diff --git a/browser/components/places/content/controller.js b/browser/components/places/content/controller.js
index 3ef44a44d8f1..b4a8bd6cedb5 100755
--- a/browser/components/places/content/controller.js
+++ b/browser/components/places/content/controller.js
@@ -62,9 +62,15 @@ const TYPE_HTML = "text/html";
 // Place entries as raw URL text
 const TYPE_UNICODE = "text/unicode";
 
+// No change to the view, preserve current selection
 const RELOAD_ACTION_NOTHING = 0;
+// Inserting items new to the view, select the inserted rows
 const RELOAD_ACTION_INSERT = 1;
+// Removing items from the view, select the first item after the last selected
 const RELOAD_ACTION_REMOVE = 2;
+// Moving items within a view, don't treat the dropped items as additional 
+// rows.
+const RELOAD_ACTION_MOVE = 3;
 
 function STACK(args) {
   var temp = arguments.callee.caller;
@@ -1015,7 +1021,8 @@ var PlacesControllerDragHelper = {
     var copy = session.dragAction & Ci.nsIDragService.DRAGDROP_ACTION_COPY;
     var transactions = [];
     var xferable = this._initTransferable(targetView, orientation);
-    for (var i = 0; i < session.numDropItems; ++i) {
+    var dropCount = session.numDropItems;
+    for (var i = 0; i < dropCount; ++i) {
       session.getData(xferable, i);
     
       var data = { }, flavor = { };
@@ -1030,14 +1037,23 @@ var PlacesControllerDragHelper = {
                         insertionPoint.index, copy));
     }
     
-    if (sourceView)
-      sourceView.willReloadView(RELOAD_ACTION_REMOVE, sourceView, null, 
-                                session.numDropItems);
-    PlacesController.willReloadView(RELOAD_ACTION_INSERT, targetView, 
-                                    insertionPoint, session.numDropItems);
+    if (sourceView == targetView) {
+      // When we're rearranging the contents of the current view, we 
+      // invoke separate handling that takes care not to count the 
+      // dropCount as added rows - they just changed index.
+      PlacesController.willReloadView(RELOAD_ACTION_MOVE, targetView,
+                                      insertionPoint, dropCount);
+    }
+    else {
+      if (sourceView)
+        sourceView.willReloadView(RELOAD_ACTION_REMOVE, sourceView, null, 
+                                  dropCount);
+      PlacesController.willReloadView(RELOAD_ACTION_INSERT, targetView, 
+                                      insertionPoint, dropCount);
+    }
     var txn = new PlacesAggregateTransaction("DropItems", transactions);
     PlacesController._hist.transactionManager.doTransaction(txn);
-    if (sourceView)
+    if (sourceView && sourceView != targetView)
       sourceView.didReloadView(sourceView);
     PlacesController.didReloadView(targetView);
   }
diff --git a/browser/components/places/content/tree.xml b/browser/components/places/content/tree.xml
index 1eb197b35c37..f2d94278acc8 100644
--- a/browser/components/places/content/tree.xml
+++ b/browser/components/places/content/tree.xml
@@ -478,6 +478,25 @@
               this._selection.push({ min: min.value, max: max.value });
             }
             break;
+          case RELOAD_ACTION_MOVE:
+            // Insert index of insertion and number of rows to insert
+            var query = this._places.getNewQuery();
+            query.setFolders([insertionPoint.folderId], 1);
+            query.itemTypes = this.filterOptions;
+            var options = this._places.getNewQueryOptions();
+            options.setGroupingMode([Ci.nsINavHistoryQueryOptions.GROUP_BY_FOLDER], 1);
+            var result = this._places.executeQuery(query, options);
+            if (insertionPoint.index > -1) {
+              var node = result.getChild(insertionPoint.index - 1);
+              var index = this.getResult().treeIndexForNode(node);
+              if (insertionPoint.index == result.childCount)
+                ++index;
+            }
+            else 
+              index = this.getResult().childCount;
+            var max = index + count - 1;            
+            this._selection = [{ min: index, max: max }];
+            break;
           case RELOAD_ACTION_INSERT:
             // Insert index of insertion and number of rows to insert
             var query = this._places.getNewQuery();
@@ -505,8 +524,8 @@
             this._selection = [{ min: min.value, max: min.value }];
             break;
           }
-          if (this._selection.length)
-            LOG("SET UP RANGE: " + this._selection[0].toSource() + " for " + this.id + " action = " + action);
+          //if (this._selection.length)
+          //  LOG("SET UP RANGE: " + this._selection[0].toSource() + " for " + this.id + " action = " + action);
         ]]></body>
       </method>
       
@@ -519,7 +538,7 @@
           selection.clearSelection();
           for (var i = 0; i < this._selection.length; ++i) {
             var range = this._selection[i];
-            LOG("RESELECTING RANGE: " + range.min + "," + range.max + " in: " + this.id);
+            //LOG("RESELECTING RANGE: " + range.min + "," + range.max + " in: " + this.id);
             selection.rangedSelect(range.min, range.max, true);
           }
           if (view != this.view)