It turns out I had the sense of the GetLocalBounds bool wrong everywhere, so ...

chrome/browser/ui/views/bookmark_editor_view.cc

 // Copyright (c) 2011 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 #include "chrome/browser/ui/views/bookmark_editor_view.h"
 
 #include "base/basictypes.h"
 #include "base/logging.h"
 #include "base/string_util.h"
 #include "base/utf_string_conversions.h"
@@ skipping 121 matching lines @@
 
 void BookmarkEditorView::Layout() {
   // Let the grid layout manager lay out most of the dialog...
   GetLayoutManager()->Layout(this);
 
   if (!show_tree_)
     return;
 
   // Manually lay out the New Folder button in the same row as the OK/Cancel
   // buttons...
-  gfx::Rect parent_bounds = GetParent()->GetLocalBounds();
+  gfx::Rect parent_bounds = GetParent()->GetContentsBounds();
   gfx::Size prefsize = new_group_button_->GetPreferredSize();
   int button_y =
       parent_bounds.bottom() - prefsize.height() - views::kButtonVEdgeMargin;
   new_group_button_->SetBounds(kPanelHorizMargin, button_y, prefsize.width(),
                               prefsize.height());
 }
 
 gfx::Size BookmarkEditorView::GetPreferredSize() {
   if (!show_tree_)
     return views::View::GetPreferredSize();
@@ skipping 426 matching lines @@
           break;
         }
       }
       DCHECK(child_bb_node);
       bb_model_->SetTitle(child_bb_node, child_b_node->GetTitle());
     }
     ApplyNameChangesAndCreateNewGroups(child_bb_node, child_b_node,
                                        parent_b_node, parent_bb_node);
   }
 }