diff --git a/tracks/app/controllers/todo_controller.rb b/tracks/app/controllers/todo_controller.rb
index 0a3c1f19..d1c0dcf8 100644
--- a/tracks/app/controllers/todo_controller.rb
+++ b/tracks/app/controllers/todo_controller.rb
@@ -126,7 +126,7 @@ class TodoController < ApplicationController
     @item = check_user_return_item
     @original_item_context_id = @item.context_id
     @original_item_project_id = @item.project_id
-    
+    @original_item_was_deferred = @item.deferred?
     if params['item']['project_id'].blank? && !params['project_name'].blank? && params['project_name'] != 'None'
       project = @user.projects.find_by_name(params['project_name'].strip)
       unless project
@@ -161,6 +161,7 @@ class TodoController < ApplicationController
     
     @saved = @item.update_attributes params["item"]
     @context_changed = @original_item_context_id != @item.context_id
+    @item_was_activated_from_deferred_state = @original_item_was_deferred && @item.active?
     if @context_changed then @remaining_undone_in_context = @user.contexts.find(@original_item_context_id).not_done_todos.length; end
     @project_changed = @original_item_project_id != @item.project_id
     if (@project_changed && !@original_item_project_id.nil?) then @remaining_undone_in_project = @user.projects.find(@original_item_project_id).not_done_todos.length; end
@@ -272,11 +273,12 @@ class TodoController < ApplicationController
            @down_count = Todo.count_by_sql(['SELECT COUNT(*) FROM todos, contexts WHERE todos.context_id = contexts.id and todos.user_id = ? and todos.state = ? and contexts.hide = ?', @user.id, 'active', false])
          end
          from.context do
-           @down_count = @user.contexts.find(@item.context_id).todos.count_in_state(:active)
+           @down_count = @user.contexts.find(@item.context_id).not_done_todo_count
          end
          from.project do
            unless @item.project_id == nil
-             @down_count = @user.projects.find(@item.project_id).todos.count_in_state(:active)
+             @down_count = @user.projects.find(@item.project_id).not_done_todo_count
+             @deferred_count = @user.projects.find(@item.project_id).deferred_todo_count
            end
          end
          from.deferred do
@@ -291,11 +293,11 @@ class TodoController < ApplicationController
            @completed_count = Todo.count_by_sql(['SELECT COUNT(*) FROM todos, contexts WHERE todos.context_id = contexts.id and todos.user_id = ? and todos.state = ? and contexts.hide = ?', @user.id, 'completed', false])
          end
          from.context do
-           @completed_count = @user.contexts.find(@item.context_id).todos.count_in_state(:completed)
+           @completed_count = @user.contexts.find(@item.context_id).done_todo_count
          end
          from.project do
            unless @item.project_id == nil
-             @completed_count = @user.projects.find(@item.project_id).todos.count_in_state(:completed)
+             @completed_count = @user.projects.find(@item.project_id).done_todo_count
            end
          end
       end
diff --git a/tracks/app/views/todo/toggle_check.rjs b/tracks/app/views/todo/toggle_check.rjs
index 1faff081..f02e3981 100644
--- a/tracks/app/views/todo/toggle_check.rjs
+++ b/tracks/app/views/todo/toggle_check.rjs
@@ -6,7 +6,7 @@ if @saved
       page.insert_html :top, "completed", :partial => 'todo/item', :locals => { :parent_container_type => "completed" }
       page.visual_effect :highlight, dom_id(@item, 'line'), {'startcolor' => "'#99ff99'"}
       page[empty_container_msg_div_id].show if @down_count == 0 && !empty_container_msg_div_id.nil?
-      page.show 'tickler-empty-nd' if source_view_is(:project)
+      page.show 'tickler-empty-nd' if source_view_is(:project) && @deferred_count == 0
       page.hide 'empty-d' # If we've checked something as done, completed items can't be empty
     end
     if @remaining_undone_in_context == 0 && source_view_is(:todo)
diff --git a/tracks/app/views/todo/update.rjs b/tracks/app/views/todo/update.rjs
index 5ed32330..e906550c 100644
--- a/tracks/app/views/todo/update.rjs
+++ b/tracks/app/views/todo/update.rjs
@@ -43,6 +43,12 @@ if @saved
       page.insert_html :bottom, "tickler", :partial => 'todo/item', :locals => { :parent_container_type => parent_container_type }
       page['tickler-empty-nd'].hide
       page.replace_html "badge_count", @remaining_undone_in_project
+    elsif @item_was_activated_from_deferred_state
+      page[@item].remove
+      page['tickler-empty-nd'].show if (@deferred_count == 0)
+      page.insert_html :bottom, "p#{@item.project_id}", :partial => 'todo/item', :locals => { :parent_container_type => parent_container_type }
+      page["p#{@item.project_id}empty-nd"].hide
+      page.replace_html "badge_count", @remaining_undone_in_project
     else
       page.replace dom_id(@item), :partial => 'todo/item', :locals => { :parent_container_type => parent_container_type }
       page.visual_effect :highlight, dom_id(@item), :duration => 3
diff --git a/tracks/lib/todo_list.rb b/tracks/lib/todo_list.rb
index e4dd6baf..5e3015c0 100644
--- a/tracks/lib/todo_list.rb
+++ b/tracks/lib/todo_list.rb
@@ -44,5 +44,9 @@ module Tracks
       self.todos.count_in_state(:completed)
     end
   
