diff --git a/collects/web-server/dispatchers/dispatch-servlets.ss b/collects/web-server/dispatchers/dispatch-servlets.ss
index cf0147436f..a28932d4db 100644
--- a/collects/web-server/dispatchers/dispatch-servlets.ss
+++ b/collects/web-server/dispatchers/dispatch-servlets.ss
@@ -51,10 +51,6 @@
                                           #:responders-servlet (url? any/c . -> . response?))
             dispatcher/c)])
 
-;; default-server-instance-expiration-handler : (request -> response)
-(define (default-servlet-instance-expiration-handler req)
-  (next-dispatcher))
-
 (define (make url->servlet
               #:responders-servlet-loading [responders-servlet-loading servlet-loading-responder]
               #:responders-servlet [responders-servlet servlet-error-responder])
@@ -70,15 +66,6 @@
       (define response
         (with-handlers ([exn:fail:filesystem:exists?
                          (lambda (the-exn) (next-dispatcher))]
-                        [exn:fail:servlet-manager:no-instance?
-                         (lambda (the-exn)
-                           ((exn:fail:servlet-manager:no-instance-expiration-handler the-exn) req))]
-                        [exn:fail:servlet-manager:no-continuation?
-                         (lambda (the-exn)
-                           ((exn:fail:servlet-manager:no-continuation-expiration-handler the-exn) req))]
-                        [exn:fail:servlet:instance?
-                         (lambda (the-exn)
-                           (default-servlet-instance-expiration-handler req))]
                         [(lambda (x) #t)
                          (lambda (the-exn) (responders-servlet-loading uri the-exn))])
           (define the-servlet (url->servlet uri))
@@ -87,10 +74,7 @@
                          [current-directory (servlet-directory the-servlet)]
                          [current-namespace (servlet-namespace the-servlet)])
             (with-handlers ([(lambda (x) #t)
-                             (lambda (exn)
-                               (responders-servlet
-                                (request-uri req)
-                                exn))])
+                             (lambda (exn) (responders-servlet uri exn))])
               (call-with-continuation-barrier 
                (lambda ()
                  (call-with-continuation-prompt
diff --git a/collects/web-server/private/servlet.ss b/collects/web-server/private/servlet.ss
index 392d740b75..482f394fff 100644
--- a/collects/web-server/private/servlet.ss
+++ b/collects/web-server/private/servlet.ss
@@ -4,7 +4,6 @@
          web-server/http)
 
 (define servlet-prompt (make-continuation-prompt-tag 'servlet))
-(define-struct (exn:fail:servlet:instance exn:fail) ())
 (define-struct servlet (custodian namespace manager directory handler)
   #:mutable)
 (define-struct execution-context (request))
@@ -18,9 +17,6 @@
 
 (provide/contract
  [servlet-prompt continuation-prompt-tag?]
- [struct (exn:fail:servlet:instance exn:fail)
-         ([message string?]
-          [continuation-marks continuation-mark-set?])]
  [struct servlet 
          ([custodian custodian?]
           [namespace namespace?]
diff --git a/collects/web-server/servlet/setup.ss b/collects/web-server/servlet/setup.ss
index 2cecb0b0d5..b3d85f1451 100644
--- a/collects/web-server/servlet/setup.ss
+++ b/collects/web-server/servlet/setup.ss
@@ -49,19 +49,26 @@
    (lambda (req)
      (define uri (request-uri req))
      
-     (define-values (instance-id handler)
-       (cond
-         [(continuation-url? uri)
-          => (match-lambda
-               [(list instance-id k-id salt)
-                (values instance-id
-                        (custodian-box-value ((manager-continuation-lookup manager) instance-id k-id salt)))])]
-         [else
-          (values ((manager-create-instance manager) (exit-handler))
-                  start)]))
-     
-     (parameterize ([current-servlet-instance-id instance-id])
-       (handler req)))))
+     (with-handlers ([exn:fail:servlet-manager:no-instance?
+                      (lambda (the-exn)
+                        ((exn:fail:servlet-manager:no-instance-expiration-handler the-exn) req))]
+                     [exn:fail:servlet-manager:no-continuation?
+                      (lambda (the-exn)
+                        ((exn:fail:servlet-manager:no-continuation-expiration-handler the-exn) req))])
+       
+       (define-values (instance-id handler)
+         (cond
+           [(continuation-url? uri)
+            => (match-lambda
+                 [(list instance-id k-id salt)
+                  (values instance-id
+                          (custodian-box-value ((manager-continuation-lookup manager) instance-id k-id salt)))])]
+           [else
+            (values ((manager-create-instance manager) (exit-handler))
+                    start)]))
+       
+       (parameterize ([current-servlet-instance-id instance-id])
+         (handler req))))))
 
 (define (make-stateless.servlet directory start)
   (define ses