diff --git a/lib/OpenLayers/Layer.js b/lib/OpenLayers/Layer.js
index 1270e35af2..2fb891336d 100644
--- a/lib/OpenLayers/Layer.js
+++ b/lib/OpenLayers/Layer.js
@@ -347,17 +347,9 @@ OpenLayers.Layer = OpenLayers.Class({
             this.id = OpenLayers.Util.createUniqueID(this.CLASS_NAME + "_");
 
             this.div = OpenLayers.Util.createDiv(this.id);
-            var style = this.div.style;
-            style.width = "100%";
-            style.height = "100%";
-            style.overflow = "";
-            this.div.className = "olLayerDiv";
+            this.div.style.width = "100%";
+            this.div.style.height = "100%";
             this.div.dir = "ltr";
-            if (this.opacity != null && this.opacity < 1) {
-                OpenLayers.Util.modifyDOMElement(
-                    this.div, null, null, null, null, null, null, this.opacity
-                );
-            }
 
             this.events = new OpenLayers.Events(this, this.div, 
                                                 this.EVENT_TYPES);
@@ -370,19 +362,6 @@ OpenLayers.Layer = OpenLayers.Class({
         if (this.wrapDateLine) {
             this.displayOutsideMaxExtent = true;
         }
-        
-        //TODO remove the if block below when we drop support for IE8.
-        if (parseInt(navigator.appVersion.split("MSIE")[1], 10) == 8) {
-            // Workaround for opacity handling in IE8 - also see
-            // .ie8-opacity-hack selectors in theme/default/style.css
-            this.events.register("loadend", this, function() {
-                var opacity = this.opacity;
-                if (opacity != null && opacity >= 0 && opacity < 1) {
-                    OpenLayers.Element.addClass(this.div, "ie8-opacity-hack");
-                    this.div.style.filter = "alpha(opacity=" + (opacity * 100) + ")";
-                }
-            });
-        }
     },
     
     /**
@@ -1291,8 +1270,11 @@ OpenLayers.Layer = OpenLayers.Class({
     setOpacity: function(opacity) {
         if (opacity != this.opacity) {
             this.opacity = opacity;
-            OpenLayers.Util.modifyDOMElement(this.div, null, null, null, 
-                                             null, null, null, opacity);
+            for(var i=0, len=this.div.childNodes.length; i<len; ++i) {
+                var element = this.div.childNodes[i].firstChild;
+                OpenLayers.Util.modifyDOMElement(element, null, null, null, 
+                                                 null, null, null, opacity);
+            }
             if (this.map != null) {
                 this.map.events.triggerEvent("changelayer", {
                     layer: this,
diff --git a/lib/OpenLayers/Layer/Markers.js b/lib/OpenLayers/Layer/Markers.js
index 882eb21761..09a262a348 100644
--- a/lib/OpenLayers/Layer/Markers.js
+++ b/lib/OpenLayers/Layer/Markers.js
@@ -60,6 +60,22 @@ OpenLayers.Layer.Markers = OpenLayers.Class(OpenLayers.Layer, {
         OpenLayers.Layer.prototype.destroy.apply(this, arguments);
     },
 
+    /**
+     * APIMethod: setOpacity
+     * Sets the opacity for all the markers.
+     * 
+     * Parameter:
+     * opacity - {Float}
+     */
+    setOpacity: function(opacity) {
+        if (opacity != this.opacity) {
+            this.opacity = opacity;
+            for (var i=0, len=this.markers.length; i<len; i++) {
+                this.markers[i].setOpacity(this.opacity);
+            }
+        }
+    },
+
     /** 
      * Method: moveTo
      *
diff --git a/lib/OpenLayers/Layer/WFS.js b/lib/OpenLayers/Layer/WFS.js
index bbfc69b70f..af9ef0376b 100644
--- a/lib/OpenLayers/Layer/WFS.js
+++ b/lib/OpenLayers/Layer/WFS.js
@@ -590,5 +590,21 @@ OpenLayers.Layer.WFS = OpenLayers.Class(
         return extent;
     },
     
