Index: wp-includes/default-filters.php
===================================================================
--- wp-includes/default-filters.php	(revision 14278)
+++ wp-includes/default-filters.php	(working copy)
@@ -169,6 +169,7 @@
 add_filter( 'comments_open',        '_close_comments_for_old_post', 10, 2 );
 add_filter( 'pings_open',           '_close_comments_for_old_post', 10, 2 );
 add_filter( 'editable_slug',        'urldecode'                           );
+add_filter( 'nav_menu_meta_box_object','_wp_nav_menu_meta_box_object'     );
 
 // Atom SSL support
 add_filter( 'atom_service_url','atom_service_url_filter' );
Index: wp-includes/nav-menu-template.php
===================================================================
--- wp-includes/nav-menu-template.php	(revision 14278)
+++ wp-includes/nav-menu-template.php	(working copy)
@@ -132,10 +132,12 @@
 	 * @param object $args
 	 */
 	function start_el(&$output, $item, $depth, $args) {
-		static $_placeholder;
-		$_placeholder = 0 > $_placeholder ? $_placeholder - 1 : -1;
-		$possible_object_id = isset( $item->post_type ) && 'nav_menu_item' == $item->post_type ? $item->object_id : $_placeholder;
+		global $_nav_menu_placeholder;
+
+		$_nav_menu_placeholder = ( 0 > $_nav_menu_placeholder ) ? intval($_nav_menu_placeholder) - 1 : -1;
+		$possible_object_id = isset( $item->post_type ) && 'nav_menu_item' == $item->post_type ? $item->object_id : $_nav_menu_placeholder;
 		$possible_db_id = ( ! empty( $item->ID ) ) && ( 0 < $possible_object_id ) ? (int) $item->ID : 0;
+		$possible_parent_id = ( ! empty( $item->ID ) ) && ( 0 < $possible_object_id ) ? (int) $item->post_parent : 0;
 
 		$indent = ( $depth ) ? str_repeat( "\t", $depth ) : '';
 
@@ -147,7 +149,7 @@
 		// Menu item hidden fields
 		$output .= '<input type="hidden" class="menu-item-db-id" name="menu-item[' . $possible_object_id . '][menu-item-db-id]" value="' . $possible_db_id . '" />';
 		$output .= '<input type="hidden" class="menu-item-object" name="menu-item[' . $possible_object_id . '][menu-item-object]" value="'. esc_attr( $item->object ) .'" />';
-		$output .= '<input type="hidden" class="menu-item-parent-id" name="menu-item[' . $possible_object_id . '][menu-item-parent-id]" value="'. esc_attr( $item->post_parent ) .'" />';
+		$output .= '<input type="hidden" class="menu-item-parent-id" name="menu-item[' . $possible_object_id . '][menu-item-parent-id]" value="'. $possible_parent_id .'" />';
 		$output .= '<input type="hidden" class="menu-item-type" name="menu-item[' . $possible_object_id . '][menu-item-type]" value="'. esc_attr( $item->type ) .'" />';
 		$output .= '<input type="hidden" class="menu-item-append" name="menu-item[' . $possible_object_id . '][menu-item-append]" value="'. esc_attr( $item->append ) .'" />';
 		$output .= '<input type="hidden" class="menu-item-title" name="menu-item[' . $possible_object_id . '][menu-item-title]" value="'. esc_attr( $item->title ) .'" />';
Index: wp-includes/nav-menu.php
===================================================================
--- wp-includes/nav-menu.php	(revision 14278)
+++ wp-includes/nav-menu.php	(working copy)
@@ -50,7 +50,12 @@
 	
 	$menu_obj = wp_get_nav_menu_object( $menu );
 