+    def deferred_todo_count
+      self.todos.count_in_state(:deferred)
+    end
+  
   end
 end
diff --git a/tracks/test/fixtures/todos.yml b/tracks/test/fixtures/todos.yml
index fa45c6da..cff6ed0b 100644
--- a/tracks/test/fixtures/todos.yml
+++ b/tracks/test/fixtures/todos.yml
@@ -186,3 +186,17 @@ end
   due: ~
   completed_at: ~
   user_id: 1
+  
+15:
+  id: 15
+  context_id: 6
+  project_id: 1
+  description: Select Delorean model
+  notes: ~
+  state: deferred
+  created_at: <%= today %>
+  due: ~
+  completed_at: ~
+  show_from: <%= next_week %>
+  user_id: 1
+
diff --git a/tracks/test/functional/project_controller_test.rb b/tracks/test/functional/project_controller_test.rb
index 2b95e178..e98ac5a0 100644
--- a/tracks/test/functional/project_controller_test.rb
+++ b/tracks/test/functional/project_controller_test.rb
@@ -22,14 +22,14 @@ class ProjectControllerTest < TodoContainerControllerTestBase
     p = projects(:timemachine)
     get :show, :url_friendly_name => p.url_friendly_name
     assert_not_nil assigns['deferred']
-    assert_equal 0, assigns['deferred'].size
+    assert_equal 1, assigns['deferred'].size
 
     t = p.not_done_todos[0]
     t.show_from = 1.days.from_now.to_date
     t.save!
     
     get :show, :url_friendly_name => p.url_friendly_name
-    assert_equal 1, assigns['deferred'].size
+    assert_equal 2, assigns['deferred'].size
   end
 
   def test_create_project_via_ajax_increments_number_of_projects
diff --git a/tracks/test/functional/todo_controller_test.rb b/tracks/test/functional/todo_controller_test.rb
index f28a6668..55e9c7fb 100644
--- a/tracks/test/functional/todo_controller_test.rb
+++ b/tracks/test/functional/todo_controller_test.rb
@@ -49,6 +49,14 @@ class TodoControllerTest < Test::Unit::TestCase
     assert_equal 1, assigns['context_not_done_counts'][contexts(:lab).id]
   end
   
