diff --git a/editor/extensions/ext-imagelib.js b/editor/extensions/ext-imagelib.js
new file mode 100644
index 00000000..074eca5f
--- /dev/null
+++ b/editor/extensions/ext-imagelib.js
@@ -0,0 +1,184 @@
+/*
+ * ext-imagelib.js
+ *
+ * Licensed under the Apache License, Version 2
+ *
+ * Copyright(c) 2010 Alexis Deveria
+ *
+ */
+
+svgEditor.addExtension("imagelib", function() {
+
+	var img_libs = [{
+			name: 'Demo library (local)',
+			url: 'extensions/imagelib/index.html',
+			description: 'Demonstration library for SVG-edit on this server'
+		}, 
+		{
+			name: 'Demo library (external)',
+			url: 'http://a.deveria.com/tests/clip-art/',
+			description: 'Demonstration library for SVG-edit on another domain'
+		},		
+	];
+
+
+	function closeBrowser() {
+		$('#imgbrowse_holder').hide();
+	}
+
+	 window.addEventListener("message", function(evt) {
+		// Receive postMessage data
+		var response = evt.data;
+		
+		if(!response) {
+			$.alert('No data was given', closeBrowser);
+			return;
+		}
+		
+		var char1 = response.charAt(0);
+		
+		switch (char1) {
+			case '<':
+				svgEditor.loadFromString(response);
+				break;
+			case 'd':
+				if(response.indexOf('data:') === 0) {
+					svgEditor.loadFromDataURI(response);
+					break;
+				}
+				// Else fall through
+			default:
+				$.alert('Unexpected data was returned', closeBrowser);
+				return;
+		}
+		
+		closeBrowser();
+		
+	}, true);
+	
+
+	function showBrowser() {
+		var browser = $('#imgbrowse');
+		if(!browser.length) {
+			$('<div id=imgbrowse_holder><div id=imgbrowse>\
+			</div></div>').insertAfter('#svg_docprops');
+			browser = $('#imgbrowse');
+
+			var all_libs = 'Select an image library';
+
+			var lib_opts = $('<ul id=imglib_opts>').appendTo(browser);
+			var frame = $('<iframe/>').prependTo(browser).hide().wrap('<div>');
+			
+			var header = $('<h1>').prependTo(browser).text(all_libs);
+			
+			var cancel = $('<input type=button value=Cancel>').appendTo(browser).click(function() {
+				$('#imgbrowse_holder').hide();
+			}).css({
+				position: 'absolute',
+				top: 5,
+				right: 5
+			});
+
+			var back = $('<input type=button value="Show libraries">').appendTo(browser).click(function() {
+				frame.hide();
+				lib_opts.show();
+				header.text(all_libs);
+			}).css({
+				position: 'absolute',
+				top: 5,
+				left: 5
+			});
+			
+			$.each(img_libs, function(i, opts) {
+				$('<li>').appendTo(lib_opts).text(opts.name).click(function() {
+					frame.attr('src', opts.url).show();
+					header.text(name);
+					lib_opts.hide();
+				}).append('<span>' + opts.description + '</span>');
+			});
+			
+		} else {
+			$('#imgbrowse_holder').show();
+		}
+	}
+	
+	return {
+		svgicons: "extensions/ext-imagelib.xml",
+		buttons: [{
+			id: "tool_imagelib",
+			type: "app_menu", // _flyout
+			position: 4,
+			title: "Image library",
+			events: {
+				"mouseup": showBrowser
+			}
+		}],
+		callback: function() {
+		
+			$('<style>').text('\
+				#imgbrowse_holder {\
+					position: absolute;\
+					top: 0;\
+					left: 0;\
+					width: 100%;\
+					height: 100%;\
+					background-color: rgba(0, 0, 0, .5);\
+					z-index: 4;\
+				}\
+				\
+				#imgbrowse {\
+					position: absolute;\
+					top: 25px;\
+					left: 25px;\
+					right: 25px;\
+					bottom: 25px;\
+					min-width: 300px;\
+					min-height: 200px;\
+					background: #B0B0B0;\
