diff --git a/src/app/qgsvectorlayerproperties.cpp b/src/app/qgsvectorlayerproperties.cpp
@@ -46,7 +46,6 @@
 #include "qgsvectorlayerproperties.h"
 #include "qgsconfig.h"
 #include "qgsvectordataprovider.h"
-#include "qgsvectoroverlayplugin.h"
 #include "qgsquerybuilder.h"
 #include "qgsdatasourceuri.h"
 
@@ -480,12 +479,6 @@ void QgsVectorLayerProperties::apply()
   //apply diagram settings
   diagramPropertiesDialog->apply();
 
-  //apply overlay dialogs
-  for ( QList<QgsApplyDialog*>::iterator it = mOverlayDialogs.begin(); it != mOverlayDialogs.end(); ++it )
-  {
-    ( *it )->apply();
-  }
-
   //layer title and abstract
   layer->setTitle( mLayerTitleLineEdit->text() );
   layer->setAbstract( mLayerAbstractTextEdit->toPlainText() );
@@ -899,34 +892,6 @@ void QgsVectorLayerProperties::showListOfStylesFromDatabase()
 
 }
 
-QList<QgsVectorOverlayPlugin*> QgsVectorLayerProperties::overlayPlugins() const
-{
-  QList<QgsVectorOverlayPlugin*> pluginList;
-
-  QgisPlugin* thePlugin = 0;
-  QgsVectorOverlayPlugin* theOverlayPlugin = 0;
-
-  QList<QgsPluginMetadata*> pluginData = QgsPluginRegistry::instance()->pluginData();
-  for ( QList<QgsPluginMetadata*>::iterator it = pluginData.begin(); it != pluginData.end(); ++it )
-  {
-    if ( *it )
-    {
-      thePlugin = ( *it )->plugin();
-      if ( thePlugin && thePlugin->type() == QgisPlugin::VECTOR_OVERLAY )
-      {
-        theOverlayPlugin = dynamic_cast<QgsVectorOverlayPlugin *>( thePlugin );
-        if ( theOverlayPlugin )
-        {
-          pluginList.push_back( theOverlayPlugin );
-        }
-      }
-    }
-  }
-
-  return pluginList;
-}
-
-
 void QgsVectorLayerProperties::on_mButtonAddJoin_clicked()
 {
   QgsAddJoinDialog d( layer );

diff --git a/src/app/qgsvectorlayerproperties.h b/src/app/qgsvectorlayerproperties.h
@@ -37,7 +37,6 @@ class QgsAttributeActionDialog;
 class QgsApplyDialog;
 class QgsLabelDialog;
 class QgsVectorLayer;
-class QgsVectorOverlayPlugin;
 class QgsLabelingGui;
 class QgsDiagramProperties;
 class QgsFieldsProperties;
@@ -168,14 +167,8 @@ class QgsVectorLayerProperties : public QgsOptionsDialogBase, private Ui::QgsVec
     /**Fields dialog. If apply is pressed, options are applied to vector's diagrams*/
     QgsFieldsProperties* mFieldsPropertiesDialog;
 
-
-    QList<QgsApplyDialog*> mOverlayDialogs;
-
     void initDiagramTab();
 
-    /**Requests all overlay plugis from the plugin registry. Useful for inserting their dialogs as new tabs*/
-    QList<QgsVectorOverlayPlugin*> overlayPlugins() const;
-
     /**Buffer pixmap which takes the picture of renderers before they are assigned to the vector layer*/
     //QPixmap bufferPixmap;
 

diff --git a/src/core/CMakeLists.txt b/src/core/CMakeLists.txt
@@ -51,7 +51,6 @@ SET(QGIS_CORE_SRCS
   qgscacheindex.cpp
   qgscacheindexfeatureid.cpp
   qgsbrowsermodel.cpp
-  qgscentralpointpositionmanager.cpp
   qgsclipper.cpp
   qgscontexthelp.cpp
   qgscontexthelp_texts.cpp
@@ -93,11 +92,8 @@ SET(QGIS_CORE_SRCS
   qgscredentials.cpp
   qgsofflineediting.cpp
   qgsogcutils.cpp
-  qgsoverlayobject.cpp
   qgsowsconnection.cpp
-  qgspalgeometry.cpp
   qgspallabeling.cpp
-  qgspalobjectpositionmanager.cpp
   qgspluginlayer.cpp
   qgspluginlayerregistry.cpp
   qgspoint.cpp
@@ -129,7 +125,6 @@ SET(QGIS_CORE_SRCS
   qgsvectorlayerimport.cpp
   qgsvectorlayerjoinbuffer.cpp
   qgsvectorlayerundocommand.cpp
-  qgsvectoroverlay.cpp
 