+    /** 
+     * APIMethod: setOpacity 
+     * Call the setOpacity method of the appropriate parent class to set the
+     *     opacity.  
+     * 
+     * Parameter: 
+     * opacity - {Float} 
+     */
+    setOpacity: function (opacity) {
+        if (this.vectorMode) {
+            OpenLayers.Layer.Vector.prototype.setOpacity.apply(this, [opacity]);
+        } else {
+            OpenLayers.Layer.Markers.prototype.setOpacity.apply(this, [opacity]);
+        }    
+    },
+
     CLASS_NAME: "OpenLayers.Layer.WFS"
 });
diff --git a/lib/OpenLayers/Map.js b/lib/OpenLayers/Map.js
index f1963eef19..3f2ded4e95 100644
--- a/lib/OpenLayers/Map.js
+++ b/lib/OpenLayers/Map.js
@@ -971,6 +971,8 @@ OpenLayers.Map = OpenLayers.Class({
         }
 
         
+        layer.div.className = "olLayerDiv";
+        layer.div.style.overflow = "";
         this.setLayerZIndex(layer, this.layers.length);
 
         if (layer.isFixed) {
diff --git a/tests/Layer.html b/tests/Layer.html
index ed72772b25..92976c6f21 100644
--- a/tests/Layer.html
+++ b/tests/Layer.html
@@ -786,15 +786,14 @@
     }
     
     function test_setOpacity(t) {
-        t.plan(8);
+        t.plan(5);
 
         var map, layer, log;
         
         map = new OpenLayers.Map("map");
-        layer = new OpenLayers.Layer("", {opacity: 0.56});
+        layer = new OpenLayers.Layer("");
         map.addLayer(layer);
 
-        t.eq(layer.div.style.opacity, "0.56", "initial opacity correctly applied as layer.div style");
         log = [];
         map.events.register('changelayer', t, function(event) {
             log.push({layer: event.layer, property: event.property});
@@ -802,7 +801,6 @@
         layer.setOpacity(0.42);
         t.eq(layer.opacity, 0.42,
              "setOpacity() set layer.opacity to correct value");
-        t.eq(layer.div.style.opacity, "0.42", "opacity correctly applied as layer.div style");
         t.eq(log.length, 1,
              "setOpacity() triggers changelayer once");
         t.ok(log[0].layer == layer,
@@ -815,12 +813,6 @@
         layer.setOpacity(0.42);
         t.eq(log.length, 0,
              "setOpacity() does not trigger changelayer if the opacity value is the same");
-
-        // 0 as initial opacity
-        layer.destroy();
-        layer = new OpenLayers.Layer("", {opacity: 0});        
-        map.addLayer(layer);
-        t.eq(layer.div.style.opacity, "0", "initial opacity correctly applied as layer.div style");
     }
 
 
diff --git a/tests/Layer/ArcGIS93Rest.html b/tests/Layer/ArcGIS93Rest.html
index 66efc344f0..a8ff410bdc 100644
--- a/tests/Layer/ArcGIS93Rest.html
+++ b/tests/Layer/ArcGIS93Rest.html
@@ -195,6 +195,31 @@
  
     }
 
+    function test_Layer_AGS93_setOpacity (t) {
+        var params = {layers: "show:0,2"};
+        t.plan( 5 );
+
+        var map = new OpenLayers.Map('map');
+        map.projection = "xx";
+        tParams = { layers: 'show:0,2', 
+                   format: 'png'};
+        tOptions = { 'opacity': '0.5' };           
+        var tLayer = new OpenLayers.Layer.ArcGIS93Rest(name, url, tParams, tOptions);
+        map.addLayer(tLayer);
+        map.zoomToMaxExtent();
+        t.eq(tLayer.opacity, "0.5", "Opacity is set correctly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.5, "Opacity on tile is correct");
+        tLayer.setOpacity("0.6");
+        t.eq(tLayer.opacity, "0.6", "setOpacity works properly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.6, "Opacity on tile is changed correctly");
+        var pixel = new OpenLayers.Pixel(5,6);
+        var tile = tLayer.addTile(new OpenLayers.Bounds(1,2,3,4), pixel);
+        tile.draw();
+        t.eq(parseFloat(tile.imgDiv.style.opacity), 0.6, "Tile opacity is set correctly");
+
+        map.destroy();
+    }    
+    
     function test_Layer_AGS93_noGutters (t) { 
         t.plan(2);
         var map = new OpenLayers.Map('map');
diff --git a/tests/Layer/MapServer.html b/tests/Layer/MapServer.html
index 338a5460e2..1e4e52d48f 100644
--- a/tests/Layer/MapServer.html
+++ b/tests/Layer/MapServer.html
@@ -196,6 +196,31 @@
 