+					border: 1px outset #777;\
+				}\
+				#imgbrowse h1 {\
+					font-size: 20px;\
+					margin: .4em;\
+					text-align: center;\
+				}\
+				#imgbrowse > div,\
+				#imgbrowse > ul {\
+					position: absolute;\
+					top: 36px;\
+					left: 10px;\
+					right: 10px;\
+					bottom: 10px;\
+					border: 1px solid #666;\
+					background: white;\
+					margin: 0;\
+					padding: 0;\
+					overflow: auto;\
+				}\
+				#imgbrowse li {\
+					list-style: none;\
+					padding: .5em;\
+					background: #E8E8E8;\
+					border-bottom: 1px solid #B0B0B0;\
+					line-height: 1.2em;\
+					font-style: sans-serif;\
+					}\
+				#imgbrowse li > span {\
+					color: #666;\
+					font-size: 15px;\
+					display: block;\
+					}\
+				#imgbrowse li:hover {\
+					background: #FFC;\
+					cursor: pointer;\
+					}\
+				#imgbrowse iframe {\
+					width: 100%;\
+					height: 100%;\
+					border: 0;\
+				}\
+			').appendTo('head');
+		}
+	}
+});
+
diff --git a/editor/extensions/ext-imagelib.xml b/editor/extensions/ext-imagelib.xml
new file mode 100644
index 00000000..2834b8d6
--- /dev/null
+++ b/editor/extensions/ext-imagelib.xml
@@ -0,0 +1,10 @@
+<svg xmlns="http://www.w3.org/2000/svg">
+	<g id="tool_imagelib">
+	  <svg xmlns:xlink="http://www.w3.org/1999/xlink" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 300 300">
+		  <path fill="#c0c0c0" stroke-linejoin="round" stroke-width="14" stroke="#202020" fill-rule="nonzero" d="m70,194.72501l0,0c0,-10.30901 35.8172,-18.666 80,-18.666c44.18298,0 80,8.35699 80,18.666l0,74.66699c0,10.30899 -35.81702,18.66699 -80,18.66699c-44.1828,0 -80,-8.358 -80,-18.66699l0,-74.66699z"/>
+		  <path fill="#c0c0c0" stroke-linejoin="round" stroke-width="14" stroke="#202020" fill-rule="nonzero" d="m70,114.608l0,0c0,-10.309 35.8172,-18.6668 80,-18.6668c44.18298,0 80,8.3578 80,18.6668l0,74.66699c0,10.30901 -35.81702,18.666 -80,18.666c-44.1828,0 -80,-8.35699 -80,-18.666l0,-74.66699z"/>
+		  <path fill="#c0c0c0" stroke-linejoin="round" stroke-width="14" stroke="#202020" fill-rule="nonzero" d="m70,33.6667l0,0c0,-10.3094 35.8172,-18.6667 80,-18.6667c44.18298,0 80,8.3573 80,18.6667l0,74.6663c0,10.31 -35.81702,18.667 -80,18.667c-44.1828,0 -80,-8.357 -80,-18.667l0,-74.6663z"/>
+		  <path id="svg_1" fill="#c0c0c0" stroke-linejoin="round" stroke-width="14" stroke="#202020" fill-rule="nonzero" d="m230,32.33334c0,10.30931 -35.81726,18.66666 -80,18.66666c-44.1828,0 -80,-8.35735 -80,-18.66666"/>
+  	</svg>
+	</g>
+</svg>
\ No newline at end of file
diff --git a/editor/svg-editor.js b/editor/svg-editor.js
index ef0ea2eb..e28a823a 100644
--- a/editor/svg-editor.js
+++ b/editor/svg-editor.js
@@ -45,7 +45,7 @@
 				imgPath: 'images/',
 				langPath: 'locale/',
 				extPath: 'extensions/',
-				extensions: ['ext-markers.js','ext-connector.js', 'ext-eyedropper.js', 'ext-shapes.js'],
+				extensions: ['ext-markers.js','ext-connector.js', 'ext-eyedropper.js', 'ext-shapes.js', 'ext-imagelib.js'],
 				initTool: 'select',
 				wireframe: false
 			},
@@ -909,7 +909,11 @@
 						} else {
 							fallback_obj[id] = btn.icon;
 							var svgicon = btn.svgicon?btn.svgicon:btn.id;
-							placement_obj['#' + id] = svgicon;
+							if(btn.type == 'app_menu') {
+								placement_obj['#' + id + ' > div'] = svgicon;
+							} else {
+								placement_obj['#' + id] = svgicon;
+							}
 						}
 						
