diff --git a/core/java/android/app/SearchDialog.java b/core/java/android/app/SearchDialog.java
index d3c29cfb01d49..2d2e7104a917b 100644
--- a/core/java/android/app/SearchDialog.java
+++ b/core/java/android/app/SearchDialog.java
@@ -17,7 +17,6 @@
 package android.app;
 
 import static android.app.SuggestionsAdapter.getColumnString;
-
 import android.content.ActivityNotFoundException;
 import android.content.BroadcastReceiver;
 import android.content.ComponentName;
@@ -26,8 +25,8 @@ import android.content.Intent;
 import android.content.IntentFilter;
 import android.content.pm.ActivityInfo;
 import android.content.pm.PackageManager;
-import android.content.pm.ResolveInfo;
 import android.content.pm.PackageManager.NameNotFoundException;
+import android.content.pm.ResolveInfo;
 import android.content.res.Configuration;
 import android.content.res.Resources;
 import android.database.Cursor;
@@ -54,14 +53,14 @@ import android.view.Window;
 import android.view.WindowManager;
 import android.view.inputmethod.InputMethodManager;
 import android.widget.AdapterView;
+import android.widget.AdapterView.OnItemClickListener;
+import android.widget.AdapterView.OnItemSelectedListener;
 import android.widget.AutoCompleteTextView;
 import android.widget.Button;
 import android.widget.ImageButton;
 import android.widget.ImageView;
 import android.widget.ListView;
 import android.widget.TextView;
-import android.widget.AdapterView.OnItemClickListener;
-import android.widget.AdapterView.OnItemSelectedListener;
 
 import java.util.ArrayList;
 import java.util.WeakHashMap;
@@ -163,7 +162,10 @@ public class SearchDialog extends Dialog implements OnItemClickListener, OnItemS
         setContentView(com.android.internal.R.layout.search_bar);
 
         theWindow.setLayout(ViewGroup.LayoutParams.FILL_PARENT,
-                ViewGroup.LayoutParams.WRAP_CONTENT);
+                // taking up the whole window (even when transparent) is less than ideal,
+                // but necessary to show the popup window until the window manager supports
+                // having windows anchored by their parent but not clipped by them.
+                ViewGroup.LayoutParams.FILL_PARENT);
         WindowManager.LayoutParams lp = theWindow.getAttributes();
         lp.softInputMode = WindowManager.LayoutParams.SOFT_INPUT_STATE_VISIBLE;
         theWindow.setAttributes(lp);
@@ -1367,27 +1369,28 @@ public class SearchDialog extends Dialog implements OnItemClickListener, OnItemS
         public boolean enoughToFilter() {
             return mThreshold <= 0 || super.enoughToFilter();
         }
-        
+
         /**
          * {@link AutoCompleteTextView#onKeyPreIme(int, KeyEvent)}) dismisses the drop-down on BACK,
          * so we must override this method to modify the BACK behavior.
          */
         @Override
         public boolean onKeyPreIme(int keyCode, KeyEvent event) {
-            return mSearchDialog.handleBackKey(keyCode, event);
+            if (keyCode == KeyEvent.KEYCODE_BACK && event.getAction() == KeyEvent.ACTION_DOWN) {
+                if (mSearchDialog.backToPreviousComponent()) {
+                    return true;
+                }
+                return false; // will dismiss soft keyboard if necessary
+            }
+            return false;
         }
     }
     
     protected boolean handleBackKey(int keyCode, KeyEvent event) {
         if (keyCode == KeyEvent.KEYCODE_BACK && event.getAction() == KeyEvent.ACTION_DOWN) {
-            mSearchAutoComplete.dismissDropDown();
             if (backToPreviousComponent()) {
                 return true;
             }
-            if (!mSearchAutoComplete.isEmpty()) {
-                mSearchAutoComplete.clear();
-                return true;
-            }
             cancel();
             return true;
         }
diff --git a/core/java/android/widget/AutoCompleteTextView.java b/core/java/android/widget/AutoCompleteTextView.java
index e3186b0470785..1e122a72baa12 100644
--- a/core/java/android/widget/AutoCompleteTextView.java
+++ b/core/java/android/widget/AutoCompleteTextView.java
@@ -127,6 +127,8 @@ public class AutoCompleteTextView extends EditText implements Filter.FilterListe
     // The widget is attached to a window when mAttachCount > 0
     private int mAttachCount;
 
