diff --git a/packages/SystemUI/res/layout-sw600dp/carrier_label.xml b/packages/SystemUI/res/layout-sw600dp/carrier_label.xml
new file mode 100644
index 0000000000000..b33caf868ea4a
--- /dev/null
+++ b/packages/SystemUI/res/layout-sw600dp/carrier_label.xml
@@ -0,0 +1,23 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+/*
+** Copyright 2012, The Android Open Source Project
+**
+** Licensed under the Apache License, Version 2.0 (the "License"); 
+** you may not use this file except in compliance with the License. 
+** You may obtain a copy of the License at 
+**
+**     http://www.apache.org/licenses/LICENSE-2.0 
+**
+** Unless required by applicable law or agreed to in writing, software 
+** distributed under the License is distributed on an "AS IS" BASIS, 
+** WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. 
+** See the License for the specific language governing permissions and 
+** limitations under the License.
+*/
+-->
+
+<Space
+    xmlns:android="http://schemas.android.com/apk/res/android"    
+    android:visibility="gone"
+    />
\ No newline at end of file
diff --git a/packages/SystemUI/res/layout/carrier_label.xml b/packages/SystemUI/res/layout/carrier_label.xml
new file mode 100644
index 0000000000000..41a1fff295347
--- /dev/null
+++ b/packages/SystemUI/res/layout/carrier_label.xml
@@ -0,0 +1,30 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+/*
+** Copyright 2012, The Android Open Source Project
+**
+** Licensed under the Apache License, Version 2.0 (the "License"); 
+** you may not use this file except in compliance with the License. 
+** You may obtain a copy of the License at 
+**
+**     http://www.apache.org/licenses/LICENSE-2.0 
+**
+** Unless required by applicable law or agreed to in writing, software 
+** distributed under the License is distributed on an "AS IS" BASIS, 
+** WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. 
+** See the License for the specific language governing permissions and 
+** limitations under the License.
+*/
+-->
+
+<TextView
+    xmlns:android="http://schemas.android.com/apk/res/android"    
+    android:id="@+id/carrier_label"
+    android:textAppearance="@style/TextAppearance.StatusBar.Expanded.Network"
+    android:layout_height="@dimen/carrier_label_height"
+    android:layout_width="match_parent"
+    android:layout_gravity="bottom"
+    android:layout_marginBottom="@dimen/close_handle_height"
+    android:gravity="center"
+    android:visibility="invisible"
+    />
\ No newline at end of file
diff --git a/packages/SystemUI/res/layout/quick_settings.xml b/packages/SystemUI/res/layout/quick_settings.xml
index c4b881e5b7da1..8c6258a5cbd42 100644
--- a/packages/SystemUI/res/layout/quick_settings.xml
+++ b/packages/SystemUI/res/layout/quick_settings.xml
@@ -19,6 +19,7 @@
     android:layout_width="match_parent"
     android:layout_height="wrap_content"
     android:id="@+id/settings_panel"
+    android:background="#80000080"
     >
     <ImageView
         android:layout_width="match_parent"
@@ -26,7 +27,6 @@
         android:scaleType="centerInside"
         android:src="@drawable/qs_coming_soon"
         android:padding="4dp"
-        android:background="#80000080"
         />
     <LinearLayout android:id="@+id/handle"
         android:layout_width="match_parent"
diff --git a/packages/SystemUI/res/layout/status_bar_expanded.xml b/packages/SystemUI/res/layout/status_bar_expanded.xml
index 8eff1f4557049..f2e83d866081a 100644
--- a/packages/SystemUI/res/layout/status_bar_expanded.xml
+++ b/packages/SystemUI/res/layout/status_bar_expanded.xml
@@ -29,15 +29,10 @@
     android:layout_marginLeft="@dimen/notification_panel_margin_left"
     >
 
