diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/ControlStyles.xaml b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/ControlStyles.xaml
index 7ced99ea72..414f0f7a8b 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/ControlStyles.xaml
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/ControlStyles.xaml
@@ -1,11 +1,15 @@
 <ResourceDictionary xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
 	xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
 	xmlns:Controls="clr-namespace:ICSharpCode.WpfDesign.Designer.Controls"
+	xmlns:ControlConvertors="clr-namespace:ICSharpCode.WpfDesign.Designer.Controls.Converters"
 	xmlns:Converters="clr-namespace:ICSharpCode.WpfDesign.Designer.Converters">
 	<!--
 		This file contains the default styles used by the Controls in ICSharpCode.WpfDesign.Designer.Controls
 	-->
     <Converters:LevelConverter x:Key="FormatDoubleConverter" />
+	<ControlConvertors:HandleLengthWithOffset x:Key="HandleLengthWithOffset"/>
+	
+	<SolidColorBrush Color="#FF474747" x:Key="HandleBrush"/>
 	<Style TargetType="{x:Type Controls:PanelMoveAdorner}">
 		<Setter Property="Template">
 			<Setter.Value>
@@ -329,19 +333,20 @@
         <Setter Property="Template">
             <Setter.Value>
                 <ControlTemplate TargetType="{x:Type Controls:MarginHandle}">
-                    <Grid Height="8" Width="{Binding Path=HandleLength, RelativeSource={RelativeSource Mode=TemplatedParent}}" SnapsToDevicePixels="True">
+                    <Grid Height="10" Width="{Binding Path=HandleLength, Converter={x:Static ControlConvertors:HandleLengthWithOffset.Instance}, RelativeSource={RelativeSource Mode=TemplatedParent}}" SnapsToDevicePixels="True">
                         <Grid.ColumnDefinitions>
                              <ColumnDefinition Width="8" />
                              <ColumnDefinition Width="*" />
                         </Grid.ColumnDefinitions>
                         <Path Name="startArrow"
-						      	Fill="#FF333333"
+						      	Fill="{StaticResource HandleBrush}"
 					    	    Stretch="Fill"
 						        Stroke="{TemplateBinding Panel.Background}"
                               StrokeThickness="0.5"
+                              Margin="0,1,0,1"
 						      Data="M0,0 L0,1 1,0.5 z" Grid.Column="0" />
                     	  <!-- Wrap the handle-line and endArrow in this grid. It's visiblity is subjected to HandleLength  -->	
-                        <Grid Height="8" Grid.Column="1" Name="lineArrow">
+                        <Grid Height="10" Grid.Column="1" Name="lineArrow">
                             <Grid.ColumnDefinitions>
                                 <ColumnDefinition Width="*" />
                                 <ColumnDefinition MaxWidth="20" MinWidth="10" />
@@ -349,11 +354,11 @@
                                 <ColumnDefinition Width="8" />
                             </Grid.ColumnDefinitions>
                             <Path Name="line1"
-				     		  Stretch="Fill"
-						      Stroke="#FF333333"
+			     		  			 Stretch="Fill"
+						      Stroke="{StaticResource HandleBrush}"
                             StrokeThickness="1.5"
 						      Margin="0 0 0 0"
-						      Data="M0,0 L1,0" Grid.Column="0"/>
+						      Data="M0,-0.75 L1,-0.75" Grid.Column="0"/>
                             <TextBlock Grid.Column="1" 
 								Text="{Binding Path=HandleLength, Mode=OneWay, Converter={x:Static Converters:FormatDoubleConverter.Instance }, RelativeSource={RelativeSource Mode=TemplatedParent}}"
 								FontSize="9" 
@@ -367,12 +372,13 @@
                             </TextBlock>
                             <Path Name="line2"
 						      Stretch="Fill"
-						      Stroke="#FF333333"
+						      Stroke="{StaticResource HandleBrush}"
                             StrokeThickness="1.5"
 						      Margin="0 0 0 0"
-						      Data="M0,0 L1,0" Grid.Column="2"/>
+						      Data="M0,-0.75 L1,-0.75" Grid.Column="2"/>
                             <Path Name="arrow2"
-						      Fill="#FF333333"
+                                  Margin="0,1,0,1"
+						      Fill="{StaticResource HandleBrush}"
 						      Stretch="Fill"
 						      Stroke="{TemplateBinding Panel.Background}"
                               StrokeThickness="0.5"    
@@ -398,72 +404,76 @@
                       Height="7"
                       Width="7"
                       StrokeThickness="1"
-                      Stroke="#FF333333"/>                        
+                      Stroke="{StaticResource HandleBrush}"/>                        
                     </Grid>
                 </ControlTemplate>
             </Setter.Value>
         </Setter>
     </Style>
-<Style TargetType="{x:Type Controls:HeightDisplay}">
+	<Style TargetType="{x:Type Controls:HeightDisplay}">
         <Setter Property="Template">
             <Setter.Value>
                 <ControlTemplate TargetType="{x:Type Controls:HeightDisplay}">
-                    <Grid Height="8" SnapsToDevicePixels="True">
-                        <Grid.ColumnDefinitions>
-                            <ColumnDefinition Width="4" />
-                            <ColumnDefinition MaxWidth="20" MinWidth="5" />