+    private AutoCompleteTextView.PassThroughClickListener mPassThroughClickListener;
+
     public AutoCompleteTextView(Context context) {
         this(context, null);
     }
@@ -186,6 +188,28 @@ public class AutoCompleteTextView extends EditText implements Filter.FilterListe
         setFocusable(true);
 
         addTextChangedListener(new MyWatcher());
+
+        mPassThroughClickListener = new PassThroughClickListener();
+        super.setOnClickListener(mPassThroughClickListener);
+    }
+
+    @Override
+    public void setOnClickListener(OnClickListener listener) {
+        mPassThroughClickListener.mWrapped = listener;
+    }
+
+    /**
+     * Private hook into the on click event, dispatched from {@link PassThroughClickListener}
+     */
+    private void onClickImpl() {
+        // if drop down should always visible, bring it back in front of the soft
+        // keyboard when the user touches the text field
+        if (mDropDownAlwaysVisible
+                && mPopup.isShowing()
+                && mPopup.getInputMethodMode() == PopupWindow.INPUT_METHOD_NOT_NEEDED) {
+            mPopup.setInputMethodMode(PopupWindow.INPUT_METHOD_NEEDED);
+            mPopup.update();
+        }
     }
 
     /**
@@ -1050,7 +1074,10 @@ public class AutoCompleteTextView extends EditText implements Filter.FilterListe
             }
             mPopup.setHeight(height);
             mPopup.setInputMethodMode(PopupWindow.INPUT_METHOD_NEEDED);
-            mPopup.setOutsideTouchable(true);
+            
+            // use outside touchable to dismiss drop down when touching outside of it, so
+            // only set this if the dropdown is not always visible
+            mPopup.setOutsideTouchable(!mDropDownAlwaysVisible);
             mPopup.setTouchInterceptor(new PopupTouchIntercepter());
             mPopup.showAsDropDown(getDropDownAnchorView(),
                     mDropDownHorizontalOffset, mDropDownVerticalOffset);
@@ -1367,4 +1394,21 @@ public class AutoCompleteTextView extends EditText implements Filter.FilterListe
          */
         CharSequence fixText(CharSequence invalidText);
     }
+
+    /**
+     * Allows us a private hook into the on click event without preventing users from setting
+     * their own click listener.
+     */
+    private class PassThroughClickListener implements OnClickListener {
+
+        private View.OnClickListener mWrapped;
+
+        /** {@inheritDoc} */
+        public void onClick(View v) {
+            onClickImpl();
+
+            if (mWrapped != null) mWrapped.onClick(v);
+        }
+    }
+
 }
diff --git a/core/res/res/layout/search_bar.xml b/core/res/res/layout/search_bar.xml
index bdf057485b96c..5db0737e3c6b0 100644
--- a/core/res/res/layout/search_bar.xml
+++ b/core/res/res/layout/search_bar.xml
@@ -22,11 +22,9 @@
     android:id="@+id/search_bar"
     android:layout_width="fill_parent"
     android:layout_height="fill_parent"
-    android:paddingBottom="200dip"
-    android:orientation="vertical" 
+    android:orientation="vertical"
     android:focusable="true"
     android:descendantFocusability="afterDescendants">
-    <!-- android:paddingBottom="200dip"  TODO MUST FIX - it's a hack to get the popup to show -->
 
     <!-- Outer layout defines the entire search bar at the top of the screen -->
     <LinearLayout