diff --git a/browser/base/content/browser-places.js b/browser/base/content/browser-places.js
index feca1eb349c9..399675fffa3d 100644
--- a/browser/base/content/browser-places.js
+++ b/browser/base/content/browser-places.js
@@ -105,10 +105,13 @@ var PlacesCommandHook = {
   },
 
   /**
-   * Adds a bookmark to the page loaded in the given browser
+   * Adds a bookmark to the page loaded in the given browser.
    *
    * @param aBrowser
-   *        a <browser> element
+   *        a <browser> element.
+   * @param [optional] aParent
+   *        The folder in which to create a new bookmark if the page loaded in
+   *        aBrowser isn't bookmarked yet, defaults to the places root.
    * @param [optional] aShowEditUI
    *        whether or not to show the edit-bookmark UI for the bookmark item
    * @param [optional] aAnchorElement
@@ -116,10 +119,9 @@ var PlacesCommandHook = {
    * @param [optional] aPosition
    *        required if aShowEditUI is set, see popup's openPopup.
    */  
-  bookmarkPage: function PCH_bookmarkPage(aBrowser, aShowEditUI,
+  bookmarkPage: function PCH_bookmarkPage(aBrowser, aParent, aShowEditUI,
                                           aAnchorElement, aPosition) {
     var uri = aBrowser.currentURI;
-
     var itemId = PlacesUtils.getMostRecentBookmarkForURI(uri);
     if (itemId == -1) {
       // Copied over from addBookmarkForBrowser:
@@ -138,8 +140,9 @@ var PlacesCommandHook = {
       }
       catch (e) { }
 
+      var parent = aParent != undefined ? aParent : PlacesUtils.placesRootId;
       var descAnno = { name: DESCRIPTION_ANNO, value: description };
-      var txn = PlacesUtils.ptm.createItem(uri, PlacesUtils.placesRootId, -1,
+      var txn = PlacesUtils.ptm.createItem(uri, parent, -1,
                                            title, null, [descAnno]);
       PlacesUtils.ptm.commitTransaction(txn);
       if (aShowEditUI)
@@ -153,33 +156,36 @@ var PlacesCommandHook = {
   /**
    * Adds a bookmark to the page loaded in the current tab. 
    */
-  bookmarkCurrentPage: function PCH_bookmarkCurrentPage(aShowEditUI) {
+  bookmarkCurrentPage: function PCH_bookmarkCurrentPage(aShowEditUI, aParent) {
     // dock the panel to the star icon if it is visible, otherwise dock
     // it to the content area
-    var starIcon = document.getElementById("star-icon");
+    var starIcon = document.getElementById("star-button");
     if (starIcon && isElementVisible(starIcon)) {
-      this.bookmarkPage(getBrowser().selectedBrowser, aShowEditUI, starIcon,
-                        "after_end");
+      var dockTo = document.getElementById("go-button-bottom");
+      this.bookmarkPage(getBrowser().selectedBrowser, aParent, aShowEditUI,
+                        dockTo, "after_start");
     }
     else {
-      this.bookmarkPage(getBrowser().selectedBrowser, aShowEditUI, getBrowser(),
-                        "overlap");
+      this.bookmarkPage(getBrowser().selectedBrowser, aParent, aShowEditUI,
+                        getBrowser(), "overlap");
     }
   },
 
   /**
    * Adds a bookmark to the page targeted by a link.
-   * @param   url
-   *          The address of the link target
-   * @param   title
-   *          The link text
+   * @param aParent
+   *        The folder in which to create a new bookmark if aURL isn't
+   *        bookmarked.
+   * @param aURL (string)
+   *        the address of the link target
+   * @param aTitle
+   *        The link text
    */
-  bookmarkLink: function PCH_bookmarkLink(url, title) {
-    var linkURI = IO.newURI(url)
+  bookmarkLink: function PCH_bookmarkLink(aParent, aURL, aTitle) {
+    var linkURI = IO.newURI(aURL)
     var itemId = PlacesUtils.getMostRecentBookmarkForURI(linkURI);
     if (itemId == -1) {
-      var txn = PlacesUtils.ptm.createItem(linkURI, PlacesUtils.placesRootId, -1,
-                                           title);
+      var txn = PlacesUtils.ptm.createItem(linkURI, aParent, -1, aTitle);
       PlacesUtils.ptm.commitTransaction(txn);
       itemId = PlacesUtils.getMostRecentBookmarkForURI(linkURI);
     }
@@ -728,12 +734,12 @@ var PlacesStarButton = {
   _batching: false,
 
   updateState: function PSB_updateState() {
-    var starIcon = document.getElementById("star-icon");
+    var starIcon = document.getElementById("star-button");
     if (!starIcon)
       return;
 
