diff --git a/res/drawable-hdpi/portal_container_holo.9.png b/res/drawable-hdpi/portal_container_holo.9.png
index e2a1bd5..ab846f6 100644
--- a/res/drawable-hdpi/portal_container_holo.9.png
+++ b/res/drawable-hdpi/portal_container_holo.9.png
Binary files differ
diff --git a/res/drawable-mdpi/portal_container_holo.9.png b/res/drawable-mdpi/portal_container_holo.9.png
index 7eef5d7..56a5b87 100644
--- a/res/drawable-mdpi/portal_container_holo.9.png
+++ b/res/drawable-mdpi/portal_container_holo.9.png
Binary files differ
diff --git a/res/values/config.xml b/res/values/config.xml
index 70ee423..5b73769 100644
--- a/res/values/config.xml
+++ b/res/values/config.xml
@@ -67,7 +67,7 @@
     <integer name="config_dropAnimMaxDuration">400</integer>
 
     <!-- The duration of the UserFolder opening and closing animation -->
-    <integer name="config_folderAnimDuration">100</integer>
+    <integer name="config_folderAnimDuration">120</integer>
 
     <!-- The distance at which the animation should take the max duration -->
     <integer name="config_dropAnimMaxDist">800</integer>
diff --git a/src/com/android/launcher2/DragLayer.java b/src/com/android/launcher2/DragLayer.java
index 0ce153e..d76b902 100644
--- a/src/com/android/launcher2/DragLayer.java
+++ b/src/com/android/launcher2/DragLayer.java
@@ -32,6 +32,8 @@
 import android.view.View;
 import android.view.ViewParent;
 import android.view.animation.DecelerateInterpolator;
+import android.view.animation.Interpolator;
+import android.view.animation.LinearInterpolator;
 import android.widget.FrameLayout;
 import android.widget.ImageView;
 
@@ -57,8 +59,10 @@
     // Variables relating to animation of views after drop
     private ValueAnimator mDropAnim = null;
     private TimeInterpolator mQuintEaseOutInterpolator = new DecelerateInterpolator(2.5f);
-    private int[] mDropViewPos = new int[] { -1, -1 };
     private View mDropView = null;
+    private int[] mDropViewPos = new int[2];
+    private float mDropViewScale;
+    private float mDropViewAlpha;
 
     /**
      * Used to create a new DragLayer from XML.
@@ -181,17 +185,19 @@
         }
     }
 
-    public void getViewLocationRelativeToSelf(View v, int[] location) {
-        getLocationOnScreen(location);
-        int x = location[0];
-        int y = location[1];
+    public void getViewRectRelativeToSelf(View v, Rect r) {
+        int[] loc = new int[2];
+        getLocationOnScreen(loc);
+        int x = loc[0];
+        int y = loc[1];
 
-        v.getLocationOnScreen(location);
-        int vX = location[0];
-        int vY = location[1];
+        v.getLocationOnScreen(loc);
+        int vX = loc[0];
+        int vY = loc[1];
 
-        location[0] = vX - x;
-        location[1] = vY - y;
+        int left = vX - x;
+        int top = vY - y;
+        r.set(left, top, left + v.getMeasuredWidth(), top + v.getMeasuredHeight());
     }
 
     @Override
@@ -308,55 +314,59 @@
         ((CellLayoutChildren) child.getParent()).measureChild(child);
         CellLayout.LayoutParams lp =  (CellLayout.LayoutParams) child.getLayoutParams();
 
-        int[] loc = new int[2];
-        getViewLocationRelativeToSelf(dragView, loc);
+        Rect r = new Rect();
+        getViewRectRelativeToSelf(dragView, r);
 
         int coord[] = new int[2];
         coord[0] = lp.x;
         coord[1] = lp.y;
         getDescendantCoordRelativeToSelf(child, coord);
 
-        final int fromX = loc[0] + (dragView.getWidth() - child.getMeasuredWidth())  / 2;
-        final int fromY = loc[1] + (dragView.getHeight() - child.getMeasuredHeight())  / 2;
-        final int dx = coord[0] - fromX;
-        final int dy = coord[1] - fromY;
-
+        final int fromX = r.left + (dragView.getWidth() - child.getMeasuredWidth())  / 2;
+        final int fromY = r.top + (dragView.getHeight() - child.getMeasuredHeight())  / 2;
         child.setVisibility(INVISIBLE);
-        animateViewIntoPosition(child, fromX, fromY, dx, dy);
+        animateViewIntoPosition(child, fromX, fromY, coord[0], coord[1]);
     }
 
     private void animateViewIntoPosition(final View view, final int fromX, final int fromY,
-            final int dX, final int dY) {
+            final int toX, final int toY) {
+        Rect from = new Rect(fromX, fromY, fromX + view.getMeasuredWidth(), fromY + view.getMeasuredHeight());
+        Rect to = new Rect(toX, toY, toX + view.getMeasuredWidth(), toY + view.getMeasuredHeight());
+        animateView(view, from, to, 1f, -1);
+    }
 
