diff --git a/includes/mail.inc b/includes/mail.inc
index e6bf651..002754c 100644
--- a/includes/mail.inc
+++ b/includes/mail.inc
@@ -268,15 +268,21 @@ function project_issue_mail_notify($nid) {
 
   // Initialize the recipient list.  After compilation, the list will include
   // users that are:
-  //  - globally subscribed to all issues
-  //  - globally subscribed to "own" issues
   //  - subscribed to all issues of the project
   //  - subscribed to "own" issues of the project
+  //  - subscribed to all issues by default (global default)
+  //  - subscribed to "own" issues by default (global default)
+
   // Note that "own" changes meaning depending on if flag.module is enabled
   // and configured for following issues.
   $recipients = array();
 
-  $args = array();
+  // In both queries, the first placeholder is always the node ID of the
+  // project that the current issue belongs to, since we need to restrict to
+  // that project for the per-project settings, and LEFT JOIN on that project
+  // to catch all the users with a default notification setting (everyone who
+  // doesn't have a specific preference for that project).
+  $args = array($node->project_issue['pid']);
 
   // Build up filters for different issue notification levels.
   $filter_array = array();
@@ -290,24 +296,24 @@ function project_issue_mail_notify($nid) {
   }
   $filter = implode(" OR ", $filter_array);
 
-  // Pull users that want global notifications.
-  $global_notification_query = "SELECT pi.uid, u.name, u.mail
-    FROM {project_issue_notification_global} pi
+  // Pull users that want notifications at the project level.
+  $project_notification_query = "SELECT pi.uid, u.name, u.mail
+    FROM {project_issue_notification_project} pi
     INNER JOIN {users} u ON pi.uid = u.uid
-    WHERE u.status = 1 AND (" . $filter . ")";
-  $result = db_query($global_notification_query, $args);
+    WHERE u.status = 1 AND pi.nid = %d AND (" . $filter . ")";
+  $result = db_query($project_notification_query, $args);
   while ($account = db_fetch_object($result)) {
     $recipients[$account->uid] = $account;
   }
 
-  // Pull users that want notifications at the project level.
-  $project_notification_query = "SELECT pi.uid, u.name, u.mail
-    FROM {project_issue_notification_project} pi
+  // Pull users that want global notifications if they haven't defined a
+  // per-project setting for this project.
+  $default_notification_query = "SELECT pi.uid, u.name, u.mail
+    FROM {project_issue_notification_global} pi
+    LEFT JOIN {project_issue_notification_project} pinp ON pi.uid = pinp.uid AND pinp.nid = %d
     INNER JOIN {users} u ON pi.uid = u.uid
-    WHERE u.status = 1 AND pi.nid = %d AND (" . $filter . ")";
-  $project_notification_args = $args;
-  array_unshift($project_notification_args, $node->project_issue['pid']);
-  $result = db_query($project_notification_query, $project_notification_args);
+    WHERE u.status = 1 AND pinp.level IS NULL AND (" . $filter . ")";
+  $result = db_query($default_notification_query, $args);
   while ($account = db_fetch_object($result)) {
     $recipients[$account->uid] = $account;
   }
diff --git a/includes/notification.inc b/includes/notification.inc
index 4dce153..224f7b5 100644
--- a/includes/notification.inc
+++ b/includes/notification.inc
@@ -43,19 +43,7 @@ function project_issue_notification_user_form(&$form_state, $account) {
     '#collapsible' => TRUE,
   );
 
-  $form['project_issue_notification']['level'] = array(
-    '#type' => 'radios',
-    '#title' => t('E-mail notification for all projects'),
-    '#options' => $options,
-    '#default_value' => $account->project_issue_notification['level'],
-    // TODO: this could probably use some description text.
-  );
-
-  // Per-project notification level (only enabled).
-  // We only allow to change (and remove) per-project notifications on this
-  // form. Users are able to subscribe to further projects by visiting the
-  // individual project pages. In terms of UX, that's preferred anyway, since
-  // a user normally wants to know and be sure what exactly she subscribes to.
+  // Per-project notification levels.
   $form['project_issue_notification']['projects'] = array(
     '#theme' => 'project_issue_notification_projects_table',
     '#header' => array(t('Project'), t('Notification level')),
@@ -80,6 +68,35 @@ function project_issue_notification_user_form(&$form_state, $account) {
     );
   }
 
+  $form['project_issue_notification']['projects']['new']['title'] = array(
+    '#type' => 'textfield',
+    '#size' => 30,
+    '#autocomplete_path' => 'project/autocomplete/project',
+  );
+  $form['project_issue_notification']['projects']['new']['level'] = array(
+    '#type' => 'select',
+    '#options' => $options,
+    '#default_value' => $account->project_issue_notification['level'],
+  );
+
+  $form['project_issue_notification']['projects']['default']['title'] = array(
+    '#value' => t('Default for all other projects'),
+  );
+  $form['project_issue_notification']['projects']['default']['level'] = array(
+    '#type' => 'select',
+    '#options' => $options,
+    '#default_value' => $account->project_issue_notification['level'],
+  );
+  $form['project_issue_notification']['projects']['default']['title'] = array(
+    '#value' => t('Default for all other projects'),
+  );
+  $form['project_issue_notification']['projects']['default']['level'] = array(
+    '#type' => 'select',
+    '#options' => $options,
+    '#default_value' => $account->project_issue_notification['level'],
+    '#parents' => array('project_issue_notification', 'projects', 'default'),
+  );
+
   $form['actions']['submit'] = array(
     '#type' => 'submit',
     '#value' => t('Save'),
@@ -89,15 +106,47 @@ function project_issue_notification_user_form(&$form_state, $account) {
 }
 
