diff --git a/gdk/gdkdraw.c b/gdk/gdkdraw.c
index 869d535..44652bc 100644
--- a/gdk/gdkdraw.c
+++ b/gdk/gdkdraw.c
@@ -752,9 +752,6 @@ gdk_draw_image (GdkDrawable *drawable,
  * On older X servers, rendering pixbufs with an alpha channel involves round 
  * trips to the X server, and may be somewhat slow.
  *
- * The clip mask of @gc is ignored, but clip rectangles and clip regions work
- * fine.
- *
  * If GDK is built with the Sun mediaLib library, the gdk_draw_pixbuf
  * function is accelerated using mediaLib, which provides hardware
  * acceleration on Intel, AMD, and Sparc chipsets.  If desired, mediaLib
diff --git a/gdk/gdkgc.c b/gdk/gdkgc.c
index b4c6f81..699cebf 100644
--- a/gdk/gdkgc.c
+++ b/gdk/gdkgc.c
@@ -646,24 +646,49 @@ _gdk_gc_add_drawable_clip (GdkGC     *gc,
       GdkPixmap *new_mask;
       GdkGC *tmp_gc;
       GdkColor black = {0, 0, 0, 0};
+      GdkRectangle r;
+      GdkOverlapType overlap;
       
-      priv->old_clip_mask = g_object_ref (priv->clip_mask);
-      gdk_drawable_get_size (priv->old_clip_mask, &w, &h);
-
-      new_mask = gdk_pixmap_new	(priv->old_clip_mask, w, h, -1);
-      tmp_gc = _gdk_drawable_get_scratch_gc ((GdkDrawable *)new_mask, FALSE);
-
-      gdk_gc_set_foreground (tmp_gc, &black);
-      gdk_draw_rectangle (new_mask, tmp_gc, TRUE, 0, 0, -1, -1);
-      _gdk_gc_set_clip_region_internal (tmp_gc, region, TRUE); /* Takes ownership of region */
-      gdk_draw_drawable  (new_mask,
-			  tmp_gc,
-			  priv->old_clip_mask,
-			  0, 0,
-			  0, 0,
-			  -1, -1);
-      gdk_gc_set_clip_region (tmp_gc, NULL);
-      gdk_gc_set_clip_mask (gc, new_mask);
+      gdk_drawable_get_size (priv->clip_mask, &w, &h);
+
+      r.x = 0;
+      r.y = 0;
+      r.width = w;
+      r.height = h;
+
+      /* Its quite common to expose areas that are completely in or outside
+       * the region, so we try to avoid allocating bitmaps that are just fully
+       * set or completely unset.
+       */ 
+      overlap = gdk_region_rect_in (region, &r);
+      if (overlap == GDK_OVERLAP_RECTANGLE_PART)
+	{
+	   /* The region and the mask intersect, create a new clip mask that
+	      includes both areas */
+	  priv->old_clip_mask = g_object_ref (priv->clip_mask);
+	  new_mask = gdk_pixmap_new (priv->old_clip_mask, w, h, -1);
+	  tmp_gc = _gdk_drawable_get_scratch_gc ((GdkDrawable *)new_mask, FALSE);
+
+	  gdk_gc_set_foreground (tmp_gc, &black);
+	  gdk_draw_rectangle (new_mask, tmp_gc, TRUE, 0, 0, -1, -1);
+	  _gdk_gc_set_clip_region_internal (tmp_gc, region, TRUE); /* Takes ownership of region */
+	  gdk_draw_drawable  (new_mask,
+			      tmp_gc,
+			      priv->old_clip_mask,
+			      0, 0,
+			      0, 0,
+			      -1, -1);
+	  gdk_gc_set_clip_region (tmp_gc, NULL);
+	  gdk_gc_set_clip_mask (gc, new_mask);
+	}
+      else if (overlap == GDK_OVERLAP_RECTANGLE_OUT)
+	{
+	  GdkRegion *empty = gdk_region_new ();
+
+	  priv->old_clip_mask = g_object_ref (priv->clip_mask);
+	  _gdk_windowing_gc_set_clip_region (gc, empty, FALSE);
+	  gdk_region_destroy (empty);
+	}
     }
   else
     {
@@ -775,6 +800,24 @@ _gdk_gc_get_clip_region (GdkGC *gc)
 }
 
