diff --git a/browser/base/content/browser.css b/browser/base/content/browser.css
index 2888bda2a406..b9049e5e7987 100644
--- a/browser/base/content/browser.css
+++ b/browser/base/content/browser.css
@@ -23,12 +23,6 @@ window[chromehidden~="toolbar"] #navigator-throbber[busy="true"] {
   -moz-binding: url("chrome://browser/content/search.xml#searchbar");
 }
 
-bookmarks-toolbar {
-  -moz-binding: url("chrome://browser/content/bookmarks/bookmarksToolbar.xml#bookmarks-toolbar");
-  min-width: 0px;
-  width:0px;
-}
-
 /* ::::: print preview toolbar ::::: */
 
 toolbar[printpreview="true"] {
diff --git a/browser/base/content/browser.js b/browser/base/content/browser.js
index 6b65d9f77ff6..b5fd7f72d9a2 100644
--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -406,9 +406,13 @@ function delayedStartup()
 
   // now load bookmarks after a delay
   BMSVC.ReadBookmarks();
-  var bt = document.getElementById("bookmarks-toolbar");
-  if (bt && "toolbar" in bt)
-    bt.toolbar.builder.rebuild();       
+  var bt = document.getElementById("bookmarks-ptf");
+  if (bt) {
+    bt.builder.rebuild();
+    bt.database.AddObserver(BookmarksToolbarRDFObserver);
+  }
+  window.addEventListener("resize", BookmarksToolbar.resizeFunc, false);
+  controllers.appendController(BookmarksMenuController);
 
   // called when we go into full screen, even if it is 
   // initiated by a web page script
@@ -1395,38 +1399,6 @@ function updateToolbarStates(toolbarMenuElt)
   }
 }
 
-// Fill in tooltips for personal toolbar
-function FillInPTTooltip(tipElement)
-{
-
-  var title = tipElement.label;
-  var url = tipElement.statusText;
-
-  if (!title && !url) {
-    // bail out early if there is nothing to show
-    return false;
-  }
-
-  var tooltipTitle = document.getElementById("ptTitleText");
-  var tooltipUrl = document.getElementById("ptUrlText"); 
-
-  if (title && title != url) {
-    tooltipTitle.removeAttribute("hidden");
-    tooltipTitle.setAttribute("value", title);
-  } else  {
-    tooltipTitle.setAttribute("hidden", "true");
-  }
-
-  if (url) {
-    tooltipUrl.removeAttribute("hidden");
-    tooltipUrl.setAttribute("value", url);
-  } else {
-    tooltipUrl.setAttribute("hidden", "true");
-  }
-
-  return true; // show tooltip
-}
-
 function BrowserFullScreen()
 {
   window.fullScreen = !window.fullScreen;
@@ -2014,387 +1986,6 @@ function OpenSearch(tabName, searchStr, newWindowFlag)
   }
 }
 
-var personalToolbarDNDObserver = {
-
-  ////////////////////
-  // Public methods //
-  ////////////////////
-
-  onDragStart: function (aEvent, aXferData, aDragAction)
-    {
-      var target = aEvent.originalTarget;
-
-      // Prevent dragging from an invalid region
-      if (!this.canDrop(aEvent))
-        return;
-
-      // Prevent dragging out of menupopups on non Win32 platforms. 
-      // a) on Mac drag from menus is generally regarded as being satanic
-      // b) on Linux, this causes an X-server crash, (bug 151336)
-      // c) on Windows, there is no hang or crash associated with this, so we'll leave 
-      // the functionality there. 
-      if (navigator.platform != "Win32" && target.localName != "toolbarbutton")
-        return;
-
-      // bail if dragging from the empty area of the bookmarks toolbar
-      if (target.localName == "hbox")
-        return
-
-      // a drag start is fired when leaving an open toolbarbutton(type=menu) 
-      // (see bug 143031)
-      if (this.isContainer(target) && 
-          target.getAttribute("group") != "true") {
-        if (this.isPlatformNotSupported) 
-          return;
-        if (!aEvent.shiftKey && !aEvent.altKey && !aEvent.ctrlKey)
-          return;
-        // menus open on mouse down
-        target.firstChild.hidePopup();
-      }
-      var bt = document.getElementById("bookmarks-toolbar");
-      var selection  = bt.getBTSelection(target);
-      aXferData.data = BookmarksUtils.getXferDataFromSelection(selection);
-    },
-
-  onDragOver: function(aEvent, aFlavour, aDragSession) 
-  {
-    var bt = document.getElementById("bookmarks-toolbar");
-    var orientation = bt.getBTOrientation(aEvent)
-    if (aDragSession.canDrop)
-      this.onDragSetFeedBack(aEvent.originalTarget, orientation);
-    if (orientation != this.mCurrentDropPosition) {
-      // emulating onDragExit and onDragEnter events since the drop region
-      // has changed on the target.
-      this.onDragExit(aEvent, aDragSession);
-      this.onDragEnter(aEvent, aDragSession);
-    }
-    if (this.isPlatformNotSupported)
-      return;
-    if (this.isTimerSupported)
-      return;
-    this.onDragOverCheckTimers();
-  },
-
-  onDragEnter: function (aEvent, aDragSession)
-  {
-    var target = aEvent.originalTarget;
-    var bt = document.getElementById("bookmarks-toolbar");
-    var orientation = bt.getBTOrientation(aEvent);
-    if (target.localName == "menupopup" || target.localName == "hbox")
-      target = target.parentNode;
-    if (aDragSession.canDrop) {
-      this.onDragSetFeedBack(target, orientation);
-      this.onDragEnterSetTimer(target, aDragSession);
-    }
-    this.mCurrentDragOverTarget = target;
-    this.mCurrentDropPosition   = orientation;
-  },
-
-  onDragExit: function (aEvent, aDragSession)
-  {
-    var target = aEvent.originalTarget;
-    if (target.localName == "menupopup" || target.localName == "hbox")
-      target = target.parentNode;
-    this.onDragRemoveFeedBack(target);
-    this.onDragExitSetTimer(target, aDragSession);
-    this.mCurrentDragOverTarget = null;
-    this.mCurrentDropPosition = null;
-  },
-
-  onDrop: function (aEvent, aXferData, aDragSession)
-  {
-    var target = aEvent.originalTarget;
-    this.onDragRemoveFeedBack(target);
-
-    var bt        = document.getElementById("bookmarks-toolbar");
-    var selection = BookmarksUtils.getSelectionFromXferData(aDragSession);
-
-    // if the personal toolbar does not exist, recreate it
-    if (target == "bookmarks-toolbar") {
-      //BookmarksUtils.recreatePersonalToolbarFolder(transactionSet);
-      //target = { parent: "NC:PersonalToolbarFolder", index: 1 };
-    } else {
-      var orientation = bt.getBTOrientation(aEvent);
-      var selTarget   = bt.getBTTarget(target, orientation);
-    }
-
-    const kDSIID      = Components.interfaces.nsIDragService;
-    const kCopyAction = kDSIID.DRAGDROP_ACTION_COPY + kDSIID.DRAGDROP_ACTION_LINK;
-
-    // hide the 'open in tab' menuseparator because bookmarks
-    // can be inserted after it if they are dropped after the last bookmark
-    // a more comprehensive fix would be in the menupopup template builder
-    var menuTarget = (target.localName == "toolbarbutton" ||
-                      target.localName == "menu")         && 
-                     orientation == BookmarksUtils.DROP_ON?
