Index: app/models/issue.rb
===================================================================
--- app/models/issue.rb	(revision 4802)
+++ app/models/issue.rb	(working copy)
@@ -30,7 +30,7 @@
   has_many :journals, :as => :journalized, :dependent => :destroy
   has_many :time_entries, :dependent => :delete_all
   has_and_belongs_to_many :changesets, :order => "#{Changeset.table_name}.committed_on ASC, #{Changeset.table_name}.id ASC"
-  
+
   has_many :relations_from, :class_name => 'IssueRelation', :foreign_key => 'issue_from_id', :dependent => :delete_all
   has_many :relations_to, :class_name => 'IssueRelation', :foreign_key => 'issue_to_id', :dependent => :delete_all
   
@@ -42,7 +42,7 @@
                      :include => [:project, :journals],
                      # sort by id so that limited eager loading doesn't break with postgresql
                      :order_column => "#{table_name}.id"
-  acts_as_event :title => Proc.new {|o| "#{o.tracker.name} ##{o.id} (#{o.status}): #{o.subject}"},
+  acts_as_event :title => Proc.new {|o| "#{o.tracker.name} ##{o.id} (#{o.initial_status()}): #{o.subject}"},
                 :url => Proc.new {|o| {:controller => 'issues', :action => 'show', :id => o.id}},
                 :type => Proc.new {|o| 'issue' + (o.closed? ? ' closed' : '') }
   
@@ -90,7 +90,16 @@
   before_save :close_duplicates, :update_done_ratio_from_issue_status
   after_save :reschedule_following_issues, :update_nested_set_attributes, :update_parent_attributes, :create_journal
   after_destroy :update_parent_attributes
-  
+
+  # Retrieves issue's original status from journal if modified since issue creation
+  def initial_status()
+
+    status_modifications = journals.find_all { |journal| journal.new_status }
+    status_modifications.sort! { |journal_a, journal_b| journal_a.created_on <=> journal_b.created_on }
+
+    status_modifications.empty? ? self.status : status_modifications.first.prev_status 
+  end
+
   # Returns true if usr or current user is allowed to view the issue
   def visible?(usr=nil)
     (usr || User.current).allowed_to?(:view_issues, self.project)
Index: app/models/journal.rb
===================================================================
--- app/models/journal.rb	(revision 4802)
+++ app/models/journal.rb	(working copy)
@@ -48,7 +48,12 @@
     c = details.detect {|detail| detail.prop_key == 'status_id'}
     (c && c.value) ? IssueStatus.find_by_id(c.value.to_i) : nil
   end
-  
+
+  def prev_status
+    c = details.detect {|detail| detail.prop_key == 'status_id'}
+    (c && c.old_value) ? IssueStatus.find_by_id(c.old_value.to_i) : nil
+  end
+
   def new_value_for(prop)
     c = details.detect {|detail| detail.prop_key == prop}
     c ? c.value : nil
Index: test/unit/activity_test.rb
===================================================================
--- test/unit/activity_test.rb	(revision 4802)
+++ test/unit/activity_test.rb	(working copy)
@@ -24,7 +24,28 @@
   def setup
     @project = Project.find(1)
   end
-  
+
+  def test_activity_contains_issue_status_update_events
+    events = find_events(User.anonymous, :project => @project)
+    assert_not_nil events
+
+    events.sort! { |x,y| x.event_datetime <=> y.event_datetime }
+
+    issue_creation_events = events.find_all { |event| event == Issue.find(8) }
+
+    assert_equal 1, issue_creation_events.size
+    assert_equal IssueStatus.find_by_name('New'), issue_creation_events.first.initial_status
+
+    issue_status_update_events = events.find_all { |event| event.is_a?(Journal) && event.issue == Issue.find(8) }
+
+    assert_equal 2, issue_status_update_events.size
+    assert_equal IssueStatus.find_by_name('New'), issue_status_update_events.first.prev_status
+    assert_equal IssueStatus.find_by_name('Resolved'), issue_status_update_events.first.new_status
+
+    assert_equal IssueStatus.find_by_name('Resolved'), issue_status_update_events.last.prev_status
+    assert_equal IssueStatus.find_by_name('Closed'), issue_status_update_events.last.new_status
+  end
+
   def test_activity_without_subprojects
     events = find_events(User.anonymous, :project => @project)
     assert_not_nil events
Index: test/fixtures/journal_details.yml
===================================================================
--- test/fixtures/journal_details.yml	(revision 4802)
+++ test/fixtures/journal_details.yml	(working copy)
@@ -20,3 +20,17 @@
   value: "6"
   prop_key: fixed_version_id
   journal_id: 4
+journal_details_004:
+  old_value: "1"
+  property: attr
+  id: 4
+  value: "3"
+  prop_key: status_id
+  journal_id: 5
+journal_details_005:
+  old_value: "3"
+  property: attr
+  id: 5
+  value: "5"
+  prop_key: status_id
+  journal_id: 6
Index: test/fixtures/issues.yml
===================================================================
--- test/fixtures/issues.yml	(revision 4802)
+++ test/fixtures/issues.yml	(working copy)
@@ -132,7 +132,7 @@
   lft: 1
   rgt: 2
 issues_008: 
-  created_on: <%= 10.days.ago.to_date.to_s(:db) %>
+  created_on: <%= 12.days.ago.to_date.to_s(:db) %>
   project_id: 1
   updated_on: <%= 10.days.ago.to_date.to_s(:db) %>
   priority_id: 5
Index: test/fixtures/journals.yml
===================================================================
--- test/fixtures/journals.yml	(revision 4802)
+++ test/fixtures/journals.yml	(working copy)
@@ -27,3 +27,17 @@
   journalized_type: Issue
   user_id: 1
   journalized_id: 6
+journals_005:
+  created_on: <%= 11.days.ago.to_date.to_s(:db) %>
+  notes: "Resolving issue 8."
+  id: 5
+  journalized_type: Issue
+  user_id: 1
+  journalized_id: 8
+journals_006:
+  created_on: <%= 10.days.ago.to_date.to_s(:db) %>
+  notes: "Closing issue 8."
+  id: 6
+  journalized_type: Issue
+  user_id: 1
+  journalized_id: 8