diff --git a/shell/view/frame/Frame.py b/shell/view/frame/Frame.py
index bdac9fa2..de3091b9 100644
--- a/shell/view/frame/Frame.py
+++ b/shell/view/frame/Frame.py
@@ -25,7 +25,6 @@ from view.frame.FriendsBox import FriendsBox
 from view.frame.PanelWindow import PanelWindow
 from view.frame.notificationtray import NotificationTray
 from sugar.graphics.timeline import Timeline
-from sugar.graphics.menushell import MenuShell
 from sugar.graphics.grid import Grid
 
 class EventFrame(gobject.GObject):
@@ -133,6 +132,7 @@ class Frame:
 
 	def __init__(self, shell):
 		self._windows = []
+		self._active_menus = 0
 		self._shell = shell
 		self._mode = Frame.INACTIVE
 
@@ -149,17 +149,14 @@ class Frame:
 
 		grid = Grid()
 
-		self._menu_shell = MenuShell()
-		self._menu_shell.connect('activated', self._menu_shell_activated_cb)
-		self._menu_shell.connect('deactivated', self._menu_shell_deactivated_cb)
+		# Top panel
+		[menu_shell, root] = self._create_panel(grid, 0, 0, 16, 1)
 
-		top_panel = self._create_panel(grid, 0, 0, 16, 1)
-
-		box = ZoomBox(self._shell, self._menu_shell)
+		box = ZoomBox(self._shell, menu_shell)
 
 		[x, y] = grid.point(1, 0)
-		top_panel.append(box, hippo.PACK_FIXED)
-		top_panel.move(box, x, y)
+		root.append(box, hippo.PACK_FIXED)
+		root.move(box, x, y)
 
 		tray = NotificationTray()
 		tray_box = hippo.CanvasBox(box_width=grid.dimension(1),
@@ -171,23 +168,26 @@ class Frame:
 		tray_box.append(tray_widget, gtk.EXPAND)
 
 		[x, y] = grid.point(14, 0)
-		top_panel.append(tray_box, hippo.PACK_FIXED)
-		top_panel.move(tray_box, x, y)
+		root.append(tray_box, hippo.PACK_FIXED)
+		root.move(tray_box, x, y)
 
-		bottom_panel = self._create_panel(grid, 0, 11, 16, 1)
+		# Bottom panel
+		[menu_shell, root] = self._create_panel(grid, 0, 11, 16, 1)
 
 		box = ActivitiesBox(self._shell)
-		bottom_panel.append(box, hippo.PACK_FIXED)
+		root.append(box, hippo.PACK_FIXED)
 
 		[x, y] = grid.point(1, 0)
-		bottom_panel.move(box, x, y)
+		root.move(box, x, y)
 
-		right_panel = self._create_panel(grid, 15, 1, 1, 10)
+		# Right panel
+		[menu_shell, root] = self._create_panel(grid, 15, 1, 1, 10)
 
-		box = FriendsBox(self._shell, self._menu_shell)
-		right_panel.append(box)
+		box = FriendsBox(self._shell, menu_shell)
+		root.append(box)
 
-		left_panel = self._create_panel(grid, 0, 1, 1, 10)
+		# Left panel
+		self._create_panel(grid, 0, 1, 1, 10)
 
 	def _create_panel(self, grid, x, y, width, height):
 		panel = PanelWindow()
@@ -195,6 +195,10 @@ class Frame:
 		panel.connect('enter-notify-event', self._enter_notify_cb)
 		panel.connect('leave-notify-event', self._leave_notify_cb)
 
+		menu_shell = panel.get_menu_shell()
+		menu_shell.connect('activated', self._menu_shell_activated_cb)
+		menu_shell.connect('deactivated', self._menu_shell_deactivated_cb)
+
 		[x, y, width, height] = grid.rectangle(x, y, width, height)
 
 		panel.move(x, y)
@@ -202,12 +206,14 @@ class Frame:
 
 		self._windows.append(panel)
 
-		return panel.get_root()
+		return [panel.get_menu_shell(), panel.get_root()]
 
 	def _menu_shell_activated_cb(self, menu_shell):
+		self._active_menus += 1
 		self._timeline.goto('slide_in', True)
 
 	def _menu_shell_deactivated_cb(self, menu_shell):
+		self._active_menus -= 1
 		if self._mode != Frame.STICKY:
 			self._timeline.play('before_slide_out', 'slide_out')
 
@@ -219,9 +225,9 @@ class Frame:
 		if event.state == gtk.gdk.BUTTON1_MASK:
 			return
 
