diff --git a/app/controllers/todos_controller.rb b/app/controllers/todos_controller.rb
index 01b17f02..6494137c 100644
--- a/app/controllers/todos_controller.rb
+++ b/app/controllers/todos_controller.rb
@@ -83,6 +83,8 @@ class TodosController < ApplicationController
         @todo.context_id = context.id
       end
 
+      @todo.starred= params[:new_todo_starred].include? "true"
+
       @todo.add_predecessor_list(predecessor_list)
 
       # Fix for #977 because AASM overrides @state on creation
diff --git a/app/helpers/todos_helper.rb b/app/helpers/todos_helper.rb
index 8688b924..98947bfe 100644
--- a/app/helpers/todos_helper.rb
+++ b/app/helpers/todos_helper.rb
@@ -427,8 +427,7 @@ module TodosHelper
   private
   
   def image_tag_for_star(todo)
-    class_str = todo.starred? ? "starred_todo" : "unstarred_todo"
-    image_tag("blank.png", :title =>t('todos.star_action'), :class => class_str, :id => "star_img_"+todo.id.to_s)
+    image_tag("blank.png", :title =>t('todos.star_action'), :class => "todo_star"+(todo.starred? ? " starred":""), :id => "star_img_"+todo.id.to_s)
   end
   
 end
diff --git a/app/models/todo.rb b/app/models/todo.rb
index 382d8588..4904b791 100644
--- a/app/models/todo.rb
+++ b/app/models/todo.rb
@@ -248,14 +248,16 @@ class Todo < ActiveRecord::Base
   end
   
   def toggle_star!
-    if starred?
-      _remove_tags STARRED_TAG_NAME
-      tags.reload
-    else
+    starred=!starred?
+  end
+
+  def starred=(starred)
+    if starred
       _add_tags(STARRED_TAG_NAME)
-      tags.reload
-    end 
-    starred?  
+    else
+      _remove_tags STARRED_TAG_NAME
+    end
+    starred
   end
 
   def from_recurring_todo?
diff --git a/app/views/todos/_new_todo_form.rhtml b/app/views/todos/_new_todo_form.rhtml
index eedca1d8..16beb13a 100644
--- a/app/views/todos/_new_todo_form.rhtml
+++ b/app/views/todos/_new_todo_form.rhtml
@@ -4,10 +4,12 @@
   <% form_for(todo, :html=> { :id=>'todo-form-new-action', :name=>'todo', :class => 'inline-form new_todo_form' }) do |t|%>
     <input id="default_project_name_id" name="default_project_name" type="hidden" value="<%= h(@initial_project_name)-%>" />
     <input id="default_context_name_id" name="default_context_name" type="hidden" value="<%= h(@initial_context_name)-%>" />
+    <input type="hidden" id="new_todo_starred" name="new_todo_starred" value="false" />
 
     <div id="error_status"><%= error_messages_for("item", :object_name => 'action') %></div>
 
-    <label for="todo_description"><%= Todo.human_attribute_name('description') %></label>
+    <label for="todo_description" style="float:left"><%= Todo.human_attribute_name('description') %></label>
+    <a href="#" id="new_todo_starred_link" class="undecorated_link" ><%= image_tag("blank.png", :title =>t('todos.star_action'), :class => "todo_star", :style=> "float: right")%></a>
     <%= t.text_field("description", "size" => 30, "tabindex" => next_tab_index, "maxlength" => 100, "autocomplete" => "off", :autofocus => 1) %>
 
     <label for="todo_notes"><%= Todo.human_attribute_name('notes') %></label>
@@ -57,4 +59,4 @@
     </div>
 
