diff --git a/src/servers/app/Layer.cpp b/src/servers/app/Layer.cpp
index 42aa2a8f59..0e87322f39 100644
--- a/src/servers/app/Layer.cpp
+++ b/src/servers/app/Layer.cpp
@@ -1100,7 +1100,7 @@ Layer::ScrollBy(float x, float y)
 void
 Layer::MouseDown(const PointerEvent& evt)
 {
-	if (Window()) {
+	if (Window() && !IsTopLayer()) {
 		BMessage msg;
 		msg.what = B_MOUSE_DOWN;
 		msg.AddInt64("when", evt.when);
@@ -1116,7 +1116,7 @@ Layer::MouseDown(const PointerEvent& evt)
 void
 Layer::MouseUp(const PointerEvent& evt)
 {
-	if (Window()) {
+	if (Window() && !IsTopLayer()) {
 		BMessage upmsg(B_MOUSE_UP);
 		upmsg.AddInt64("when",evt.when);
 		upmsg.AddPoint("where",evt.where);
@@ -1129,7 +1129,7 @@ Layer::MouseUp(const PointerEvent& evt)
 void
 Layer::MouseMoved(const PointerEvent& evt, uint32 transit)
 {
-	if (Window()) {
+	if (Window() && !IsTopLayer()) {
 		BMessage movemsg(B_MOUSE_MOVED);
 		movemsg.AddInt64("when", evt.when);
 		movemsg.AddPoint("where", evt.where);
diff --git a/src/servers/app/Layer.h b/src/servers/app/Layer.h
index d91d3b2214..131cb0379d 100644
--- a/src/servers/app/Layer.h
+++ b/src/servers/app/Layer.h
@@ -199,9 +199,11 @@ class Layer {
 			ServerApp*			App() const
 									{ return fServerWin? fServerWin->App(): NULL; }
 
+	inline	WinBorder*			Owner() const
+									{ return fOwner; }
+
 	virtual	bool				HasClient()
 									{ return true; }
-//			bool				IsServerLayer() const;
 
 			uint32				EventMask() const
 									{ return fEventMask; }
@@ -250,6 +252,9 @@ class Layer {
 			void				CopyBits(BRect& src, BRect& dst,
 										 int32 xOffset, int32 yOffset);
 
+	inline	const BRegion&		VisibleRegion() const { return fVisible; }
+	inline	const BRegion&		FullVisible() const { return fFullVisible; }
+
 #ifdef NEW_CLIPPING
 	inline	const BRegion&		VisibleRegion() const { return fVisible2; }
 	inline	const BRegion&		FullVisible() const { return fFullVisible2; }
diff --git a/src/servers/app/RootLayer.cpp b/src/servers/app/RootLayer.cpp
index b57bd96cdd..9f92731983 100644
--- a/src/servers/app/RootLayer.cpp
+++ b/src/servers/app/RootLayer.cpp
@@ -1033,9 +1033,6 @@ RootLayer::WinBorderAt(const BPoint& pt) const
 void
 RootLayer::_ProcessMouseMovedEvent(PointerEvent &evt)
 {
-	// move cursor on screen
-	GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
-
 	Layer* target = LayerAt(evt.where);
 	if (target == NULL) {
 		CRITICAL("RootLayer::_ProcessMouseMovedEvent() 'target' can't be null.\n");
@@ -1120,6 +1117,9 @@ RootLayer::MouseEventHandler(int32 code, BPrivate::PortLink& msg)
 
 			if (fLastMousePosition != evt.where) {
 #ifdef NEW_INPUT_HANDLING
+				// move cursor on screen
+				GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
+
 				_ProcessMouseMovedEvent(evt);
 #else
 
