diff --git a/reactos/subsystems/win32/win32k/include/desktop.h b/reactos/subsystems/win32/win32k/include/desktop.h
index c7afe5a32cd..573a98abf08 100644
--- a/reactos/subsystems/win32/win32k/include/desktop.h
+++ b/reactos/subsystems/win32/win32k/include/desktop.h
@@ -34,11 +34,11 @@ typedef struct _DESKTOP
 // Desktop flags
 #define DF_TME_HOVER        0x00000400
 #define DF_TME_LEAVE        0x00000800
+#define DF_HOTTRACK         0x00004000
 #define DF_DESTROYED        0x00008000
 #define DF_DESKWNDDESTROYED 0x00010000
 #define DF_DYING            0x00020000
 
-
 extern PDESKTOP InputDesktop;
 extern HDESK InputDesktopHandle;
 extern PCLS DesktopWindowClass;
diff --git a/reactos/subsystems/win32/win32k/include/timer.h b/reactos/subsystems/win32/win32k/include/timer.h
index 3b9bd030412..fd4b2657e64 100644
--- a/reactos/subsystems/win32/win32k/include/timer.h
+++ b/reactos/subsystems/win32/win32k/include/timer.h
@@ -24,11 +24,11 @@ typedef struct _TIMER
 #define TMRF_WAITING 0x0020
 #define TMRF_TIFROMWND 0x0040
 
-#define ID_EVENT_SYSTIMER_MOUSEHOVER     (-6)
-#define ID_EVENT_SYSTIMER_FLASHWIN       (-8)
-#define ID_EVENT_SYSTIMER_TRACKWIN       (-9)
-#define ID_EVENT_SYSTIMER_ANIMATEDFADE   (-10)
-#define ID_EVENT_SYSTIMER_INVALIDATEDCES (-11)
+#define ID_EVENT_SYSTIMER_MOUSEHOVER     ID_TME_TIMER
+#define ID_EVENT_SYSTIMER_FLASHWIN       (0xFFF8)
+#define ID_EVENT_SYSTIMER_TRACKWIN       (0xFFF7)
+#define ID_EVENT_SYSTIMER_ANIMATEDFADE   (0xFFF6)
+#define ID_EVENT_SYSTIMER_INVALIDATEDCES (0xFFF5)
 
 extern PKTIMER MasterTimer;
 
diff --git a/reactos/subsystems/win32/win32k/ntuser/mouse.c b/reactos/subsystems/win32/win32k/ntuser/mouse.c
index d77f6650237..8b81f3a08aa 100644
--- a/reactos/subsystems/win32/win32k/ntuser/mouse.c
+++ b/reactos/subsystems/win32/win32k/ntuser/mouse.c
@@ -334,6 +334,19 @@ IntTrackMouseEvent(
     if (!(pWnd = UserGetWindowObject(lpEventTrack->hwndTrack)))
         return FALSE;
 
+    if ( pDesk->spwndTrack != pWnd ||
+            (pDesk->htEx != HTCLIENT) ^ !!(lpEventTrack->dwFlags & TME_NONCLIENT) )
+    {
+        if ( lpEventTrack->dwFlags & TME_LEAVE && !(lpEventTrack->dwFlags & TME_CANCEL) )
+        {
+            UserPostMessage( lpEventTrack->hwndTrack,
+                             lpEventTrack->dwFlags & TME_NONCLIENT ? WM_NCMOUSELEAVE : WM_MOUSELEAVE,
+                             0, 0);
+        }
+        TRACE("IntTrackMouseEvent spwndTrack 0x%x pwnd 0x%x\n", pDesk->spwndTrack, pWnd);
+        return TRUE;
+    }
+
     /* Tracking spwndTrack same as pWnd */
     if (lpEventTrack->dwFlags & TME_CANCEL) // Canceled mode.
     {
@@ -351,7 +364,6 @@ IntTrackMouseEvent(
     }
     else // Not Canceled.
     {
-        pDesk->spwndTrack = pWnd;
         if (lpEventTrack->dwFlags & TME_LEAVE)
             pDesk->dwDTFlags |= DF_TME_LEAVE;
 
diff --git a/reactos/subsystems/win32/win32k/ntuser/msgqueue.c b/reactos/subsystems/win32/win32k/ntuser/msgqueue.c
index eedcad3ebf8..a5123922a19 100644
--- a/reactos/subsystems/win32/win32k/ntuser/msgqueue.c
+++ b/reactos/subsystems/win32/win32k/ntuser/msgqueue.c
@@ -536,34 +536,22 @@ co_MsqInsertMouseMessage(MSG* Msg, DWORD flags, ULONG_PTR dwExtraInfo, BOOL Hook
    if (pwnd)
    {
       /* If we a re tracking the mouse and it moves to another top level window */
-      if(pDesk->spwndTrack && 
-         UserGetAncestor(pDesk->spwndTrack, GA_ROOT) != pwnd)
+      PWND pwndTrack = IntChildrenWindowFromPoint(pwnd, Msg->pt.x, Msg->pt.y);
+
+      if ( pDesk->spwndTrack != pwndTrack && pDesk->dwDTFlags & (DF_TME_LEAVE|DF_TME_HOVER) )
       {
-          /* Generate a WM_MOUSELEAVE message */
-          if ( pDesk->dwDTFlags & DF_TME_LEAVE )
-          {
-              MSG msgMouseLeave;
+         if ( pDesk->dwDTFlags & DF_TME_LEAVE )
+            UserPostMessage( UserHMGetHandle(pDesk->spwndTrack),
+                            (pDesk->htEx != HTCLIENT) ? WM_NCMOUSELEAVE : WM_MOUSELEAVE,
+                             0, 0);
 
