diff --git a/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/I2PTunnel.java b/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/I2PTunnel.java
index f09f03ca43..110d629848 100644
--- a/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/I2PTunnel.java
+++ b/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/I2PTunnel.java
@@ -390,10 +390,10 @@ public class I2PTunnel implements Logging, EventDispatcher {
             if (!privKeyFile.isAbsolute())
                 privKeyFile = new File(_context.getConfigDir(), args[2]);
             if (!privKeyFile.canRead()) {
-                l.log("private key file does not exist");
+                l.log(getPrefix() + "Private key file does not exist or is not readable: " + args[2]);
                 _log.error(getPrefix() + "Private key file does not exist or is not readable: " + args[2]);
                 notifyEvent("serverTaskId", Integer.valueOf(-1));
-                return;
+                throw new IllegalArgumentException(getPrefix() + "Cannot open private key file " + args[2]);
             }
             I2PTunnelServer serv = new I2PTunnelServer(serverHost, portNum, privKeyFile, args[2], l, (EventDispatcher) this, this);
             serv.setReadTimeout(readTimeout);
@@ -441,10 +441,10 @@ public class I2PTunnel implements Logging, EventDispatcher {
             if (!privKeyFile.isAbsolute())
                 privKeyFile = new File(_context.getConfigDir(), args[2]);
             if (!privKeyFile.canRead()) {
-                l.log("private key file does not exist");
+                l.log(getPrefix() + "Private key file does not exist or is not readable: " + args[2]);
                 _log.error(getPrefix() + "Private key file does not exist or is not readable: " + args[2]);
                 notifyEvent("serverTaskId", Integer.valueOf(-1));
-                return;
+                throw new IllegalArgumentException(getPrefix() + "Cannot open private key file " + args[2]);
             }
             I2PTunnelServer serv = new I2PTunnelIRCServer(serverHost, portNum, privKeyFile, args[2], l, (EventDispatcher) this, this);
             serv.setReadTimeout(readTimeout);
@@ -502,10 +502,10 @@ public class I2PTunnel implements Logging, EventDispatcher {
             if (!privKeyFile.isAbsolute())
                 privKeyFile = new File(_context.getConfigDir(), args[3]);
             if (!privKeyFile.canRead()) {
-                l.log("private key file does not exist");
+                l.log(getPrefix() + "Private key file does not exist or is not readable: " + args[3]);
                 _log.error(getPrefix() + "Private key file does not exist or is not readable: " + args[3]);
                 notifyEvent("serverTaskId", Integer.valueOf(-1));
-                return;
+                throw new IllegalArgumentException(getPrefix() + "Cannot open private key file " + args[3]);
             }
             I2PTunnelHTTPServer serv = new I2PTunnelHTTPServer(serverHost, portNum, privKeyFile, args[3], spoofedHost, l, (EventDispatcher) this, this);
             serv.setReadTimeout(readTimeout);
@@ -577,10 +577,10 @@ public class I2PTunnel implements Logging, EventDispatcher {
             if (!privKeyFile.isAbsolute())
                 privKeyFile = new File(_context.getConfigDir(), args[4]);
             if (!privKeyFile.canRead()) {
-                l.log("private key file does not exist");
+                l.log(getPrefix() + "Private key file does not exist or is not readable: " + args[4]);
                 _log.error(getPrefix() + "Private key file does not exist or is not readable: " + args[4]);
                 notifyEvent("serverTaskId", Integer.valueOf(-1));
-                return;
+                throw new IllegalArgumentException(getPrefix() + "Cannot open private key file " + args[4]);
             }
 
             I2PTunnelHTTPBidirServer serv = new I2PTunnelHTTPBidirServer(serverHost, portNum, port2Num, privKeyFile, args[3], spoofedHost, l, (EventDispatcher) this, this);
diff --git a/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/TunnelController.java b/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/TunnelController.java
index dc6ded46e6..f0470c5a30 100644
--- a/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/TunnelController.java
+++ b/apps/i2ptunnel/java/src/net/i2p/i2ptunnel/TunnelController.java
@@ -46,6 +46,7 @@ public class TunnelController implements Logging {
     public TunnelController(Properties config, String prefix) {
         this(config, prefix, true);
     }
+
     /**
      * 
      * @param createKey for servers, whether we want to create a brand new destination
@@ -58,17 +59,21 @@ public class TunnelController implements Logging {
         setConfig(config, prefix);
         _messages = new ArrayList(4);
         _running = false;
+        boolean keyOK = true;
         if (createKey && (getType().endsWith("server") || getPersistentClientKey()))
-            createPrivateKey();
-        _starting = getStartOnLoad();
+            keyOK = createPrivateKey();
+        _starting = keyOK && getStartOnLoad();
     }
     
-    private void createPrivateKey() {
+    /**
+     * @return success
+     */
+    private boolean createPrivateKey() {
         I2PClient client = I2PClientFactory.createClient();
         String filename = getPrivKeyFile();
         if ( (filename == null) || (filename.trim().length() <= 0) ) {
             log("No filename specified for the private key");
-            return;
+            return false;
         }
         
         File keyFile = new File(getPrivKeyFile());
@@ -76,7 +81,7 @@ public class TunnelController implements Logging {
             keyFile = new File(I2PAppContext.getGlobalContext().getConfigDir(), getPrivKeyFile());
         if (keyFile.exists()) {
             //log("Not overwriting existing private keys in " + keyFile.getAbsolutePath());
-            return;
+            return true;
         } else {
             File parent = keyFile.getParentFile();
             if ( (parent != null) && (!parent.exists()) )
@@ -94,13 +99,16 @@ public class TunnelController implements Logging {
             if (_log.shouldLog(Log.ERROR))
                 _log.error("Error creating new destination", ie);
             log("Error creating new destination: " + ie.getMessage());
+            return false;
         } catch (IOException ioe) {
             if (_log.shouldLog(Log.ERROR))
                 _log.error("Error creating writing the destination to " + keyFile.getAbsolutePath(), ioe);
             log("Error writing the keys to " + keyFile.getAbsolutePath());
+            return false;
         } finally {
             if (fos != null) try { fos.close(); } catch (IOException ioe) {}
         }
+        return true;
     }
     
     public void startTunnelBackground() {
@@ -126,6 +134,10 @@ public class TunnelController implements Logging {
         }
         _starting = false;
     }
+
+    /**
+     *  @throws IllegalArgumentException via methods in I2PTunnel
+     */
     private void doStartTunnel() {
         if (_running) {
             if (_log.shouldLog(Log.INFO))
diff --git a/history.txt b/history.txt
index 7b7113ccff..254a215c0c 100644
--- a/history.txt
+++ b/history.txt
@@ -1,3 +1,6 @@
+2010-07-08 zzz
+    * I2PTunnel: More error propagation fixes
+
 2010-07-07 duck
     * RouterConsole: Add Help & FAQ link, minor label improvements.
 
diff --git a/router/java/src/net/i2p/router/RouterVersion.java b/router/java/src/net/i2p/router/RouterVersion.java
index a6204817e3..f2522cd4ed 100644
--- a/router/java/src/net/i2p/router/RouterVersion.java
+++ b/router/java/src/net/i2p/router/RouterVersion.java
@@ -18,7 +18,7 @@ public class RouterVersion {
     /** deprecated */
     public final static String ID = "Monotone";
     public final static String VERSION = CoreVersion.VERSION;
-    public final static long BUILD = 8;
+    public final static long BUILD = 9;
 
     /** for example "-test" */
     public final static String EXTRA = "";