diff --git a/changelog.txt b/changelog.txt
index 2430d5f1..0bff9545 100644
--- a/changelog.txt
+++ b/changelog.txt
@@ -3,6 +3,8 @@ OPENSEADRAGON CHANGELOG
 
 1.2.1: (in progress)
 
+* Added preserveOverlays option (#561)
+* Fixed: DZI tilesource was broken (#563)
 * Exposed secondary pointer button (middle, right, etc.) events from MouseTracker and through viewer (#479)
 * MouseTracker - Improved IE 8 compatibility (#562)
 
diff --git a/src/dzitilesource.js b/src/dzitilesource.js
index eb283fab..99dd92d1 100644
--- a/src/dzitilesource.js
+++ b/src/dzitilesource.js
@@ -107,8 +107,10 @@ $.extend( $.DziTileSource.prototype, $.TileSource.prototype, /** @lends OpenSead
         var ns;
         if ( data.Image ) {
             ns = data.Image.xmlns;
-        } else if ( data.documentElement && "Image" == data.documentElement.localName ) {
-            ns = data.documentElement.namespaceURI;
+        } else if ( data.documentElement) {
+            if ("Image" == data.documentElement.localName || "Image" == data.documentElement.tagName) {
+                ns = data.documentElement.namespaceURI;
+            }
         }
 
         return ( "http://schemas.microsoft.com/deepzoom/2008" == ns ||
@@ -221,7 +223,7 @@ function configureFromXML( tileSource, xmlDoc ){
     }
 
     var root           = xmlDoc.documentElement,
-        rootName       = root.localName,
+        rootName       = root.localName || root.tagName,
         ns             = xmlDoc.documentElement.namespaceURI,
         configuration  = null,
         displayRects   = [],
@@ -234,7 +236,10 @@ function configureFromXML( tileSource, xmlDoc ){
     if ( rootName == "Image" ) {
 
         try {
-            sizeNode = root.getElementsByTagNameNS(ns, "Size" )[ 0 ];
+            sizeNode = root.getElementsByTagName("Size" )[ 0 ];
+            if (sizeNode === undefined) {
+                sizeNode = root.getElementsByTagNameNS(ns, "Size" )[ 0 ];
+            }
 
             configuration = {
                 Image: {
@@ -257,11 +262,17 @@ function configureFromXML( tileSource, xmlDoc ){
                 );
             }
 
-            dispRectNodes = root.getElementsByTagNameNS(ns, "DisplayRect" );
+            dispRectNodes = root.getElementsByTagName("DisplayRect" );
+            if (dispRectNodes === undefined) {
+                dispRectNodes = root.getElementsByTagNameNS(ns, "DisplayRect" )[ 0 ];
+            }
 
             for ( i = 0; i < dispRectNodes.length; i++ ) {
                 dispRectNode = dispRectNodes[ i ];
-                rectNode     = dispRectNode.getElementsByTagNameNS(ns, "Rect" )[ 0 ];
+                rectNode     = dispRectNode.getElementsByTagName("Rect" )[ 0 ];
+                if (rectNode === undefined) {
+                    rectNode = dispRectNode.getElementsByTagNameNS(ns, "Rect" )[ 0 ];
+                }
 
                 displayRects.push({
                     Rect: {
diff --git a/src/openseadragon.js b/src/openseadragon.js
index f8b744de..27d3262c 100644
--- a/src/openseadragon.js
+++ b/src/openseadragon.js
@@ -515,10 +515,18 @@
   *
   * @property {Boolean} [preserveViewport=false]
   *     If the viewer has been configured with a sequence of tile sources, then
-  *     normally navigating to through each image resets the viewport to 'home'
+  *     normally navigating through each image resets the viewport to 'home'
   *     position.  If preserveViewport is set to true, then the viewport position
   *     is preserved when navigating between images in the sequence.
   *
+  * @property {Boolean} [preserveOverlays=false]
+  *     If the viewer has been configured with a sequence of tile sources, then
+  *     normally navigating through each image resets the overlays.
+  *     If preserveOverlays is set to true, then the overlays
+  *     are preserved when navigating between images in the sequence.
+  *     Note: setting preserveOverlays overrides any overlays specified in the
+  *     "overlays" property.
+  *
   * @property {Boolean} [showReferenceStrip=false]
   *     If the viewer has been configured with a sequence of tile sources, then
   *     display a scrolling strip of image thumbnails for navigating through the images.
@@ -945,6 +953,7 @@ window.OpenSeadragon = window.OpenSeadragon || function( options ){
             showSequenceControl:     true,  //SEQUENCE
             sequenceControlAnchor:   null,  //SEQUENCE
             preserveViewport:        false, //SEQUENCE
+            preserveOverlays:        false, //SEQUENCE
             navPrevNextWrap:         false, //SEQUENCE
             showNavigationControl:   true,  //ZOOM/HOME/FULL/ROTATION
             navigationControlAnchor: null,  //ZOOM/HOME/FULL/ROTATION
diff --git a/src/viewer.js b/src/viewer.js
index 909e65b1..2d2604d9 100644
--- a/src/viewer.js
+++ b/src/viewer.js
@@ -541,9 +541,13 @@ $.extend( $.Viewer.prototype, $.EventSource.prototype, $.ControlDock.prototype,
             this.navigator.close();
         }
 
-        this.clearOverlays();
+        if( ! this.preserveOverlays)
+        {
+            this.clearOverlays();
+            this.overlaysContainer.innerHTML = "";
+        }
+
         this.drawersContainer.innerHTML = "";
-        this.overlaysContainer.innerHTML = "";
 
         if ( this.drawer ) {
             this.drawer.destroy();
@@ -1970,6 +1974,10 @@ function openTileSource( viewer, source ) {
         _this.viewport.resetContentSize( _this.source.dimensions );
     }
 
+    if( _this.preserveOverlays ){
+        _this.overlays = _this.currentOverlays;
+    }
+
     _this.source.overlays = _this.source.overlays || [];
 
     _this.drawer = new $.Drawer({