-              TRACE("co_MsqInsertMouseMessage: generating WM_MOUSELEAVE\n");
+         if ( pDesk->dwDTFlags & DF_TME_HOVER )
+            IntKillTimer(UserHMGetHandle(pDesk->spwndTrack), ID_EVENT_SYSTIMER_MOUSEHOVER, TRUE);
 
-              msgMouseLeave.hwnd = UserHMGetHandle(pDesk->spwndTrack);
-              msgMouseLeave.message = WM_MOUSELEAVE;
-              msgMouseLeave.pt = Msg->pt;
-              msgMouseLeave.time = Msg->time;
-              msgMouseLeave.lParam = msgMouseLeave.wParam = 0;
-
-              MsqPostMessage(pwnd->head.pti->MessageQueue, Msg, TRUE, QS_MOUSE);
-          }
-
-          /* Stop tracking */
-          if ( pDesk->dwDTFlags & DF_TME_HOVER )
-          {
-              IntKillTimer(pDesk->spwndTrack, ID_EVENT_SYSTIMER_MOUSEHOVER, TRUE);
-          }
-
-          pDesk->spwndTrack = NULL;
-          pDesk->htEx = 0;
+         pDesk->dwDTFlags &= ~(DF_TME_LEAVE|DF_TME_HOVER);
       }
+      pDesk->spwndTrack = pwndTrack;
+      pDesk->htEx = GetNCHitEx(pDesk->spwndTrack, Msg->pt);
    }
 
    hdcScreen = IntGetScreenDC();
@@ -1306,42 +1294,21 @@ BOOL co_IntProcessMouseMessage(MSG* msg, BOOL* RemoveMessages, UINT first, UINT
     }
 
     /* If we a re tracking the mouse and it moves to another window */
-    if(pDesk->spwndTrack && 
-       pDesk->spwndTrack != pwndMsg &&
-       msg->message != WM_MOUSELEAVE)
+    if ( pDesk->spwndTrack != pwndMsg && pDesk->dwDTFlags & (DF_TME_LEAVE|DF_TME_HOVER) &&
+         msg->message != WM_MOUSELEAVE )
     {
-        /* Generate a WM_MOUSELEAVE message */
-        if ( pDesk->dwDTFlags & DF_TME_LEAVE )
-        {
-            MSG msgMouseLeave;
+       if ( pDesk->dwDTFlags & DF_TME_LEAVE )
+          UserPostMessage( UserHMGetHandle(pDesk->spwndTrack),
+                          (pDesk->htEx != HTCLIENT) ? WM_NCMOUSELEAVE : WM_MOUSELEAVE,
+                           0, 0);
 
-            TRACE("co_IntProcessMouseMessage: generating WM_MOUSELEAVE\n");
+       if ( pDesk->dwDTFlags & DF_TME_HOVER )
+          IntKillTimer(UserHMGetHandle(pDesk->spwndTrack), ID_EVENT_SYSTIMER_MOUSEHOVER, TRUE);
 
-            msgMouseLeave.hwnd = UserHMGetHandle(pDesk->spwndTrack);
-            msgMouseLeave.message = WM_MOUSELEAVE;
-            msgMouseLeave.pt = msg->pt;
-            msgMouseLeave.time = msg->time;
-            msgMouseLeave.lParam = msgMouseLeave.wParam = 0;
+       pDesk->dwDTFlags &= ~(DF_TME_LEAVE|DF_TME_HOVER);
 
-            MsqPostMessage(pwndMsg->head.pti->MessageQueue, 
-                           &msgMouseLeave, 
-                           TRUE, 
-                           QS_MOUSE);
-        }
-
-        /* Stop tracking */
-        if ( pDesk->dwDTFlags & DF_TME_HOVER )
-        {
-            IntKillTimer(pDesk->spwndTrack, ID_EVENT_SYSTIMER_MOUSEHOVER, TRUE);
-        }
-
-        pDesk->spwndTrack = NULL;
-        pDesk->htEx = 0;
-    }
-
-    if(pDesk->spwndTrack)
-    {
-        pDesk->htEx = hittest;
+       pDesk->spwndTrack = pwndMsg;
+       pDesk->htEx = hittest;
     }
 
     msg->hwnd = UserHMGetHandle(pwndMsg);
diff --git a/reactos/subsystems/win32/win32k/ntuser/timer.c b/reactos/subsystems/win32/win32k/ntuser/timer.c
index acbdc8e9167..d2074f76df9 100644
--- a/reactos/subsystems/win32/win32k/ntuser/timer.c
+++ b/reactos/subsystems/win32/win32k/ntuser/timer.c
@@ -345,14 +345,6 @@ SystemTimerProc(HWND hwnd,
                 pDesk->dwDTFlags &= ~DF_TME_HOVER;
                 break; // Kill this timer.
              }
-             else
-             {
-                 RECTL_vSetRect(&pDesk->rcMouseHover,
-                                Point.x - gspv.iMouseHoverWidth  / 2,
-                                Point.y - gspv.iMouseHoverHeight / 2,
-                                Point.x + gspv.iMouseHoverWidth  / 2,
-                                Point.y + gspv.iMouseHoverHeight / 2);
-             }
           }
        }
        return; // Not this window so just return.