Index: LzSprite.as
===================================================================
--- LzSprite.as	(revision 15582)
+++ LzSprite.as	(working copy)
@@ -1273,6 +1273,9 @@
         o If false, does not clip the sprite's children to its width and height 
     */
     public function setClip( clip:Boolean ):void {
+        // Clip is never stored, but it's need in setCornerradius 
+        // to check if we have to apply a mask.
+        this.clip = clip;
         if (clip) {
             applyMask();
         } else {
@@ -1287,10 +1290,14 @@
             ms = new Sprite();
             ms.graphics.clear();
             ms.graphics.beginFill(0xffffff);
-            ms.graphics.drawRect(0, 0, 1, 1);
+            if (this.cornerradius > 0) {
+              ms.graphics.drawRoundRect(0, 0, this.lzwidth, this.lzheight, this.cornerradius*2);
+            } else {                
+                ms.graphics.drawRect(0, 0, 1, 1);
+                ms.scaleX = this.lzwidth;
+                ms.scaleY = this.lzheight;
+            }
             ms.graphics.endFill();
-            ms.scaleX = this.lzwidth;
-            ms.scaleY = this.lzheight;
             addChild(ms);
             this.mask = ms;
             this.masksprite = ms;
@@ -1301,14 +1308,20 @@
                 this.mask = ms;
             }
             //trace('applyMask [2] ', this.lzwidth, this.lzheight, owner);
-            ms.scaleX = this.lzwidth;
-            ms.scaleY = this.lzheight;
+            if (this.cornerradius == 0) {
+                ms.scaleX = this.lzwidth;
+                ms.scaleY = this.lzheight;
+            }
         }
     }
 
     public function removeMask():void {
         if (this.mask != null) {
             this.removeChild(this.masksprite);
+            // With add explicitely setting the masksprite to 'null'
+            // it will still contain the old sprite reference and
+            // applyMask() will fail to create a new mask
+            this.masksprite = null;
             this.mask = null;
         }
     }
@@ -1807,7 +1820,13 @@
 
     var cornerradius = 0;
     function setCornerRadius(radius) {
+        if (this.owner.id.length>4 && this.owner.id.substring(0,4) == 'note') {
+        }
         this.cornerradius = radius;
+        if (this.clip) {
+            this.removeMask();
+            this.applyMask();
+        }
         this.drawBackground();
     }