Index: desktop_aura/desktop_screen_win.cc
===================================================================
--- desktop_aura/desktop_screen_win.cc	(revision 272007)
+++ desktop_aura/desktop_screen_win.cc	(working copy)
@@ -54,6 +54,8 @@
 }
 
 HWND DesktopScreenWin::GetHWNDFromNativeView(gfx::NativeView window) const {
+  if (!window)
+    return NULL;
   aura::WindowTreeHost* host = window->GetHost();
   return host ? host->GetAcceleratedWidget() : NULL;
 }
Index: desktop_aura/desktop_window_tree_host_win.cc
===================================================================
--- desktop_aura/desktop_window_tree_host_win.cc	(revision 272007)
+++ desktop_aura/desktop_window_tree_host_win.cc	(working copy)
@@ -129,7 +129,9 @@
                         native_widget_delegate_);
 
   HWND parent_hwnd = NULL;
-  if (params.parent && params.parent->GetHost())
+  if (params.parent_widget)
+    parent_hwnd = params.parent_widget;
+  else if (params.parent && params.parent->GetHost())
     parent_hwnd = params.parent->GetHost()->GetAcceleratedWidget();
 
   message_handler_->set_remove_standard_frame(params.remove_standard_frame);
@@ -775,6 +777,7 @@
 
 void DesktopWindowTreeHostWin::HandleNativeFocus(HWND last_focused_window) {
   // TODO(beng): inform the native_widget_delegate_.
+  GetWidget()->GetNativeWindow()->Focus();
   InputMethod* input_method = GetInputMethod();
   if (input_method)
     input_method->OnFocus();
@@ -782,6 +785,7 @@
 
 void DesktopWindowTreeHostWin::HandleNativeBlur(HWND focused_window) {
   // TODO(beng): inform the native_widget_delegate_.
+  GetWidget()->GetNativeWindow()->Blur();
   InputMethod* input_method = GetInputMethod();
   if (input_method)
     input_method->OnBlur();
Index: desktop_aura/desktop_window_tree_host_x11.cc
===================================================================
--- desktop_aura/desktop_window_tree_host_x11.cc	(revision 272007)
+++ desktop_aura/desktop_window_tree_host_x11.cc	(working copy)
@@ -143,7 +143,8 @@
       window_parent_(NULL),
       window_shape_(NULL),
       custom_window_shape_(false),
-      urgency_hint_set_(false) {
+      urgency_hint_set_(false),
+      xwindow_destroyed_(false) {
 }
 
 DesktopWindowTreeHostX11::~DesktopWindowTreeHostX11() {
@@ -332,7 +333,8 @@
   // Actually free our native resources.
   if (ui::PlatformEventSource::GetInstance())
     ui::PlatformEventSource::GetInstance()->RemovePlatformEventDispatcher(this);
-  XDestroyWindow(xdisplay_, xwindow_);
+  if (!xwindow_destroyed_)
+    XDestroyWindow(xdisplay_, xwindow_);
   xwindow_ = None;
 
   desktop_native_widget_aura_->OnHostClosed();
@@ -998,9 +1000,13 @@
     }
   }
 
+  gfx::AcceleratedWidget parent_widget = params.parent_widget;
+  if (parent_widget == gfx::kNullAcceleratedWidget)
+    parent_widget = x_root_window_;
+
   bounds_ = params.bounds;
   xwindow_ = XCreateWindow(
-      xdisplay_, x_root_window_,
+      xdisplay_, parent_widget,
       bounds_.x(), bounds_.y(),
       bounds_.width(), bounds_.height(),
       0,               // border width
@@ -1503,6 +1509,10 @@
       }
       break;
     }
+    case DestroyNotify:
+      xwindow_destroyed_ = true;
+      CloseNow();
+      break;
     case FocusOut:
       if (xev->xfocus.mode != NotifyGrab) {
         ReleaseCapture();
Index: desktop_aura/desktop_window_tree_host_x11.h
===================================================================
--- desktop_aura/desktop_window_tree_host_x11.h	(revision 272007)
+++ desktop_aura/desktop_window_tree_host_x11.h	(working copy)
@@ -319,6 +319,9 @@
   // the frame when |xwindow_| gains focus or handles a mouse button event.
   bool urgency_hint_set_;
 
+  // True if the xwindow has already been destroyed.
+  bool xwindow_destroyed_;
+
   DISALLOW_COPY_AND_ASSIGN(DesktopWindowTreeHostX11);
 };
 
Index: widget.cc
===================================================================
--- widget.cc	(revision 272007)
+++ widget.cc	(working copy)
@@ -116,6 +116,7 @@
       show_state(ui::SHOW_STATE_DEFAULT),
       double_buffer(false),
       parent(NULL),
+      parent_widget(gfx::kNullAcceleratedWidget),
       native_widget(NULL),
       desktop_window_tree_host(NULL),
       top_level(false),
@@ -141,6 +142,7 @@
       show_state(ui::SHOW_STATE_DEFAULT),
       double_buffer(false),
       parent(NULL),
+      parent_widget(gfx::kNullAcceleratedWidget),
       native_widget(NULL),
       desktop_window_tree_host(NULL),
       top_level(false),
@@ -398,7 +400,12 @@
       Minimize();
   } else if (params.delegate) {
     SetContentsView(params.delegate->GetContentsView());
-    SetInitialBoundsForFramelessWindow(params.bounds);
+    if (params.parent_widget) {
+      // Set the bounds directly instead of applying an inset.
+      SetBounds(params.bounds);
+    } else {
+      SetInitialBoundsForFramelessWindow(params.bounds);
+    }
   }
   native_widget_initialized_ = true;
 }
Index: widget.h
===================================================================
--- widget.h	(revision 272007)
+++ widget.h	(working copy)
@@ -213,6 +213,7 @@
     // Should the widget be double buffered? Default is false.
     bool double_buffer;
     gfx::NativeView parent;
+    gfx::AcceleratedWidget parent_widget;
     // Specifies the initial bounds of the Widget. Default is empty, which means
     // the NativeWidget may specify a default size. If the parent is specified,
     // |bounds| is in the parent's coordinate system. If the parent is not