diff --git a/OpenSim/Region/Environment/Scenes/SceneObjectGroup.Inventory.cs b/OpenSim/Region/Environment/Scenes/SceneObjectGroup.Inventory.cs
index 3f14fff00a..495b604aae 100644
--- a/OpenSim/Region/Environment/Scenes/SceneObjectGroup.Inventory.cs
+++ b/OpenSim/Region/Environment/Scenes/SceneObjectGroup.Inventory.cs
@@ -51,6 +51,7 @@ namespace OpenSim.Region.Environment.Scenes
             if (part != null)
             {
                 part.StartScript(itemID);
+               
             }
             else
             {
@@ -119,6 +120,7 @@ namespace OpenSim.Region.Environment.Scenes
             if (part != null)
             {
                 part.StopScript(itemID);
+                RemoveScriptEvents(itemID);
             }
             else
             {
diff --git a/OpenSim/Region/Environment/Scenes/SceneObjectGroup.cs b/OpenSim/Region/Environment/Scenes/SceneObjectGroup.cs
index 1f38e4f498..7abaaee2f3 100644
--- a/OpenSim/Region/Environment/Scenes/SceneObjectGroup.cs
+++ b/OpenSim/Region/Environment/Scenes/SceneObjectGroup.cs
@@ -41,6 +41,40 @@ using OpenSim.Region.Physics.Manager;
 
 namespace OpenSim.Region.Environment.Scenes
 {
+
+    [Flags]
+    public enum scriptEvents : int
+    {
+        None = 0,
+        attach = 1,
+        collision = 15,
+        collision_end = 32,
+        collision_start = 64,
+        control = 128,
+        dataserver = 256,
+        email = 512,
+        http_response = 1024,
+        land_collision = 2048,
+        land_collision_end = 4096,
+        land_collision_start = 8192,
+        link_message = 16384,
+        listen = 32768,
+        money = 65536,
+        moving_end = 131072,
+        moving_start = 262144,
+        not_at_rot_target = 524288,
+        not_at_target = 1048576,
+        remote_data = 8388608,
+        run_time_permissions = 268435456,
+        state_entry = 1073741824,
+        state_exit = 2,
+        timer = 4,
+        touch = 8,
+        touch_end = 536870912,
+        touch_start = 2097152,
+        object_rez = 4194304
+    }
+
     public delegate void PrimCountTaintedDelegate();
 
     public partial class SceneObjectGroup : EntityBase
@@ -67,6 +101,9 @@ namespace OpenSim.Region.Environment.Scenes
         private LLVector3 lastPhysGroupPos;
         private LLQuaternion lastPhysGroupRot;
 
+        private Dictionary<LLUUID, scriptEvents> m_scriptEvents = new Dictionary<LLUUID, scriptEvents>();
+        private scriptEvents m_aggregateScriptEvents = scriptEvents.None;
+
         #region Properties
 
         /// <summary>
@@ -2042,6 +2079,104 @@ namespace OpenSim.Region.Environment.Scenes
             d.AddActiveScripts(count);
         }
 