-		if not self._menu_shell.is_active() and \
-			   self._mode == Frame.HIDE_ON_LEAVE or \
-			   self._mode == Frame.AUTOMATIC:
+		if self._active_menus == 0 and \
+		   (self._mode == Frame.HIDE_ON_LEAVE or \
+		    self._mode == Frame.AUTOMATIC):
 			self._timeline.play('before_slide_out', 'slide_out')
 
 	def _enter_edge_cb(self, event_frame):
diff --git a/shell/view/frame/FriendsBox.py b/shell/view/frame/FriendsBox.py
index 345a8040..92e66b6d 100644
--- a/shell/view/frame/FriendsBox.py
+++ b/shell/view/frame/FriendsBox.py
@@ -22,7 +22,6 @@ from sugar.graphics import style
 from sugar.presence import PresenceService
 from view.BuddyIcon import BuddyIcon
 from model.BuddyModel import BuddyModel
-from view.frame.MenuStrategy import MenuStrategy
 
 class FriendsBox(hippo.CanvasBox):
 	def __init__(self, shell, menu_shell):
@@ -44,7 +43,6 @@ class FriendsBox(hippo.CanvasBox):
 		model = BuddyModel(buddy=buddy)
 		icon = BuddyIcon(self._shell, self._menu_shell, model)
 		style.apply_stylesheet(icon, 'frame.BuddyIcon')
-		icon.set_menu_strategy(MenuStrategy())
 		self.append(icon)
 
 		self._buddies[buddy.get_name()] = icon
diff --git a/shell/view/frame/Makefile.am b/shell/view/frame/Makefile.am
index d31773a6..09573aa9 100644
--- a/shell/view/frame/Makefile.am
+++ b/shell/view/frame/Makefile.am
@@ -6,5 +6,4 @@ sugar_PYTHON =				\
 	PanelWindow.py			\
 	Frame.py			\
 	ZoomBox.py			\
-	MenuStrategy.py			\
 	notificationtray.py
diff --git a/shell/view/frame/MenuStrategy.py b/shell/view/frame/MenuStrategy.py
deleted file mode 100644
index 00dcdaa5..00000000
--- a/shell/view/frame/MenuStrategy.py
+++ /dev/null
@@ -1,55 +0,0 @@
-# Copyright (C) 2006, Red Hat, Inc.
-#
-# This program is free software; you can redistribute it and/or modify
-# it under the terms of the GNU General Public License as published by
-# the Free Software Foundation; either version 2 of the License, or
-# (at your option) any later version.
-#
-# This program is distributed in the hope that it will be useful,
-# but WITHOUT ANY WARRANTY; without even the implied warranty of
-# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-# GNU General Public License for more details.
-#
-# You should have received a copy of the GNU General Public License
-# along with this program; if not, write to the Free Software
-# Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA  02110-1301  USA
-
-import hippo
-
-from sugar.graphics.grid import Grid
-
-class MenuStrategy:
-	def _get_canvas(self, item):
-		canvas = item
-		while (not isinstance(canvas, hippo.Canvas)):
-			canvas = canvas.get_context()
-		return canvas
-
-	def _get_item_origin(self, canvas, item):
-		[x, y] = item.get_context().translate_to_widget(item)
-
-		[origin_x, origin_y] = canvas.window.get_origin()
-		x += origin_x
-		y += origin_y
-
-		return [x, y]
-
-	def get_menu_position(self, menu, item):
-		canvas = self._get_canvas(item)
-
-		[x, y] = self._get_item_origin(canvas, item)
-		[width, height] = item.get_allocation()
-
-		[canvas_x, canvas_y] = canvas.window.get_origin()
-		canvas_rect = canvas.get_allocation()
-		[menu_w, menu_h] = menu.size_request()
-
-		menu_x = x
-		menu_y = y + height
-
-		if (menu_x + menu_w > canvas_x) and \
-		   (menu_y < canvas_y + canvas_rect.height):
-			menu_x = x - menu_w
-			menu_y = y
-
-		return [menu_x, menu_y]
diff --git a/shell/view/frame/PanelWindow.py b/shell/view/frame/PanelWindow.py
index fee538c8..14e72b19 100644
--- a/shell/view/frame/PanelWindow.py
+++ b/shell/view/frame/PanelWindow.py
@@ -17,6 +17,8 @@
 import gtk
 import hippo
 
+from sugar.graphics.menushell import MenuShell
+
 class PanelWindow(gtk.Window):
 	def __init__(self):
 		gtk.Window.__init__(self)
@@ -32,6 +34,11 @@ class PanelWindow(gtk.Window):
 		self.add(canvas)
 		canvas.show()
 
+		self._menu_shell = MenuShell(canvas)
+
+	def get_menu_shell(self):
+		return self._menu_shell
+
 	def get_root(self):
 		return self._bg
 
diff --git a/shell/view/frame/ZoomBox.py b/shell/view/frame/ZoomBox.py
index 63922351..3c21f20d 100644
--- a/shell/view/frame/ZoomBox.py
+++ b/shell/view/frame/ZoomBox.py
@@ -20,7 +20,6 @@ from sugar.graphics.canvasicon import CanvasIcon
 from sugar.graphics.menuicon import MenuIcon
 from sugar.graphics.menu import Menu
 from sugar.graphics import style
-from view.frame.MenuStrategy import MenuStrategy
 import sugar
 
 class ActivityMenu(Menu):
@@ -47,8 +46,6 @@ class ActivityIcon(MenuIcon):
 		MenuIcon.__init__(self, menu_shell, icon_name=icon_name,
 						  color=icon_color)
 
