Index: vpe/plugins/org.jboss.tools.vpe.xulrunner/src/org/jboss/tools/vpe/xulrunner/editor/XulRunnerEditor.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe.xulrunner/src/org/jboss/tools/vpe/xulrunner/editor/XulRunnerEditor.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe.xulrunner/src/org/jboss/tools/vpe/xulrunner/editor/XulRunnerEditor.java	(revision 25093)
@@ -350,37 +350,8 @@
 		nsISelection selection = domWindow.getSelection();
 		return selection;
 	}
-	
+
 	/**
-	 * Returns {@code true} if and only if the text selection exists and
-	 * it is containing in single #text node.
-	 */
-	public boolean isTextSelected() {
-		nsISelection selection = getSelection();
-		if (selection.getRangeCount() == 0) {
-			// nothing selected
-			return false;
-		}
-	
-		nsIDOMRange range = selection.getRangeAt(0);
-		nsIDOMNode container = range.getStartContainer();
-		if (!container.equals(range.getEndContainer())) {
-			// more than one node selected
-			return false;
-		}
-		if (container.getNodeType() != nsIDOMNode.TEXT_NODE) {
-			// not text node is selected
-			return false;
-		}
-		if (range.getStartOffset() == range.getEndOffset()) {
-			// no text selected
-			return false;
-		}
-		
-		return true;
-	}
-	
-	/**
 	 * Function created to restore functionality of MozillaBrowser
 	 * 
 	 * @return
Index: vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/VpeDnD.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/VpeDnD.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/VpeDnD.java	(revision 25093)
@@ -69,7 +69,6 @@
 import org.mozilla.interfaces.nsITransferable;
 import org.mozilla.xpcom.Mozilla;
 import org.w3c.dom.Document;
-import org.w3c.dom.Element;
 import org.w3c.dom.Node;
 import org.w3c.dom.NodeList;
 /**
@@ -123,26 +122,9 @@
 
 	public void dragStart(nsIDOMEvent domEvent) {
 		nsIDOMElement selectedElement = getSelectedElement();
-		Point pageCoords = getPageCoords(domEvent);
-		
-		/* for selected text the drag icon is shown
-		 * when a drag action begins.  */
-		if (vpeController.getXulRunnerEditor().isTextSelected()) {
-			nsISelection selection = vpeController.getXulRunnerEditor().getSelection();
-			nsIDOMRange range = selection.getRangeAt(0);
-			nsIDOMText textContainer = queryInterface(
-					range.getStartContainer(), nsIDOMText.class);
-			
-			draggablePattern.showDragIcon(new DraggableTextSelection(
-					textContainer,
-					new Point(pageCoords.x - DraggablePattern.ICON_HEIGHT / 2,
-							pageCoords.y + DraggablePattern.ICON_HEIGHT / 2),
-					range.getStartOffset(), range.getEndOffset()));
-		}
-		
 		// start drag sessionvpe-element
-		if (vpeController.getXulRunnerEditor().isTextSelected()
-				|| isDraggable(selectedElement)) {
+		if (isTextSelected(getVisualSelection()) || isDraggable(selectedElement)) {
+			Point pageCoords = getPageCoords(domEvent);
 			draggablePattern.startSession(pageCoords.x, pageCoords.y);
 			startDragSession(selectedElement);
 			domEvent.stopPropagation();
@@ -153,8 +135,8 @@
 	private nsIDOMElement getSelectedElement() {
 		return vpeController.getXulRunnerEditor().getLastSelectedElement();
 	}
-
-	/**Draggable Text
+	
+	/**
 	 * Called when drag over event occurs
 	 * @param event
 	 */
@@ -166,10 +148,8 @@
 		