+    public void animateView(final View view, final Rect from, final Rect to,
+            final float finalAlpha, int duration) {
+        animateView(view, from, to, finalAlpha, 1.0f, duration, null, null);
+    }
+
+    public void animateView(final View view, final Rect from, final Rect to, final float finalAlpha,
+            final float finalScale, int duration, final Interpolator motionInterpolator,
+            final Interpolator alphaInterpolator) {
         // Calculate the duration of the animation based on the object's distance
-        final float dist = (float) Math.sqrt(dX*dX + dY*dY);
+        final float dist = (float) Math.sqrt(Math.pow(to.left - from.left, 2) +
+                Math.pow(to.top - from.top, 2));
         final Resources res = getResources();
         final float maxDist = (float) res.getInteger(R.integer.config_dropAnimMaxDist);
-        int duration = res.getInteger(R.integer.config_dropAnimMaxDuration);
-        if (dist < maxDist) {
-            duration *= mQuintEaseOutInterpolator.getInterpolation(dist / maxDist);
+
+        // If duration < 0, this is a cue to compute the duration based on the distance
+        if (duration < 0) {
+            duration = res.getInteger(R.integer.config_dropAnimMaxDuration);
+            if (dist < maxDist) {
+                duration *= mQuintEaseOutInterpolator.getInterpolation(dist / maxDist);
+            }
         }
 
         if (mDropAnim != null) {
             mDropAnim.end();
         }
+
+        mDropView = view;
+        final float initialAlpha = view.getAlpha();
         mDropAnim = new ValueAnimator();
-        mDropAnim.setInterpolator(mQuintEaseOutInterpolator);
-
-        // The view is invisible during the animation; we render it manually.
-        mDropAnim.addListener(new AnimatorListenerAdapter() {
-            public void onAnimationStart(Animator animation) {
-                // Set this here so that we don't render it until the animation begins
-                mDropView = view;
-            }
-
-            public void onAnimationEnd(Animator animation) {
-                if (mDropView != null) {
-                    mDropView.setVisibility(View.VISIBLE);
-                    mDropView = null;
-                }
-            }
-        });
+        if (alphaInterpolator == null || motionInterpolator == null) {
+            mDropAnim.setInterpolator(mQuintEaseOutInterpolator);
+        }
 
         mDropAnim.setDuration(duration);
         mDropAnim.setFloatValues(0.0f, 1.0f);
@@ -370,12 +380,27 @@
                 invalidate(mDropViewPos[0], mDropViewPos[1],
                         mDropViewPos[0] + width, mDropViewPos[1] + height);
 
-                mDropViewPos[0] = fromX + (int) (percent * dX + 0.5f);
-                mDropViewPos[1] = fromY + (int) (percent * dY + 0.5f);
+                float alphaPercent = alphaInterpolator == null ? percent :
+                        alphaInterpolator.getInterpolation(percent);
+                float motionPercent = motionInterpolator == null ? percent :
+                        motionInterpolator.getInterpolation(percent);
+
+                mDropViewPos[0] = from.left + (int) ((to.left - from.left) * motionPercent);
+                mDropViewPos[1] = from.top + (int) ((to.top - from.top) * motionPercent);
+                mDropViewScale = percent * finalScale + (1 - percent);
+                mDropViewAlpha = alphaPercent * finalAlpha + (1 - alphaPercent) * initialAlpha;
                 invalidate(mDropViewPos[0], mDropViewPos[1],
                         mDropViewPos[0] + width, mDropViewPos[1] + height);
             }
         });
+        mDropAnim.addListener(new AnimatorListenerAdapter() {
+            public void onAnimationEnd(Animator animation) {
+                if (mDropView != null) {
+                    mDropView.setVisibility(View.VISIBLE);
+                    mDropView = null;
+                }
+            }
+        });
         mDropAnim.start();
     }
 