+        public void RemoveScriptEvents(LLUUID scriptid)
+        {
+            lock (m_scriptEvents)
+            {
+                if (m_scriptEvents.ContainsKey(scriptid))
+                {
+                    scriptEvents oldparts = scriptEvents.None;
+                    oldparts = (scriptEvents)m_scriptEvents[scriptid];
+
+                    // remove values from aggregated script events
+                    m_aggregateScriptEvents &= ~oldparts;
+                    m_scriptEvents.Remove(scriptid);
+                }
+
+            }
+            aggregateScriptEvents();
+        }
+
+        public void SetScriptEvents(LLUUID scriptid, int events)
+        {
+
+            scriptEvents oldparts = scriptEvents.None;
+            lock (m_scriptEvents)
+            {
+                if (m_scriptEvents.ContainsKey(scriptid))
+                {
+                    oldparts = (scriptEvents)m_scriptEvents[scriptid];
+
+                    // remove values from aggregated script events
+                    m_aggregateScriptEvents &= ~oldparts;
+                    m_scriptEvents[scriptid] = (scriptEvents)events;
+                }
+                else
+                {
+                    m_scriptEvents.Add(scriptid, (scriptEvents)events);
+                }
+
+            }
+
+            aggregateScriptEvents();
+        }
+        public void aggregateScriptEvents()
+        {
+            // Aggregate script events
+            lock (m_scriptEvents)
+            {
+                foreach (scriptEvents s in m_scriptEvents.Values)
+                {
+                    m_aggregateScriptEvents |= s;
+                }
+            }
+            uint objectflagupdate = m_rootPart.ObjectFlags;
+
+            if (
+                ((m_aggregateScriptEvents & scriptEvents.touch) != 0) ||
+                ((m_aggregateScriptEvents & scriptEvents.touch_end) != 0) ||
+                ((m_aggregateScriptEvents & scriptEvents.touch_start) != 0)
+                )
+            {
+                objectflagupdate |= (uint)LLObject.ObjectFlags.Touch;
+            }
+            else
+            {
+                objectflagupdate &= ~(uint)LLObject.ObjectFlags.Touch;
+            }
+
+            if ((m_aggregateScriptEvents & scriptEvents.money) != 0)
+            {
+                objectflagupdate |= (uint)LLObject.ObjectFlags.Money;
+            }
+            else
+            {
+                objectflagupdate &= ~(uint)LLObject.ObjectFlags.Money;
+            }
+
+            if (
+                ((m_aggregateScriptEvents & scriptEvents.collision) != 0) ||
+                ((m_aggregateScriptEvents & scriptEvents.collision_end) != 0) ||
+                ((m_aggregateScriptEvents & scriptEvents.collision_start) != 0)
+                )
+            {
+                // subscribe to physics updates.
+            }
+            else
+            {
+                // unsubscribe to physics updates.
+            }
+            lock (m_parts)
+            {
+                foreach (SceneObjectPart part in m_parts.Values)
+                {
+                    part.ObjectFlags = objectflagupdate;
+                }
+            }
+            ScheduleGroupForFullUpdate();
+
+        }
+
         public override void SetText(string text, Vector3 color, double alpha)
         {
             Color = Color.FromArgb(0xff - (int) (alpha*0xff),
diff --git a/OpenSim/Region/Environment/Scenes/SceneObjectPart.Inventory.cs b/OpenSim/Region/Environment/Scenes/SceneObjectPart.Inventory.cs
index 16da516cbf..8ce71c494c 100644
--- a/OpenSim/Region/Environment/Scenes/SceneObjectPart.Inventory.cs
+++ b/OpenSim/Region/Environment/Scenes/SceneObjectPart.Inventory.cs
@@ -147,6 +147,7 @@ namespace OpenSim.Region.Environment.Scenes
                     if (10 == item.Type)
                     {
                         StopScript(item.ItemID);
+                        m_parentGroup.RemoveScriptEvents(item.ItemID);
                     }
                 }
             }
diff --git a/OpenSim/Region/Environment/Scenes/SceneObjectPart.cs b/OpenSim/Region/Environment/Scenes/SceneObjectPart.cs
index b42375f871..61d10c9587 100644
--- a/OpenSim/Region/Environment/Scenes/SceneObjectPart.cs
+++ b/OpenSim/Region/Environment/Scenes/SceneObjectPart.cs
@@ -83,6 +83,7 @@ namespace OpenSim.Region.Environment.Scenes
         SCALE = 0x40
     }
 
+    
     [Serializable]
     public partial class SceneObjectPart : IScriptHost, ISerializable
     {
@@ -729,8 +730,7 @@ namespace OpenSim.Region.Environment.Scenes
             m_folderID = LLUUID.Random();
 
