diff --git a/ethchain/block_chain.go b/ethchain/block_chain.go
index d65c38fe4..08886c9cd 100644
--- a/ethchain/block_chain.go
+++ b/ethchain/block_chain.go
@@ -46,6 +46,7 @@ func (bc *BlockChain) NewBlock(coinbase []byte, txs []*Transaction) *Block {
 		hash = bc.LastBlockHash
 		lastBlockTime = bc.CurrentBlock.Time
 	}
+
 	block := CreateBlock(
 		root,
 		hash,
diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index 23da77fae..668a44c3f 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -133,37 +133,6 @@ func (sm *StateManager) ApplyTransactions(block *Block, txs []*Transaction) {
 			}
 		}
 	}
-	// Process each transaction/contract
-	for _, tx := range txs {
-		// If there's no recipient, it's a contract
-		// Check if this is a contract creation traction and if so
-		// create a contract of this tx.
-		if tx.IsContract() {
-			contract := sm.MakeContract(tx)
-			if contract != nil {
-				sm.EvalScript(contract.Init(), contract, tx, block)
-			} else {
-				ethutil.Config.Log.Infoln("[STATE] Unable to create contract")
-			}
-		} else {
-			// Figure out if the address this transaction was sent to is a
-			// contract or an actual account. In case of a contract, we process that
-			// contract instead of moving funds between accounts.
-			var err error
-			if contract := sm.procState.GetContract(tx.Recipient); contract != nil {
-				err = sm.Ethereum.TxPool().ProcessTransaction(tx, block, true)
-				if err == nil {
-					sm.EvalScript(contract.Script(), contract, tx, block)
-				}
-			} else {
-				err = sm.Ethereum.TxPool().ProcessTransaction(tx, block, false)
-			}
-
-			if err != nil {
-				ethutil.Config.Log.Infoln("[STATE]", err)
-			}
-		}
-	}
 }
 
 // The prepare function, prepares the state manager for the next
@@ -359,7 +328,7 @@ func (sm *StateManager) EvalScript(script []byte, object *StateObject, tx *Trans
 		Diff:        block.Difficulty,
 		//Price:       tx.GasPrice,
 	})
-	closure.Call(vm, nil, nil)
+	closure.Call(vm, tx.Data, nil)
 
 	// Update the account (refunds)
 	sm.procState.UpdateStateObject(caller)
diff --git a/ethchain/vm.go b/ethchain/vm.go
index 33541cb3b..90b591f50 100644
--- a/ethchain/vm.go
+++ b/ethchain/vm.go
@@ -53,11 +53,12 @@ var isRequireError = false
 func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err error) {
 	// Recover from any require exception
 	defer func() {
-		if r := recover(); r != nil && isRequireError {
+		if r := recover(); r != nil /*&& isRequireError*/ {
 			fmt.Println(r)
 
 			ret = closure.Return(nil)
 			err = fmt.Errorf("%v", r)
+			fmt.Println("vm err", err)
 		}
 	}()
 
@@ -315,6 +316,7 @@ func (vm *Vm) RunClosure(closure *Closure, hook DebugHook) (ret []byte, err erro
 		case oCALLDATALOAD:
 			require(1)
 			offset := stack.Pop().Int64()
+			fmt.Println(closure.Args)
 			val := closure.Args[offset : offset+31]
 
 			stack.Push(ethutil.BigD(val))