-                     target.lastChild:target.parentNode;
-    if (menuTarget.hasChildNodes() &&
-        menuTarget.lastChild.id == "openintabs-menuitem") {
-      menuTarget.removeChild(menuTarget.lastChild.previousSibling);
-    }
-
-    if (aDragSession.dragAction & kCopyAction)
-      BookmarksUtils.insertSelection("drag", selection, selTarget, true);
-    else
-      BookmarksUtils.moveSelection("drag", selection, selTarget);
-
-    // show again the menuseparator
-    if (menuTarget.hasChildNodes() &&
-        menuTarget.lastChild.id == "openintabs-menuitem") {
-      var element = document.createElementNS(XUL_NS, "menuseparator");
-      menuTarget.insertBefore(element, menuTarget.lastChild);
-    }
-
-  },
-
-  canDrop: function (aEvent, aDragSession)
-  {
-    var target = aEvent.originalTarget;
-    var bt = document.getElementById("bookmarks-toolbar");
-    return bt.isBTBookmark(target.id)                  && 
-           target.id != "NC:SystemBookmarksStaticRoot" &&
-           target.id.substring(0,5) != "find:"         ||
-           target.id == "bookmarks-menu"               ||
-           target.getAttribute("class") == "chevron"   ||
-           target.localName == "hbox";
-  },
-
-  canHandleMultipleItems: true,
-
-  getSupportedFlavours: function () 
-  {
-    var flavourSet = new FlavourSet();
-    flavourSet.appendFlavour("moz/rdfitem");
-    flavourSet.appendFlavour("text/x-moz-url");
-    flavourSet.appendFlavour("application/x-moz-file", "nsIFile");
-    flavourSet.appendFlavour("text/unicode");
-    return flavourSet;
-  }, 
-  
-
-  ////////////////////////////////////
-  // Private methods and properties //
-  ////////////////////////////////////
-
-  springLoadedMenuDelay: 350, // milliseconds
-  isPlatformNotSupported: navigator.platform.indexOf("Mac") != -1, // see bug 136524
-  isTimerSupported: navigator.platform.indexOf("Win") == -1,
-
-  mCurrentDragOverTarget: null,
-  mCurrentDropPosition: null,
-  loadTimer  : null,
-  closeTimer : null,
-  loadTarget : null,
-  closeTarget: null,
-
-  _observers : null,
-  get mObservers ()
-  {
-    if (!this._observers) {
-      var bt = document.getElementById("bookmarks-toolbar");
-      this._observers = [
-        document.getAnonymousElementByAttribute(bt , "anonid", "bookmarks-ptf"),
-        document.getElementById("bookmarks-menu").parentNode,
-        document.getAnonymousElementByAttribute(bt , "class", "chevron").parentNode
-      ]
-    }
-    return this._observers;
-  },
-
-  getObserverForNode: function (aNode)
-  {
-    if (!aNode)
-      return null;
-    var node = aNode;
-    var observer;
-    do {
-      for (var i=0; i < this.mObservers.length; i++) {
-        observer = this.mObservers[i];
-        if (observer == node)
-          return observer;
-      }
-      node = node.parentNode;
-    } while (node != document)
-    return null;
-  },
-
-  onDragCloseMenu: function (aNode)
-  {
-    var children = aNode.childNodes;
-    for (var i = 0; i < children.length; i++) {
-      if (this.isContainer(children[i]) && 
-          children[i].getAttribute("open") == "true") {
-        this.onDragCloseMenu(children[i].lastChild);
-        if (children[i] != this.mCurrentDragOverTarget || this.mCurrentDropPosition != BookmarksUtils.DROP_ON)
-          children[i].lastChild.hidePopup();
-      }
-    } 
-  },
-
-  onDragCloseTarget: function ()
-  {
-    var currentObserver = this.getObserverForNode(this.mCurrentDragOverTarget);
-    // close all the menus not hovered by the mouse
-    for (var i=0; i < this.mObservers.length; i++) {
-      if (currentObserver != this.mObservers[i])
-        this.onDragCloseMenu(this.mObservers[i]);
-      else
-        this.onDragCloseMenu(this.mCurrentDragOverTarget.parentNode);
-    }
-  },
-
-  onDragLoadTarget: function (aTarget) 
-  {
-    if (!this.mCurrentDragOverTarget)
-      return;
-    // Load the current menu
-    if (this.mCurrentDropPosition == BookmarksUtils.DROP_ON && 
-        this.isContainer(aTarget)             && 
-        aTarget.getAttribute("group") != "true")
-      aTarget.lastChild.showPopup(aTarget);
-  },
-
-  onDragOverCheckTimers: function ()
-  {
-    var now = new Date().getTime();
-    if (this.closeTimer && now-this.springLoadedMenuDelay>this.closeTimer) {
-      this.onDragCloseTarget();
-      this.closeTimer = null;
-    }
-    if (this.loadTimer && (now-this.springLoadedMenuDelay>this.loadTimer)) {
-      this.onDragLoadTarget(this.loadTarget);
-      this.loadTimer = null;
-    }
-  },
-
-  onDragEnterSetTimer: function (aTarget, aDragSession)
-  {
-    if (this.isPlatformNotSupported)
-      return;
-    if (this.isTimerSupported) {
-      var targetToBeLoaded = aTarget;
-      clearTimeout(this.loadTimer);
-      if (aTarget == aDragSession.sourceNode)
-        return;
-      //XXX Hack: see bug 139645
-      var thisHack = this;
-      this.loadTimer=setTimeout(function () {thisHack.onDragLoadTarget(targetToBeLoaded)}, this.springLoadedMenuDelay);
-    } else {
-      var now = new Date().getTime();
-      this.loadTimer  = now;
-      this.loadTarget = aTarget;
-    }
-  },
-
-  onDragExitSetTimer: function (aTarget, aDragSession)
-  {
-    if (this.isPlatformNotSupported)
-      return;
-    var thisHack = this;
-    if (this.isTimerSupported) {
-      clearTimeout(this.closeTimer)
-      this.closeTimer=setTimeout(function () {thisHack.onDragCloseTarget()}, this.springLoadedMenuDelay);
-    } else {
-      var now = new Date().getTime();
-      this.closeTimer  = now;
-      this.closeTarget = aTarget;
-      this.loadTimer = null;
-
-      // If user isn't rearranging within the menu, close it
-      // To do so, we exploit a Mac bug: timeout set during
-      // drag and drop on Windows and Mac are fired only after that the drop is released.
-      // timeouts will pile up, we may have a better approach but for the moment, this one
-      // correctly close the menus after a drop/cancel outside the personal toolbar.
-      // The if statement in the function has been introduced to deal with rare but reproducible
-      // missing Exit events.
-      if (aDragSession.sourceNode.localName != "menuitem" && aDragSession.sourceNode.localName != "menu")
-        setTimeout(function () { if (thisHack.mCurrentDragOverTarget) {thisHack.onDragRemoveFeedBack(thisHack.mCurrentDragOverTarget); thisHack.mCurrentDragOverTarget=null} thisHack.loadTimer=null; thisHack.onDragCloseTarget() }, 0);
-    }
-  },
-
-  onDragSetFeedBack: function (aTarget, aOrientation)
-  {
-   switch (aTarget.localName) {
-      case "toolbarseparator":
-      case "toolbarbutton":
-        switch (aOrientation) {
-          case BookmarksUtils.DROP_BEFORE: 
-            aTarget.setAttribute("dragover-left", "true");
-            break;
-          case BookmarksUtils.DROP_AFTER:
-            aTarget.setAttribute("dragover-right", "true");
-            break;
-          case BookmarksUtils.DROP_ON:
-            aTarget.setAttribute("dragover-top"   , "true");
-            aTarget.setAttribute("dragover-bottom", "true");
-            aTarget.setAttribute("dragover-left"  , "true");
-            aTarget.setAttribute("dragover-right" , "true");
-            break;
-        }
-        break;
-      case "menuseparator": 
-      case "menu":
-      case "menuitem":
-        switch (aOrientation) {
-          case BookmarksUtils.DROP_BEFORE: 
-            aTarget.setAttribute("dragover-top", "true");
-            break;
-          case BookmarksUtils.DROP_AFTER:
-            aTarget.setAttribute("dragover-bottom", "true");
-            break;
-          case BookmarksUtils.DROP_ON:
-            break;
-        }
-        break;
-      case "hbox"     : 
-        // hit between the last visible bookmark and the chevron
-        var bt = document.getElementById("bookmarks-toolbar");
-        var newTarget = bt.getLastVisibleBookmark();
-        if (newTarget)
-          newTarget.setAttribute("dragover-right", "true");
-        break;
-      case "stack"    :
-      case "menupopup": break; 
-     default: dump("No feedback for: "+aTarget.localName+"\n");
-    }
-  },
-
-  onDragRemoveFeedBack: function (aTarget)
-  { 
-    var newTarget;
-    var bt;
-    if (aTarget.localName == "hbox") { 
-      // hit when dropping in the bt or between the last visible bookmark 
-      // and the chevron
-      bt = document.getElementById("bookmarks-toolbar");
-      newTarget = bt.getLastVisibleBookmark();
-      if (newTarget)
-        newTarget.removeAttribute("dragover-right");
-    } else if (aTarget.localName == "stack") {
-      bt = document.getElementById("bookmarks-toolbar");
-      newTarget = bt.getLastVisibleBookmark();
-      newTarget.removeAttribute("dragover-right");
-    } else {
-      aTarget.removeAttribute("dragover-left");
-      aTarget.removeAttribute("dragover-right");
-      aTarget.removeAttribute("dragover-top");
-      aTarget.removeAttribute("dragover-bottom");
-    }
-  },
-
-  onDropSetFeedBack: function (aTarget)
-  {
-    //XXX Not yet...