-                            <ColumnDefinition Width="*" />
-                        </Grid.ColumnDefinitions>
-                        <Path Grid.Column="0"
-                              Stroke="Red"
-                              StrokeThickness="1"
-                              Data="M0,0 L0,1 M0,0.5 L1,0.5"
+                    <Grid Width="22" >
+                        <Grid.RowDefinitions>
+                            <RowDefinition Height="*" />
+                            <RowDefinition MaxHeight="20" MinHeight="5" />
+                            <RowDefinition Height="5" />                            
+                        </Grid.RowDefinitions>
+                        <Path SnapsToDevicePixels="True"
+                                Grid.Row="0"
+                              Stroke="#AC0000"
+                              StrokeThickness="1.0"
+                              Data="M0,0 L1,0 M0.75,0 L0.75,1"
                               Stretch="Fill" />
                         <TextBlock Text="{Binding Path=ActualHeight, Converter={x:Static Converters:FormatDoubleConverter.Instance}}"
                                    HorizontalAlignment="Center"
-                                   VerticalAlignment="Center"
+                                   Margin="8,0,0,1"
                                    Padding="1,1,1,1"
                                    FontSize="10"
-                                   Grid.Column="1"/>
-                        <Path Grid.Column="2"
-                              Stroke="Red"
-                              StrokeThickness="1"
-                              Data="M0,0.5 L3,0.5 M3,0 L3,1 "
-                              Stretch="Fill" />
-                        <Grid.LayoutTransform>
-                            <RotateTransform Angle="270"/>
-                        </Grid.LayoutTransform>
+                                   Grid.Row="1">
+                    				  <TextBlock.LayoutTransform>
+                                       <RotateTransform Angle="270" CenterX="0.5" CenterY="0.5"/>
+                                   </TextBlock.LayoutTransform></TextBlock>
+                        <Path SnapsToDevicePixels="True"
+                            Grid.Row="2"
+                              Stroke="#AC0000"
+                              StrokeThickness="1.0"
+                              Data="M0.75,0 L0.75,3 M0,3 L1,3 "
+                              Stretch="Fill" />                        
                     </Grid>
                 </ControlTemplate>
             </Setter.Value>
-        </Setter>
+		</Setter>
     </Style>
     <Style TargetType="{x:Type Controls:WidthDisplay}">
         <Setter Property="Template">
             <Setter.Value>
                 <ControlTemplate TargetType="{x:Type Controls:WidthDisplay}">
-                    <Grid Height="8" SnapsToDevicePixels="True">
+                    <Grid Height="22" SnapsToDevicePixels="True">
                         <Grid.ColumnDefinitions>
                             <ColumnDefinition Width="*" />
                             <ColumnDefinition MaxWidth="20" MinWidth="5" />
-                            <ColumnDefinition Width="4" />
+                            <ColumnDefinition Width="5" />
                         </Grid.ColumnDefinitions>
                         <Path Grid.Column="0"
-                              Stroke="Red"
+                              Stroke="#AC0000"
                               StrokeThickness="1"
-                              Data="M0,0 L0,1 M0,0.5 L1,0.5"
-                              Stretch="Fill" />
+                              Data="M0,0 L0,1 M0,0.75 L1,0.75"
+                              Stretch="Fill" 
+                              SnapsToDevicePixels="True"/>
                         <TextBlock Text="{Binding Path=ActualWidth,  Converter={x:Static Converters:FormatDoubleConverter.Instance}}"
                                    HorizontalAlignment="Center"
-                                   VerticalAlignment="Center"
+                                   Margin="0,8,0,0"
                                    Padding="1,1,1,1"
                                    FontSize="10"
                                    Grid.Column="1"/>
                         <Path Grid.Column="2"
-                              Stroke="Red"
+                              Stroke="#AC0000"
                               StrokeThickness="1"
-                              Data="M0,0.5 L3,0.5 M3,0 L3,1 "
-                              Stretch="Fill" />
+                              Data="M0,0.75 L3,0.75 M3,0 L3,1 "
+                              Stretch="Fill" 
+                              SnapsToDevicePixels="True"/>
                       </Grid>
                 </ControlTemplate>
             </Setter.Value>
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/MarginHandle.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/MarginHandle.cs
index 94e6e8659a..fc06ababf1 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/MarginHandle.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Controls/MarginHandle.cs
@@ -6,6 +6,7 @@
 // </file>
 