@@ -1146,6 +1146,65 @@ RootLayer::MouseEventHandler(int32 code, BPrivate::PortLink& msg)
 			if (fLastLayerUnderMouse == this)
 				break;
 #ifdef NEW_INPUT_HANDLING
+			WinBorder* winBorderUnderMouse = fLastLayerUnderMouse->Owner() ?
+												fLastLayerUnderMouse->fOwner :
+												(WinBorder*)fLastLayerUnderMouse;
+
+			DesktopSettings ds(gDesktop);
+			Workspace::State oldState, newState;
+			click_type action = winBorderUnderMouse->ActionFor(evt);
+
+			ActiveWorkspace()->GetState(&oldState);
+			if (action == DEC_MOVETOBACK) {
+				ActiveWorkspace()->AttemptToMoveToBack(winBorderUnderMouse);
+			}
+			// in FFM, only bring in front if clicking on WinBorder's(decorator's) area
+			else if (dynamic_cast<WinBorder*>(fLastLayerUnderMouse) || ds.MouseMode() == B_NORMAL_MOUSE) {
+				ActiveWorkspace()->AttemptToSetFront(winBorderUnderMouse);
+			}
+			ActiveWorkspace()->AttemptToSetFocus(winBorderUnderMouse);
+			ActiveWorkspace()->GetState(&newState);
+
+			// 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()) {
+					BMessage msg(B_WINDOW_ACTIVATED);
+					msg.AddBool("active", false);
+					oldState.Front->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
+				}
+				if (newState.Front && newState.Front->Window()) {
+					BMessage msg(B_WINDOW_ACTIVATED);
+					msg.AddBool("active", true);
+					newState.Front->Window()->SendMessageToClient(&msg, B_NULL_TOKEN, false);
+				}
+			}
+
+			// calculate the region that must be invalidated/redrawn
+
+			// first, if the focus window changed, make sure the decorators reflect this state.
+			BRegion		dirtyRegion;
+			if (oldState.Focus != newState.Focus) {
+				dirtyRegion.Include(&oldState.Focus->VisibleRegion());
+				dirtyRegion.Include(&newState.Focus->VisibleRegion());
+			}
+
+#ifndef NEW_CLIPPING
+			invalidate_layer(this, dirtyRegion);
+#else
+			do_Invalidate(dirtyRegion);
+#endif
+
+#ifndef NEW_CLIPPING
+			invalidate_layer(this, fFull);
+#else
+			do_Invalidate(Bounds());
+#endif
+// TODO: DO NOT ALWAYS SEND THE FIRST MOUSE DOWN!!!
+// TODO: if B_WILL_ACCEPT_FIRST_CLICK, DO NOT ACTIVATE THE CLICKED WINDOW!!!
 			fLastLayerUnderMouse->MouseDown(evt);
 #else
 			// we are clicking a WinBorder
@@ -1235,16 +1294,13 @@ RootLayer::MouseEventHandler(int32 code, BPrivate::PortLink& msg)
 
 			evt.where.ConstrainTo(fFrame);
 
-#ifdef NEW_INPUT_HANDLING
-			ClearNotifyLayer();
-#endif
-
-			if (fLastLayerUnderMouse == NULL) {
-				CRITICAL("RootLayer::MouseEventHandler(B_MOUSE_UP) fLastLayerUnderMouse is null!\n");
-				break;
-			}
-
 			if (fLastMousePosition != evt.where) {
+#ifdef NEW_INPUT_HANDLING
+				// move cursor on screen
+				GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
+
+				_ProcessMouseMovedEvent(evt);
+#else
 				// TODO: a B_MOUSE_MOVED message might have to be generated in order to
 				// correctly trigger entered/exited view transits.
 fprintf(stderr, "mouse position changed in B_MOUSE_UP (%.1f, %.1f) from last B_MOUSE_MOVED (%.1f, %.1f)!\n",
@@ -1252,6 +1308,20 @@ fprintf(stderr, "mouse position changed in B_MOUSE_UP (%.1f, %.1f) from last B_M
 				// update on screen mouse pos
 				GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
 				fLastMousePosition	= evt.where;
+#endif
+			}
+
+#ifdef NEW_INPUT_HANDLING
+			ClearNotifyLayer();
+			if (fLastLayerUnderMouse == NULL) {
+				CRITICAL("RootLayer::MouseEventHandler(B_MOUSE_UP) fLastLayerUnderMouse is null!\n");
+				break;
+			}
+			fLastLayerUnderMouse->MouseUp(evt);
+#else
+			if (fLastLayerUnderMouse == NULL) {
+				CRITICAL("RootLayer::MouseEventHandler(B_MOUSE_UP) fLastLayerUnderMouse is null!\n");
+				break;
 			}
 
 			// TODO: what if 'fNotifyLayer' is deleted in the mean time.
@@ -1296,7 +1366,7 @@ fprintf(stderr, "mouse position changed in B_MOUSE_UP (%.1f, %.1f) from last B_M
 			}
 
 			STRACE(("MOUSE UP: at (%f, %f)\n", evt.where.x, evt.where.y));
-			
+#endif
 			// TODO: This is a quick fix to avoid the endless loop with windows created
 			// with the B_ASYNCHRONOUS_CONTROLS flag, but please someone have a look into this.
 			fButtons = 0;
@@ -1320,6 +1390,9 @@ fprintf(stderr, "mouse position changed in B_MOUSE_UP (%.1f, %.1f) from last B_M
 
 			evt.where.ConstrainTo(fFrame);
 #ifdef NEW_INPUT_HANDLING
+			// move cursor on screen
+			GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
+
 			_ProcessMouseMovedEvent(evt);
 #else
 			GetHWInterface()->MoveCursorTo(evt.where.x, evt.where.y);
@@ -1871,10 +1944,10 @@ RootLayer::SetNotifyLayer(Layer *lay, uint32 mask, uint32 options)
 
 	Lock();
 
