diff --git a/src/apps/launchbox/MainWindow.cpp b/src/apps/launchbox/MainWindow.cpp
index 8ae1df7fa7..ad46b7d302 100644
--- a/src/apps/launchbox/MainWindow.cpp
+++ b/src/apps/launchbox/MainWindow.cpp
@@ -31,7 +31,8 @@ MainWindow::MainWindow(const char* name, BRect frame)
 	: BWindow(frame, name,
 			  B_TITLED_WINDOW_LOOK, B_NORMAL_WINDOW_FEEL,
 			  B_ASYNCHRONOUS_CONTROLS | B_NOT_ZOOMABLE
-			  | B_WILL_ACCEPT_FIRST_CLICK | B_NO_WORKSPACE_ACTIVATION),
+			  | B_WILL_ACCEPT_FIRST_CLICK | B_NO_WORKSPACE_ACTIVATION
+			  | B_AUTO_UPDATE_SIZE_LIMITS),
 	  fSettings(new BMessage('sett')),
 	  fPadView(new PadView("pad view")),
 	  fLastID(0),
@@ -42,14 +43,8 @@ MainWindow::MainWindow(const char* name, BRect frame)
 	bool buttonsAdded = false;
 	if (load_settings(fSettings, "main_settings", "LaunchBox") >= B_OK)
 		buttonsAdded = LoadSettings(fSettings);
-	if (!buttonsAdded) {
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-	}
+	if (!buttonsAdded)
+		_AddDefaultButtons();
 
 	SetLayout(new BGroupLayout(B_HORIZONTAL));
 	AddChild(fPadView);
@@ -60,7 +55,8 @@ MainWindow::MainWindow(const char* name, BRect frame, BMessage* settings)
 	: BWindow(frame, name,
 			  B_TITLED_WINDOW_LOOK, B_NORMAL_WINDOW_FEEL,
 			  B_ASYNCHRONOUS_CONTROLS | B_NOT_ZOOMABLE
-			  | B_WILL_ACCEPT_FIRST_CLICK | B_NO_WORKSPACE_ACTIVATION),
+			  | B_WILL_ACCEPT_FIRST_CLICK | B_NO_WORKSPACE_ACTIVATION
+			  | B_AUTO_UPDATE_SIZE_LIMITS),
 	  fSettings(settings),
 	  fPadView(new PadView("pad view")),
 	  fLastID(0),
@@ -68,14 +64,8 @@ MainWindow::MainWindow(const char* name, BRect frame, BMessage* settings)
 	  fAutoRaise(false),
 	  fShowOnAllWorkspaces(true)
 {
-	if (!LoadSettings(settings)) {
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-		fPadView->AddButton(new LaunchButton("launch button", fLastID++, NULL,
-											new BMessage(MSG_LAUNCH)));
-	}
+	if (!LoadSettings(settings))
+		_AddDefaultButtons();
 
 	SetLayout(new BGroupLayout(B_HORIZONTAL));
 	AddChild(fPadView);
@@ -317,6 +307,12 @@ MainWindow::LoadSettings(const BMessage* message)
 	window_look look;
 	if (message->FindInt32("window look", (int32*)&look) == B_OK)
 		SetLook(look);
+
+	// restore orientation
+	int32 orientation;
+	if (message->FindInt32("orientation", &orientation) == B_OK)
+		fPadView->SetOrientation((enum orientation)orientation);
+
 	// restore buttons
 	const char* path;
 	bool buttonAdded = false;
@@ -381,6 +377,11 @@ MainWindow::SaveSettings(BMessage* message)
 	if (message->ReplaceInt32("window look", Look()) != B_OK)
 		message->AddInt32("window look", Look());
 
+	// store orientation
+	if (message->ReplaceInt32("orientation",
+			(int32)fPadView->Orientation()) != B_OK)
+		message->AddInt32("orientation", (int32)fPadView->Orientation());
+
 	// store buttons
 	message->RemoveName("path");
 	message->RemoveName("description");
@@ -473,3 +474,44 @@ MainWindow::_AdjustLocation(BRect frame)
 	ResizeTo(frame.Width(), frame.Height());
 }
 