 using System;
+using System.Globalization;
 using System.ComponentModel;
 using System.Diagnostics;
 using System.Collections.Generic;
@@ -23,12 +24,17 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
     /// <summary>
     /// Adorner that displays the margin of a control in a Grid.
     /// </summary>
-    class MarginHandle : Control
+    public class MarginHandle : Control
     {
-       
-        static MarginHandle()
+    	/// <summary>
+    	/// Places the Handle with a certain offset so the Handle does not interfere with selection outline.
+    	/// </summary>
+    	public static double HandleLengthOffset;
+    	
+		static MarginHandle()
         {
             DefaultStyleKeyProperty.OverrideMetadata(typeof(MarginHandle), new FrameworkPropertyMetadata(typeof(MarginHandle)));
+            HandleLengthOffset=2;
         }
 
         /// <summary>
@@ -53,7 +59,11 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
 
         /// <summary> This grid contains the handle line and the endarrow.</summary>  
         Grid lineArrow;
-        MarginStub marginStub;
+        
+        /// <summary>
+        /// Gets the Stub for this handle
+        /// </summary>
+        public MarginStub Stub {get; private set;}
                 
         /// <summary>
         /// Gets/Sets the angle by which handle rotates.
@@ -104,8 +114,13 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
             Angle = (double)orientation;
             grid=(Grid)adornedControlItem.Parent.Component;
             adornedControl=(FrameworkElement)adornedControlItem.Component;
-            marginStub = new MarginStub(this);
+            Stub = new MarginStub(this);
+            ShouldBeVisible=true;
             BindAndPlaceHandle();
+            
+            adornedControlItem.PropertyChanged += OnPropertyChanged;
+            OnPropertyChanged(this.adornedControlItem, new PropertyChangedEventArgs("HorizontalAlignment"));
+            OnPropertyChanged(this.adornedControlItem, new PropertyChangedEventArgs("VerticalAlignment"));
         }
 