             Flags = 0;
-            Flags |= LLObject.ObjectFlags.Touch |
-                       LLObject.ObjectFlags.AllowInventoryDrop |
+            Flags |=   LLObject.ObjectFlags.AllowInventoryDrop |
                        LLObject.ObjectFlags.CreateSelected;
 
 
@@ -774,7 +774,7 @@ namespace OpenSim.Region.Environment.Scenes
             
             // Since we don't store script state, this is only a 'temporary' objectflag now
             // If the object is scripted, the script will get loaded and this will be set again
-            ObjectFlags &= ~(uint)LLObject.ObjectFlags.Scripted; 
+            ObjectFlags &= ~(uint)(LLObject.ObjectFlags.Scripted | LLObject.ObjectFlags.Touch); 
             
             TrimPermissions();
             // ApplyPhysics();
@@ -2312,6 +2312,14 @@ namespace OpenSim.Region.Environment.Scenes
             SetText( text );
         }
 
+        public void setScriptEvents(LLUUID scriptID, int events)
+        {
+            if (m_parentGroup != null)
+            {
+                m_parentGroup.SetScriptEvents(scriptID, events);
+            }
+        }
+
         protected SceneObjectPart(SerializationInfo info, StreamingContext context)
         {
             //System.Console.WriteLine("SceneObjectPart Deserialize BGN");
diff --git a/OpenSim/Region/ScriptEngine/Common/BuiltIn_Commands_BaseClass.cs b/OpenSim/Region/ScriptEngine/Common/BuiltIn_Commands_BaseClass.cs
index cb4ca3917d..b6468c2b66 100644
--- a/OpenSim/Region/ScriptEngine/Common/BuiltIn_Commands_BaseClass.cs
+++ b/OpenSim/Region/ScriptEngine/Common/BuiltIn_Commands_BaseClass.cs
@@ -1990,6 +1990,10 @@ namespace OpenSim.Region.ScriptEngine.Common
             return m_LSL_Functions.osDrawImage(drawList, width, height, imageUrl);
         }
 
+        public void osSetStateEvents(int events)
+        {
+            m_LSL_Functions.osSetStateEvents(events);
+        }
 
         //
 
diff --git a/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands.cs b/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands.cs
index 26e56c7cb2..4192d40ade 100644
--- a/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands.cs
+++ b/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands.cs
@@ -5597,6 +5597,11 @@ namespace OpenSim.Region.ScriptEngine.Common
            return drawList;
         }
 
+        public void osSetStateEvents(int events)
+        {
+            m_host.setScriptEvents(m_itemID,events);
+        }
+
         private void NotImplemented(string command)
         {
             if (throwErrorOnNotImplemented)
diff --git a/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands_Interface.cs b/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands_Interface.cs
index 4e632efccd..205e90836e 100644
--- a/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands_Interface.cs
+++ b/OpenSim/Region/ScriptEngine/Common/LSL_BuiltIn_Commands_Interface.cs
@@ -669,5 +669,6 @@ namespace OpenSim.Region.ScriptEngine.Common
         string osSetPenSize(string drawList, int penSize);
         string osSetPenColour(string drawList, string colour);
         string osDrawImage(string drawList, int width, int height, string imageUrl);
+        void osSetStateEvents(int events);
     }
 }
diff --git a/OpenSim/Region/ScriptEngine/DotNetEngine/Compiler/LSL/LSL2CSConverter.cs b/OpenSim/Region/ScriptEngine/DotNetEngine/Compiler/LSL/LSL2CSConverter.cs
index 9f753df65f..8d85b690d3 100644
--- a/OpenSim/Region/ScriptEngine/DotNetEngine/Compiler/LSL/LSL2CSConverter.cs
+++ b/OpenSim/Region/ScriptEngine/DotNetEngine/Compiler/LSL/LSL2CSConverter.cs
@@ -32,6 +32,7 @@ using System;
 
 namespace OpenSim.Region.ScriptEngine.DotNetEngine.Compiler.LSL
 {
+    
     public class LSL2CSConverter
     {
 