+  def test_deferred_count_for_project_source_view
+    @request.session['user_id'] = users(:admin_user).id
+    xhr :post, :toggle_check, :id => 5, :_source_view => 'project' 
+    assert_equal 1, assigns['deferred_count']
+    xhr :post, :toggle_check, :id => 15, :_source_view => 'project' 
+    assert_equal 0, assigns['deferred_count']
+  end
+  
   def test_destroy_item
     @request.session['user_id'] = users(:admin_user).id
     xhr :post, :destroy, :id => 1, :_source_view => 'todo'
diff --git a/tracks/test/selenium/mark_todo_complete_1.rsel b/tracks/test/selenium/home/mark_todo_complete_1.rsel
similarity index 68%
rename from tracks/test/selenium/mark_todo_complete_1.rsel
rename to tracks/test/selenium/home/mark_todo_complete_1.rsel
index 052e2c43..ad3d1616 100644
--- a/tracks/test/selenium/mark_todo_complete_1.rsel
+++ b/tracks/test/selenium/home/mark_todo_complete_1.rsel
@@ -1,4 +1,4 @@
 setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
 click "xpath=//div[@id='c1'] //div[@id='todo_9'] //input[@class='item-checkbox']"
 wait_for_element_present "xpath=//div[@id='completed'] //div[@id='todo_9']"
diff --git a/tracks/test/selenium/mark_todo_complete_2.rsel b/tracks/test/selenium/home/mark_todo_complete_2.rsel
similarity index 70%
rename from tracks/test/selenium/mark_todo_complete_2.rsel
rename to tracks/test/selenium/home/mark_todo_complete_2.rsel
index 2388009d..1d5af6f4 100644
--- a/tracks/test/selenium/mark_todo_complete_2.rsel
+++ b/tracks/test/selenium/home/mark_todo_complete_2.rsel
@@ -1,5 +1,5 @@
 setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
 click "xpath=//div[@id='c5'] //div[@id='todo_5'] //input[@class='item-checkbox']"
 wait_for_element_present "xpath=//div[@id='completed'] //div[@id='todo_5']"
 wait_for_not_visible 'c5'
diff --git a/tracks/test/selenium/mark_todo_incomplete.rsel b/tracks/test/selenium/home/mark_todo_incomplete.rsel
similarity index 71%
rename from tracks/test/selenium/mark_todo_incomplete.rsel
rename to tracks/test/selenium/home/mark_todo_incomplete.rsel
index 2b76901d..64db1846 100644
--- a/tracks/test/selenium/mark_todo_incomplete.rsel
+++ b/tracks/test/selenium/home/mark_todo_incomplete.rsel
@@ -1,5 +1,5 @@
 setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
 click "xpath=//div[@id='completed'] //div[@id='todo_3'] //input[@class='item-checkbox']"
 wait_for_element_present "xpath=//div[@id='c4'] //div[@id='todo_3']"
 assert_not_visible "c4empty-nd"
diff --git a/tracks/test/selenium/_login.rsel b/tracks/test/selenium/login/_login.rsel
similarity index 100%
rename from tracks/test/selenium/_login.rsel
rename to tracks/test/selenium/login/_login.rsel
diff --git a/tracks/test/selenium/login_failure.rsel b/tracks/test/selenium/login/login_failure.rsel
similarity index 100%
rename from tracks/test/selenium/login_failure.rsel
rename to tracks/test/selenium/login/login_failure.rsel
diff --git a/tracks/test/selenium/login_success.rsel b/tracks/test/selenium/login/login_success.rsel
similarity index 100%
rename from tracks/test/selenium/login_success.rsel
rename to tracks/test/selenium/login/login_success.rsel
diff --git a/tracks/test/selenium/mark_last_deferred_todo_complete_on_project_page.rsel b/tracks/test/selenium/mark_last_deferred_todo_complete_on_project_page.rsel
deleted file mode 100644
index 4b836a1e..00000000
--- a/tracks/test/selenium/mark_last_deferred_todo_complete_on_project_page.rsel
+++ /dev/null
@@ -1,10 +0,0 @@
-setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
