diff --git a/gnome/gdesktop.c b/gnome/gdesktop.c
index a782dc297..60b26877a 100644
--- a/gnome/gdesktop.c
+++ b/gnome/gdesktop.c
@@ -55,6 +55,13 @@ shaped_icon_new_from_file (char *file, int extra_events)
 	GdkImlibImage *im;
 	GdkWindowPrivate *private;
 
+	if (!g_file_exists (file))
+		return;
+	
+	im = gdk_imlib_load_image (file);
+	if (!im)
+		return NULL;
+
 	gtk_widget_push_visual (gdk_imlib_get_visual ());
 	gtk_widget_push_colormap (gdk_imlib_get_colormap ());
 
@@ -65,8 +72,6 @@ shaped_icon_new_from_file (char *file, int extra_events)
 	gtk_widget_pop_colormap ();
 	gtk_widget_pop_visual ();
 
-	im = gdk_imlib_load_image (file);
-
 	gtk_widget_set_usize (window, im->rgb_width, im->rgb_height);
 	gtk_widget_realize (window);
 	gdk_window_resize (window->window, im->rgb_width, im->rgb_height);
@@ -163,9 +168,9 @@ dentry_execute (desktop_icon_t *di)
 	 * invocation 
 	 */
 
-	if (strcmp (di->dentry->type, "Directory") == 0)
-		do_cd (di->dentry->exec, cd_exact);
-	else 
+	if (strcmp (di->dentry->type, "Directory") == 0){
+		new_panel_at (di->dentry->exec);
+	} else 
 		gnome_desktop_entry_launch (dentry);
 }
 
@@ -205,9 +210,25 @@ desktop_load_dentry (char *filename)
 	if (dentry->icon)
 		window = shaped_icon_new_from_file (dentry->icon, GDK_BUTTON_PRESS_MASK);
 	else {
-		window = gtk_window_new (GTK_WINDOW_POPUP);
-		gtk_widget_set_usize (window, 20, 20);
+		static char *default_icon_path;
+		static char exists;
+		
+		if (!default_icon_path){
+			default_icon_path = gnome_unconditional_pixmap_file ("launcher-program.xpm");
+			if (g_file_exists (default_icon_path))
+				exists = 1;
+		}
+
+		if (exists)
+			window = shaped_icon_new_from_file (default_icon_path, GDK_BUTTON_PRESS_MASK);
+		else {
+			window = gtk_window_new (GTK_WINDOW_POPUP);
+			gtk_widget_set_usize (window, 20, 20);
+		}
 	}
+	if (!window)
+		return;
+	
 	di = xmalloc (sizeof (desktop_icon_t), "desktop_load_entry");
 	di->dentry = dentry;
 	di->widget = window;
@@ -270,7 +291,8 @@ get_desktop_icon (char *pathname)
 static void
 desktop_file_exec (GtkWidget *widget, GdkEventButton *event, desktop_icon_t *di)
 {
-	printf ("YOu just discovered that regex_command ('open') is not being invoked yet\n");
+	if (event->type == GDK_2BUTTON_PRESS && event->button == 1)
+		printf ("YOu just discovered that regex_command ('open') is not being invoked yet\n");
 }
 
 static void
@@ -335,10 +357,12 @@ desktop_load (char *desktop_dir)
 				desktop_create_directory_entry (dir_full, full, dent->d_name);
 			
 			free (dir_full);
-		} else if (!strstr (dent->d_name, ".desktop"))
-			desktop_load_dentry (full);
-		else
-			desktop_create_launch_entry (full, dent->d_name);
+		} else {
+			if (strstr (dent->d_name, ".desktop"))
+				desktop_load_dentry (full);
+			else
+				desktop_create_launch_entry (full, dent->d_name);
+		}
 		
 		free (full);
 	}
diff --git a/gnome/glayout.c b/gnome/glayout.c
index 25d609a5a..ade7c8b0e 100644
--- a/gnome/glayout.c
+++ b/gnome/glayout.c
@@ -15,7 +15,7 @@ typedef struct {
 	Widget *other;
 } PanelContainer;
 
-GList *containers;
+GList *containers = 0;
 
 int output_lines = 0;
 int command_prompt = 1;
@@ -77,6 +77,20 @@ set_current_panel (int index)
 	current_panel_ptr = p->data; 
 }
 
+void
+set_new_current_panel (WPanel *panel)
+{
+	GList *p;
+
+	other_panel_ptr = current_panel_ptr;
+	for (p = containers; p; p = p->next){
+		if (((PanelContainer *)p->data)->panel == panel){
+			printf ("Setting current panel to %p\n", p);
+			current_panel_ptr = p->data;
+		}
+	}
+}
+
 void
 print_vfs_message (char *msg)
 {
@@ -172,27 +186,19 @@ GnomeUIInfo gnome_panel_menu [] = {
 	{ GNOME_APP_UI_ENDOFINFO, 0, 0 }
 };
 
-int
-dialog_panel_callback (struct Dlg_head *h, int id, int msg)
-{
-	return default_dlg_callback (h, id, msg);
-}
-
 void
 gnome_init_panels ()
 {
-	containers = g_list_alloc ();
 	current_panel_ptr = NULL;
 	other_panel_ptr = NULL;
 }
 
