diff --git a/app/assets/javascripts/errbit.js b/app/assets/javascripts/errbit.js
index bedcbb6..6dd92fb 100644
--- a/app/assets/javascripts/errbit.js
+++ b/app/assets/javascripts/errbit.js
@@ -71,6 +71,9 @@ $(function() {
     tab.closest('.tab-bar').find('a.active').removeClass('active');
     tab.addClass('active');
 
+    // If clicking into 'backtrace' tab, hide external backtrace
+    if (tab.attr('rel') == "backtrace") { hide_external_backtrace(); }
+
     $('.panel').hide();
     panel.show();
   }
@@ -94,11 +97,17 @@ $(function() {
     });
   }
 
-  init();
-
-  // Show external backtrace lines when clicking separator
-  $('td.backtrace_separator span').live('click', function(){
-    $('tr.hidden_external_backtrace').removeClass('hidden_external_backtrace');
+  function hide_external_backtrace() {
+    $('tr.toggle_external_backtrace').hide();
+    $('td.backtrace_separator').show();
+  }
+  function show_external_backtrace() {
+    $('tr.toggle_external_backtrace').show();
     $('td.backtrace_separator').hide();
-  });
+  }
+  // Show external backtrace lines when clicking separator
+  $('td.backtrace_separator span').live('click', show_external_backtrace);
+  // Hide external backtrace on page load
+  hide_external_backtrace();
+  init();
 });
diff --git a/app/assets/stylesheets/errbit.css b/app/assets/stylesheets/errbit.css
index 1fe7176..75a6079 100644
--- a/app/assets/stylesheets/errbit.css
+++ b/app/assets/stylesheets/errbit.css
@@ -741,27 +741,28 @@ table.backtrace td.line {
   vertical-align: top;
   white-space: nowrap;
 }
-
 table.backtrace td.line .file {
-  color: #ededed;
-  font-weight:bold;
-}
-table.backtrace td.line .file a {
-  color: #21A4FF;
+  font-weight: bold;
 }
-
 table.backtrace td.line .method {
   color: #aaa;
-  font-weight:bold;
+  font-weight: bold;
 }
 
 table.backtrace td.line.in-app {
   color: #2adb2e;
   background-color: #2f2f2f;
 }
-table.backtrace td.line.in-app .file   { color: #2AEB2E; }
+table.backtrace td.line.in-app .path,
+table.backtrace td.line.in-app .number { color: #2ACB2E; }
+table.backtrace td.line.in-app .file   { color: #3AFB3E; }
 table.backtrace td.line.in-app .method { color: #2ACB2E; }
 
+table.backtrace td.line.in-app a .path,
+table.backtrace td.line.in-app a .number,
+table.backtrace td.line.in-app a:hover { color: #21B4FF; }
+table.backtrace td.line.in-app a .file { color: #31C4FF; }
+
 /* External backtrace classes and separators */
 table.backtrace tr.hidden_external_backtrace {
   display: none;
diff --git a/app/helpers/notices_helper.rb b/app/helpers/notices_helper.rb
index 964fb4e..37e0968 100644
--- a/app/helpers/notices_helper.rb
+++ b/app/helpers/notices_helper.rb
@@ -1,11 +1,16 @@
 # encoding: utf-8
 module NoticesHelper
-  def notice_atom_summary notice
+  def in_app_backtrace_line?(line)
+    !!(line['file'] =~ %r{^\[PROJECT_ROOT\]/(?!(vendor))})
+  end
+
+  def notice_atom_summary(notice)
     render :partial => "notices/atom_entry.html.haml", :locals => {:notice => notice}
   end
 
-  def link_to_source_file(app, line, text)
-    if Notice.in_app_backtrace_line?(line)
+  def link_to_source_file(app, line, &block)
+    text = capture_haml(&block)
+    if in_app_backtrace_line?(line)
       return link_to_github(app, line, text) if app.github_url?
       if app.issue_tracker && app.issue_tracker.respond_to?(:url_to_file)
         # Return link to file on tracker if issue tracker supports this
@@ -36,7 +41,7 @@ module NoticesHelper
   def grouped_lines(lines)
     line_groups = []
     lines.each do |line|
-      in_app = Notice.in_app_backtrace_line?(line)
+      in_app = in_app_backtrace_line?(line)
       if line_groups.last && line_groups.last[0] == in_app
         line_groups.last[1] << line
       else
@@ -48,12 +53,16 @@ module NoticesHelper
 
   def path_for_backtrace_line(line)
     path = File.dirname(line['file'])
-    path == "." ? "" : path + '/'
+    return '' if path == '.'
+    # Remove [PROJECT_ROOT]
+    path.gsub!('[PROJECT_ROOT]/', '')
+    # Make gem name bold if starts with [GEM_ROOT]/gems
+    path.gsub!(/\[GEM_ROOT\]\/gems\/([^\/]+)/, "<strong>\\1</strong>")
+    (path << '/').html_safe
   end
 
   def file_for_backtrace_line(line)
     file = File.basename(line['file'])
-    line['number'].present? ? "#{file}:#{line['number']}" : file
   end
 end
 
diff --git a/app/models/notice.rb b/app/models/notice.rb
index 85cafb8..014fbdf 100644
--- a/app/models/notice.rb
+++ b/app/models/notice.rb
@@ -62,10 +62,6 @@ class Notice
     where
   end
 
