--- a/layout/base/FrameLayerBuilder.cpp
+++ b/layout/base/FrameLayerBuilder.cpp
@@ -2663,30 +2663,40 @@ ChooseScaleAndSetTransform(FrameLayerBui
     gfx3DMatrix::ScalingMatrix(aIncomingScale.mXScale, aIncomingScale.mYScale, 1.0);
   if (aTransform) {
     // aTransform is applied first, then the scale is applied to the result
     transform = (*aTransform)*transform;
     // Set any matrix entries close to integers to be those exact integers.
     // This protects against floating-point inaccuracies causing problems
     // in the checks below.
     transform.NudgeToIntegers();
-  } 
-  if (aContainerFrame && aState == LAYER_INACTIVE) {
+  }
+  gfxMatrix transform2d;
+  if (aContainerFrame &&
+      aState == LAYER_INACTIVE &&
+      (!aTransform || (aTransform->Is2D(&transform2d) &&
+                       !transform2d.HasNonTranslation()))) {
     // When we have an inactive ContainerLayer, translate the container by the offset to the
     // reference frame (and offset all child layers by the reverse) so that the coordinate
     // space of the child layers isn't affected by scrolling.
+    // This gets confusing for complicated transform (since we'd have to compute the scale
+    // factors for the matrix), so we don't bother. Any frames that are building an nsDisplayTransform
+    // for a css transform would have 0,0 as their offset to the reference frame, so this doesn't
+    // matter.
     nsPoint appUnitOffset = aDisplayListBuilder->ToReferenceFrame(aContainerFrame);
     nscoord appUnitsPerDevPixel = aContainerFrame->PresContext()->AppUnitsPerDevPixel();
     offset = nsIntPoint(
         int32_t(NSAppUnitsToDoublePixels(appUnitOffset.x, appUnitsPerDevPixel)*aIncomingScale.mXScale),
         int32_t(NSAppUnitsToDoublePixels(appUnitOffset.y, appUnitsPerDevPixel)*aIncomingScale.mYScale));
   }
-  transform = transform * gfx3DMatrix::Translation(offset.x + aIncomingScale.mOffset.x, offset.y + aIncomingScale.mOffset.y, 0);
-
-  gfxMatrix transform2d;
+  transform = gfx3DMatrix::Translation(aIncomingScale.mOffset.x, aIncomingScale.mOffset.y, 0) * 
+              transform * 
+              gfx3DMatrix::Translation(offset.x, offset.y, 0);
+
+
   bool canDraw2D = transform.CanDraw2D(&transform2d);
   gfxSize scale;
   bool isRetained = aLayer->Manager()->IsWidgetLayerManager();
   // Only fiddle with scale factors for the retaining layer manager, since
   // it only matters for retained layers
   // XXX Should we do something for 3D transforms?
   if (canDraw2D && isRetained) {
     //Scale factors are normalized to a power of 2 to reduce the number of resolution changes