diff --git a/webclient/components/matrix/event-handler-service.js b/webclient/components/matrix/event-handler-service.js
index 7f53429754..eff8674e04 100644
--- a/webclient/components/matrix/event-handler-service.js
+++ b/webclient/components/matrix/event-handler-service.js
@@ -193,6 +193,17 @@ function(matrixService, $rootScope, $q, $timeout, mPresence, notificationService
     var handleRoomMember = function(event, isLiveEvent, isStateEvent) {
         var room = modelService.getRoom(event.room_id);
         
+        // modify state before adding the message so it points to the right thing.
+        // The events are copied to avoid referencing the same event when adding
+        // the message (circular json structures)
+        if (isStateEvent || isLiveEvent) {
+            room.current_room_state.storeStateEvent(angular.copy(event));
+        }
+        else if (!isLiveEvent) {
+            // mutate the old room state
+            room.old_room_state.storeStateEvent(angular.copy(event));
+        }
+        
         
         // add membership changes as if they were a room message if something interesting changed
         // Exception: Do not do this if the event is a room state event because such events already come
@@ -220,11 +231,7 @@ function(matrixService, $rootScope, $q, $timeout, mPresence, notificationService
             }
         }
         
-        // Use data from state event or the latest data from the stream.
-        // Do not care of events that come when paginating back
-        if (isStateEvent || isLiveEvent) {
-            room.current_room_state.members[event.state_key] = event;
-        }
+        
         
         $rootScope.$broadcast(MEMBER_EVENT, event, isLiveEvent, isStateEvent);
     };
@@ -439,7 +446,8 @@ function(matrixService, $rootScope, $q, $timeout, mPresence, notificationService
 
             }
             else {
-                // InitialSync returns messages in chronological order
+                // InitialSync returns messages in chronological order, so invert
+                // it to get most recent > oldest
                 for (var i=events.length - 1; i>=0; i--) {
                     this.handleEvent(events[i], isLiveEvents, isLiveEvents);
                 }
@@ -482,6 +490,8 @@ function(matrixService, $rootScope, $q, $timeout, mPresence, notificationService
                 newRoom.current_room_state.storeStateEvents(room.state);
                 newRoom.old_room_state.storeStateEvents(room.state);
 
+                // this should be done AFTER storing state events since these
+                // messages may make the old_room_state diverge.
                 if ("messages" in room) {
                     this.handleRoomMessages(room.room_id, room.messages, false);
                     newRoom.current_room_state.pagination_token = room.messages.end;
diff --git a/webclient/room/room.html b/webclient/room/room.html
index 3f4c4c57b6..cd2a5e9c23 100644
--- a/webclient/room/room.html
+++ b/webclient/room/room.html
@@ -127,14 +127,14 @@
             <tr ng-repeat="msg in room.events"
                 ng-class="(room.events[$index + 1].user_id !== msg.user_id ? 'differentUser' : '') + (msg.user_id === state.user_id ? ' mine' : '')" scroll-item>
                 <td class="leftBlock">
-                    <div class="sender" ng-hide="room.events[$index - 1].user_id === msg.user_id"> {{ msg.user_id | mUserDisplayName: room_id }}</div>
+                    <div class="sender" ng-hide="room.events[$index - 1].user_id === msg.user_id"> {{ msg.room_member.content.displayname || msg.user_id | mUserDisplayName: room_id }}</div>
                     <div class="timestamp"
                          ng-class="msg.echo_msg_state">
                         {{ (msg.origin_server_ts) | date:'MMM d HH:mm' }}
                     </div>
                 </td>
                 <td class="avatar">
-                    <img class="avatarImage" ng-src="{{ members[msg.user_id].avatar_url || 'img/default-profile.png' }}" width="32" height="32" title="{{msg.user_id}}"
+                    <img class="avatarImage" ng-src="{{ msg.room_member.content.avatar_url || 'img/default-profile.png' }}" width="32" height="32" title="{{msg.user_id}}"
                          ng-hide="room.events[$index - 1].user_id === msg.user_id || msg.user_id === state.user_id"/>
                 </td>
                 <td ng-class="(!msg.content.membership && ('m.room.topic' !== msg.type && 'm.room.name' !== msg.type))? (msg.content.msgtype === 'm.emote' ? 'emote text' : 'text') : 'membership text'">