diff --git a/CHANGELOG b/CHANGELOG
index 80dd8c6b0..548043029 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,6 +1,7 @@
 CHANGELOG RoundCube Webmail
 ===========================
 
+- Added contact groups in address book (not finished yet)
 - Added PageUp/PageDown/Home/End keys support on lists (#1486430)
 - Added possibility to select all messages in a folder (#1484756)
 - Added 'imap_force_caps' option for after-login CAPABILITY checking (#1485750)
diff --git a/SQL/mysql.initial.sql b/SQL/mysql.initial.sql
index 7a22a60f6..c201beae5 100644
--- a/SQL/mysql.initial.sql
+++ b/SQL/mysql.initial.sql
@@ -94,6 +94,31 @@ CREATE TABLE `contacts` (
  INDEX `user_contacts_index` (`user_id`,`email`)
 ) /*!40000 ENGINE=INNODB */ /*!40101 CHARACTER SET utf8 COLLATE utf8_general_ci */;
 
+-- Table structure for table `contactgroups`
+
+CREATE TABLE `contactgroups` (
+  `contactgroup_id` int(10) UNSIGNED NOT NULL AUTO_INCREMENT,
+  `user_id` int(10) UNSIGNED NOT NULL DEFAULT '0',
+  `changed` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
+  `del` tinyint(1) NOT NULL DEFAULT '0',
+  `name` varchar(128) NOT NULL DEFAULT '',
+  PRIMARY KEY(`contactgroup_id`),
+  CONSTRAINT `user_id_fk_contactgroups` FOREIGN KEY (`user_id`)
+    REFERENCES `users`(`user_id`) ON DELETE CASCADE ON UPDATE CASCADE,
+  INDEX `contactgroups_user_index` (`user_id`,`del`)
+) /*!40000 ENGINE=INNODB */ /*!40101 CHARACTER SET utf8 COLLATE utf8_general_ci */;
+
+CREATE TABLE `contactgroupmembers` (
+  `contactgroup_id` int(10) UNSIGNED NOT NULL,
+  `contact_id` int(10) UNSIGNED NOT NULL DEFAULT '0',
+  `created` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
+  PRIMARY KEY (`contactgroup_id`, `contact_id`),
+  CONSTRAINT `contactgroup_id_fk_contactgroups` FOREIGN KEY (`contactgroup_id`)
+    REFERENCES `contactgroups`(`contactgroup_id`) ON DELETE CASCADE ON UPDATE CASCADE,
+  CONSTRAINT `contact_id_fk_contacts` FOREIGN KEY (`contact_id`)
+    REFERENCES `contacts`(`contact_id`) ON DELETE CASCADE ON UPDATE CASCADE
+) /*!40000 ENGINE=INNODB */;
+
 
 -- Table structure for table `identities`
 
diff --git a/SQL/mysql.update.sql b/SQL/mysql.update.sql
index c4a897903..5de1f57b2 100644
--- a/SQL/mysql.update.sql
+++ b/SQL/mysql.update.sql
@@ -83,4 +83,27 @@ ALTER TABLE `contacts` ALTER `surname` SET DEFAULT '';
 
 ALTER TABLE `identities` ADD INDEX `user_identities_index` (`user_id`, `del`);
 
+CREATE TABLE `contactgroups` (
+  `contactgroup_id` int(10) UNSIGNED NOT NULL AUTO_INCREMENT,
+  `user_id` int(10) UNSIGNED NOT NULL DEFAULT '0',
+  `changed` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
+  `del` tinyint(1) NOT NULL DEFAULT '0',
+  `name` varchar(128) NOT NULL DEFAULT '',
+  PRIMARY KEY(`contactgroup_id`),
+  CONSTRAINT `user_id_fk_contactgroups` FOREIGN KEY (`user_id`)
+    REFERENCES `users`(`user_id`) ON DELETE CASCADE ON UPDATE CASCADE,
+  INDEX `contactgroups_user_index` (`user_id`,`del`)
+) /*!40000 ENGINE=INNODB */ /*!40101 CHARACTER SET utf8 COLLATE utf8_general_ci */;
+
+CREATE TABLE `contactgroupmembers` (
+  `contactgroup_id` int(10) UNSIGNED NOT NULL,
+  `contact_id` int(10) UNSIGNED NOT NULL DEFAULT '0',
+  `created` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
+  PRIMARY KEY (`contactgroup_id`, `contact_id`),
+  CONSTRAINT `contactgroup_id_fk_contactgroups` FOREIGN KEY (`contactgroup_id`)
+    REFERENCES `contactgroups`(`contactgroup_id`) ON DELETE CASCADE ON UPDATE CASCADE,
+  CONSTRAINT `contact_id_fk_contacts` FOREIGN KEY (`contact_id`)
+    REFERENCES `contacts`(`contact_id`) ON DELETE CASCADE ON UPDATE CASCADE
+) /*!40000 ENGINE=INNODB */;
+
 /*!40014 SET FOREIGN_KEY_CHECKS=1 */;
diff --git a/SQL/sqlite.initial.sql b/SQL/sqlite.initial.sql
index 30546bbb2..8929c62ea 100644
--- a/SQL/sqlite.initial.sql
+++ b/SQL/sqlite.initial.sql
@@ -19,7 +19,7 @@ CREATE INDEX ix_cache_created ON cache(created);
 -- --------------------------------------------------------
 
 -- 
--- Table structure for table contacts
+-- Table structure for table contacts and related
 -- 
 
 CREATE TABLE contacts (
@@ -36,6 +36,26 @@ CREATE TABLE contacts (
 
 CREATE INDEX ix_contacts_user_id ON contacts(user_id, email);
 
+
+CREATE TABLE contactgroups (
+  contactgroup_id integer NOT NULL PRIMARY KEY,
+  user_id integer NOT NULL default '0',
+  changed datetime NOT NULL default '0000-00-00 00:00:00',
+  del tinyint NOT NULL default '0',
+  name varchar(128) NOT NULL default ''
+);
+
+CREATE INDEX ix_contactgroups_user_id ON contactgroups(user_id, del);
+
+
+CREATE TABLE contactgroupmembers (
+  contactgroup_id integer NOT NULL,
+  contact_id integer NOT NULL default '0',
+  created datetime NOT NULL default '0000-00-00 00:00:00',
+  PRIMARY KEY (contactgroup_id, contact_id)
+);
+
+
 -- --------------------------------------------------------
 
 -- 
diff --git a/SQL/sqlite.update.sql b/SQL/sqlite.update.sql
index fd90d48f6..1011f52c2 100644
--- a/SQL/sqlite.update.sql
+++ b/SQL/sqlite.update.sql
@@ -47,3 +47,21 @@ CREATE INDEX ix_contacts_user_id ON contacts(user_id, email);
 
 DROP INDEX ix_identities_user_id;
 CREATE INDEX ix_identities_user_id ON identities (user_id, del);
+
+CREATE TABLE contactgroups (
+  contactgroup_id integer NOT NULL PRIMARY KEY,
+  user_id integer NOT NULL default '0',
+  changed datetime NOT NULL default '0000-00-00 00:00:00',
+  del tinyint NOT NULL default '0',
+  name varchar(128) NOT NULL default ''
+);
+
+CREATE INDEX ix_contactgroups_user_id ON contactgroups(user_id, del);
+
+CREATE TABLE contactgroupmembers (
+  contactgroup_id integer NOT NULL,
+  contact_id integer NOT NULL default '0',
+  created datetime NOT NULL default '0000-00-00 00:00:00',
+  PRIMARY KEY (contactgroup_id, contact_id)
+);
+
diff --git a/config/db.inc.php.dist b/config/db.inc.php.dist
index eeca64718..a7cfe2120 100644
--- a/config/db.inc.php.dist
+++ b/config/db.inc.php.dist
@@ -44,6 +44,10 @@ $rcmail_config['db_table_identities'] = 'identities';
 
 $rcmail_config['db_table_contacts'] = 'contacts';
 
+$rcmail_config['db_table_contactgroups'] = 'contactgroups';
+
+$rcmail_config['db_table_contactgroupmembers'] = 'contactgroupmembers';
+
 $rcmail_config['db_table_session'] = 'session';
 