-  def self.in_app_backtrace_line?(line)
-    !!(line['file'] =~ %r{^\[PROJECT_ROOT\]/(?!(vendor))})
-  end
-
   def request
     read_attribute(:request) || {}
   end
diff --git a/app/views/notices/_backtrace.html.haml b/app/views/notices/_backtrace.html.haml
index 26afc63..9ccddd8 100644
--- a/app/views/notices/_backtrace.html.haml
+++ b/app/views/notices/_backtrace.html.haml
@@ -2,11 +2,11 @@
   %table.backtrace
     -# Group lines into internal / external so we can toggle the external backtrace
     -# Includes a margin of x lines that are not toggled.
-    - em = 3 # (external backtrace margin)
+    - em = 4 # (external backtrace margin)
     - grouped_lines(lines).each do |in_app, line_group|
       - if !in_app && line_group.size > (em * 3)
         = render :partial => 'notices/backtrace_line', :collection => line_group[0, em], :as => :line
-        = render :partial => 'notices/backtrace_line', :collection => line_group[em, line_group.size - (em * 2)], :as => :line, :locals => {:row_class => 'hidden_external_backtrace'}
+        = render :partial => 'notices/backtrace_line', :collection => line_group[em, line_group.size - (em * 2)], :as => :line, :locals => {:row_class => 'toggle_external_backtrace'}
         %tr
           %td.line.backtrace_separator
             %span ...
diff --git a/app/views/notices/_backtrace_line.html.haml b/app/views/notices/_backtrace_line.html.haml
index ec48cf8..56db410 100644
--- a/app/views/notices/_backtrace_line.html.haml
+++ b/app/views/notices/_backtrace_line.html.haml
@@ -1,6 +1,9 @@
 %tr{:class => defined?(row_class) ? row_class : nil}
-  %td.line{:class => (Notice.in_app_backtrace_line?(line) ? 'in-app' : nil)}
-    %span.path>= path_for_backtrace_line(line)
-    %span.file= link_to_source_file(@app, line, file_for_backtrace_line(line)).html_safe
+  %td.line{:class => (in_app_backtrace_line?(line) ? 'in-app' : nil)}
+    = link_to_source_file(@app, line) do
+      %span.path>= path_for_backtrace_line(line)
+      %span.file>=  file_for_backtrace_line(line)
+      - if line['number'].present?
+        %span.number>= ":#{line['number']}"
     &rarr;
     %span.method= line['method']
diff --git a/spec/models/notice_spec.rb b/spec/models/notice_spec.rb
index dcf7223..eafb35c 100644
--- a/spec/models/notice_spec.rb
+++ b/spec/models/notice_spec.rb
@@ -24,36 +24,6 @@ describe Notice do
   end
 
 
-  context '.in_app_backtrace_line?' do
-    let(:backtrace) do [{
-        'number'  => rand(999),
-        'file'    => '[GEM_ROOT]/gems/actionpack-3.0.4/lib/action_controller/metal/rescue.rb',
-        'method'  => ActiveSupport.methods.shuffle.first
-      }, {
-        'number'  => rand(999),
-        'file'    => '[PROJECT_ROOT]/vendor/plugins/seamless_database_pool/lib/seamless_database_pool/controller_filter.rb',
-        'method'  => ActiveSupport.methods.shuffle.first
-      }, {
-        'number'  => rand(999),
-        'file'    => '[PROJECT_ROOT]/lib/set_headers.rb',
-        'method'  => ActiveSupport.methods.shuffle.first
-      }]
-    end
-
-    it "should be false for line not starting with PROJECT_ROOT" do
-      Notice.in_app_backtrace_line?(backtrace[0]).should == false
-    end
-
-    it "should be false for file in vendor dir" do
-      Notice.in_app_backtrace_line?(backtrace[1]).should == false
-    end
-
-    it "should be true for application file" do
-      Notice.in_app_backtrace_line?(backtrace[2]).should == true
-    end
-  end
-
-
   describe "key sanitization" do
     before do
       @hash = { "some.key" => { "$nested.key" => {"$Path" => "/", "some$key" => "key"}}}
--
libgit2 0.21.2