-  },
-
-  isContainer: function (aTarget)
-  {
-    return aTarget.localName == "menu"          || 
-           aTarget.localName == "toolbarbutton" &&
-           aTarget.getAttribute("type") == "menu";
-  }
-}
-
 function FillHistoryMenu(aParent, aMenu)
   {
     // Remove old entries if any
diff --git a/browser/base/content/browser.xul b/browser/base/content/browser.xul
index af43a6f40931..d502f0fc85d1 100644
--- a/browser/base/content/browser.xul
+++ b/browser/base/content/browser.xul
@@ -20,6 +20,10 @@
 # Rights Reserved.
 #
 # Contributor(s):
+#   Blake Ross <blaker@netscape.com>
+#   David Hyatt <hyatt@apple.com>
+#   Joe Hewitt <hewitt@netscape.com>
+#   Pierre Chanial <chanial@noos.fr>
 #   Dean Tessman <dean_tessman@hotmail.com>
 
 <?xml-stylesheet href="chrome://browser/skin/" type="text/css"?> 
@@ -54,6 +58,7 @@
   <script type="application/x-javascript" src="chrome://global/content/findUtils.js"/>
   <script type="application/x-javascript" src="chrome://browser/content/utilityOverlay.js"/>
   <script type="application/x-javascript" src="chrome://browser/content/bookmarks/bookmarks.js"/>
+  <script type="application/x-javascript" src="chrome://browser/content/bookmarks/bookmarksMenu.js"/>
   <script type="application/x-javascript" src="chrome://global/content/viewZoomOverlay.js"/>
   <script type="application/x-javascript" src="chrome://browser/content/contentAreaUtils.js"/>
   <script type="application/x-javascript" src="chrome://browser/content/browser.js"/>
@@ -464,6 +469,82 @@
     </treecols>
   </tree>
 
+  <!-- bookmarks context menu -->
+  <popupset>
+    <menupopup id="bookmarks-context-menu" 
+               onpopupshowing="BookmarksMenu.createContextMenu(event);"
+               onpopuphidden ="BookmarksMenu.destroyContextMenu(event);"/>
+  </popupset>
+
+  <template id='bookmarks-template' xmlns:nc="http://home.netscape.com/NC-rdf#">
+    <rule parent="hbox" rdf:type="http://home.netscape.com/NC-rdf#BookmarkSeparator">
+      <toolbarseparator uri="rdf:*"
+                        rdf:type="rdf:http://www.w3.org/1999/02/22-rdf-syntax-ns#type"/>
+    </rule>
+    <!-- yes, the type attribute is necessary otherwise all leaves are 
+         treated as containers for some reason -->
+    <rule parent="hbox" iscontainer="true" isempty="true"
+          rdf:type="http://home.netscape.com/NC-rdf#Folder">
+      <toolbarbutton type="menu" editable="true" class="bookmark-item"
+                     rdf:type="http://home.netscape.com/NC-rdf#Folder"
+                     uri="rdf:*" label="rdf:http://home.netscape.com/NC-rdf#Name">
+        <menupopup>
+          <menuitem label="&emptyItem.label;" disabled="true"/>
+        </menupopup>
+      </toolbarbutton>
+    </rule>
+    <rule parent="hbox" iscontainer="true">
+      <toolbarbutton type="menu" class="bookmark-item" uri="rdf:*" editable="true"
+                     rdf:type="http://home.netscape.com/NC-rdf#Folder"
+                     label="rdf:http://home.netscape.com/NC-rdf#Name">
+        <menupopup contextmenu="bookmarks-context-menu"/>
+      </toolbarbutton>
+    </rule>
+    <rule parent="hbox">
+      <toolbarbutton class="bookmark-item" uri="rdf:*" editable="true" 
+                     status="rdf:http://home.netscape.com/WEB-rdf#status"
+                     rdf:type="http://home.netscape.com/NC-rdf#Bookmark"
+                     image="rdf:http://home.netscape.com/NC-rdf#Icon"
+                     statustext="rdf:http://home.netscape.com/NC-rdf#URL"
+                     tooltip="btTooltip"
+                     label="rdf:http://home.netscape.com/NC-rdf#Name"/>
+    </rule>
+    <rule iscontainer="true" isempty="true"
+          rdf:type="http://home.netscape.com/NC-rdf#Folder">
+      <menupopup>
+        <menu class="menu-iconic bookmark-item" uri="rdf:*" 
+              type="rdf:http://www.w3.org/1999/02/22-rdf-syntax-ns#type"
+              label="rdf:http://home.netscape.com/NC-rdf#Name">
+          <menupopup>
+            <menuitem label="&emptyItem.label;" disabled="true"/>
+          </menupopup>
+        </menu>
+      </menupopup>
+    </rule>
+    <rule iscontainer="true">
+      <menupopup>
+        <menu class="menu-iconic bookmark-item" uri="rdf:*"
+              label="rdf:http://home.netscape.com/NC-rdf#Name"
+              type="rdf:http://www.w3.org/1999/02/22-rdf-syntax-ns#type">
+          <menupopup contextmenu="bookmarks-context-menu"/>
+        </menu>
+      </menupopup>
+    </rule>
+    <rule rdf:type="http://home.netscape.com/NC-rdf#BookmarkSeparator">
+      <menupopup> 
+        <menuseparator uri="rdf:*" />
+      </menupopup>
+    </rule>
+    <rule>
+      <menupopup>
+        <menuitem class="menuitem-iconic bookmark-item" uri="rdf:*"
+                  label="rdf:http://home.netscape.com/NC-rdf#Name" 
+                  image="rdf:http://home.netscape.com/NC-rdf#Icon"
+                  status="rdf:http://home.netscape.com/WEB-rdf#status"/>
+      </menupopup>
+    </rule>
+  </template>
+
   <toolbox id="navigator-toolbox" class="toolbox-top" mode="icons" iconsize="small">
     <!-- Menu -->
       <toolbar type="menubar" id="toolbar-menubar" class="chromeclass-menubar" customizable="true"
@@ -678,55 +759,20 @@
               </menupopup>
             </menu>
 
-            <menu id="bookmarks-menu" label="&bookmarksMenu.label;" accesskey="&bookmarksMenu.accesskey;" 
-                  datasources="rdf:bookmarks rdf:files rdf:localsearch rdf:internetsearch" 
+            <menu id="bookmarks-menu" label="&bookmarksMenu.label;" accesskey="&bookmarksMenu.accesskey;"
+                  datasources="rdf:bookmarks rdf:files rdf:localsearch" 
                   ref="NC:BookmarksRoot" flags="dont-test-empty"
-                  onpopupshowing="document.getElementById('bookmarks-toolbar').showOpenInTabsMenuItem(event.originalTarget)"
-                  onpopuphidden="document.getElementById('bookmarks-toolbar').hideOpenInTabsMenuItem(event.originalTarget)"
+                  template='bookmarks-template'
+                  onpopupshowing="BookmarksMenu.showOpenInTabsMenuItem(event.target)"
+                  onpopuphidden="BookmarksMenu.hideOpenInTabsMenuItem(event.target)"
                   oncommand="BookmarksUtils.loadBookmarkBrowser(event, event.originalTarget, this.database)"
                   onclick="BookmarksUtils.loadBookmarkBrowserMiddleClick(event, this.database)"
-                  ondraggesture="nsDragAndDrop.startDrag(event, personalToolbarDNDObserver)"
-                  ondragdrop="nsDragAndDrop.drop(event, personalToolbarDNDObserver); event.preventBubble()"
-                  ondragenter="nsDragAndDrop.dragEnter(event, personalToolbarDNDObserver); event.preventBubble()"
-                  ondragexit="nsDragAndDrop.dragExit(event, personalToolbarDNDObserver); event.preventBubble()"
-                  ondragover="nsDragAndDrop.dragOver(event, personalToolbarDNDObserver); event.preventBubble()">
-              <template xmlns:nc="http://home.netscape.com/NC-rdf#">
-                <rule iscontainer="true" isempty="true"
-                      rdf:type="http://home.netscape.com/NC-rdf#Folder">
-                  <menupopup>
-                    <menu class="menu-iconic bookmark-item" uri="rdf:*" 
-                          type="rdf:http://www.w3.org/1999/02/22-rdf-syntax-ns#type"
-                          label="rdf:http://home.netscape.com/NC-rdf#Name">
-                      <menupopup>
-                        <menuitem label="&emptyItem.label;" disabled="true"/>
-                      </menupopup>
-                    </menu>