 $rcmail_config['db_table_cache'] = 'cache';
diff --git a/index.php b/index.php
index ee4aa45cf..02a6f14be 100644
--- a/index.php
+++ b/index.php
@@ -217,6 +217,10 @@ $action_map = array(
   
   'addressbook' => array(
     'add' => 'edit.inc',
+    'create-group' => 'groups.inc',
+    'delete-group' => 'groups.inc',
+    'removefromgroup' => 'groups.inc',
+    'add2group' => 'groups.inc',
   ),
   
   'settings' => array(
diff --git a/program/include/rcmail.php b/program/include/rcmail.php
index 548ca6b12..1224822c6 100644
--- a/program/include/rcmail.php
+++ b/program/include/rcmail.php
@@ -300,19 +300,21 @@ class rcmail
     if ($abook_type != 'ldap') {
       $list['0'] = array(
         'id' => 0,
-	'name' => rcube_label('personaladrbook'),
+        'name' => rcube_label('personaladrbook'),
+        'groups' => true,
         'readonly' => false,
-	'autocomplete' => in_array('sql', $autocomplete)
+        'autocomplete' => in_array('sql', $autocomplete)
       );
     }
 
     if (is_array($ldap_config)) {
       foreach ($ldap_config as $id => $prop)
         $list[$id] = array(
-	  'id' => $id,
-	  'name' => $prop['name'],
-	  'readonly' => !$prop['writable'],
-	  'autocomplete' => in_array('sql', $autocomplete)
+          'id' => $id,
+          'name' => $prop['name'],
+          'groups' => false,
+          'readonly' => !$prop['writable'],
+          'autocomplete' => in_array('sql', $autocomplete)
         );
     }
 
diff --git a/program/include/rcube_addressbook.php b/program/include/rcube_addressbook.php
index b691ee8d5..ff525bc11 100644
--- a/program/include/rcube_addressbook.php
+++ b/program/include/rcube_addressbook.php
@@ -29,6 +29,7 @@ abstract class rcube_addressbook
 {
     /** public properties */
     var $primary_key;
+    var $groups = false;
     var $readonly = true;
     var $ready = false;
     var $list_page = 1;
@@ -62,6 +63,13 @@ abstract class rcube_addressbook
      */
     abstract function list_records($cols=null, $subset=0);
 
+    /**
+     * List all active contact groups of this source
+     *
+     * @return array  Indexed list of contact groups, each a hash array
+     */
+    function list_groups() { }
+
     /**
      * Search records
      *
@@ -123,6 +131,12 @@ abstract class rcube_addressbook
       $this->page_size = (int)$size;
     }
 
+    /**
+     * Setter for the current group
+     * (empty, has to be re-implemented by extending class)
+     */
+    function set_group($gid) { }
+
     /**
      * Create a new contact record
      *
diff --git a/program/include/rcube_contacts.php b/program/include/rcube_contacts.php
index 23f86e852..41f47eae3 100644
--- a/program/include/rcube_contacts.php
+++ b/program/include/rcube_contacts.php
@@ -39,8 +39,10 @@ class rcube_contacts extends rcube_addressbook
   /** public properties */
   var $primary_key = 'contact_id';
   var $readonly = false;
+  var $groups = true;
   var $list_page = 1;
   var $page_size = 10;
+  var $group_id = 0;
   var $ready = false;
 
   
@@ -81,6 +83,16 @@ class rcube_contacts extends rcube_addressbook
   }
 
 
+  /**
+   * Setter for the current group
+   * (empty, has to be re-implemented by extending class)
+   */
+  function set_group($gid)
+  {
+    $this->group_id = $gid;
+  }
+
+
   /**
    * Reset all saved results and search parameters
    */
@@ -92,6 +104,32 @@ class rcube_contacts extends rcube_addressbook
     $this->search_string = null;
   }
   
+  /**
+   * List all active contact groups of this source
+   *
+   * @param string  Search string to match group name
+   * @return array  Indexed list of contact groups, each a hash array
+   */
+  function list_groups($search = null)
+  {
+    $results = array();
+    $sql_filter = $search ? "AND " . $this->db->ilike('name', '%'.$search.'%') : '';
+
+    $sql_result = $this->db->query(
+      "SELECT * FROM ".get_table_name('contactgroups')."
+       WHERE  del<>1
+       AND    user_id=?
+       $sql_filter
+       ORDER BY name",
+      $this->user_id);
+
+    while ($sql_result && ($sql_arr = $this->db->fetch_assoc($sql_result))) {
+      $sql_arr['ID'] = $sql_arr['contactgroup_id'];
+      $results[] = $sql_arr;
+    }
+    
+    return $results;
+  }
   
   /**
    * List the current set of contact records
@@ -109,18 +147,24 @@ class rcube_contacts extends rcube_addressbook
     // get contacts from DB
     if ($this->result->count)
     {
+      if ($this->group_id)
+        $join = "LEFT JOIN ".get_table_name('contactgroupmembers')." AS rcmgrouplinks".
+          " ON (rcmgrouplinks.contact_id=rcmcontacts.".$this->primary_key.")";
+      
       $start_row = $subset < 0 ? $this->result->first + $this->page_size + $subset : $this->result->first;
       $length = $subset != 0 ? abs($subset) : $this->page_size;
       
       $sql_result = $this->db->limitquery(
-        "SELECT * FROM ".$this->db_name."
-         WHERE  del<>1
-         AND    user_id=?" .
+        "SELECT * FROM ".$this->db_name." AS rcmcontacts ".$join."
+         WHERE  rcmcontacts.del<>1
+         AND    rcmcontacts.user_id=?" .
+        ($this->group_id ? " AND rcmgrouplinks.contactgroup_id=?" : "").
         ($this->filter ? " AND (".$this->filter.")" : "") .
-        " ORDER BY name",
+        " ORDER BY rcmcontacts.name",
         $start_row,
         $length,
-        $this->user_id);
+        $this->user_id,
+        $this->group_id);
     }
     
     while ($sql_result && ($sql_arr = $this->db->fetch_assoc($sql_result)))
@@ -184,14 +228,20 @@ class rcube_contacts extends rcube_addressbook
    */
   function count()
   {
+    if ($this->group_id)
+      $join = "LEFT JOIN ".get_table_name('contactgroupmembers')." AS rcmgrouplinks".
+        " ON (rcmgrouplinks.contact_id=rcmcontacts.".$this->primary_key.")";
+      
     // count contacts for this user
     $sql_result = $this->db->query(
-      "SELECT COUNT(contact_id) AS rows
-       FROM ".$this->db_name."
-       WHERE  del<>1
-       AND    user_id=?".
+      "SELECT COUNT(rcmcontacts.contact_id) AS rows
+       FROM ".$this->db_name." AS rcmcontacts ".$join."
+       WHERE  rcmcontacts.del<>1
+       AND    rcmcontacts.user_id=?".
+       ($this->group_id ? " AND rcmgrouplinks.contactgroup_id=?" : "").
        ($this->filter ? " AND (".$this->filter.")" : ""),
-      $this->user_id);
+      $this->user_id,
+      $this->group_id);
 
     $sql_arr = $this->db->fetch_assoc($sql_result);
     return new rcube_result_set($sql_arr['rows'], ($this->list_page-1) * $this->page_size);;
@@ -357,4 +407,114 @@ class rcube_contacts extends rcube_addressbook
     return $this->db->affected_rows();
   }
 