-#if 0 // to be removed when the new "event" stuff is ready
+#if NEW_INPUT_HANDLING // to be removed when the new "event" stuff is ready
 	fNotifyLayer = lay;
 	fSavedEventMask = lay->EventMask();
-	fSavedOptions = lay->EventOptions();
+	fSavedEventOptions = lay->EventOptions();
 
 	AddToInputNotificationLists(lay, mask, options);
 
diff --git a/src/servers/app/RootLayer.h b/src/servers/app/RootLayer.h
index 6dd0aa364f..b614277b2c 100644
--- a/src/servers/app/RootLayer.h
+++ b/src/servers/app/RootLayer.h
@@ -142,7 +142,9 @@ public:
 
 private:
 friend class Desktop;
-
+#ifdef NEW_INPUT_HANDLING
+friend class WinBorder; // temporarily, I need invalidate_layer()
+#endif
 			// these are meant for Desktop class only!
 			void				AddWinBorder(WinBorder* winBorder);
 			void				RemoveWinBorder(WinBorder* winBorder);
diff --git a/src/servers/app/WinBorder.cpp b/src/servers/app/WinBorder.cpp
index a8913bba9f..d8e5360902 100644
--- a/src/servers/app/WinBorder.cpp
+++ b/src/servers/app/WinBorder.cpp
@@ -450,16 +450,134 @@ WinBorder::GetSizeLimits(float* minWidth, float* maxWidth,
 void
 WinBorder::MouseDown(const PointerEvent& event)
 {
+	if (fDecorator) {
+		click_type action = _ActionFor(event);
+		// find out where user clicked in Decorator
+		switch(action) {
+			case DEC_CLOSE:
+				fIsClosing = true;
+				fDecorator->SetClose(true);
+				STRACE_CLICK(("===> DEC_CLOSE\n"));
+				break;
+	
+			case DEC_ZOOM:
+				fIsZooming = true;
+				fDecorator->SetZoom(true);
+				STRACE_CLICK(("===> DEC_ZOOM\n"));
+				break;
+	
+			case DEC_MINIMIZE:
+				fIsMinimizing = true;
+				fDecorator->SetMinimize(true);
+				STRACE_CLICK(("===> DEC_MINIMIZE\n"));
+				break;
+
+			case DEC_DRAG:
+				fIsDragging = true;
+#ifdef NEW_INPUT_HANDLING
+GetRootLayer()->SetNotifyLayer(this, B_POINTER_EVENTS, 0UL);
+#endif
+				fLastMousePosition = event.where;
+				STRACE_CLICK(("===> DEC_DRAG\n"));
+				break;
+
+			case DEC_RESIZE:
+				fIsResizing = true;
+				fLastMousePosition = event.where;
+				STRACE_CLICK(("===> DEC_RESIZE\n"));
+				break;
+
+			case DEC_SLIDETAB:
+				fIsSlidingTab = true;
+				fLastMousePosition = event.where;
+				STRACE_CLICK(("===> DEC_SLIDETAB\n"));
+				break;
+
+			default:
+				break;
+		}
+	}
+
+	// TODO: set dirty regions!
+#ifndef NEW_CLIPPING
+	GetRootLayer()->invalidate_layer(this, VisibleRegion());
+#else
+	do_Invalidate(VisibleRegion());
+#endif
 }
 
 void
 WinBorder::MouseUp(const PointerEvent& event)
 {
+	if (fDecorator) {
+		click_type action = _ActionFor(event);
+
+		if (fIsZooming) {
+			fIsZooming	= false;
+			fDecorator->SetZoom(false);
+			if (action == DEC_ZOOM)
+				Window()->NotifyZoom();
+			return;
+		}
+		if (fIsClosing) {
+			fIsClosing	= false;
+			fDecorator->SetClose(false);
+			if (action == DEC_CLOSE)
+				Window()->NotifyQuitRequested();
+			return;
+		}
+		if (fIsMinimizing) {
+			fIsMinimizing = false;
+			fDecorator->SetMinimize(false);
+			if (action == DEC_MINIMIZE)
+				Window()->NotifyMinimize(true);
+			return;
+		}
+	}
+	fIsDragging = false;
+	fIsResizing = false;
+	fIsSlidingTab = false;
+
+	// TODO: set dirty regions!
+#ifndef NEW_CLIPPING
+	GetRootLayer()->invalidate_layer(this, VisibleRegion());
+#else
+	do_Invalidate(VisibleRegion());
+#endif
 }
 