 /**
+ * _gdk_gc_get_clip_mask:
+ * @gc: a #GdkGC
+ *
+ * Gets the current clip mask for @gc, if any.
+ *
+ * Return value: the clip mask for the GC, or %NULL.
+ *   (if a clip region is set, the return will be %NULL)
+ *   This value is owned by the GC and must not be freed.
+ **/
+GdkBitmap *
+_gdk_gc_get_clip_mask (GdkGC *gc)
+{
+  g_return_val_if_fail (GDK_IS_GC (gc), NULL);
+
+  return GDK_GC_GET_PRIVATE (gc)->clip_mask;
+}
+
+/**
  * _gdk_gc_get_fill:
  * @gc: a #GdkGC
  * 
diff --git a/gdk/gdkinternals.h b/gdk/gdkinternals.h
index 946c3f9..c984386 100644
--- a/gdk/gdkinternals.h
+++ b/gdk/gdkinternals.h
@@ -399,6 +399,7 @@ void _gdk_gc_init (GdkGC           *gc,
 		   GdkGCValuesMask  values_mask);
 
 GdkRegion *_gdk_gc_get_clip_region (GdkGC *gc);
+GdkBitmap *_gdk_gc_get_clip_mask   (GdkGC *gc);
 gboolean   _gdk_gc_get_exposures   (GdkGC *gc);
 GdkFill    _gdk_gc_get_fill        (GdkGC *gc);
 GdkPixmap *_gdk_gc_get_tile        (GdkGC *gc);
diff --git a/gdk/gdkwindow.c b/gdk/gdkwindow.c
index 6e72cab..d9b1e5b 100644
--- a/gdk/gdkwindow.c
+++ b/gdk/gdkwindow.c
@@ -639,7 +639,12 @@ remove_child_area (GdkWindowObject *private,
       child_region = gdk_region_rectangle (&r);
 
       if (child->shape)
-	gdk_region_intersect (child_region, child->shape);
+	{
+	  /* Adjust shape region to parent window coords */
+	  gdk_region_offset (child->shape, child->x, child->y);
+	  gdk_region_intersect (child_region, child->shape);
+	  gdk_region_offset (child->shape, -child->x, -child->y);
+	}
       else if (private->window_type == GDK_WINDOW_FOREIGN)
 	{
 	  shape = _gdk_windowing_window_get_shape ((GdkWindow *)child);
@@ -4660,7 +4665,12 @@ _gdk_window_process_updates_recurse (GdkWindow *window,
 
       child_region = gdk_region_rectangle (&r);
       if (child->shape)
-	gdk_region_intersect (child_region, child->shape);
+	{
+	  /* Adjust shape region to parent window coords */
+	  gdk_region_offset (child->shape, child->x, child->y);
+	  gdk_region_intersect (child_region, child->shape);
+	  gdk_region_offset (child->shape, -child->x, -child->y);
+	}
 
       if (child->impl == private->impl)
 	{
diff --git a/gdk/x11/gdkdrawable-x11.c b/gdk/x11/gdkdrawable-x11.c
index 537a47e..b2cac29 100644
--- a/gdk/x11/gdkdrawable-x11.c
+++ b/gdk/x11/gdkdrawable-x11.c
@@ -388,9 +388,22 @@ gdk_x11_drawable_update_picture_clip (GdkDrawable *drawable,
   else
     {
       XRenderPictureAttributes pa;
-      pa.clip_mask = None;
+      GdkBitmap *mask;
+      gulong pa_mask;
+
+      pa_mask = CPClipMask;
+      if (gc && (mask = _gdk_gc_get_clip_mask (gc)))
+	{
+	  pa.clip_mask = GDK_PIXMAP_XID (mask);
+	  pa.clip_x_origin = gc->clip_x_origin;
+	  pa.clip_y_origin = gc->clip_y_origin;
+	  pa_mask |= CPClipXOrigin | CPClipYOrigin;
+	}
+      else
+	pa.clip_mask = None;
+
       XRenderChangePicture (xdisplay, picture,
-			    CPClipMask, &pa);
+			    pa_mask, &pa);
     }
 }