   qgsnetworkaccessmanager.cpp
 
@@ -379,7 +374,6 @@ SET(QGIS_CORE_HDRS
   qgscachedfeatureiterator.h
   qgscacheindex.h
   qgscacheindexfeatureid.h
-  qgscentralpointpositionmanager.h
   qgsclipper.h
   qgscontexthelp.h
   qgscoordinatetransform.h
@@ -415,10 +409,8 @@ SET(QGIS_CORE_HDRS
   qgscredentials.h
   qgsofflineediting.h
   qgsogcutils.h
-  qgsoverlayobjectpositionmanager.h
   qgsowsconnection.h
   qgspallabeling.h
-  qgspalobjectpositionmanager.h
   qgspluginlayer.h
   qgspluginlayerregistry.h
   qgspoint.h
@@ -448,7 +440,6 @@ SET(QGIS_CORE_HDRS
   qgsvectorlayerfeatureiterator.h
   qgsvectorlayerimport.h
   qgsvectorlayerundocommand.h
-  qgsvectoroverlay.h
   qgstolerance.h
 
   diagram/qgsdiagram.h

diff --git a/src/core/qgscentralpointpositionmanager.cpp b/src/core/qgscentralpointpositionmanager.cpp
diff --git a/src/core/qgscentralpointpositionmanager.h b/src/core/qgscentralpointpositionmanager.h
diff --git a/src/core/qgsmaprenderer.cpp b/src/core/qgsmaprenderer.cpp
@@ -26,12 +26,8 @@
 #include "qgsmaplayer.h"
 #include "qgsmaplayerregistry.h"
 #include "qgsdistancearea.h"
-#include "qgscentralpointpositionmanager.h"
-#include "qgsoverlayobjectpositionmanager.h"
-#include "qgspalobjectpositionmanager.h"
 #include "qgsproject.h"
 #include "qgsvectorlayer.h"
-#include "qgsvectoroverlay.h"
 
 
 #include <QDomDocument>
@@ -345,9 +341,6 @@ void QgsMapRenderer::render( QPainter* painter, double* forceWidthScale )
     }
   }
 
-  QgsOverlayObjectPositionManager* overlayManager = overlayManagerFromSettings();
-  QList<QgsVectorOverlay*> allOverlayList; //list of all overlays, used to draw them after layers have been rendered
-
   // render all layers in the stack, starting at the base
   QListIterator<QString> li( mLayerSet );
   li.toBack();
@@ -446,30 +439,6 @@ void QgsMapRenderer::render( QPainter* painter, double* forceWidthScale )
         scaleRaster = true;
       }
 
-
-      //create overlay objects for features within the view extent
-      if ( ml->type() == QgsMapLayer::VectorLayer && overlayManager )
-      {
-        QgsVectorLayer* vl = qobject_cast<QgsVectorLayer *>( ml );
-        if ( vl )
-        {
-          QList<QgsVectorOverlay*> thisLayerOverlayList;
-          vl->vectorOverlays( thisLayerOverlayList );
-
-          QList<QgsVectorOverlay*>::iterator overlayIt = thisLayerOverlayList.begin();
-          for ( ; overlayIt != thisLayerOverlayList.end(); ++overlayIt )
-          {
-            if (( *overlayIt )->displayFlag() )
-            {
-              ( *overlayIt )->createOverlayObjects( mRenderContext );
-              allOverlayList.push_back( *overlayIt );
-            }
-          }
-
-          overlayManager->addLayer( vl, thisLayerOverlayList );
-        }
-      }
-
       // Force render of layers that are being edited
       // or if there's a labeling engine that needs the layer to register features
       if ( ml->type() == QgsMapLayer::VectorLayer )
@@ -693,20 +662,6 @@ void QgsMapRenderer::render( QPainter* painter, double* forceWidthScale )
     }
   } // if (!mOverview)
 