+void
+MainWindow::_AddDefaultButtons()
+{
+	// Mail
+	LaunchButton* button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Be-MAIL", true);
+
+	// StyledEdit
+	button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Haiku-StyledEdit", true);
+
+	// ShowImage
+	button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Haiku-ShowImage", true);
+
+	// MediaPlayer
+	button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Haiku-MediaPlayer", true);
+
+	// DeskCalc
+	button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Haiku-DeskCalc", true);
+
+	// Terminal
+	button = new LaunchButton("launch button", fLastID++, NULL,
+		new BMessage(MSG_LAUNCH));
+	fPadView->AddButton(button);
+	button->SetTo("application/x-vnd.Haiku-Terminal", true);
+}
+
+
diff --git a/src/apps/launchbox/MainWindow.h b/src/apps/launchbox/MainWindow.h
index 9dd0420312..e7198d3430 100644
--- a/src/apps/launchbox/MainWindow.h
+++ b/src/apps/launchbox/MainWindow.h
@@ -62,6 +62,7 @@ class MainWindow : public BWindow {
  private:
  			void				_GetLocation();
 			void				_AdjustLocation(BRect frame);
+			void				_AddDefaultButtons();
 
 	BMessage*					fSettings;
 	PadView*					fPadView;
diff --git a/src/apps/launchbox/PadView.cpp b/src/apps/launchbox/PadView.cpp
index 904d1b3018..31103f276c 100644
--- a/src/apps/launchbox/PadView.cpp
+++ b/src/apps/launchbox/PadView.cpp
@@ -24,18 +24,23 @@
 
 bigtime_t kActivationDelay = 40000;
 
+enum {
+	MSG_TOGGLE_LAYOUT	= 'tgll'
+};
+
 // constructor
 PadView::PadView(const char* name)
-	: BView(name, B_WILL_DRAW | B_FULL_UPDATE_ON_RESIZE,
-			new BGroupLayout(B_VERTICAL, 4)),
+	: BView(name, B_WILL_DRAW | B_FULL_UPDATE_ON_RESIZE, NULL),
 	  fDragging(false),
-	  fClickTime(0)
+	  fClickTime(0),
+	  fButtonLayout(new BGroupLayout(B_VERTICAL, 4))
 {
 	SetViewColor(B_TRANSPARENT_32_BIT);
 	SetLowColor(ui_color(B_PANEL_BACKGROUND_COLOR));
 	get_click_speed(&kActivationDelay); 
 
-	GetLayout()->AddItem(BSpaceLayoutItem::CreateVerticalStrut(5));
+	fButtonLayout->SetInsets(2, 7, 2, 2);
+	SetLayout(fButtonLayout);
 }
 
 // destructor
@@ -62,9 +67,25 @@ PadView::Draw(BRect updateRect)
 	r.InsetBy(1.0, 1.0);
 	// dots along top
 	BPoint dot = r.LeftTop();
-	BPoint stop = r.RightTop();
+	int32 current;
+	int32 stop;
+	BPoint offset;
+	BPoint next;
+	if (Orientation() == B_VERTICAL) {
+		current = (int32)dot.x;
+		stop = (int32)r.right;
+		offset = BPoint(0, 1);
+		next = BPoint(1, -4);
+		r.top += 5.0;
+	} else {
+		current = (int32)dot.y;
+		stop = (int32)r.bottom;
+		offset = BPoint(1, 0);
+		next = BPoint(-4, 1);
+		r.left += 5.0;
+	}
 	int32 num = 1;
-	while (dot.x <= stop.x) {
+	while (current <= stop) {
 		rgb_color col1;
 		rgb_color col2;
 		switch (num) {
@@ -85,22 +106,21 @@ PadView::Draw(BRect updateRect)
 		SetHighColor(col1);
 		StrokeLine(dot, dot, B_SOLID_HIGH);
 		SetHighColor(col2);
-		dot.y++;
+		dot += offset;
 		StrokeLine(dot, dot, B_SOLID_HIGH);
-		dot.y++;
+		dot += offset;
 		StrokeLine(dot, dot, B_SOLID_LOW);
-		dot.y++;
+		dot += offset;
 		SetHighColor(col1);
 		StrokeLine(dot, dot, B_SOLID_HIGH);
-		dot.y++;
+		dot += offset;
 		SetHighColor(col2);
 		StrokeLine(dot, dot, B_SOLID_HIGH);
-		dot.y -= 4.0;
 		// next pixel
 		num++;
-		dot.x++;
+		dot += next;
+		current++;
 	}
-	r.top += 5.0;
 	FillRect(r, B_SOLID_LOW);
 }
 