-                  </menupopup>
-                </rule>
-                <rule iscontainer="true">
-                  <menupopup>
-                    <menu class="menu-iconic bookmark-item" uri="rdf:*"
-                          label="rdf:http://home.netscape.com/NC-rdf#Name"
-                          type="rdf:http://www.w3.org/1999/02/22-rdf-syntax-ns#type">
-                      <menupopup />
-                    </menu>
-                  </menupopup>
-                </rule>
-                <rule rdf:type="http://home.netscape.com/NC-rdf#BookmarkSeparator">
-                  <menupopup> 
-                    <menuseparator uri="rdf:*" />
-                  </menupopup>
-                </rule>
-                <rule>
-                  <menupopup>
-                    <menuitem class="menuitem-iconic bookmark-item" uri="rdf:*"
-                              label="rdf:http://home.netscape.com/NC-rdf#Name" 
-                              image="rdf:http://home.netscape.com/NC-rdf#Icon"
-                              status="rdf:http://home.netscape.com/WEB-rdf#status"/>
-                  </menupopup>
-                </rule>
-              </template>
-              <menupopup>
+                  ondraggesture="nsDragAndDrop.startDrag(event, BookmarksMenuDNDObserver)"
+                  ondragdrop="nsDragAndDrop.drop(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                  ondragenter="nsDragAndDrop.dragEnter(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                  ondragexit="nsDragAndDrop.dragExit(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                  ondragover="nsDragAndDrop.dragOver(event, BookmarksMenuDNDObserver); event.preventBubble()">
+              <menupopup contextmenu='bookmarks-context-menu'>
                 <menuitem key="addBookmarkAsKb"
                           label="&addCurPageAsCmd.label;"
                           accesskey="&addCurPageAsCmd.accesskey;"
@@ -869,8 +915,53 @@
                 tooltiptext="&throbber.tooltip;"/>
       </toolbaritem>
       
-        <toolbaritem id="personal-bookmarks" title="&bookmarksItem.title;" flex="1">
-          <bookmarks-toolbar id="bookmarks-toolbar" flex="1"/>
+      <toolbaritem id="bookmarks-toolbar" title="&bookmarksItem.title;" flex="1">
+        <stack id="bookmarks-stack" flex="1" style="min-width:0px; width:0px;">
+          <hbox id="bookmarks-ptf" class="bookmarks-toolbar-items" contextmenu="bookmarks-context-menu"
+                flex="1" style="min-width:0px; width:0px;margin-left: 3px;" 
+                datasources="rdf:bookmarks rdf:files rdf:localsearch"
+                template="bookmarks-template"
+                ref="NC:PersonalToolbarFolder" flags="dont-test-empty"
+                rdf:type="http://home.netscape.com/NC-rdf#Folder"
+                onpopupshowing="BookmarksMenu.showOpenInTabsMenuItem(event.originalTarget)"
+                onpopuphidden="BookmarksMenu.hideOpenInTabsMenuItem(event.originalTarget)"
+                oncommand="BookmarksUtils.loadBookmarkBrowser(event, event.originalTarget, this.database)"
+                onclick="BookmarksUtils.loadBookmarkBrowserMiddleClick(event, this.database)"
+                ondraggesture="nsDragAndDrop.startDrag(event, BookmarksMenuDNDObserver)"
+                ondragdrop="nsDragAndDrop.drop(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                ondragenter="nsDragAndDrop.dragEnter(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                ondragexit="nsDragAndDrop.dragExit(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                ondragover="nsDragAndDrop.dragOver(event, BookmarksMenuDNDObserver); event.preventBubble()">
+            <tooltip id="btTooltip" noautohide="true" 
+                     onpopupshowing="return BookmarksToolbar.fillInBTTooltip(document.tooltipNode)">
+              <vbox id="btTooltipTextBox" flex="1">  
+                <label id="btTitleText" />
+                <label id="btUrlText" />
+              </vbox>
+            </tooltip>
+          </hbox>
+          <hbox class="bookmarks-toolbar-overflow-items" mousethrough="always">
+            <hbox mousethrough="always" id="overflow-padder"/>
+              <toolbarbutton id="bookmarks-chevron" type="menu" class="chevron"
+                             mousethrough="never" collapsed="true" 
+                             datasources="rdf:bookmarks rdf:files rdf:localsearch"
+                             template="bookmarks-template" 
+                             ref="NC:PersonalToolbarFolder" flags="dont-test-empty"
+                             onpopupshowing="BookmarksMenu.showOpenInTabsMenuItem(event.originalTarget)"
+                             onpopuphidden="BookmarksMenu.hideOpenInTabsMenuItem(event.originalTarget)"
+                             oncommand="BookmarksUtils.loadBookmarkBrowser(event, event.originalTarget, this.database)"
+                             onclick="BookmarksUtils.loadBookmarkBrowserMiddleClick(event, this.database)"
+                             ondraggesture="nsDragAndDrop.startDrag(event, BookmarksMenuDNDObserver)"
+                             ondragdrop="nsDragAndDrop.drop(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                             ondragenter="nsDragAndDrop.dragEnter(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                             ondragexit="nsDragAndDrop.dragExit(event, BookmarksMenuDNDObserver); event.preventBubble()"
+                             ondragover="nsDragAndDrop.dragOver(event, BookmarksMenuDNDObserver); event.preventBubble()">
+                <menupopup contextmenu="bookmarks-context-menu"/>
+              </toolbarbutton>
+            </hbox>
+            <toolbarbutton class="bookmark-item bookmarks-toolbar-customize" mousethrough="never"
+                           label="Bookmarks Toolbar Items"/>
+          </stack>
         </toolbaritem>
 
         <toolbarbutton id="downloads-button" class="toolbarbutton-1"
@@ -918,7 +1009,7 @@
     <toolbarset id="customToolbars" context="toolbar-context-menu"/>
 
     <toolbar id="PersonalToolbar" class="chromeclass-directories" iconsize="small"
-             customizable="true" defaultset="personal-bookmarks" mode="icons"
+             customizable="true" defaultset="bookmarks-toolbar" mode="icons"
              toolbarname="&personalbarCmd.label;" accesskey="&personalbarCmd.accesskey;"/>
     
   </toolbox>
diff --git a/browser/components/bookmarks/content/bookmarksMenu.js b/browser/components/bookmarks/content/bookmarksMenu.js
new file mode 100644
index 000000000000..8093e0770189
--- /dev/null
+++ b/browser/components/bookmarks/content/bookmarksMenu.js
@@ -0,0 +1,878 @@
+# -*- Mode: Java; tab-width: 2; indent-tabs-mode: nil; c-basic-offset: 2 -*-
+# ***** BEGIN LICENSE BLOCK *****
+# Version: NPL 1.1/GPL 2.0/LGPL 2.1
+# 
+# The contents of this file are subject to the Netscape Public License
+# Version 1.1 (the "License"); you may not use this file except in
+# compliance with the License. You may obtain a copy of the License at
+# http://www.mozilla.org/NPL/
+# 
+# Software distributed under the License is distributed on an "AS IS" basis,
+# WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
+# for the specific language governing rights and limitations under the
+# License.
+# 
+# The Original Code is mozilla.org code.
+# 
+# The Initial Developer of the Original Code is 
+#   Pierre Chanial <chanial@noos.fr>
+# Portions created by the Initial Developer are Copyright (C) 1998
+# the Initial Developer. All Rights Reserved.