@@ -41,6 +42,7 @@ namespace OpenSim.Region.ScriptEngine.DotNetEngine.Compiler.LSL
         //private Regex rnw = new Regex(@"[a-zA-Z0-9_\-]", RegexOptions.Compiled);
         private Dictionary<string, string> dataTypes = new Dictionary<string, string>();
         private Dictionary<string, string> quotes = new Dictionary<string, string>();
+        private Dictionary<string, scriptEvents> state_events = new Dictionary<string, scriptEvents>();
 
         public LSL2CSConverter()
         {
@@ -294,8 +296,63 @@ namespace OpenSim.Region.ScriptEngine.DotNetEngine.Compiler.LSL
             }
 
 
+            // Finds out which events are in the script and writes a method call with the events in each state_entry event
+
+            // Note the (?:)? block optional, and not returning a group.   Less greedy then .*
+
+            string[] eventmatches = new string[0];
+            //Regex stateevents = new Regex(@"(public void )([^_]+)(_event_)([^\(]+)[\(\)]+\s+[^\{]\{");
+            eventmatches = Regex.Split(Script, @"public void\s([^_]+)_event_([^\(]+)\((?:[a-zA-Z0-9\s_,\.\-]+)?\)+\s+[^\{]\{", RegexOptions.Compiled | RegexOptions.Multiline | RegexOptions.Singleline | RegexOptions.IgnoreCase);
+            for (int pos = 0; pos<eventmatches.GetUpperBound(0);pos++)
+            {
+                pos++; // garbage
+
+                string statea = eventmatches[pos]; pos++;
+                string eventa = eventmatches[pos];
+                scriptEvents storedEventsForState = scriptEvents.None;
+                if (state_events.ContainsKey(statea))
+                {
+                    storedEventsForState = state_events[statea];
+                    state_events[statea] |= convertnametoFlag(eventa);
+                }
+                else
+                {
+                    state_events.Add(statea, convertnametoFlag(eventa));
+                }
+                System.Console.WriteLine("State:" + statea + ", event: " + eventa);
+            }
+            System.Console.WriteLine("Matches:" + eventmatches.GetUpperBound(0));
             // Add namespace, class name and inheritance
 
+            // Looking *ONLY* for state entry events
+            string scriptCopy = "";
+            
+            //Only match State_Entry events now
+            // Note the whole regex is a group, then we have the state this entry belongs to.
+            eventmatches = Regex.Split(Script, @"(public void\s([^_]+)_event_state_entry[\(\)]+\s+[^\{]\{)", RegexOptions.Compiled | RegexOptions.Multiline | RegexOptions.Singleline | RegexOptions.IgnoreCase);
+            int endloop = eventmatches.GetUpperBound(0);
+            for (int pos = 0; pos < endloop; pos++)
+            {
+                // Returns text before state entry match,
+                scriptCopy += eventmatches[pos]; pos++;
+
+                // Returns text of state entry match, 
+                scriptCopy += eventmatches[pos]; pos++;
+                
+                // Returns which state we're matching and writes a method call to the end of the above state_entry
+                scriptCopy += "\r\n\t\tosSetStateEvents((int)" + (int)state_events[eventmatches[pos]] + ");"; //pos++;
+                
+                // adds the remainder of the script.
+                if ((pos + 1) == endloop)
+                {
+                    pos++;
+                    scriptCopy += eventmatches[pos++];
+                }
+                
+            }
+            // save modified script.
+            Script = scriptCopy;
+            //System.Console.WriteLine(Script);
             Return = String.Empty;// +
                      //"using OpenSim.Region.ScriptEngine.Common; using System.Collections.Generic;";
   
@@ -309,10 +366,151 @@ namespace OpenSim.Region.ScriptEngine.DotNetEngine.Compiler.LSL
             Return += Script;
             //Return += "} }\r\n";
 