+
+  /**
+   * Create a contact group with the given name
+   *
+   * @param string The group name
+   * @return False on error, array with record props in success
+   */
+  function create_group($name)
+  {
+    $result = false;
+    
+    $sql_result = $this->db->query(
+      "SELECT * FROM ".get_table_name('contactgroups')."
+       WHERE  del<>1
+       AND    user_id=?
+       AND    name LIKE ?",
+      $this->user_id,
+      $name . '%');
+    
+    // make sure we have a unique name
+    if ($num = $this->db->num_rows($sql_result))
+      $name .= ' ' . ($num+1);
+    
+    $this->db->query(
+      "INSERT INTO ".get_table_name('contactgroups')." (user_id, changed, name)
+       VALUES (".intval($this->user_id).", ".$this->db->now().", ".$this->db->quote($name).")"
+      );
+    
+    if ($insert_id = $this->db->insert_id('contactgroups'))
+      $result = array('id' => $insert_id, 'name' => $name);
+    
+    return $result;
+  }
+
+  /**
+   * Delete the given group and all linked group members
+   *
+   * @param string Group identifier
+   */
+  function delete_group($gid)
+  {
+    $sql_result = $this->db->query(
+      "DELETE FROM ".get_table_name('contactgroupmembers')."
+       WHERE  contactgroup_id=?",
+      $gid);
+    
+    $sql_result = $this->db->query(
+      "UPDATE ".get_table_name('contactgroups')."
+       SET del=1, changed=".$this->db->now()."
+       WHERE  contactgroup_id=?",
+      $gid);
+    
+    return $this->db->affected_rows();
+  }
+
+  /**
+   * Add the given contact records the a certain group
+   *
+   * @param string  Group identifier
+   * @param array   List of contact identifiers to be added
+   */
+  function add_to_group($group_id, $ids)
+  {
+    if (!is_array($ids))
+      $ids = explode(',', $ids);
+    
+    $added = 0;
+    
+    foreach ($ids as $contact_id) {
+      $sql_result = $this->db->query(
+        "SELECT 1 FROM ".get_table_name('contactgroupmembers')."
+         WHERE  contactgroup_id=?
+         AND    contact_id=?",
+      $group_id,
+      $contact_id);
+      
+      if (!$this->db->num_rows($sql_result)) {
+        $this->db->query(
+          "INSERT INTO ".get_table_name('contactgroupmembers')." (contactgroup_id, contact_id, created)
+           VALUES (".intval($group_id).", ".intval($contact_id).", ".$this->db->now().")"
+        );
+        if (!$this->db->db_error)
+          $added++;
+      }
+    }
+    
+    return $added;
+  }
+  
+  
+  /**
+   * Remove the given contact records from a certain group
+   *
+   * @param string  Group identifier
+   * @param array   List of contact identifiers to be removed
+   */
+  function remove_from_group($group_id, $ids)
+  {
+    if (!is_array($ids))
+      $ids = explode(',', $ids);
+    
+    $sql_result = $this->db->query(
+      "DELETE FROM ".get_table_name('contactgroupmembers')."
+       WHERE  contactgroup_id=?
+       AND    contact_id IN (".join(',', array_map(array($this->db, 'quote'), $ids)).")",
+      $group_id);
+    
+    return $this->db->affected_rows();
+  }
+  
 }
diff --git a/program/js/app.js b/program/js/app.js
index a9838bc57..5330fb0da 100644
--- a/program/js/app.js
+++ b/program/js/app.js
@@ -284,9 +284,13 @@ function rcube_webmail()
 
 
       case 'addressbook':
+        if (this.gui_objects.folderlist)
+          this.env.contactfolders = $.extend($.extend({}, this.env.address_sources), this.env.contactgroups);
+        
         if (this.gui_objects.contactslist)
           {
-          this.contact_list = new rcube_list_widget(this.gui_objects.contactslist, {multiselect:true, draggable:true, keyboard:true});
+          this.contact_list = new rcube_list_widget(this.gui_objects.contactslist,
+            {multiselect:true, draggable:this.gui_objects.folderlist?true:false, keyboard:true});
           this.contact_list.row_init = function(row){ p.triggerEvent('insertrow', { cid:row.uid, row:row }); };
           this.contact_list.addEventListener('keypress', function(o){ p.contactlist_keypress(o); });
           this.contact_list.addEventListener('select', function(o){ p.contactlist_select(o); });
@@ -306,13 +310,15 @@ function rcube_webmail()
           else
             this.contact_list.focus();
             
-          this.gui_objects.folderlist = this.gui_objects.contactslist;
+          //this.gui_objects.folderlist = this.gui_objects.contactslist;
           }
 
         this.set_page_buttons();
         
-        if (this.env.address_sources && this.env.address_sources[this.env.source] && !this.env.address_sources[this.env.source].readonly)
+        if (this.env.address_sources && this.env.address_sources[this.env.source] && !this.env.address_sources[this.env.source].readonly) {
           this.enable_command('add', 'import', true);
+          this.enable_command('add-group', this.env.address_sources[this.env.source].groups);
+        }
         
         if (this.env.cid)
           this.enable_command('show', 'edit', true);
@@ -325,7 +331,7 @@ function rcube_webmail()
         if (this.contact_list && this.contact_list.rowcount > 0)
           this.enable_command('export', true);
 
-        this.enable_command('list', true);
+        this.enable_command('list', 'listgroup', true);
         break;
 
 
@@ -489,9 +495,8 @@ function rcube_webmail()
 
       case 'menu-open':
       case 'menu-save':
-	    this.triggerEvent(command, {props:props});
-	    return false;
-        break;
+        this.triggerEvent(command, {props:props});
+        return false;
 
       case 'open':
         var uid;
@@ -525,6 +530,11 @@ function rcube_webmail()
         break;
 
 
+      case 'listgroup':
+        this.list_contacts(null, props);
+        break;
+
+
       case 'load-headers':
         this.load_headers(obj);
         break;
@@ -969,7 +979,7 @@ function rcube_webmail()
       case 'add-contact':
         this.add_contact(props);
         break;
-      
+
       // quicksearch
       case 'search':
         if (!props && this.gui_objects.qsearchbox)
@@ -988,7 +998,11 @@ function rcube_webmail()
         if (s && this.env.mailbox)
           this.list_mailbox(this.env.mailbox);
         else if (s && this.task == 'addressbook')
-          this.list_contacts(this.env.source);
+          this.list_contacts(this.env.source, this.env.group);
+        break;
+
+      case 'add-group':
+        this.add_contact_group(props)
         break;
 
       case 'import':
@@ -1191,7 +1205,7 @@ function rcube_webmail()
       if (!rcube_mouse_is_over(e, this.contact_list.list))
         this.contact_list.blur();
       list = this.contact_list;
-      model = this.env.address_sources;
+      model = this.env.contactfolders;
     }
     else if (this.ksearch_value) {
       this.ksearch_blur();
@@ -1199,14 +1213,14 @@ function rcube_webmail()
 
     // handle mouse release when dragging
     if (this.drag_active && model && this.env.last_folder_target) {
-      var mbox = model[this.env.last_folder_target].id;
-
+      var target = model[this.env.last_folder_target];
+      
       $(this.get_folder_li(this.env.last_folder_target)).removeClass('droptarget');
       this.env.last_folder_target = null;
       list.draglayer.hide();
 
-      if (!this.drag_menu(e, mbox))
-        this.command('moveto', mbox);
+      if (!this.drag_menu(e, target))
+        this.command('moveto', target);
     }
     
     // reset 'pressed' buttons
@@ -1218,17 +1232,19 @@ function rcube_webmail()
     }
   };
 
-  this.drag_menu = function(e, mbox)
+  this.drag_menu = function(e, target)
   {
     var modkey = rcube_event.get_modifier(e);
     var menu = $('#'+this.gui_objects.message_dragmenu);
 
-    if (menu && modkey == SHIFT_KEY) {
+    if (menu && modkey == SHIFT_KEY && this.commands['copy']) {
       var pos = rcube_event.get_mouse_pos(e);
-      this.env.drag_mbox = mbox;
+      this.env.drag_target = target;
       menu.css({top: (pos.y-10)+'px', left: (pos.x-10)+'px'}).show();
       return true;
     }
+    
+    return false;
   };
 
   this.drag_menu_action = function(action)
@@ -1237,13 +1253,13 @@ function rcube_webmail()
     if (menu) {
       menu.hide();
     }
-    this.command(action, this.env.drag_mbox);
-    this.env.drag_mbox = null;
+    this.command(action, this.env.drag_target);
+    this.env.drag_target = null;
   };
 
   this.drag_start = function(list)
   {
-    var model = this.task == 'mail' ? this.env.mailboxes : this.env.address_sources;
+    var model = this.task == 'mail' ? this.env.mailboxes : this.env.contactfolders;
 
     this.drag_active = true;
     if (this.preview_timer)
@@ -1484,7 +1500,9 @@ function rcube_webmail()
     if (this.task == 'mail')
       return (this.env.mailboxes[id] && this.env.mailboxes[id].id != this.env.mailbox && !this.env.mailboxes[id].virtual);
     else if (this.task == 'addressbook')
-      return (id != this.env.source && this.env.address_sources[id] && !this.env.address_sources[id].readonly);
+      return (id != this.env.source && this.env.contactfolders[id] && !this.env.contactfolders[id].readonly &&
+        !(!this.env.source && this.env.contactfolders[id].group) &&
+        !(this.env.contactfolders[id].type == 'group' && this.env.contactfolders[id].id == this.env.group));
     else if (this.task == 'settings')
       return (id != this.env.folder);
   };
@@ -1784,7 +1802,7 @@ function rcube_webmail()
       if (this.task=='mail')
         this.list_mailbox(this.env.mailbox, page);
       else if (this.task=='addressbook')
-        this.list_contacts(this.env.source, page);
+        this.list_contacts(this.env.source, null, page);
       }
     };
 
