Index: source/blender/include/BSE_view.h
===================================================================
--- source/blender/include/BSE_view.h	(revision 11763)
+++ 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 viewdolly(float dfac);
 
 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/makesdna/DNA_userdef_types.h
===================================================================
--- source/blender/makesdna/DNA_userdef_types.h	(revision 11763)
+++ source/blender/makesdna/DNA_userdef_types.h	(working copy)
@@ -233,6 +233,7 @@
 #define USER_SHOW_ROTVIEWICON	131072
 #define USER_SHOW_VIEWPORTNAME	262144
 #define USER_KEYINSERTNEED		524288
+#define USER_MOUSEPOSDOLLY		1048576
 
 /* transopts */
 
Index: source/blender/makesdna/DNA_view3d_types.h
===================================================================
--- source/blender/makesdna/DNA_view3d_types.h	(revision 11763)
+++ source/blender/makesdna/DNA_view3d_types.h	(working copy)
@@ -82,7 +82,8 @@
 	float winmat1[4][4];  // persp(1) storage, for swap matrices
 	float viewmat1[4][4];
 	
-	float viewquat[4], dist, zfac, pad0;	/* zfac is initgrabz() result */
+	float viewquat[4], dist, zfac;	/* zfac is initgrabz() result */
+	short focus_pos[2]; /* 2D view focus coordinates at screen space (mainly to store current mouse cursor position) */
 
 	/**
 	 * 0 - ortho
Index: source/blender/src/space.c
===================================================================
--- source/blender/src/space.c	(revision 11763)
+++ source/blender/src/space.c	(working copy)
@@ -1192,6 +1192,7 @@
 				mouse_cursor();
 				break;
 			case MIDDLEMOUSE:
+				getmouseco_areawin(G.vd->focus_pos);
 				/* use '&' here, because of alt+leftmouse which emulates middlemouse */
 				if(U.flag & USER_VIEWMOVE) {
 					if((G.qual==LR_SHIFTKEY) || ((U.flag & USER_TWOBUTTONMOUSE) && (G.qual==(LR_ALTKEY|LR_SHIFTKEY))))
@@ -1323,6 +1324,7 @@
 				break;
 			/* View */
 			case MIDDLEMOUSE:
+				getmouseco_areawin(G.vd->focus_pos);
 				handle_view_middlemouse();
 				break;
 			case WHEELUPMOUSE:
@@ -1549,6 +1551,7 @@
 				}
 				break;
 			case MIDDLEMOUSE:
+				getmouseco_areawin(G.vd->focus_pos);
 				handle_view_middlemouse();
 				break;
 			case RIGHTMOUSE:
@@ -3343,28 +3346,32 @@
 			&(U.viewzoom), 40, USER_ZOOM_SCALE, 0, 0,
 			"Zooms in and out like scaling the view, mouse movements relative to center.");
 		uiBlockSetCol(block, TH_AUTO);			/* end color */
+		uiDefButBitI(block, TOG, USER_MOUSEPOSDOLLY, B_DRAWINFO, "Mouse Position Dolly",
+			(xpos+edgsp+mpref+(2*spref)+(3*midsp)),y4,mpref,buth,
+			&(U.uiflag), 0, 0, 0, 0,
+			"Dollying to the position of the mouse.");
 		uiBlockEndAlign(block);
 		
 		uiDefBut(block, LABEL,0,"View rotation:",
-			(xpos+(2*edgsp)+mpref+(2*spref)+(2*midsp)),y4label,mpref,buth,
+			(xpos+(2*edgsp)+mpref+(2*spref)+(2*midsp)),y3label,mpref,buth,
 			0, 0, 0, 0, 0, "");
 		uiBlockBeginAlign(block);
 		uiBlockSetCol(block, TH_BUT_SETTING1);	/* mutually exclusive toggles, start color */
 		uiDefButBitI(block, TOG, USER_TRACKBALL, B_DRAWINFO, "Trackball",
-			(xpos+edgsp+mpref+(2*spref)+(3*midsp)),y3,(mpref/2),buth,
+			(xpos+edgsp+mpref+(2*spref)+(3*midsp)),y2,(mpref/2),buth,
 			&(U.flag), 0, 0, 0, 0,
 			"Allow the view to tumble freely when orbiting with the Middle Mouse Button");
 		uiDefButBitI(block, TOGN, USER_TRACKBALL, B_DRAWINFO, "Turntable",
-			(xpos+edgsp+mpref+(2*spref)+(3*midsp)+(mpref/2)),y3,(mpref/2),buth,
+			(xpos+edgsp+mpref+(2*spref)+(3*midsp)+(mpref/2)),y2,(mpref/2),buth,
 			&(U.flag), 0, 0, 0, 0,
 			"Use fixed up axis for orbiting with Middle Mouse Button");
 		uiBlockSetCol(block, TH_AUTO);			/* end color */
 		uiDefButBitI(block, TOG, USER_AUTOPERSP, B_DRAWINFO, "Auto Perspective",
-			(xpos+edgsp+mpref+(2*spref)+(3*midsp)),y2,(mpref/2),buth,
+			(xpos+edgsp+mpref+(2*spref)+(3*midsp)),y1,(mpref/2),buth,
 			&(U.uiflag), 0, 0, 0, 0,
 			"Automatically switch between orthographic and perspective when changing from top/front/side views");
 		uiDefButBitI(block, TOG, USER_ORBIT_SELECTION, B_DRAWINFO, "Around Selection",
-			(xpos+edgsp+mpref+(2*spref)+(3*midsp)+(mpref/2)),y2,(mpref/2),buth,
+			(xpos+edgsp+mpref+(2*spref)+(3*midsp)+(mpref/2)),y1,(mpref/2),buth,
 			&(U.uiflag), 0, 0, 0, 0,
 			"Use selection as the orbiting center");
 		uiBlockEndAlign(block);
@@ -3372,15 +3379,15 @@
 
