diff --git a/etc/reddwarf/reddwarf.conf.test b/etc/reddwarf/reddwarf.conf.test
index 07a530f168..2a31805a15 100644
--- a/etc/reddwarf/reddwarf.conf.test
+++ b/etc/reddwarf/reddwarf.conf.test
@@ -72,6 +72,8 @@ agent_heartbeat_time = 10
 agent_call_low_timeout = 5
 agent_call_high_timeout = 100
 
+server_delete_time_out=10
+
 # ============ notifer queue kombu connection options ========================
 
 notifier_queue_hostname = localhost
diff --git a/reddwarf/instance/models.py b/reddwarf/instance/models.py
index dae0c8857f..9189342bc4 100644
--- a/reddwarf/instance/models.py
+++ b/reddwarf/instance/models.py
@@ -81,14 +81,9 @@ def load_simple_instance_server_status(context, db_info):
             db_info.server_status = server.status
             db_info.addresses = server.addresses
         except nova_exceptions.NotFound, e:
-            db_info.server_status = "ERROR"
+            db_info.server_status = "SHUTDOWN"
             db_info.addresses = {}
-            #TODO(tim.simpson): This is another notifications hack. If the
-            # task is delelting, and the compute instance isn't found,
-            # then assume the delete operation is done and raise an
-            # exception.
-            if InstanceTasks.DELETING == db_info.task_status:
-                raise exception.NotFound(uuid=db_info.id)
+
 
 
 # If the compute server is in any of these states we can't perform any