Index: modedit.php
===================================================================
--- modedit.php	(revision 1709)
+++ modedit.php	(working copy)
@@ -128,6 +128,8 @@
 
             // set category if present
             $gradecat = false;
+            $gradehidden = false;
+            
             foreach ($items as $item) {
                 if ($gradecat === false) {
                     $gradecat = $item->categoryid;
@@ -138,11 +140,17 @@
                     $gradecat = false;
                     break;
                 }
+                if ($gradehidden === false) {
+                	$gradehidden = $item->hidden;
+                }
             }
             if ($gradecat !== false) {
                 // do not set if mixed categories present
                 $form->gradecat = $gradecat;
             }
+            if ($gradehidden !== false) {
+            	$form->gradehidden = $gradehidden;
+            }
         }
 
         $sectionname = get_section_name($course->format);
@@ -329,6 +337,10 @@
                 $grade_item->idnumber = $fromform->cmidnumber;
                 $grade_item->update();
             }
+            if (isset($fromform->gradehidden)) {
+            	$grade_item->hidden = $fromform->gradehidden;
+            	$grade_item->update();
+            }
         }
 
         $items = grade_item::fetch_all(array('itemtype'=>'mod', 'itemmodule'=>$fromform->modulename,
@@ -346,6 +358,7 @@
                     $grade_category->set_parent($parent->id);
                 }
                 $fromform->gradecat = $grade_category->id;
+                 
             }
             foreach ($items as $itemid=>$unused) {
                 $items[$itemid]->set_parent($fromform->gradecat);
Index: moodleform_mod.php
===================================================================
--- moodleform_mod.php	(revision 1709)
+++ moodleform_mod.php	(working copy)
@@ -66,6 +66,7 @@
 
             if ($this->_features->gradecat) {
                 $gradecat = false;
+                $gradehidden = false;
                 if (!empty($CFG->enableoutcomes) and $this->_features->outcomes) {
                     if ($outcomes = grade_outcome::fetch_all_available($COURSE->id)) {
                         $gradecat = true;
@@ -91,6 +92,8 @@
                             $gradecat = false;
                             break;
                         }
+                        $gradehidden = $item->hidden;
+                        
                     }
                 }
 
@@ -101,6 +104,11 @@
                         $mform->removeElement('gradecat');
                     }
                 }
+                if ($gradehidden === false){
+                	if ($mform->elementExists('gradehidden')){
+                		$mform->removeElement('gradehidden');
+                	}
+                }
             }
         }
 
@@ -275,6 +283,9 @@
             $categories = grade_get_categories_menu($COURSE->id, $outcomesused);
             $mform->addElement('select', 'gradecat', get_string('gradecategory', 'grades'), $categories);
         }
+       	if($this->_features->gradecat){
+        	$mform->addElement('select','gradehidden','Embargo Grades',array(0=>"No",1=>"Yes"));
+        }
 
         $this->standard_hidden_coursemodule_elements();
     }