 void
 WinBorder::MouseMoved(const PointerEvent& event, uint32 transit)
 {
+	if (fDecorator) {
+		if (fIsZooming) {
+			fDecorator->SetZoom(_ActionFor(event) == DEC_ZOOM);
+		} else if (fIsClosing) {
+			fDecorator->SetClose(_ActionFor(event) == DEC_CLOSE);
+		} else if (fIsMinimizing) {
+			fDecorator->SetMinimize(_ActionFor(event) == DEC_MINIMIZE);
+		}
+	}
+	if (fIsDragging) {
+		BPoint delta = event.where - fLastMousePosition;
+#ifndef NEW_CLIPPING
+		MoveBy(delta.x, delta.y);
+#else
+		do_MoveBy(delta.x, delta.y);
+#endif
+	}
+	if (fIsResizing) {
+		BPoint delta = event.where - fLastMousePosition;
+#ifndef NEW_CLIPPING
+		ResizeBy(delta.x, delta.y);
+#else
+		do_ResizeBy(delta.x, delta.y);
+#endif
+	}
+	if (fIsSlidingTab) {
+		// TODO: implement
+	}
+	fLastMousePosition = event.where;
 }
 
 #else
@@ -745,6 +863,7 @@ WinBorder::QuietlySetFeel(int32 feel)
 click_type
 WinBorder::_ActionFor(const PointerEvent& event) const
 {
+#ifndef NEW_INPUT_HANDING
 #ifndef NEW_CLIPPING
 	if (fTopLayer->fFullVisible.Contains(event.where))
 		return DEC_NONE;
@@ -753,6 +872,7 @@ WinBorder::_ActionFor(const PointerEvent& event) const
 	if (fTopLayer->fFullVisible2.Contains(event.where))
 		return DEC_NONE;
 	else
+#endif
 #endif
 	if (fDecorator)
 		return fDecorator->Clicked(event.where, event.buttons, event.modifiers);
diff --git a/src/servers/app/WinBorder.h b/src/servers/app/WinBorder.h
index be6123af14..93926a5997 100644
--- a/src/servers/app/WinBorder.h
+++ b/src/servers/app/WinBorder.h
@@ -85,6 +85,8 @@ class WinBorder : public Layer {
 	virtual	void				MouseDown(const PointerEvent& evt);
 	virtual	void				MouseUp(const PointerEvent& evt);
 	virtual	void				MouseMoved(const PointerEvent& evt, uint32 transit);
+			click_type			ActionFor(const PointerEvent& evt)
+									{ return _ActionFor(evt); }
 #else
 			click_type			MouseDown(const PointerEvent& evt);
 			void				MouseMoved(const PointerEvent& evt);
diff --git a/src/servers/app/Workspace.cpp b/src/servers/app/Workspace.cpp
index b547d8a443..1681e7361d 100644
--- a/src/servers/app/Workspace.cpp
+++ b/src/servers/app/Workspace.cpp
@@ -219,7 +219,36 @@ Workspace::Active() const
 	//return fActiveItem ? fActiveItem->layerPtr: NULL;
 }
 
+void
+Workspace::GetState(Workspace::State *state) const
+{
+	state->Front = Front();
+	state->Focus = Focus();
 
+	ListData *cursor = fBottomItem;
+	while (cursor) {
+		if (!cursor->layerPtr->IsHidden())
+			state->WindowList.AddItem(cursor->layerPtr);
+		cursor = cursor->upperItem;
+	}
+}
+bool
+Workspace::AttemptToSetFront(WinBorder *newFront)
+{
+	return MoveToFront(newFront);
+}
+
+bool
+Workspace::AttemptToSetFocus(WinBorder *newFocus)
+{
+	return SetFocus(newFocus);
+}
+
+bool
+Workspace::AttemptToMoveToBack(WinBorder *newBack)
+{
+	return MoveToBack(newBack);
+}
 /*
 	\brief	This method provides you the list of visible windows in this workspace.
 	\param	list The list of visible WinBorders found in this workspace.
diff --git a/src/servers/app/Workspace.h b/src/servers/app/Workspace.h
index 941d67c8fc..96fd151aab 100644
--- a/src/servers/app/Workspace.h
+++ b/src/servers/app/Workspace.h
@@ -49,6 +49,13 @@ struct ListData
 
 class Workspace {
 	public:
+		class State {
+			public:
+							State() : Front(NULL), Focus(NULL), WindowList(40) { }
+				WinBorder*	Front;
+				WinBorder*	Focus;
+				BList		WindowList;
+		};
 								Workspace(	const int32 ID,
 											const uint32 colorspace,
 											const RGBColor& BGColor);
@@ -63,6 +70,10 @@ class Workspace {
 			WinBorder*			Focus() const;
 			WinBorder*			Front() const;
 			WinBorder*			Active() const;
+			void				GetState(Workspace::State *state) const;
+			bool				AttemptToSetFront(WinBorder *newFront);
+			bool				AttemptToSetFocus(WinBorder *newFocus);
+			bool				AttemptToMoveToBack(WinBorder *newBack);
 
 			bool				GetWinBorderList(void **list, int32 *itemCount ) const;