diff --git a/Programs/Simian/Extensions/ImageDelivery.cs b/Programs/Simian/Extensions/ImageDelivery.cs
index ff7d19b9..9e1b3d08 100644
--- a/Programs/Simian/Extensions/ImageDelivery.cs
+++ b/Programs/Simian/Extensions/ImageDelivery.cs
@@ -1,6 +1,5 @@
 using System;
 using System.Collections.Generic;
-using System.Drawing;
 using System.Threading;
 using ExtensionLoader;
 using OpenMetaverse;
@@ -85,8 +84,6 @@ namespace Simian.Extensions
     public class ImageDelivery : IExtension
     {
         Simian Server;
-        AssetTexture defaultJP2;
-        AssetTexture defaultBakedJP2;
         Dictionary<UUID, ImageDownload> CurrentDownloads = new Dictionary<UUID, ImageDownload>();
         BlockingQueue<ImageDownload> CurrentDownloadQueue = new BlockingQueue<ImageDownload>();
 
@@ -98,24 +95,6 @@ namespace Simian.Extensions
         public void Start()
         {
             Server.UDP.RegisterPacketCallback(PacketType.RequestImage, new PacketCallback(RequestImageHandler));
-
-            // Create default textures for missing images and missing bakes
-            Bitmap defaultImage = new Bitmap(32, 32);
-            Graphics gfx = Graphics.FromImage(defaultImage);
-            gfx.Clear(Color.White);
-            gfx.FillRectangles(Brushes.LightGray, new Rectangle[] { new Rectangle(16, 16, 16, 16), new Rectangle(0, 0, 16, 16) });
-            gfx.DrawImage(defaultImage, 0, 0, 32, 32);
-
-            ManagedImage defaultManaged = new ManagedImage(defaultImage);
-
-            ManagedImage defaultBaked = new ManagedImage(defaultImage);
-            defaultBaked.Channels = ManagedImage.ImageChannels.Color | ManagedImage.ImageChannels.Alpha |
-                ManagedImage.ImageChannels.Bump;
-            defaultBaked.Alpha = defaultBaked.Red;
-            defaultBaked.Bump = defaultBaked.Red;
-
-            defaultJP2 = new AssetTexture(UUID.Zero, OpenJPEG.Encode(defaultManaged, true));
-            defaultBakedJP2 = new AssetTexture(UUID.Zero, OpenJPEG.Encode(defaultBaked, true)); 
         }
 
         public void Stop()
@@ -247,27 +226,6 @@ namespace Simian.Extensions
                         ImageNotInDatabasePacket notfound = new ImageNotInDatabasePacket();
                         notfound.ImageID.ID = block.Image;
                         Server.UDP.SendPacket(agent.AgentID, notfound, PacketCategory.Texture);
-
-                        /*
-                        // TODO: Technically we should return ImageNotInDatabasePacket, but for now return a default texture
-                        ImageDataPacket imageData = new ImageDataPacket();
-                        imageData.ImageID.ID = block.Image;
-                        imageData.ImageID.Codec = 1;
-                        imageData.ImageID.Packets = 1;
-                        if (bake)
-                        {
-                            Logger.DebugLog(String.Format("Sending default bake texture for {0}", block.Image));
-                            imageData.ImageData.Data = defaultBakedJP2.AssetData;
-                        }
-                        else
-                        {
-                            Logger.DebugLog(String.Format("Sending default texture for {0}", block.Image));
-                            imageData.ImageData.Data = defaultJP2.AssetData;
-                        }
-                        imageData.ImageID.Size = (uint)imageData.ImageData.Data.Length;
-
-                        Server.UDP.SendPacket(agent.AgentID, imageData, PacketCategory.Texture);
-                        */
                     }
                 }
             }
diff --git a/Programs/Simian/Extensions/InventoryManager.cs b/Programs/Simian/Extensions/InventoryManager.cs
index 36adbde4..d1310f0e 100644
--- a/Programs/Simian/Extensions/InventoryManager.cs
+++ b/Programs/Simian/Extensions/InventoryManager.cs
@@ -29,6 +29,7 @@ namespace Simian.Extensions
             Server.UDP.RegisterPacketCallback(PacketType.UpdateInventoryItem, new PacketCallback(UpdateInventoryItemHandler));
             Server.UDP.RegisterPacketCallback(PacketType.FetchInventoryDescendents, new PacketCallback(FetchInventoryDescendentsHandler));
             Server.UDP.RegisterPacketCallback(PacketType.FetchInventory, new PacketCallback(FetchInventoryHandler));
+            Server.UDP.RegisterPacketCallback(PacketType.CopyInventoryItem, new PacketCallback(CopyInventoryItemHandler));
             Server.UDP.RegisterPacketCallback(PacketType.MoveInventoryItem, new PacketCallback(MoveInventoryItemHandler));
             Server.UDP.RegisterPacketCallback(PacketType.MoveInventoryFolder, new PacketCallback(MoveInventoryFolderHandler));
             Server.UDP.RegisterPacketCallback(PacketType.PurgeInventoryDescendents, new PacketCallback(PurgeInventoryDescendentsHandler));
@@ -318,6 +319,53 @@ namespace Simian.Extensions
             Server.UDP.SendPacket(agent.AgentID, reply, PacketCategory.Inventory);
         }
 