         /// <summary>
@@ -115,8 +130,8 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
         {
             if (!adornerPanel.Children.Contains(this))
                 adornerPanel.Children.Add(this);
-            if (!adornerPanel.Children.Contains(marginStub))
-                adornerPanel.Children.Add(marginStub);
+            if (!adornerPanel.Children.Contains(Stub))
+                adornerPanel.Children.Add(Stub);
             RelativePlacement placement=new RelativePlacement();
             Binding binding = new Binding();
             binding.Source = adornedControl;
@@ -125,18 +140,22 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
                 case HandleOrientation.Left:
                     binding.Path = new PropertyPath("Margin.Left"); 
                     placement = new RelativePlacement(HorizontalAlignment.Left, VerticalAlignment.Center);
+                    placement.XOffset=-HandleLengthOffset;
                     break;
                 case HandleOrientation.Top:
                     binding.Path = new PropertyPath("Margin.Top");
                     placement = new RelativePlacement(HorizontalAlignment.Center, VerticalAlignment.Top);
+                    placement.YOffset=-HandleLengthOffset;
                     break;
                 case HandleOrientation.Right:
                     binding.Path = new PropertyPath("Margin.Right");
                     placement = new RelativePlacement(HorizontalAlignment.Right, VerticalAlignment.Center);
+                    placement.XOffset=HandleLengthOffset;
                     break;
                 case HandleOrientation.Bottom:
                     binding.Path = new PropertyPath("Margin.Bottom");
                     placement = new RelativePlacement(HorizontalAlignment.Center, VerticalAlignment.Bottom);
+                    placement.YOffset=HandleLengthOffset;
                     break;
             }
 
@@ -144,7 +163,7 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
             SetBinding(HandleLengthProperty, binding);
 
             AdornerPanel.SetPlacement(this, placement);
-            AdornerPanel.SetPlacement(marginStub, placement);
+            AdornerPanel.SetPlacement(Stub, placement);
            
             DecideVisiblity(this.HandleLength);
         }
@@ -155,20 +174,53 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
         /// <param name="handleLength"></param>
         public void DecideVisiblity(double handleLength)
         {   
-        	if(!DisplayOnlyStub){
-        	 	if(ShouldBeVisible){
-            		marginStub.Visibility = handleLength == 0.0 ? Visibility.Visible : Visibility.Hidden;
-            		this.Visibility = handleLength != 0.0 ? Visibility.Visible : Visibility.Hidden;
-            		if (this.lineArrow != null){            
-                		lineArrow.Visibility = handleLength < 23 ? Visibility.Hidden : Visibility.Visible;
-            		}
-        		}
-        	}
-        	else {
-        		DisplayOnlyStub=false;
-        		DecideVisiblity(this.HandleLength);        		
-        	}        	
-        }        
+        	if (ShouldBeVisible)
+            {
+                if (!DisplayOnlyStub)
+                {
+                    this.Visibility = handleLength != 0.0 ? Visibility.Visible : Visibility.Hidden;
+                    if (this.lineArrow != null)
+                    {
+                        lineArrow.Visibility = handleLength < 23 ? Visibility.Hidden : Visibility.Visible;
+                    }
+                    Stub.Visibility = this.Visibility == Visibility.Visible ? Visibility.Hidden : Visibility.Visible;
+                }
+                else
+                {
+                    this.Visibility = Visibility.Hidden;
+                    Stub.Visibility = Visibility.Visible;
+                }
+            }
+            else {
+                this.Visibility = Visibility.Hidden;
+                Stub.Visibility = Visibility.Hidden;
+            }      	
+        }
+        
+        void OnPropertyChanged(object sender,PropertyChangedEventArgs e)
+        {
+            if(e.PropertyName=="HorizontalAlignment" && (orientation==HandleOrientation.Left || orientation==HandleOrientation.Right)) {
+                var ha = (HorizontalAlignment) adornedControlItem.Properties[FrameworkElement.HorizontalAlignmentProperty].ValueOnInstance;
+                if(ha==HorizontalAlignment.Stretch) {
+                    DisplayOnlyStub = false;
+                }else if(ha==HorizontalAlignment.Center) {
+                    DisplayOnlyStub = true;
+                } else
+                    DisplayOnlyStub = ha.ToString() != orientation.ToString();
+            }
+
+            if(e.PropertyName=="VerticalAlignment" && (orientation==HandleOrientation.Top || orientation==HandleOrientation.Bottom)) {
+                var va = (VerticalAlignment)adornedControlItem.Properties[FrameworkElement.VerticalAlignmentProperty].ValueOnInstance;
+
+                if(va==VerticalAlignment.Stretch) {
+                    DisplayOnlyStub = false;
+                } else if(va==VerticalAlignment.Center) {
+                    DisplayOnlyStub = true;
+                } else 
+                    DisplayOnlyStub = va.ToString() != orientation.ToString();
+            }
+            DecideVisiblity(this.HandleLength);
+        } 
         
