diff --git a/platform/lang-impl/src/com/intellij/application/options/editor/CodeFoldingConfigurable.java b/platform/lang-impl/src/com/intellij/application/options/editor/CodeFoldingConfigurable.java
index a32c0f2e0b61..a7a6b7b410aa 100644
--- a/platform/lang-impl/src/com/intellij/application/options/editor/CodeFoldingConfigurable.java
+++ b/platform/lang-impl/src/com/intellij/application/options/editor/CodeFoldingConfigurable.java
@@ -23,14 +23,17 @@ import com.intellij.openapi.application.ModalityState;
 import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.editor.EditorFactory;
 import com.intellij.openapi.editor.ex.EditorSettingsExternalizable;
+import com.intellij.openapi.editor.impl.FoldingModelImpl;
 import com.intellij.openapi.extensions.Extensions;
 import com.intellij.openapi.options.CompositeConfigurable;
 import com.intellij.openapi.options.ConfigurationException;
 import com.intellij.openapi.project.Project;
+import com.intellij.openapi.util.Pair;
 import org.jetbrains.annotations.Nls;
 
 import javax.swing.*;
 import java.awt.*;
+import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.List;
 
@@ -57,8 +60,9 @@ public class CodeFoldingConfigurable extends CompositeConfigurable<CodeFoldingOp
 
   public JComponent createComponent() {
     for (CodeFoldingOptionsProvider provider : getConfigurables()) {
-      myFoldingPanel.add(provider.createComponent(), new GridBagConstraints(0, GridBagConstraints.RELATIVE, 1, 1, 0, 0, GridBagConstraints.NORTHWEST,
-                                                                            GridBagConstraints.NONE, new Insets(0,0,0,0), 0,0));
+      myFoldingPanel
+        .add(provider.createComponent(), new GridBagConstraints(0, GridBagConstraints.RELATIVE, 1, 1, 0, 0, GridBagConstraints.NORTHWEST,
+                                                                GridBagConstraints.NONE, new Insets(0, 0, 0, 0), 0, 0));
     }
     return myRootPanel;
   }
@@ -72,19 +76,25 @@ public class CodeFoldingConfigurable extends CompositeConfigurable<CodeFoldingOp
     EditorSettingsExternalizable.getInstance().setFoldingOutlineShown(myCbFolding.isSelected());
     super.apply();
 
+    final List<Pair<Editor, Project>> toUpdate = new ArrayList<Pair<Editor, Project>>();
     for (final Editor editor : EditorFactory.getInstance().getAllEditors()) {
       final Project project = editor.getProject();
       if (project != null && !project.isDefault()) {
-        final CodeFoldingManager foldingManager = CodeFoldingManager.getInstance(project);
-        if (foldingManager != null) {
-          ApplicationManager.getApplication().invokeLater(new Runnable() {
-            public void run() {
-              foldingManager.forceDefaultState(editor);
-            }
-          }, ModalityState.NON_MODAL);
-        }
+        toUpdate.add(Pair.create(editor, project));
       }
     }
+
+    ApplicationManager.getApplication().invokeLater(new Runnable() {
+      public void run() {
+        for (Pair<Editor, Project> each : toUpdate) {
+          final CodeFoldingManager foldingManager = CodeFoldingManager.getInstance(each.second);
+          if (foldingManager != null) {
+            foldingManager.forceDefaultState(each.first);
+            EditorOptionsPanel.reinitAllEditors();
+          }
+        }
+      }
+    }, ModalityState.NON_MODAL);
   }
 
   public void reset() {
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorGutterComponentImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorGutterComponentImpl.java
index 892320f8a22b..bb5ade1b546a 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorGutterComponentImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorGutterComponentImpl.java
@@ -118,6 +118,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
 
   public void reinitSettings() {
     myBackgroundColor = null;
+    revalidateMarkup();
     repaint();
   }
   
@@ -212,7 +213,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
         .line;
       endLineNumber = Math.min(endLineNumber, lastLine + 1);
       if (startLineNumber >= endLineNumber) {
-        return;
+        break;
       }
 
       for (int j = startLineNumber; j < endLineNumber; j++) {
@@ -234,7 +235,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
       x += myTextAnnotationGutterSizes.get(i);
     }
 
-    UIUtil.drawVDottedLine((Graphics2D)g, x - 1, clip.y, clip.y + clip.height, getBackground(), getOutlineColor(false));
+    UIUtil.drawVDottedLine((Graphics2D)g, getAnnotationsAreaOffset() + w - 1, clip.y, clip.y + clip.height, null, getOutlineColor(false));
   }
 
   private void paintFoldingTree(Graphics g, Rectangle clip) {
@@ -242,8 +243,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
       paintFoldingTree((Graphics2D)g);
     }
     else {
-      UIUtil.drawVDottedLine((Graphics2D)g, clip.x + clip.width -1, clip.y, clip.y + clip.height,
-                            myEditor.getBackgroundColor(), getOutlineColor(false));
+      UIUtil.drawVDottedLine((Graphics2D)g, clip.x + clip.width -1, clip.y, clip.y + clip.height, null, getOutlineColor(false));
     }
   }
 
@@ -275,7 +275,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
     if (isLineNumbersShown()) {
       paintBackground(g, clip, getLineNumberAreaOffset(), getLineNumberAreaWidth());
       int x = getLineNumberAreaOffset() + getLineNumberAreaWidth() - 2;
-      UIUtil.drawVDottedLine((Graphics2D)g, x, clip.y, clip.y + clip.height, getBackground(), getOutlineColor(false));
+      UIUtil.drawVDottedLine((Graphics2D)g, x, clip.y, clip.y + clip.height, null, getOutlineColor(false));
       paintLineNumbers(g);
     }
   }
@@ -698,7 +698,7 @@ class EditorGutterComponentImpl extends EditorGutterComponentEx implements Mouse
     if (!isFoldingOutlineShown()) return;
     Rectangle clip = g.getClipBounds();
 
-    UIUtil.drawVDottedLine(g, getWhitespaceSeparatorOffset(), clip.y, clip.y + clip.height, myEditor.getBackgroundColor(), getOutlineColor(false));
+    UIUtil.drawVDottedLine(g, getWhitespaceSeparatorOffset(), clip.y, clip.y + clip.height, null, getOutlineColor(false));
 
     int anchorX = getFoldingAreaOffset();
     int width = getFoldingAnchorWidth();