diff --git a/src/com/android/launcher3/CellLayout.java b/src/com/android/launcher3/CellLayout.java
index 52dfcd4..52960a9 100644
--- a/src/com/android/launcher3/CellLayout.java
+++ b/src/com/android/launcher3/CellLayout.java
@@ -829,8 +829,8 @@
         final int hStartPadding = getPaddingLeft();
         final int vStartPadding = getPaddingTop();
 
-        result[0] = (x - hStartPadding) / mCellWidth;
-        result[1] = (y - vStartPadding) / mCellHeight;
+        result[0] = (x - hStartPadding) / (mCellWidth + mBorderSpace.x);
+        result[1] = (y - vStartPadding) / (mCellHeight + mBorderSpace.y);
 
         final int xAxis = mCountX;
         final int yAxis = mCountY;
@@ -842,16 +842,6 @@
     }
 
     /**
-     * Given a point, return the cell that most closely encloses that point
-     * @param x X coordinate of the point
-     * @param y Y coordinate of the point
-     * @param result Array of 2 ints to hold the x and y coordinate of the cell
-     */
-    void pointToCellRounded(int x, int y, int[] result) {
-        pointToCellExact(x + (mCellWidth / 2), y + (mCellHeight / 2), result);
-    }
-
-    /**
      * Given a cell coordinate, return the point that represents the upper left corner of that cell
      *
      * @param cellX X coordinate of the cell
@@ -1240,7 +1230,7 @@
      */
     int[] findNearestVacantArea(int pixelX, int pixelY, int minSpanX, int minSpanY, int spanX,
             int spanY, int[] result, int[] resultSpan) {
-        return findNearestArea(pixelX, pixelY, minSpanX, minSpanY, spanX, spanY, true,
+        return findNearestArea(pixelX, pixelY, minSpanX, minSpanY, spanX, spanY, false,
                 result, resultSpan);
     }
 
@@ -1262,9 +1252,10 @@
     /**
      * Find a vacant area that will fit the given bounds nearest the requested
      * cell location. Uses Euclidean distance to score multiple vacant areas.
-     *
-     * @param pixelX The X location at which you want to search for a vacant area.
-     * @param pixelY The Y location at which you want to search for a vacant area.
+     * @param relativeXPos The X location relative to the Cell layout at which you want to search
+     *                     for a vacant area.
+     * @param relativeYPos The Y location relative to the Cell layout at which you want to search
+     *                     for a vacant area.
      * @param minSpanX The minimum horizontal span required
      * @param minSpanY The minimum vertical span required
      * @param spanX Horizontal span of the object.
@@ -1275,15 +1266,15 @@
      * @return The X, Y cell of a vacant area that can contain this object,
      *         nearest the requested location.
      */
-    private int[] findNearestArea(int pixelX, int pixelY, int minSpanX, int minSpanY, int spanX,
-            int spanY, boolean ignoreOccupied, int[] result, int[] resultSpan) {
+    private int[] findNearestArea(int relativeXPos, int relativeYPos, int minSpanX, int minSpanY,
+            int spanX, int spanY, boolean ignoreOccupied, int[] result, int[] resultSpan) {
         lazyInitTempRectStack();
 
-        // For items with a spanX / spanY > 1, the passed in point (pixelX, pixelY) corresponds
-        // to the center of the item, but we are searching based on the top-left cell, so
-        // we translate the point over to correspond to the top-left.
-        pixelX -= mCellWidth * (spanX - 1) / 2f;
-        pixelY -= mCellHeight * (spanY - 1) / 2f;
+        // For items with a spanX / spanY > 1, the passed in point (relativeXPos, relativeYPos)
+        // corresponds to the center of the item, but we are searching based on the top-left cell,
+        // so we translate the point over to correspond to the top-left.
+        relativeXPos = (int) (relativeXPos - (mCellWidth + mBorderSpace.x) * (spanX - 1) / 2f);
+        relativeYPos = (int) (relativeYPos - (mCellHeight + mBorderSpace.y) * (spanY - 1) / 2f);
 
         // Keep track of best-scoring drop area
         final int[] bestXY = result != null ? result : new int[2];
@@ -1304,7 +1295,7 @@
             for (int x = 0; x < countX - (minSpanX - 1); x++) {
                 int ySize = -1;
                 int xSize = -1;
-                if (ignoreOccupied) {
+                if (!ignoreOccupied) {
                     // First, let's see if this thing fits anywhere
                     for (int i = 0; i < minSpanX; i++) {
                         for (int j = 0; j < minSpanY; j++) {
@@ -1368,7 +1359,7 @@
                     }
                 }
                 validRegions.push(currentRect);
-                double distance = Math.hypot(cellXY[0] - pixelX,  cellXY[1] - pixelY);
+                double distance = Math.hypot(cellXY[0] - relativeXPos,  cellXY[1] - relativeYPos);
 
                 if ((distance <= bestDistance && !contained) ||
                         currentRect.contains(bestRect)) {
@@ -2629,7 +2620,7 @@
      *         nearest the requested location.
      */
     public int[] findNearestArea(int pixelX, int pixelY, int spanX, int spanY, int[] result) {
-        return findNearestArea(pixelX, pixelY, spanX, spanY, spanX, spanY, false, result, null);
+        return findNearestArea(pixelX, pixelY, spanX, spanY, spanX, spanY, true, result, null);
     }
 
     boolean existsEmptyCell() {