diff --git a/node_modules/kaefer/lib/client.js b/node_modules/kaefer/lib/client.js
index 5586f63d..3f6bd7f0 100644
--- a/node_modules/kaefer/lib/client.js
+++ b/node_modules/kaefer/lib/client.js
@@ -86,27 +86,29 @@ var connectClient = module.exports = function(connectEio, options) {
         });
     }
 
-    function reconnect() {
-        if (isReconnecting)
+    var timer;
+    function reconnect(delay) {
+        if (isReconnecting && typeof delay !== "number")
             return;
         
         reconnectSocket.setSocket(null);
         connectAttempts += 1;
 
-        var delay = 250;
-        if (connectAttempts > 10) {
-            delay = 10 * 1000;
-        }
-        else if (connectAttempts > 5) {
-            delay = 5 * 1000;
-        }
-        else if (connectAttempts > 3) {
-            delay = 1 * 1000;
+        if (typeof delay !== "number") {
+            if (connectAttempts < 10) {
+                delay = 250;
+            }
+            else {
+                delay = Math.min(60000, 250 * Math.pow(2, connectAttempts - 10));
+            }
         }
 
         isReconnecting = true;
         console.log("Schedule re-connect in: " + delay);
-        setTimeout(function() {
+        socket.emit("reconnectDelay", { delay: delay });
+        
+        clearTimeout(timer);
+        timer = setTimeout(function() {
             isReconnecting = false;
             connect();
         }, delay);
diff --git a/plugins/c9.core/c9.js b/plugins/c9.core/c9.js
index 7f0947d2..6e7f9b1c 100644
--- a/plugins/c9.core/c9.js
+++ b/plugins/c9.core/c9.js
@@ -57,7 +57,7 @@ define(function(require, module, exports) {
             }, plugin);
             
             vfs.on("disconnect", function(reason) {
-                setStatus(status & ~STORAGE & ~PROCESS & ~NETWORK);
+                setStatus(state & ~STORAGE & ~PROCESS & ~NETWORK);
                 emit("disconnect");
             }, plugin);
         
@@ -67,7 +67,7 @@ define(function(require, module, exports) {
             }, plugin);
             
             vfs.on("error", function(message) {
-                setStatus(status & ~STORAGE & ~PROCESS);
+                setStatus(state & ~STORAGE & ~PROCESS);
                 // TODO: Don't display all errors?
                 if (emit("showerrormessage", message) !== false) {
                     console.error(
diff --git a/plugins/c9.ide.dialog.common/error.css b/plugins/c9.ide.dialog.common/error.css
index f3d14fb7..96f0a115 100644
--- a/plugins/c9.ide.dialog.common/error.css
+++ b/plugins/c9.ide.dialog.common/error.css
@@ -1,18 +1,23 @@
-.errorlabel{
+.errorlabel, .disconnectlabel{
     position: absolute;
     left: 0;
     right: 0;
     top: 0;
     z-index: 10000000;
-    text-align: center;
+    /*text-align: center;*/
     pointer-events: none;
     .font-smoothing(@error-font-smoothing);
 }
-.errorlabel.anim{
+.errorlabel.anim, .disconnectlabel.anim{
     transition: top 0.2s;
     -moz-transition: top 0.2s; /* Gecko */
     -webkit-transition: top 0.2s; /* Safari */
 }
+.errorlabel.fade-in{
+    transition: opacity 0.2s;
+    -moz-transition: opacity 0.2s; /* Gecko */
+    -webkit-transition: opacity 0.2s; /* Safari */
+}
 .errorlabel div{
     background: @error-background;
     padding: @error-padding;
@@ -26,6 +31,9 @@
     max-width: 100%;
     pointer-events: auto;
 }
+.errorlabel.fade-in div{
+    border-radius: 3px;
+}
 .errorlabel u.close{
     .image-2x("@{image-path}/@{error-close-image}", 42px, 28px);
     background-position: @error-close-idle-position;
@@ -33,7 +41,7 @@
     height: 14px;
     position: absolute;
     right: 8px;
-    top: 8px;
+    top: 6px;
     cursor: pointer;
 }
 .errorlabel u.close:hover{
@@ -45,4 +53,25 @@
 .errorlabel div span{
     border-bottom: 1px dotted rgb(255, 174, 174);
     cursor: help;
+}
+
+.disconnectlabel{
+    z-index: 10000001;
+}
+.disconnectlabel div{
+    background: @disconnect-background;
+    padding: @disconnect-padding;
+    color: @disconnect-color;
+    border-radius: 0 0 3px 3px;
+    box-shadow: @disconnect-box-shadow;
+    line-height: 1.4;
+    display: inline-block;
+    position: relative;
+    word-wrap: break-word;
+    text-align: center;
+    width: 300px;
+    pointer-events: auto;
+}
+.disconnectlabel u{
+    cursor: pointer;
 }
\ No newline at end of file
diff --git a/plugins/c9.ide.dialog.common/error.js b/plugins/c9.ide.dialog.common/error.js
index 3642818a..3d28bb20 100644
--- a/plugins/c9.ide.dialog.common/error.js
+++ b/plugins/c9.ide.dialog.common/error.js
@@ -12,22 +12,72 @@ define(function(require, exports, module) {
         /***** Initialization *****/
         