@@ -2174,6 +2192,9 @@ function rcube_webmail()
   // move selected messages to the specified mailbox
   this.move_messages = function(mbox)
     {
+    if (mbox && typeof mbox == 'object')
+      mbox = mbox.id;
+      
     // exit if current or no mailbox specified or if selection is empty
     if (!mbox || mbox == this.env.mailbox || (!this.env.uid && (!this.message_list || !this.message_list.get_selection().length)))
       return;
@@ -3097,6 +3118,7 @@ function rcube_webmail()
       this.http_request('search', '_q='+urlencode(value)
         + (this.env.mailbox ? '&_mbox='+urlencode(this.env.mailbox) : '')
         + (this.env.source ? '&_source='+urlencode(this.env.source) : '')
+        + (this.env.group ? '&_gid='+urlencode(this.env.group) : '')
         + (addurl ? addurl : ''), true);
       }
     return true;
@@ -3208,7 +3230,16 @@ function rcube_webmail()
     // replace search string with full address
     var pre = this.ksearch_input.value.substring(0, p);
     var end = this.ksearch_input.value.substring(p+this.ksearch_value.length, this.ksearch_input.value.length);
-    var insert  = this.env.contacts[id]+', ';
+    var insert = '';
+    
+    // insert all members of a group
+    if (typeof this.env.contacts[id] == 'object' && this.env.contacts[id].members) {
+      for (var i=0; i < this.env.contacts[id].members.length; i++)
+        insert += this.env.contacts[id].members[i] + ', ';
+    }
+    else if (typeof this.env.contacts[id] == 'string')
+      insert = this.env.contacts[id] + ', ';
+
     this.ksearch_input.value = pre + insert + end;
 
     // set caret to insert pos
@@ -3269,7 +3300,7 @@ function rcube_webmail()
   {
     // display search results
     if (a_results.length && this.ksearch_input && this.ksearch_value) {
-      var p, ul, li, s_val = this.ksearch_value;
+      var p, ul, li, text, s_val = this.ksearch_value;
       
       // create results pane if not present
       if (!this.ksearch_pane) {
@@ -3283,9 +3314,10 @@ function rcube_webmail()
       ul.innerHTML = '';
 
       // add each result line to list
-      for (i=0; i<a_results.length; i++) {
+      for (i=0; i < a_results.length; i++) {
+        text = typeof a_results[i] == 'object' ? a_results[i].name : a_results[i];
         li = document.createElement('LI');
-        li.innerHTML = a_results[i].replace(new RegExp('('+s_val+')', 'ig'), '##$1%%').replace(/</g, '&lt;').replace(/>/g, '&gt;').replace(/##([^%]+)%%/g, '<b>$1</b>');
+        li.innerHTML = text.replace(new RegExp('('+s_val+')', 'ig'), '##$1%%').replace(/</g, '&lt;').replace(/>/g, '&gt;').replace(/##([^%]+)%%/g, '<b>$1</b>');
         li.onmouseover = function(){ ref.ksearch_select(this); };
         li.onmouseup = function(){ ref.ksearch_click(this) };
         li._rcm_id = i;
@@ -3363,15 +3395,19 @@ function rcube_webmail()
       return false;
     };
 
-  this.list_contacts = function(src, page)
+  this.list_contacts = function(src, group, page)
     {
     var add_url = '';
     var target = window;
     
+    // currently all groups belong to the local address book
+    if (group)
+      src = 0;
+    
     if (!src)
       src = this.env.source;
     
-    if (page && this.current_page==page && src == this.env.source)
+    if (page && this.current_page == page && src == this.env.source && group == this.env.group)
       return false;
       
     if (src != this.env.source)
@@ -3380,14 +3416,19 @@ function rcube_webmail()
       this.env.current_page = page;
       this.reset_qsearch();
       }
+    else if (group != this.env.group)
+      page = this.env.current_page = 1;
 
     this.select_folder(src, this.env.source);
+    this.select_folder(group, this.env.group, 'rcmliG');
+    
     this.env.source = src;
+    this.env.group = group;
 
     // load contacts remotely
     if (this.gui_objects.contactslist)
       {
-      this.list_contacts_remote(src, page);
+      this.list_contacts_remote(src, group, page);
       return;
       }
 
@@ -3396,17 +3437,22 @@ function rcube_webmail()
       target = window.frames[this.env.contentframe];
       add_url = '&_framed=1';
       }
+      
+    if (group)
+      add_url += '&_gid='+group;
+    if (page)
+      add_url += '&_page='+page;
 
     // also send search request to get the correct listing
     if (this.env.search_request)
       add_url += '&_search='+this.env.search_request;
 
     this.set_busy(true, 'loading');
-    target.location.href = this.env.comm_path+(src ? '&_source='+urlencode(src) : '')+(page ? '&_page='+page : '')+add_url;
+    target.location.href = this.env.comm_path + (src ? '&_source='+urlencode(src) : '') + add_url;
     };
 
   // send remote request to load contacts list
-  this.list_contacts_remote = function(src, page)
+  this.list_contacts_remote = function(src, group, page)
     {
     // clear message list first
     this.contact_list.clear(true);
@@ -3416,6 +3462,10 @@ function rcube_webmail()
     // send request to server
     var url = (src ? '_source='+urlencode(src) : '') + (page ? (src?'&':'') + '_page='+page : '');
     this.env.source = src;
+    this.env.group = group;
+    
+    if (group)
+      url += '&_gid='+group;
     
     // also send search request to get the right messages 
     if (this.env.search_request) 
@@ -3453,8 +3503,10 @@ function rcube_webmail()
     if (!cid)
       cid = this.contact_list.get_selection().join(',');
 
-    if (to != this.env.source && cid && this.env.address_sources[to] && !this.env.address_sources[to].readonly)
-      this.http_post('copy', '_cid='+urlencode(cid)+'&_source='+urlencode(this.env.source)+'&_to='+urlencode(to));
+    if (to.type == 'group')
+      this.http_post('add2group', '_cid='+urlencode(cid)+'&_source='+urlencode(this.env.source)+'&_gid='+urlencode(to.id));
+    else if (to.id != this.env.source && cid && this.env.address_sources[to.id] && !this.env.address_sources[to.id].readonly)
+      this.http_post('copy', '_cid='+urlencode(cid)+'&_source='+urlencode(this.env.source)+'&_to='+urlencode(to.id));
     };
 
 
@@ -3462,7 +3514,7 @@ function rcube_webmail()
     {
     // exit if no mailbox specified or if selection is empty
     var selection = this.contact_list.get_selection();
-    if (!(selection.length || this.env.cid) || !confirm(this.get_label('deletecontactconfirm')))
+    if (!(selection.length || this.env.cid) || (!this.env.group && !confirm(this.get_label('deletecontactconfirm'))))
       return;
       
     var a_cids = new Array();
@@ -3490,7 +3542,11 @@ function rcube_webmail()
       qs += '&_search='+this.env.search_request;
 
     // send request to server
-    this.http_post('delete', '_cid='+urlencode(a_cids.join(','))+'&_source='+urlencode(this.env.source)+'&_from='+(this.env.action ? this.env.action : '')+qs);
+    if (this.env.group)
+      this.http_post('removefromgroup', '_cid='+urlencode(a_cids.join(','))+'&_source='+urlencode(this.env.source)+'&_gid='+urlencode(this.env.group)+qs);
+    else
+      this.http_post('delete', '_cid='+urlencode(a_cids.join(','))+'&_source='+urlencode(this.env.source)+'&_from='+(this.env.action ? this.env.action : '')+qs);
+      
     return true;
     };
 
