Index: blender/source/gameengine/Ketsji/KX_IPO_SGController.cpp
===================================================================
--- blender/source/gameengine/Ketsji/KX_IPO_SGController.cpp	(revision 10753)
+++ blender/source/gameengine/Ketsji/KX_IPO_SGController.cpp	(working copy)
@@ -126,7 +126,7 @@
 				}
 
 			} else {
-				ob->SetLocalPosition(m_ipo_xform.GetPosition());
+				ob->SetLocalPosition(m_ipo_xform.GetPosition() + m_ipo_xform.GetDeltaPosition());
 			}
 		}
 		if (m_modify_orientation) {
@@ -139,11 +139,11 @@
 				}
 
 			} else {
-				ob->SetLocalOrientation(MT_Matrix3x3(m_ipo_xform.GetEulerAngles()));
+				ob->SetLocalOrientation(MT_Matrix3x3(m_ipo_xform.GetEulerAngles()) * MT_Matrix3x3(m_ipo_xform.GetDeltaEulerAngles()));
 			}
 		}
 		if (m_modify_scaling)
-			ob->SetLocalScale(m_ipo_xform.GetScaling());
+			ob->SetLocalScale(m_ipo_xform.GetScaling() + m_ipo_xform.GetDeltaScaling());
 
 		m_modified=false;
 	}