diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemView.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemView.java
index baab810a4b7..e092a13fdee 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemView.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemView.java
@@ -66,6 +66,7 @@
  * David McKnight   (IBM)        - [241744] Refresh collapse low level nodes which is expended before.
  * David McKnight   (IBM)        - [249245] not showing inappropriate popup actions for: Refresh, Show In Table, Go Into, etc. 
  * David McKnight   (IBM)        - [251625] Widget disposed exception when renaming/pasting a folder
+ * David McKnight   (IBM)        - [257721] Doubleclick doing special handling and expanding
  ********************************************************************************/
 
 package org.eclipse.rse.internal.ui.view;
@@ -391,6 +392,8 @@ public class SystemView extends SafeTreeViewer
 	protected ViewerFilter[] initViewerFilters = null;
 
 	protected List _setList;
+	
+	protected boolean _allowAdapterToHandleDoubleClick = true;
 
 	/**
 	 * Constructor
@@ -643,7 +646,14 @@ public class SystemView extends SafeTreeViewer
 		TreePath[] paths = s.getPathsFor(element);
 		if (paths == null || paths.length == 0 || paths[0] == null) return;
 		TreePath elementPath = paths[0];
-		if (isExpandable(elementPath)) {
+		
+		// bringing back handling at the adapter level here due to bug 257721
+		ISystemViewElementAdapter adapter = getViewAdapter(element);
+		boolean alreadyHandled = false;
+		if (adapter != null && _allowAdapterToHandleDoubleClick) 
+			alreadyHandled = adapter.handleDoubleClick(element);	
+		
+		if (!alreadyHandled && isExpandable(element)) {
 			boolean expandedState = getExpandedState(elementPath);
 			setExpandedState(elementPath, !expandedState);
 			// DWD:  fire collapse / expand event
@@ -6642,5 +6652,8 @@ public class SystemView extends SafeTreeViewer
 		}
 	}
 
-
+	public void allowAdapterToHandleDoubleClick(boolean flag)
+	{
+		_allowAdapterToHandleDoubleClick = flag;
+	}
 }
diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewForm.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewForm.java
index 09d9ab559d7..b2136103924 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewForm.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewForm.java
@@ -16,6 +16,7 @@
  * Martin Oberhuber (Wind River) - [190271] Move ISystemViewInputProvider to Core
  * David McKnight    (IBM)   - [187711] select SystemView APIs exposed by the ISystemTree interface
  * David McKnight   (IBM)        - [225506] [api][breaking] RSE UI leaks non-API types
+ * David McKnight   (IBM)        - [257721] Doubleclick doing special handling and expanding
  *******************************************************************************/
 package org.eclipse.rse.internal.ui.view;
 import java.util.List;
@@ -437,6 +438,9 @@ public class SystemViewForm extends Composite implements  ISystemTree
 	    treeData.heightHint= 200;
 	    tree.getTree().setLayoutData(treeData);  	  	    		
 	    tree.setShowActions(showActions);
+	    
+	    // for bug 257721, when using system view from a dialog, by default, we don't let adapter handle double-click
+	    tree.allowAdapterToHandleDoubleClick(false);
 	}
 	
 	protected void addOurMouseListener()
diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewPart.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewPart.java
index 79a3f390b64..ac5b17bd539 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewPart.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/internal/ui/view/SystemViewPart.java
@@ -36,6 +36,7 @@
  * David McKnight (IBM)  - [247544] [performance] Restoring Selection on Restart can cause the UI to freeze
  * Kevin Doyle 		(IBM)		 - [242431] Register a new unique context menu id, so contributions can be made to all our views
  * Li Ding          (IBM)        - [256135] Subsystem not restored in system view tree if subsystem configuration does not support filter
+ * David McKnight   (IBM)        - [257721] Doubleclick doing special handling and expanding
  *******************************************************************************/
 
 package org.eclipse.rse.internal.ui.view;
@@ -61,8 +62,6 @@ import org.eclipse.jface.action.IToolBarManager;
 import org.eclipse.jface.action.MenuManager;
 import org.eclipse.jface.action.Separator;
 import org.eclipse.jface.resource.ImageDescriptor;
-import org.eclipse.jface.viewers.DoubleClickEvent;
-import org.eclipse.jface.viewers.IDoubleClickListener;
 import org.eclipse.jface.viewers.ILabelProvider;
 import org.eclipse.jface.viewers.ISelection;
 import org.eclipse.jface.viewers.ISelectionChangedListener;
@@ -383,11 +382,6 @@ public class SystemViewPart
 		//hook the part focus to the viewer's control focus.
 		//hookFocus(systemView.getControl());
 
-		systemView.addDoubleClickListener(new IDoubleClickListener() {
-			public void doubleClick(DoubleClickEvent event) {
-				handleDoubleClick(event);
-			}
-		});
 
 		//prime the selection
 		//selectionChanged(null, getSite().getDesktopWindow().getSelectionService().getSelection());
@@ -476,23 +470,6 @@ public class SystemViewPart
 		}
 	}
 
-	/**
-	 * Handles double clicks in viewer.
-	 * Opens editor if file double-clicked.
-	 */
-	protected void handleDoubleClick(DoubleClickEvent event) {
-		if (!systemView.enabledMode) {
-			//event.doit = false;
-			return;
-		}
-		IStructuredSelection s = (IStructuredSelection) event.getSelection();
-		Object element = s.getFirstElement();
-		if (element == null) return;
-		ISystemViewElementAdapter adapter = systemView.getViewAdapter(element);
-		if (adapter != null)
-			adapter.handleDoubleClick(element);
-
-	}
 
 	/**
 	 * Creates the frame source and frame list, and connects them.