diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index 1de46b3713..dba3ff202d 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -17,7 +17,7 @@ import (
 	"github.com/ethereum/go-ethereum/event"
 )
 
-var statelogger = ethlog.NewLogger("STATE")
+var statelogger = ethlog.NewLogger("BLOCK")
 
 type Peer interface {
 	Inbound() bool
@@ -134,10 +134,11 @@ func (sm *StateManager) ChainManager() *ChainManager {
 	return sm.bc
 }
 
-func (self *StateManager) ProcessTransactions(coinbase *ethstate.StateObject, state *ethstate.State, block, parent *Block, txs Transactions) (Receipts, Transactions, Transactions, error) {
+func (self *StateManager) ProcessTransactions(coinbase *ethstate.StateObject, state *ethstate.State, block, parent *Block, txs Transactions) (Receipts, Transactions, Transactions, Transactions, error) {
 	var (
 		receipts           Receipts
 		handled, unhandled Transactions
+		erroneous          Transactions
 		totalUsedGas       = big.NewInt(0)
 		err                error
 	)
@@ -161,7 +162,9 @@ done:
 				break done
 			default:
 				statelogger.Infoln(err)
+				erroneous = append(erroneous, tx)
 				err = nil
+				continue
 				//return nil, nil, nil, err
 			}
 		}
@@ -182,7 +185,7 @@ done:
 
 				err := fmt.Errorf("#%d receipt failed (r) %v ~ %x  <=>  (c) %v ~ %x (%x...)", i+1, original.CumulativeGasUsed, original.PostState[0:4], receipt.CumulativeGasUsed, receipt.PostState[0:4], receipt.Tx.Hash()[0:4])
 
-				return nil, nil, nil, err
+				return nil, nil, nil, nil, err
 			}
 		}
 
@@ -199,7 +202,7 @@ done:
 
 	parent.GasUsed = totalUsedGas
 
-	return receipts, handled, unhandled, err
+	return receipts, handled, unhandled, erroneous, err
 }
 
 func (sm *StateManager) Process(block *Block, dontReact bool) (err error) {
@@ -283,7 +286,7 @@ func (sm *StateManager) Process(block *Block, dontReact bool) (err error) {
 			state.Manifest().Reset()
 		}
 
-		sm.eth.TxPool().RemoveInvalid(state)
+		sm.eth.TxPool().RemoveSet(block.Transactions())
 	} else {
 		statelogger.Errorln("total diff failed")
 	}
@@ -296,7 +299,7 @@ func (sm *StateManager) ApplyDiff(state *ethstate.State, parent, block *Block) (
 	coinbase.SetGasPool(block.CalcGasLimit(parent))
 
 	// Process the transactions on to current block
-	receipts, _, _, err = sm.ProcessTransactions(coinbase, state, block, parent, block.Transactions())
+	receipts, _, _, _, err = sm.ProcessTransactions(coinbase, state, block, parent, block.Transactions())
 	if err != nil {
 		return nil, err
 	}
diff --git a/ethchain/transaction.go b/ethchain/transaction.go
index b0743097d7..abf2e37acd 100644
--- a/ethchain/transaction.go
+++ b/ethchain/transaction.go
@@ -40,7 +40,7 @@ func NewContractCreationTx(value, gas, gasPrice *big.Int, script []byte) *Transa
 }
 
 func NewTransactionMessage(to []byte, value, gas, gasPrice *big.Int, data []byte) *Transaction {
-	return &Transaction{Recipient: to, Value: value, GasPrice: gasPrice, Gas: gas, Data: data}
+	return &Transaction{Recipient: to, Value: value, GasPrice: gasPrice, Gas: gas, Data: data, contractCreation: IsContractAddr(to)}
 }
 
 func NewTransactionFromBytes(data []byte) *Transaction {
diff --git a/ethchain/transaction_pool.go b/ethchain/transaction_pool.go
index 063688aa8c..7f8a5de42f 100644
--- a/ethchain/transaction_pool.go
+++ b/ethchain/transaction_pool.go
@@ -35,6 +35,14 @@ type TxMsg struct {
 	Type TxMsgTy
 }
 
+func EachTx(pool *list.List, it func(*Transaction, *list.Element) bool) {
+	for e := pool.Front(); e != nil; e = e.Next() {
+		if it(e.Value.(*Transaction), e) {
+			break
+		}
+	}
+}
+
 func FindTx(pool *list.List, finder func(*Transaction, *list.Element) bool) *Transaction {
 	for e := pool.Front(); e != nil; e = e.Next() {
 		if tx, ok := e.Value.(*Transaction); ok {
@@ -191,6 +199,9 @@ func (pool *TxPool) CurrentTransactions() []*Transaction {
 }
 
 func (pool *TxPool) RemoveInvalid(state *ethstate.State) {
+	pool.mutex.Lock()
+	defer pool.mutex.Unlock()
+
 	for e := pool.pool.Front(); e != nil; e = e.Next() {
 		tx := e.Value.(*Transaction)
 		sender := state.GetAccount(tx.Sender())
@@ -201,6 +212,21 @@ func (pool *TxPool) RemoveInvalid(state *ethstate.State) {
 	}
 }
 
+func (self *TxPool) RemoveSet(txs Transactions) {
+	self.mutex.Lock()
+	defer self.mutex.Unlock()
+
+	for _, tx := range txs {
+		EachTx(self.pool, func(t *Transaction, element *list.Element) bool {
+			if t == tx {
+				self.pool.Remove(element)
+				return true // To stop the loop
+			}
+			return false
+		})
+	}
+}
+
 func (pool *TxPool) Flush() []*Transaction {
 	txList := pool.CurrentTransactions()