     }
 
+    function test_Layer_MapServer_setOpacity (t) {
+        t.plan( 5 );
+
+        var map = new OpenLayers.Map('map');
+        map.projection = "xx";
+        tUrl = "http://labs.metacarta.com/cgi-bin/mapserv";
+        tParams = { layers: 'basic', 
+                   format: 'image/png'};
+        tOptions = { 'opacity': '0.5' };           
+        var tLayer = new OpenLayers.Layer.MapServer(name, tUrl, tParams, tOptions);
+        map.addLayer(tLayer);
+        map.zoomToMaxExtent();
+        t.eq(tLayer.opacity, "0.5", "Opacity is set correctly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.5, "Opacity on tile is correct");
+        tLayer.setOpacity("0.6");
+        t.eq(tLayer.opacity, "0.6", "setOpacity works properly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.6, "Opacity on tile is changed correctly");
+        var pixel = new OpenLayers.Pixel(5,6);
+        var tile = tLayer.addTile(new OpenLayers.Bounds(1,2,3,4), pixel);
+        tile.draw();
+        t.eq(parseFloat(tile.imgDiv.style.opacity), 0.6, "Tile opacity is set correctly");
+        map.destroy();
+
+    }    
+    
     function test_Layer_MapServer_Reproject (t) { 
         var validkey = (window.location.protocol == "file:") ||
                        (window.location.host == "localhost") ||
@@ -386,6 +411,27 @@
 
     }
 
+    function test_Layer_MapServer_Untiled_setOpacity (t) {
+        t.plan( 4 );
+
+        var map = new OpenLayers.Map('map');
+        map.projection = "xx";
+        tUrl = "http://labs.metacarta.com/cgi-bin/mapserv";
+        tParams = { layers: 'basic', 
+                   format: 'image/png'};
+        tOptions = { 'opacity': '0.5' };           
+        var tLayer = new OpenLayers.Layer.MapServer.Untiled(name, tUrl, tParams, tOptions);
+        map.addLayer(tLayer);
+        map.zoomToMaxExtent();
+        t.eq(tLayer.opacity, "0.5", "Opacity is set correctly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.5, "Opacity on tile is correct");
+        tLayer.setOpacity("0.6");
+        t.eq(tLayer.opacity, "0.6", "setOpacity works properly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.6, "Opacity on tile is changed correctly");
+        map.destroy();
+
+    }    
+
     // DEPRECATED -- REMOVE IN 3.0
     function test_Layer_Untiled_MapServer(t) { 
         t.plan(1);
diff --git a/tests/Layer/Markers.html b/tests/Layer/Markers.html
index 929e1e2c9b..2db3052e60 100644
--- a/tests/Layer/Markers.html
+++ b/tests/Layer/Markers.html
@@ -121,6 +121,33 @@
 