-    <TextView
-        android:id="@+id/carrier_label"
-        android:textAppearance="@style/TextAppearance.StatusBar.Expanded.Network"
+    <include
+        layout="@layout/carrier_label"
         android:layout_height="@dimen/carrier_label_height"
         android:layout_width="match_parent"
-        android:layout_gravity="bottom"
-        android:layout_marginBottom="@dimen/close_handle_height"
-        android:gravity="center"
-        android:visibility="invisible"
         />
 
     <LinearLayout
diff --git a/packages/SystemUI/res/layout/super_status_bar.xml b/packages/SystemUI/res/layout/super_status_bar.xml
index ad6b8f48e2a40..5e0d1e824b232 100644
--- a/packages/SystemUI/res/layout/super_status_bar.xml
+++ b/packages/SystemUI/res/layout/super_status_bar.xml
@@ -40,11 +40,11 @@
         >
         <include layout="@layout/status_bar_expanded"
             android:layout_width="match_parent"
-            android:layout_height="wrap_content"
+            android:layout_height="match_parent"
             />
         <include layout="@layout/quick_settings"
             android:layout_width="match_parent"
-            android:layout_height="wrap_content"
+            android:layout_height="match_parent"
             />
     </com.android.systemui.statusbar.phone.PanelHolder>
 
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelView.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelView.java
index 33f467f157ead..2f551e101c17d 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelView.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PanelView.java
@@ -5,7 +5,7 @@ import android.animation.TimeAnimator.TimeListener;
 import android.content.Context;
 import android.content.res.Resources;
 import android.util.AttributeSet;
-import android.util.Log;
+import android.util.Slog;
 import android.view.MotionEvent;
 import android.view.VelocityTracker;
 import android.view.View;
@@ -18,7 +18,7 @@ public class PanelView extends FrameLayout {
     public static final String TAG = PanelView.class.getSimpleName();
     public final void LOG(String fmt, Object... args) {
         if (!DEBUG) return;
-        Log.v(TAG, (mViewName != null ? (mViewName + ": ") : "") + String.format(fmt, args));
+        Slog.v(TAG, (mViewName != null ? (mViewName + ": ") : "") + String.format(fmt, args));
     }
 
     public static final boolean BRAKES = false;
@@ -175,6 +175,12 @@ public class PanelView extends FrameLayout {
         event.offsetLocation(-deltaX, -deltaY);
     }
 
+    // Pass all touches along to the handle, allowing the user to drag the panel closed from its interior
+    @Override
+    public boolean onTouchEvent(MotionEvent event) {
+        return mHandleView.dispatchTouchEvent(event);
+    }
+
     @Override
     protected void onFinishInflate() {
         super.onFinishInflate();
diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBar.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBar.java
index 8cdc51ae169d1..8f2bae5baf594 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBar.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/PhoneStatusBar.java
@@ -109,8 +109,6 @@ public class PhoneStatusBar extends BaseStatusBar {
     public static final String ACTION_STATUSBAR_START
             = "com.android.internal.policy.statusbar.START";
 
-    private static final boolean SHOW_CARRIER_LABEL = false; // XXX: doesn't work with rubberband panels right now
-
     private static final int MSG_OPEN_NOTIFICATION_PANEL = 1000;
     private static final int MSG_CLOSE_NOTIFICATION_PANEL = 1001;
     // 1020-1030 reserved for BaseStatusBar
@@ -189,6 +187,9 @@ public class PhoneStatusBar extends BaseStatusBar {
     private boolean mCarrierLabelVisible = false;
     private int mCarrierLabelHeight;
     private TextView mEmergencyCallLabel;
+    private int mNotificationHeaderHeight;
+
+    private boolean mShowCarrierInPanel = false;
 
