diff --git a/lms/djangoapps/django_comment_client/utils.py b/lms/djangoapps/django_comment_client/utils.py
index 6c0b9c2c2c..570d3f0b31 100644
--- a/lms/djangoapps/django_comment_client/utils.py
+++ b/lms/djangoapps/django_comment_client/utils.py
@@ -113,7 +113,7 @@ class JsonError(HttpResponse):
                                    indent=2,
                                    ensure_ascii=False)
         super(JsonError, self).__init__(content,
-                                        mimetype='application/json; charset=utf8', status=500)
+                                        mimetype='application/json; charset=utf8', status=400)
 
 class HtmlResponse(HttpResponse):
     def __init__(self, html=''):
diff --git a/lms/static/coffee/src/discussion/content.coffee b/lms/static/coffee/src/discussion/content.coffee
index cd217b5e52..7c5e9e6fe4 100644
--- a/lms/static/coffee/src/discussion/content.coffee
+++ b/lms/static/coffee/src/discussion/content.coffee
@@ -74,7 +74,8 @@ initializeFollowThread = (thread) ->
           body: body
           anonymous: anonymous
           autowatch: autowatch
-        success: Discussion.formErrorHandler($local(".discussion-errors"), (response, textStatus) ->
+        error: Discussion.formErrorHandler($local(".discussion-errors"))
+        success: (response, textStatus) ->
           $comment = $(response.html)
           $content.children(".comments").prepend($comment)
           Discussion.setWmdContent $content, $local, "reply-body", ""
@@ -86,7 +87,6 @@ initializeFollowThread = (thread) ->
           $local(".discussion-reply").show()
           $local(".discussion-edit").show()
           $discussionContent.attr("status", "normal")
-        )
 
     handleVote = (elem, value) ->
       contentType = if $content.hasClass("thread") then "thread" else "comment"
@@ -148,11 +148,11 @@ initializeFollowThread = (thread) ->
         type: "POST"
         dataType: 'json'
         data: {title: title, body: body, tags: tags},
-        success: Discussion.formErrorHandler($local(".discussion-update-errors"), (response, textStatus) ->
+        error: Discussion.formErrorHandler($local(".discussion-update-errors"))
+        success: (response, textStatus) ->
           $discussionContent.replaceWith(response.html)
           Discussion.initializeContent($content)
           Discussion.bindContentEvents($content)
-        )
 
     handleEditComment = (elem) ->
       $local(".discussion-content-wrapper").hide()
@@ -175,11 +175,11 @@ initializeFollowThread = (thread) ->
         type: "POST"
         dataType: "json"
         data: {body: body}
-        success: Discussion.formErrorHandler($local(".discussion-update-errors"), (response, textStatus) ->
+        error: Discussion.formErrorHandler($local(".discussion-update-errors"))
+        success: (response, textStatus) ->
           $discussionContent.replaceWith(response.html)
           Discussion.initializeContent($content)
           Discussion.bindContentEvents($content)
-        )
 
     handleEndorse = (elem, endorsed) ->
       url = Discussion.urlFor('endorse_comment', id)
diff --git a/lms/static/coffee/src/discussion/discussion.coffee b/lms/static/coffee/src/discussion/discussion.coffee
index 8cf2596e0e..9565a7193b 100644
--- a/lms/static/coffee/src/discussion/discussion.coffee
+++ b/lms/static/coffee/src/discussion/discussion.coffee
@@ -46,7 +46,8 @@ initializeFollowDiscussion = (discussion) ->
           title: title
           body: body
           tags: tags
-        success: Discussion.formErrorHandler($local(".new-post-form-error"), (response, textStatus) ->
+        error: Discussion.formErrorHandler($local(".new-post-form-errors"))
+        success: (response, textStatus) ->
           $thread = $(response.html)
           $discussion.children(".threads").prepend($thread)
           Discussion.setWmdContent $discussion, $local, "new-post-body", ""
@@ -55,7 +56,6 @@ initializeFollowDiscussion = (discussion) ->
           Discussion.bindContentEvents($thread)
           $(".new-post-form").hide()
           $local(".discussion-new-post").show()
-        )
 
     handleCancelNewPost = (elem) ->
       $local(".new-post-form").hide()
@@ -96,9 +96,11 @@ initializeFollowDiscussion = (discussion) ->
 
     initializeNewPost = (elem) ->
       #newPostForm = $local(".new-post-form")
-      #view = { discussion_id: id }
       #$newPostButton = $local(".discussion-new-post")
-      #$newPostButton.after Mustache.render Discussion.newPostTemplate, view
+      view = { discussion_id: id }
+      $discussionNonContent = $discussion.children(".discussion-non-content")
+
+      $discussionNonContent.append Mustache.render Discussion.newPostTemplate, view
       newPostBody = $discussion.find(".new-post-body")
       if newPostBody.length
         Discussion.makeWmdEditor $discussion, $local, "new-post-body"
diff --git a/lms/static/coffee/src/discussion/templates.coffee b/lms/static/coffee/src/discussion/templates.coffee
index 8d98e1f5f1..e2869c8931 100644
--- a/lms/static/coffee/src/discussion/templates.coffee
+++ b/lms/static/coffee/src/discussion/templates.coffee
@@ -7,18 +7,18 @@ Discussion = @Discussion
 @Discussion = $.extend @Discussion,
 