 		final DropResolver dropResolver;
 		if (isInnerDragSession()) {
-			if (vpeController.getXulRunnerEditor().isTextSelected()) {
-				dropResolver = getDropResolverForNode(getSourceNode(
-						vpeController.getXulRunnerEditor()
-								.getSelection().getFocusNode()));
+			if (isTextSelected(getVisualSelection())) {
+				dropResolver = getDropResolverForNode(getSourceNode(getVisualSelection().getFocusNode()));
 			} else {
 				dropResolver = getDropResolverForInternalDrop();
 			}
@@ -237,16 +217,54 @@
 	}
 
 	private void refreshDraggablePattern() {
-		nsIDOMElement selectedElement = getSelectedElement();
+		nsISelection selection = getVisualSelection();
+		if (isTextSelected(selection)) {
+			nsIDOMRange range = selection.getRangeAt(0);
+			nsIDOMText textContainer = queryInterface(
+					range.getStartContainer(), nsIDOMText.class);
+			
+			draggablePattern.showDragIcon(new DraggableTextSelection(
+					textContainer, range.getStartOffset(), range.getEndOffset()));
+		} else {
+			nsIDOMElement selectedElement = getSelectedElement();
 
-		if (!vpeController.getXulRunnerEditor().isTextSelected() &&
-				isDraggable(selectedElement)) {
-			draggablePattern.showDragIcon(new DraggableElement(selectedElement));
-		} else {
-			draggablePattern.hideDragIcon();
+			if (isDraggable(selectedElement)) {
+				draggablePattern.showDragIcon(new DraggableElement(selectedElement));
+			} else {
+				draggablePattern.hideDragIcon();
+			}
 		}
 	}
 	
+	private nsISelection getVisualSelection() {
+		return vpeController.getXulRunnerEditor().getWebBrowser()
+				.getContentDOMWindow().getSelection();
+	}
+
+	private boolean isTextSelected(nsISelection selection) {
+		if (selection.getRangeCount() == 0) {
+			// nothing selected
+			return false;
+		}
+
+		nsIDOMRange range = selection.getRangeAt(0);
+		nsIDOMNode container = range.getStartContainer();
+		if (!container.equals(range.getEndContainer())) {
+			// more than one node selected
+			return false;
+		}
+		if (container.getNodeType() != nsIDOMNode.TEXT_NODE) {
+			// not text node is selected
+			return false;
+		}
+		if (range.getStartOffset() == range.getEndOffset()) {
+			// no text selected
+			return false;
+		}
+		
+		return true;
+	}
+
 	public boolean isDragIconClicked(nsIDOMMouseEvent mouseEvent) {
 		return draggablePattern.isDragIconClicked(mouseEvent);
 	}
@@ -445,19 +463,7 @@
 		nsISupportsArray transArray = (nsISupportsArray) getComponentManager()
 				.createInstanceByContractID(XPCOM.NS_SUPPORTSARRAY_CONTRACTID, null,
 						nsISupportsArray.NS_ISUPPORTSARRAY_IID);
-		
-		Node node = getSourceNode(element);
-		String text;
-		if (node instanceof Element && node instanceof NodeContainer) {
-			text = ((NodeContainer)node).getSource();
-		} else {
-			StyledText textWidget = vpeController.getSourceEditor()
-					.getTextViewer().getTextWidget();
-			text = textWidget.getSelectionText();
-		}
-		String xPath = XSLTXPathHelper.calculateXPathToNode(node);
-		transArray.appendElement(createTransferable(text, xPath));
-		
+		transArray.appendElement(createTransferable(getSourceNode(element)));
 		getDragService().invokeDragSession(element, transArray, null,
 				nsIDragService.DRAGDROP_ACTION_MOVE
 						| nsIDragService.DRAGDROP_ACTION_COPY
@@ -469,17 +475,20 @@
 	 * 
 	 * @return transferable object
 	 */
-	private nsITransferable createTransferable(String text, String xPath) {
+	private nsITransferable createTransferable(Node node) {
 		
