diff --git a/sugar/shell/PresenceWindow.py b/sugar/shell/PresenceWindow.py
index 29687cf4..a216073b 100644
--- a/sugar/shell/PresenceWindow.py
+++ b/sugar/shell/PresenceWindow.py
@@ -12,7 +12,7 @@ class PresenceWindow(gtk.Window):
 	_MODEL_COL_VISIBLE = 3
 		
 	def __init__(self, activity_container):
-		gtk.Window.__init__(self, gtk.WINDOW_POPUP)
+		gtk.Window.__init__(self)
 		
 		self._activity_container = activity_container
 		self._activity = None
diff --git a/sugar/shell/WindowManager.py b/sugar/shell/WindowManager.py
index c4a5804d..199dacc9 100644
--- a/sugar/shell/WindowManager.py
+++ b/sugar/shell/WindowManager.py
@@ -15,49 +15,13 @@ class WindowManager:
 	ABSOLUTE = 0
 	SCREEN_RELATIVE = 1
 	
-	VISIBLE = 0
-	SLIDED_IN = 1
-	HIDDEN = 2
-
 	def __init__(self, window):
 		self._window = window
-		self._visibility = WindowManager.HIDDEN
 
 		WindowManager.__managers_list.append(self)
 		
 		window.connect("key-press-event", self.__key_press_event_cb)
-		window.connect("focus-in-event", self.__focus_in_event_cb)
-		window.connect_after("focus-out-event", self.__focus_out_event_cb)
 
-	def has_focus(self):
-		return self._window.has_toplevel_focus()
-
-	def _update_visibility(self):		
-		visible = False
-		
-		if self._visibility is WindowManager.VISIBLE:
-			visible = True
-		elif self._visibility is WindowManager.HIDDEN:
-			visible = False
-		elif self._visibility is WindowManager.SLIDED_IN:
-			for manager in WindowManager.__managers_list:
-				if manager.has_focus():
-					visible = True
-		
-		if self._window.get_property('visible') != visible:
-			self._window.set_property('visible', visible)
-
-	def __focus_change_idle(self):
-		for manager in WindowManager.__managers_list:
-			manager._update_visibility()
-		return False
-
-	def __focus_in_event_cb(self, window, event):
-		gobject.idle_add(self.__focus_change_idle)
-				
-	def __focus_out_event_cb(self, window, event):
-		gobject.idle_add(self.__focus_change_idle)
-		
 	def __key_press_event_cb(self, window, event):
 		manager = None
 
@@ -117,16 +81,16 @@ class WindowManager:
 		self._window.resize(width, height)
 
 	def slide_window_in(self):
-		self._visibility = WindowManager.SLIDED_IN
-		self._update_visibility()
-	
+		self._window.show()
+		
 	def slide_window_out(self):
-		self._visibility = WindowManager.HIDDEN
-		self._update_visibility()
-	
+		self._window.hide()
+			
 	def show(self):
-		self._visibility = WindowManager.VISIBLE
+		self._window.show()
+
+	def update(self):
+		self._update_size_and_position()
 	
 	def manage(self):
 		self._update_size_and_position()
-		self._update_visibility()
diff --git a/sugar/shell/shell.py b/sugar/shell/shell.py
index 630bde5c..57ca70c3 100755
--- a/sugar/shell/shell.py
+++ b/sugar/shell/shell.py
@@ -72,13 +72,13 @@ class ActivityHost(dbus.service.Object):
 		self.label_hbox.show()
 		
 		hbox.show()
-		
+
+		self._create_chat()
+				
 		notebook = self.activity_container.notebook
 		index = notebook.append_page(self.socket, hbox)
 		notebook.set_current_page(index)
 		
-		self._create_chat()
-		
 	def _create_chat(self):
 		self._group_chat = GroupChat(self)
 
@@ -297,6 +297,8 @@ class ActivityContainer(dbus.service.Object):
 
 		self._presence_window = PresenceWindow(self)
 		self._presence_window.set_transient_for(self.window)
+		self._presence_window.set_decorated(False)
+		self._presence_window.set_skip_taskbar_hint(True)
 
 		wm = WindowManager(self._presence_window)
 	
@@ -305,17 +307,17 @@ class ActivityContainer(dbus.service.Object):
 		wm.set_position(WindowManager.LEFT)
 		wm.manage()
 		
-		self._chat_window = gtk.Window(gtk.WINDOW_POPUP)
+		self._chat_window = gtk.Window()
 		self._chat_window.set_transient_for(self.window)
 		self._chat_window.set_decorated(False)
 		self._chat_window.set_skip_taskbar_hint(True)
 
-		wm = WindowManager(self._chat_window)
+		self._chat_wm = WindowManager(self._chat_window)
 		
-		wm.set_width(0.5, WindowManager.SCREEN_RELATIVE)
-		wm.set_height(0.5, WindowManager.SCREEN_RELATIVE)
-		wm.set_position(WindowManager.TOP)
-		wm.manage()
+		self._chat_wm.set_width(0.5, WindowManager.SCREEN_RELATIVE)
+		self._chat_wm.set_height(0.5, WindowManager.SCREEN_RELATIVE)
+		self._chat_wm.set_position(WindowManager.TOP)
+		self._chat_wm.manage()
 
 	def show(self):
 		self.window.show()
@@ -327,32 +329,30 @@ class ActivityContainer(dbus.service.Object):
 		pass
 
 	def set_current_activity(self, activity):
-		print 'current activity'
-	
 		self.current_activity = activity
 		self._presence_window.set_activity(activity)
 
 		host_chat = self._chat_window.get_child()
 		if host_chat:
-			host_chat.unparent()
+			self._chat_window.remove(host_chat)
 
-		host_chat = activity.get_chat()
-		self._chat_window.add(host_chat)
-		host_chat.show()
+		if activity:
+			host_chat = activity.get_chat()
+			self._chat_window.add(host_chat)
+			host_chat.show()
+
+		# For some reason the substitution screw up window position
+		self._chat_wm.update()
 
 	def notebook_tab_changed(self, notebook, page, page_number):
-		#print "in notebook_tab_changed"
-		#print notebook.get_nth_page(page_number)
 		new_activity = notebook.get_nth_page(page_number).get_data("sugar-activity")
-		#print " Current activity: ", self.current_activity
-		#print " New activity:	 ", new_activity
 
 		if self.current_activity != None:
 			if self.has_activity(self.current_activity):
 				self.current_activity.peer_service.lost_focus(reply_handler = self.__focus_reply_cb, error_handler = self.__focus_error_cb)
 		
-		if self.has_activity(new_activity):
-			self.set_current_activity(new_activity)
+		#if self.has_activity(new_activity):
+		self.set_current_activity(new_activity)
 
 		if self.current_activity != None:
 			if self.has_activity(self.current_activity):