-	if ( $menu_obj && ! is_wp_error( $menu_obj ) && ! empty( $menu_obj->term_id ) ) 
+	if ( 
+		$menu_obj && 
+		! is_wp_error( $menu_obj ) && 
+		! empty( $menu_obj->taxonomy ) &&
+		'nav_menu' == $menu_obj->taxonomy
+	) 
 		return true;
 	
 	return false;
@@ -143,7 +148,7 @@
  *
  * @param int $menu_id The ID of the menu
  * @param array $menu_data The array of menu data.
- * @return int The menu's ID.
+ * @return int|error object The menu's ID or WP_Error object.
  */
 function wp_update_nav_menu_object( $menu_id = 0, $menu_data = array() ) {
 	$menu_id = (int) $menu_id;
@@ -151,11 +156,13 @@
 	$_menu = wp_get_nav_menu_object( $menu_id );
 
 	// menu doesn't already exist
-	if ( ! $_menu || is_wp_error( $_menu ) ) {
+	if ( ! $_menu || is_wp_error( $_menu ) )
 		$_menu = wp_create_nav_menu( $menu_data['menu-name'] );
-	}
 
-	if ( $_menu && isset( $_menu->term_id ) && ! is_wp_error( $_menu ) ) {
+	if ( is_wp_error( $_menu ) )
+		return $_menu;
+
+	if ( $_menu && isset( $_menu->term_id ) ) {
 		$args = array( 
 			'description' => ( isset( $menu_data['description'] ) ? $menu_data['description'] : '' ), 
 			'name' => ( isset( $menu_data['menu-name'] ) ? $menu_data['menu-name'] : '' ), 
@@ -167,9 +174,10 @@
 
 		$update_response = wp_update_term( $menu_id, 'nav_menu', $args );
 
-		if ( ! is_wp_error( $update_response ) ) {
+		if ( ! is_wp_error( $update_response ) )
 			return $menu_id;
-		}
+		else
+			return $update_response;
 	} else {
 		return 0;
 	}
@@ -237,6 +245,32 @@
 		}
 	}
 	
+	if ( 'custom' != $args['menu-item-type'] ) {
+		/* if non-custom menu item, then:
+			* use original object's URL
+			* blank default title to sync with original object's
+		*/
+
+		$args['menu-item-url'] = '';
+
+		$original_title = '';
+		if ( 'taxonomy' == $args['menu-item-type'] ) {
+			$original_title = get_term_field( 'name', $args['menu-item-object-id'], $args['menu-item-object'], 'raw' );
+		} elseif ( 'post_type' == $args['menu-item-type'] ) {
+			$original_object = get_post( $args['menu-item-object-id'] );
+			$original_title = $original_object->post_title;
+		}
+
+		if ( empty( $args['menu-item-title'] ) || $args['menu-item-title'] == $original_title ) {
+			$args['menu-item-title'] = '';
+
+			// hack to get wp to create a post object when too many properties are empty
+			if ( empty( $args['menu-item-description'] ) ) {
+				$args['menu-item-description'] = ' ';
+			}
+		}
+	}
+
 	// Populate the menu item object
 	$post = array(
 		'menu_order' => $args['menu-item-position'],
@@ -363,6 +397,12 @@
 
 		$items = get_posts( $args );
 
+		if ( is_wp_error( $items ) || ! is_array( $items ) ) {
+			return false;
+		}
+
+		$items = array_map( 'wp_setup_nav_menu_item', $items );
+
 		if ( ARRAY_A == $args['output'] ) {
 			$GLOBALS['_menu_item_sort_prop'] = $args['output_key'];
 			usort($items, '_sort_nav_menu_items');
@@ -410,18 +450,25 @@
 				$object = get_post_type_object( $menu_item->object );
 				$menu_item->append = $object->singular_label;
 				$menu_item->url = get_permalink( $menu_item->object_id );
+			
+				$original_object = get_post( $menu_item->object_id );
+				$original_title = $original_object->post_title;
+				$menu_item->title = '' == $menu_item->post_title ? $original_title : $menu_item->post_title;
 