@@ -3505,11 +3561,11 @@ function rcube_webmail()
 
       // cid change
       if (newcid) {
-	row.id = 'rcmrow' + newcid;
+        row.id = 'rcmrow' + newcid;
         this.contact_list.remove_row(cid);
         this.contact_list.init_row(row);
-	this.contact_list.selection[0] = newcid;
-	row.style.display = '';
+        this.contact_list.selection[0] = newcid;
+        ow.style.display = '';
       }
 
       return true;
@@ -3547,6 +3603,59 @@ function rcube_webmail()
     
     this.enable_command('export', (this.contact_list.rowcount > 0));
     };
+  
+  
+  this.add_contact_group = function()
+  {
+    if (!this.gui_objects.folderlist || !this.env.address_sources[this.env.source].groups)
+      return;
+      
+    if (!this.name_input) {
+      this.name_input = document.createElement('input');
+      this.name_input.type = 'text';
+      this.name_input.onkeypress = function(e){ return rcmail.add_input_keypress(e); };
+    
+      this.gui_objects.folderlist.parentNode.appendChild(this.name_input);
+    }
+    
+    this.name_input.select();
+  };
+  
+  // handler for keyboard events on the input field
+  this.add_input_keypress = function(e)
+  {
+    var key = rcube_event.get_keycode(e);
+
+    // enter
+    if (key == 13) {
+      var newname = this.name_input.value;
+      
+      if (newname) {
+        this.set_busy(true, 'loading');
+        this.http_post('create-group', '_source='+urlencode(this.env.source)+'&_name='+urlencode(newname), true);
+      }
+      return false;
+    }
+    // escape
+    else if (key == 27)
+      this.reset_add_input();
+      
+    return true;
+  };
+  
+  this.reset_add_input = function()
+  {
+    if (this.name_input) {
+      this.name_input.parentNode.removeChild(this.name_input);
+      this.name_input = null;
+    }
+  };
+  
+  // callback for creating a new contact group
+  this.insert_contact_group = function(prop)
+  {
+    this.reset_add_input();
+  }
 
 
   /*********************************************************/
@@ -4256,31 +4365,33 @@ function rcube_webmail()
     };
 
   // mark a mailbox as selected and set environment variable
-  this.select_folder = function(name, old)
+  this.select_folder = function(name, old, prefix)
   {
     if (this.gui_objects.folderlist)
     {
       var current_li, target_li;
       
-      if ((current_li = this.get_folder_li(old))) {
+      if ((current_li = this.get_folder_li(old, prefix))) {
         $(current_li).removeClass('selected').removeClass('unfocused');
       }
-      if ((target_li = this.get_folder_li(name))) {
+      if ((target_li = this.get_folder_li(name, prefix))) {
         $(target_li).removeClass('unfocused').addClass('selected');
       }
       
       // trigger event hook
-      this.triggerEvent('selectfolder', { folder:name, old:old });
+      this.triggerEvent('selectfolder', { folder:name, old:old, prefix:prefix });
     }
   };
 
   // helper method to find a folder list item
-  this.get_folder_li = function(name)
+  this.get_folder_li = function(name, prefix)
   {
+    if (!prefix)
+      prefix = 'rcmli';
     if (this.gui_objects.folderlist)
     {
       name = String(name).replace(this.identifier_expr, '_');
-      return document.getElementById('rcmli'+name);
+      return document.getElementById(prefix+name);
     }
 
     return null;
@@ -4713,8 +4824,11 @@ function rcube_webmail()
         else if (this.task == 'addressbook') {
           this.enable_command('export', (this.contact_list && this.contact_list.rowcount > 0));
           
-          if (response.action == 'list')
+          if (response.action == 'list') {
+            this.enable_command('add-group', this.env.address_sources[this.env.source].groups);
+            // disabeld for now: this.enable_command('rename-group', 'delete-group', this.env.address_sources[this.env.source].groups && this.env.group);
             this.triggerEvent('listupdate', { folder:this.env.source, rowcount:this.contact_list.rowcount });
+          }
         }
         break;
     }
diff --git a/program/localization/de_CH/labels.inc b/program/localization/de_CH/labels.inc
index cbc5b0898..29252aa30 100644
--- a/program/localization/de_CH/labels.inc
+++ b/program/localization/de_CH/labels.inc
@@ -214,10 +214,13 @@ $labels['contactsfromto'] = 'Kontakte $from bis $to von $count';
 $labels['print'] = 'Drucken';
 $labels['export'] = 'Exportieren';
 $labels['exportvcards'] = 'Kontakte im vCard-Format exportieren';
+$labels['newcontactgroup'] = 'Neue Adressgruppe erstellen';
+$labels['groupactions']   = 'Aktionen für Kontaktgruppen...';
 $labels['previouspage'] = 'Eine Seite zurück';
 $labels['firstpage'] = 'Erste Seite';
 $labels['nextpage'] = 'Nächste Seite';
 $labels['lastpage'] = 'Letzte Seite';
+$labels['group'] = 'Gruppe';
 $labels['groups'] = 'Gruppen';
 $labels['personaladrbook'] = 'Persönliches Adressbuch';
 $labels['import'] = 'Importieren';
diff --git a/program/localization/de_CH/messages.inc b/program/localization/de_CH/messages.inc
index 706a690e6..be61cc78d 100644
--- a/program/localization/de_CH/messages.inc
+++ b/program/localization/de_CH/messages.inc
@@ -93,6 +93,8 @@ $messages['addsubfolderhint'] = 'Wird als Unterordner des aktuell selektierten O
 $messages['forbiddencharacter'] = 'Der Ordnername enthält ein ungültiges Zeichen';
 $messages['selectimportfile'] = 'Bitte wählen Sie eine Datei zum Importieren aus';
 $messages['addresswriterror'] = 'Das gewählte Adressbuch kann nicht verändert werden';
+$messages['contactaddedtogroup'] = 'Kontakte wurden dieser Gruppe hinzugefügt';
+$messages['contactremovedfromgroup'] = 'Kontakte wurden aus dieser Gruppe entfernt';
 $messages['importwait'] = 'Daten werden importiert, bitte warten...';
 $messages['importerror'] = 'Import fehlgeschlagen! Die hochgeladene Datei ist nicht im vCard-Format.';
 $messages['importconfirm'] = '<b>Es wurden $inserted Adressen erfolgreich importiert und $skipped bestehende Einträge übersprungen</b>:<p><em>$names</em></p>';
diff --git a/program/localization/en_US/labels.inc b/program/localization/en_US/labels.inc
index b8c36ec87..10c04ec0f 100644
--- a/program/localization/en_US/labels.inc
+++ b/program/localization/en_US/labels.inc
@@ -258,12 +258,15 @@ $labels['contactsfromto'] = 'Contacts $from to $to of $count';
 $labels['print']          = 'Print';
 $labels['export']         = 'Export';
 $labels['exportvcards']   = 'Export contacts in vCard format';
+$labels['newcontactgroup'] = 'Create new contact group';
+$labels['groupactions']   = 'Actions for contact groups...';
 
 $labels['previouspage']   = 'Show previous set';
 $labels['firstpage']      = 'Show first set';
 $labels['nextpage']       = 'Show next set';
 $labels['lastpage']       = 'Show last set';
 