   <% end # form_for -%>
-</div>
\ No newline at end of file
+</div>
diff --git a/app/views/todos/create.js.erb b/app/views/todos/create.js.erb
index 17373b4f..c7e77133 100644
--- a/app/views/todos/create.js.erb
+++ b/app/views/todos/create.js.erb
@@ -22,6 +22,8 @@ function clear_form() {
   TracksForm.set_project_name('<%=escape_javascript @initial_project_name%>');
   TracksForm.set_tag_list('<%=escape_javascript @default_tags%>');
   $('#todo-form-new-action input:text:first').focus();
+  $('#new_todo_starred_link .todo_star').removeClass('starred');
+  $('#new_todo_starred').val('false');
 }
 
 function insert_new_context_with_new_todo() {
@@ -64,4 +66,4 @@ function html_for_new_context() {
 
 function html_for_new_todo() {
   return "<%= @saved ? escape_javascript(render(:partial => @todo, :locals => { :parent_container_type => parent_container_type, :source_view => @source_view })) : "" %>";
-}
\ No newline at end of file
+}
diff --git a/app/views/todos/toggle_star.js.erb b/app/views/todos/toggle_star.js.erb
index 9ec02520..eaf4a2af 100644
--- a/app/views/todos/toggle_star.js.erb
+++ b/app/views/todos/toggle_star.js.erb
@@ -1,5 +1,5 @@
 <%- if @saved -%>
-  $('div#line_todo_<%= @todo.id %> a.star_item img').toggleClass('starred_todo').toggleClass('unstarred_todo');
+  $('div#line_todo_<%= @todo.id %> a.star_item img').toggleClass('starred');
 <%- else -%>
   TracksPages.page_notify('error', '<%= t('todos.error_starring', :description => @todo.description) %>', 8);
 <%- end -%>
diff --git a/public/javascripts/application.js b/public/javascripts/application.js
index 45c13712..48b0076a 100644
--- a/public/javascripts/application.js
+++ b/public/javascripts/application.js
@@ -74,6 +74,10 @@ var TracksForm = {
             $(this).prev().val('');
         });
 
+        $("#new_todo_starred_link").click(function() {
+          $("#new_todo_starred").val($(this).children(".todo_star").toggleClass("starred").hasClass("starred"));
+        });
+
         /* submit todo form after entering new todo */
         $("button#todo_new_action_submit").live('click', function (ev) {
             if ($('input#predecessor_input').val() != "") 
diff --git a/public/stylesheets/standard.css b/public/stylesheets/standard.css
index c029ed91..25eaafe0 100644
--- a/public/stylesheets/standard.css
+++ b/public/stylesheets/standard.css
@@ -79,10 +79,11 @@ a:hover img.edit_item {background-image: url(../images/edit_on.png); background-
 img.delete_item {background-image: url(../images/delete_off.png); background-repeat: no-repeat; border: none;}
 a:hover img.delete_item {background-image: url(../images/delete_on.png);background-color: transparent;background-repeat: no-repeat; border: none;}
 
-img.starred_todo {background-image: url(../images/staricons.png); background-repeat: no-repeat; border:none; background-position: 0px 0px;}
-a:hover img.starred_todo {background-image: url(../images/staricons.png); background-repeat: no-repeat; border:none; background-position: -16px 0px;}
-img.unstarred_todo {background-image: url(../images/staricons.png); background-repeat: no-repeat; border:none; background-position: -32px 0px;}
-a:hover img.unstarred_todo {background-image: url(../images/staricons.png); background-repeat: no-repeat; border:none; background-position: -48px 0px;}
+a.undecorated_link {background-color:transparent;color:transparent;}
+img.todo_star {background-image: url(../images/staricons.png); background-repeat: no-repeat; border:none; background-position: -32px 0px;}
+img.todo_star.starred{ background-position: 0px 0px; }
+a:hover img.todo_star { background-position: -48px 0px;}
+a:hover img.todo_star.starred { background-position: -16px 0px; }
 
 a.to_top {background: transparent url(../images/top_off.png) no-repeat;}
 a.to_top:hover {background: transparent url(../images/top_on.png) no-repeat;}