 /**
+ * Form validation handler for project_issue_notification_user_form().
+ *
+ * If the user is trying to add notification preferences for a new project, we
+ * validate the project title. If we can't find the project, we set a form
+ * error. If we find the project, we save the nid into $form_state so we can
+ * use that in the submit handler.
+ */
+function project_issue_notification_user_form_validate($form, &$form_state) {
+  if (!empty($form_state['values']['project_issue_notification']['projects']['new']['title'])) {
+    $nid = db_result(db_query("SELECT nid FROM {node} WHERE title = '%s' AND type = '%s'", $form_state['values']['project_issue_notification']['projects']['new']['title'], 'project_project'));
+    if (empty($nid)) {
+      form_set_error('project_issue_notification][projects][new][title', t('The name you entered (%title) is not a valid project.', array('%title' => $form_state['values']['project_issue_notification']['projects']['new']['title'])));
+    }
+    else {
+      $form_state['values']['project_issue_notification']['projects']['new']['nid'] = $nid;
+    }
+  }
+}
+
+/**
  * Form submission handler for project_issue_notification_user_form().
  */
 function project_issue_notification_user_form_submit($form, &$form_state) {
   // Update the global issue notification settings.
   $account = $form_state['values']['account'];
-  $account->project_issue_notification = $form_state['values']['project_issue_notification'];
+
+  // First, save the default setting for this user.
+  $account->project_issue_notification = $form_state['values']['project_issue_notification']['projects']['default'];
   project_issue_notification_user_settings_save($account);
 
-  // Insert the new per-project settings.
+  unset($form_state['values']['project_issue_notification']['projects']['default']);
+
+  // Now, see if they're trying to add notifications for a new project.
+  $new_project = $form_state['values']['project_issue_notification']['projects']['new'];
+  if (!empty($new_project['nid'])) {
+    project_issue_notification_project_setting_save($account->uid, $new_project['nid'], $new_project['level']);
+  }
+  // Either way, we're now done with this row.
+  unset($form_state['values']['project_issue_notification']['projects']['new']);
+
+  // Finally, save any changes to the per-project settings.
   if (!empty($form_state['values']['project_issue_notification']['projects'])) {
     foreach ($form_state['values']['project_issue_notification']['projects'] as $nid => $level) {
       project_issue_notification_project_setting_save($account->uid, $nid, $level);
diff --git a/project_issue.install b/project_issue.install
index f5eed67..36e9e6b 100644
--- a/project_issue.install
+++ b/project_issue.install
@@ -293,7 +293,7 @@ function project_issue_schema() {
         'default' => 0,
       ),
       'level' => array(
-        'description' => 'The global notification setting level. 0 = None, 1 = Flagged/Own, 2 = All.',
+        'description' => 'The global default notification setting level. 0 = None, 1 = Flagged/Own, 2 = All.',
         'type' => 'int',
         'size' => 'tiny',
         'unsigned' => TRUE,
@@ -729,7 +729,7 @@ function project_issue_update_6009() {
         'default' => 0,
       ),
       'level' => array(
-        'description' => 'The global notification setting level. 0 = None, 1 = Flagged/Own, 2 = All.',
+        'description' => 'The global default notification setting level. 0 = None, 1 = Flagged/Own, 2 = All.',
         'type' => 'int',
         'size' => 'tiny',
         'unsigned' => TRUE,
diff --git a/project_issue.module b/project_issue.module
index 8120b2d..6b6238e 100644
--- a/project_issue.module
+++ b/project_issue.module
@@ -1002,35 +1002,29 @@ function project_issue_notification_project_setting_load($uid, $nid) {
  *   - PROJECT_ISSUE_NOTIFICATION_NONE
  *   - PROJECT_ISSUE_NOTIFICATION_OWN
  *   - PROJECT_ISSUE_NOTIFICATION_ALL
- *   When passing PROJECT_ISSUE_NOTIFICATION_NONE the user's project
- *   notification settings are deleted.
  *
  * @see project_issue_notification_project_setting_load()
  */
 function project_issue_notification_project_setting_save($uid, $nid, $level) {
-  if ($level > PROJECT_ISSUE_NOTIFICATION_NONE) {
-    db_query("UPDATE {project_issue_notification_project} SET level = %d WHERE uid = %d AND nid = %d", array(
-      $level,
-      $uid,
-      $nid,
-    ));
-    if (!db_affected_rows()) {
-      db_query("INSERT INTO {project_issue_notification_project} (uid, nid, level) VALUES (%d, %d, %d)", array(
-        $uid,
-        $nid,
-        $level,
-      ));
-    }
-  }
-  else {
-    db_query("DELETE FROM {project_issue_notification_project} WHERE uid = %d AND nid = %d", array(
-      $uid,
-      $nid,
-    ));
+  db_query("UPDATE {project_issue_notification_project} SET level = %d WHERE uid = %d AND nid = %d", array($level, $uid, $nid));
+  if (!db_affected_rows()) {
+    db_query("INSERT INTO {project_issue_notification_project} (uid, nid, level) VALUES (%d, %d, %d)", array($uid, $nid, $level));
   }
 }
 
 /**
+ * Removes the project notification settings for a given user and project.
+ *
+ * @param $uid
+ *   The ID of a user account.
+ * @param $nid
+ *   The node ID of a project node.
+ */
+function project_issue_notification_project_setting_delete($uid, $nid) {
+  db_query("DELETE FROM {project_issue_notification_project} WHERE uid = %d AND nid = %d", array($uid, $nid));
+}
+
+/**
  * Implements hook_user().
  */
 function project_issue_user($op, $edit, $account) {