 			} elseif ( 'taxonomy' == $menu_item->type ) {
 				$object = get_taxonomy( $menu_item->object );
 				$menu_item->append = $object->singular_label;
 				$menu_item->url = get_term_link( (int) $menu_item->object_id, $menu_item->object );
 
+				$original_title = get_term_field( 'name', $menu_item->object_id, $menu_item->object, 'raw' );
+				$menu_item->title = '' == $menu_item->post_title ? $original_title : $menu_item->post_title;
+
 			} else {
 				$menu_item->append = __('Custom');
+				$menu_item->title = $menu_item->post_title;
 				$menu_item->url = get_post_meta( $menu_item->ID, '_menu_item_url', true );
 			}
 			
-			$menu_item->title = $menu_item->post_title;
 			$menu_item->target = get_post_meta( $menu_item->ID, '_menu_item_target', true );
 
 			$menu_item->attr_title = strip_tags( $menu_item->post_excerpt );
Index: wp-admin/includes/nav-menu.php
===================================================================
--- wp-admin/includes/nav-menu.php	(revision 14278)
+++ wp-admin/includes/nav-menu.php	(working copy)
@@ -305,12 +305,15 @@
 function wp_nav_menu_post_type_meta_boxes() {
 	$post_types = get_post_types( array( 'public' => true ), 'object' );
 
-	if ( !$post_types )
+	if ( ! $post_types )
 		return;
 
 	foreach ( $post_types as $post_type ) {
-		$id = $post_type->name;
-		add_meta_box( "add-{$id}", $post_type->label, 'wp_nav_menu_item_post_type_meta_box', 'nav-menus', 'side', 'default', $post_type );
+		$post_type = apply_filters( 'nav_menu_meta_box_object', $post_type );
+		if ( $post_type ) {
+			$id = $post_type->name;
+			add_meta_box( "add-{$id}", $post_type->label, 'wp_nav_menu_item_post_type_meta_box', 'nav-menus', 'side', 'default', $post_type );
+		}
 	}
 }
 
@@ -326,8 +329,11 @@
 		return;
 
 	foreach ( $taxonomies as $tax ) {
-		$id = $tax->name;
-		add_meta_box( "add-{$id}", $tax->label, 'wp_nav_menu_item_taxonomy_meta_box', 'nav-menus', 'side', 'default', $tax );
+		$tax = apply_filters( 'nav_menu_meta_box_object', $tax );
+		if ( $tax ) {
+			$id = $tax->name;
+			add_meta_box( "add-{$id}", $tax->label, 'wp_nav_menu_item_taxonomy_meta_box', 'nav-menus', 'side', 'default', $tax );
+		}
 	}
 }
 
@@ -337,8 +343,8 @@
  * @since 3.0.0
  */
 function wp_nav_menu_item_link_meta_box() {
-	static $_placeholder;
-	$_placeholder = 0 > $_placeholder ? $_placeholder - 1 : -1;
+	global $_nav_menu_placeholder;
+	$_nav_menu_placeholder = 0 > $_nav_menu_placeholder ? $_nav_menu_placeholder - 1 : -1;
 
 	// @note: hacky query, see #12660
 	$args = array( 'post_type' => 'nav_menu_item', 'post_status' => 'any', 'meta_key' => '_menu_item_type', 'numberposts' => -1, 'orderby' => 'title', );
@@ -364,39 +370,27 @@
 	<div class="customlinkdiv">
 		<ul id="customlink-tabs" class="customlink-tabs add-menu-item-tabs">
 			<li <?php echo ( 'create' == $current_tab ? ' class="tabs"' : '' ); ?>><a class="menu-tab-link" href="<?php echo add_query_arg('customlink-tab', 'create', remove_query_arg($removed_args)); ?>#tabs-panel-create-custom"><?php _e('Create New'); ?></a></li>
-			<li <?php echo ( 'all' == $current_tab ? ' class="tabs"' : '' ); ?>><a class="menu-tab-link" href="<?php echo add_query_arg('customlink-tab', 'all', remove_query_arg($removed_args)); ?>#tabs-panel-all-custom"><?php _e('View All'); ?></a></li>
 		</ul>
 
