diff --git a/app.js b/app.js
index 7580cf198..26aa7c851 100644
--- a/app.js
+++ b/app.js
@@ -36,14 +36,19 @@ function createConference(connection, room) {
 
         setNickname: function (nickname) {
             // FIXME check if room is available etc.
+            APP.settings.setDisplayName(nickname);
             room.setDisplayName(nickname);
         },
 
+        sendMessage: function (message) {
+            room.sendTextMessage(message);
+        },
+
         isModerator: function () {
             return false;
         },
 
-        myJid: function () {
+        localId: function () {
             return room.myUserId();
         }
     };
@@ -54,6 +59,7 @@ var APP = {
 
     init: function () {
         this.JitsiMeetJS.init();
+        this.JitsiMeetJS.setLogLevel(JitsiMeetJS.logLevels.TRACE);
         this.conference = null;
 
         this.UI = require("./modules/UI/UI");
@@ -222,6 +228,13 @@ function initConference(connection, roomName) {
                 reject();
             }
         );
+        room.on(
+            ConferenceErrors.CONNECTION_ERROR,
+            function () {
+                // FIXME handle
+                reject();
+            }
+        );
         APP.UI.closeAuthenticationDialog();
         if (config.useNicks) {
             // FIXME check this
@@ -237,13 +250,19 @@ function init() {
     }).then(function (conference) {
         APP.conference = conference;
 
-        APP.UI.initConference();
+        APP.UI.start();
+
+        // FIXME find own jid
+        APP.UI.initConference("asdfasdf");
 
-        //NicknameHandler emits this event
         APP.UI.addListener(UIEvents.NICKNAME_CHANGED, function (nickname) {
             APP.conference.setNickname(nickname);
         });
 
+        APP.UI.addListener(UIEvents.MESSAGE_CREATED, function (message) {
+            APP.conference.sendMessage(message);
+        });
+
         APP.desktopsharing.init();
         APP.statistics.start();
         APP.connectionquality.init();
@@ -301,7 +320,6 @@ $(document).ready(function () {
         APP.API.init();
     }
 
-    APP.UI.start();
     obtainConfigAndInit();
 });
 
diff --git a/modules/UI/UI.js b/modules/UI/UI.js
index c248639fa..1ead4fd8d 100644
--- a/modules/UI/UI.js
+++ b/modules/UI/UI.js
@@ -21,7 +21,6 @@ UI.messageHandler = require("./util/MessageHandler");
 var messageHandler = UI.messageHandler;
 var Authentication  = require("./authentication/Authentication");
 var UIUtil = require("./util/UIUtil");
-var NicknameHandler = require("./util/NicknameHandler");
 var JitsiPopover = require("./util/JitsiPopover");
 var CQEvents = require("../../service/connectionquality/CQEvents");
 var DesktopSharingEventTypes
@@ -59,7 +58,7 @@ function promptDisplayName() {
             if (v == "ok") {
                 var displayName = f.displayName;
                 if (displayName) {
-                    VideoLayout.inputDisplayNameHandler(displayName);
+                    UI.inputDisplayNameHandler(displayName);
                     return true;
                 }
             }
@@ -88,7 +87,7 @@ function setupPrezi() {
 }
 
 function setupChat() {
-    Chat.init();
+    Chat.init(eventEmitter);
     $("#toggle_smileys").click(function() {
         Chat.toggleSmileys();
     });
@@ -136,13 +135,11 @@ UI.changeDisplayName = function (jid, displayName) {
     VideoLayout.onDisplayNameChanged(jid, displayName);
 };
 
-UI.initConference = function () {
-    // FIXME find own jid
-    var jid = "asdfasdf";
-
+UI.initConference = function (jid) {
     Toolbar.updateRoomUrl(window.location.href);
     var meHTML = APP.translation.generateTranslationHTML("me");
-    $("#localNick").html(Strophe.getResourceFromJid(jid) + " (" + meHTML + ")");
+    var localId = APP.conference.localId();
+    $("#localNick").html(localId + " (" + meHTML + ")");
 
     var settings = Settings.getSettings();
 
@@ -155,8 +152,7 @@ UI.initConference = function () {
     // Once we've joined the muc show the toolbar
     ToolbarToggler.showToolbar();
 
-    var displayName =
-        config.displayJids ? Strophe.getResourceFromJid(jid) : settings.displayName;
+    var displayName = config.displayJids ? localId : settings.displayName;
 
     if (displayName) {
         UI.changeDisplayName('localVideoContainer', displayName);
@@ -211,11 +207,9 @@ UI.start = function () {
     // Set the defaults for prompt dialogs.
     $.prompt.setDefaults({persistent: false});
 
-
     registerListeners();
 
     VideoLayout.init(eventEmitter);
-    NicknameHandler.init(eventEmitter);
 
     bindEvents();
     setupPrezi();
@@ -251,13 +245,8 @@ UI.start = function () {
 
     document.title = interfaceConfig.APP_NAME;
 
