diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/BoxBuilder.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/BoxBuilder.java
index 60375bc8f..d62ba5ac6 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/BoxBuilder.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/layout/BoxBuilder.java
@@ -125,12 +125,12 @@ public static BlockBox createRootBox(LayoutContext c, Document document) {
     }
 
     public static void createChildren(LayoutContext c, BlockBox parent) {
-    	
-    	if (parent.isReplaced()) {
+
+    	if (parent.shouldBeReplaced()) {
     		return;
     	}
 
-		List children = new ArrayList();
+        List children = new ArrayList();
 
         ChildBoxInfo info = new ChildBoxInfo();
 
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/BlockBox.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/BlockBox.java
index bff0ef198..cbc8f2f86 100755
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/BlockBox.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/BlockBox.java
@@ -417,8 +417,12 @@ public void setStaticEquivalent(Box staticEquivalent) {
         _staticEquivalent = staticEquivalent;
     }
 
+    public boolean shouldBeReplaced() {
+    	return _isReplaced;
+    }
+    
     public boolean isReplaced() {
-        return _replacedElement != null || _isReplaced;
+        return _replacedElement != null;
     }
 
     public void calcCanvasLocation() {
@@ -449,7 +453,7 @@ public void calcCanvasLocation() {
             setAbsY(lineBox.getAbsY() + getY());
         }
 
-        if (isReplaced() && getReplacedElement() != null) {
+        if (isReplaced()) {
             Point location = getReplacedElement().getLocation();
             if (location.x != getAbsX() || location.y != getAbsY()) {
                 getReplacedElement().setLocation(getAbsX(), getAbsY());
@@ -811,7 +815,6 @@ public void layout(LayoutContext c) {
 
     public void layout(LayoutContext c, int contentStart) {
         CalculatedStyle style = getStyle();
-
         boolean pushedLayer = false;
         if (isRoot() || style.requiresLayer()) {
             pushedLayer = true;
@@ -1522,7 +1525,7 @@ public void calcMinMaxWidth(LayoutContext c) {
             int width = getCSSWidth(c, true);
 
             if (width == -1) {
-                if (isReplaced() && getReplacedElement() != null) {
+                if (getReplacedElement() != null) {
                     width = getReplacedElement().getIntrinsicWidth();
                 } else {
                     int height = getCSSHeight(c);
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
index eb879f60f..cfab1ccf4 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListCollector.java
@@ -68,6 +68,11 @@ private void collect(RenderingContext c, Layer layer, DisplayListContainer dlPag
 		}
 
 		if (!layer.isInline() && ((BlockBox) layer.getMaster()).isReplaced()) {
+			if (((BlockBox) layer.getMaster()).getReplacedElement() == null) {
+				System.out.println(layer.getMaster().getElement().getAttribute("style"));
+			} else
+			
+			
 			collectReplacedElementLayer(c, layer, dlPages, pages);
 		} else {
 
@@ -175,17 +180,13 @@ private void collectLayerBackgroundAndBorder(RenderingContext c, Layer layer,
 	private void collectReplacedElementLayer(RenderingContext c, Layer layer,
 			DisplayListContainer dlPages, List<PageBox> pages) {
 
-		if (layer.getMaster() instanceof BlockBox) {
-			DisplayListOperation dlo = new PaintLayerBackgroundAndBorder(layer.getMaster());
-			int pgStart = PagedBoxCollector.findStartPage(c, layer.getMaster(), pages);
-			int pgEnd = PagedBoxCollector.findEndPage(c, layer.getMaster(), pages);
-			addItem(dlo, pgStart, pgEnd, dlPages);
-		}
-
-		DisplayListOperation dlo = new PaintReplacedElement((BlockBox) layer.getMaster());
+		DisplayListOperation dlo = new PaintLayerBackgroundAndBorder(layer.getMaster());
 		int pgStart = PagedBoxCollector.findStartPage(c, layer.getMaster(), pages);
 		int pgEnd = PagedBoxCollector.findEndPage(c, layer.getMaster(), pages);
 		addItem(dlo, pgStart, pgEnd, dlPages);
+
+		DisplayListOperation dlo2 = new PaintReplacedElement((BlockBox) layer.getMaster());
+		addItem(dlo2, pgStart, pgEnd, dlPages);
 	}
 