         var plugin = new Plugin("Ajax.org", main.consumes);
+        var emit = plugin.getEmitter();
         
         var topPx = 0;
-        var error, hideTimeout;
         var lastCookie = 0;
+        var offset = 0;
+        var error, hideTimeout, disconnect;
+        
+        var DISCONNECTDELAY = 1000;
         
-        var loaded = false;
         function load() {
-            if (loaded) return false;
-            loaded = true;
-            
             ui.insertCss(require("text!./error.css"), 
                 options.staticPrefix, plugin);
         }
         
+        function initDisconnectEvents(vfs){
+            var timer;
+            
+            vfs.once("connect", function(){
+                vfs.connection.on("reconnectDelay", function(e){
+                    clearInterval(timer);
+                    
+                    var delay = e.delay;
+                    if (delay > 999) {
+                        timer = setInterval(function(){
+                            if (vfs.connected)
+                                return clearInterval(timer);
+                            
+                            delay -= 1000;
+                            showDisconnect({ delay: delay });
+                            
+                            if (delay <= 0)
+                                clearInterval(timer);
+                        }, 1000);
+                    }
+                    
+                    showDisconnect(e);
+                });
+            });
+            vfs.on("connect", function(){
+                hideDisconnect();
+            });
+            vfs.on("disconnect", function(){
+                // setTimeout(function(){
+                //     showDisconnect();
+                // }, DISCONNECTDELAY);
+            });
+            vfs.on("connecting", function(){
+                showDisconnect({ connecting: true });
+            });
+            plugin.on("retryConnect", function(){
+                vfs.connection.reconnect(0);
+            });
+        }
+        
         /***** Methods *****/
 
+        function getCenterX(){
+            var bartools = document.querySelector(".bartools");
+            if (!bartools) return 0; // For testing
+            
+            var b1 = bartools.getBoundingClientRect();
+            var b2 = bartools.nextSibling.getBoundingClientRect();
+            
+            return b1.left + b1.width + ((b2.left - b1.left - b1.width)/2);
+        }
+
         function show(message, timeout) {
             // Error message container
             if (!error) {
@@ -63,18 +113,21 @@ define(function(require, exports, module) {
                 error.innerHTML = "<div><u class='close'></u>" 
                     + messageString + "</div>";
                     
+                error.style.opacity = 0;
                 error.style.display = "block";
-                error.style.top = (-1 * error.offsetHeight - 10 + topPx) + "px";
+                error.style.top = (offset - (error.offsetHeight - 10 + topPx)) + "px";
+                error.firstChild.style.marginLeft = Math.max(0, (getCenterX() - (error.firstChild.offsetWidth / 2))) + "px";
                 
                 // Start anim
                 setTimeout(function() {
-                    error.className = "errorlabel anim";
-                    error.style.top = topPx + "px";
+                    error.className = "errorlabel anim " + (offset > 0 ? "fade-in" : "");
+                    error.style.top = (offset + topPx) + "px";
+                    error.style.opacity = 1;
                 }, 10);
                 
                 clearTimeout(hideTimeout);
                 if (!(timeout < 0))
-                    setTimeout(hide, timeout || 15000);
+                    hideTimeout = setTimeout(hide, timeout || 15000);
             });
             
             return ++lastCookie;
@@ -89,19 +142,96 @@ define(function(require, exports, module) {
             if (!error || error.style.display === "none")
                 return callback && callback();
             
