diff -urN aa/desktop-file-utils-0.7/src/menu-entries.c desktop-file-utils-0.7/src/menu-entries.c
--- aa/desktop-file-utils-0.7/src/menu-entries.c	2004-07-28 15:19:30.490876392 +0200
+++ desktop-file-utils-0.7/src/menu-entries.c	2004-07-28 21:28:13.552659792 +0200
@@ -42,6 +42,7 @@
   char *absolute_path;
   
   unsigned int *categories; /* 0-terminated array of atoms */
+	gboolean show;
   
   guint type : 4;
   guint refcount : 24;
@@ -82,7 +83,8 @@
 static Entry*
 entry_new (EntryType   type,
            const char *relative_path,
-           const char *absolute_path)
+           const char *absolute_path,
+					 gboolean    show)
 {
   Entry *e;
 
@@ -93,6 +95,7 @@
   e->relative_path = g_strdup (relative_path);
   e->absolute_path = g_strdup (absolute_path);
   e->refcount = 1;
+	e->show=show;
   
   return e;
 }
@@ -150,6 +153,11 @@
     return entry->relative_path;
 }
 
+gboolean entry_get_show (Entry *entry)
+{
+	return entry->show;
+}
+
 gboolean
 entry_has_category (Entry      *entry,
                     EntryCache *cache,
@@ -371,7 +379,7 @@
       return src;
     }
   
-  e = entry_new (src->type, relative_path, src->absolute_path);
+  e = entry_new (src->type, relative_path, src->absolute_path, src->show);
   
   n_categories_to_copy = 0;
   if (src->categories)
@@ -441,7 +449,7 @@
   if (src->type != ENTRY_DIRECTORY)
     return NULL;
   
-  e = entry_new (src->type, relative_path, src->absolute_path);
+  e = entry_new (src->type, relative_path, src->absolute_path, src->show);
   
   return e;
 }
@@ -1874,7 +1882,7 @@
         }
     }
 
-  e = entry_new (ENTRY_DESKTOP, basename, filename);
+  e = entry_new (ENTRY_DESKTOP, basename, filename, TRUE);
   
   categories = find_value (str, "Categories");
   if (categories != NULL)
@@ -1893,7 +1901,48 @@
 entry_new_directory_from_file (const char *filename,
                                const char *basename)
 {
-  return entry_new (ENTRY_DIRECTORY, basename, filename);
+	char *str;
+	gsize len;
+	GError *err;
+	Entry *e;
+	gboolean show;
+
+	str = NULL;
+	len = 0;
+	err = NULL;
+
+	if (!g_file_get_contents (filename, &str, &len, &err))
+	{
+		menu_verbose ("Could not get contents of \"%s\": %s\n",
+				filename, err->message);
+		g_error_free (err);
+		return NULL;
+	}
+	
+	/* Check for NoDisplay */
+	char *nodisplay;
+	
+	show = TRUE;
+	
+	nodisplay = find_value (str, "NoDisplay");
+	
+	if (nodisplay != NULL)
+		if (strcasecmp (nodisplay, "True") == 0)
+			show = FALSE;
+
+	if (!show)
+		menu_verbose ("Not showing \"%s\" due to NoDisplay=%s\n",
+				filename, nodisplay);
+
+	g_free (nodisplay);
+
+	/* End checking for NoDisplay */
+
+	e = entry_new (ENTRY_DIRECTORY, basename, filename, show);
+	
+	g_free (str);
+	
+  return e;
 }
 
 static void
diff -urN aa/desktop-file-utils-0.7/src/menu-entries.h desktop-file-utils-0.7/src/menu-entries.h
--- aa/desktop-file-utils-0.7/src/menu-entries.h	2004-07-28 15:19:30.491876240 +0200
+++ desktop-file-utils-0.7/src/menu-entries.h	2004-07-28 20:09:57.515565944 +0200
@@ -131,6 +131,7 @@
 const char* entry_get_absolute_path (Entry      *entry);
 const char* entry_get_relative_path (Entry      *entry);
 const char* entry_get_name          (Entry      *entry);
+gboolean    entry_get_show          (Entry      *entry);
 gboolean entry_has_category 	    (Entry      *entry,
 		                     EntryCache *cache,
 				     const char *category);
diff -urN aa/desktop-file-utils-0.7/src/menu-process.c desktop-file-utils-0.7/src/menu-process.c
--- aa/desktop-file-utils-0.7/src/menu-process.c	2004-07-28 15:19:30.501874720 +0200
+++ desktop-file-utils-0.7/src/menu-process.c	2004-07-28 21:42:52.369059392 +0200
@@ -1062,6 +1062,7 @@
                                              GHashTable *allocated,
                                              const DesktopEntryTree *tree);
 static void remove_empty_submenus           (TreeNode * node);
+static void remove_no_display_submenus      (TreeNode * node);
 static void  process_only_unallocated (TreeNode   *node,
                                        GHashTable *allocated);
 
@@ -1238,6 +1239,7 @@
     tree->root = new_node;
     process_only_unallocated (tree->root, allocated);
     remove_empty_submenus (tree->root);
+		remove_no_display_submenus(tree->root);
 
     /* Update the modification time for the tree, so the
      * panel knows to reload the VFS directory.
@@ -2254,6 +2256,30 @@
   }
 }
 
+static void remove_no_display_submenus (TreeNode * node)
+{
+	GSList *subdir;
+
+	subdir = node->subdirs;
+	while (subdir != NULL)
+	{
+		TreeNode *subdir_node = subdir->data;
+		GSList *next = subdir->next;
+
+		if (subdir_node->dir_entry &&
+				entry_get_show (subdir_node->dir_entry) == FALSE)
+		{
+			node->subdirs = g_slist_remove_link (node->subdirs, subdir);
+			tree_node_free (subdir_node);
+		}
+		else
+			remove_no_display_submenus (subdir_node);
+
+		subdir = next;
+	}
+}
+		
+
 static void
 build_tree (DesktopEntryTree *tree)
 {
@@ -2271,8 +2297,10 @@
   if (tree->root)
     process_only_unallocated (tree->root, allocated);
 
-  if (tree->root)
+  if (tree->root){
     remove_empty_submenus (tree->root);
+		remove_no_display_submenus (tree->root);
+	}
 
   g_hash_table_destroy (allocated);