diff --git a/ChangeLog b/ChangeLog
index 5ee743307a..5cee8530b1 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2007-03-08  Mathias Hasselmann <mathias.hasselmann@gmx.de>
+
+	* gtk/gtkscrolledindow.c: Improve look of GtkScrolledWindow on Windows
+	by implementing a scrollbars-within-bevel style property. (#168326)
+	
 2007-03-08  Mathias Hasselmann <mathias.hasselmann@gmx.de>
 
 	* gtk/gtkfilesystemwin32.c: Use Windows shell icons. Icons are
diff --git a/gtk/gtkscrolledwindow.c b/gtk/gtkscrolledwindow.c
index 3a15b5106e..a7b71d1f64 100644
--- a/gtk/gtkscrolledwindow.c
+++ b/gtk/gtkscrolledwindow.c
@@ -280,6 +280,13 @@ gtk_scrolled_window_class_init (GtkScrolledWindowClass *class)
 						      GTK_SHADOW_NONE,
                                                       GTK_PARAM_READABLE | GTK_PARAM_WRITABLE));
 
+  gtk_widget_class_install_style_property (widget_class,
+					   g_param_spec_boolean ("scrollbars-within-bevel",
+							         P_("Scrollbars within bevel"),
+							         P_("Place scrollbars within the scrolled window's bevel"),
+							         FALSE,
+							         GTK_PARAM_READABLE));
+
   gtk_widget_class_install_style_property (widget_class,
 					   g_param_spec_int ("scrollbar-spacing",
 							     P_("Scrollbar spacing"),
@@ -938,17 +945,43 @@ static void
 gtk_scrolled_window_paint (GtkWidget    *widget,
 			   GdkRectangle *area)
 {
-  GtkAllocation relative_allocation;
   GtkScrolledWindow *scrolled_window = GTK_SCROLLED_WINDOW (widget);
 
   if (scrolled_window->shadow_type != GTK_SHADOW_NONE)
     {
+      GtkAllocation relative_allocation;
+      gboolean scrollbars_within_bevel;
+      gint scrollbar_spacing;
+
       gtk_scrolled_window_relative_allocation (widget, &relative_allocation);
+      gtk_widget_style_get (widget, "scrollbars-within-bevel", &scrollbars_within_bevel, NULL);
+      scrollbar_spacing = _gtk_scrolled_window_get_scrollbar_spacing (scrolled_window);
       
       relative_allocation.x -= widget->style->xthickness;
       relative_allocation.y -= widget->style->ythickness;
       relative_allocation.width += 2 * widget->style->xthickness;
       relative_allocation.height += 2 * widget->style->ythickness;
+
+      if (scrollbars_within_bevel)
+        {
+          if (GTK_WIDGET_VISIBLE (scrolled_window->hscrollbar))
+            {
+              gint dy = scrolled_window->hscrollbar->allocation.height + scrollbar_spacing;
+              relative_allocation.height += dy;
+
+              if (relative_allocation.y)
+                relative_allocation.y -= dy;
+            }
+
+          if (GTK_WIDGET_VISIBLE (scrolled_window->vscrollbar))
+            {
+              gint dx = scrolled_window->vscrollbar->allocation.width + scrollbar_spacing;
+              relative_allocation.width += dx;
+
+              if (relative_allocation.x)
+                relative_allocation.x -= dx;
+            }
+        }
       
       gtk_paint_shadow (widget->style, widget->window,
 			GTK_STATE_NORMAL, scrolled_window->shadow_type,
@@ -1291,6 +1324,7 @@ gtk_scrolled_window_size_allocate (GtkWidget     *widget,
   GtkBin *bin;
   GtkAllocation relative_allocation;
   GtkAllocation child_allocation;
+  gboolean scrollbars_within_bevel;
   gint scrollbar_spacing;
   
   g_return_if_fail (GTK_IS_SCROLLED_WINDOW (widget));
@@ -1300,6 +1334,7 @@ gtk_scrolled_window_size_allocate (GtkWidget     *widget,
   bin = GTK_BIN (scrolled_window);
 
   scrollbar_spacing = _gtk_scrolled_window_get_scrollbar_spacing (scrolled_window);
+  gtk_widget_style_get (widget, "scrollbars-within-bevel", &scrollbars_within_bevel, NULL);
 
   priv = GTK_SCROLLED_WINDOW_GET_PRIVATE (scrolled_window);
 
@@ -1389,8 +1424,20 @@ gtk_scrolled_window_size_allocate (GtkWidget     *widget,
 
       if (scrolled_window->shadow_type != GTK_SHADOW_NONE)
 	{
-	  child_allocation.x -= widget->style->xthickness;
-	  child_allocation.width += 2 * widget->style->xthickness;
+          if (!scrollbars_within_bevel)
+            {
+              child_allocation.x -= widget->style->xthickness;
+              child_allocation.width += 2 * widget->style->xthickness;
+            }
+          else if (GTK_CORNER_TOP_RIGHT == priv->real_window_placement ||
+                   GTK_CORNER_TOP_LEFT == priv->real_window_placement)
+            {
+              child_allocation.y -= widget->style->ythickness;
+            }
+          else
+            {
+              child_allocation.y += widget->style->ythickness;
+            }
 	}
 
       gtk_widget_size_allocate (scrolled_window->hscrollbar, &child_allocation);
@@ -1429,8 +1476,20 @@ gtk_scrolled_window_size_allocate (GtkWidget     *widget,
 
       if (scrolled_window->shadow_type != GTK_SHADOW_NONE)
 	{
-	  child_allocation.y -= widget->style->ythickness;
-	  child_allocation.height += 2 * widget->style->ythickness;
+          if (!scrollbars_within_bevel)
+            {
+              child_allocation.y -= widget->style->ythickness;
+	      child_allocation.height += 2 * widget->style->ythickness;
+            }
+          else if (GTK_CORNER_BOTTOM_LEFT == priv->real_window_placement ||
+                   GTK_CORNER_TOP_LEFT == priv->real_window_placement)
+            {
+              child_allocation.x -= widget->style->xthickness;
+            }
+          else
+            {
+              child_allocation.x += widget->style->xthickness;
+            }
 	}
 
       gtk_widget_size_allocate (scrolled_window->vscrollbar, &child_allocation);
diff --git a/modules/engines/ms-windows/msw_style.c b/modules/engines/ms-windows/msw_style.c
index 399d925ea3..73504beeb2 100755
--- a/modules/engines/ms-windows/msw_style.c
+++ b/modules/engines/ms-windows/msw_style.c
@@ -830,6 +830,11 @@ setup_msw_rc_style (void)
 		11);
     gtk_rc_parse_string (buf);
 
+    gtk_rc_parse_string (    
+                "style \"msw-scrolled-window\" = \"msw-default\"\n"
+                "{GtkScrolledWindow::scrollbars-within-bevel = 1}\n"
+                "class \"GtkScrolledWindow\" style \"msw-scrolled-window\"\n");
+
     /* radio/check button sizes */
     g_snprintf (buf, sizeof (buf),
 		"style \"msw-checkbutton\" = \"msw-button\"\n"