+$labels['group'] = 'Group';
 $labels['groups'] = 'Groups';
 $labels['personaladrbook'] = 'Personal Addresses';
 
diff --git a/program/localization/en_US/messages.inc b/program/localization/en_US/messages.inc
index ab24e070e..f87cfb579 100644
--- a/program/localization/en_US/messages.inc
+++ b/program/localization/en_US/messages.inc
@@ -95,6 +95,8 @@ $messages['addsubfolderhint'] = 'This folder will be created as subfolder of the
 $messages['forbiddencharacter'] = 'Folder name contains a forbidden character';
 $messages['selectimportfile'] = 'Please select a file to upload';
 $messages['addresswriterror'] = 'The selected address book is not writeable';
+$messages['contactaddedtogroup'] = 'Successfully added the contacts to this group';
+$messages['contactremovedfromgroup'] = 'Successfully remove contacts from this group';
 $messages['importwait'] = 'Importing, please wait...';
 $messages['importerror'] = 'Import failed! The uploaded file is not a valid vCard file.';
 $messages['importconfirm'] = '<b>Successfully imported $inserted contacts, $skipped existing entries skipped</b>:<p><em>$names</em></p>';
diff --git a/program/steps/addressbook/func.inc b/program/steps/addressbook/func.inc
index ca1fd03fc..ec0662b24 100644
--- a/program/steps/addressbook/func.inc
+++ b/program/steps/addressbook/func.inc
@@ -39,6 +39,9 @@ if (!empty($_GET['_page']))
   $CONTACTS->set_page(($_SESSION['page'] = intval($_GET['_page'])));
 else
   $CONTACTS->set_page(isset($_SESSION['page']) ?$_SESSION['page'] : 1);
+  
+if (!empty($_REQUEST['_gid']))
+  $CONTACTS->set_group(get_input_value('_gid', RCUBE_INPUT_GPC));
 
 // set message set for search result
 if (!empty($_REQUEST['_search']) && isset($_SESSION['search'][$_REQUEST['_search']]))
@@ -60,7 +63,7 @@ function rcmail_directory_list($attrib)
   $out = '';
   $local_id = '0';
   $current = get_input_value('_source', RCUBE_INPUT_GPC);
-  $line_templ = html::tag('li', array('id' => 'rcmli%s', 'class' => '%s'),
+  $line_templ = html::tag('li', array('id' => 'rcmli%s', 'class' => 'addressbook %s'),
     html::a(array('href' => '%s', 'onclick' => "return ".JS_OBJECT_NAME.".command('list','%s',this)"), '%s'));
 
   if (!$current && strtolower($RCMAIL->config->get('address_book_type', 'sql')) != 'ldap') {
@@ -79,6 +82,8 @@ function rcmail_directory_list($attrib)
     $out .= sprintf($line_templ, $dom_id, ($current == $id ? 'selected' : ''),
       Q(rcmail_url(null, array('_source' => $id))), $js_id, (!empty($source['name']) ? Q($source['name']) : Q($id)));
   }
+  
+  $out .= rcmail_contact_groups(array('items' => true));
 
   $OUTPUT->add_gui_object('folderlist', $attrib['id']);
   
@@ -86,6 +91,30 @@ function rcmail_directory_list($attrib)
 }
 
 
+function rcmail_contact_groups($attrib)
+{
+  global $CONTACTS, $OUTPUT;
+  
+  if (!$attrib['id'])
+    $attrib['id'] = 'rcmgroupslist';
+  
+  $groups = $CONTACTS->list_groups();
+  $line_templ = html::tag('li', array('id' => 'rcmliG%s', 'class' => 'contactgroup'),
+    html::a(array('href' => '#', 'onclick' => "return ".JS_OBJECT_NAME.".command('listgroup','%s',this)"), '%s'));
+
+  $jsdata = array();
+  foreach ($groups as $group) {
+    $out .= sprintf($line_templ, $group['ID'], $group['ID'], Q($group['name']));
+    $jsdata['G'.$group['ID']] = array('id' => $group['ID'], 'name' => $group['name'], 'type' => 'group');
+  }
+  
+  $OUTPUT->set_env('contactgroups', $jsdata);
+  //$OUTPUT->add_gui_object('groupslist', $attrib['id']);
+  
+  return $attrib['items'] ? $out : html::tag('ul', $attrib, $out, html::$common_attrib);
+}
+
+
 // return the message list as HTML table
 function rcmail_contacts_list($attrib)
   {
@@ -200,6 +229,7 @@ $OUTPUT->set_pagetitle(rcube_label('addressbook'));
 // register UI objects
 $OUTPUT->add_handlers(array(
   'directorylist' => 'rcmail_directory_list',
+//  'groupslist' => 'rcmail_contact_groups',
   'addresslist' => 'rcmail_contacts_list',
   'addressframe' => 'rcmail_contact_frame',
   'recordscountdisplay' => 'rcmail_rowcount_display',
diff --git a/program/steps/addressbook/groups.inc b/program/steps/addressbook/groups.inc
new file mode 100644
index 000000000..8c7aef64b
--- /dev/null
+++ b/program/steps/addressbook/groups.inc
@@ -0,0 +1,61 @@
+<?php
+
+/*
+ +-----------------------------------------------------------------------+
+ | program/steps/addressbook/groups.inc                                  |
+ |                                                                       |
+ | This file is part of the RoundCube Webmail client                     |
+ | Copyright (C) 2010, RoundCube Dev. - Switzerland                      |
+ | Licensed under the GNU GPL                                            |
+ |                                                                       |
+ | PURPOSE:                                                              |
+ |   Create/delete/rename contact groups and assign/remove contacts      |
+ |                                                                       |
+ +-----------------------------------------------------------------------+
+ | Author: Thomas Bruederli <roundcube@gmail.com>                        |
+ +-----------------------------------------------------------------------+
+
+ $Id$
+
+*/
+
+
+if ($CONTACTS->readonly || !$CONTACTS->groups) {
+  $OUTPUT->show_message('sourceisreadonly', 'warning');
+  $OUTPUT->send();
+}
+
+if ($RCMAIL->action == 'create-group') {
+  if (!empty($_POST['_name'])) {
+    $name = trim(get_input_value('_name', RCUBE_INPUT_POST));
+    $created = $CONTACTS->create_group($name);
+  }
+  
+  if ($created && $OUTPUT->ajax_call) {
+    $OUTPUT->command('insert_contact_group', $created);
+  }
+  else if (!$create) {
+    $OUTPUT->show_message('errorsaving', 'error');
+  }
+}
+
+else if ($RCMAIL->action == 'add2group') {
+  if (($gid = get_input_value('_gid', RCUBE_INPUT_POST)) && ($ids = get_input_value('_cid', RCUBE_INPUT_POST)))
+  if ($CONTACTS->add_to_group($gid, $ids))
+    $OUTPUT->show_message('contactaddedtogroup');
+  //else
+  //  $OUTPUT->show_message('erroraddingcontact', 'warning');
+}
+
+else if ($RCMAIL->action == 'removefromgroup') {
+  if (($gid = get_input_value('_gid', RCUBE_INPUT_POST)) && ($ids = get_input_value('_cid', RCUBE_INPUT_POST)))
+  if ($CONTACTS->remove_from_group($gid, $ids))
+    $OUTPUT->show_message('contactremovedfromgroup');
+  //else
+  //  $OUTPUT->show_message('erroraddingcontact', 'warning');
+}
+
+// send response
+$OUTPUT->send();
+
+?>
\ No newline at end of file
diff --git a/program/steps/mail/autocomplete.inc b/program/steps/mail/autocomplete.inc
index 06209c41b..1e56fb222 100644
--- a/program/steps/mail/autocomplete.inc
+++ b/program/steps/mail/autocomplete.inc
@@ -5,7 +5,7 @@
  | program/steps/mail/autocomplete.inc                                   |
  |                                                                       |
  | This file is part of the RoundCube Webmail client                     |
- | Copyright (C) 2008-2009, RoundCube Dev Team                           |
+ | Copyright (C) 2008-2010, RoundCube Dev Team                           |
  | Licensed under the GNU GPL                                            |
  |                                                                       |
  | PURPOSE:                                                              |
@@ -23,7 +23,7 @@ $MAXNUM = 15;
 $contacts = array();
 $book_types = (array) $RCMAIL->config->get('autocomplete_addressbooks', 'sql');
 
