 
             // Set position
             layoutItem.setActualPosition(childX, childY);
+            
+            // update content limits
+            maxX = Math.max(maxX, childX + childWidth);
+            maxY = Math.max(maxY, childY + childHeight);
         }
         
-        setScrollRect(layoutTarget, unscaledWidth, unscaledHeight);
+        layoutTarget.setContentSize(maxX, maxY);
     }
 }
 

    //  Class methods
    //
    //--------------------------------------------------------------------------
    
    /**
     * Layout class utility function used by updateDisplayList functions.
     * Conditionally sets the origin of the specified Group's scrollRect to 
     * verticalScrollPosition,horizontalScrollPosition and its width
     * width,height to unscaledWidth,unscaledHeight.  We avoid setting
     * the scrollRect (and therefore clipping) when scrolling isn't indicated:
     * if the scrollRect is currently null and the scrollPosition properties
     * are 0, and the Group's contentWidth,Height is &lt;= to unscaledWidth,Height,
     * then the scrollRect is not set.
     */ 
    static function setScrollRect(g:Group, unscaledWidth:Number, unscaledHeight:Number):void
    {
        var r:Rectangle = g.scrollRect;
        if (r != null) 
        {
            r.width = unscaledWidth;
            r.height = unscaledHeight;
            g.scrollRect = r;
        }
        else // scrollRect wasn't set
        {
            var hsp:Number = g.horizontalScrollPosition;
            var vsp:Number = g.verticalScrollPosition;
            var cw:Number = g.contentWidth;
            var ch:Number = g.contentHeight;
            // don't set the scrollRect needlessly
            if ((hsp != 0) || (vsp != 0) || (cw > unscaledWidth) || (ch > unscaledHeight))
                g.scrollRect = new Rectangle(hsp, vsp, unscaledWidth, unscaledHeight);
        }
    }
    

    //--------------------------------------------------------------------------
    //

    //
    //--------------------------------------------------------------------------

    //----------------------------------
    // target
    //----------------------------------

    private var _target:Group;

    public function get target():Group