-open "/project/Build_a_working_time_machine"
-type "todo_description", "choose era"
-type "todo_show_from", "1/1/2030"
-click "//input[@value='Add item']"
-wait_for_element_present "xpath=//div[@id='tickler'] //div[@class='item-container']"
-open "/project/Build_a_working_time_machine"
-click "xpath=//div[@id='tickler'] //input[@class='item-checkbox']"
-wait_for_visible "tickler-empty-nd"
diff --git a/tracks/test/selenium/create_deferred_todo_on_project_page.rsel b/tracks/test/selenium/project_detail/_add_deferred_todo.rsel
similarity index 50%
rename from tracks/test/selenium/create_deferred_todo_on_project_page.rsel
rename to tracks/test/selenium/project_detail/_add_deferred_todo.rsel
index 527b43cf..0dd17775 100644
--- a/tracks/test/selenium/create_deferred_todo_on_project_page.rsel
+++ b/tracks/test/selenium/project_detail/_add_deferred_todo.rsel
@@ -1,8 +1,4 @@
-setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
-open "/project/Build_a_working_time_machine"
-type "todo_description", "choose era"
-type "todo_show_from", "1/1/2030"
-click "//input[@value='Add item']"
-wait_for_element_present "xpath=//div[@id='tickler'] //div[@class='item-container']"
-assert_not_visible "tickler-empty-nd"
\ No newline at end of file
+type "todo_description", "choose era"
+type "todo_show_from", "1/1/2030"
+click "//input[@value='Add item']"
+wait_for_element_present "xpath=//div[@id='tickler'] //div[@class='item-container']"
diff --git a/tracks/test/selenium/project_detail/activate_deferred_todo.rsel b/tracks/test/selenium/project_detail/activate_deferred_todo.rsel
new file mode 100644
index 00000000..59a8bea0
--- /dev/null
+++ b/tracks/test/selenium/project_detail/activate_deferred_todo.rsel
@@ -0,0 +1,11 @@
+setup :fixtures => :all
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
+open "/project/Build_a_working_time_machine"
+include_partial 'project_detail/add_deferred_todo'
+open "/project/Build_a_working_time_machine"
+click "edit_icon_todo_15"
+wait_for_element_present "show_from_todo_15"
+type "show_from_todo_15", ""
+click "//input[@value='Update']"
+wait_for_element_present "xpath=//div[@id='p1'] //div[@id='todo_15']"
+assert_not_visible "tickler-empty-nd"
diff --git a/tracks/test/selenium/project_detail/activate_last_deferred_todo.rsel b/tracks/test/selenium/project_detail/activate_last_deferred_todo.rsel
new file mode 100644
index 00000000..13a08d02
--- /dev/null
+++ b/tracks/test/selenium/project_detail/activate_last_deferred_todo.rsel
@@ -0,0 +1,10 @@
+setup :fixtures => :all
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
+open "/project/Build_a_working_time_machine"
+open "/project/Build_a_working_time_machine"
+click "edit_icon_todo_15"
+wait_for_element_present "show_from_todo_15"
+type "show_from_todo_15", ""
+click "//input[@value='Update']"
+wait_for_element_present "xpath=//div[@id='p1'] //div[@id='todo_15']"
+wait_for_visible "tickler-empty-nd"
diff --git a/tracks/test/selenium/project_detail/create_deferred_todo_on_project_page.rsel b/tracks/test/selenium/project_detail/create_deferred_todo_on_project_page.rsel
new file mode 100644
index 00000000..602c9f3b
--- /dev/null
+++ b/tracks/test/selenium/project_detail/create_deferred_todo_on_project_page.rsel
@@ -0,0 +1,5 @@
+setup :fixtures => :all
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
+open "/project/Build_a_working_time_machine"
+include_partial 'project_detail/add_deferred_todo'
+assert_not_visible "tickler-empty-nd"
