SetNotifyLayer(this, B_POINTER_EVENTS, 0UL);
+			else {
+				if (action == DEC_DRAG || action == DEC_RESIZE || action == DEC_SLIDETAB)
+					GetRootLayer()->SetNotifyLayer(this, B_POINTER_EVENTS, 0UL);
+	
 				activateWindow:
 				GetRootLayer()->ActiveWorkspace()->AttemptToActivate(this);
 			}
 
 			GetRootLayer()->ActiveWorkspace()->GetState(&newState);
-//--------------------------
-// BOOKMARK!
-			// send window activation messages
 
-			// NOTE !!! ATM we're sending B_WINDOW_ACTIVATED to front windows only!
-			// This means floating windows do not have their BWindow::WindowActivated()
-			// hook function called. 
-			if (oldState.Front != newState.Front) {
-				if (oldState.Front && oldState.Front->Window()) {
+// BOOKMARK!
+// TODO: there can be more than one window active at a time! ex: a normal + floating_app, with
+// floating window having focus.
+			// send window activation messages
+			if (oldState.Active != newState.Active) {
+				if (oldState.Active && oldState.Active->Window()) {
 					BMessage msg(B_WINDOW_ACTIVATED);
 					msg.AddBool("active", false);
-					oldState.Front->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
+					oldState.Active->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
 				}
-				if (newState.Front && newState.Front->Window()) {
+				if (newState.Active && newState.Active->Window()) {
 					BMessage msg(B_WINDOW_ACTIVATED);
 					msg.AddBool("active", true);
-					newState.Front->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
+					newState.Active->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
 				}
 			}
 
@@ -567,14 +565,12 @@ WinBorder::MouseDown(const PointerEvent& evt)
 #endif
 			}
 
+			// trigger region rebuilding and redraw
 #ifndef NEW_CLIPPING
 			GetRootLayer()->invalidate_layer(this, fFull);
 #else
 			GetRootLayer()->do_Invalidate(Bounds());
 #endif
-
-
-// TODO: FINISH ABOVE.
 		}
 	}
 	// in FFM mode
diff --git a/src/servers/app/Workspace.cpp b/src/servers/app/Workspace.cpp
index 5f2b70eaea..015b5632b8 100644
--- a/src/servers/app/Workspace.cpp
+++ b/src/servers/app/Workspace.cpp
@@ -231,6 +231,7 @@ Workspace::GetState(Workspace::State *state) const
 {
 	state->Front = Front();
 	state->Focus = Focus();
+	state->Active = Active();
 
 	ListData *cursor = fBottomItem;
 	while (cursor) {
diff --git a/src/servers/app/Workspace.h b/src/servers/app/Workspace.h
index b0e9b11a28..0376c2f5d0 100644
--- a/src/servers/app/Workspace.h
+++ b/src/servers/app/Workspace.h
@@ -54,6 +54,7 @@ class Workspace {
 							State() : Front(NULL), Focus(NULL), WindowList(40) { }
 				WinBorder*	Front;
 				WinBorder*	Focus;
+				WinBorder*	Active;
 				BList		WindowList;
 		};
 								Workspace(	const int32 ID,