-            error.className = "errorlabel anim";
-            error.style.top = (-1 * error.offsetHeight - 10 + topPx) + "px";
+            error.className = "errorlabel anim " + (offset > 0 ? "fade-in" : "");
+            if (offset > 0)
+                error.style.opacity = 0;
+            else
+                error.style.top = (-1 * error.offsetHeight - 10 + topPx) + "px";
+            
             setTimeout(function() {
                 error.style.display = "none";
                 callback && callback();
             }, 220);
         }
         
+        function showDisconnect(options){
+            // Error message container
+            if (!disconnect) {
+                disconnect = document.body.appendChild(document.createElement("div"));
+                disconnect.className = "disconnectlabel";
+                disconnect.addEventListener("mouseup", function(e) {
+                    if (e.target.tagName == "U")
+                        emit("retryConnect");
+                });
+            }
+                
+            var message;
+            if (!options || options.delay < 1000 || options.connecting)
+                message = "Reconnecting...";
+            else if (options.delay)
+                message = "Reconnecting in " + Math.ceil(options.delay/1000) 
+                    + " seconds." 
+                    + (options.delay < 2001 ? "" : " <u>Retry Now.</u>");
+            else
+                message = "Reconnecting...";
+            
+            disconnect.innerHTML = "<div>" + message + "</div>";
+            disconnect.firstChild.style.marginLeft 
+                = Math.max(0, (getCenterX() - 150)) + "px";
+            
+            if (disconnect.style.display == "block")
+                return;
+                
+            disconnect.style.display = "block";
+            disconnect.style.top = (-1 * disconnect.offsetHeight - 10 + topPx) + "px";
+            
+            // Start anim
+            setTimeout(function() {
+                disconnect.className = "disconnectlabel anim";
+                disconnect.style.top = (topPx) + "px";
+            }, 10);
+            
+            offset = 28;
+            
+            // document.querySelector(".c9-offline").addEventListener("click", function(){
+            //     alert("Offline Notication", "You are currently offline.", 
+            //       "This indicator notifies you that Cloud9 is unable to reach "
+            //       + "the server. This usually happens because you are offline. "
+            //       + "Some features will be disabled until the "
+            //       + "network connection becomes available again. "
+            //       + "This notication could also show when the server is "
+            //       + "unreachable due to other reasons. Sometimes a refresh of "
+            //       + "the tab will fix an issue. Please e-mail "
+            //       + "support@c9.io for further problem resolution.");
+            // }, false);
+        }
+        
+        function hideDisconnect(cookie, callback) {
+            if (!disconnect || disconnect.style.display === "none")
+                return callback && callback();
+            
+            disconnect.className = "disconnectlabel anim";
+            disconnect.style.top = (-1 * disconnect.offsetHeight - 10 + topPx) + "px";
+            setTimeout(function() {
+                disconnect.style.display = "none";
+                callback && callback();
+            }, 220);
+            
+            offset = 0;
+        }
+        
         /***** Lifecycle *****/
         
         plugin.on("load", function() {
             load();
         });
+        plugin.on("unload", function() {
+            topPx = 0;
+            lastCookie = 0;
+            offset = 0;
+            error = null;
+            hideTimeout = null;
+        });
         
         /***** Register and define API *****/
         
@@ -116,6 +246,19 @@ define(function(require, exports, module) {
             get top(){ return topPx; },
             set top(value){ topPx = value; },
             
+            get vfs(){ throw new Error("Permission Denied"); },
+            set vfs(v){ initDisconnectEvents(v); },
+            
+            /**
+             * 
+             */
+            showDisconnect: showDisconnect,
+            
+            /**
+             * 
+             */
+            hideDisconnect: hideDisconnect,
+            
             /**
              * Displays an error message in the main error reporting UI.
              * @param {String} message  The message to display.
diff --git a/plugins/c9.ide.layout.classic/layout.js b/plugins/c9.ide.layout.classic/layout.js
index c3124ceb..5d3aee91 100644
--- a/plugins/c9.ide.layout.classic/layout.js
+++ b/plugins/c9.ide.layout.classic/layout.js
@@ -8,11 +8,11 @@ define(function(require, exports, module) {
 
     function main(options, imports, register) {
         var c9 = imports.c9;
-        var alert = imports["dialog.alert"].show;
         var Plugin = imports.Plugin;
-        var question = imports["dialog.question"];
         var settings = imports.settings;
         var commands = imports.commands;
+        var alert = imports["dialog.alert"].show;
+        var question = imports["dialog.question"];
         var preload = imports["layout.preload"];
         var anims = imports.anims;
         var ui = imports.ui;
@@ -126,33 +126,6 @@ define(function(require, exports, module) {
                 img.src = options.staticPrefix + "/images/" + p;
             });
             
