diff --git a/ide/MoonshineSharedCore/src/actionScripts/plugin/templating/settings/renderer/TemplateRenderer.mxml b/ide/MoonshineSharedCore/src/actionScripts/plugin/templating/settings/renderer/TemplateRenderer.mxml
index 37e43cda3..54433c3d5 100644
--- a/ide/MoonshineSharedCore/src/actionScripts/plugin/templating/settings/renderer/TemplateRenderer.mxml
+++ b/ide/MoonshineSharedCore/src/actionScripts/plugin/templating/settings/renderer/TemplateRenderer.mxml
@@ -85,20 +85,14 @@
 			private function rename():void
 			{
 				isProject = setting.customTemplate.fileBridge.isDirectory;
+				txtRename.prompt = isProject ? "Enter a name" : "Enter a name and extension";
 				
 				// show the file name cutting down .template word
-				if (!isProject)
-				{
-					var tmpSplit:Array = setting.label.split(".");
-					tmpSplit.pop(); // .pop twice as 1. ".template", 2. extension
-					txtRenameExt.text = tmpSplit.pop();
-					txtRename.text = tmpSplit.join(".");
-				}
-				else
-					txtRename.text = setting.label;
+				var lastIndex:int = setting.label.indexOf(".template");
+				txtRename.text = (lastIndex != -1) ? setting.label.substring(0, lastIndex) : setting.label;
 				
 				lblName.visible = false;
-				hgEdit.visible = true;
+				txtRename.visible = true;
 				btnsRegular.includeInLayout = btnsRegular.visible = false;
 				btnsRename.includeInLayout = btnsRename.visible = true;
 				
@@ -107,13 +101,13 @@
 			
 			protected function renameDone(event:MouseEvent):void
 			{
-				if (StringUtil.trim(txtRename.text).length == 0 || (!isProject && StringUtil.trim(txtRenameExt.text).length == 0))
+				if (StringUtil.trim(txtRename.text).length == 0 || (!isProject && txtRename.text.split(".").length < 2))
 				{
-					Alert.show("Please enter a valid file name and extension.", "Error!");
+					Alert.show("Please enter a valid file "+ (isProject ? "name." : "name with extension."), "Error!");
 					return;
 				}
 				
-				dispatchEvent(new GeneralEvent(GeneralEvent.DONE, txtRename.text +(isProject ? "" : "."+ txtRenameExt.text)));
+				dispatchEvent(new GeneralEvent(GeneralEvent.DONE, txtRename.text));
 				
 				// when done
 				renameCancel(null);
@@ -122,7 +116,7 @@
 			protected function renameCancel(event:MouseEvent):void
 			{
 				lblName.visible = true;
-				hgEdit.visible = false;
+				txtRename.visible = false;
 				btnsRegular.includeInLayout = btnsRegular.visible = true;
 				btnsRename.includeInLayout = btnsRename.visible = false;
 			}
@@ -132,26 +126,13 @@
 	
 	<s:HGroup width="100%" verticalAlign="middle">
 		<s:Group autoLayout="true" width="100%">
-			<s:HGroup id="hgEdit" 
-					  width="100%" visible="false" verticalAlign="bottom" gap="0">
-				<s:TextInput id="txtRename"
-							 styleName="uiTextSettingsValue"
-							 borderVisible="false" width="100%"
-							 contentBackgroundAlpha="1"
-							 unfocusedTextSelectionColor="#a8c6ee"
-							 focusAlpha="0" paddingLeft="0"
-							 prompt="Enter a template name"/>
-				<s:Label text="." paddingBottom="4" visible="{!isProject}" includeInLayout="{!isProject}"/>
-				<s:TextInput id="txtRenameExt"
-							 styleName="uiTextSettingsValue"
-							 width="80" maxChars="8"
-							 borderVisible="false"
-							 contentBackgroundAlpha="1"
-							 unfocusedTextSelectionColor="#a8c6ee"
-							 focusAlpha="0" paddingLeft="0"
-							 prompt="Extension"
-							 visible="{!isProject}" includeInLayout="{!isProject}"/>
-			</s:HGroup>
+			<s:TextInput id="txtRename"
+						 styleName="uiTextSettingsValue"
+						 borderVisible="false" width="100%"
+						 contentBackgroundAlpha="1"
+						 unfocusedTextSelectionColor="#a8c6ee"
+						 focusAlpha="0" paddingLeft="0"
+						 visible="false"/>
 			<s:Label id="lblName" 
 					 styleName="uiTextSettingsValue"
 					 text="{setting.label}"
diff --git a/ide/MoonshineSharedCore/src/actionScripts/ui/renderers/FTETreeItemRenderer.as b/ide/MoonshineSharedCore/src/actionScripts/ui/renderers/FTETreeItemRenderer.as
index 22589708c..e9062f74e 100644
--- a/ide/MoonshineSharedCore/src/actionScripts/ui/renderers/FTETreeItemRenderer.as
+++ b/ide/MoonshineSharedCore/src/actionScripts/ui/renderers/FTETreeItemRenderer.as
@@ -279,7 +279,10 @@ package actionScripts.ui.renderers
 					}
 					
