diff --git a/OpenSim.Framework/AgentInventory.cs b/OpenSim.Framework/AgentInventory.cs
index 1abf59af7c..803245579d 100644
--- a/OpenSim.Framework/AgentInventory.cs
+++ b/OpenSim.Framework/AgentInventory.cs
@@ -33,7 +33,7 @@ namespace OpenSim.Framework.Inventory
 
             InventoryRoot = new InventoryFolder();
             InventoryRoot.FolderID = LLUUID.Random();
-            InventoryRoot.ParentID = new LLUUID();
+            InventoryRoot.ParentID = LLUUID.Zero;
             InventoryRoot.Version = 1;
             InventoryRoot.DefaultType = 8;
             InventoryRoot.OwnerID = this.AgentID;
@@ -84,6 +84,7 @@ namespace OpenSim.Framework.Inventory
 
         public bool CreateNewFolder(LLUUID folderID, ushort type, string folderName, LLUUID parent)
         {
+            Console.WriteLine("creating new folder called " + folderName + " in agents inventory");
             InventoryFolder Folder = new InventoryFolder();
             Folder.FolderID = folderID;
             Folder.OwnerID = this.AgentID;
diff --git a/OpenSim.Framework/UserProfileManager.cs b/OpenSim.Framework/UserProfileManager.cs
index ef5ab71618..2f99494b29 100644
--- a/OpenSim.Framework/UserProfileManager.cs
+++ b/OpenSim.Framework/UserProfileManager.cs
@@ -287,9 +287,11 @@ namespace OpenSim.Framework.User
                     ClassifiedCategories.Add(ClassifiedCategoriesHash);
 
                     ArrayList AgentInventory = new ArrayList();
+                    Console.WriteLine("adding inventory to response");
                     foreach (InventoryFolder InvFolder in TheUser.Inventory.InventoryFolders.Values)
                     {
                         Hashtable TempHash = new Hashtable();
+                        Console.WriteLine("adding folder " + InvFolder.FolderName + ", ID: " + InvFolder.FolderID.ToStringHyphenated() + " with parent: " + InvFolder.ParentID.ToStringHyphenated()); 
                         TempHash["name"] = InvFolder.FolderName;
                         TempHash["parent_id"] = InvFolder.ParentID.ToStringHyphenated();
                         TempHash["version"] = (Int32)InvFolder.Version;
diff --git a/OpenSim.RegionServer/Assets/InventoryCache.cs b/OpenSim.RegionServer/Assets/InventoryCache.cs
index 1090940a12..cc7cc2994a 100644
--- a/OpenSim.RegionServer/Assets/InventoryCache.cs
+++ b/OpenSim.RegionServer/Assets/InventoryCache.cs
@@ -112,6 +112,19 @@ namespace OpenSim.Assets
             return res;
         }
 
+        public bool CreateNewInventoryFolder(SimClient remoteClient, LLUUID folderID, ushort type, string folderName, LLUUID parent)
+        {
+            bool res = false;
+            if (folderID != LLUUID.Zero)  //don't create a folder with a zero id
+            {
+                if (this._agentsInventory.ContainsKey(remoteClient.AgentID))
+                {
+                    res = this._agentsInventory[remoteClient.AgentID].CreateNewFolder(folderID, type, folderName, parent);
+                }
+            }
+            return res;
+        }
+
         public LLUUID AddNewInventoryItem(SimClient remoteClient, LLUUID folderID, OpenSim.Framework.Assets.AssetBase asset)
         {
             LLUUID newItem = null;
diff --git a/OpenSim.RegionServer/SimClient.cs b/OpenSim.RegionServer/SimClient.cs
index 6eb48fb863..068e148212 100644
--- a/OpenSim.RegionServer/SimClient.cs
+++ b/OpenSim.RegionServer/SimClient.cs
@@ -332,7 +332,7 @@ namespace OpenSim
                     break;
                 case PacketType.CreateInventoryFolder:
                     CreateInventoryFolderPacket invFolder = (CreateInventoryFolderPacket)Pack;
-                    m_inventoryCache.CreateNewInventoryFolder(this, invFolder.FolderData.FolderID, (ushort)invFolder.FolderData.Type);
+                    m_inventoryCache.CreateNewInventoryFolder(this, invFolder.FolderData.FolderID, (ushort)invFolder.FolderData.Type, Helpers.FieldToString(invFolder.FolderData.Name), invFolder.FolderData.ParentID);
                     Console.WriteLine(Pack.ToString());
                     break;
                 case PacketType.CreateInventoryItem:
@@ -361,6 +361,7 @@ namespace OpenSim
                             AssetBase asset = m_assetCache.GetAsset(update.InventoryData[i].TransactionID.Combine(this.SecureSessionID));
                             if (asset != null)
                             {
+                                Console.WriteLine("updating inventory item, found asset" + asset.FullID.ToStringHyphenated() + " already in cache");
                                 m_inventoryCache.UpdateInventoryItem(this, update.InventoryData[i].ItemID, asset);
                             }
                             else
@@ -368,8 +369,13 @@ namespace OpenSim
                                 asset = this.UploadAssets.AddUploadToAssetCache(update.InventoryData[i].TransactionID);
                                 if (asset != null)
                                 {
+                                    Console.WriteLine("updating inventory item, adding asset" + asset.FullID.ToStringHyphenated() + " to cache");
                                     m_inventoryCache.UpdateInventoryItem(this, update.InventoryData[i].ItemID, asset);
                                 }
+                                else
+                                {
+                                    Console.WriteLine("trying to update inventory item, but asset is null");
+                                }
                             }
                         }
                     }
@@ -712,6 +718,7 @@ namespace OpenSim
             if (this.m_userServer != null)
             {
                 // a user server is set so request the inventory from it
+                Console.WriteLine("getting inventory from user server");
                 inventory = m_inventoryCache.FetchAgentsInventory(this.AgentID, m_userServer);
             }
             else