 		uiBlockBeginAlign(block);
 		uiDefButBitI(block, TOG, USER_SHOW_ROTVIEWICON, B_DRAWINFO, "Mini Axis",
-			 (xpos+edgsp+(2*mpref)+(2*midsp)),y1,(mpref/3),buth,
+			 (xpos+edgsp+(5*mpref)+(6*midsp)),y1,(mpref/3),buth,
 			 &(U.uiflag), 0, 0, 0, 0,
 			 "Show a small rotating 3D axis in the bottom left corner of the 3D View");
 		uiDefButS(block, NUM, B_DRAWINFO, "Size:",
-			(xpos+edgsp+(2*mpref)+(2*midsp)+(mpref/3)),y1,(mpref/3),buth,
+			((xpos+edgsp+(5*mpref)+(6*midsp))+(mpref/3)),y1,(mpref/3),buth,
 			&U.rvisize, 10, 64, 0, 0,
 			"The axis icon's size");
 		uiDefButS(block, NUM, B_DRAWINFO, "Bright:",
-			(xpos+edgsp+(2*mpref)+(2*midsp)+2*(mpref/3)),y1,(mpref/3),buth,
+			((xpos+edgsp+(5*mpref)+(6*midsp))+2*(mpref/3)),y1,(mpref/3),buth,
 			&U.rvibright, 0, 10, 0, 0,
 			"The brightness of the icon");
 		uiBlockEndAlign(block);
Index: source/blender/src/toets.c
===================================================================
--- source/blender/src/toets.c	(revision 11763)
+++ source/blender/src/toets.c	(working copy)
@@ -149,6 +149,10 @@
 	G.vd->view= view;
 }
 
+#define VIEW_DOLLY_OUT_FACTOR (1.15f)
+#define VIEW_DOLLY_IN_FACTOR (1.0f/VIEW_DOLLY_OUT_FACTOR)
+
+
 void persptoetsen(unsigned short event)
 {
 	static Object *oldcamera=0;
@@ -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(G.vd->focus_pos);
+				viewdolly(VIEW_DOLLY_OUT_FACTOR);
+			}
 			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(G.vd->focus_pos);
+				viewdolly(VIEW_DOLLY_IN_FACTOR);
+			}
 			if(G.vd->persp!=1) preview3d_event= 0;
 		}
 		else if(event==PAD5) {
Index: source/blender/src/view.c
===================================================================
--- source/blender/src/view.c	(revision 11763)
+++ source/blender/src/view.c	(working copy)
@@ -730,7 +730,7 @@
 			else if(mode==2) {
 				if(U.viewzoom==USER_ZOOM_CONT) {
 					// oldstyle zoom
-					G.vd->dist*= 1.0+(float)(mvalo[0]-mval[0]+mvalo[1]-mval[1])/1000.0;
+					viewdolly(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;
@@ -742,13 +742,13 @@
 					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);
+					viewdolly(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);
+					viewdolly(dist0 * (2.0*((len2/len1)-1.0) + 1.0) / G.vd->dist);
 				}
 				
 				/* these limits are in toets.c too */
@@ -800,6 +800,52 @@
 
 }
 
+/*
+ * no bounds check
+ * set G.vd->focus_pos first
+ */
+void viewdolly(float dfac)
+{
+	if(U.uiflag & USER_MOUSEPOSDOLLY) {
+		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, G.vd->focus_pos[0]-vb[0]/2, 
+			G.vd->focus_pos[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;
+		smooth_view(G.vd, tvec, NULL, &new_dist, NULL);
+
+		/* Calculate final offset */
+		dvec[0] = tvec[0] + dvec[0] * dfac;
+		dvec[1] = tvec[1] + dvec[1] * dfac;
+		dvec[2] = tvec[2] + dvec[2] * dfac;
+		
+		smooth_view(G.vd, dvec, NULL, NULL, NULL);
+	} 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)
 {