Index: release/scripts/startup/bl_ui/properties_data_empty.py
===================================================================
--- release/scripts/startup/bl_ui/properties_data_empty.py	(revision 36543)
+++ release/scripts/startup/bl_ui/properties_data_empty.py	(working copy)
@@ -39,7 +39,21 @@
         ob = context.object
 
         layout.prop(ob, "empty_draw_type", text="Display")
+        layout.template_ID(ob, "data", open="image.open", unlink="image.unlink")
+        # layout.template_image(ob, "data", None)
+
+        if not ob.data:
+            layout.prop(ob, "empty_draw_type", text="Display")
+
         layout.prop(ob, "empty_draw_size", text="Size")
 
+        if ob.data:
+            row = layout.row(align = True)
+            row.prop(ob, "color", text="Transparency", index = 3, slider=True)
+            row = layout.row(align = True)
+            row.prop(ob, "origin_offset", text="X", index = 0)
+            row.prop(ob, "origin_offset", text="Y", index = 1)
+
+
 if __name__ == "__main__":  # only for live edit.
     bpy.utils.register_module(__name__)
Index: source/blender/makesdna/DNA_object_types.h
===================================================================
--- source/blender/makesdna/DNA_object_types.h	(revision 36543)
+++ source/blender/makesdna/DNA_object_types.h	(working copy)
@@ -259,6 +259,9 @@
 	ListBase gpulamp;		/* runtime, for lamps only */
 	ListBase pc_ids;
 	ListBase *duplilist;	/* for temporary dupli list storage, only for use by RNA API */
+	
+	float origin_offset[2];		/* offset for image empties */
+	char pad3[8];
 } Object;
 
 /* Warning, this is not used anymore because hooks are now modifiers */
Index: source/blender/makesrna/intern/rna_ui_api.c
===================================================================
--- source/blender/makesrna/intern/rna_ui_api.c	(revision 36543)
+++ source/blender/makesrna/intern/rna_ui_api.c	(working copy)
@@ -389,7 +389,7 @@
 	RNA_def_function_flag(func, FUNC_USE_CONTEXT);
 	api_ui_item_rna_common(func);
 	parm= RNA_def_pointer(func, "image_user", "ImageUser", "", "");
-	RNA_def_property_flag(parm, PROP_REQUIRED|PROP_RNAPTR);
+	RNA_def_property_flag(parm, PROP_REQUIRED|PROP_RNAPTR|PROP_NEVER_NULL);
 	RNA_def_boolean(func, "compact", 0, "", "Use more compact layout.");
 
 	func= RNA_def_function(srna, "template_list", "uiTemplateList");
Index: source/blender/makesrna/intern/rna_object.c
===================================================================
--- source/blender/makesrna/intern/rna_object.c	(revision 36543)
+++ source/blender/makesrna/intern/rna_object.c	(working copy)
@@ -307,22 +307,26 @@
 	WM_main_add_notifier(NC_SCENE|ND_LAYER_CONTENT, scene);
 }
 
-static int rna_Object_data_editable(PointerRNA *ptr)
-{
-	Object *ob= (Object*)ptr->data;
-
-	return (ob->type == OB_EMPTY)? 0: PROP_EDITABLE;
-}
-
 static void rna_Object_data_set(PointerRNA *ptr, PointerRNA value)
 {
 	Object *ob= (Object*)ptr->data;
 	ID *id= value.data;
 
-	if(ob->type == OB_EMPTY || id == NULL || ob->mode & OB_MODE_EDIT)
+	if (id == NULL || ob->mode & OB_MODE_EDIT)
 		return;
-	
-	if(ob->type == OB_MESH) {
+
+	if (ob->type == OB_EMPTY) {
+		if(ob->data) {
+			id_us_min((ID*)ob->data);
+			ob->data = NULL;
+		}
+
+		if (id && GS(id->name) == ID_IM) {
+			id_us_plus(id);
+			ob->data = id;
+		}
+	}
+	else if(ob->type == OB_MESH) {
 		set_mesh(ob, (Mesh*)id);
 	}
 	else {
@@ -346,6 +350,7 @@
 	Object *ob= (Object*)ptr->data;
 
 	switch(ob->type) {
+		case OB_EMPTY: return &RNA_Image;
 		case OB_MESH: return &RNA_Mesh;
 		case OB_CURVE: return &RNA_Curve;
 		case OB_SURF: return &RNA_Curve;
@@ -1758,7 +1763,6 @@
 	prop= RNA_def_property(srna, "data", PROP_POINTER, PROP_NONE);
 	RNA_def_property_struct_type(prop, "ID");
 	RNA_def_property_pointer_funcs(prop, NULL, "rna_Object_data_set", "rna_Object_data_typef", NULL);
-	RNA_def_property_editable_func(prop, "rna_Object_data_editable");
 	RNA_def_property_flag(prop, PROP_EDITABLE|PROP_NEVER_UNLINK);
 	RNA_def_property_ui_text(prop, "Data", "Object data");
 	RNA_def_property_update(prop, 0, "rna_Object_internal_update_data");
@@ -2043,6 +2047,12 @@
 	RNA_def_property_ui_text(prop, "Empty Display Size", "Size of display for empties in the viewport");
 	RNA_def_property_update(prop, NC_OBJECT|ND_DRAW, NULL);
 