     var uri = getBrowser().currentURI;
-    this._starred = uri && PlacesUtils.bookmarks.isBookmarked(uri);
+    this._starred = uri && (PlacesUtils.getMostRecentBookmarkForURI(uri) != -1);
     if (this._starred)
       starIcon.setAttribute("starred", "true");
     else
diff --git a/browser/base/content/browser-sets.inc b/browser/base/content/browser-sets.inc
index 0878e2e142f7..2c4f17c7afd3 100644
--- a/browser/base/content/browser-sets.inc
+++ b/browser/base/content/browser-sets.inc
@@ -88,7 +88,7 @@
              observes="isImage"/>
     <!-- work-around bug 392512 -->
     <command id="Browser:AddBookmarkAs" 
-             oncommand="setTimeout(function() { PlacesCommandHook.bookmarkCurrentPage(true); }, 0);"/>
+             oncommand="PlacesCommandHook.bookmarkCurrentPage(true, PlacesUtils.bookmarksRootId);"/>
     <!-- The command is disabled for the hidden window. Otherwise its enabled
          state is handled by the BookmarkAllTabsHandler object. -->
     <command id="Browser:BookmarkAllTabs"
diff --git a/browser/base/content/browser.js b/browser/base/content/browser.js
index db24b379ea03..7b39af065498 100644
--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -284,10 +284,9 @@ function BookmarkThisTab()
   if (tab.localName != "tab")
     tab = getBrowser().mCurrentTab;
 
-  setTimeout(function() { // workaround bug 392512
-    PlacesCommandHook.bookmarkPage(tab.linkedBrowser, true, getBrowser(),
-                                   "overlap")
-  }, 0);
+  PlacesCommandHook.bookmarkPage(tab.linkedBrowser,
+                                 PlacesUtils.bookmarksRootId,
+                                 true, getBrowser(), "overlap");
 }
 
 /**
diff --git a/browser/base/content/browser.xul b/browser/base/content/browser.xul
index 753fb9143524..406f30a4d827 100644
--- a/browser/base/content/browser.xul
+++ b/browser/base/content/browser.xul
@@ -261,7 +261,6 @@
                        level="safe"
                        onclick="goDoCommand('safebrowsing-show-warning')" />
 #endif
-                <image id="star-icon" onclick="if (event.button == 0) PlacesStarButton.onClick(event);"/>
               </hbox>
             </textbox>
             <stack id="go-button-stack">
@@ -284,15 +283,17 @@
                        chromedir="&locale.dir;" />
               </vbox>
 							
-            <toolbarbutton id="go-button"
-                           flex="1"
-                           chromedir="&locale.dir;"
-                           label="&goEndCap.label;"
-                           onclick="handleURLBarCommand(event);"
-                           ondragover="nsDragAndDrop.dragOver(event, goButtonObserver);"
-                           ondragdrop="nsDragAndDrop.drop(event, goButtonObserver);"
-                           ondragexit="nsDragAndDrop.dragExit(event, goButtonObserver);"
-                           tooltiptext="&goEndCap.tooltip;"/>
+              <hbox>
+                <toolbarbutton id="star-button" onclick="if (event.button == 0) PlacesStarButton.onClick(event);"/>
+                <toolbarbutton id="go-button"
+                               chromedir="&locale.dir;"
+                               label="&goEndCap.label;"
+                               onclick="handleURLBarCommand(event);"
+                               ondragover="nsDragAndDrop.dragOver(event, goButtonObserver);"
+                               ondragdrop="nsDragAndDrop.drop(event, goButtonObserver);"
+                               ondragexit="nsDragAndDrop.dragExit(event, goButtonObserver);"
+                               tooltiptext="&goEndCap.tooltip;"/>
+              </hbox>
           </stack>
         </hbox>
       </toolbaritem>
diff --git a/browser/base/content/nsContextMenu.js b/browser/base/content/nsContextMenu.js
index 648b7bbe167c..2bcf606a8f17 100644
--- a/browser/base/content/nsContextMenu.js
+++ b/browser/base/content/nsContextMenu.js
@@ -1123,17 +1123,13 @@ nsContextMenu.prototype = {
   },
 
   bookmarkThisPage: function CM_bookmarkThisPage() {
-    // workaround bug 392512
-    setTimeout(function(aSelf) {
-      PlacesCommandHook.bookmarkPage(aSelf.browser, true, aSelf.browser,
-                                     "overlap"); }, 0, this);
+    PlacesCommandHook.bookmarkPage(this.browser, PlacesUtils.bookmarksRootId,
+                                   true, this.browser, "overlap");
   },
 
