Index: source/blender/include/BSE_view.h
===================================================================
--- source/blender/include/BSE_view.h	(revision 11838)
+++ source/blender/include/BSE_view.h	(working copy)
@@ -76,6 +76,7 @@
 void calctrackballvecfirst(struct rcti *area, short *mval, float *vec);
 void calctrackballvec(struct rcti *area, short *mval, float *vec);
 void viewmove(int mode);
+void view_zoom_mouseloc(float dfac, short *mouseloc);
 
 int get_view3d_viewplane(int winxi, int winyi, rctf *viewplane, float *clipsta, float *clipend, float *pixsize);
 void setwinmatrixview3d(int winx, int winy, struct rctf *rect);
Index: source/blender/src/toets.c
===================================================================
--- source/blender/src/toets.c	(revision 11838)
+++ source/blender/src/toets.c	(working copy)
@@ -108,6 +108,9 @@
 
 #include "BIF_poseobject.h"
 
+#define VIEW_ZOOM_OUT_FACTOR (1.15f)
+#define VIEW_ZOOM_IN_FACTOR (1.0f/VIEW_ZOOM_OUT_FACTOR)
+
 /* ------------------------------------------------------------------------- */
 
 static int is_an_active_object(void *ob) {
@@ -155,6 +158,7 @@
 	float phi, si, q1[4], vec[3];
 	static int perspo=1;
 	int preview3d_event= 1;
+	short mouseloc[2];
 	
 	float new_dist, orig_ofs[3];
 	
@@ -243,14 +247,20 @@
 			if(G.vd->persp==2) {
 				G.vd->camzoom= MAX2(-30, G.vd->camzoom-5);
 			}
-			else if(G.vd->dist<10.0*G.vd->far) G.vd->dist*=1.2f;
+			else if(G.vd->dist<10.0*G.vd->far) {
+				getmouseco_areawin(mouseloc);
+				view_zoom_mouseloc(VIEW_ZOOM_OUT_FACTOR, mouseloc);
+			}
 			if(G.vd->persp!=1) preview3d_event= 0;
 		}
 		else if(event==PADPLUSKEY) {
 			if(G.vd->persp==2) {
 				G.vd->camzoom= MIN2(300, G.vd->camzoom+5);
 			}
-			else if(G.vd->dist> 0.001*G.vd->grid) G.vd->dist*=.83333f;
+			else if(G.vd->dist> 0.001*G.vd->grid) {
+				getmouseco_areawin(mouseloc);
+				view_zoom_mouseloc(VIEW_ZOOM_IN_FACTOR, mouseloc);
+			}
 			if(G.vd->persp!=1) preview3d_event= 0;
 		}
 		else if(event==PAD5) {
Index: source/blender/src/view.c
===================================================================
--- source/blender/src/view.c	(revision 11838)
+++ source/blender/src/view.c	(working copy)
@@ -538,7 +538,7 @@
 	float reverse, oldquat[4], q1[4], si, phi, dist0;
 	float ofs[3], obofs[3]= {0.0f, 0.0f, 0.0f};
 	int firsttime=1;
-	short mvalball[2], mval[2], mvalo[2];
+	short mvalball[2], mval[2], mvalo[2], mval_area[2];
 	short use_sel = 0;
 	short preview3d_event= 1;
 	
@@ -556,6 +556,7 @@
 	
 	QUATCOPY(oldquat, G.vd->viewquat);
 	
+	getmouseco_areawin(mval_area);	/* for zoom to mouse loc */
 	getmouseco_sc(mvalo);		/* work with screen coordinates because of trackball function */
 	mvalball[0]= mvalo[0];			/* needed for turntable to work */
 	mvalball[1]= mvalo[1];
@@ -728,9 +729,10 @@
 				}
 			}
 			else if(mode==2) {
+				float zfac=1.0;
 				if(U.viewzoom==USER_ZOOM_CONT) {
 					// oldstyle zoom
-					G.vd->dist*= 1.0+(float)(mvalo[0]-mval[0]+mvalo[1]-mval[1])/1000.0;
+					zfac = 1.0+(float)(mvalo[0]-mval[0]+mvalo[1]-mval[1])/1000.0;
 				}
 				else if(U.viewzoom==USER_ZOOM_SCALE) {
 					int ctr[2], len1, len2;
@@ -742,14 +744,17 @@
 					len1 = (int)sqrt((ctr[0] - mval[0])*(ctr[0] - mval[0]) + (ctr[1] - mval[1])*(ctr[1] - mval[1])) + 5;
 					len2 = (int)sqrt((ctr[0] - mvalo[0])*(ctr[0] - mvalo[0]) + (ctr[1] - mvalo[1])*(ctr[1] - mvalo[1])) + 5;
 					
-					G.vd->dist= dist0 * ((float)len2/len1);
+					zfac = dist0 * ((float)len2/len1) / G.vd->dist;
 				}
 				else {	/* USER_ZOOM_DOLLY */
 					float len1 = (curarea->winrct.ymax - mval[1]) + 5;
 					float len2 = (curarea->winrct.ymax - mvalo[1]) + 5;
-					
-					G.vd->dist= dist0 * (2.0*((len2/len1)-1.0) + 1.0);
+					zfac = dist0 * (2.0*((len2/len1)-1.0) + 1.0) / G.vd->dist;
 				}
+
+				if(zfac != 1.0 && zfac*G.vd->dist > 0.001*G.vd->grid && 
+					zfac*G.vd->dist < 10.0*G.vd->far)
+					view_zoom_mouseloc(zfac, mval_area);
 				
 				/* these limits are in toets.c too */
 				if(G.vd->dist<0.001*G.vd->grid) G.vd->dist= 0.001*G.vd->grid;
@@ -799,7 +804,51 @@
 		BIF_view3d_previewrender_signal(curarea, PR_PROJECTED);
 
 }
+ 
+void view_zoom_mouseloc(float dfac, short *mouseloc)
+{
+	//if(U.uiflag & USER_MOUSEPOSDOLLY) {
+	if (1) {
+		short vb[2];
+		float dvec[3];
+		float tvec[3];
+		float tpos[3];
+		float new_dist;
 
+		/* find the current window width and height */
+		vb[0] = G.vd->area->winx;
+		vb[1] = G.vd->area->winy;
+		
+		tpos[0] = -G.vd->ofs[0];
+		tpos[1] = -G.vd->ofs[1];
+		tpos[2] = -G.vd->ofs[2];
+
+		/* Project cursor position into 3D space */
+		initgrabz(tpos[0], tpos[1], tpos[2]);
+		window_to_3d(dvec, mouseloc[0]-vb[0]/2, mouseloc[1]-vb[1]/2);
+
+		/* Calculate view target position for dolly */
+		tvec[0] = -(tpos[0] + dvec[0]);
+		tvec[1] = -(tpos[1] + dvec[1]);
+		tvec[2] = -(tpos[2] + dvec[2]);
+
+		/* Offset to target position and dolly */
+		new_dist = G.vd->dist * dfac;
+		
+		VECCOPY(G.vd->ofs, tvec);
+		G.vd->dist = new_dist;
+		
+		/* Calculate final offset */
+		dvec[0] = tvec[0] + dvec[0] * dfac;
+		dvec[1] = tvec[1] + dvec[1] * dfac;
+		dvec[2] = tvec[2] + dvec[2] * dfac;
+		
+		VECCOPY(G.vd->ofs, dvec);
+	} else {
+		G.vd->dist *= dfac;
+	}
+}
+
 /* Gets the lens and clipping values from a camera of lamp type object */
 void object_view_settings(Object *ob, float *lens, float *clipsta, float *clipend)
 {