+# 
+# Contributor(s):
+#   David Hyatt <hyatt@apple.com>
+# 
+# Alternatively, the contents of this file may be used under the terms of
+# either the GNU General Public License Version 2 or later (the "GPL"), or 
+# the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
+# in which case the provisions of the GPL or the LGPL are applicable instead
+# of those above. If you wish to allow use of your version of this file only
+# under the terms of either the GPL or the LGPL, and not to allow others to
+# use your version of this file under the terms of the NPL, indicate your
+# decision by deleting the provisions above and replace them with the notice
+# and other provisions required by the GPL or the LGPL. If you do not delete
+# the provisions above, a recipient may use your version of this file under
+# the terms of any one of the NPL, the GPL or the LGPL.
+
+var BookmarksMenu = {
+  _selection:null,
+  _target:null,
+  _orientation:null,
+  
+  /////////////////////////////////////////////////////////////////////////////
+  // shows the 'Open in Tabs' menu item if validOpenInTabsMenuItem is true -->
+  showOpenInTabsMenuItem: function (aTarget)
+  {
+    if (!this.validOpenInTabsMenuItem(aTarget) ||
+        aTarget.lastChild.id == "openintabs-menuitem")
+      return;
+    var element = document.createElementNS(XUL_NS, "menuseparator");
+    aTarget.appendChild(element);
+    element = document.createElementNS(XUL_NS, "menuitem");
+    element.setAttribute("id", "openintabs-menuitem")
+    element.setAttribute("label", BookmarksUtils.getLocaleString("cmd_bm_openfolder"));
+    //element.setAttribute("class", "groupmark-item menuitem-iconic bookmark-item");
+    element.setAttribute("accesskey", BookmarksUtils.getLocaleString("cmd_bm_openfolder_accesskey"));
+    element.setAttribute("oncommand", "BookmarksUtils.loadBookmarkBrowser(event, this.parentNode.parentNode, this.database); event.preventBubble();");
+    aTarget.appendChild(element);
+  },
+
+  /////////////////////////////////////////////////////////////////////////////
+  // hides the 'Open in Tabs' on popuphidden so that we won't duplicate it -->
+  hideOpenInTabsMenuItem: function (aTarget)
+  {
+    if (!aTarget.hasChildNodes())
+      return;
+    if (aTarget.lastChild.id == "openintabs-menuitem") {
+      aTarget.removeChild(aTarget.lastChild);
+      aTarget.removeChild(aTarget.lastChild);
+    }
+  },
+
+  /////////////////////////////////////////////////////////////////////////////
+  // returns false if...
+  // - the parent is the bookmark menu or the chevron
+  // - the menupopup contains ony one bookmark
+  validOpenInTabsMenuItem: function (aTarget)
+  {
+    var rParent = RDF.GetResource(aTarget.parentNode.id)
+    var type = BookmarksUtils.resolveType(rParent);
+    if (type != "Folder" && type != "FolderGroup" &&
+        type != "PersonalToolbarFolder")
+      return false;
+    var count = 0;
+    if (!aTarget.hasChildNodes())
+      return false;
+    var curr = aTarget.firstChild;
+    do {
+      type = BookmarksUtils.resolveType(curr.id);
+      if (type == "Bookmark" && ++count == 2)
+        return true;
+      curr = curr.nextSibling;
+    } while (curr);
+    return false;
+  },
+
+  //////////////////////////////////////////////////////////////////////////
+  // Fill a context menu popup with menuitems appropriate for the current
+  // selection.
+  createContextMenu: function (aEvent)
+  {
+    var target = document.popupNode;
+    target.focus() // buttons in the pt have -moz-user-focus: ignore -->
+    this._selection   = this.getBTSelection(target);
+    this._orientation = this.getBTOrientation(aEvent, target);
+    this._target      = this.getBTTarget(target, this._orientation);
+    BookmarksCommand.createContextMenu(aEvent, this._selection);
+    this.onCommandUpdate();
+    aEvent.target.addEventListener("mousemove", BookmarksMenuController.onMouseMove, false)
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // Clean up after closing the context menu popup
+  destroyContextMenu: function (aEvent)
+  {
+    if (content) 
+      content.focus()
+    BookmarksMenuDNDObserver.onDragRemoveFeedBack(document.popupNode); // needed on cancel
+    aEvent.target.removeEventListener("mousemove", BookmarksMenuController.onMouseMove, false)
+  },
+
+  /////////////////////////////////////////////////////////////////////////////
+  // returns the formatted selection from aNode
+  getBTSelection: function (aNode)
+  {
+    var item;
+    switch (aNode.id) {
+    case "bookmarks-ptf":
+      item = "NC:PersonalToolbarFolder";
+      break;
+    case "bookmarks-menu":
+      item = "NC:BookmarksRoot";
+      break;
+    default:
+      item = aNode.id;
+    }
+    if (!this.isBTBookmark(item))
+      return {length:0};
+    var parent           = this.getBTContainer(aNode);
+    var isExpanded       = aNode.hasAttribute("open") && aNode.open;
+    var selection        = {};
+    selection.item       = [RDF.GetResource(item)];
+    selection.parent     = [RDF.GetResource(parent)];
+    selection.isExpanded = [isExpanded];
+    selection.length     = selection.item.length;
+    BookmarksUtils.checkSelection(selection);
+    return selection;
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // returns the insertion target from aNode
+  getBTTarget: function (aNode, aOrientation)
+  {
+    dump("aNode.id:"+aNode.id+", localName:"+aNode.localName+"\n");
+    var item, parent, index;
+    switch (aNode.id) {
+    case "bookmarks-ptf":
+      parent = "NC:PersonalToolbarFolder";
+      item = this.getLastVisibleBookmark();
+      break;
+    case "bookmarks-menu":
+      parent = "NC:BookmarksRoot";
+      break;
+    default:
+      if (aNode.id == "bookmarks-chevron") {
+        parent = "NC:PersonalToolbarFolder";
+        break;
+      }
+      if (aOrientation == BookmarksUtils.DROP_ON)
+        parent = aNode.id
+      else {
+        parent = this.getBTContainer(aNode);
+        item = aNode;
+      }
+    }
+
+    parent = RDF.GetResource(parent);
+    if (aOrientation == BookmarksUtils.DROP_ON)
+      return BookmarksUtils.getTargetFromFolder(parent);
+
+    item = RDF.GetResource(item.id);
+    RDFC.Init(BMDS, parent);
+    index = RDFC.IndexOf(item);
+    if (aOrientation == BookmarksUtils.DROP_AFTER)
+      ++index;
+
+    return { parent: parent, index: index };
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // returns the parent resource of a node in the personal toolbar.
+  // this is determined by inspecting the source element and walking up the 
+  // DOM tree to find the appropriate containing node.
+  getBTContainer: function (aNode)
+  {
+    var parent;
+    var item = aNode.id;
+    if (!this.isBTBookmark(item))
+      return "NC:BookmarksRoot"
+    parent = aNode.parentNode.parentNode;
+    parent = parent.id;
+    switch (parent) {
+    case "bookmarks-chevron":
+    case "bookmarks-stack":
+    case "bookmarks-toolbar":
+      return "NC:PersonalToolbarFolder";
+    case "bookmarks-menu":
+      return "NC:BookmarksRoot";
+    default:
+      return parent;
+    }
+  },
+
+  ///////////////////////////////////////////////////////////////////////////
+  // returns true if the node is a bookmark, a folder or a bookmark separator
+  isBTBookmark: function (aURI)
+  {
+    if (!aURI)
+      return false;
+    var type = BookmarksUtils.resolveType(aURI);
+    return (type == "BookmarkSeparator" ||
+            type == "Bookmark"          ||
+            type == "Folder"            ||
+            type == "FolderGroup"       ||
+            type == "PersonalToolbarFolder")
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // returns true if the node is a container. -->
+  isBTContainer: function (aTarget)
+  {
+    return  aTarget.localName == "menu" || (aTarget.localName == "toolbarbutton" &&
+           (aTarget.getAttribute("container") == "true" || aTarget.getAttribute("group") == "true"));
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // returns BookmarksUtils.DROP_BEFORE, DROP_ON or DROP_AFTER accordingly
+  // to the event coordinates. Skin authors could break us, we'll cross that 
+  // bridge when they turn us 90degrees.  -->
+  getBTOrientation: function (aEvent, aTarget)
+  {
+    var target
+    if (!aTarget)
+      target = aEvent.target;
+    else
+      target = aTarget;
+    if (target.localName == "menu"                 &&
+        target.parentNode.localName != "menupopup" ||
+        target.id == "bookmarks-chevron")
+      return BookmarksUtils.DROP_ON;
+    if (target.id == "bookmarks-ptf") {
+      return target.childNodes.length>4?