 	// Bit of a kludge here. We need to paint collapsed table borders according
diff --git a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListPainter.java b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListPainter.java
index 0719db1b3..aaf777d87 100644
--- a/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListPainter.java
+++ b/openhtmltopdf-core/src/main/java/com/openhtmltopdf/render/displaylist/DisplayListPainter.java
@@ -1,5 +1,7 @@
 package com.openhtmltopdf.render.displaylist;
 
+import java.awt.Point;
+import java.awt.Rectangle;
 import java.util.List;
 import java.util.Map;
 
@@ -86,10 +88,25 @@ private void paintReplacedElements(RenderingContext c, List<DisplayListItem> rep
 				c.getOutputDevice().setClip(setClip.getSetClipShape());
 			} else {
 				BlockBox box = (BlockBox) dli;
-				c.getOutputDevice().paintReplacedElement(c, box);
+				paintReplacedElement(c, box);
 			}
 		}
 	}
+	
+    private void paintReplacedElement(RenderingContext c, BlockBox replaced) {
+        
+    	Rectangle contentBounds = replaced.getContentAreaEdge(
+                replaced.getAbsX(), replaced.getAbsY(), c);
+    	
+        // Minor hack:  It's inconvenient to adjust for margins, border, padding during
+        // layout so just do it here.
+        Point loc = replaced.getReplacedElement().getLocation();
+        if (contentBounds.x != loc.x || contentBounds.y != loc.y) {
+            replaced.getReplacedElement().setLocation(contentBounds.x, contentBounds.y);
+        }
+        
+        c.getOutputDevice().paintReplacedElement(c, replaced);
+    }
 
 	public void paint(RenderingContext c, DisplayListPageContainer pageOperations) {
 		for (DisplayListOperation op : pageOperations.getOperations()) {
@@ -108,7 +125,7 @@ public void paint(RenderingContext c, DisplayListPageContainer pageOperations) {
 			} else if (op instanceof PaintReplacedElement) {
 
 				PaintReplacedElement dlo = (PaintReplacedElement) op;
-				c.getOutputDevice().paintReplacedElement(c, dlo.getMaster());
+				paintReplacedElement(c, dlo.getMaster());
 
 			} else if (op instanceof PaintBackgroundAndBorders) {
 
diff --git a/openhtmltopdf-pdfbox/src/main/java/com/openhtmltopdf/pdfboxout/PdfBoxRenderer.java b/openhtmltopdf-pdfbox/src/main/java/com/openhtmltopdf/pdfboxout/PdfBoxRenderer.java
index e5aaa00cd..8ce67ac42 100644
--- a/openhtmltopdf-pdfbox/src/main/java/com/openhtmltopdf/pdfboxout/PdfBoxRenderer.java
+++ b/openhtmltopdf-pdfbox/src/main/java/com/openhtmltopdf/pdfboxout/PdfBoxRenderer.java
@@ -41,7 +41,6 @@
 import com.openhtmltopdf.render.ViewportBox;
 import com.openhtmltopdf.render.displaylist.DisplayListCollector;
 import com.openhtmltopdf.render.displaylist.DisplayListContainer;
-import com.openhtmltopdf.render.displaylist.DisplayListOperation;
 import com.openhtmltopdf.render.displaylist.DisplayListPainter;
 import com.openhtmltopdf.render.displaylist.DisplayListContainer.DisplayListPageContainer;
 import com.openhtmltopdf.resource.XMLResource;
@@ -491,7 +490,6 @@ public void createPDF(OutputStream os, boolean finish, int initialPageNo) throws
      *   - inline-blocks
      *   - hidden overflow
      *   - transforms
-     *   - fine positioning of replaced elements.
      *   - debugging everything
      */
     public void createPdfFast(boolean finish) throws IOException {