-            var hideOffline;
-            c9.on("stateChange", function(e) {
-                // Online
-                if (e.state & c9.NETWORK && e.state & c9.STORAGE) {
-                    hideOffline && hideOffline();
-                }
-                // Offline
-                else if (!hideOffline || hideOffline.hasClosed()) {
-                    hideOffline = notify("<div class='c9-offline'>No internet "
-                        + "connection detected. Cloud9 will automatically try to "
-                        + "reconnect when it detects an internet connection."
-                        + "</div>", true, 1000);
-                    
-                    document.querySelector(".c9-offline").addEventListener("click", function(){
-                        alert("Offline Notication", "You are currently offline.", 
-                          "This indicator notifies you that Cloud9 is unable to reach "
-                          + "the server. This usually happens because you are offline. "
-                          + "Some features will be disabled until the "
-                          + "network connection becomes available again. "
-                          + "This notication could also show when the server is "
-                          + "unreachable due to other reasons. Sometimes a refresh of "
-                          + "the tab will fix an issue. Please e-mail "
-                          + "support@c9.io for further problem resolution.");
-                    }, false);
-                }
-            });
-            
             window.addEventListener("resize", resize, false);
             window.addEventListener("focus", resize, false);
             
@@ -542,6 +515,21 @@ define(function(require, exports, module) {
             window.removeEventListener("resize", resize);
             
             if (removeTheme) removeTheme();
+            
+            logobar = null;
+            removeTheme = null;
+            theme = null;
+            c9console = null;
+            menus = null;
+            tabManager = null;
+            panels = null;
+            userLayout = null;
+            ignoreTheme = null;
+            notify = null;
+            hideFlagUpdate = null;
+            activeFindArea = null;
+            defaultFindArea = null;
+            activating = null;
         });
         
         /***** Register and define API *****/
diff --git a/plugins/c9.ide.layout.classic/themes/default-dark-gray.less b/plugins/c9.ide.layout.classic/themes/default-dark-gray.less
index 6c78b067..f78fd8a0 100644
--- a/plugins/c9.ide.layout.classic/themes/default-dark-gray.less
+++ b/plugins/c9.ide.layout.classic/themes/default-dark-gray.less
@@ -632,6 +632,12 @@
 @error-close-hover-position: -14px -14px;
 @error-close-active-position: -28px -14px;
 
+// Disconnect Dialog
+@disconnect-background: #D8B112;
+@disconnect-color: @error-color;
+@disconnect-padding: @error-padding;
+@disconnect-box-shadow: @error-box-shadow;
+
 // Offline Dialog
 @offline-gradient: linear-gradient(top, rgb(60, 112, 153) 0%, rgb(61, 97, 126) 100%);
 @offline-border-bottom: 1px solid rgba(0, 0, 0, 0.61);
diff --git a/plugins/c9.ide.layout.classic/themes/default-dark.less b/plugins/c9.ide.layout.classic/themes/default-dark.less
index fd62d0f3..26707588 100644
--- a/plugins/c9.ide.layout.classic/themes/default-dark.less
+++ b/plugins/c9.ide.layout.classic/themes/default-dark.less
@@ -632,6 +632,12 @@
 @error-close-hover-position: -14px -14px;
 @error-close-active-position: -28px -14px;
 
+// Disconnect Dialog
+@disconnect-background: #D8B112;
+@disconnect-color: @error-color;
+@disconnect-padding: @error-padding;
+@disconnect-box-shadow: @error-box-shadow;
+
 // Offline Dialog
 @offline-gradient: linear-gradient(top, rgb(60, 112, 153) 0%, rgb(61, 97, 126) 100%);
 @offline-border-bottom: 1px solid rgba(0, 0, 0, 0.61);
diff --git a/plugins/c9.ide.layout.classic/themes/default-flat-light.less b/plugins/c9.ide.layout.classic/themes/default-flat-light.less
index b23ca74b..6425061b 100644
--- a/plugins/c9.ide.layout.classic/themes/default-flat-light.less
+++ b/plugins/c9.ide.layout.classic/themes/default-flat-light.less
@@ -632,6 +632,12 @@
 @error-close-hover-position: -14px -14px;
 @error-close-active-position: -28px -14px;
 