 		nsITransferable iTransferable = (nsITransferable) getComponentManager()
 						.createInstanceByContractID(XPCOM.NS_TRANSFERABLE_CONTRACTID, null,
 								nsITransferable.NS_ITRANSFERABLE_IID);
-
-		nsISupportsString nodeSourceData = createNsISupportsString(text);
-		int nodeSourceDataLength = text.length() * 2;
+		
+		String nodeSource = ((NodeContainer)node).getSource();
+		nsISupportsString nodeSourceData = createNsISupportsString(nodeSource);
+		int nodeSourceDataLength = nodeSource.length() * 2;
 		iTransferable.setTransferData(ModelTransfer.MODEL, nodeSourceData, nodeSourceDataLength);
 		iTransferable.setTransferData("text/html", nodeSourceData, nodeSourceDataLength); //$NON-NLS-1$
 		iTransferable.setTransferData("text/unicode", nodeSourceData, nodeSourceDataLength); //$NON-NLS-1$
+		
+		String xPath = XSLTXPathHelper.calculateXPathToNode(node);
 		nsISupportsString xPathData = createNsISupportsString(xPath);
 		iTransferable.setTransferData(DndUtil.VPE_XPATH_FLAVOR, xPathData, xPath.length() * 2);
 		
@@ -565,7 +574,7 @@
 			System.out.print("<<<<<< innerDrop"); //$NON-NLS-1$
 		}
 
-		if (vpeController.getXulRunnerEditor().isTextSelected()) {
+		if (isTextSelected(getVisualSelection())) {
 			// it is inner Drag&Drop of text
 			StyledText textWidget = vpeController.getSourceEditor()
 					.getTextViewer().getTextWidget();
Index: vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggableTextSelection.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggableTextSelection.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggableTextSelection.java	(revision 25093)
@@ -11,7 +11,9 @@
 package org.jboss.tools.vpe.dnd;
 
 import org.eclipse.swt.graphics.Point;
+import org.eclipse.swt.graphics.Rectangle;
 import org.jboss.tools.vpe.editor.util.VisualDomUtil;
+import org.jboss.tools.vpe.xulrunner.util.XulRunnerVpeUtils;
 import org.mozilla.interfaces.nsIDOMDocument;
 import org.mozilla.interfaces.nsIDOMElement;
 import org.mozilla.interfaces.nsIDOMNode;
@@ -25,18 +27,16 @@
 	private final nsIDOMText selectionContainer;
 	private final int startOffset;
 	private final int endOffset;
-	private Point position;
 
 	/**
 	 * NOTE: selectionContainer must contain really selected text. It will
 	 * not work if real selection range do not math offsets.
 	 */
-	public DraggableTextSelection(nsIDOMText selectionContainer, Point position,
+	public DraggableTextSelection(nsIDOMText selectionContainer,
 			int startOffset, int endOffset) {
 		this.selectionContainer = selectionContainer;
 		this.startOffset = startOffset;
 		this.endOffset = endOffset;
-		this.position = position;
 	}
 	
 
@@ -62,6 +62,7 @@
 	 * @see org.jboss.tools.vpe.dnd.IDraggableFragment#getPosition()
 	 */
 	public Point getPosition() {
-		return position;
+		Rectangle bounds = XulRunnerVpeUtils.getTextSelectionBounds(selectionContainer); 
+		return new Point(bounds.x, bounds.y);
 	}
 }
Index: vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggablePattern.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggablePattern.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/dnd/DraggablePattern.java	(revision 25093)
@@ -13,9 +13,12 @@
 import static org.jboss.tools.vpe.xulrunner.util.XPCOM.queryInterface;
 