-void
-create_container (char *name)
+WPanel *
+create_container (Dlg_head *h, char *name)
 {
 	PanelContainer *container = g_new (PanelContainer, 1);
 	WPanel     *panel;
-	GtkWidget *app, *vbox;
-	Dlg_head *h;
+	GtkWidget  *app, *vbox;
 	int slot;
 
 	container->splitted = 0;
@@ -206,21 +212,45 @@ create_container (char *name)
 	gtk_widget_show (app);
 
 	panel = panel_new (name);
+
+	/* Ultra nasty hack follows:
+	 * I am setting the panel->widget.wdata value here before the
+	 * panel X stuff gets created in the INIT message section of the
+	 * widget.  There I put a pointer to the vbox where the panel
+	 * should pack itself
+	 */
+	panel->widget.wdata = (widget_data) vbox;
 	container->panel = panel;
-	containers = g_list_append (containers, container);
+	if (!containers){
+		containers = g_list_alloc ();
+		containers->data = container;
+	} else  
+		containers = g_list_append (containers, container);
 
 	if (!current_panel_ptr){
 		current_panel_ptr = container;
 	} else if (!other_panel_ptr)
 		other_panel_ptr = container;
-	
-	h = create_dlg (0, 0, 24, 80, 0, dialog_panel_callback, "[panel]", "midnight", DLG_NO_TED);
-	add_widget (h, panel);
-	bind_gtk_keys (GTK_WIDGET (app), h);
-	
-	gtk_object_set_data (GTK_OBJECT (h->wdata), "parent-container", vbox);
 
-	run_dlg (h);
+	bind_gtk_keys (GTK_WIDGET (app), h);
+	return panel;
+}
+
+void
+new_panel_at (char *dir)
+{
+	WPanel *panel;
+	Dlg_head *h = current_panel_ptr->panel->widget.parent;
+	
+	mc_chdir (dir);
+	panel = create_container (h, "Other");
+	add_widget (h, panel);
+
+	/* Gross hack 2: add_widget should know that the dialog is already
+	 * executing and shold call the init method manually.  We do so instead:
+	 */
+	panel->widget.callback (h, panel, WIDGET_INIT, 0);
+	set_new_current_panel (panel);
 }
 
 void
diff --git a/gnome/gmain.c b/gnome/gmain.c
index 988347f78..49336edb4 100644
--- a/gnome/gmain.c
+++ b/gnome/gmain.c
@@ -234,19 +234,28 @@ setup_sigwinch ()
 {
 }
 
+int
+dialog_panel_callback (struct Dlg_head *h, int id, int msg)
+{
+	return default_dlg_callback (h, id, msg);
+}
+
 void
 create_panels (void)
 {
 	Dlg_head *h;
-
+	WPanel *panel;
+	
 	start_desktop ();
 	cmdline = command_new (0, 0, 0);
 	the_hint = label_new (0, 0, 0, NULL);
 
 	gnome_init_panels ();
-	create_container ("My Panel");
-
+	
+	h = create_dlg (0, 0, 24, 80, 0, dialog_panel_callback, "[panel]", "midnight", DLG_NO_TED);
+	
+	panel = create_container (h, "My Panel");
+	add_widget (h, panel);
 	set_current_panel (0);
+	run_dlg (h);
 }
-
-
diff --git a/gnome/gscreen.c b/gnome/gscreen.c
index f403c0ded..9d1581a59 100644
--- a/gnome/gscreen.c
+++ b/gnome/gscreen.c
@@ -675,8 +675,8 @@ void
 x_create_panel (Dlg_head *h, widget_data parent, WPanel *panel)
 {
 	g_panel_contents *g = g_new (g_panel_contents, 1);
-	GtkWidget *table, *status_line, *filter_w, *statusbar;
-
+	GtkWidget *table, *status_line, *filter_w, *statusbar, *vbox;
+	
 	g->table = gtk_table_new (2, 1, 0);
 	gtk_widget_show (g->table);
 	
@@ -711,11 +711,14 @@ x_create_panel (Dlg_head *h, widget_data parent, WPanel *panel)
 			  0, 0, 0);
 	
 	gtk_widget_show (g->table);
-	panel->widget.wdata = (widget_data) g;
 
+	/* Ultra nasty hack: pull the vbox from wdata */
+	vbox =  GTK_WIDGET (panel->widget.wdata);
+	
+	panel->widget.wdata = (widget_data) g;
+	
 	/* Now, insert our table in our parent */
-	gtk_container_add (GTK_CONTAINER (gtk_object_get_data (GTK_OBJECT (h->wdata), "parent-container")),
-			   g->table);
+	gtk_container_add (GTK_CONTAINER (vbox), g->table);
 	
 	if (!pixmaps_ready){
 		if (!GTK_WIDGET_REALIZED (g->list))
diff --git a/gnome/gscreen.h b/gnome/gscreen.h
index 2617f5b38..4892e4d3f 100644
--- a/gnome/gscreen.h
+++ b/gnome/gscreen.h
@@ -17,4 +17,6 @@ typedef struct {
 	GtkWidget *status;
 } g_panel_contents;
 
+WPanel *create_container (Dlg_head *h, char *str);
+
 #endif /* __GSCREEN_H */