-if ($book_types && $search = get_input_value('_search', RCUBE_INPUT_POST, true)) {
+if ($book_types && $search = get_input_value('_search', RCUBE_INPUT_GPC, true)) {
 
   foreach ($book_types as $id) {
     $abook = $RCMAIL->get_address_book($id);
@@ -32,16 +32,42 @@ if ($book_types && $search = get_input_value('_search', RCUBE_INPUT_POST, true))
     if ($result = $abook->search(array('email','name'), $search)) {
       while ($sql_arr = $result->iterate()) {
           $contacts[] = format_email_recipient($sql_arr['email'], $sql_arr['name']);
-	  if (count($contacts) >= $MAXNUM)
+          if (count($contacts) >= $MAXNUM)
             break 2;
       }
     }
+    
+    // also list matching contact groups
+    if ($abook->groups) {
+      foreach ($abook->list_groups($search) as $group) {
+        $members = array();
+        $abook->reset();
+        $abook->set_group($group['ID']);
+        $result = $abook->list_records(array('email','name'));
+        while ($result && ($sql_arr = $result->iterate()))
+          $members[] = format_email_recipient($sql_arr['email'], $sql_arr['name']);
+        
+        if (count($members)) {
+          $contacts[] = array('name' => $group['name'] . ' (' . rcube_label('group') . ')', 'members' => $members);
+          if (count($contacts) >= $MAXNUM)
+            break;
+        }
+      }
+    }
   }
   
-  sort($contacts);
+  usort($contacts, 'contact_results_sort');
 }
 
 $OUTPUT->command('ksearch_query_results', $contacts, $search);
 $OUTPUT->send();
 
+
+function contact_results_sort($a, $b)
+{
+  $name_a = is_array($a) ? $a['name'] : $a;
+  $name_b = is_array($b) ? $b['name'] : $b;
+  return strcmp(trim($name_a, '" '), trim($name_b, '" '));
+}
+
 ?>
diff --git a/skins/default/addressbook.css b/skins/default/addressbook.css
index ce82a1594..456d137b1 100644
--- a/skins/default/addressbook.css
+++ b/skins/default/addressbook.css
@@ -4,7 +4,7 @@
 {
   position: absolute;
   top: 45px;
-  left: 205px;
+  left: 225px;
   height: 35px;
 }
 
@@ -76,8 +76,8 @@
 #abookcountbar
 {
   position: absolute;
-  bottom: 16px;
-  left: 200px;
+  bottom: 6px;
+  left: 225px;
   width: 240px;
   height: 20px;
   text-align: left;
@@ -94,22 +94,80 @@
   position: absolute;
   top: 85px;
   right: 20px;
-  bottom: 40px;
-  left: 205px;
+  bottom: 30px;
+  left: 225px;
 }
 
-#directorylist
+#directorylistbox
 {
   position: absolute;
   top: 85px;
-  bottom: 40px;
+  bottom: 30px;
   left: 20px;
-  width: 175px;
+  width: 195px;
   border: 1px solid #999999;
   background-color: #F9F9F9;
   overflow: hidden;
 }
 
+#directorylistwarp
+{
+  position: absolute;
+  top: 20px;
+  bottom: 22px;
+  left: 0;
+  right: 0;
+  overflow: auto;
+}
+
+#groups-title
+{
+  position: absolute;
+  top: 0;
+  left: 0;
+  right: 0;
+}
+
+#directorylistbox input
+{
+  display: absolute;
+  margin: 2px;
+}
+
+#directoylistbuttons
+{
+  display: block;
+  position: absolute;
+  bottom: 0px;
+  left: 0px;
+  right: 0px;
+  height: 22px;
+  border-top: 1px solid #999;
+  background: url('images/listheader.gif') top left repeat-x #CCC;
+}
+
+#directoylistbuttons a.button,
+#directoylistbuttons a.buttonPas
+{
+  display: block;
+  float: left;
+  width: 34px;
+  height: 22px;
+  padding: 0px;
+  margin: 0;
+  overflow: hidden;
+  background: url('images/icons/groupactions.png') 0 0 no-repeat transparent;
+  opacity: 0.99; /* this is needed to make buttons appear correctly in Chrome */
+}
+
+#directoylistbuttons a.groupactions {
+  background-position: 0 -26px;
+}
+
+#directoylistbuttons a.buttonPas {
+  opacity: 0.35;
+}
+
 #addresslist
 {
   position: absolute;
@@ -120,6 +178,11 @@
   overflow: auto;
 }
 
+#contactgroupslist
+{
+  border-top: 1px solid #999;
+}
+
 #importbox
 {
   position: absolute;
@@ -136,7 +199,7 @@
 #addresslist
 {
   left: 0px;
-  width: 340px;
+  width: 280px;
 }
 
 #importbox a
@@ -144,7 +207,7 @@
   color: blue;
 }
 
-#directorylist ul
+#directorylist
 {
   list-style: none;
   margin: 0;
@@ -152,23 +215,31 @@
   background-color: #FFFFFF;
 }
 
-#directorylist ul li
+#directorylist li
 {
+  display: block;
   font-size: 11px;
+  background: url(images/icons/folders.png) 5px -108px no-repeat;
   border-bottom: 1px solid #EBEBEB;
   white-space: nowrap;
 }
 
-#directorylist ul li a
+#directorylist li a
 {
+  cursor: default;
   display: block;
-  padding-left: 6px;
+  padding-left: 25px;
   padding-top: 2px;
   padding-bottom: 2px;
   text-decoration: none;
   white-space: nowrap;
 }
 
+#directorylist li.contactgroup
+{
+  background-position: 5px -144px;
+}
+
 #directorylist li.selected
 {
   background-color: #929292;
@@ -201,7 +272,7 @@
 {
   position: absolute;
   top: 0px;
-  left: 555px;
+  left: 290px;
   right: 0px;
   bottom: 0px;
   border: 1px solid #999999;
diff --git a/skins/default/functions.js b/skins/default/functions.js
index ca4c6694b..6d99e921d 100644
--- a/skins/default/functions.js
+++ b/skins/default/functions.js
@@ -126,37 +126,52 @@ function rcmail_init_compose_form()
 
 function rcube_mail_ui()
 {
-  this.markmenu = $('#markmessagemenu');
-  this.searchmenu = $('#searchmenu');
-  this.messagemenu = $('#messagemenu');
-  this.listmenu = $('#listmenu');
-  this.dragmessagemenu = $('#dragmessagemenu');
+  this.popupmenus = {
+    markmenu:'markmessagemenu',
+    searchmenu:'searchmenu',
+    messagemenu:'messagemenu',
+    listmenu:'listmenu',
+    dragmessagemenu:'dragmessagemenu',
+    groupmenu:'groupoptionsmenu'
+  };
+  
+  var obj;
+  for (var k in this.popupmenus) {
+    obj = $('#'+this.popupmenus[k])
+    if (obj.length)
+      this[k] = obj;
+  }
 }
 
 rcube_mail_ui.prototype = {
 
-show_markmenu: function(show)
+show_popupmenu: function(obj, refname, show, above)
 {
   if (typeof show == 'undefined')
-    show = this.markmenu.is(':visible') ? false : true;
+    show = obj.is(':visible') ? false : true;
   
-  var ref = rcube_find_object('markreadbutton');
-  if (show && ref)
-    this.markmenu.css({ left:ref.offsetLeft, top:(ref.offsetTop + ref.offsetHeight) });
+  var ref = rcube_find_object(refname);
+  if (show && ref) {
+    var pos = $(ref).offset();
+    obj.css({ left:pos.left, top:(pos.top + (above ? -obj.height() : ref.offsetHeight)) });
+  }
   
-  this.markmenu[show?'show':'hide']();
+  obj[show?'show':'hide']();
+},
+
+show_markmenu: function(show)
+{
+  this.show_popupmenu(this.markmenu, 'markreadbutton', show);
 },
 
 show_messagemenu: function(show)
 {
-  if (typeof show == 'undefined')
-    show = this.messagemenu.is(':visible') ? false : true;
+  this.show_popupmenu(this.messagemenu, 'messagemenulink', show);
+},
 