-		self.set_menu_strategy(MenuStrategy())
-
 	def create_menu(self):
 		menu = ActivityMenu(self._activity_host)
 		menu.connect('action', self._action_cb)
diff --git a/shell/view/home/HomeWindow.py b/shell/view/home/HomeWindow.py
index 2e9be82d..e07c7d0d 100644
--- a/shell/view/home/HomeWindow.py
+++ b/shell/view/home/HomeWindow.py
@@ -19,10 +19,10 @@ import hippo
 import cairo
 
 from sugar.graphics.menushell import MenuShell
+import sugar
 from view.home.MeshBox import MeshBox
 from view.home.HomeBox import HomeBox
 from view.home.FriendsBox import FriendsBox
-import sugar
 
 class HomeWindow(gtk.Window):
 	def __init__(self, shell):
@@ -42,8 +42,6 @@ class HomeWindow(gtk.Window):
 		self.add(self._nb)
 		self._nb.show()
 
-		menu_shell = MenuShell()
-
 		canvas = hippo.Canvas()
 		box = HomeBox(shell)
 		canvas.set_root(box)
@@ -51,13 +49,13 @@ class HomeWindow(gtk.Window):
 		canvas.show()
 
 		canvas = hippo.Canvas()
-		box = FriendsBox(shell, menu_shell)
+		box = FriendsBox(shell, MenuShell(canvas))
 		canvas.set_root(box)
 		self._nb.append_page(canvas)
 		canvas.show()
 
 		canvas = hippo.Canvas()
-		box = MeshBox(shell, menu_shell)
+		box = MeshBox(shell, MenuShell(canvas))
 		canvas.set_root(box)
 		self._nb.append_page(canvas)
 		canvas.show()
diff --git a/sugar/graphics/menuicon.py b/sugar/graphics/menuicon.py
index 7ee6bce0..8c0041ef 100644
--- a/sugar/graphics/menuicon.py
+++ b/sugar/graphics/menuicon.py
@@ -17,14 +17,11 @@
 
 import hippo
 import gobject
+import logging
 
 from sugar.graphics.canvasicon import CanvasIcon
 from sugar.graphics.timeline import Timeline
 
-class _MenuStrategy:
-	def get_menu_position(self, menu, item):
-		return item.get_context().translate_to_widget(item)
-
 class MenuIcon(CanvasIcon):
 	def __init__(self, menu_shell, **kwargs):
 		CanvasIcon.__init__(self, **kwargs)
@@ -32,7 +29,6 @@ class MenuIcon(CanvasIcon):
 		self._menu_shell = menu_shell
 		self._menu = None
 		self._hover_menu = False
-		self._menu_strategy = _MenuStrategy()
 
 		self._timeline = Timeline(self)
 		self._timeline.add_tag('popup', 6, 6)
@@ -41,9 +37,6 @@ class MenuIcon(CanvasIcon):
 
 		self.connect('motion-notify-event', self._motion_notify_event_cb)
 
-	def set_menu_strategy(self, strategy):
-		self._menu_strategy = strategy
-
 	def do_popup(self, current, n_frames):
 		if self._menu:
 			return
@@ -55,8 +48,7 @@ class MenuIcon(CanvasIcon):
 		self._menu.connect('leave-notify-event',
 						   self._menu_leave_notify_event_cb)
 
-		strategy = self._menu_strategy
-		[x, y] = strategy.get_menu_position(self._menu, self)
+		[x, y] = self._menu_shell.get_position(self._menu, self)
 
 		self._menu.move(x, y)
 		self._menu.show()
diff --git a/sugar/graphics/menushell.py b/sugar/graphics/menushell.py
index e430e6f9..bb25f9cd 100644
--- a/sugar/graphics/menushell.py
+++ b/sugar/graphics/menushell.py
@@ -25,8 +25,10 @@ class MenuShell(gobject.GObject):
 				        gobject.TYPE_NONE, ([])),
 	}
 
-	def __init__(self):
+	def __init__(self, parent_canvas):
 		gobject.GObject.__init__(self)
+
+		self._parent_canvas = parent_canvas
 		self._menu_controller = None
 
 	def is_active(self):
@@ -41,3 +43,30 @@ class MenuShell(gobject.GObject):
 		if self._menu_controller:
 			self._menu_controller.popdown()
 		self._menu_controller = controller
+
+	def _get_item_origin(self, item):
+		[x, y] = item.get_context().translate_to_widget(item)
+
+		[origin_x, origin_y] = self._parent_canvas.window.get_origin()
+		x += origin_x
+		y += origin_y
+
+		return [x, y]
+
+	def get_position(self, menu, item):
+		[x, y] = self._get_item_origin(item)
+		[width, height] = item.get_allocation()
+
+		[canvas_x, canvas_y] = self._parent_canvas.window.get_origin()
+		canvas_rect = self._parent_canvas.get_allocation()
+		[menu_w, menu_h] = menu.size_request()
+
+		menu_x = x
+		menu_y = y + height
+
+		if (menu_x + menu_w > canvas_x) and \
+		   (menu_y < canvas_y + canvas_rect.height):
+			menu_x = x - menu_w
+			menu_y = y
+
+		return [menu_x, menu_y]