+             BookmarksUtils.DROP_AFTER:BookmarksUtils.DROP_ON;
+    }
+
+    var overButtonBoxObject = target.boxObject.QueryInterface(Components.interfaces.nsIBoxObject);
+    var overParentBoxObject = target.parentNode.boxObject.QueryInterface(Components.interfaces.nsIBoxObject);
+
+    var size, border;
+    var coordValue, clientCoordValue;
+    switch (target.localName) {
+      case "toolbarseparator":
+      case "toolbarbutton":
+        size = overButtonBoxObject.width;
+        coordValue = overButtonBoxObject.x;
+        clientCoordValue = aEvent.clientX;
+        break;
+      case "menuseparator": 
+      case "menu":
+      case "menuitem":
+        size = overButtonBoxObject.height;
+        coordValue = overButtonBoxObject.y-overParentBoxObject.y;
+        clientCoordValue = aEvent.clientY;
+        break;
+      default: return BookmarksUtils.DROP_ON;
+    }
+    if (this.isBTContainer(target))
+      if (target.localName == "toolbarbutton") {
+        // the DROP_BEFORE area excludes the label
+        var iconNode = document.getAnonymousElementByAttribute(target, "class", "toolbarbutton-icon");
+        border = parseInt(document.defaultView.getComputedStyle(target,"").getPropertyValue("padding-left")) +
+                 parseInt(document.defaultView.getComputedStyle(iconNode     ,"").getPropertyValue("width"));
+        border = Math.min(size/5,Math.max(border,4));
+      } else
+        border = size/5;
+    else
+      border = size/2;
+    
+    // in the first region?
+    if (clientCoordValue-coordValue < border)
+      return BookmarksUtils.DROP_BEFORE;
+    // in the last region?
+    if (clientCoordValue-coordValue >= size-border)
+      return BookmarksUtils.DROP_AFTER;
+    // must be in the middle somewhere
+    return BookmarksUtils.DROP_ON;
+  },
+
+  /////////////////////////////////////////////////////////////////////////
+  // expand the folder targeted by the context menu.
+  expandBTFolder: function ()
+  {
+    var target = document.popupNode.lastChild;
+    if (document.popupNode.open)
+      target.hidePopup();
+    else
+      target.showPopup(document.popupNode);
+  },
+
+  onCommandUpdate: function ()
+  {
+    var selection = this._selection;
+    var target    = this._target;
+    BookmarksController.onCommandUpdate(selection, target);
+    if (document.popupNode.id == "NC:PersonalToolbarFolder") {
+      // disabling 'copy' on the empty area of the personal toolbar
+      var commandNode = document.getElementById("cmd_bm_copy");
+      commandNode.setAttribute("disabled", "true");
+    }
+  }
+}
+
+var BookmarksMenuController = {
+
+  supportsCommand: BookmarksController.supportsCommand,
+
+  isCommandEnabled: function (aCommand)
+  {
+    // warning: this is not the function called in BookmarksController.onCommandUpdate
+    var selection = BookmarksMenu._selection;
+    var target    = BookmarksMenu._target;
+    if (selection)
+      return BookmarksController.isCommandEnabled(aCommand, selection, target);
+    return false;
+  },
+
+  doCommand: function (aCommand)
+  {
+    BookmarksMenuDNDObserver.onDragRemoveFeedBack(document.popupNode);
+    var selection = BookmarksMenu._selection;
+    var target    = BookmarksMenu._target;
+    switch (aCommand) {
+    case "cmd_bm_expandfolder":
+      BookmarksMenu.expandBTFolder();
+      break;
+    default:
+      BookmarksController.doCommand(aCommand, selection, target);
+    }
+  },
+
+  onMouseMove: function (aEvent)
+  {
+    var command = aEvent.target.getAttribute("command");
+    var isDisabled = aEvent.target.getAttribute("disabled")
+    if (isDisabled != "true" && (command == "cmd_bm_newfolder" || command == "cmd_bm_paste")) {
+      BookmarksMenuDNDObserver.onDragSetFeedBack(document.popupNode, BookmarksMenu._orientation);
+    } else {
+      BookmarksMenuDNDObserver.onDragRemoveFeedBack(document.popupNode);
+    }
+  }
+}
+
+var BookmarksMenuDNDObserver = {
+
+  ////////////////////
+  // Public methods //
+  ////////////////////
+
+  onDragStart: function (aEvent, aXferData, aDragAction)
+  {
+    var target = aEvent.target;
+
+    // Prevent dragging from an invalid region
+    if (!this.canDrop(aEvent))
+      return;
+
+    // Prevent dragging out of menupopups on non Win32 platforms. 
+    // a) on Mac drag from menus is generally regarded as being satanic
+    // b) on Linux, this causes an X-server crash, (bug 151336)
+    // c) on Windows, there is no hang or crash associated with this, so we'll leave 
+    // the functionality there. 
+    if (navigator.platform != "Win32" && target.localName != "toolbarbutton")
+      return;
+
+    // bail if dragging from the empty area of the bookmarks toolbar
+    if (target.id == "bookmarks-ptf")
+      return
+
+    // a drag start is fired when leaving an open toolbarbutton(type=menu) 
+    // (see bug 143031)
+    if (this.isContainer(target) && 
+        target.getAttribute("group") != "true") {
+      if (this.isPlatformNotSupported) 
+        return;
+      if (!aEvent.shiftKey && !aEvent.altKey && !aEvent.ctrlKey)
+        return;
+      // menus open on mouse down
+      target.firstChild.hidePopup();
+    }
+    var selection  = BookmarksMenu.getBTSelection(target);
+    aXferData.data = BookmarksUtils.getXferDataFromSelection(selection);
+  },
+
+  onDragOver: function(aEvent, aFlavour, aDragSession) 
+  {
+    var orientation = BookmarksMenu.getBTOrientation(aEvent)
+    if (aDragSession.canDrop)
+      this.onDragSetFeedBack(aEvent.target, orientation);
+    if (orientation != this.mCurrentDropPosition) {
+      // emulating onDragExit and onDragEnter events since the drop region
+      // has changed on the target.
+      this.onDragExit(aEvent, aDragSession);
+      this.onDragEnter(aEvent, aDragSession);
+    }
+    if (this.isPlatformNotSupported)
+      return;
+    if (this.isTimerSupported)
+      return;
+    this.onDragOverCheckTimers();
+  },
+
+  onDragEnter: function (aEvent, aDragSession)
+  {
+    var target = aEvent.target;
+    var orientation = BookmarksMenu.getBTOrientation(aEvent);
+    if (target.localName == "menupopup" || target.id == "bookmarks-ptf")
+      target = target.parentNode;
+    if (aDragSession.canDrop) {
+      this.onDragSetFeedBack(target, orientation);
+      this.onDragEnterSetTimer(target, aDragSession);
+    }
+    this.mCurrentDragOverTarget = target;
+    this.mCurrentDropPosition   = orientation;
+  },
+
+  onDragExit: function (aEvent, aDragSession)
+  {
+    var target = aEvent.target;
+    if (target.localName == "menupopup" || target.id == "bookmarks-ptf")
+      target = target.parentNode;
+    this.onDragRemoveFeedBack(target);
+    this.onDragExitSetTimer(target, aDragSession);
+    this.mCurrentDragOverTarget = null;
+    this.mCurrentDropPosition = null;
+  },
+
+  onDrop: function (aEvent, aXferData, aDragSession)
+  {
+    var target = aEvent.target;
+    this.onDragRemoveFeedBack(target);
+
+    var selection = BookmarksUtils.getSelectionFromXferData(aDragSession);
+
+    // if the personal toolbar does not exist, recreate it
+    if (target == "bookmarks-toolbar") {
+      //BookmarksUtils.recreatePersonalToolbarFolder(transactionSet);
+      //target = { parent: "NC:PersonalToolbarFolder", index: 1 };
+    } else {
+      var orientation = BookmarksMenu.getBTOrientation(aEvent);
+      var selTarget   = BookmarksMenu.getBTTarget(target, orientation);
+    }
+
+    const kDSIID      = Components.interfaces.nsIDragService;
+    const kCopyAction = kDSIID.DRAGDROP_ACTION_COPY + kDSIID.DRAGDROP_ACTION_LINK;
+
+    // hide the 'open in tab' menuseparator because bookmarks
+    // can be inserted after it if they are dropped after the last bookmark
+    // a more comprehensive fix would be in the menupopup template builder
+    var menuTarget = (target.localName == "toolbarbutton" ||
+                      target.localName == "menu")         && 
+                     orientation == BookmarksUtils.DROP_ON?