@@ -388,7 +413,12 @@
             canvas.save(Canvas.MATRIX_SAVE_FLAG);
             final int xPos = mDropViewPos[0] - mDropView.getScrollX();
             final int yPos = mDropViewPos[1] - mDropView.getScrollY();
+            int width = mDropView.getMeasuredWidth();
+            int height = mDropView.getMeasuredHeight();
             canvas.translate(xPos, yPos);
+            canvas.translate((1 - mDropViewScale) * width / 2, (1 - mDropViewScale) * height / 2);
+            canvas.scale(mDropViewScale, mDropViewScale);
+            mDropView.setAlpha(mDropViewAlpha);
             mDropView.draw(canvas);
             canvas.restore();
         }
diff --git a/src/com/android/launcher2/DragView.java b/src/com/android/launcher2/DragView.java
index 4cc2c55..d4dc785 100644
--- a/src/com/android/launcher2/DragView.java
+++ b/src/com/android/launcher2/DragView.java
@@ -195,6 +195,16 @@
         invalidate();
     }
 
+    @Override
+    public void setAlpha(float alpha) {
+        super.setAlpha(alpha);
+        if (mPaint == null) {
+            mPaint = new Paint();
+        }
+        mPaint.setAlpha((int) (255 * alpha));
+        invalidate();
+    }
+
     /**
      * Create a window containing this view and show it.
      *
@@ -242,7 +252,11 @@
     }
 
     void remove() {
-        mWindowManager.removeView(this);
+        post(new Runnable() {
+            public void run() {
+                mWindowManager.removeView(DragView.this);
+            }
+        });
     }
 
     int[] getPosition(int[] result) {
diff --git a/src/com/android/launcher2/Folder.java b/src/com/android/launcher2/Folder.java
index 37368b9..13815ad 100644
--- a/src/com/android/launcher2/Folder.java
+++ b/src/com/android/launcher2/Folder.java
@@ -86,6 +86,7 @@
     private int mMaxCountX;
     private int mMaxCountY;
     private Rect mNewSize = new Rect();
+    private Rect mIconRect = new Rect();
     private ArrayList<View> mItemsInReadingOrder = new ArrayList<View>();
     private Drawable mIconDrawable;
     boolean mItemsInvalidated = false;
@@ -134,6 +135,7 @@
         if (sHintText == null) {
             sHintText = res.getString(R.string.folder_hint_text);
         }
+        setLayerType(LAYER_TYPE_HARDWARE, null);
     }
 
     @Override
@@ -141,7 +143,6 @@
         super.onFinishInflate();
         mContent = (CellLayout) findViewById(R.id.folder_content);
         mContent.setGridSize(0, 0);
-        mContent.enableHardwareLayers();
         mFolderName = (TextView) findViewById(R.id.folder_name);
 
         // We find out how tall the text view wants to be (it is set to wrap_content), so that
@@ -372,9 +373,8 @@
      * to its associated FolderIcon. This allows for a seamless transition into the expanded state.
      */
     private void positionAndSizeAsIcon() {
-        if (!(getParent() instanceof CellLayoutChildren)) return;
+        if (!(getParent() instanceof DragLayer)) return;
 
-        DragLayer.LayoutParams iconLp = (DragLayer.LayoutParams) mFolderIcon.getLayoutParams();
         DragLayer.LayoutParams lp = (DragLayer.LayoutParams) getLayoutParams();
 
         if (mMode == PARTIAL_GROW) {
@@ -382,19 +382,19 @@
             setScaleY(0.8f);
             setAlpha(0f);
         } else {
-            lp.width = iconLp.width;
-            lp.height = iconLp.height;
-            lp.x = iconLp.x;
-            lp.y = iconLp.y;
+            mLauncher.getDragLayer().getDescendantRectRelativeToSelf(mFolderIcon, mIconRect);
+            lp.width = mIconRect.width();
+            lp.height = mIconRect.height();
+            lp.x = mIconRect.left;
+            lp.y = mIconRect.top;
             mContent.setAlpha(0);
         }
         mState = STATE_SMALL;
     }
 
     public void animateOpen() {
-        if (mState != STATE_SMALL) {
-            positionAndSizeAsIcon();
-        }
+        positionAndSizeAsIcon();
+
         if (!(getParent() instanceof DragLayer)) return;
 
         ObjectAnimator oa;
@@ -449,13 +449,12 @@
             PropertyValuesHolder scaleY = PropertyValuesHolder.ofFloat("scaleY", 0.9f);
             oa = ObjectAnimator.ofPropertyValuesHolder(this, alpha, scaleX, scaleY);
         } else {
-            DragLayer.LayoutParams iconLp = (DragLayer.LayoutParams) mFolderIcon.getLayoutParams();
             DragLayer.LayoutParams lp = (DragLayer.LayoutParams) getLayoutParams();
 