 		<div class="tabs-panel <?php 
 			echo ( 'create' == $current_tab ? 'tabs-panel-active' : 'tabs-panel-inactive' );
 		?>" id="tabs-panel-create-custom">
-			<input type="hidden" value="custom" name="menu-item[<?php echo $_placeholder; ?>][menu-item-type]" />
+			<input type="hidden" value="custom" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-type]" />
 			<p id="menu-item-url-wrap">
 				<label class="howto" for="custom-menu-item-url">
 					<span><?php _e('URL'); ?></span>
-					<input id="custom-menu-item-url" name="menu-item[<?php echo $_placeholder; ?>][menu-item-url]" type="text" class="code menu-item-textbox" value="http://" />
+					<input id="custom-menu-item-url" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-url]" type="text" class="code menu-item-textbox" value="http://" />
 				</label>
 			</p>
 
 			<p id="menu-item-name-wrap">
 				<label class="howto" for="custom-menu-item-name">
 					<span><?php _e('Text'); ?></span>
-					<input id="custom-menu-item-name" name="menu-item[<?php echo $_placeholder; ?>][menu-item-title]" type="text" class="regular-text menu-item-textbox" value="<?php echo esc_attr( __('Menu Item') ); ?>" />
+					<input id="custom-menu-item-name" name="menu-item[<?php echo $_nav_menu_placeholder; ?>][menu-item-title]" type="text" class="regular-text menu-item-textbox" value="<?php echo esc_attr( __('Menu Item') ); ?>" />
 				</label>
 			</p>
 		</div><!-- /.tabs-panel -->
 
-		<div class="tabs-panel <?php 
-			echo ( 'all' == $current_tab ? 'tabs-panel-active' : 'tabs-panel-inactive' );
-		?>" id="tabs-panel-all-custom">
-			<ul id="customlinkchecklist" class="list:customlink customlinkchecklist form-no-clear">
-				<?php
-				$args['walker'] = new Walker_Nav_Menu_Checklist;
-				echo walk_nav_menu_tree( array_map('wp_setup_nav_menu_item', $links), 0, (object) $args );
-				?>
-			</ul>
-		</div><!-- /.tabs-panel -->
-
 		<p class="button-controls">
 			<span class="add-to-menu">
 				<input type="submit" class="button-secondary" value="<?php esc_attr_e('Add to Menu'); ?>" name="add-custom-menu-item" />
@@ -433,6 +427,9 @@
 		'suppress_filters' => true, 
 	);
 
+	if ( isset( $post_type['args']->_default_query ) )
+		$args = array_merge($args, (array) $post_type['args']->_default_query );
+
 	// @todo transient caching of these results with proper invalidation on updating of a post of this type
 	$get_posts = new WP_Query;
 	$posts = $get_posts->query( $args );
@@ -810,6 +807,48 @@
 }
 
 /**
+ * Adds custom arguments to some of the meta box object types.
+ *
+ * @since 3.0.0
+ * 
+ * @access private
+ *
+ * @param object $object The post type or taxonomy meta-object.
+ * @return object The post type of taxonomy object.
+ */
+function _wp_nav_menu_meta_box_object( $object = null ) {
+	if ( isset( $object->name ) ) {
+		// don't show media meta box
+		if ( 'attachment' == $object->name )
+			return false;
+	
+		// pages should show most recent
+		if ( 'page' == $object->name ) {
+			$object->_default_query = array(
+				'orderby' => 'post_date',
+				'order' => 'DESC',
+				'post_status' => 'publish',
+			);
+
+		// posts should show only published items
+		} elseif ( 'post' == $object->name ) {
+			$object->_default_query = array(
+				'post_status' => 'publish',
+			);
+
+		// cats should be in reverse chronological order
+		} elseif ( 'category' == $object->name ) {
+			$object->_default_query = array(
+				'orderby' => 'id',
+				'order' => 'DESC',
+			);
+		}
+	}
+	
+	return $object;
+}
+
+/**
  * Returns the menu item formatted to edit.
  *
  * @since 3.0.0
@@ -818,8 +857,6 @@
  * @return string|WP_Error $output The menu formatted to edit or error object on failure.
  */
 function wp_get_nav_menu_to_edit( $menu_item_id = 0 ) {
-	static $_placeholder;
-	
 	$menu = wp_get_nav_menu_object( $menu_item_id );
 	