+                     target.lastChild:target.parentNode;
+    if (menuTarget.hasChildNodes() &&
+        menuTarget.lastChild.id == "openintabs-menuitem") {
+      menuTarget.removeChild(menuTarget.lastChild.previousSibling);
+    }
+
+    if (aDragSession.dragAction & kCopyAction)
+      BookmarksUtils.insertSelection("drag", selection, selTarget, true);
+    else
+      BookmarksUtils.moveSelection("drag", selection, selTarget);
+
+    // show again the menuseparator
+    if (menuTarget.hasChildNodes() &&
+        menuTarget.lastChild.id == "openintabs-menuitem") {
+      var element = document.createElementNS(XUL_NS, "menuseparator");
+      menuTarget.insertBefore(element, menuTarget.lastChild);
+    }
+
+  },
+
+  canDrop: function (aEvent, aDragSession)
+  {
+    var target = aEvent.target;
+    return BookmarksMenu.isBTBookmark(target.id)       && 
+           target.id != "NC:SystemBookmarksStaticRoot" &&
+           target.id.substring(0,5) != "find:"         ||
+           target.id == "bookmarks-menu"               ||
+           target.id == "bookmarks-chevron"            ||
+           target.id == "bookmarks-ptf";
+  },
+
+  canHandleMultipleItems: true,
+
+  getSupportedFlavours: function () 
+  {
+    var flavourSet = new FlavourSet();
+    flavourSet.appendFlavour("moz/rdfitem");
+    flavourSet.appendFlavour("text/x-moz-url");
+    flavourSet.appendFlavour("application/x-moz-file", "nsIFile");
+    flavourSet.appendFlavour("text/unicode");
+    return flavourSet;
+  }, 
+  
+
+  ////////////////////////////////////
+  // Private methods and properties //
+  ////////////////////////////////////
+
+  springLoadedMenuDelay: 350, // milliseconds
+  isPlatformNotSupported: navigator.platform.indexOf("Mac") != -1, // see bug 136524
+  isTimerSupported: navigator.platform.indexOf("Win") == -1,
+
+  mCurrentDragOverTarget: null,
+  mCurrentDropPosition: null,
+  loadTimer  : null,
+  closeTimer : null,
+  loadTarget : null,
+  closeTarget: null,
+
+  _observers : null,
+  get mObservers ()
+  {
+    if (!this._observers) {
+      this._observers = [
+        document.getElementById("bookmarks-ptf"),
+        document.getElementById("bookmarks-menu").parentNode,
+        document.getElementById("bookmarks-chevron").parentNode
+      ]
+    }
+    return this._observers;
+  },
+
+  getObserverForNode: function (aNode)
+  {
+    if (!aNode)
+      return null;
+    var node = aNode;
+    var observer;
+    do {
+      for (var i=0; i < this.mObservers.length; i++) {
+        observer = this.mObservers[i];
+        if (observer == node)
+          return observer;
+      }
+      node = node.parentNode;
+    } while (node != document)
+    return null;
+  },
+
+  onDragCloseMenu: function (aNode)
+  {
+    var children = aNode.childNodes;
+    for (var i = 0; i < children.length; i++) {
+      if (this.isContainer(children[i]) && 
+          children[i].getAttribute("open") == "true") {
+        this.onDragCloseMenu(children[i].lastChild);
+        if (children[i] != this.mCurrentDragOverTarget || this.mCurrentDropPosition != BookmarksUtils.DROP_ON)
+          children[i].lastChild.hidePopup();
+      }
+    } 
+  },
+
+  onDragCloseTarget: function ()
+  {
+    var currentObserver = this.getObserverForNode(this.mCurrentDragOverTarget);
+    // close all the menus not hovered by the mouse
+    for (var i=0; i < this.mObservers.length; i++) {
+      if (currentObserver != this.mObservers[i])
+        this.onDragCloseMenu(this.mObservers[i]);
+      else
+        this.onDragCloseMenu(this.mCurrentDragOverTarget.parentNode);
+    }
+  },
+
+  onDragLoadTarget: function (aTarget) 
+  {
+    if (!this.mCurrentDragOverTarget)
+      return;
+    // Load the current menu
+    if (this.mCurrentDropPosition == BookmarksUtils.DROP_ON && 
+        this.isContainer(aTarget)             && 
+        aTarget.getAttribute("group") != "true")
+      aTarget.lastChild.showPopup(aTarget);
+  },
+
+  onDragOverCheckTimers: function ()
+  {
+    var now = new Date().getTime();
+    if (this.closeTimer && now-this.springLoadedMenuDelay>this.closeTimer) {
+      this.onDragCloseTarget();
+      this.closeTimer = null;
+    }
+    if (this.loadTimer && (now-this.springLoadedMenuDelay>this.loadTimer)) {
+      this.onDragLoadTarget(this.loadTarget);
+      this.loadTimer = null;
+    }
+  },
+
+  onDragEnterSetTimer: function (aTarget, aDragSession)
+  {
+    if (this.isPlatformNotSupported)
+      return;
+    if (this.isTimerSupported) {
+      var targetToBeLoaded = aTarget;
+      clearTimeout(this.loadTimer);
+      if (aTarget == aDragSession.sourceNode)
+        return;
+      //XXX Hack: see bug 139645
+      var thisHack = this;
+      this.loadTimer=setTimeout(function () {thisHack.onDragLoadTarget(targetToBeLoaded)}, this.springLoadedMenuDelay);
+    } else {
+      var now = new Date().getTime();
+      this.loadTimer  = now;
+      this.loadTarget = aTarget;
+    }
+  },
+
+  onDragExitSetTimer: function (aTarget, aDragSession)
+  {
+    if (this.isPlatformNotSupported)
+      return;
+    var thisHack = this;
+    if (this.isTimerSupported) {
+      clearTimeout(this.closeTimer)
+      this.closeTimer=setTimeout(function () {thisHack.onDragCloseTarget()}, this.springLoadedMenuDelay);
+    } else {
+      var now = new Date().getTime();
+      this.closeTimer  = now;
+      this.closeTarget = aTarget;
+      this.loadTimer = null;
+
+      // If user isn't rearranging within the menu, close it
+      // To do so, we exploit a Mac bug: timeout set during
+      // drag and drop on Windows and Mac are fired only after that the drop is released.
+      // timeouts will pile up, we may have a better approach but for the moment, this one
+      // correctly close the menus after a drop/cancel outside the personal toolbar.
+      // The if statement in the function has been introduced to deal with rare but reproducible
+      // missing Exit events.