-            PropertyValuesHolder width = PropertyValuesHolder.ofInt("width", iconLp.width);
-            PropertyValuesHolder height = PropertyValuesHolder.ofInt("height", iconLp.height);
-            PropertyValuesHolder x = PropertyValuesHolder.ofInt("x",iconLp.x);
-            PropertyValuesHolder y = PropertyValuesHolder.ofInt("y", iconLp.y);
+            PropertyValuesHolder width = PropertyValuesHolder.ofInt("width", mIconRect.width());
+            PropertyValuesHolder height = PropertyValuesHolder.ofInt("height", mIconRect.height());
+            PropertyValuesHolder x = PropertyValuesHolder.ofInt("x", mIconRect.left);
+            PropertyValuesHolder y = PropertyValuesHolder.ofInt("y", mIconRect.top);
             oa = ObjectAnimator.ofPropertyValuesHolder(lp, width, height, x, y);
             oa.addUpdateListener(new AnimatorUpdateListener() {
                 public void onAnimationUpdate(ValueAnimator animation) {
@@ -645,14 +644,18 @@
 
     OnAlarmListener mOnExitAlarmListener = new OnAlarmListener() {
         public void onAlarm(Alarm alarm) {
-            mLauncher.closeFolder();
-            mCurrentDragInfo = null;
-            mCurrentDragView = null;
-            mSuppressOnAdd = false;
-            mRearrangeOnClose = true;
+            completeDragExit();
         }
     };
 
+    private void completeDragExit() {
+        mLauncher.closeFolder();
+        mCurrentDragInfo = null;
+        mCurrentDragView = null;
+        mSuppressOnAdd = false;
+        mRearrangeOnClose = true;
+    }
+
     public void onDragExit(DragObject d) {
         // We only close the folder if this is a true drag exit, ie. not because a drop
         // has occurred above the folder.
@@ -674,6 +677,11 @@
                 }
             }
             // TODO: if the drag fails, we need to re-add the item
+        } else {
+            if (target != this) {
+                mOnExitAlarm.cancelAlarm();
+                completeDragExit();
+            }
         }
     }
 
diff --git a/src/com/android/launcher2/FolderIcon.java b/src/com/android/launcher2/FolderIcon.java
index bae2fd7..aff8761 100644
--- a/src/com/android/launcher2/FolderIcon.java
+++ b/src/com/android/launcher2/FolderIcon.java
@@ -25,11 +25,14 @@
 import android.graphics.Canvas;
 import android.graphics.Color;
 import android.graphics.PorterDuff;
+import android.graphics.Rect;
 import android.graphics.drawable.Drawable;
 import android.util.AttributeSet;
 import android.view.LayoutInflater;
 import android.view.View;
 import android.view.ViewGroup;
+import android.view.animation.AccelerateInterpolator;
+import android.view.animation.DecelerateInterpolator;
 import android.widget.ImageView;
 import android.widget.LinearLayout;
 import android.widget.TextView;
@@ -276,17 +279,30 @@
         mFolderRingAnimator.animateToNaturalState();
     }
 
-    public void onDrop(Object dragInfo) {
+    public void onDrop(DragObject d) {
         ShortcutInfo item;
-        if (dragInfo instanceof ApplicationInfo) {
+        if (d.dragInfo instanceof ApplicationInfo) {
             // Came from all apps -- make a copy
-            item = ((ApplicationInfo) dragInfo).makeShortcut();
+            item = ((ApplicationInfo) d.dragInfo).makeShortcut();
         } else {
-            item = (ShortcutInfo) dragInfo;
+            item = (ShortcutInfo) d.dragInfo;
         }
         item.cellX = -1;
         item.cellY = -1;
         addItem(item);
+        DragLayer dragLayer = mLauncher.getDragLayer();
+        Rect from = new Rect();
+        dragLayer.getViewRectRelativeToSelf(d.dragView, from);
+        Rect to = new Rect();
+        dragLayer.getDescendantRectRelativeToSelf(this, to);
+
+        int previewSize = FolderRingAnimator.sPreviewSize;
+        int vanishingPointX = (int) (previewSize * 0.7);
+        int vanishingPointY = (int) (previewSize * (1 - 0.88f));
+        to.offset(vanishingPointX - previewSize / 2 , vanishingPointY - previewSize / 2);
+
+        dragLayer.animateView(d.dragView, from, to, 0f, 0.2f, 400, new DecelerateInterpolator(2),
+                new AccelerateInterpolator(2));
     }
 
     public DropTarget getDropTargetDelegate(DragObject d) {
@@ -323,20 +339,17 @@
         float maxPerspectiveShift = baselineSize * PERSPECTIVE_SHIFT_FACTOR;
 