+// Disconnect Dialog
+@disconnect-background: #D8B112;
+@disconnect-color: @error-color;
+@disconnect-padding: @error-padding;
+@disconnect-box-shadow: @error-box-shadow;
+
 // Offline Dialog
 @offline-gradient: linear-gradient(top, #3d9ac4 0%, #3d9ac4 100%);
 @offline-border-bottom: 0;
diff --git a/plugins/c9.ide.layout.classic/themes/default-light-gray.less b/plugins/c9.ide.layout.classic/themes/default-light-gray.less
index 39472337..ebf4895d 100644
--- a/plugins/c9.ide.layout.classic/themes/default-light-gray.less
+++ b/plugins/c9.ide.layout.classic/themes/default-light-gray.less
@@ -632,6 +632,12 @@
 @error-close-hover-position: -14px -14px;
 @error-close-active-position: -28px -14px;
 
+// Disconnect Dialog
+@disconnect-background: #D8B112;
+@disconnect-color: @error-color;
+@disconnect-padding: @error-padding;
+@disconnect-box-shadow: @error-box-shadow;
+
 // Offline Dialog
 @offline-gradient: linear-gradient(top, rgb(60, 112, 153) 0%, rgb(61, 97, 126) 100%);
 @offline-border-bottom: 1px solid rgba(0, 0, 0, 0.61);
diff --git a/plugins/c9.ide.layout.classic/themes/default-light.less b/plugins/c9.ide.layout.classic/themes/default-light.less
index 48928aee..982b7177 100644
--- a/plugins/c9.ide.layout.classic/themes/default-light.less
+++ b/plugins/c9.ide.layout.classic/themes/default-light.less
@@ -632,6 +632,12 @@
 @error-close-hover-position: -14px -14px;
 @error-close-active-position: -28px -14px;
 
+// Disconnect Dialog
+@disconnect-background: #D8B112;
+@disconnect-color: @error-color;
+@disconnect-padding: @error-padding;
+@disconnect-box-shadow: @error-box-shadow;
+
 // Offline Dialog
 @offline-gradient: linear-gradient(top, rgb(60, 112, 153) 0%, rgb(61, 97, 126) 100%);
 @offline-border-bottom: 1px solid rgba(0, 0, 0, 0.61);
diff --git a/plugins/c9.vfs.client/vfs_client.js b/plugins/c9.vfs.client/vfs_client.js
index 22a5916f..266974e7 100644
--- a/plugins/c9.vfs.client/vfs_client.js
+++ b/plugins/c9.vfs.client/vfs_client.js
@@ -30,8 +30,9 @@ define(function(require, exports, module) {
         var Plugin = imports.Plugin;
         var auth = imports.auth;
         var vfsEndpoint = imports["vfs.endpoint"];
-        var showError = imports["dialog.error"].show;
-        var hideError = imports["dialog.error"].hide;
+        var errorDialog = imports["dialog.error"];
+        var showError = errorDialog.show;
+        var hideError = errorDialog.hide;
         var showAlert = imports["dialog.alert"].show;
         
         var eio = require("engine.io");
@@ -49,6 +50,9 @@ define(function(require, exports, module) {
         var plugin = new Plugin("Ajax.org", main.consumes);
         var emit = plugin.getEmitter();
         
+        // Give reference to vfs to plugin
+        errorDialog.vfs = plugin;
+        
         var buffer = [];
         var installChecked = false;
         var withInstall = options.withInstall;
@@ -330,6 +334,22 @@ define(function(require, exports, module) {
         });
         plugin.on("unload", function(){
             loaded = false;
+            
+            id = null;
+            buffer = [];
+            installChecked = false;
+            region = null;
+            vfsBaseUrl = null;
+            homeUrl = null;
+            projectUrl = null;
+            pingUrl = null;
+            serviceUrl = null;
+            eioOptions = null;
+            consumer = null;
+            vfs = null;
+            showErrorTimer = null;
+            showErrorTimerMessage = null;
+            lastError = null;
         });
         
         /***** Register and define API *****/