   bookmarkLink: function CM_bookmarkLink() {
-    // workaround bug 392512
-    setTimeout(function(aSelf) {
-      PlacesCommandHook.bookmarkLink(aSelf.linkURL, aSelf.linkText());
-    }, 0, this);
+    PlacesCommandHook.bookmarkLink(PlacesUtils.bookmarksRootId, this.linkURL,
+                                   this.linkText());
   },
 
   addBookmarkForFrame: function CM_addBookmarkForFrame() {
@@ -1146,16 +1142,13 @@ nsContextMenu.prototype = {
       var description = PlacesUtils.getDescriptionFromDocument(doc);
 
       var descAnno = { name: DESCRIPTION_ANNO, value: description };
-      var txn = PlacesUtils.ptm.createItem(uri, PlacesUtils.placesRootId, -1,
+      var txn = PlacesUtils.ptm.createItem(uri, PlacesUtils.bookmarksRootId, -1,
                                            title, null, [descAnno]);
       PlacesUtils.ptm.commitTransaction(txn);
       itemId = PlacesUtils.getMostRecentBookmarkForURI(uri);
     }
 
-    // workaround bug 392512
-    setTimeout(function(aSelf) {
-      PlacesCommandHook.showEditBookmarkPopup(itemId, aSelf.browser, "overlap");
-    }, 0, this);
+    PlacesCommandHook.showEditBookmarkPopup(itemId, this.browser, "overlap");
   },
 
   savePageAs: function CM_savePageAs() {
diff --git a/browser/components/places/content/editBookmarkOverlay.js b/browser/components/places/content/editBookmarkOverlay.js
index 873a240f200d..f640c89f854f 100644
--- a/browser/components/places/content/editBookmarkOverlay.js
+++ b/browser/components/places/content/editBookmarkOverlay.js
@@ -348,7 +348,7 @@ var gEditItemOverlay = {
       // hide the tag selector if it was previously visible
       var tagsSelector = this._element("tagsSelector");
       if (!tagsSelector.collapsed)
-        tagsSelector.collapsed = true;
+        this._toggleTagsSelector();
     }
 
     if (this._observersAdded) {
@@ -547,7 +547,7 @@ var gEditItemOverlay = {
     // Update folder-tree selection
     if (isElementVisible(this._folderTree)) {
       var selectedNode = this._folderTree.selectedNode;
-      if (selectedNode.itemId != container)
+      if (!selectedNode || selectedNode.itemId != container)
         this._folderTree.selectFolders([container]);
     }
   },
@@ -558,13 +558,7 @@ var gEditItemOverlay = {
       return;
 
     var folderId = selectedNode.itemId;
-    // Don't set the selected item if the static item for the folder is
-    // already selected
-    var oldSelectedItem = this._folderMenuList.selectedItem;
-    if ((oldSelectedItem.id == "editBMPanel_toolbarFolderItem" &&
-         folderId == PlacesUtils.toolbarFolderId) ||
-        (oldSelectedItem.id == "editBMPanel_bmRootItem" &&
-         folderId == PlacesUtils.bookmarksRootId))
+    if (this._getFolderIdFromMenuList() == folderId)
       return;
 
     var folderItem = this._getFolderMenuItem(folderId, false);
diff --git a/browser/components/places/content/editBookmarkOverlay.xul b/browser/components/places/content/editBookmarkOverlay.xul
index 8b4d928af56d..0fe726b5e542 100644
--- a/browser/components/places/content/editBookmarkOverlay.xul
+++ b/browser/components/places/content/editBookmarkOverlay.xul
@@ -74,12 +74,14 @@
             </menupopup>
           </menulist>
         </row>
+
         <row align="center" id="editBMPanel_locationRow">
           <label value="&editBookmarkOverlay.location.label;"
                  contorl="editBMPanel_locationField"/>
           <textbox id="editBMPanel_locationField"
                    onblur="gEditItemOverlay.onLocationFieldBlur();"/>
         </row>
+
         <row align="center" id="editBMPanel_folderRow">
           <label value="&editBookmarkOverlay.folder.label;"
                  control="editBMPanel_folderMenuList"/>
@@ -107,6 +109,7 @@
                   tooltiptextup="&editBookmarkOverlay.expanderUp.tooltip;"
                   oncommand="gEditItemOverlay.toggleFolderTreeVisibility();"/>
         </row>
+
         <tree id="editBMPanel_folderTree"
               class="placesTree"
               type="places"
@@ -121,6 +124,7 @@
           </treecols>
           <treechildren flex="1"/>
         </tree>
+
         <row align="center" id="editBMPanel_tagsRow">
           <label value="&editBookmarkOverlay.tags.label;"
                  control="tagsField"/>
@@ -134,10 +138,7 @@
                   oncommand="gEditItemOverlay.toggleTagsSelector();"/>
         </row>
 