-  //find overlay positions and draw the vector overlays
-  if ( overlayManager && allOverlayList.size() > 0 )
-  {
-    overlayManager->findObjectPositions( mRenderContext, mScaleCalculator->mapUnits() );
-    //draw all the overlays
-    QList<QgsVectorOverlay*>::iterator allOverlayIt = allOverlayList.begin();
-    for ( ; allOverlayIt != allOverlayList.end(); ++allOverlayIt )
-    {
-      ( *allOverlayIt )->drawOverlayObjects( mRenderContext );
-    }
-    overlayManager->removeLayers();
-  }
-
-  delete overlayManager;
   // make sure progress bar arrives at 100%!
   emit drawingProgress( 1, 1 );
 
@@ -1059,42 +1014,6 @@ QStringList& QgsMapRenderer::layerSet()
   return mLayerSet;
 }
 
-QgsOverlayObjectPositionManager* QgsMapRenderer::overlayManagerFromSettings()
-{
-  QSettings settings;
-  QString overlayAlgorithmQString = settings.value( "qgis/overlayPlacementAlgorithm", "Central point" ).toString();
-
-  QgsOverlayObjectPositionManager* result = 0;
-
-  if ( overlayAlgorithmQString != "Central point" )
-  {
-    QgsPALObjectPositionManager* palManager = new QgsPALObjectPositionManager();
-    if ( overlayAlgorithmQString == "Chain" )
-    {
-      palManager->setPlacementAlgorithm( "Chain" );
-    }
-    else if ( overlayAlgorithmQString == "Popmusic tabu chain" )
-    {
-      palManager->setPlacementAlgorithm( "Popmusic tabu chain" );
-    }
-    else if ( overlayAlgorithmQString == "Popmusic tabu" )
-    {
-      palManager->setPlacementAlgorithm( "Popmusic tabu" );
-    }
-    else if ( overlayAlgorithmQString == "Popmusic chain" )
-    {
-      palManager->setPlacementAlgorithm( "Popmusic chain" );
-    }
-    result = palManager;
-  }
-  else
-  {
-    result = new QgsCentralPointPositionManager();
-  }
-
-  return result;
-}
-
 bool QgsMapRenderer::readXML( QDomNode & theNode )
 {
   QDomNode myNode = theNode.namedItem( "units" );

diff --git a/src/core/qgsmaprenderer.h b/src/core/qgsmaprenderer.h
@@ -37,7 +37,6 @@ class QgsMapRenderer;
 class QgsScaleCalculator;
 class QgsCoordinateReferenceSystem;
 class QgsDistanceArea;
-class QgsOverlayObjectPositionManager;
 class QgsVectorLayer;
 
 class QgsPalLayerSettings;
@@ -323,10 +322,6 @@ class CORE_EXPORT QgsMapRenderer : public QObject
      */
     bool splitLayersExtent( QgsMapLayer* layer, QgsRectangle& extent, QgsRectangle& r2 );
 
-    /**Creates an overlay object position manager subclass according to the current settings
-    @note this method was added in version 1.1*/
-    QgsOverlayObjectPositionManager* overlayManagerFromSettings();
-
     //! indicates drawing in progress
     static bool mDrawing;
 

diff --git a/src/core/qgsoverlayobject.cpp b/src/core/qgsoverlayobject.cpp
diff --git a/src/core/qgsoverlayobject.h b/src/core/qgsoverlayobject.h
diff --git a/src/core/qgsoverlayobjectpositionmanager.h b/src/core/qgsoverlayobjectpositionmanager.h
diff --git a/src/core/qgspalgeometry.cpp b/src/core/qgspalgeometry.cpp
diff --git a/src/core/qgspalgeometry.h b/src/core/qgspalgeometry.h
diff --git a/src/core/qgspalobjectpositionmanager.cpp b/src/core/qgspalobjectpositionmanager.cpp
diff --git a/src/core/qgspalobjectpositionmanager.h b/src/core/qgspalobjectpositionmanager.h
diff --git a/src/core/qgsvectorlayer.cpp b/src/core/qgsvectorlayer.cpp
@@ -61,7 +61,6 @@
 #include "qgsvectorlayerfeatureiterator.h"
 #include "qgsvectorlayerjoinbuffer.h"
 #include "qgsvectorlayerundocommand.h"
-#include "qgsvectoroverlay.h"
 #include "qgsmaplayerregistry.h"
 #include "qgsclipper.h"
 #include "qgsproject.h"
@@ -202,14 +201,6 @@ QgsVectorLayer::~QgsVectorLayer()
   delete mActions;
 
   delete mRendererV2;
-
-  //delete remaining overlays
-
-  QList<QgsVectorOverlay*>::iterator overlayIt = mOverlays.begin();
-  for ( ; overlayIt != mOverlays.end(); ++overlayIt )
-  {
-    delete *overlayIt;
-  }
 }
 