+	prop= RNA_def_property(srna, "origin_offset", PROP_FLOAT, PROP_DISTANCE);
+	RNA_def_property_float_sdna(prop, NULL, "origin_offset");
+	RNA_def_property_ui_text(prop, "Origin Offset", "Origin offset distance");
+	RNA_def_property_ui_range(prop, -FLT_MAX, FLT_MAX, 0.1f, 2);
+	RNA_def_property_update(prop, NC_OBJECT|ND_DRAW, NULL);
+	
 	/* render */
 	prop= RNA_def_property(srna, "pass_index", PROP_INT, PROP_UNSIGNED);
 	RNA_def_property_int_sdna(prop, NULL, "index");
Index: source/blender/editors/space_view3d/view3d_ops.c
===================================================================
--- source/blender/editors/space_view3d/view3d_ops.c	(revision 36543)
+++ source/blender/editors/space_view3d/view3d_ops.c	(working copy)
@@ -306,4 +306,3 @@
 	viewmove_modal_keymap(keyconf);
 	viewzoom_modal_keymap(keyconf);
 }
-
Index: source/blender/editors/space_view3d/drawobject.c
===================================================================
--- source/blender/editors/space_view3d/drawobject.c	(revision 36543)
+++ source/blender/editors/space_view3d/drawobject.c	(working copy)
@@ -46,6 +46,7 @@
 #include "DNA_scene_types.h"
 #include "DNA_smoke_types.h"
 #include "DNA_world_types.h"
+#include "DNA_armature_types.h"
 
 #include "BLI_blenlib.h"
 #include "BLI_math.h"
@@ -76,6 +77,9 @@
 
 #include "smoke_API.h"
 
+#include "IMB_imbuf.h"
+#include "IMB_imbuf_types.h"
+
 #include "BIF_gl.h"
 #include "BIF_glutil.h"
 
@@ -515,6 +519,74 @@
 	}
 }
 
+
+//*** Function to draw an Image on a empty Object ***
+static void draw_image_3D(Object *ob)
+{
+	Image *img = (Image*)ob->data;
+	ImBuf *ibuf = img ? BKE_image_get_ibuf(img, NULL) : NULL;
+
+	float scale, ofsx, ofsy;
+
+	if(ibuf) {
+		if (!ibuf->rect) {
+			if (ibuf->rect_float) {
+				IMB_rect_from_float(ibuf);
+			}
+		}
+	}
+
+	if(!ibuf || !ibuf->rect)
+		return;
+
+	//Calculate Image scale
+	scale = 1.0 / (float)MAX2(ibuf->x, ibuf->y);
+
+	//Setup GL params
+	glDepthMask(1);
+	glEnable(GL_BLEND);
+	glBlendFunc(GL_SRC_ALPHA,  GL_ONE_MINUS_SRC_ALPHA);
+
+	//Set color to outline color and object alpha
+	glColor4fv(ob->col);
+
+	glMatrixMode(GL_MODELVIEW);
+	glPushMatrix();
+
+	//Make sure we are drawing at the origin
+	glTranslatef(0.0f,  0.0f,  0.0f);
+
+	//Calculate the scale center based on objects origin
+	ofsx= ob->origin_offset[0] * ibuf->x;
+	ofsy= ob->origin_offset[1] * ibuf->y;
+
+	//Set the object scale
+	glScalef((scale * ob->empty_drawsize), (scale * ob->empty_drawsize), (scale * ob->empty_drawsize));
+
+	//Draw the Image on the screen
+	glaDrawPixelsTex(ofsx, ofsy, ibuf->x, ibuf->y, GL_UNSIGNED_BYTE, ibuf->rect);
+	glPixelTransferf(GL_ALPHA_SCALE, 1.0f);
+
+	//Set zbuffer, outline shows up better
+	glDepthMask(1);
+
+	UI_ThemeColor((ob->flag & SELECT) ? TH_SELECT : TH_WIRE);
+
+	//Calculate the outline vertex positions
+	glBegin(GL_LINE_LOOP);
+	glVertex2f(ofsx, ofsy);
+	glVertex2f(ofsx+ibuf->x, ofsy);
+	glVertex2f(ofsx+ibuf->x, ofsy+ibuf->y);
+	glVertex2f(ofsx, ofsy+ibuf->y);
+	glEnd();
+
+	/* Reset GL settings */
+	glMatrixMode(GL_MODELVIEW);
+	glPopMatrix();
+	glDisable(GL_BLEND);
+	glDepthMask(1);
+}
+
 void drawcircball(int mode, const float cent[3], float rad, float tmat[][4])
 {
 	float vec[3], vx[3], vy[3];
@@ -5954,8 +6026,14 @@
 			break;
 		}
 		case OB_EMPTY:
-			if((v3d->flag2 & V3D_RENDER_OVERRIDE)==0)
-				drawaxes(ob->empty_drawsize, ob->empty_drawtype);
+			if((v3d->flag2 & V3D_RENDER_OVERRIDE)==0) {
+				if (ob->data) {
+					draw_image_3D(ob);
+				}
+				else {
+					drawaxes(ob->empty_drawsize, ob->empty_drawtype);
+				}
+			}
 			break;
 		case OB_LAMP:
 			if((v3d->flag2 & V3D_RENDER_OVERRIDE)==0) {
@@ -6516,7 +6594,7 @@
 	else 
 		dm = mesh_get_derived_final(scene, ob, CD_MASK_BAREMESH);
 
-	if(dt<=OB_WIRE) {
+	if(dt==OB_WIRE || dt==BONE_DRAWWIRE) {
 		if(dm)
 			dm->drawEdges(dm, 1, 0);
 		else if(edm)
@@ -6564,7 +6642,12 @@
 			draw_object_mesh_instance(scene, v3d, rv3d, ob, dt, outline);
 			break;
 		case OB_EMPTY:
-			drawaxes(ob->empty_drawsize, ob->empty_drawtype);
+			if (ob->data) {
+				draw_image_3D(ob);
+			}
+			else {
+				drawaxes(ob->empty_drawsize, ob->empty_drawtype);
+			}
 			break;
 	}
 }