-        <!-- XXX: Temporary workaround -->
-        </rows></grid>
         <listbox id="editBMPanel_tagsSelector" height="150" collapsed="true"/>
-        <grid flex="1"><columns><column/><column flex="1"/></columns><rows>
 
         <row id="editBMPanel_descriptionRow" align="center">
           <label value="&editBookmarkOverlay.description.label;"
diff --git a/browser/components/places/content/utils.js b/browser/components/places/content/utils.js
index 40fa9013a070..904a25b75978 100644
--- a/browser/components/places/content/utils.js
+++ b/browser/components/places/content/utils.js
@@ -1495,7 +1495,7 @@ var PlacesUtils = {
 
   /**
    * Get the most recently added/modified bookmark for a URL, excluding items
-   * under tag containers. -1 is returned if no item is found.
+   * under tag or livemark containers. -1 is returned if no item is found.
    */
   getMostRecentBookmarkForURI:
   function PU_getMostRecentBookmarkForURI(aURI) {
@@ -1503,10 +1503,12 @@ var PlacesUtils = {
     for each (var bk in bmkIds) {
       // Find the first folder which isn't a tag container
       var folder = this.bookmarks.getFolderIdForItem(bk);
-      if (folder == this.placesRootId ||
-        this.bookmarks.getFolderIdForItem(folder) != this.tagRootId) {
+      if (folder == this.placesRootId)
+        return bk;
+      var parent = this.bookmarks.getFolderIdForItem(folder)
+      if (parent != this.tagRootId &&
+          !this.annotations.itemHasAnnotation(parent, "livemark/feedURI"))
         return bk;
-      }
     }
     return -1;
   }
diff --git a/browser/themes/pinstripe/browser/browser.css b/browser/themes/pinstripe/browser/browser.css
index b506f30783fe..9de75f6ea15c 100755
--- a/browser/themes/pinstripe/browser/browser.css
+++ b/browser/themes/pinstripe/browser/browser.css
@@ -1037,6 +1037,26 @@ toolbarpaletteitem:not([place="toolbar"]) .search-go-button {
   padding: 0px;
 }
 
+/* STAR BUTTON */
+#star-button {
+  list-style-image: url("chrome://browser/skin/places/starPage.png");
+  margin: 0;
+  padding: 0;
+  max-width: 0;
+  height: 24px;
+}
+
+#star-button > .toolbarbutton-icon {
+  padding: 2px 2px 2px 0;
+  border: 1px solid #A3A3A3;
+  border-left: 0;
+  background: url("chrome://global/skin/10pct_transparent_grey.png") repeat;
+}
+
+#star-button[starred="true"] {
+  list-style-image: url("chrome://browser/skin/places/pageStarred.png");
+}
+
 /* ----- SIDEBAR ELEMENTS ----- */
 
 sidebarheader {
@@ -1666,13 +1686,3 @@ toolbarbutton.bookmark-item[dragover="true"][open="true"] {
   -moz-border-left-colors: ThreeDLightShadow ThreeDHighlight !important;
 }
 
-/* star icon */
-#star-icon {
-  list-style-image: url("chrome://browser/skin/places/starPage.png");
-  width: 16px;
-  height: 16px;
-}
-
-#star-icon[starred="true"] {
-  list-style-image: url("chrome://browser/skin/places/pageStarred.png");
-}
diff --git a/browser/themes/winstripe/browser/browser.css b/browser/themes/winstripe/browser/browser.css
index 2ca9a55b5308..db53a667fbe5 100644
--- a/browser/themes/winstripe/browser/browser.css
+++ b/browser/themes/winstripe/browser/browser.css
@@ -1025,6 +1025,20 @@ toolbar:not([mode="text"]) #go-button,
   padding: 0;
 }
 
+/* star button */
+toolbar:not([mode="text"]) #star-button,
+#palette-box #star-button {
+  -moz-appearance: none;
+  list-style-image: url("chrome://browser/skin/places/starPage.png");
+  padding: 0;
+  border: none;
+}
+
+toolbar:not([mode="text"]) #star-button[starred="true"],
+#palette-box #star-button[starred="true"] {
+  list-style-image: url("chrome://browser/skin/places/pageStarred.png");
+}
+
 #go-button[chromedir="rtl"] {
   list-style-image: url("chrome://browser/skin/Go-arrow-rtl.png");
 }
@@ -1928,14 +1942,3 @@ toolbarbutton.bookmark-item[dragover="true"][open="true"] {
 .bookmark-item[dragover-bottom="true"] {
   -moz-border-bottom-colors: #000000;
 }
-
-/* star icon */
-#star-icon {
-  list-style-image: url("chrome://browser/skin/places/starPage.png");
-  width: 16px;
-  height: 16px;
-}
-
-#star-icon[starred="true"] {
-  list-style-image: url("chrome://browser/skin/places/pageStarred.png");
-}