 						var cls, parent;
@@ -928,9 +932,13 @@
 							if(!$(parent).length)
 								$('<div>', {id: btn.panel}).appendTo("#tools_top");
 							break;
+						case 'app_menu':
+							cls = '';
+							parent = '#main_menu ul';
+							break;
 						}
 						
-						var button = $(btn.list?'<li/>':'<div/>')
+						var button = $((btn.list || btn.type == 'app_menu')?'<li/>':'<div/>')
 							.attr("id", id)
 							.attr("title", btn.title)
 							.addClass(cls);
@@ -940,7 +948,7 @@
 							} else {
 								button.appendTo(parent);
 							}
-							
+
 							if(btn.type =='mode_flyout') {
 							// Add to flyout menu / make flyout menu
 	// 							var opts = btn.includeWith;
@@ -992,6 +1000,8 @@
 	// 								flyout_holder.append(button);
 	// 								cur_h.reverse();
 	// 							}
+							} else if(btn.type == 'app_menu') {
+								button.append('<div>').append(btn.title);
 							}
 							
 						} else if(btn.list) {
@@ -3629,46 +3639,48 @@
 // 			var lang = ('lang' in curPrefs) ? curPrefs.lang : null;
 			Editor.putLocale(null, good_langs);
 			
-			try{
-				json_encode = function(obj){
-			  //simple partial JSON encoder implementation
-			  if(window.JSON && JSON.stringify) return JSON.stringify(obj);
-			  var enc = arguments.callee; //for purposes of recursion
-			  if(typeof obj == "boolean" || typeof obj == "number"){
-				  return obj+'' //should work...
-			  }else if(typeof obj == "string"){
-				//a large portion of this is stolen from Douglas Crockford's json2.js
-				return '"'+
-					  obj.replace(
-						/[\\\"\x00-\x1f\x7f-\x9f\u00ad\u0600-\u0604\u070f\u17b4\u17b5\u200c-\u200f\u2028-\u202f\u2060-\u206f\ufeff\ufff0-\uffff]/g
-					  , function (a) {
-						return '\\u' + ('0000' + a.charCodeAt(0).toString(16)).slice(-4);
-					  })
-					  +'"'; //note that this isn't quite as purtyful as the usualness
-			  }else if(obj.length){ //simple hackish test for arrayish-ness
-				for(var i = 0; i < obj.length; i++){
-				  obj[i] = enc(obj[i]); //encode every sub-thingy on top
-				}
-				return "["+obj.join(",")+"]";
-			  }else{
-				var pairs = []; //pairs will be stored here
-				for(var k in obj){ //loop through thingys
-				  pairs.push(enc(k)+":"+enc(obj[k])); //key: value
-				}
-				return "{"+pairs.join(",")+"}" //wrap in the braces
-			  }
-			}
-			  window.addEventListener("message", function(e){
-				var cbid = parseInt(e.data.substr(0, e.data.indexOf(";")));
-				try{
-				e.source.postMessage("SVGe"+cbid+";"+json_encode(eval(e.data)), e.origin);
-			  }catch(err){
-				e.source.postMessage("SVGe"+cbid+";error:"+err.message, e.origin);
-			  }
-			}, false)
-			}catch(err){
-			  window.embed_error = err;
-			}
+			// Not sure what this was being used for...commented out until known.
+			// The "message" event listener was interfering with image lib responder
+// 			try{
+// 				json_encode = function(obj){
+// 			  //simple partial JSON encoder implementation
+// 			  if(window.JSON && JSON.stringify) return JSON.stringify(obj);
+// 			  var enc = arguments.callee; //for purposes of recursion
+// 			  if(typeof obj == "boolean" || typeof obj == "number"){
+// 				  return obj+'' //should work...
+// 			  }else if(typeof obj == "string"){
+// 				//a large portion of this is stolen from Douglas Crockford's json2.js
+// 				return '"'+
+// 					  obj.replace(
+// 						/[\\\"\x00-\x1f\x7f-\x9f\u00ad\u0600-\u0604\u070f\u17b4\u17b5\u200c-\u200f\u2028-\u202f\u2060-\u206f\ufeff\ufff0-\uffff]/g
+// 					  , function (a) {
+// 						return '\\u' + ('0000' + a.charCodeAt(0).toString(16)).slice(-4);
+// 					  })
+// 					  +'"'; //note that this isn't quite as purtyful as the usualness
+// 			  }else if(obj.length){ //simple hackish test for arrayish-ness
+// 				for(var i = 0; i < obj.length; i++){
+// 				  obj[i] = enc(obj[i]); //encode every sub-thingy on top
+// 				}
+// 				return "["+obj.join(",")+"]";
+// 			  }else{
+// 				var pairs = []; //pairs will be stored here
+// 				for(var k in obj){ //loop through thingys
+// 				  pairs.push(enc(k)+":"+enc(obj[k])); //key: value
+// 				}
+// 				return "{"+pairs.join(",")+"}" //wrap in the braces
+// 			  }
+// 			}
+// 			  window.addEventListener("message", function(e){
+// 				var cbid = parseInt(e.data.substr(0, e.data.indexOf(";")));
+// 				try{
+// 				e.source.postMessage("SVGe"+cbid+";"+json_encode(eval(e.data)), e.origin);
+// 			  }catch(err){
+// 				e.source.postMessage("SVGe"+cbid+";error:"+err.message, e.origin);
+// 			  }
+// 			}, false)
+// 			}catch(err){
+// 			  window.embed_error = err;
+// 			}
 			
 		
 		
diff --git a/editor/svgcanvas.js b/editor/svgcanvas.js
index 759d2756..7c3f3cae 100644
--- a/editor/svgcanvas.js
+++ b/editor/svgcanvas.js
@@ -394,6 +394,10 @@ var Utils = this.Utils = function() {
 		// Cross-browser compatible method of converting a string to an XML tree
 		// found this function here: http://groups.google.com/group/jquery-dev/browse_thread/thread/c6d11387c580a77f
 		"text2xml": function(sXML) {
+			if(sXML.indexOf('<svg:svg') !== -1) {
+				sXML = sXML.replace(/<(\/?)svg:/g, '<$1').replace('xmlns:svg', 'xmlns');
+			}
+		
 			var out;
 			try{
 				var dXML = ($.browser.msie)?new ActiveXObject("Microsoft.XMLDOM"):new DOMParser();