 import org.eclipse.swt.graphics.Point;
+import org.eclipse.swt.graphics.Rectangle;
 import org.jboss.tools.vpe.editor.mozilla.MozillaEditor;
 import org.jboss.tools.vpe.editor.util.HTML;
 import org.jboss.tools.vpe.editor.util.VpeStyleUtil;
+import org.jboss.tools.vpe.xulrunner.util.XulRunnerVpeUtils;
+import org.mozilla.interfaces.nsIDOMCSSStyleDeclaration;
 import org.mozilla.interfaces.nsIDOMElement;
 import org.mozilla.interfaces.nsIDOMMouseEvent;
 import org.mozilla.interfaces.nsIDOMNode;
@@ -26,7 +29,7 @@
  * @author Yahor Radtsevich (yradtsevich)
  */
 public class DraggablePattern {
-	public static final int ICON_HEIGHT = 20;
+	private static final int ICON_HEIGHT = 20;
 	private static final String DRAG_ICON_ID = "dragIcon";		  //$NON-NLS-1$
 	private static final String DRAG_ICON_FILE = "dragIcon.gif";  //$NON-NLS-1$
 	
Index: vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/mozilla/MozillaEventAdapter.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/mozilla/MozillaEventAdapter.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/mozilla/MozillaEventAdapter.java	(revision 25093)
@@ -282,10 +282,11 @@
 				listener.onShowContextMenu(0, domEvent, node);
 			}
 		} else if(DRAGSTART.equals(eventType)) {
-			for (MozillaDndListener listener : listeners.getListeners(
-					MozillaDndListener.class)) {
-				listener.dragStart(domEvent);
-			}
+			// fix of JBIDE-4998: since drag events now are implemented by
+			// handling CLICKEVENTTYPE, there is no need to handle them here 
+			//for (DndDomEventListener listener : dndListeners) {
+			//	listener.dragGesture(domEvent);
+			//}
 		} else if(DRAGDROPEVENT.equals(eventType)) {
 			// calls when drop event occure		 
 			for (MozillaDndListener listener : listeners.getListeners(
Index: vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/VpeController.java
===================================================================
--- vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/VpeController.java	(revision 25094)
+++ vpe/plugins/org.jboss.tools.vpe/src/org/jboss/tools/vpe/editor/VpeController.java	(revision 25093)
@@ -128,7 +128,6 @@
 import org.jboss.tools.vpe.resref.core.RelativeFolderReferenceList;
 import org.jboss.tools.vpe.resref.core.TaglibReferenceList;
 import org.jboss.tools.vpe.xulrunner.editor.XulRunnerEditor;
-import static org.jboss.tools.vpe.xulrunner.util.XPCOM.queryInterface;
 import org.mozilla.interfaces.nsIDOMDocument;
 import org.mozilla.interfaces.nsIDOMElement;
 import org.mozilla.interfaces.nsIDOMEvent;
@@ -136,7 +135,6 @@
 import org.mozilla.interfaces.nsIDOMMouseEvent;
 import org.mozilla.interfaces.nsIDOMMutationEvent;
 import org.mozilla.interfaces.nsIDOMNode;
-import org.mozilla.interfaces.nsIDOMRange;
 import org.mozilla.interfaces.nsISelection;
 import org.mozilla.interfaces.nsISelectionListener;
 import org.w3c.dom.Attr;
@@ -1204,6 +1202,8 @@
 				// mareshkau
 				if (vpeDnD.isDragIconClicked(mouseEvent)) {
 					vpeDnD.dragStart(mouseEvent);
+				} else {
+					selectionManager.setSelection(mouseEvent);					
 				}
 			}
 		} finally {
@@ -1231,13 +1231,6 @@
 			return;
 		}
 		try {
-			// if text is selected, then there is no need to select any element 
-			if (!xulRunnerEditor.isTextSelected() ||
-						!xulRunnerEditor.getSelection().containsNode(
-									queryInterface(mouseEvent.getTarget(), nsIDOMNode.class), true)) {
-				selectionManager.setSelection(mouseEvent);
-			};
-			
 			nsIDOMNode visualNode = VisualDomUtil.getTargetNode(mouseEvent);
 			if (visualNode != null) {
 				if (VpeDebug.PRINT_VISUAL_MOUSE_EVENT) {