diff --git a/include/osgUI/Dialog b/include/osgUI/Dialog
index cfd5aab26..a4dee645f 100644
--- a/include/osgUI/Dialog
+++ b/include/osgUI/Dialog
@@ -16,7 +16,6 @@
 
 #include <osgUI/Widget>
 #include <osgText/Text>
-#include <osg/PositionAttitudeTransform>
 
 namespace osgUI
 {
@@ -44,7 +43,7 @@ protected:
 
     std::string                         _title;
 
-    osg::ref_ptr<osg::PositionAttitudeTransform> _transform;
+    osg::ref_ptr<osg::Group>            _group;
 
     // implementation detail
     osg::ref_ptr<osgText::Text>         _titleDrawable;
diff --git a/src/osgUI/Dialog.cpp b/src/osgUI/Dialog.cpp
index f9348bfab..d3d61d227 100644
--- a/src/osgUI/Dialog.cpp
+++ b/src/osgUI/Dialog.cpp
@@ -59,17 +59,17 @@ bool Dialog::handleImplementation(osgGA::EventVisitor* ev, osgGA::Event* event)
 
 void Dialog::close()
 {
-    if (_transform.valid()) _transform->setNodeMask(0x0);
+    setVisible(false);
 }
 
 void Dialog::open()
 {
-    if (_transform.valid()) _transform->setNodeMask(0xffffffff);
+    setVisible(true);
 }
 
 void Dialog::createGraphicsImplementation()
 {
-    _transform = new osg::PositionAttitudeTransform;
+    _group = new osg::Group;
 
     Style* style = (getStyle()!=0) ? getStyle() : Style::instance().get();
 
@@ -79,8 +79,8 @@ void Dialog::createGraphicsImplementation()
     osg::Vec4 dialogBackgroundColor(0.8,0.8,0.8,1.0);
     osg::Vec4 dialogTitleBackgroundColor(0.5,0.5,1.0,1.0);
 
-    _transform->addChild( style->createPanel(_extents, dialogBackgroundColor) );
-    _transform->addChild( style->createPanel(titleBarExents, dialogTitleBackgroundColor) );
+    _group->addChild( style->createPanel(_extents, dialogBackgroundColor) );
+    _group->addChild( style->createPanel(titleBarExents, dialogTitleBackgroundColor) );
 
     osg::BoundingBox dialogWithTileExtents(_extents);
     dialogWithTileExtents.expandBy(titleBarExents);
@@ -92,10 +92,10 @@ void Dialog::createGraphicsImplementation()
     osg::ref_ptr<Node> node = style->createText(titleBarExents, getAlignmentSettings(), getTextSettings(), _title);
     _titleDrawable = dynamic_cast<osgText::Text*>(node.get());
     _titleDrawable->setDataVariance(osg::Object::DYNAMIC);
-    _transform->addChild(_titleDrawable.get());
+    _group->addChild(_titleDrawable.get());
 
     style->setupDialogStateSet(getOrCreateStateSet());
     style->setupClipStateSet(dialogWithTileExtents, getOrCreateStateSet());
 
-    setGraphicsSubgraph(_transform.get());
+    setGraphicsSubgraph(_group.get());
 }
diff --git a/src/osgUI/Popup.cpp b/src/osgUI/Popup.cpp
index 4c6f64739..6533691c4 100644
--- a/src/osgUI/Popup.cpp
+++ b/src/osgUI/Popup.cpp
@@ -61,12 +61,12 @@ bool Popup::handleImplementation(osgGA::EventVisitor* ev, osgGA::Event* event)
 
 void Popup::close()
 {
-    if (_transform.valid()) _transform->setNodeMask(0x0);
+    setVisible(false);
 }
 
 void Popup::open()
 {
-    if (_transform.valid()) _transform->setNodeMask(0xffffffff);
+    setVisible(true);
 }
 
 void Popup::leaveImplementation()
diff --git a/src/osgUI/Widget.cpp b/src/osgUI/Widget.cpp
index a4dabc95f..86986bbf8 100644
--- a/src/osgUI/Widget.cpp
+++ b/src/osgUI/Widget.cpp
@@ -198,34 +198,46 @@ void Widget::traverseImplementation(osg::NodeVisitor& nv)
     osgGA::EventVisitor* ev = dynamic_cast<osgGA::EventVisitor*>(&nv);
     if (ev)
     {
-
-        updateFocus(nv);
-
-        // OSG_NOTICE<<"EventTraversal getHasEventFocus()="<<getHasEventFocus()<<std::endl;
-
-        if (getHasEventFocus())
+        if (_visible && _enabled)
         {
-            // signify that event has been taken by widget with focus
-            ev->setEventHandled(true);
 
-            osgGA::EventQueue::Events& events = ev->getEvents();
-            for(osgGA::EventQueue::Events::iterator itr = events.begin();
-                itr != events.end();
-                ++itr)
+            updateFocus(nv);
+
+            // OSG_NOTICE<<"EventTraversal getHasEventFocus()="<<getHasEventFocus()<<std::endl;
+
+            if (getHasEventFocus())
             {
-                if (handle(ev, itr->get()))
+                // signify that event has been taken by widget with focus
+                ev->setEventHandled(true);
+
+                osgGA::EventQueue::Events& events = ev->getEvents();
+                for(osgGA::EventQueue::Events::iterator itr = events.begin();
+                    itr != events.end();
+                    ++itr)
                 {
-                    (*itr)->setHandled(true);
+                    if (handle(ev, itr->get()))
+                    {
+                        (*itr)->setHandled(true);
+                    }
                 }
             }
-        }
 
-        osg::Group::traverse(nv);
+            osg::Group::traverse(nv);
+        }
+    }
+
+    else if (nv.getVisitorType()==osg::NodeVisitor::UPDATE_VISITOR ||
+             nv.getVisitorType()==osg::NodeVisitor::CULL_VISITOR)
+    {
+        if (_visible)
+        {
+            if (_graphicsSubgraph.valid()) _graphicsSubgraph->accept(nv);
+            osg::Group::traverse(nv);
+        }
     }
     else
     {
         if (_graphicsSubgraph.valid()) _graphicsSubgraph->accept(nv);
-
         osg::Group::traverse(nv);
     }
 }