-  var ref = rcube_find_object('messagemenulink');
-  if (show && ref)
-    this.messagemenu.css({ left:ref.offsetLeft, top:(ref.offsetTop + ref.offsetHeight) });
-
-  this.messagemenu[show?'show':'hide']();
+show_groupmenu: function(show)
+{
+  this.show_popupmenu(this.groupmenu, 'groupactionslink', show, true);
 },
 
 show_searchmenu: function(show)
@@ -267,6 +282,8 @@ body_mouseup: function(evt, p)
     this.show_messagemenu(false);
   else if (this.dragmessagemenu && this.dragmessagemenu.is(':visible') && !rcube_mouse_is_over(evt, rcube_find_object('dragmessagemenu')))
     this.dragmessagemenu.hide();
+  else if (this.groupmenu &&  this.groupmenu.is(':visible') && target != rcube_find_object('groupactionslink'))
+    this.show_groupmenu(false);
   else if (this.listmenu && this.listmenu.is(':visible') && target != rcube_find_object('listmenulink')) {
     var menu = rcube_find_object('listmenu');
     while (target.parentNode) {
@@ -290,16 +307,10 @@ body_mouseup: function(evt, p)
 body_keypress: function(evt, p)
 {
   if (rcube_event.get_keycode(evt) == 27) {
-    if (this.markmenu && this.markmenu.is(':visible'))
-      this.show_markmenu(false);
-    if (this.searchmenu && this.searchmenu.is(':visible'))
-      this.show_searchmenu(false);
-    if (this.messagemenu && this.messagemenu.is(':visible'))
-      this.show_messagemenu(false);
-    if (this.listmenu && this.listmenu.is(':visible'))
-      this.show_listmenu(false);
-    if (this.dragmessagemenu && this.dragmessagemenu.is(':visible'))
-      this.dragmessagemenu.hide();
+    for (var k in this.popupmenus) {
+      if (this[k] && this[k].is(':visible'))
+        this[k].hide();
+    }
   }
 }
 
@@ -312,7 +323,9 @@ function rcube_init_mail_ui()
   rcmail_ui = new rcube_mail_ui();
   rcube_event.add_listener({ object:rcmail_ui, method:'body_mouseup', event:'mouseup' });
   rcube_event.add_listener({ object:rcmail_ui, method:'body_keypress', event:'keypress' });
-  rcmail.addEventListener('menu-open', 'open_listmenu', rcmail_ui);
-  rcmail.addEventListener('menu-save', 'save_listmenu', rcmail_ui);
-  rcmail.gui_object('message_dragmenu', 'dragmessagemenu');
+  if (rcmail.env.task == 'mail') {
+    rcmail.addEventListener('menu-open', 'open_listmenu', rcmail_ui);
+    rcmail.addEventListener('menu-save', 'save_listmenu', rcmail_ui);
+    rcmail.gui_object('message_dragmenu', 'dragmessagemenu');
+  }
 }
diff --git a/skins/default/images/icons/folders.png b/skins/default/images/icons/folders.png
index dcd688425..5013318f8 100644
Binary files a/skins/default/images/icons/folders.png and b/skins/default/images/icons/folders.png differ
diff --git a/skins/default/images/icons/groupactions.png b/skins/default/images/icons/groupactions.png
new file mode 100644
index 000000000..2e9c5f101
Binary files /dev/null and b/skins/default/images/icons/groupactions.png differ
diff --git a/skins/default/images/listheader.gif b/skins/default/images/listheader.gif
index e7f501537..2f5c7f862 100644
Binary files a/skins/default/images/listheader.gif and b/skins/default/images/listheader.gif differ
diff --git a/skins/default/mail.css b/skins/default/mail.css
index 7b233f861..a3bb4ab9b 100644
--- a/skins/default/mail.css
+++ b/skins/default/mail.css
@@ -686,7 +686,7 @@ body.messagelist
 #messagelist thead tr td.sortedASC,
 #messagelist thead tr td.sortedDESC
 {
-  background-position: 0 -20px;
+  background-position: 0 -22px;
 }
 
 #messagelist thead tr td.sortedASC a
diff --git a/skins/default/templates/addressbook.html b/skins/default/templates/addressbook.html
index fe9019208..f47931502 100644
--- a/skins/default/templates/addressbook.html
+++ b/skins/default/templates/addressbook.html
@@ -4,27 +4,16 @@
 <title><roundcube:object name="pagetitle" /></title>
 <roundcube:include file="/includes/links.html" />
 <script type="text/javascript" src="/splitter.js"></script>
-
+<script type="text/javascript" src="/functions.js"></script>
 <style type="text/css">
-<roundcube:if condition="count(env:address_sources) &lt;= 1" />
-#abookcountbar { left: 20px; }
-#addressscreen { left: 20px; 
-<roundcube:exp expression="browser:ie ? 'width:expression((parseInt(document.documentElement.clientWidth)-40)+\\'px\\');' : ''" />
-}
 #addresslist { width: <roundcube:exp expression="!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter-5 : 245" />px; }
 #contacts-box { left: <roundcube:exp expression="!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter+5 : 255" />px;
-<roundcube:exp expression="browser:ie ? ('width:expression((parseInt(this.parentNode.offsetWidth)-'.(!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter+5 : 255).')+\\'px\\');') : ''" />
+	<roundcube:exp expression="browser:ie ? ('width:expression((parseInt(this.parentNode.offsetWidth)-'.(!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter+5 : 255).')+\\'px\\');') : ''" />
 }
-<roundcube:else />
-#addresslist { width: <roundcube:exp expression="!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter-5 : 245" />px; }
-#contacts-box { left: <roundcube:exp expression="!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter+5 : 255" />px;
-<roundcube:exp expression="browser:ie ? ('width:expression((parseInt(this.parentNode.offsetWidth)-'.(!empty(cookie:addressviewsplitter) ? cookie:addressviewsplitter+5 : 255).')+\\'px\\');') : ''" />
-}
-<roundcube:endif />
 </style>
 
 </head>
-<body>
+<body onload="rcube_init_mail_ui()">
 
 <roundcube:include file="/includes/taskbar.html" />
 <roundcube:include file="/includes/header.html" />
@@ -45,12 +34,24 @@
 <roundcube:button command="reset-search" id="searchreset" image="/images/icons/reset.gif" title="resetsearch" />
 </div>
 
-<roundcube:if condition="count(env:address_sources) &gt; 1" />
-<div id="directorylist">
+<div id="directorylistbox">
 <div id="groups-title" class="boxtitle"><roundcube:label name="groups" /></div>
-<roundcube:object name="directorylist" id="directories-list" />
+<div id="directorylistwarp">
+  <roundcube:object name="directorylist" id="directorylist" />
+  <roundcube:object name="groupslist" id="contactgroupslist" />
+</div>
+<div id="directoylistbuttons">
+  <roundcube:button command="add-group" type="link" title="newcontactgroup" class="buttonPas addgroup" classAct="button addgroup" content=" " />
+  <roundcube:button name="groupactions" id="groupactionslink" type="link" title="groupactions" class="button groupactions" onclick="rcmail_ui.show_groupmenu();return false" content=" " />
+</div>
+</div>
+
+<div id="groupoptionsmenu" class="popupmenu">
+  <ul>
+    <li><roundcube:button command="rename-group" label="rename" classAct="active" /></li>
+    <li><roundcube:button command="delete-group" label="delete" classAct="active" /></li>
+  </ul>
 </div>
-<roundcube:endif />
 
 <div id="addressscreen">
 
diff --git a/skins/default/templates/mail.html b/skins/default/templates/mail.html
index a1084b096..9ade5641f 100644
--- a/skins/default/templates/mail.html
+++ b/skins/default/templates/mail.html
@@ -119,6 +119,7 @@
 <roundcube:container name="toolbar" id="messagetoolbar" />
 <roundcube:button name="markreadbutton" id="markreadbutton" type="link" class="button markmessage" title="markmessages" onclick="rcmail_ui.show_markmenu();return false" content=" " />
 <roundcube:button name="messagemenulink" id="messagemenulink" type="link" class="button messagemenu" title="messageactions" onclick="rcmail_ui.show_messagemenu();return false" content=" " />
+</div>
 
 <div id="markmessagemenu" class="popupmenu">
   <ul class="toolbarmenu">
@@ -132,8 +133,6 @@
 
 <roundcube:include file="/includes/messagemenu.html" />
 
-</div>
-
 <div id="searchmenu" class="popupmenu">
   <ul class="toolbarmenu">
     <li><input type="checkbox" name="s_mods[]" value="subject" id="s_mod_subject" onclick="rcmail_ui.set_searchmod(this)" /><label for="s_mod_subject"><roundcube:label name="subject" /></label></li>