         public override void OnApplyTemplate()
         {
@@ -183,7 +235,7 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
     /// <summary>
     /// Display a stub indicating that the margin is not set.
     /// </summary>
-    class MarginStub : Control
+    public class MarginStub : Control
     {
         MarginHandle marginHandle;
         static MarginStub()
@@ -230,3 +282,27 @@ namespace ICSharpCode.WpfDesign.Designer.Controls
     }
 }
 
+namespace ICSharpCode.WpfDesign.Designer.Controls.Converters
+{
+	/// <summary>
+	/// Offset the Handle Length with MarginHandle.HandleLengthOffset
+	/// </summary>
+	public class HandleLengthWithOffset : IValueConverter
+    {
+        public static HandleLengthWithOffset Instance = new HandleLengthWithOffset();
+
+        public object Convert(object value, Type targetType, object parameter, CultureInfo culture)
+        {
+            if(value is double) {
+                return Math.Max((double)value - MarginHandle.HandleLengthOffset,0);
+            }
+            return null;
+        }
+
+        public object ConvertBack(object value, Type targetType, object parameter, CultureInfo culture)
+        {
+            return null;
+        }
+    }
+}
+
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/BorderForInvisibleControl.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/BorderForInvisibleControl.cs
index 15af2c8344..aa2eedff65 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/BorderForInvisibleControl.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/BorderForInvisibleControl.cs
@@ -28,7 +28,7 @@ namespace ICSharpCode.WpfDesign.Designer.Extensions
 			var adornerPanel = new AdornerPanel();
 			var border = new Border();
 			border.BorderThickness = new Thickness(1);
-			border.BorderBrush = Brushes.DimGray;
+			border.BorderBrush = new SolidColorBrush(Color.FromRgb(0xCC, 0xCC, 0xCC));
 			border.IsHitTestVisible = false;
 			AdornerPanel.SetPlacement(border, AdornerPlacement.FillContent);
 			adornerPanel.Children.Add(border);
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/SelectedElementRectangleExtension.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/SelectedElementRectangleExtension.cs
index e16c87d1c3..e3780b4df5 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/SelectedElementRectangleExtension.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Project/Extensions/SelectedElementRectangleExtension.cs
@@ -28,7 +28,7 @@ namespace ICSharpCode.WpfDesign.Designer.Extensions
 		{
 			Rectangle selectionRect = new Rectangle();
             selectionRect.SnapsToDevicePixels = true;
-            selectionRect.Stroke = new SolidColorBrush(Color.FromRgb(51, 51, 51));
+            selectionRect.Stroke = new SolidColorBrush(Color.FromRgb(0x47, 0x47, 0x47));
             selectionRect.StrokeThickness = 1.5;
             selectionRect.IsHitTestVisible = false;
 
