getSceneToLocalMatrix seems to be working.

.classpath

@@ -1,8 +1,8 @@
 <?xml version="1.0" encoding="UTF-8"?>
 <classpath>
 	<classpathentry kind="src" path="src"/>
-	<classpathentry kind="src" path="gen"/>
 	<classpathentry kind="con" path="com.android.ide.eclipse.adt.ANDROID_FRAMEWORK"/>
 	<classpathentry kind="lib" path="lib/libProgressMonitor.jar"/>
+	<classpathentry kind="src" path="gen"/>
 	<classpathentry kind="output" path="bin"/>
 </classpath>

src/org/anddev/andengine/collision/RectangularShapeCollisionChecker.java

@@ -62,10 +62,10 @@ public static boolean checkCollision(final RectangularShape pRectangularShapeA,
 	}
 
 	public static void fillVertices(final RectangularShape pRectangularShape, final float[] pVertices) {
-		final float left = pRectangularShape.getX();
-		final float top = pRectangularShape.getY();
-		final float right = pRectangularShape.getWidth() + left;
-		final float bottom = pRectangularShape.getHeight() + top;
+		final float left = 0;
+		final float top = 0;
+		final float right = pRectangularShape.getWidth();
+		final float bottom = pRectangularShape.getHeight();
 
 		pVertices[0 + VERTEX_INDEX_X] = left;
 		pVertices[0 + VERTEX_INDEX_Y] = top;

src/org/anddev/andengine/engine/camera/hud/controls/BaseOnScreenControl.java

@@ -136,33 +136,6 @@ protected void onHandleControlKnobReleased() {
 		this.onUpdateControlKnob(0, 0);
 	}
 
-	private void updateControlKnob(final TouchEvent pSceneTouchEvent, final float pTouchAreaLocalX, final float pTouchAreaLocalY) {
-		final Sprite controlBase = this.mControlBase;
-
-		final float relativeX = MathUtils.bringToBounds(0, controlBase.getWidth(), pTouchAreaLocalX) / controlBase.getWidth() - 0.5f;
-		final float relativeY = MathUtils.bringToBounds(0, controlBase.getHeight(), pTouchAreaLocalY) / controlBase.getHeight() - 0.5f;
-
-		this.onUpdateControlKnob(relativeX, relativeY);
-	}
-
-	/**
-	 * @param pRelativeX from <code>-0.5</code> (left) to <code>0.5</code> (right).
-	 * @param pRelativeY from <code>-0.5</code> (top) to <code>0.5</code> (bottom).
-	 */
-	protected void onUpdateControlKnob(final float pRelativeX, final float pRelativeY) {
-		final Sprite controlBase = this.mControlBase;
-		final Sprite controlKnob = this.mControlKnob;
-
-		this.mControlValueX = 2 * pRelativeX;
-		this.mControlValueY = 2 * pRelativeY;
-
-		final float[] controlBaseSceneCenterCoordinates = controlBase.getSceneCenterCoordinates();
-		final float x = controlBaseSceneCenterCoordinates[VERTEX_INDEX_X] - controlKnob.getWidth() * 0.5f + pRelativeX * controlBase.getWidthScaled();
-		final float y = controlBaseSceneCenterCoordinates[VERTEX_INDEX_Y] - controlKnob.getHeight() * 0.5f + pRelativeY * controlBase.getHeightScaled();
-
-		controlKnob.setPosition(x, y);
-	}
-
 	protected boolean onHandleControlBaseTouched(final TouchEvent pSceneTouchEvent, final float pTouchAreaLocalX, final float pTouchAreaLocalY) {
 		final int pointerID = pSceneTouchEvent.getPointerID();
 
@@ -192,6 +165,33 @@ protected boolean onHandleControlBaseTouched(final TouchEvent pSceneTouchEvent,
 		return true;
 	}
 
+	private void updateControlKnob(final TouchEvent pSceneTouchEvent, final float pTouchAreaLocalX, final float pTouchAreaLocalY) {
+		final Sprite controlBase = this.mControlBase;
+
+		final float relativeX = MathUtils.bringToBounds(0, controlBase.getWidth(), pTouchAreaLocalX) / controlBase.getWidth() - 0.5f;
+		final float relativeY = MathUtils.bringToBounds(0, controlBase.getHeight(), pTouchAreaLocalY) / controlBase.getHeight() - 0.5f;
+
+		this.onUpdateControlKnob(relativeX, relativeY);
+	}
+
+	/**
+	 * @param pRelativeX from <code>-0.5</code> (left) to <code>0.5</code> (right).
+	 * @param pRelativeY from <code>-0.5</code> (top) to <code>0.5</code> (bottom).
+	 */
+	protected void onUpdateControlKnob(final float pRelativeX, final float pRelativeY) {
+		final Sprite controlBase = this.mControlBase;
+		final Sprite controlKnob = this.mControlKnob;
+
+		this.mControlValueX = 2 * pRelativeX;
+		this.mControlValueY = 2 * pRelativeY;
+
+		final float[] controlBaseSceneCenterCoordinates = controlBase.getSceneCenterCoordinates();
+		final float x = controlBaseSceneCenterCoordinates[VERTEX_INDEX_X] - controlKnob.getWidth() * 0.5f + pRelativeX * controlBase.getWidthScaled();
+		final float y = controlBaseSceneCenterCoordinates[VERTEX_INDEX_Y] - controlKnob.getHeight() * 0.5f + pRelativeY * controlBase.getHeightScaled();
+
+		controlKnob.setPosition(x, y);
+	}
+
 	// ===========================================================
 	// Inner and Anonymous Classes
 	// ===========================================================

src/org/anddev/andengine/entity/Entity.java

@@ -436,9 +436,11 @@ public void reset() {
 
 		this.mEntityModifiers.reset();
 