+        void CopyInventoryItemHandler(Packet packet, Agent agent)
+        {
+            CopyInventoryItemPacket copy = (CopyInventoryItemPacket)packet;
+
+            for (int i = 0; i < copy.InventoryData.Length; i++)
+            {
+                CopyInventoryItemPacket.InventoryDataBlock block = copy.InventoryData[i];
+
+                // TODO: This allows someone to copy objects from another
+                // agent's inventory. Should we allow that, or do any 
+                // permission checks?
+                Dictionary<UUID, InventoryObject> agentInventory = GetAgentInventory(block.OldAgentID);
+
+                // Get the original object
+                InventoryObject obj;
+                if (agentInventory.TryGetValue(block.OldItemID, out obj) && obj is InventoryItem)
+                {
+                    InventoryItem item = (InventoryItem)obj;
+
+                    // Get the new folder
+                    InventoryObject folderObj;
+                    if (agentInventory.TryGetValue(block.NewFolderID, out folderObj) && folderObj is InventoryFolder)
+                    {
+                        string newName = Utils.BytesToString(block.NewName);
+                        if (String.IsNullOrEmpty(newName))
+                            newName = item.Name;
+
+                        // Create the copy
+                        CreateItem(agent.AgentID, newName, item.Description, item.InventoryType, item.AssetType,
+                            item.AssetID, folderObj.ID, item.Permissions.OwnerMask, item.Permissions.NextOwnerMask,
+                            agent.AgentID, item.CreatorID, UUID.Zero, block.CallbackID);
+                    }
+                    else
+                    {
+                        Logger.Log("CopyInventoryItem called with an unknown target folder " + block.NewFolderID,
+                            Helpers.LogLevel.Warning);
+                    }
+                    
+                }
+                else
+                {
+                    Logger.Log("CopyInventoryItem called for an unknown item " + block.OldItemID,
+                        Helpers.LogLevel.Warning);
+                }
+            }
+        }
+
         void MoveInventoryItemHandler(Packet packet, Agent agent)
         {
             MoveInventoryItemPacket move = (MoveInventoryItemPacket)packet;
@@ -663,7 +711,7 @@ namespace Simian.Extensions
             }
         }
 
-        #region Persistance
+        #region Persistence
 
         LLSDMap SerializeItem(InventoryItem item)
         {
@@ -838,6 +886,6 @@ namespace Simian.Extensions
                 Helpers.LogLevel.Info);
         }
 
-        #endregion Persistance
+        #endregion Persistence
     }
 }
diff --git a/Programs/Simian/Extensions/XMLPersistence.cs b/Programs/Simian/Extensions/XMLPersistence.cs
index e9bb883c..996b92d7 100644
--- a/Programs/Simian/Extensions/XMLPersistence.cs
+++ b/Programs/Simian/Extensions/XMLPersistence.cs
@@ -74,6 +74,7 @@ namespace Simian.Extensions
             try
             {
                 XmlTextWriter writer = new XmlTextWriter(server.DataDir + "simiandata.xml", System.Text.Encoding.UTF8);
+                writer.Formatting = Formatting.Indented;
                 writer.WriteStartElement("llsd");
                 LLSDParser.SerializeXmlElement(writer, dictionary);
                 writer.WriteEndElement();
diff --git a/Programs/Simian/Simian.cs b/Programs/Simian/Simian.cs
index 921eecbd..208b0452 100644
--- a/Programs/Simian/Simian.cs
+++ b/Programs/Simian/Simian.cs
@@ -293,7 +293,8 @@ namespace Simian
                 reader.Close();
 
                 LoginResponseData responseData = HandleLogin(firstName, lastName, password, start, version, channel);
-                responseData.InventorySkeleton = Inventory.CreateInventorySkeleton(responseData.AgentID);
+                if (responseData.Success)
+                    responseData.InventorySkeleton = Inventory.CreateInventorySkeleton(responseData.AgentID);
                 XmlWriter writer = XmlWriter.Create(context.Response.OutputStream);
                 responseData.ToXmlRpc(writer);
                 writer.Close();