Added update of child markup extensions when markup extension chain is updated.

src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/ModelTests.cs

@@ -627,6 +627,12 @@ namespace ICSharpCode.WpfDesign.Tests.Designer
 				bindingItem.Properties["Source"].Value.Properties["ResourceKey"].SetValue("bindingSource");
 			}
 			
+			var binding = bindingItem.Component as Binding;
+			Assert.IsNotNull(binding);
+			Assert.IsNotNull(binding.Source);
+			Assert.IsNotNull(exampleClassItem.Component);
+			Assert.AreSame(exampleClassItem.Component, binding.Source);
+			
 			const string expectedXaml = "<Button>\n" +
 										"  <Button.Resources>\n" +
 										"    <t:ExampleClass x:Key=\"dummy\" />\n" +

src/AddIns/DisplayBindings/WpfDesign/WpfDesign.XamlDom/Project/XamlObject.cs

@@ -273,9 +273,22 @@ namespace ICSharpCode.WpfDesign.XamlDom
 			}
 		}
 		
+		void UpdateChildMarkupExtensions(XamlObject obj)
+		{
+			foreach (XamlObject propXamlObject in obj.Properties.Where((prop) => prop.IsSet).Select((prop) => prop.PropertyValue).OfType<XamlObject>()) {
+				UpdateChildMarkupExtensions(propXamlObject);
+			}
+
+			if (obj.IsMarkupExtension && obj.ParentProperty != null) {
+				obj.ParentProperty.UpdateValueOnInstance();
+			}
+		}
+
 		void UpdateMarkupExtensionChain()
 		{
-			var obj = this;
+			UpdateChildMarkupExtensions(this);
+
+			var obj = this.ParentObject;
 			while (obj != null && obj.IsMarkupExtension && obj.ParentProperty != null) {
 				obj.ParentProperty.UpdateValueOnInstance();
 				obj = obj.ParentObject;