-
-
-
-
     if(config.requireDisplayName) {
-        var currentSettings = Settings.getSettings();
-        if (!currentSettings.displayName) {
+        if (APP.settings.getDisplayName()) {
             promptDisplayName();
         }
     }
@@ -667,8 +656,6 @@ UI.setAudioLevel = function (targetJid, lvl) {
     );
 };
 
-UI.showToolbar = ToolbarToggler.showToolbar;
-
 UI.updateDesktopSharingButtons = function () {
     Toolbar.changeDesktopSharingButtonState();
 };
diff --git a/modules/UI/side_pannels/chat/Chat.js b/modules/UI/side_pannels/chat/Chat.js
index ccf63373f..f5a82cc51 100644
--- a/modules/UI/side_pannels/chat/Chat.js
+++ b/modules/UI/side_pannels/chat/Chat.js
@@ -1,9 +1,8 @@
-/* global APP, $, Util, nickname:true */
+/* global APP, $ */
 var Replacement = require("./Replacement");
 var CommandsProcessor = require("./Commands");
 var ToolbarToggler = require("../../toolbars/ToolbarToggler");
 var smileys = require("./smileys.json").smileys;
-var NicknameHandler = require("../../util/NicknameHandler");
 var UIUtil = require("../../util/UIUtil");
 var UIEvents = require("../../../../service/UI/UIEvents");
 
@@ -169,22 +168,18 @@ var Chat = (function (my) {
     /**
      * Initializes chat related interface.
      */
-    my.init = function () {
-        if(NicknameHandler.getNickname())
+    my.init = function (eventEmitter) {
+        if (APP.settings.getDisplayName()) {
             Chat.setChatConversationMode(true);
-        NicknameHandler.addListener(UIEvents.NICKNAME_CHANGED,
-            function (nickname) {
-                Chat.setChatConversationMode(true);
-            });
+        }
 
         $('#nickinput').keydown(function (event) {
             if (event.keyCode === 13) {
                 event.preventDefault();
                 var val = UIUtil.escapeHtml(this.value);
                 this.value = '';
-                if (!NicknameHandler.getNickname()) {
-                    NicknameHandler.setNickname(val);
-
+                if (APP.settings.getDisplayName()) {
+                    eventEmitter.emit(UIEvents.NICKNAME_CHANGED, val);
                     return;
                 }
             }
@@ -203,8 +198,7 @@ var Chat = (function (my) {
                 }
                 else {
                     var message = UIUtil.escapeHtml(value);
-                    APP.xmpp.sendChatMessage(message,
-                                             NicknameHandler.getNickname());
+                    eventEmitter.emit(UIEvents.MESSAGE_CREATED, message);
                 }
             }
         });
diff --git a/modules/UI/side_pannels/settings/SettingsMenu.js b/modules/UI/side_pannels/settings/SettingsMenu.js
index 6012b4b42..c502e02d7 100644
--- a/modules/UI/side_pannels/settings/SettingsMenu.js
+++ b/modules/UI/side_pannels/settings/SettingsMenu.js
@@ -34,7 +34,7 @@ var SettingsMenu = {
             }
         });
 
-        if (APP.xmpp.isModerator()) {
+        if (APP.conference.isModerator()) {
             startMutedSelector.css("display", "block");
         }
         else {
@@ -47,7 +47,7 @@ var SettingsMenu = {
     },
 
     onRoleChanged: function () {
-        if(APP.xmpp.isModerator()) {
+        if(APP.conference.isModerator()) {
             $("#startMutedOptions").css("display", "block");
         }
         else {
diff --git a/modules/UI/util/NicknameHandler.js b/modules/UI/util/NicknameHandler.js
deleted file mode 100644
index fa0c667a9..000000000
--- a/modules/UI/util/NicknameHandler.js
+++ /dev/null
@@ -1,30 +0,0 @@
-var UIEvents = require("../../../service/UI/UIEvents");
-
-var nickname = null;
-var eventEmitter = null;
-
-var NicknameHandler = {
-    init: function (emitter) {
-        eventEmitter = emitter;
-        var storedDisplayName = window.localStorage.displayname;
-        if (storedDisplayName) {
-            nickname = storedDisplayName;
-        }
-    },
-    setNickname: function (newNickname) {
-        if (!newNickname || nickname === newNickname)
-            return;
-
-        nickname = newNickname;
-        window.localStorage.displayname = nickname;
-        eventEmitter.emit(UIEvents.NICKNAME_CHANGED, newNickname);
-    },
-    getNickname: function () {
-        return nickname;
-    },
-    addListener: function (type, listener) {
-        eventEmitter.on(type, listener);
-    }
-};
-
-module.exports = NicknameHandler;
\ No newline at end of file
diff --git a/modules/UI/videolayout/LocalVideo.js b/modules/UI/videolayout/LocalVideo.js
index 51fa47d26..dfc97bb6e 100644
--- a/modules/UI/videolayout/LocalVideo.js
+++ b/modules/UI/videolayout/LocalVideo.js
@@ -1,12 +1,12 @@
 /* global $, interfaceConfig, APP */
 var SmallVideo = require("./SmallVideo");
 var ConnectionIndicator = require("./ConnectionIndicator");
-var NicknameHandler = require("../util/NicknameHandler");
 var UIUtil = require("../util/UIUtil");
+var UIEvents = require("../../../service/UI/UIEvents");
 var LargeVideo = require("./LargeVideo");
 var RTCBrowserType = require("../../RTC/RTCBrowserType");
 