 QString QgsVectorLayer::storageType() const
@@ -2382,16 +2373,6 @@ bool QgsVectorLayer::writeSymbology( QDomNode& node, QDomDocument& doc, QString&
   // add attribute actions
   mActions->writeXML( node, doc );
 
-  //save vector overlays (e.g. diagrams)
-  QList<QgsVectorOverlay*>::const_iterator overlay_it = mOverlays.constBegin();
-  for ( ; overlay_it != mOverlays.constEnd(); ++overlay_it )
-  {
-    if ( *overlay_it )
-    {
-      ( *overlay_it )->writeXML( mapLayerNode, doc );
-    }
-  }
-
   return true;
 }
 
@@ -3115,41 +3096,6 @@ void QgsVectorLayer::setLabelOnTop( int idx, bool onTop )
     mLabelOnTop[ fields[idx].name()] = onTop;
 }
 
-void QgsVectorLayer::addOverlay( QgsVectorOverlay* overlay )
-{
-  mOverlays.push_back( overlay );
-}
-
-void QgsVectorLayer::removeOverlay( const QString& typeName )
-{
-  for ( int i = mOverlays.size() - 1; i >= 0; --i )
-  {
-    if ( mOverlays.at( i )->typeName() == typeName )
-    {
-      mOverlays.removeAt( i );
-    }
-  }
-}
-
-void QgsVectorLayer::vectorOverlays( QList<QgsVectorOverlay*>& overlayList )
-{
-  overlayList = mOverlays;
-}
-
-QgsVectorOverlay* QgsVectorLayer::findOverlayByType( const QString& typeName )
-{
-  QList<QgsVectorOverlay*>::iterator it = mOverlays.begin();
-  for ( ; it != mOverlays.end(); ++it )
-  {
-    if (( *it )->typeName() == typeName )
-    {
-      return *it;
-    }
-  }
-  return 0; //not found
-}
-
-
 QgsFeatureRendererV2* QgsVectorLayer::rendererV2()
 {
   return mRendererV2;

diff --git a/src/core/qgsvectorlayer.h b/src/core/qgsvectorlayer.h
@@ -43,7 +43,6 @@ class QgsMapToPixel;
 class QgsLabel;
 class QgsRectangle;
 class QgsVectorDataProvider;
-class QgsVectorOverlay;
 class QgsSingleSymbolRendererV2;
 class QgsRectangle;
 class QgsVectorLayerJoinBuffer;
@@ -1164,26 +1163,6 @@ class CORE_EXPORT QgsVectorLayer : public QgsMapLayer
      **/
     void setLabelOnTop( int idx, bool onTop );
 
-    /**Adds a new overlay to this class. QgsVectorLayer takes ownership of the object
-     @note this method was added in version 1.1
-     */
-    void addOverlay( QgsVectorOverlay* overlay );
-
-    /**Removes all overlays of a given type
-    @note this method was added in version 1.1
-    */
-    void removeOverlay( const QString& typeName );
-
-    /**Returns pointers to the overlays of this layer
-    @note this method was added in version 1.1
-    */
-    void vectorOverlays( QList<QgsVectorOverlay*>& overlayList );
-
-    /**Returns the (first) overlay of a type, e.g. diagram or label
-    @note this method was added in version 1.1
-    */
-    QgsVectorOverlay* findOverlayByType( const QString& typeName );
-
     //! Buffer with uncommitted editing operations. Only valid after editing has been turned on.
     QgsVectorLayerEditBuffer* editBuffer() { return mEditBuffer; }
 
@@ -1539,9 +1518,6 @@ class CORE_EXPORT QgsVectorLayer : public QgsMapLayer
     /** Flag if the vertex markers should be drawn only for selection (true) or for all features (false) */
     bool mVertexMarkerOnlyForSelection;
 
