diff --git a/source/blender/src/editipo.c b/source/blender/src/editipo.c
index f0a5020025a..f0a9edd5826 100644
--- a/source/blender/src/editipo.c
+++ b/source/blender/src/editipo.c
@@ -3166,92 +3166,6 @@ void clean_ipo_curve(IpoCurve *icu)
 	calchandles_ipocurve(icu);
 }
 
-static void smooth_bezt_handles(BezTriple *prev, BezTriple *me, BezTriple *next)
-{
-	/* Smoothes (i.e. aligns) handles on the beztriple called me! 
-	 *
-	 * The code here has been adapted from the "Smooth Ipo"
-	 * python script (author unknown).
-	 */
-	
-	float ptA[2], ptB[2], ptC[2];
-	float tdx, udx;
-	float tdy, udy;
-	float tx, ux;
-	float max_udy, max_tdy;
-	float slopu, slopt;
-	float medianSlope, slope;
-	float simpleudy, simpletdy;
-	float ty, uy;
-	
-	/* get center-points of beztriples */
-	ptA[0]= prev->vec[1][0];
-	ptA[1]= prev->vec[1][1];
-	ptB[0]= me->vec[1][0];
-	ptB[1]= me->vec[1][1];
-	if (next != NULL) {
-		ptC[0]= next->vec[1][0];
-		ptC[1]= next->vec[1][1];
-	}
-	else {
-		ptC[0]= ptB[0] + 1.0f;
-		ptC[1]= ptB[1];
-	}
-	
-	/* varios factors (are all of these needed?) */
-	tdx= (ptA[0]-ptB[0]) / 3.0f;
-	udx= (ptC[0]-ptB[0]) / 3.0f;
-	tx= ptB[0] + tdx;
-	ux= ptB[0] + udx;
-	max_udy= ptC[1] - ptB[1];
-	max_tdy= ptA[1] - ptB[1];
-	
-	/* compute slopes */
-	if ((ptC[0]-ptB[0])==0.0) 
-		slopu= 0.0f;
-	else
-		slopu= (ptC[1]-ptB[1]) / (ptC[0]-ptB[0]);
-	if ((ptA[0]-ptB[0])==0.0)
-		slopt= 0.0f;
-	else
-		slopt= (ptA[1]-ptB[1]) / (ptA[0]-ptB[0]);
-	if ((slopu*slopt) < 0) {
-		udy= 0;
-		tdy= 0;
-	}
-	else {
-		/* compute median slope */
-		medianSlope= (slopu+slopt) / 2.0;
-		simpleudy= medianSlope * udx;
-		simpletdy= medianSlope * tdx;
-		
-		if ((simpleudy < max_udy) && (simpletdy < max_tdy)) {
-			udy= simpleudy;
-			tdy= simpletdy;
-		}
-		else {
-			/* use smallest slope */
-			slope = (slopu < slopt)?slopu:slopt;
-			slope = slope * ((slopu < 0)?-1:1);
-			udy= slope*udx;
-			tdy= slope*tdx;
-		}
-	}
-	
-	/* calculate any remaining values  */
-	ty= ptB[1] + tdy;
-	uy= ptB[1] + udy;
-	
-	/* set new values of the handles of of beztriple being acted on */
-	me->vec[0][0]= tx;
-	me->vec[0][1]= ty;
-	me->vec[1][0]= ptB[0];
-	me->vec[1][1]= ptB[1];
-	me->vec[2][0]= ux;
-	me->vec[2][1]= uy;
-	me->vec[0][2] = me->vec[1][2] = me->vec[2][2] = 0.0f;
-}
-
 void smooth_ipo(void)
 {
 	EditIpo *ei;
@@ -3271,23 +3185,49 @@ void smooth_ipo(void)
 			
 			if(ok) {
 				IpoCurve *icu= ei->icu;
+				BezTriple *bezt;
+				float meanValSum = 0.0f, meanVal;
+				float valDiff;
+				int i, totSel = 0;
 				
 				/* check if enough points */
-				if (icu->totvert <= 3) {
-					BezTriple *prev, *me, *next;
-					int i;
-					
-					for (i=1; i < icu->totvert; i++) {
-						/* try to get next point */
-						prev = (icu->bezt + (i - 1));
-						me = (icu->bezt + i);
-						if (i < (icu->totvert - 1))
-							next = (icu->bezt + (i + 1));
-						else
-							next = NULL;
+				if (icu->totvert >= 3) {
+					/* first loop through - obtain average value */
+					bezt= icu->bezt;
+					for (i=1; i < icu->totvert; i++, bezt++) {						
+						if (BEZSELECTED(bezt)) {							
+							/* line point's handles up with point's vertical position */
+							bezt->vec[0][1]= bezt->vec[2][1]= bezt->vec[1][1];
+							if(bezt->h1==HD_AUTO || bezt->h1==HD_VECT) bezt->h1= HD_ALIGN;
+							if(bezt->h2==HD_AUTO || bezt->h2==HD_VECT) bezt->h2= HD_ALIGN;
 							
-						/* smooth handles of current beztriple (me) */
-						smooth_bezt_handles(prev, me, next);
+							/* add value to total */
+							meanValSum += bezt->vec[1][1];
+							totSel++;
+						}
+					}
+					
+					/* calculate mean value */
+					meanVal= meanValSum / totSel;
+					
+					/* second loop through - update point positions */
+					bezt= icu->bezt;
+					for (i=0; i < icu->totvert; i++, bezt++) {						
+						if (BEZSELECTED(bezt)) {
+							/* 1. calculate difference between the points 
+							 * 2. move point half-way along that distance 
+							 */
+							if (bezt->vec[1][1] > meanVal) {
+								/* bezt val above mean */
+								valDiff= bezt->vec[1][1] - meanVal;
+								bezt->vec[1][1]= meanVal + (valDiff / 2);
+							}
+							else {
+								/* bezt val below mean */
+								valDiff= meanVal - bezt->vec[1][1];
+								bezt->vec[1][1] = bezt->vec[1][1] + (valDiff / 2);								
+							}
+						}
 					}
 				}