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/MarginHandleTests.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/MarginHandleTests.cs
new file mode 100644
index 0000000000..7bddfb5070
--- /dev/null
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/MarginHandleTests.cs
@@ -0,0 +1,103 @@
+// <file>
+//     <copyright see="prj:///doc/copyright.txt"/>
+//     <license see="prj:///doc/license.txt"/>
+//     <author name="Kumar Devvrat"/>
+//     <version>$Revision: $</version>
+// </file>
+using System;
+using System.Windows;
+using System.Windows.Controls;
+using NUnit.Framework;
+
+using ICSharpCode.WpfDesign.Adorners;
+using ICSharpCode.WpfDesign.Designer.Controls;
+
+namespace ICSharpCode.WpfDesign.Tests.Designer
+{
+	[TestFixture]
+	public class MarginHandleTests : ModelTestHelper
+	{
+		private DesignItem _button;
+
+        [TestFixtureSetUp]
+        public void Intialize()
+        {
+            _button = CreateGridContext("<Button Margin=\"21,21,21,21\" HorizontalAlignment=\"Left\" VerticalAlignment=\"Top\"/>");
+            var gridItem = _button.Parent;
+            gridItem.Properties[FrameworkElement.HeightProperty].SetValue("200");
+            gridItem.Properties[FrameworkElement.WidthProperty].SetValue("200");
+        }
+        
+        [Test]
+        public void HandleLength()
+        {
+            Intialize();
+            var handle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Left);
+            Assert.AreEqual(21, handle.HandleLength);
+            Assert.IsTrue(handle.Visibility == Visibility.Visible, "Handle is not visible");
+            Assert.IsTrue(handle.Stub.Visibility == Visibility.Hidden, "Stub is Visible");
+        }
+
+        [Test]
+        public void MoveTest()
+        {
+            Intialize();
+            var handle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Left);
+            var grid = _button.Parent.View;
+            grid.Measure(grid.DesiredSize);
+            grid.Arrange(new Rect(grid.DesiredSize));
+            grid.UpdateLayout();
+            
+            PlacementTests.Move(new Vector(20, 20), _button);
+            Assert.AreEqual(41,handle.HandleLength);
+            Assert.IsTrue(handle.Visibility == Visibility.Visible, "Handle is not visible");
+            Assert.IsTrue(handle.Stub.Visibility == Visibility.Hidden, "Stub is Visible");
+        }
+
+        [Test]
+        [TestCase(20,20)]
+        [TestCase(20,400)]
+        [TestCase(400,20)]
+        public void ResizeTest(double width,double height)
+        {
+            var handle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Left);
+            var grid = _button.Parent.View;
+            grid.Measure(grid.DesiredSize);
+            grid.Arrange(new Rect(grid.DesiredSize));
+            grid.UpdateLayout();
+
+            PlacementTests.Resize(new Rect(20, 20, width, height), _button);
+            Assert.AreEqual(20, handle.HandleLength);
+            Assert.IsTrue(handle.Visibility == Visibility.Visible, "Handle is not visible");
+            Assert.IsTrue(handle.Stub.Visibility == Visibility.Hidden, "Stub is Visible");
+        }
+
+        [Test]
+        public void ChangeHorizontalAlignment()
+        {
+            var leftHandle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Left);
+            var rightHandle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Right);
+            _button.Properties[FrameworkElement.HorizontalAlignmentProperty].SetValue(HorizontalAlignment.Right);
+
+            Assert.IsFalse(leftHandle.Visibility == Visibility.Visible, "Left Handle is visible");
+            Assert.IsFalse(leftHandle.Stub.Visibility == Visibility.Hidden, "Left Stub is not Visible");
+
+            Assert.IsTrue(rightHandle.Visibility == Visibility.Visible, "Right Handle is not visible");
+            Assert.IsTrue(rightHandle.Stub.Visibility == Visibility.Hidden, "Right Stub is Visible");            
+        }
+
+        [Test]
+        public void ChangeVerticalAlignment()
+        {
+            var topHandle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Top);
+            var bottomHandle = new MarginHandle(_button, new AdornerPanel(), HandleOrientation.Bottom);
+            _button.Properties[FrameworkElement.VerticalAlignmentProperty].SetValue(VerticalAlignment.Bottom);
+
+            Assert.IsFalse(topHandle.Visibility == Visibility.Visible, "Top Handle is visible");
+            Assert.IsFalse(topHandle.Stub.Visibility == Visibility.Hidden, "Top Stub is not Visible");
+
+            Assert.IsTrue(bottomHandle.Visibility == Visibility.Visible, "Bottom Handle is not visible");
+            Assert.IsTrue(bottomHandle.Stub.Visibility == Visibility.Hidden, "Bottom Stub is Visible");
+        }
+	}
+}
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/ModelTestHelper.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/ModelTestHelper.cs
index da5ef4f376..77977fc9a2 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/ModelTestHelper.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/ModelTestHelper.cs
@@ -77,6 +77,15 @@ namespace ICSharpCode.WpfDesign.Tests.Designer
 			Assert.AreEqual(expectedXaml, actualXaml);
 		}
 		