-
+            state_events.Clear();
             quotes.Clear();
 
             return Return;
         }
+        public scriptEvents convertnametoFlag(string eventname)
+        {
+            switch (eventname)
+            {
+                case "attach":
+                    return scriptEvents.attach;
+                    //break;
+               // case "at_rot_target":
+                    //return (long)scriptEvents.at_rot_target;
+                    //break;
+                //case "at_target":
+                    //return (long)scriptEvents.at_target;
+                    //break;
+                //case "changed":
+                    //return (long)scriptEvents.changed;
+                    //break;
+                case "collision":
+                    return scriptEvents.collision;
+                   // break;
+                case "collision_end":
+                    return scriptEvents.collision_end;
+                    //break;
+                case "collision_start":
+                    return scriptEvents.collision_start;
+                   // break;
+                case "control":
+                    return scriptEvents.control;
+                    //break;
+                case "dataserver":
+                    return scriptEvents.dataserver;
+                   // break;
+                case "email":
+                    return scriptEvents.email;
+                   // break;
+                case "http_response":
+                    return scriptEvents.http_response;
+                   // break;
+                case "land_collision":
+                    return scriptEvents.land_collision;
+                   // break;
+                case "land_collision_end":
+                    return scriptEvents.land_collision_end;
+                   // break;
+                case "land_collision_start":
+                    return scriptEvents.land_collision_start;
+                   // break;
+                case "link_message":
+                    return scriptEvents.link_message;
+                  //  break;
+                case "listen":
+                    return scriptEvents.listen;
+                  //  break;
+                case "money":
+                    return scriptEvents.money;
+                   // break;
+                case "moving_end":
+                    return scriptEvents.moving_end;
+                   // break;
+                case "moving_start":
+                    return scriptEvents.moving_start;
+                   // break;
+                case "not_at_rot_target":
+                    return scriptEvents.not_at_rot_target;
+                   // break;
+                case "not_at_target":
+                    return scriptEvents.not_at_target;
+                  //  break;
+               // case "no_sensor":
+                    //return (long)scriptEvents.no_sensor;
+                    //break;
+                //case "on_rez":
+                    //return (long)scriptEvents.on_rez;
+                  //  break;
+                case "remote_data":
+                    return scriptEvents.remote_data;
+                   // break;
+                case "run_time_permissions":
+                    return scriptEvents.run_time_permissions;
+                   // break;
+                //case "sensor":
+                    //return (long)scriptEvents.sensor;
+                  //  break;
+                case "state_entry":
+                    return scriptEvents.state_entry;
+                   // break;
+                case "state_exit":
+                    return scriptEvents.state_exit;
+                   // break;
+                case "timer":
+                    return scriptEvents.timer;
+                   // break;
+                case "touch":
+                    return scriptEvents.touch;
+                   // break;
+                case "touch_end":
+                    return scriptEvents.touch_end;
+                   // break;
+                case "touch_start":
+                    return scriptEvents.touch_start;
+                   // break;
+                case "object_rez":
+                    return scriptEvents.object_rez;
+                default:
+                    return 0;
+                    //break;
+            }
+            //return 0;
+        }
+    }
+
+    [Flags]
+    public enum scriptEvents : int
+    {
+        None = 0,
+        attach = 1,
+        collision = 15,
+        collision_end = 32,
+        collision_start = 64,
+        control = 128,
+        dataserver = 256,
+        email = 512,
+        http_response = 1024,
+        land_collision = 2048,
+        land_collision_end = 4096,
+        land_collision_start = 8192,
+        link_message = 16384,
+        listen = 32768,
+        money = 65536,
+        moving_end = 131072,
+        moving_start = 262144,
+        not_at_rot_target = 524288,
+        not_at_target = 1048576,
+        remote_data = 8388608,
+        run_time_permissions = 268435456,
+        state_entry = 1073741824,
+        state_exit = 2,
+        timer = 4,
+        touch = 8,
+        touch_end = 536870912,
+        touch_start = 2097152,
+        object_rez = 4194304
     }
 }
\ No newline at end of file