diff --git a/include/class.dept.php b/include/class.dept.php
index d99985b4437bc145cc34d729eee238a83d555d52..e337884625d67b7cc458320dc436d2190c1ff757 100644
--- a/include/class.dept.php
+++ b/include/class.dept.php
@@ -395,13 +395,6 @@ class Dept {
         if($id && $id!=$vars['id'])
             $errors['err']='Missing or invalid Dept ID (internal error).';
 
-        if(!isset($vars['id'])
-                && (!$vars['email_id'] || !is_numeric($vars['email_id'])))
-            $errors['email_id']='Email selection required';
-
-        if(isset($vars['tpl_id']) && !is_numeric($vars['tpl_id']))
-            $errors['tpl_id']='Template selection required';
-
         if(!$vars['name']) {
             $errors['name']='Name required';
         } elseif(strlen($vars['name'])<4) {
diff --git a/include/staff/department.inc.php b/include/staff/department.inc.php
index 99a571feccc69fcdcd529b5c628a76d77b2dadaa..bcfec6c44915c2534a094a2386cd761ed88551dc 100644
--- a/include/staff/department.inc.php
+++ b/include/staff/department.inc.php
@@ -62,49 +62,7 @@ $info=Format::htmlchars(($errors && $_POST)?$_POST:$info);
             </td>
         </tr>
         <tr>
-            <td width="180" class="required">
-                Email:
-            </td>
-            <td>
-                <select name="email_id">
-                    <option value="0">&mdash; Select Department Email &mdash;</option>
-                    <?php
-                    $sql='SELECT email_id,email,name FROM '.EMAIL_TABLE.' email ORDER by name';
-                    if(($res=db_query($sql)) && db_num_rows($res)){
-                        while(list($id,$email,$name)=db_fetch_row($res)){
-                            $selected=($info['email_id'] && $id==$info['email_id'])?'selected="selected"':'';
-                            if($name)
-                                $email=Format::htmlchars("$name <$email>");
-                            echo sprintf('<option value="%d" %s>%s</option>',$id,$selected,$email);
-                        }
-                    }
-                    ?>
-                </select>
-                &nbsp;<span class="error">*&nbsp;<?php echo $errors['email_id']; ?></span>
-            </td>
-        </tr>
-        <tr>
-            <td width="180" class="required">
-                Template:
-            </td>
-            <td>
-                <select name="tpl_id">
-                    <option value="0">&mdash; System Default &mdash;</option>
-                    <?php
-                    $sql='SELECT tpl_id,name FROM '.EMAIL_TEMPLATE_GRP_TABLE.' tpl WHERE isactive=1 ORDER by name';
-                    if(($res=db_query($sql)) && db_num_rows($res)){
-                        while(list($id,$name)=db_fetch_row($res)){
-                            $selected=($info['tpl_id'] && $id==$info['tpl_id'])?'selected="selected"':'';
-                            echo sprintf('<option value="%d" %s>%s</option>',$id,$selected,$name);
-                        }
-                    }
-                    ?>
-                </select>
-                &nbsp;<span class="error">*&nbsp;<?php echo $errors['tpl_id']; ?></span>
-            </td>
-        </tr>
-        <tr>
-            <td width="180" class="required">
+            <td width="180">
                 SLA:
             </td>
             <td>
@@ -123,7 +81,7 @@ $info=Format::htmlchars(($errors && $_POST)?$_POST:$info);
             </td>
         </tr>
         <tr>
-            <td width="180" class="required">
+            <td width="180">
                 Manager:
             </td>
             <td>
@@ -166,7 +124,54 @@ $info=Format::htmlchars(($errors && $_POST)?$_POST:$info);
         </tr>
         <tr>
             <th colspan="2">
-                <em><strong>Auto Response Settings</strong>: Override global auto-response settings for tickets routed to the Dept.</em>
+                <em><strong>Email Settings</strong>: Outgoing email settings for the department.</em>
+            </th>
+        </tr>
+        <tr>
+            <td width="180">
+                Outgoing Email:
+            </td>
+            <td>
+                <select name="email_id">
+                    <option value="0">&mdash; System Default &mdash;</option>
+                    <?php
+                    $sql='SELECT email_id,email,name FROM '.EMAIL_TABLE.' email ORDER by name';
+                    if(($res=db_query($sql)) && db_num_rows($res)){
+                        while(list($id,$email,$name)=db_fetch_row($res)){
+                            $selected=($info['email_id'] && $id==$info['email_id'])?'selected="selected"':'';
+                            if($name)
+                                $email=Format::htmlchars("$name <$email>");
+                            echo sprintf('<option value="%d" %s>%s</option>',$id,$selected,$email);
+                        }
+                    }
+                    ?>
+                </select>