+		protected DesignItem CreateGridContext(string xaml)
+        {
+            XamlDesignContext context = CreateContext(@"<Grid xmlns=""http://schemas.microsoft.com/winfx/2006/xaml/presentation"" xmlns:x=""http://schemas.microsoft.com/winfx/2006/xaml"" >
+            " + xaml + "</Grid>");
+            var grid = (Grid)context.RootItem.Component;
+            var gridChild = context.Services.Component.GetDesignItem(grid.Children[0]);
+            return gridChild;
+        }
+		
 		static string ItemIdentity(DesignItem item)
 		{
 			return item.ComponentType.Name + " (" + item.GetHashCode() + ")";
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/PlacementTests.cs b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/PlacementTests.cs
index 554bd02415..1d0ba37e86 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/PlacementTests.cs
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/Designer/PlacementTests.cs
@@ -17,7 +17,7 @@ namespace ICSharpCode.WpfDesign.Tests.Designer
 	[TestFixture]
 	public class PlacementTests : ModelTestHelper
 	{
-		void Move(Vector v, params DesignItem[] items)
+		internal static void Move(Vector v, params DesignItem[] items)
 		{
 			PlacementOperation operation = PlacementOperation.Start(items, PlacementType.Move);
 			foreach (PlacementInformation info in operation.PlacedItems) {
@@ -30,6 +30,16 @@ namespace ICSharpCode.WpfDesign.Tests.Designer
 			operation.Commit();
 		}
 		
+		internal static void Resize(Rect rect,params DesignItem[] items)
+        {
+            PlacementOperation operation = PlacementOperation.Start(items, PlacementType.Resize);
+            foreach(var info in operation.PlacedItems) {
+                info.Bounds = rect;
+                operation.CurrentContainerBehavior.SetPosition(info);
+            }
+            operation.Commit();
+        }
+		
 		[Test]
 		[Ignore] //Currently bounds calculated using visuals
 		public void MoveFixedWidthButton()
diff --git a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/WpfDesign.Tests.csproj b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/WpfDesign.Tests.csproj
index 85f2f72727..38152d832a 100644
--- a/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/WpfDesign.Tests.csproj
+++ b/src/AddIns/DisplayBindings/WpfDesign/WpfDesign.Designer/Tests/WpfDesign.Tests.csproj
@@ -55,6 +55,7 @@
       <Link>GlobalAssemblyInfo.cs</Link>
     </Compile>
     <Compile Include="AssemblyInfo.cs" />
+    <Compile Include="Designer\MarginHandleTests.cs" />
     <Compile Include="Designer\ModelTestHelper.cs" />
     <Compile Include="Designer\ModelTests.cs" />
     <Compile Include="Designer\PlacementTests.cs" />