\ No newline at end of file
diff --git a/tracks/test/selenium/defer_todo_on_project_page.rsel b/tracks/test/selenium/project_detail/defer_todo_on_project_page.rsel
similarity index 78%
rename from tracks/test/selenium/defer_todo_on_project_page.rsel
rename to tracks/test/selenium/project_detail/defer_todo_on_project_page.rsel
index 040a63ac..1e90cf55 100644
--- a/tracks/test/selenium/defer_todo_on_project_page.rsel
+++ b/tracks/test/selenium/project_detail/defer_todo_on_project_page.rsel
@@ -1,5 +1,5 @@
 setup :fixtures => :all
-include_partial 'login', :username => 'admin', :password => 'abracadabra'
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
 open "/project/Build_a_working_time_machine"
 click "edit_icon_todo_5"
 wait_for_element_present "show_from_todo_5"
diff --git a/tracks/test/selenium/project_detail/mark_deferred_todo_complete.rsel b/tracks/test/selenium/project_detail/mark_deferred_todo_complete.rsel
new file mode 100644
index 00000000..278526bb
--- /dev/null
+++ b/tracks/test/selenium/project_detail/mark_deferred_todo_complete.rsel
@@ -0,0 +1,7 @@
+setup :fixtures => :all
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
+open "/project/Build_a_working_time_machine"
+include_partial 'project_detail/add_deferred_todo'
+click "xpath=//div[@id='tickler'] //div[@id='todo_15'] //input[@class='item-checkbox']"
+wait_for_element_present "xpath=//div[@id='completed'] //div[@id='todo_15']"
+assert_not_visible "tickler-empty-nd"
\ No newline at end of file
diff --git a/tracks/test/selenium/project_detail/mark_last_deferred_todo_complete_on_project_page.rsel b/tracks/test/selenium/project_detail/mark_last_deferred_todo_complete_on_project_page.rsel
new file mode 100644
index 00000000..a072f32c
--- /dev/null
+++ b/tracks/test/selenium/project_detail/mark_last_deferred_todo_complete_on_project_page.rsel
@@ -0,0 +1,5 @@
+setup :fixtures => :all
+include_partial 'login/login', :username => 'admin', :password => 'abracadabra'
+open "/project/Build_a_working_time_machine"
+click "xpath=//div[@id='tickler'] //div[@id='todo_15'] //input[@class='item-checkbox']"
+wait_for_visible "tickler-empty-nd"
diff --git a/tracks/test/unit/project_test.rb b/tracks/test/unit/project_test.rb
index 4a9dc77c..7ebac68f 100644
--- a/tracks/test/unit/project_test.rb
+++ b/tracks/test/unit/project_test.rb
@@ -75,12 +75,12 @@ class ProjectTest < Test::Unit::TestCase
   end
   
   def test_delete_project_deletes_todos_within_it
-    assert_equal 2, @timemachine.todos.count
-    timemachine_todo_1_id = @timemachine.todos[0].id
-    timemachine_todo_2_id = @timemachine.todos[1].id
+    assert_equal 3, @timemachine.todos.count
+    timemachine_todo_ids = @timemachine.todos.map{ |t| t.id }
     @timemachine.destroy
-    assert !Todo.exists?(timemachine_todo_1_id)
-    assert !Todo.exists?(timemachine_todo_2_id)
+    timemachine_todo_ids.each do |t_id|
+      assert !Todo.exists?(t_id)      
+    end
   end
   
   def test_not_done_todos
@@ -100,11 +100,11 @@ class ProjectTest < Test::Unit::TestCase
   end
   
   def test_deferred_todos
-    assert_equal 0, @timemachine.deferred_todos.size
+    assert_equal 1, @timemachine.deferred_todos.size
     t = @timemachine.not_done_todos[0]
     t.show_from = 1.days.from_now.to_date
     t.save!
-    assert_equal 1, Project.find(@timemachine.id).deferred_todos.size
+    assert_equal 2, Project.find(@timemachine.id).deferred_todos.size
   end
   
   def test_url_friendly_name_for_name_with_spaces