-		final ArrayList<IEntity> entities = this.mChildren;
-		for(int i = entities.size() - 1; i >= 0; i--) {
-			entities.get(i).reset();
+		if(this.mChildren != null) {
+			final ArrayList<IEntity> entities = this.mChildren;
+			for(int i = entities.size() - 1; i >= 0; i--) {
+				entities.get(i).reset();
+			}
 		}
 	}
 
@@ -607,19 +609,12 @@ private void allocateChildren() {
 		this.mChildren = new ArrayList<IEntity>(Entity.CHILDREN_CAPACITY_DEFAULT);
 	}
 
-	@Override
-	public Matrix getSceneToLocalMatrix() {
-		final Matrix sceneToLocalMatrix = this.mSceneToLocalMatrix;
-		sceneToLocalMatrix.reset();
-		this.getLocalToSceneMatrix().invert(sceneToLocalMatrix);
-		return sceneToLocalMatrix;
-	}
-
 	@Override
 	public Matrix getLocalToSceneMatrix() {
 		final Matrix localToSceneMatrix = this.mLocalToSceneMatrix;
 		localToSceneMatrix.reset();
 
+		/* Scale. */
 		final float scaleX = this.mScaleX;
 		final float scaleY = this.mScaleY;
 		if(scaleX != 1 || scaleY != 1) {
@@ -631,8 +626,9 @@ public Matrix getLocalToSceneMatrix() {
 		}
 
 		/* TODO There is a special, but very likely case when mRotationCenter and mScaleCenter are the same.
-		 * In that case the last postTranslate of the rotation and the first postTranslate of the scale is superfluous. */
+		 * In that case the last postTranslate of the scale and the first postTranslate of the rotation is superfluous. */
 
+		/* Rotation. */
 		final float rotation = this.mRotation;
 		if(rotation != 0) {
 			final float rotationCenterX = this.mRotationCenterX;
@@ -643,6 +639,7 @@ public Matrix getLocalToSceneMatrix() {
 			localToSceneMatrix.postTranslate(rotationCenterX, rotationCenterY);
 		}
 
+		/* Translation. */
 		localToSceneMatrix.postTranslate(this.mX, this.mY);
 
 		final IEntity parent = this.mParent;
@@ -653,6 +650,48 @@ public Matrix getLocalToSceneMatrix() {
 		return localToSceneMatrix;
 	}
 
+	@Override
+	public Matrix getSceneToLocalMatrix() {
+		final Matrix sceneToLocalMatrix = this.mSceneToLocalMatrix;
+		sceneToLocalMatrix.reset();
+
+		final IEntity parent = this.mParent;
+		if(parent != null) {
+			sceneToLocalMatrix.postConcat(parent.getSceneToLocalMatrix());
+		}
+
+		/* Translation. */
+		sceneToLocalMatrix.postTranslate(-this.mX, -this.mY);
+
+		/* Rotation. */
+		final float rotation = this.mRotation;
+		if(rotation != 0) {
+			final float rotationCenterX = this.mRotationCenterX;
+			final float rotationCenterY = this.mRotationCenterY;
+
+			sceneToLocalMatrix.postTranslate(-rotationCenterX, -rotationCenterY);
+			sceneToLocalMatrix.postRotate(-rotation);
+			sceneToLocalMatrix.postTranslate(rotationCenterX, rotationCenterY);
+		}
+
+		/* TODO There is a special, but very likely case when mRotationCenter and mScaleCenter are the same.
+		 * In that case the last postTranslate of the rotation and the first postTranslate of the scale is superfluous. */
+
+		/* Scale. */
+		final float scaleX = this.mScaleX;
+		final float scaleY = this.mScaleY;
+		if(scaleX != 1 || scaleY != 1) {
+			final float scaleCenterX = this.mScaleCenterX;
+			final float scaleCenterY = this.mScaleCenterY;
+
+			sceneToLocalMatrix.postTranslate(-scaleCenterX, -scaleCenterY);
+			sceneToLocalMatrix.postScale(1 / scaleX, 1 / scaleY);
+			sceneToLocalMatrix.postTranslate(scaleCenterX, scaleCenterY);
+		}
+
+		return sceneToLocalMatrix;
+	}
+
 	protected void onApplyTransformations(final GL10 pGL) {
 		/* Translation. */
 		this.applyTranslation(pGL);

src/org/anddev/andengine/entity/scene/Scene.java

@@ -12,6 +12,7 @@
 import org.anddev.andengine.engine.handler.UpdateHandlerList;
 import org.anddev.andengine.engine.handler.runnable.RunnableHandler;
 import org.anddev.andengine.entity.Entity;
+import org.anddev.andengine.entity.IEntity;
 import org.anddev.andengine.entity.layer.Layer;
 import org.anddev.andengine.entity.layer.ZIndexSorter;
 import org.anddev.andengine.entity.scene.background.ColorBackground;
@@ -479,6 +480,11 @@ public void reset() {
 
 		this.clearChildScene();
 	}
+
+	@Override
+	public void setParent(IEntity pEntity) {
+//		super.setParent(pEntity);
+	}
 
 	// ===========================================================
 	// Methods