-function LocalVideo(VideoLayout) {
+function LocalVideo(VideoLayout, emitter) {
     this.videoSpanId = "localVideoContainer";
     this.container = $("#localVideoContainer").get(0);
     this.bindHoverHandler();
@@ -14,6 +14,7 @@ function LocalVideo(VideoLayout) {
     this.flipX = true;
     this.isLocal = true;
     this.peerJid = null;
+    this.emitter = emitter;
 }
 
 LocalVideo.prototype = Object.create(SmallVideo.prototype);
@@ -117,11 +118,13 @@ LocalVideo.prototype.setDisplayName = function(displayName, key) {
 
                 editDisplayName.one("focusout", function (e) {
                     self.VideoLayout.inputDisplayNameHandler(this.value);
+                    $('#editDisplayName').hide();
                 });
 
                 editDisplayName.on('keydown', function (e) {
                     if (e.keyCode === 13) {
                         e.preventDefault();
+                        $('#editDisplayName').hide();
                         self.VideoLayout.inputDisplayNameHandler(this.value);
                     }
                 });
@@ -130,25 +133,7 @@ LocalVideo.prototype.setDisplayName = function(displayName, key) {
 };
 
 LocalVideo.prototype.inputDisplayNameHandler = function (name) {
-    name = UIUtil.escapeHtml(name);
-
-    NicknameHandler.setNickname(name);
-
-    var localDisplayName = $('#localDisplayName');
-    if (!localDisplayName.is(":visible")) {
-        if (NicknameHandler.getNickname()) {
-            var meHTML = APP.translation.generateTranslationHTML("me");
-            localDisplayName.html(NicknameHandler.getNickname() + " (" +
-            meHTML + ")");
-        } else {
-            var defaultHTML = APP.translation.generateTranslationHTML(
-                interfaceConfig.DEFAULT_LOCAL_DISPLAY_NAME);
-            localDisplayName .html(defaultHTML);
-        }
-        localDisplayName.show();
-    }
-
-    $('#editDisplayName').hide();
+    this.emitter.emit(UIEvents.NICKNAME_CHANGED, UIUtil.escapeHtml(name));
 };
 
 LocalVideo.prototype.createConnectionIndicator = function() {
diff --git a/modules/UI/videolayout/VideoLayout.js b/modules/UI/videolayout/VideoLayout.js
index 12869f059..ae12d18e7 100644
--- a/modules/UI/videolayout/VideoLayout.js
+++ b/modules/UI/videolayout/VideoLayout.js
@@ -36,7 +36,7 @@ var focusedVideoResourceJid = null;
 var VideoLayout = (function (my) {
     my.init = function (emitter) {
         eventEmitter = emitter;
-        localVideoThumbnail = new LocalVideo(VideoLayout);
+        localVideoThumbnail = new LocalVideo(VideoLayout, emitter);
         if (interfaceConfig.filmStripOnly) {
             LargeVideo.disable();
         } else {
diff --git a/modules/settings/Settings.js b/modules/settings/Settings.js
index 204dbbf34..b038bfc06 100644
--- a/modules/settings/Settings.js
+++ b/modules/settings/Settings.js
@@ -57,6 +57,9 @@ var Settings = {
      * @returns {string} the display name we just set
      */
     setDisplayName: function (newDisplayName) {
+        if (displayName === newDisplayName) {
+            return displayName;
+        }
         displayName = newDisplayName;
         window.localStorage.displayname = displayName;
         return displayName;
diff --git a/service/UI/UIEvents.js b/service/UI/UIEvents.js
index e0b31eae5..3cf53e5fc 100644
--- a/service/UI/UIEvents.js
+++ b/service/UI/UIEvents.js
@@ -3,6 +3,10 @@ var UIEvents = {
     SELECTED_ENDPOINT: "UI.selected_endpoint",
     PINNED_ENDPOINT: "UI.pinned_endpoint",
     LARGEVIDEO_INIT: "UI.largevideo_init",
+    /**
+     * Notifies that local user created text message.
+     */
+    MESSAGE_CREATED: "UI.message_created",
     /**
      * Notifies interested parties when the film strip (remote video's panel)
      * is hidden (toggled) or shown (un-toggled).