+                &nbsp;<span class="error">*&nbsp;<?php echo $errors['email_id']; ?></span>
+            </td>
+        </tr>
+        <tr>
+            <td width="180">
+                Template Set:
+            </td>
+            <td>
+                <select name="tpl_id">
+                    <option value="0">&mdash; System Default &mdash;</option>
+                    <?php
+                    $sql='SELECT tpl_id,name FROM '.EMAIL_TEMPLATE_GRP_TABLE.' tpl WHERE isactive=1 ORDER by name';
+                    if(($res=db_query($sql)) && db_num_rows($res)){
+                        while(list($id,$name)=db_fetch_row($res)){
+                            $selected=($info['tpl_id'] && $id==$info['tpl_id'])?'selected="selected"':'';
+                            echo sprintf('<option value="%d" %s>%s</option>',$id,$selected,$name);
+                        }
+                    }
+                    ?>
+                </select>
+                &nbsp;<span class="error">*&nbsp;<?php echo $errors['tpl_id']; ?></span>
+            </td>
+        </tr>
+        <tr>
+            <th colspan="2">
+                <em><strong>Autoresponder Settings</strong>: Override global auto-response settings for tickets routed to the department.</em>
             </th>
         </tr>
         <tr>
diff --git a/include/staff/departments.inc.php b/include/staff/departments.inc.php
index 23d6937e8c1f474997250370e4d0bd453f58771d..da9c74c5e3e3c3e3e38060e352eb4700b4812f34 100644
--- a/include/staff/departments.inc.php
+++ b/include/staff/departments.inc.php
@@ -54,7 +54,7 @@ else
     <caption><?php echo $showing; ?></caption>
     <thead>
         <tr>
-            <th width="7px">&nbsp;</th>        
+            <th width="7px">&nbsp;</th>
             <th width="180"><a <?php echo $name_sort; ?> href="departments.php?<?php echo $qstr; ?>&sort=name">Name</a></th>
             <th width="80"><a  <?php echo $type_sort; ?> href="departments.php?<?php echo $qstr; ?>&sort=type">Type</a></th>
             <th width="70"><a  <?php echo $users_sort; ?>href="departments.php?<?php echo $qstr; ?>&sort=users">Users</a></th>
@@ -68,17 +68,25 @@ else
         $ids=($errors && is_array($_POST['ids']))?$_POST['ids']:null;
         if($res && db_num_rows($res)):
             $defaultId=$cfg->getDefaultDeptId();
+            $defaultEmailId = $cfg->getDefaultEmail()->getId();
+            $defaultEmailAddress = (string) $cfg->getDefaultEmail();
             while ($row = db_fetch_array($res)) {
                 $sel=false;
                 if($ids && in_array($row['dept_id'],$ids))
                     $sel=true;
-                
-                $row['email']=$row['email_name']?($row['email_name'].' &lt;'.$row['email'].'&gt;'):$row['email'];
+
+                if ($row['email_id'])
+                    $row['email']=$row['email_name']?($row['email_name'].' <'.$row['email'].'>'):$row['email'];
+                elseif($defaultEmailId) {
+                    $row['email_id'] = $defaultEmailId;
+                    $row['email'] = $defaultEmailAddress;
+                }
+
                 $default=($defaultId==$row['dept_id'])?' <small>(Default)</small>':'';
                 ?>
             <tr id="<?php echo $row['dept_id']; ?>">
                 <td width=7px>
-                  <input type="checkbox" class="ckb" name="ids[]" value="<?php echo $row['dept_id']; ?>" 
+                  <input type="checkbox" class="ckb" name="ids[]" value="<?php echo $row['dept_id']; ?>"
                             <?php echo $sel?'checked="checked"':''; ?>  <?php echo $default?'disabled="disabled"':''; ?> >
                 </td>
                 <td><a href="departments.php?id=<?php echo $row['dept_id']; ?>"><?php echo $row['dept_name']; ?></a>&nbsp;<?php echo $default; ?></td>
@@ -91,7 +99,8 @@ else
                     <?php } ?>
                     </b>
                 </td>
-                <td><a href="emails.php?id=<?php echo $row['email_id']; ?>"><?php echo $row['email']; ?></a></td>
+                <td><a href="emails.php?id=<?php echo $row['email_id']; ?>"><?php
+                    echo Format::htmlchars($row['email']); ?></a>&nbsp;</td>
                 <td><a href="staff.php?id=<?php echo $row['manager_id']; ?>"><?php echo $row['manager']; ?>&nbsp;</a></td>
             </tr>
             <?php
diff --git a/setup/inc/class.installer.php b/setup/inc/class.installer.php
index cc18ba3e949ced04453f15205329a297b4315b84..249f40dfcb0a15d0990a36378641b9d68a22b664 100644
--- a/setup/inc/class.installer.php
+++ b/setup/inc/class.installer.php
@@ -248,9 +248,6 @@ class Installer extends SetupWizard {
 
         $sql='UPDATE '.PREFIX."email SET dept_id=$dept_id_1";
         db_query($sql, false);
-        $sql='UPDATE '.PREFIX."department SET email_id=$support_email_id"
-            .", autoresp_email_id=$support_email_id";
-        db_query($sql, false);
 
         global $cfg;
         $cfg = new OsticketConfig();