diff --git a/indra/newview/llconversationview.cpp b/indra/newview/llconversationview.cpp
index 30822849915bb27aa7e195ef4df1db9ea1fbe892..81212a9141b90c5d040a7fc08df8a71043aa2eaa 100755
--- a/indra/newview/llconversationview.cpp
+++ b/indra/newview/llconversationview.cpp
@@ -432,6 +432,22 @@ void LLConversationViewParticipant::draw()
     LLView::draw();
 }
 
+// virtual
+S32 LLConversationViewParticipant::arrange(S32* width, S32* height)
+{
+    //Need to call arrange first since it computes value used in getIndentation()
+    S32 arranged = LLFolderViewItem::arrange(width, height);
+
+    //Adjusts the avatar icon based upon the indentation
+    LLRect avatarRect(getIndentation(), 
+                        mAvatarIcon->getRect().mTop,
+                        getIndentation() + mAvatarIcon->getRect().getWidth(),
+                        mAvatarIcon->getRect().mBottom);
+    mAvatarIcon->setShape(avatarRect);
+
+    return arranged;
+}
+
 void LLConversationViewParticipant::selectItem()
 {
     LLConversationItem* vmi = this->getParentFolder() ? static_cast<LLConversationItem*>(this->getParentFolder()->getViewModelItem()) : NULL;
@@ -507,7 +523,7 @@ void LLConversationViewParticipant::onMouseLeave(S32 x, S32 y, MASK mask)
 
 S32 LLConversationViewParticipant::getLabelXPos()
 {
-    return mAvatarIcon->getRect().mRight + mIconPad;
+    return getIndentation() + mAvatarIcon->getRect().getWidth() + mIconPad;
 }
 
 // static
diff --git a/indra/newview/llconversationview.h b/indra/newview/llconversationview.h
index bd95387bbe350e702a47ac91e385b58dc21ac3a1..18cb9bdb274d700a7a1abb2a9013c42e4085727a 100755
--- a/indra/newview/llconversationview.h
+++ b/indra/newview/llconversationview.h
@@ -129,6 +129,7 @@ class LLConversationViewParticipant : public LLFolderViewItem
 	void initFromParams(const Params& params);
 	BOOL postBuild();
     /*virtual*/ void draw();
+    /*virtual*/ S32 arrange(S32* width, S32* height);
 	
 	void onInfoBtnClick();
 
diff --git a/indra/newview/llimfloatercontainer.cpp b/indra/newview/llimfloatercontainer.cpp
index 01456fee3bcb2bc7d940f793eb27d50be51df659..298a6055bf91553a2d6408a9ba50a7c9cb7527cf 100644
--- a/indra/newview/llimfloatercontainer.cpp
+++ b/indra/newview/llimfloatercontainer.cpp
@@ -1289,9 +1289,6 @@ LLConversationViewParticipant* LLIMFloaterContainer::createConversationViewParti
     LLRect panel_rect = mConversationsListPanel->getRect();
 	
 	params.name = item->getDisplayName();
-	//params.icon = bridge->getIcon();
-	//params.icon_open = bridge->getOpenIcon();
-	//params.creation_date = bridge->getCreationDate();
 	params.root = mConversationsRoot;
 	params.listener = item;
 
@@ -1299,7 +1296,8 @@ LLConversationViewParticipant* LLIMFloaterContainer::createConversationViewParti
 	params.rect = LLRect (0, 24, panel_rect.getWidth(), 0);
 	params.tool_tip = params.name;
 	params.participant_id = item->getUUID();
-	
+    params.folder_indentation = 42;
+
 	return LLUICtrlFactory::create<LLConversationViewParticipant>(params);
 }
 
diff --git a/indra/newview/skins/default/xui/en/widgets/conversation_view_participant.xml b/indra/newview/skins/default/xui/en/widgets/conversation_view_participant.xml
index 0024decd4ca56e029b980ef855bbf56173bb79b7..b83d9122f72cfdfe253ec44ad7bec94d30c6b744 100755
--- a/indra/newview/skins/default/xui/en/widgets/conversation_view_participant.xml
+++ b/indra/newview/skins/default/xui/en/widgets/conversation_view_participant.xml
@@ -1,7 +1,6 @@
 <?xml version="1.0" encoding="utf-8" standalone="yes" ?>
 <conversation_view_participant
   folder_arrow_image="Folder_Arrow"
-  folder_indentation="0"
   item_height="24" 
   item_top_pad="0"
   selection_image="Rounded_Square"
@@ -20,7 +19,6 @@
      height="20"
      default_icon_name="Generic_Person"
 	 layout="topleft"
-     left="50"
 	 top="2"
      width="20" />
 <info_button