 					//contextMenu.addItem(new ContextMenuItem(null, true));
-					model.contextMenuCore.addItem(contextMenu, model.contextMenuCore.getContextMenuItem(ConstantsCoreVO.IS_AIR ? SETTINGS : PROJECT_SETUP, redispatch, Event.SELECT));
+					if (ConstantsCoreVO.IS_AIR && !fw.projectReference.isTemplate)
+					{
+						model.contextMenuCore.addItem(contextMenu, model.contextMenuCore.getContextMenuItem(ConstantsCoreVO.IS_AIR ? SETTINGS : PROJECT_SETUP, redispatch, Event.SELECT));
+					}
 					model.contextMenuCore.addItem(contextMenu, model.contextMenuCore.getContextMenuItem(CLOSE, redispatch, Event.SELECT));
 					if (ConstantsCoreVO.IS_AIR)
 					{
diff --git a/ide/MoonshineSharedCore/src/actionScripts/utils/UtilsCore.as b/ide/MoonshineSharedCore/src/actionScripts/utils/UtilsCore.as
index 4db36d215..eecc4ac2b 100644
--- a/ide/MoonshineSharedCore/src/actionScripts/utils/UtilsCore.as
+++ b/ide/MoonshineSharedCore/src/actionScripts/utils/UtilsCore.as
@@ -24,11 +24,13 @@ package actionScripts.utils
 	import flash.system.Capabilities;
 	
 	import mx.collections.ArrayCollection;
+	import mx.collections.ICollectionView;
 	import mx.core.FlexGlobals;
 	import mx.core.UIComponent;
 	import mx.events.CloseEvent;
 	import mx.events.ToolTipEvent;
 	import mx.managers.PopUpManager;
+	import mx.utils.UIDUtil;
 	
 	import actionScripts.events.ProjectEvent;
 	import actionScripts.factory.FileLocation;
@@ -388,6 +390,20 @@ package actionScripts.utils
 			return wrapper;
 		}
 		
+		/**
+		 * Finding fileWrapper by its UDID
+		 */
+		public static function findFileWrapperIndexByID(wrapperToSearch:FileWrapper, searchIn:ICollectionView):int
+		{
+			var uidToSearch:String = UIDUtil.getUID(wrapperToSearch);
+			for (var i:String in searchIn)
+			{
+				if (UIDUtil.getUID(searchIn[i]) == uidToSearch) return int(i);
+			}
+			
+			return -1;
+		}
+		
 		/**
 		 * Validate a given path compared with a project's
 		 * default source path
diff --git a/ide/MoonshineSharedCore/src/components/views/project/TreeView.mxml b/ide/MoonshineSharedCore/src/components/views/project/TreeView.mxml
index 27ec6371c..248002be4 100644
--- a/ide/MoonshineSharedCore/src/components/views/project/TreeView.mxml
+++ b/ide/MoonshineSharedCore/src/components/views/project/TreeView.mxml
@@ -261,7 +261,12 @@
 					case 'remove':
 					{
 						project = event.items[0] as ProjectVO;
-						projectFolders.removeItemAt(projectFolders.getItemIndex(project.projectFolder));
+						// after a project renaming, and updating its internal fields
+						// direct search (i.e. getItemIndex) of fileWrapper object in the collection
+						// returns -1 even the fileWrapper object and object inside the collection has same
+						// instance id. Thus a different approach it needs to parse by its uid value
+						var tmpFWIndex:int = UtilsCore.findFileWrapperIndexByID(project.projectFolder, projectFolders);
+						projectFolders.removeItemAt(tmpFWIndex);
 						break;
 					}
 					case 'add':
@@ -358,10 +363,7 @@
 					}
 					case FTETreeItemRenderer.CLOSE:
 					{
-						project = getProjectFromProjectFolder(fileWrapper);
-						dispatcher.dispatchEvent(
-							new ProjectEvent(ProjectEvent.REMOVE_PROJECT, project)
-						);
+						onFileDeletedOnServer(fileWrapper);
 						break;
 					}
 					case FTETreeItemRenderer.DELETE:
@@ -545,10 +547,9 @@
 						
 						setTimeout(function():void
 						{
-							var tmpFileW:FileWrapper = UtilsCore.findFileWrapperAgainstProject(i.projectFolder, null, i.projectFolder);
-							tree.selectedItem = tmpFileW;
+							tree.selectedItem = i.projectFolder;
 							
-							var indexToItemRenderer:int = tree.getItemIndex(tmpFileW);
+							var indexToItemRenderer:int = tree.getItemIndex(i.projectFolder);
 							tree.callLater(tree.scrollToIndex, [indexToItemRenderer]);
 						}, 300);
 						break;