-    /** List of overlays. Vector overlays will be rendered on top of all maplayers */
-    QList<QgsVectorOverlay*> mOverlays;
-
     QStringList mCommitErrors;
 
     QMap< QString, EditType > mEditTypes;

diff --git a/src/core/qgsvectoroverlay.cpp b/src/core/qgsvectoroverlay.cpp
diff --git a/src/core/qgsvectoroverlay.h b/src/core/qgsvectoroverlay.h
diff --git a/src/plugins/qgisplugin.h b/src/plugins/qgisplugin.h
@@ -66,7 +66,6 @@ class QgisPlugin
       UI = 1,                     /* user interface plug-in */
       MAPLAYER,                    /* map layer plug-in */
       RENDERER,                     /*a plugin for a new renderer class*/
-      VECTOR_OVERLAY                /*an overlay plugin. Added in version 1.1*/
     };
 
 

diff --git a/src/plugins/qgsvectoroverlayplugin.h b/src/plugins/qgsvectoroverlayplugin.h
diff --git a/src/ui/qgsoptionsbase.ui b/src/ui/qgsoptionsbase.ui
@@ -266,8 +266,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>663</width>
-                <height>564</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_28">
@@ -912,8 +912,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>663</width>
-                <height>757</height>
+                <width>670</width>
+                <height>750</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_22">
@@ -1248,8 +1248,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>680</width>
-                <height>511</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_27">
@@ -1505,12 +1505,12 @@
                   </item>
                   <item>
                    <widget class="QCheckBox" name="cbxIgnoreShapeEncoding">
-                    <property name="text">
-                     <string>Ignore shapefile encoding declaration</string>
-                    </property>
                     <property name="toolTip">
                      <string>Disable OGR on-the-fly conversion from declared encoding to UTF-8</string>
                     </property>
+                    <property name="text">
+                     <string>Ignore shapefile encoding declaration</string>
+                    </property>
                    </widget>
                   </item>
                   <item>
@@ -1577,8 +1577,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>663</width>
-                <height>635</height>
+                <width>670</width>
+                <height>611</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_29">
@@ -2092,8 +2092,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>452</width>
-                <height>357</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_25">
@@ -2348,38 +2348,6 @@
                  </layout>
                 </widget>
                </item>
-               <item>
-                <widget class="QGroupBox" name="mPositionGroupBox">
-                 <property name="title">
-                  <string>Overlay position</string>
-                 </property>
-                 <layout class="QHBoxLayout" name="horizontalLayout_4">
-                  <item>
-                   <widget class="QLabel" name="mAlgorithmLabel">
-                    <property name="text">
-                     <string>Placement algorithm</string>
-                    </property>
-                   </widget>
-                  </item>
-                  <item>
-                   <spacer>
-                    <property name="orientation">
-                     <enum>Qt::Horizontal</enum>
-                    </property>
-                    <property name="sizeHint" stdset="0">
-                     <size>
-                      <width>221</width>
-                      <height>20</height>
-                     </size>
-                    </property>
-                   </spacer>
-                  </item>
-                  <item>
-                   <widget class="QComboBox" name="mOverlayAlgorithmComboBox"/>
-                  </item>
-                 </layout>
-                </widget>
-               </item>
                <item>
                 <spacer>
                  <property name="orientation">
@@ -2427,8 +2395,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>491</width>
-                <height>636</height>
+                <width>670</width>
+                <height>619</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_30">
@@ -2834,8 +2802,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>442</width>
-                <height>574</height>
+                <width>670</width>
+                <height>551</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_31">
@@ -3335,8 +3303,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>426</width>
-                <height>336</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_6">
@@ -3475,8 +3443,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>582</width>
-                <height>352</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QGridLayout" name="gridLayout_15">
@@ -3656,8 +3624,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>268</width>
-                <height>207</height>
+                <width>687</width>
+                <height>523</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_32">
@@ -3756,8 +3724,8 @@
                <rect>
                 <x>0</x>
                 <y>0</y>
-                <width>663</width>
-                <height>553</height>
+                <width>670</width>
+                <height>528</height>
                </rect>
               </property>
               <layout class="QVBoxLayout" name="verticalLayout_33">