   newPostTemplate: """
-    <form class="new-post-form" _id="{{discussion_id}}">
-      <ul class="discussion-errors new-post-form-error"></ul>    
-      <input type="text" class="new-post-title title-input" placeholder="Title"/>
-      <div class="new-post-similar-posts-wrapper" style="display: none">
-        Similar Posts: 
-        <a class="hide-similar-posts" href="javascript:void(0)">Hide</a>
-        <div class="new-post-similar-posts"></div>
+    <form class="new-post-form collapsed" id="new-post-form" style="display: block; ">
+      <ul class="new-post-form-errors discussion-errors"></ul>
+      <input type="text" class="new-post-title title-input" placeholder="Title" />
+      <div class="new-post-body reply-body"></div>
+      <input class="new-post-tags" placeholder="Tags" />
+      <div class="post-options">
+        <input type="checkbox" class="discussion-post-anonymously" id="discussion-post-anonymously-${discussion_id}">
+        <label for="discussion-post-anonymously-${discussion_id}">post anonymously</label>
+        <input type="checkbox" class="discussion-auto-watch" id="discussion-autowatch-${discussion_id}" checked="">
+        <label for="discussion-auto-watch-${discussion_id}">follow this thread</label>
       </div>
-      <div class="new-post-body body-input"></div>
-      <input class="new-post-tags" placeholder="Tags"/>
-      <div class = "new-post-control">
-        <a class="discussion-cancel-post" href="javascript:void(0)">Cancel</a>
+      <div class="reply-post-control">        
         <a class="discussion-submit-post control-button" href="javascript:void(0)">Submit</a>
       </div>
     </form>
diff --git a/lms/static/coffee/src/discussion/utils.coffee b/lms/static/coffee/src/discussion/utils.coffee
index f73119c4a6..f5b456f630 100644
--- a/lms/static/coffee/src/discussion/utils.coffee
+++ b/lms/static/coffee/src/discussion/utils.coffee
@@ -67,9 +67,9 @@ wmdEditors = {}
     autocomplete:
       remoteDataType: 'json'
     interactive: true
+    height: '30px'
+    width: '100%'
     defaultText: "Tag your post: press enter after each tag"
-    height: "30px"
-    width: "100%"
     removeWithBackspace: true
 
   isSubscribed: (id, type) ->
@@ -88,14 +88,13 @@ wmdEditors = {}
   isDownvoted: (id) ->
     $$user_info? and (id in $$user_info.downvoted_ids)
 
-  formErrorHandler: (errorsField, success) ->
-    (response, textStatus, xhr) ->
+  formErrorHandler: (errorsField) ->
+    (xhr, textStatus, error) ->
+      response = JSON.parse(xhr.responseText)
       if response.errors? and response.errors.length > 0
         errorsField.empty()
         for error in response.errors
           errorsField.append($("<li>").addClass("new-post-form-error").html(error))
-      else
-        success(response, textStatus, xhr)
 
   postMathJaxProcessor: (text) ->
     RE_INLINEMATH = /^\$([^\$]*)\$/g
@@ -135,7 +134,7 @@ wmdEditors = {}
 
   setWmdContent: ($content, $local, cls_identifier, text) ->
     Discussion.getWmdInput($content, $local, cls_identifier).val(text)
-    wmdEditors["#{cls_identifier}-#{id}"].refreshPreview()
+    Discussion.getWmdEditor($content, $local, cls_identifier).refreshPreview()
 
   getContentInfo: (id, attr) ->
     if not window.$$annotated_content_info?
diff --git a/lms/static/sass/_discussion.scss b/lms/static/sass/_discussion.scss
index d867345580..84faede4d7 100644
--- a/lms/static/sass/_discussion.scss
+++ b/lms/static/sass/_discussion.scss
@@ -622,9 +622,21 @@ $tag-text-color: #5b614f;
     a:hover {
       color: #1C71DD;
       text-decoration: none;
-    };
+    }
+
+    .new-post-title {
+      height: 35px;
+      padding: 5px 12px;
+      border-width: 1px;
+    }
 
     &.collapsed {
+      .new-post-title {
+        height: 0;
+        padding: 0;
+        border-width: 0;
+      }
+
       .wmd-button-row {
         height: 0;
       }
@@ -647,6 +659,10 @@ $tag-text-color: #5b614f;
       .reply-post-control {
         height: 0;
       }
+
+      .tagsinput {
+        display: none;
+      }
     }
 
     .new-post-control {
diff --git a/lms/templates/discussion/_inline.html b/lms/templates/discussion/_inline.html
index 8fc266a160..0fb3fe3239 100644
--- a/lms/templates/discussion/_inline.html
+++ b/lms/templates/discussion/_inline.html
@@ -4,19 +4,6 @@
 <section class="discussion inline-discussion" _id="${discussion_id}">
 
   <div class="discussion-non-content discussion-local">
-    <form class="new-post-form collapsed" id="new-post-form" style="display: block; ">
-      <ul class="discussion-errors"></ul>
-      <div class="new-post-body reply-body"></div>
-      <div class="post-options">
-        <input type="checkbox" class="discussion-post-anonymously" id="discussion-post-anonymously-${discussion_id}">
-        <label for="discussion-post-anonymously-${discussion_id}">post anonymously</label>
-        <input type="checkbox" class="discussion-auto-watch" id="discussion-autowatch-${discussion_id}" checked="">
-        <label for="discussion-auto-watch-${discussion_id}">follow this thread</label>
-      </div>
-      <div class="reply-post-control">        
-        <a class="discussion-submit-post control-button" href="javascript:void(0)">Submit</a>
-      </div>
-    </form>
   </div>
 
   <div class="threads">