     }
 
+    function test_setOpacity(t) {
+        t.plan(1);
+
+        layer = new OpenLayers.Layer.Markers('Test Layer');
+
+        var opacity = 0.1234;
+        
+        for (var i = 0; i < 12; i++) {
+            layer.addMarker(new OpenLayers.Marker(new OpenLayers.LonLat(0,0), new OpenLayers.Icon()));
+        }
+
+        layer.setOpacity(opacity);
+
+        for (var i = 0; i < 4; i++) {
+            layer.addMarker(new OpenLayers.Marker(new OpenLayers.LonLat(0,0), new OpenLayers.Icon()));
+        }
+        
+        var itWorks = false;
+        for (var i = 0; i < layer.markers.length; i++) {
+            itWorks = parseFloat(layer.markers[i].icon.imageDiv.style.opacity) == opacity;
+            if (!itWorks) {
+                break;
+            }
+        }
+        t.ok(itWorks, "setOpacity change markers opacity");
+    }
+
   </script>
 </head>
 <body>
diff --git a/tests/Layer/WFS.html b/tests/Layer/WFS.html
index b9f85182d2..42b566acfe 100644
--- a/tests/Layer/WFS.html
+++ b/tests/Layer/WFS.html
@@ -25,6 +25,22 @@
 
     }
     
+    function test_Layer_WFS_setOpacity(t) {
+        t.plan(3);
+
+        var layer = new OpenLayers.Layer.WFS(name, "url", {});
+        layer.setOpacity(.5);
+        t.eq(layer.opacity, 0.5, "vector setOpacity didn't fail");
+        var layer = new OpenLayers.Layer.WFS(name, "url", {}, {'featureClass': OpenLayers.Feature.WFS});
+        var marker = new OpenLayers.Marker(new OpenLayers.LonLat(0,0));
+        marker.setOpacity = function() {
+            t.ok(true, "Marker setOpacity was called");
+        }    
+        layer.addMarker(marker);
+        layer.setOpacity(.6);
+        t.eq(layer.opacity, 0.6, "setOpacity didn't fail on markers");
+    }
+    
     function test_Layer_WFS_destroy(t) {
         t.plan(13);
         
diff --git a/tests/Layer/WMS.html b/tests/Layer/WMS.html
index 557395df30..05b2adb64c 100644
--- a/tests/Layer/WMS.html
+++ b/tests/Layer/WMS.html
@@ -281,6 +281,31 @@
 
     }
 
+    function test_Layer_WMS_setOpacity (t) {
+        t.plan( 5 );
+
+        var map = new OpenLayers.Map('map');
+        map.projection = "xx";
+        tUrl = "http://octo.metacarta.com/cgi-bin/mapserv";
+        tParams = { layers: 'basic',
+                   format: 'image/png'};
+        tOptions = { 'opacity': '0.5' };
+        var tLayer = new OpenLayers.Layer.WMS(name, tUrl, tParams, tOptions);
+        map.addLayer(tLayer);
+        map.zoomToMaxExtent();
+        t.eq(tLayer.opacity, "0.5", "Opacity is set correctly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.5, "Opacity on tile is correct");
+        tLayer.setOpacity("0.6");
+        t.eq(tLayer.opacity, "0.6", "setOpacity works properly");
+        t.eq(parseFloat(tLayer.div.firstChild.firstChild.style.opacity), 0.6, "Opacity on tile is changed correctly");
+        var pixel = new OpenLayers.Pixel(5,6);
+        var tile = tLayer.addTile(new OpenLayers.Bounds(1,2,3,4), pixel);
+        tile.draw();
+        t.eq(parseFloat(tile.imgDiv.style.opacity), 0.6, "Tile opacity is set correctly");
+
+        map.destroy();
+    }
+
     function test_Layer_WMS_Reproject (t) {
         var validkey = (window.location.protocol == "file:") ||
                        (window.location.host == "localhost") ||
diff --git a/theme/default/style.css b/theme/default/style.css
index 1c835d45af..3aeac29c2e 100644
--- a/theme/default/style.css
+++ b/theme/default/style.css
@@ -14,15 +14,6 @@ div.olLayerDiv {
    -khtml-user-select: none;
 }
 
-/* TODO remove the two style definitions below when we drop support for IE8 */
-div.olLayerDiv.ie8-opacity-hack {
-    width: 9999px !important;
-    height: 9999px !important;
-}
-div.olLayerDiv.ie8-opacity-hack div, .ie8-opacity-hack img.olTileImage {
-    filter: inherit;
-}
-
 .olLayerGoogleCopyright {
     left: 2px;
     bottom: 2px;