         ArrayList<View> items = mFolder.getItemsInReadingOrder(false);
-        int firstItemIndex = Math.max(0, items.size() - NUM_ITEMS_IN_PREVIEW);
 
         int xShift = (mOriginalWidth - 2 * halfAvailableSpace) / 2;
         int yShift = previewPadding;
         canvas.translate(xShift, yShift);
-        for (int i = firstItemIndex; i < items.size(); i++) {
-            int index = i - firstItemIndex;
-            index += Math.max(0, NUM_ITEMS_IN_PREVIEW - items.size());
+        int nItemsInPreview = Math.min(items.size(), NUM_ITEMS_IN_PREVIEW);
+        for (int i = nItemsInPreview - 1; i >= 0; i--) {
+            int index = NUM_ITEMS_IN_PREVIEW - i - 1;
 
             float r = (index * 1.0f) / (NUM_ITEMS_IN_PREVIEW - 1);
             float scale = (1 - PERSPECTIVE_SCALE_FACTOR * (1 - r));
 
-            //r = (float) Math.pow(r, 2);
-
             float offset = (1 - r) * maxPerspectiveShift;
             float scaledSize = scale * baselineSize;
             float scaleOffsetCorrection = (1 - scale) * baselineSize;
diff --git a/src/com/android/launcher2/Workspace.java b/src/com/android/launcher2/Workspace.java
index 5ba9fd7..d728001 100644
--- a/src/com/android/launcher2/Workspace.java
+++ b/src/com/android/launcher2/Workspace.java
@@ -2240,12 +2240,12 @@
     }
 
     boolean addToExistingFolderIfNecessary(View newView, CellLayout target, int[] targetCell,
-            Object dragInfo, boolean external) {
+            DragObject d, boolean external) {
         View dropOverView = target.getChildAt(targetCell[0], targetCell[1]);
         if (dropOverView instanceof FolderIcon) {
             FolderIcon fi = (FolderIcon) dropOverView;
-            if (fi.acceptDrop(dragInfo)) {
-                fi.onDrop(dragInfo);
+            if (fi.acceptDrop(d.dragInfo)) {
+                fi.onDrop(d);
 
                 // if the drag started here, we need to remove it from the workspace
                 if (!external) {
@@ -2281,7 +2281,7 @@
         if (d.dragSource != this) {
             final int[] touchXY = new int[] { (int) mDragViewVisualCenter[0],
                     (int) mDragViewVisualCenter[1] };
-            onDropExternal(touchXY, d.dragInfo, dropTargetLayout, false, d.dragView);
+            onDropExternal(touchXY, d.dragInfo, dropTargetLayout, false, d);
         } else if (mDragInfo != null) {
             final View cell = mDragInfo.cell;
 
@@ -2305,8 +2305,7 @@
                     return;
                 }
 
-                if (addToExistingFolderIfNecessary(cell, dropTargetLayout, mTargetCell,
-                        d.dragInfo, false)) {
+                if (addToExistingFolderIfNecessary(cell, dropTargetLayout, mTargetCell, d, false)) {
                     return;
                 }
 
@@ -2936,7 +2935,7 @@
      * to add an item to one of the workspace screens.
      */
     private void onDropExternal(int[] touchXY, Object dragInfo,
-            CellLayout cellLayout, boolean insertAtFirst, DragView dragView) {
+            CellLayout cellLayout, boolean insertAtFirst, DragObject d) {
         int screen = indexOfChild(cellLayout);
         if (screen != mCurrentPage && mShrinkState != ShrinkState.SPRING_LOADED) {
             snapToPage(screen);
@@ -2989,7 +2988,7 @@
                 if (createUserFolderIfNecessary(view, cellLayout, mTargetCell, true)) {
                     return;
                 }
-                if (addToExistingFolderIfNecessary(view, cellLayout, mTargetCell, dragInfo, true)) {
+                if (addToExistingFolderIfNecessary(view, cellLayout, mTargetCell, d, true)) {
                     return;
                 }
             }
@@ -3008,13 +3007,13 @@
             CellLayout.LayoutParams lp = (CellLayout.LayoutParams) view.getLayoutParams();
             cellLayout.getChildrenLayout().measureChild(view);
 
-            if (dragView != null) {
-                mLauncher.getDragLayer().animateViewIntoPosition(dragView, view);
-            }
-
             LauncherModel.addOrMoveItemInDatabase(mLauncher, info,
                     LauncherSettings.Favorites.CONTAINER_DESKTOP, screen,
                     lp.cellX, lp.cellY);
+
+            if (d.dragView != null) {
+                mLauncher.getDragLayer().animateViewIntoPosition(d.dragView, view);
+            }
         }
     }