@@ -109,6 +129,15 @@ void
 PadView::MessageReceived(BMessage* message)
 {
 	switch (message->what) {
+		case MSG_TOGGLE_LAYOUT:
+			if (fButtonLayout->Orientation() == B_HORIZONTAL) {
+				fButtonLayout->SetInsets(2, 7, 2, 2);
+				fButtonLayout->SetOrientation(B_VERTICAL);
+			} else {
+				fButtonLayout->SetInsets(7, 2, 2, 2);
+				fButtonLayout->SetOrientation(B_HORIZONTAL);
+			}
+			break;
 		default:
 			BView::MessageReceived(message);
 			break;
@@ -221,18 +250,17 @@ PadView::MouseMoved(BPoint where, uint32 transit, const BMessage* dragMessage)
 void
 PadView::AddButton(LaunchButton* button, LaunchButton* beforeButton)
 {
-	BLayout* layout = GetLayout();
 	if (beforeButton)
-		layout->AddView(layout->IndexOfView(beforeButton), button);
+		fButtonLayout->AddView(fButtonLayout->IndexOfView(beforeButton), button);
 	else
-		layout->AddView(button);
+		fButtonLayout->AddView(button);
 }
 
 // RemoveButton
 bool
 PadView::RemoveButton(LaunchButton* button)
 {
-	return GetLayout()->RemoveView(button);
+	return fButtonLayout->RemoveView(button);
 }
 
 // ButtonAt
@@ -276,19 +304,29 @@ PadView::DisplayMenu(BPoint where, LaunchButton* button) const
 			item = new BMenuItem("Remove Button", message);
 			item->SetTarget(window);
 			menu->AddItem(item);
-			if (button->Ref()) {
-				message = new BMessage(MSG_SET_DESCRIPTION);
-				message->AddPointer("be:source", (void*)button);
-				item = new BMenuItem("Set Description"B_UTF8_ELLIPSIS, message);
-				item->SetTarget(window);
-				menu->AddItem(item);
-			}
+// TODO: disabled because Haiku does not yet support tool tips
+//			if (button->Ref()) {
+//				message = new BMessage(MSG_SET_DESCRIPTION);
+//				message->AddPointer("be:source", (void*)button);
+//				item = new BMenuItem("Set Description"B_UTF8_ELLIPSIS, message);
+//				item->SetTarget(window);
+//				menu->AddItem(item);
+//			}
 		}
 		menu->AddSeparatorItem();
 		// window settings
 		BMenu* settingsM = new BMenu("Settings");
 		settingsM->SetFont(be_plain_font);
 
+		const char* toggleLayoutLabel;
+		if (fButtonLayout->Orientation() == B_HORIZONTAL)
+			toggleLayoutLabel = "Vertical Layout";
+		else
+			toggleLayoutLabel = "Horizontal Layout";
+		item = new BMenuItem(toggleLayoutLabel, new BMessage(MSG_TOGGLE_LAYOUT));
+		item->SetTarget(this);
+		settingsM->AddItem(item);
+
 		uint32 what = window->Look() == B_BORDERED_WINDOW_LOOK ? MSG_SHOW_BORDER : MSG_HIDE_BORDER;
 		item = new BMenuItem("Show Window Border", new BMessage(what));
 		item->SetTarget(window);
@@ -348,3 +386,24 @@ PadView::DisplayMenu(BPoint where, LaunchButton* button) const
 	}
 }
 
+// SetOrientation
+void
+PadView::SetOrientation(enum orientation orientation)
+{
+	if (orientation == B_VERTICAL) {
+		fButtonLayout->SetInsets(2, 7, 2, 2);
+		fButtonLayout->SetOrientation(B_VERTICAL);
+	} else {
+		fButtonLayout->SetInsets(7, 2, 2, 2);
+		fButtonLayout->SetOrientation(B_HORIZONTAL);
+	}
+}
+
+// Orientation
+enum orientation
+PadView::Orientation() const
+{
+	return fButtonLayout->Orientation();
+}
+
+
diff --git a/src/apps/launchbox/PadView.h b/src/apps/launchbox/PadView.h
index 30a372ae89..161e53a946 100644
--- a/src/apps/launchbox/PadView.h
+++ b/src/apps/launchbox/PadView.h
@@ -11,6 +11,7 @@
 
 #include <View.h>
 
+class BGroupLayout;
 class LaunchButton;
 
 class PadView : public BView {
@@ -35,10 +36,14 @@ class PadView : public BView {
 			void				DisplayMenu(BPoint where,
 											LaunchButton* button = NULL) const;
 
+			void				SetOrientation(enum orientation orientation);
+			enum orientation	Orientation() const;
+
  private:
 			BPoint				fDragOffset;
 			bool				fDragging;
 			bigtime_t			fClickTime;
+			BGroupLayout*		fButtonLayout;
 };
 
 #endif // PAD_VIEW_H