     // position
     int[] mPositionTmp = new int[2];
@@ -310,14 +311,6 @@ public class PhoneStatusBar extends BaseStatusBar {
         mStatusBarView.setPanelHolder(holder);
 
         mNotificationPanel = (PanelView) mStatusBarWindow.findViewById(R.id.notification_panel);
-        // don't allow clicks on the panel to pass through to the background where they will cause the panel to close
-        View.OnTouchListener clickStopper = new View.OnTouchListener() {
-            @Override
-            public boolean onTouch(View v, MotionEvent event) {
-                return true;
-            }
-        };
-        mNotificationPanel.setOnTouchListener(clickStopper);
         mNotificationPanelIsFullScreenWidth =
             (mNotificationPanel.getLayoutParams().width == ViewGroup.LayoutParams.MATCH_PARENT);
         mNotificationPanel.setSystemUiVisibility(
@@ -326,7 +319,6 @@ public class PhoneStatusBar extends BaseStatusBar {
 
         // quick settings (WIP)
         mSettingsPanel = (PanelView) mStatusBarWindow.findViewById(R.id.settings_panel);
-        mSettingsPanel.setOnTouchListener(clickStopper);
 
         if (!ActivityManager.isHighEndGfx()) {
             mStatusBarWindow.setBackground(null);
@@ -419,8 +411,10 @@ public class PhoneStatusBar extends BaseStatusBar {
                 }});
         }
 
-        if (SHOW_CARRIER_LABEL) {
-            mCarrierLabel = (TextView)mStatusBarWindow.findViewById(R.id.carrier_label);
+        mCarrierLabel = (TextView)mStatusBarWindow.findViewById(R.id.carrier_label);
+        mShowCarrierInPanel = (mCarrierLabel != null);
+        Slog.v(TAG, "carrierlabel=" + mCarrierLabel + " show=" + mShowCarrierInPanel);
+        if (mShowCarrierInPanel) {
             mCarrierLabel.setVisibility(mCarrierLabelVisible ? View.VISIBLE : View.INVISIBLE);
 
             // for mobile devices, we always show mobile connection info here (SPN/PLMN)
@@ -867,7 +861,7 @@ public class PhoneStatusBar extends BaseStatusBar {
     }
 
     protected void updateCarrierLabelVisibility(boolean force) {
-        if (!SHOW_CARRIER_LABEL) return;
+        if (!mShowCarrierInPanel) return;
         // The idea here is to only show the carrier label when there is enough room to see it, 
         // i.e. when there aren't enough notifications to fill the panel.
         if (DEBUG) {
@@ -878,7 +872,7 @@ public class PhoneStatusBar extends BaseStatusBar {
         final boolean emergencyCallsShownElsewhere = mEmergencyCallLabel != null;
         final boolean makeVisible =
             !(emergencyCallsShownElsewhere && mNetworkController.isEmergencyOnly())
-            && mPile.getHeight() < (mScrollView.getHeight() - mCarrierLabelHeight);
+            && mPile.getHeight() < (mNotificationPanel.getHeight() - mCarrierLabelHeight - mNotificationHeaderHeight);
         
         if (force || mCarrierLabelVisible != makeVisible) {
             mCarrierLabelVisible = makeVisible;
@@ -1631,6 +1625,8 @@ public class PhoneStatusBar extends BaseStatusBar {
         lp.gravity = mSettingsPanelGravity;
         lp.rightMargin = mNotificationPanelMarginPx;
         mSettingsPanel.setLayoutParams(lp);
+
+        updateCarrierLabelVisibility(false);
     }
 
     // called by makeStatusbar and also by PhoneStatusBarView
@@ -1905,6 +1901,7 @@ public class PhoneStatusBar extends BaseStatusBar {
             + res.getDimensionPixelSize(R.dimen.close_handle_underlap);
 
         mCarrierLabelHeight = res.getDimensionPixelSize(R.dimen.carrier_label_height);
+        mNotificationHeaderHeight = res.getDimensionPixelSize(R.dimen.notification_panel_header_height);
 
         if (false) Slog.v(TAG, "updateResources");
     }