 	// If the menu exists, get its items.
Index: wp-admin/js/nav-menu.dev.js
===================================================================
--- wp-admin/js/nav-menu.dev.js	(revision 14278)
+++ wp-admin/js/nav-menu.dev.js	(working copy)
@@ -159,8 +159,16 @@
 		if ( ! list )
 			return;
 
-		var menuListItems = list.getElementsByTagName('li'),
+		var dummyListItem = document.getElementById(list.id + '-dummy-list-item'),
+		menuListItems = list.getElementsByTagName('li'),
 		i = menuListItems.length;
+
+		if ( ! dummyListItem ) {
+			dummyListItem = document.createElement('li');
+			dummyListItem.id = list.id + '-dummy-list-item';
+			list.appendChild(dummyListItem);
+			this.setupListItemDragAndDrop(dummyListItem);
+		}
 		
 		while ( i-- )
 			this.setupListItemDragAndDrop(menuListItems[i]);
@@ -234,19 +242,23 @@
 		attachTabsPanelListeners : function() {
 			$('#menu-settings-column').bind('click', function(e) {
 				if ( e.target && e.target.className && -1 != e.target.className.indexOf('menu-tab-link') ) {
-					var i = e.target.parentNode,
-					activePanel,
+					var activePanel,
 					panelIdMatch = /#(.*)$/.exec(e.target.href),
-					tabPanels;
-					while ( ! i.className || -1 == i.className.indexOf('inside') ) {
-						i = i.parentNode;
-					}
-					$('.tabs-panel', i).each(function() {
+					tabPanels,
+					wrapper = getParentWrapper(e.target, 'inside'),
+					inputs = wrapper ? wrapper.getElementsByTagName('input') : [],
+					i = inputs.length;
+
+					// upon changing tabs, we want to uncheck all checkboxes
+					while( i-- ) 
+						inputs[i].checked = false;
+
+					$('.tabs-panel', wrapper).each(function() {
 						if ( this.className )
 							this.className = this.className.replace('tabs-panel-active', 'tabs-panel-inactive');
 					});
 
-					$('.tabs', i).each(function() {
+					$('.tabs', wrapper).each(function() {
 						this.className = this.className.replace('tabs', '');
 					});
 
@@ -396,7 +408,7 @@
 					if ( that != currentDropzone || ( ! activeHovering && that.className && -1 != that.className.indexOf('sortable-placeholder') ) ) {
 						that.className = that.className.replace(/sortable-placeholder/g, '');
 					}
-				}, 500);
+				}, 800);
 			})(dropEl);
 		},
 
@@ -563,6 +575,7 @@
 			if ( ! req )
 				req = {};
 			var dropZone,
+			dummyListItem = document.getElementById(menuList.id + '-dummy-list-item'),
 			i,
 			listElements,
 			wrap = document.createElement('ul');
@@ -572,9 +585,14 @@
 			i = listElements.length;
 			while ( i-- ) {
 				this.setupListItemDragAndDrop(listElements[i]);
-				menuList.appendChild(listElements[i]);
+				if ( dummyListItem )
+					menuList.insertBefore(listElements[i], dummyListItem);
+				else
+					menuList.appendChild(listElements[i]);
 			}
 
+			this.recalculateSortOrder(menuList);
+
 			/* set custom link form back to defaults */
 			if ( customLinkNameInput && customLinkURLInput ) { 
 				customLinkNameInput.value = customLinkNameDefault;