+      if (aDragSession.sourceNode.localName != "menuitem" && aDragSession.sourceNode.localName != "menu")
+        setTimeout(function () { if (thisHack.mCurrentDragOverTarget) {thisHack.onDragRemoveFeedBack(thisHack.mCurrentDragOverTarget); thisHack.mCurrentDragOverTarget=null} thisHack.loadTimer=null; thisHack.onDragCloseTarget() }, 0);
+    }
+  },
+
+  onDragSetFeedBack: function (aTarget, aOrientation)
+  {
+   switch (aTarget.localName) {
+      case "toolbarseparator":
+      case "toolbarbutton":
+        switch (aOrientation) {
+          case BookmarksUtils.DROP_BEFORE: 
+            aTarget.setAttribute("dragover-left", "true");
+            break;
+          case BookmarksUtils.DROP_AFTER:
+            aTarget.setAttribute("dragover-right", "true");
+            break;
+          case BookmarksUtils.DROP_ON:
+            aTarget.setAttribute("dragover-top"   , "true");
+            aTarget.setAttribute("dragover-bottom", "true");
+            aTarget.setAttribute("dragover-left"  , "true");
+            aTarget.setAttribute("dragover-right" , "true");
+            break;
+        }
+        break;
+      case "menuseparator": 
+      case "menu":
+      case "menuitem":
+        switch (aOrientation) {
+          case BookmarksUtils.DROP_BEFORE: 
+            aTarget.setAttribute("dragover-top", "true");
+            break;
+          case BookmarksUtils.DROP_AFTER:
+            aTarget.setAttribute("dragover-bottom", "true");
+            break;
+          case BookmarksUtils.DROP_ON:
+            break;
+        }
+        break;
+      case "hbox"     : 
+        // hit between the last visible bookmark and the chevron
+        var newTarget = BookmarksToolbar.getLastVisibleBookmark();
+        if (newTarget)
+          newTarget.setAttribute("dragover-right", "true");
+        break;
+      case "stack"    :
+      case "menupopup": break; 
+     default: dump("No feedback for: "+aTarget.localName+"\n");
+    }
+  },
+
+  onDragRemoveFeedBack: function (aTarget)
+  { 
+    var newTarget;
+    var bt;
+    if (aTarget.id == "bookmarks-ptf") { 
+      // hit when dropping in the bt or between the last visible bookmark 
+      // and the chevron
+      newTarget = BookmarksToolbar.getLastVisibleBookmark();
+      if (newTarget)
+        newTarget.removeAttribute("dragover-right");
+    } else if (aTarget.id == "bookmarks-stack") {
+      newTarget = BookmarksToolbar.getLastVisibleBookmark();
+      newTarget.removeAttribute("dragover-right");
+    } else {
+      aTarget.removeAttribute("dragover-left");
+      aTarget.removeAttribute("dragover-right");
+      aTarget.removeAttribute("dragover-top");
+      aTarget.removeAttribute("dragover-bottom");
+    }
+  },
+
+  onDropSetFeedBack: function (aTarget)
+  {
+    //XXX Not yet...
+  },
+
+  isContainer: function (aTarget)
+  {
+    return aTarget.localName == "menu"          || 
+           aTarget.localName == "toolbarbutton" &&
+           aTarget.getAttribute("type") == "menu";
+  }
+}
+
+var BookmarksToolbar = 
+{
+  /////////////////////////////////////////////////////////////////////////////
+  // returns the node of the last visible bookmark on the toolbar -->
+  getLastVisibleBookmark: function ()
+  {
+    var buttons = document.getElementById("bookmarks-ptf");
+    var button = buttons.childNodes[3].nextSibling;
+    if (!button)
+      return null; // empty bookmarks toolbar
+    do {
+      if (button.collapsed)
+        return button.previousSibling;
+      button = button.nextSibling;
+    } while (button)
+    return buttons.lastChild;
+  },
+
+  updateOverflowMenu: function (aMenuPopup)
+  {
+    var hbox = document.getElementById("bookmarks-ptf");
+    for (var i = 4; i < hbox.childNodes.length; i++) {
+      var button = hbox.childNodes[i];
+      var menu = aMenuPopup.childNodes[i-4];
+      if (menu.collapsed == button.collapsed)
+        menu.collapsed = !menu.collapsed;
+    }
+  },
+
+  resizeFunc: function(event) 
+  { 
+    var buttons = document.getElementById("bookmarks-ptf");
+    if (!buttons)
+      return;
+    var chevron = document.getElementById("bookmarks-chevron");
+    var width = window.innerWidth;
+    chevron.collapsed = true;
+    var overflowed = false;
+
+    for (var i=4; i<buttons.childNodes.length; i++) {
+      var button = buttons.childNodes[i];
+      button.collapsed = overflowed;
+      
+      if (button.boxObject.x + button.boxObject.width > width) {
+        overflowed = true;
+        // This button doesn't fit. Show it in the menu. Hide it in the toolbar.
+        if (!button.collapsed)
+          button.collapsed = true;
+        if (chevron.collapsed) {
+          chevron.collapsed = false;
+          var overflowPadder = document.getElementById("overflow-padder");
+          overflowPadder.width = width - chevron.boxObject.width - buttons.boxObject.x;
+        }
+      }
+    }
+  },
+
+  // Fill in tooltips for personal toolbar
+  fillInBTTooltip: function (tipElement)
+  {
+
+    var title = tipElement.label;
+    var url = tipElement.statusText;
+
+    if (!title && !url) {
+      // bail out early if there is nothing to show
+      return false;
+    }
+
+    var tooltipTitle = document.getElementById("btTitleText");
+    var tooltipUrl = document.getElementById("btUrlText"); 
+    if (title && title != url) {
+      tooltipTitle.removeAttribute("hidden");
+      tooltipTitle.setAttribute("value", title);
+    } else  {
+      tooltipTitle.setAttribute("hidden", "true");
+    }
+    if (url) {
+      tooltipUrl.removeAttribute("hidden");
+      tooltipUrl.setAttribute("value", url);
+    } else {
+      tooltipUrl.setAttribute("hidden", "true");
+    }
+    return true; // show tooltip
+  }
+}
+
+// Implement nsIRDFObserver so we can update our overflow state when items get
+// added/removed from the toolbar
+var BookmarksToolbarRDFObserver =
+{
+  onAssert: function (aDataSource, aSource, aProperty, aTarget)
+  {
+    this.setOverflowTimeout(aSource, aProperty);
+  },
+  onUnassert: function (aDataSource, aSource, aProperty, aTarget)
+  {
+    this.setOverflowTimeout(aSource, aProperty);
+  },
+  onChange: function (aDataSource, aSource, aProperty, aOldTarget, aNewTarget) {},
+  onMove: function (aDataSource, aOldSource, aNewSource, aProperty, aTarget) {},
+  beginUpdateBatch: function (aDataSource) {},
+  endUpdateBatch:   function (aDataSource) {},
+
+  _overflowTimerInEffect: false,
+  setOverflowTimeout: function (aSource, aProperty)
+  {
+    if (this._overflowTimerInEffect)
+      return;
+    if (aSource.Value != "NC:PersonalToolbarFolder" || aProperty.Value == NC_NS+"LastModifiedDate")
+      return;
+    this._overflowTimerInEffect = true;
+    setTimeout("function(){BookmarksToolbar.resizeFunc(null);BookmarksToolbarRDFObserver._overflowTimerInEffect=false;}", 0);
+  }
+}
+
+/*
+constructor
+{
+        var hbox = (document.getAnonymousNodes(this))[0].firstChild;
+
+        var theToolbar = this;
+        this.resizeFunc = resizeFunc;
+        window.addEventListener("resize", resizeFunc, false);
+        hbox.database.AddObserver(this);
+}
+
+
+destructor
+{
+        var hbox = (document.getAnonymousNodes(this))[0].firstChild;
+        this.toolbar.controllers.removeController(this.commandController);
+        hbox.database.RemoveObserver(this);
+}
+
+      <property name="toolbar">
+        <getter><![CDATA[
+          return document.getAnonymousElementByAttribute(this, "anonid", "bookmarks-ptf");
+        ]]></getter>
+      </property>
+
+      <field name="resizeFunc">null</field>
+
+       
+*/
diff --git a/browser/components/bookmarks/jar.mn b/browser/components/bookmarks/jar.mn
index 67561b1876fe..d7c8245aa33c 100644
--- a/browser/components/bookmarks/jar.mn
+++ b/browser/components/bookmarks/jar.mn
@@ -20,8 +20,8 @@
 browser.jar:
    content/browser/bookmarks/bookmarks.css                    (content/bookmarks.css)
 *  content/browser/bookmarks/bookmarks.js                     (content/bookmarks.js)
+*  content/browser/bookmarks/bookmarksMenu.js                 (content/bookmarksMenu.js)
 *  content/browser/bookmarks/bookmarksTree.xml                (content/bookmarksTree.xml)
-*  content/browser/bookmarks/bookmarksToolbar.xml             (content/bookmarksToolbar.xml)
    content/browser/bookmarks/addBookmark.xul                  (content/addBookmark.xul)        
    content/browser/bookmarks/addBookmark.js                   (content/addBookmark.js)
 *  content/browser/bookmarks/addBookmark2.xul                 (content/addBookmark2.xul)