diff --git a/pylons_app/controllers/admin.py b/pylons_app/controllers/admin.py
--- a/pylons_app/controllers/admin.py
+++ b/pylons_app/controllers/admin.py
@@ -5,9 +5,6 @@ from pylons.controllers.util import abor
 
 from pylons_app.lib.base import BaseController, render
 import os
-from mercurial import ui, hg
-from mercurial.error import RepoError
-from ConfigParser import ConfigParser
 from pylons_app.lib import auth
 from pylons_app.model.forms import LoginForm
 import formencode
@@ -15,6 +12,7 @@ import formencode.htmlfill as htmlfill
 from pylons_app.model import meta
 from pylons_app.model.db import Users, UserLogs
 from webhelpers.paginate import Page
+from pylons_app.lib.utils import check_repo
 log = logging.getLogger(__name__)
 
 class AdminController(BaseController):
@@ -90,37 +88,12 @@ class AdminController(BaseController):
 
         return render('add.html')
 
-    def _check_repo(self, repo_name):
-        p = os.path.dirname(os.path.dirname(os.path.dirname(__file__)))
-        config_path = os.path.join(p, 'hgwebdir.config')
-
-        cp = ConfigParser()
-
-        cp.read(config_path)
-        repos_path = cp.get('paths', '/').replace("**", '')
-
-        if not repos_path:
-            raise Exception('Could not read config !')
-
-        self.repo_path = os.path.join(repos_path, repo_name)
-
-        try:
-            r = hg.repository(ui.ui(), self.repo_path)
-            hg.verify(r)
-            #here we hnow that repo exists it was verified
-            log.info('%s repo is already created', repo_name)
-            raise Exception('Repo exists')
-        except RepoError:
-            log.info('%s repo is free for creation', repo_name)
-            #it means that there is no valid repo there...
-            return True
-
 
     def _create_repo(self, repo_name):
         if repo_name in [None, '', 'add']:
             raise Exception('undefined repo_name of repo')
 
-        if self._check_repo(repo_name):
+        if check_repo(repo_name, g.base_path):
             log.info('creating repo %s in %s', repo_name, self.repo_path)
             cmd = """mkdir %s && hg init %s""" \
                     % (self.repo_path, self.repo_path)
diff --git a/pylons_app/controllers/error.py b/pylons_app/controllers/error.py
--- a/pylons_app/controllers/error.py
+++ b/pylons_app/controllers/error.py
@@ -1,13 +1,13 @@
 import logging
-from paste.urlparser import PkgResourcesParser
+import cgi
+import os
 import paste.fileapp
 from pylons import tmpl_context as c, app_globals as g, request, config
 from pylons.controllers.util import forward
 from pylons.i18n.translation import _
 from pylons_app.lib.base import BaseController, render
-from pylons.middleware  import error_document_template, media_path
-import cgi
-import os
+from pylons.middleware import  media_path
+from pylons_app.lib.utils import check_repo
 
 log = logging.getLogger(__name__)
 class ErrorController(BaseController):
@@ -25,7 +25,7 @@ class ErrorController(BaseController):
         c.repos_prefix = config['repos_name']
         
         c.repo_name = request.environ['pylons.original_request']\
-            .environ.get('PATH_INFO').split('/')[-1]
+            .environ.get('PATH_INFO').split('/')[1]
         
     def document(self):
         resp = request.environ.get('pylons.original_response')
@@ -36,9 +36,11 @@ class ErrorController(BaseController):
                                                 'protocol': e.get('wsgi.url_scheme'),
                                                 'host':e.get('HTTP_HOST'),
                                                 }
-                
+
+                        
         if resp.status_int == 404:
-            return render('/errors/error_404.html')
+            if check_repo(c.repo_name, g.base_path):
+                return render('/errors/error_404.html')
                 
         c.error_message = cgi.escape(request.GET.get('code', str(resp.status)))
         c.error_explanation = self.get_error_explanation(resp.status_int)
diff --git a/pylons_app/lib/utils.py b/pylons_app/lib/utils.py
--- a/pylons_app/lib/utils.py
+++ b/pylons_app/lib/utils.py
@@ -1,7 +1,10 @@
-from mercurial import ui, config
 import os
 import logging
-   
+from mercurial import ui, config, hg
+from mercurial.error import RepoError
+log = logging.getLogger(__name__)
+
+
 def get_repo_slug(request):
     path_info = request.environ.get('PATH_INFO')
     uri_lst = path_info.split('/')   
@@ -26,7 +29,23 @@ def check_repo_dir(paths):
         repos_path[0] = '/'
     if not os.path.isdir(os.path.join(*repos_path)):
         raise Exception('Not a valid repository in %s' % paths[0][1])
-        
+
+def check_repo(repo_name, base_path):
+
+    repo_path = os.path.join(base_path, repo_name)
+
+    try:
+        r = hg.repository(ui.ui(), repo_path)
+        hg.verify(r)
+        #here we hnow that repo exists it was verified
+        log.info('%s repo is already created', repo_name)
+        return False
+        #raise Exception('Repo exists')
+    except RepoError:
+        log.info('%s repo is free for creation', repo_name)
+        #it means that there is no valid repo there...
+        return True
+                
 def make_ui(path='hgwebdir.config', checkpaths=True):        
     """
     A funcion that will read python rc files and make an ui from read options
@@ -34,7 +53,7 @@ def make_ui(path='hgwebdir.config', chec
     @param path: path to mercurial config file
     """
     if not os.path.isfile(path):
-        logging.error('Unable to read config file %s' % path)
+        log.error('Unable to read config file %s' % path)
         return False
     #propagated from mercurial documentation
     sections = [